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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Valuepro who wrote (61894)	10/24/2008 4:45:54 PM
From: benwood	Read Replies (2) \| Respond to of 78409

However, if you default, the lender will have to reduce their overall loan exposure (because of say 12-1 leverage) or get a new asset. That de-levering will reduce the money supply, and so money must be created to offset this downward cycle or else monetary deflation will occur (as has been happening so far). Also, real wealth is destroyed when the stock market declines, e.g. 10% stock trades hands but the value declines 50%. Ditto real estate. No money has changed hands with respect to my home, yet it is worth $100k less today than 18 months ago. Ditto commodities. Real wealth in the world had declined tens of trillions of dollars in the past few weeks. I saw a good chart a week ago or so, I think this number is about 30 trillion if I remember correctly (just stock exchanges).