You know, I vaguely thought on some level - in my own, amateurish way - that part of current stock market oddity was too much money chasing too few real investments. And then Reddit and Hedge Funds both decided to just self-destructive s***-tons of money on worthless company.
It doesn't have to be zero sum. There's space for real wealth destruction in stock bubbles when the price collapses back down to normal levels.
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I don't follow, do you have a link to an explanation? To me it seems like the underlying wealth is the company itself and that's unchanged.
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The concept illustrated with houses: https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/credit-crisis/v/wealth-destruction-1 … In this case, the underlying asset is Gamestop, rather than houses, and you have margin trading and short-selling acting as the leverage instead of bank loans, but I *think* the principle is the same.
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