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.

Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (15491)	12/11/2002 10:24:08 AM
From: t2	Read Replies (1) \| Respond to of 19219

What happened to all the wealth created in the profits from the Short side? You cant have it both ways steve. The bright bears are now the winners. The problem with that logic is that wealth is not created by shorts having gains because most of the population has money in long funds. Hardly any money is going to be made on the downside if one looks at the big picture. So very few make money while the vast majority is losing when the market declines. Opposite of what happened in the 1990s...when the whole population was getting rich. jmho

To: dvdw© who wrote (15491)	12/11/2002 12:57:05 PM
From: Steve Lee	Respond to of 19219

"What happened to all the wealth created in the profits from the Short side?" You don't seem to have a very good understanding of how the markets work. When a short sale is made, an extra share is created out of thin air and sold to some long punter. Any profit the shortseller books is substracted from the net worth of the long holder that bought from the short seller when the short sale was made. The total profit/loss of the entire population is not affected in any way by short selling, apart from commission to the broker. Your arguments about zero sum are wild! The success or failure of an economy depends on sensible investments and purchases. If people go mad on stocks during a bubble and actually change their plans for future spending and employment based on temporary gains they thought were permanent, and make commitments based on that assumption, then the inevitable crash is going to cause pain.