The Magical Stock Market
The total value of all the New York Exchange stocks was $26 trillion,
and just in the last few months the market has dropped $9 trillion
dollars. But, that's just an imaginary paper value.
The stock market is like a well, and if 10,000 gallons of water went
in, then all that is coming out is 10,000 gallons. The trick is the stock
market is a Zio-Ponzi scheme, and all stocks are always revalued off the
last share sale price. So if 999 shares sold at a $1, but the next
share sold at $10,000, then Goldman says all the shares are worth $10,000
each, or ten million. But, all that went in is $1,999, and that's all that
is coming out.
Did The Money Vanish
Once the run for the exits starts then prices collapse. Washington
Mutual was worth $85 billion on Monday, and the next week it as $200
million. Everyone will say "The money is gone", but if you think in terms
of gold coins, those coins didn't vanish, they are in someone else's
pockets.
Out of the stock exchange's $26 trillion, maybe there is $5 trillion in
real cash. These carnival carpetbaggers will skin the hicks, fold up their
tents, and be on the first train out of town.
