When market values go down (because of transactions on the margin) - a lot of (virtual) money is destroyed. In the long run, we're all dead. John Maynard Keynes
That's the difference between marginal price and average value. But to properly account for that would require <gasp> using nonlinear functions. We have met the enemy, and he is us — Pogo
What is a cynic? A man who knows the price of everything and the value of nothing. Oscar Wilde, Lady Windermere's Fan, 1892, Act III
Oscar Wilde, Lady Windermere's Fan, 1892, Act III
Wealth is not Money, IMHO, but accumulated "Money's worth".
When prices (not values) go down "Money" is not destroyed in the way it is when bank debts are cancelled or written off. To me evaporation is a better word for this disappearance of potential Money.
As you know, I believe that it is through the widespread "unitisation" or "equitisation" of assets and revenues that an alternative to our present unsustainable "securitisation" lies.
A Debt/Equity swap of cosmic proportions, but not, of course, using the "Corporation" as a vehicle of which Exxon offers such a prime example of toxicity. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
