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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?


To: lin luo who wrote (1712)8/29/1998 12:14:00 AM
From: nihil  Read Replies (1) | Respond to of 2578
 
RE: Money has to go somewhere

When one sells stock which is held on margin, the margin loan (sometimes more than half of the proceeds) disappears. Only by the owner buying more securities on margin can the money be recreated. A river running into the sand disappears. An investor who takes the money left after he is sold out and buries it under the floor of his hut reduces the money supply even further. Stock-market collapses usually destroy huge amounts of money and scare even more underground..



To: lin luo who wrote (1712)8/29/1998 7:54:00 PM
From: AlanH  Read Replies (1) | Respond to of 2578
 
**OT** Lin Lou, re: money and water...

I was born and grew up in Beijing, China. When I was a child there was a small river near my home. Over time and little by little, the river disappeared. I thought we were going run out of water....

The same as money in today's markets... It has to go somewhere...


If scarcity is of interest, then the question becomes: "from where does [money] come?"