[p2p-research] Fwd: Where does the "lost" money go ? can we find it and get it back ?

[Nicholas Roberts]

-- 
Nicholas Roberts
[im] skype:niccolor



---------- Forwarded message ----------
From: <nicholas at themediasociety.org>
Date: Sat, Jan 3, 2009 at 5:16 PM
Subject: Re: Where does the "lost" money go ? can we find it and get it back
?
To: Dean Baker <dean.baker1 at verizon.net>
Cc: Noam Chomsky <chomsky at mit.edu>


happy new year Dean

who takes it out of circulation ? how ?

is it destroyed ? made null ?

how much of the wealth from a bubble gets accumulated by the rich
promoting the bubble ?

how much gets taken out of circulation ?

is there a good reference to this ? a website or book ? I am
interested in the formal process and also the reality...

thanks in advance

-N

On 1/3/09, Dean Baker <dean.baker1 at verizon.net> wrote:
> Hi Nicholas,
>
> It's just like counterfeit money that has been seized by police. It is
> wealth that is taken out of circulation. It means in principle that the
> people who did not own stock and did not lose wealth can be better off,
> assuming that the demand generated by this stock wealth (people spend in
> part based on the wealth they hold in stocks) is replaced by other
sources.
>
> regards,
>
> dean
>
> Nicholas Roberts wrote:
>> hi Dean
>>
>> this is a really obvious question, but I have yet to find a good answer;
>>
>> where does the money "lost" in the stock and housing bubbles go ?
>>
>>
>> is it destroyed ? how and where ?
>>
>> is it transferred ? how and where ?
>>
>> is it accumulated ? by whom, how, where  ?
>>
>> can we get it back ?
>>
>>
>> are there any good flow diagrams that explain this in plain terms for
>> regular folks...
>>
>>
>>
>>
>>
>
> --
> Dean Baker (baker at cepr.net)
> Co-Director
> Center for Economic and Policy Research 1611 Connecticut Ave., NW
> Washington, DC 20009
> 202-293-5380 (ext 114)
> 202-332-5218 (H)
> www.cepr.net
>
>
>


--
--
Nicholas Roberts
[im] skype:niccolor
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