OK, Joe, but you've fallen into my trap. <g>
If you are right, and I am not saying that you are wrong, then the recent crash (or correction) did not "destroy" any "actual" wealth, as you define it, just changed the "perceived" valuation of wealth. The news quote you posted to me stated that as a result of the recent decline in the market, trillions of wealth were "destroyed." Now you tell me, nothing was lost, because it was all paper gains. Either the article was wrong, or you're wrong, right?
Buy the way, if I bought Lucent at 95 (and I did, oh rue the day!) and I want to sell it now, and can only sell it at 70, it sure feels like $25 a share was "destroyed." But, the guy I bought it from got to keep his $25, so - -
But my original post was about how the upside of deflation is that our cash is rapidly appreciating. I am doing my best to stimulate the economy. Visa security called me this summer, while I was on vacation, to make sure my card wasn't stolen. It wasn't. True story. |
