Where does all money and wealth go in the recession?

Question

Where does all money and wealth go in the recession?

In: 6245

Answer 1

If I have an asset, that someone else is willing to pay a million dollars for. Congratulations. I’m a millionaire, on paper. Even if I don’t sell it.

A recession come, suddenly, people are only willing to pay 100 grand for it. I’ve now lost 90% of my wealth. Even though I own the same asset.