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To: Ilaine who wrote (27)3/20/2001 1:23:03 PM
From: Don Lloyd  Read Replies (1) of 443
 
CB -

Now I am getting really confused. I asked you if all $6 trillion just changed hands, and you say yes.
Leaving out of the calculation other economic events, and just looking at the transactions on the stock market, if everyone in the country sat down and totalled up his or her assets and liabilities, we're even? Didn't some of the money go to money heaven?

A stock price is not money, and there can be no assurance that it can be turned into money until it actually happens. If all the owners of a given stock want to sell, the question becomes 'Sell to whom?'.

Ignoring commissions etc., a buyer's dollar goes to the seller. Money is neither created nor destroyed by a stock transaction. Nor does the next stock transaction price have any necessary relationship to the last one.

Regards, Don
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