Where does all money and wealth go in the recession?
In: 6245
Things change in value without any moving hands or going anywhere. For example, house may be worth 1.1 million during a boom, then drop to 600k during a recession even though it was never sold. The market changed and it dropped in value. Same with stock. I have owned stock that dropped 50% and then came back up to its original value. I never sold it, it just changed value. Most wealth is this type of wealth – on paper only with the value of it based on what someone will buy it for.
Latest Answers