Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Pastimes : Where to hide your money as the world banking system collaps -- Ignore unavailable to you. Want to Upgrade?

To: David W. Taylor who wrote (36)	2/2/2001 4:46:16 PM
From: Michael H	Read Replies (2) \| Respond to of 41

Say you bought some MSFT at $100 and the market has caused it to decline so that the last sale of MSFT was $60. Those $40 have vanished like so much smoke. Nope, you lost possession of your Dollars when you bought the stock. You did not have any money right after the purchase - the seller now has $100. You are now in possession of owner certificates for a company, stating you are in possession of 1/100,000,000 of MSFT, which in theory, could be sold for $100. Later you are in possession of the same share of the company, just that the value has declined. If you sell it back, the original seller has $40 and a MSFT share, and you have $60. There are still $100 and one MSFT share in our economy, just differently distributed. If you bought a house for $100,000, you would say: "I own a house", not "I own 100,000 in houses". The seller of the would now own your $100,000, while you would own the house. The total money supply in an economy is only changed by the central bank (The Fed in the US), it is not influenced by asset prices. Michael