SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mark Adams who wrote (6059)7/19/2001 10:40:01 PM
From: Ilaine  Read Replies (2) of 74559
 
>>I think this kind of statement rises from the fact that the total pool of stock is valued at the price the last trade took place. So while the last buyer paid $200/share for Ariba to the last seller prior to it's swoon to $5, and that money was not destroyed- the paper wealth of all the other Ariba shareholders appeared to rise and fall. Hence the 'destruction of trillions of dollars of wealth since 3/2000'.<<

My memory is not as good as it should be - I know Don Lloyd and Grace Zaccardi both explained this very well - my recollection is that Grace explained it to me first but my recollection of the circunstances suggests that it should have been Don. Maybe they remember.

But you're right, and they're right, and the people who talk about the trillions of wealth destroyed are wrong. I mentioned it for two reasons:

Trivial reason, I was surprised to see Richebacher say it, because I think he's pretty sharp.

Major reason, I am starting to think that this concept has not passed into common knowledge, so we are dealing with a concept that needs to be explained so we can pass it on. But I am not sure of that so want feedback. Does this idea have a name?

~~~~~~~~~~~~~~~~~~~

Does illiquid wealth make you feel and act like you're rich with liquid wealth? Depends on how good you are at objective thinking. Some very advanced individuals probably are able to rise above it, but I guess most can't.

Nevertheless, the question is, when the market crashed, was wealth destroyed?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News