Sunday, October 12, 2008
Who made all the money in the stock market?
Basically it is money and assets.
Money increases year by year, so does assets of all kinds.
Wealth is equal to what assets is owned at the current worth plus whatever money; the value of assets vary and the quantity of money is constant.
When assets price rise money loses value, yet total wealth is virtually more, the value of assets is greater than the value of money; and vice versa; but the quantity of money is the same.
Thus, those who sold assets at higher prices will gain when the assets value drop, since they can now own more assets, and vice versa.
But all this wealth is really volatile since supply and demand can quickly change its worth. The state of a value of an asset is not what it is when people start to buy or sell that asset.
Ron
Money increases year by year, so does assets of all kinds.
Wealth is equal to what assets is owned at the current worth plus whatever money; the value of assets vary and the quantity of money is constant.
When assets price rise money loses value, yet total wealth is virtually more, the value of assets is greater than the value of money; and vice versa; but the quantity of money is the same.
Thus, those who sold assets at higher prices will gain when the assets value drop, since they can now own more assets, and vice versa.
But all this wealth is really volatile since supply and demand can quickly change its worth. The state of a value of an asset is not what it is when people start to buy or sell that asset.
Ron
# posted by chunmu @ 7:44 PM 
