Where did the money actually go? Are these small startups or individuals that have gone bankrupt that totalled this amount ?
In: Economics
It wasnt there to begin with! The “market” is nothing more then an emotional manifestation of what people think something is worth, wrapped in a massive gambling engine (day trading, options).
So ELI5… You have a widget that you and 3 of your biddies put in $25 (total value is $100). Now say one of your friends decides to sell his portion to his friend for $30. The value of this widget just went to $120 (30×4) just because that friend was willing to buy that 25% share for $30. Now say you sold your share for $20 to your neighbor… now the value of that item is $80 ($40 loss in value). Now in reality there are hundreds of millions of shares per companies and thousands of buy/sell transactions a day. So 1 bad day of trading can “loose” $2.9 trillion.
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