/biz/ - Business & Finance

[Anonymous No.18468851]

Hey guys serious question here. Where does all the money go in a recession? Like all these billions lost is just losing it to someone else. So it's not really lost, right?

[Anonymous No.18468859]

>>18468851
nothing is lost

[Anonymous No.18468870]

Money is just make believe

[Anonymous No.18468887]

>>18468851
>So it's not really lost, right?
In a recession they throw money into ovens and burn it, so yeah it's lost forever sadly.

[Anonymous No.18468897]

>>18468851
Most of the currency is literally imaginary numbers on computers. There's only a few trillion actual physical cash in circulation.

[Anonymous No.18468904]

it;s complicated

[Anonymous No.18468925]

>>18468851
>Where does all the money go in a recession?
what makes bitcoin worth $1000 vs $10,000? It's just what people are willing to pay for it. The "money" is an illusion. When a recession happens the illusion is broken

[Anonymous No.18468961]

>>18468851
Much of it never existed in the first place. Say there's a 100,000 shares of a company valued at $1 a share. So the company is worth 100k. Then, two people trade one share for $2. Now the market price of these shares is $2 and the company is worth 200k. Well $200,000 wasn't transacted nor was it created. At best someone would be willing to buy the company with 200k they already have or maybe more. If the shares go to 1 cent then same situation.

[Anonymous No.18468969]

>>18468851
Trades can have winners and losers in the short term. But a stock can lose value with no trades going through. So yeah you can lose value, billions can be lost without clear winners.

[Anonymous No.18469052]

>>18468851

Wealth comes from priduction of goods primarily and services second. What this means is during a recession or depression we are not able to produce as much goods or services or there is less demand thus we become less wealthy.

[Anonymous No.18469130]

>>18468851
The money doesn't go, the value decreases. Money is as abstract as mathematics.

[Anonymous No.18469273]

I still don't quite understand but thanks for the non meme answers

[Anonymous No.18469308]

It never existed in the first place. It's AAPL has a market cap of a trillion dollars that is in fact its price not its value.

[Anonymous No.18469316]

>>18468851
Supply and demand.
Economics.
Understand how transactional markets work.

[Anonymous No.18469363]

>>18468851

Most money is theoretical paper wealth. For example if a boomer has a house worth 750k and a stock portfolio worth 250k, their net worth would be 1 million dollars. If there's a recession and the market price of the house drops to 500k and the stock portfolio is worth only 150k, then their net worth is only 650k down from a million, even though they never sold or bought anything at all

[Anonymous No.18469790]

>>18468851
the billions aren't lost they just go from the liquidated to the liquidators (from people who bought things on too much leverage to those providing the leverage), funny thing is the liquidators have the power to make people insolvent by making them unemployed or otherwise making them undercollaterlized against the things they bought which they couldn't actually afford (pandemics, market dumping against thinly traded books, etc.)

[Anonymous No.18470498]

>>18468851
it's the concept of "value", anon, which is totally made up

[Anonymous No.18470500]

>>18469363
this

[Anonymous No.18470663]

>>18468851
There's alot of ways the money is some what lost but not to Jewish bankers. It's lost in the sense regular people get fucked over but banks get away with it. Here's just one example in the housing market. Gov prints money and injects it into making housing loans have low interest rates. Or basically literally dumping money into the banks hands and saying hey take this and lower interest rates so Americans buy more homes. Feds then also change restrictions on how much cash a bank has to hold to lend out a certain amount. So now banks have more desirable loans for consumers AND they don't have to own any extra money to give these loans out. Realize if you are a multi billion dollar bank the difference between having to have 10% in cash reserves vs 8% is a huge amount of loans you can now give out. Normal mfs buy that shit up. So gov and feds are propping up the economy and housing market just so ol Jew boi at the bank is making profits even though they shouldn't be and they really shouldn't get that type of gov and federal aid. Normal mfs take these loans because they are low interest and look like a good deal after all these banks are federally insured. Problem is the feds and gov make it such that these now high risk loans are not federally backed after a certain date so when shit hits the fan is Jan 2021 is the current date none of these loans are federally backed anymore. This means any small business owner or home owner who took these loans are now fucked their rates are going to skyrocket and they are going to claim bankruptcy. Banks then eat up all their assets when they do so. In my opinion this shit should be illegal but it isn't it's literally a scam by the gov feds and banks to eat up what little assets and wealth Americans have who take these loans. So technically those millions of dollars in loans that the gov subsidized was lost. However that wasn't ever the point from the beginning it was a way for the gov and banks to pray

[Anonymous No.18470672]

>>18468870
i told my wife about what this guy and she said “that person is evil” and i chuckled a little

[Anonymous No.18470674]

>>18470663
On the weak and basically force their hand into bankruptcy so they can claim their assets and fuck over the people. People shouldn't take these loans and are stupid to do so but niggers gonna nig ig