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To: Snowshoe who wrote (55300)11/1/2004 6:10:01 AM
From: Elroy Jetson  Read Replies (1) | Respond to of 74559
 
The bottom line is simple - capital lost during a de-leveraging comes from the pocket of the saver.

To be more accurate, the saver lost the capital when it was lent and spent. The de-leveraging merely forces a realization of that previous loss.

Even Pirates on the look-out for some good loot, find a portion of the value of their loot vanishes when a government creates money to make good on bank losses.

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