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 : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kailash who wrote (48397)12/29/2005 9:17:08 PM
From: mishedlo  Read Replies (3) of 110194
 
I do not believe money moves out of homes into the market or anywhere else.

For example. Consider a neighborhood of 200 homes.
People bought them for 200,000 they rose to 300,000 over 5 years.

A few people cash out. Then the economy gets hit hard and a few people have to sell. Lets's say 4 people in that neighborhood have to sell. They sell for 220,000. Poof! every house in the neighborhood was repriced to 220,000. the money vanished. It went nowhere and certainly not into stocks. A few lucky people cashed out at the top, but more than likely they bought another place somewhere else with most of the money.

If Google drops $100 tomorrow at the open, did the money leave or was it just destroyed? Did it ever really exist in the first place?

Mish
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News