It vice versa where’s it coming from when the economy is booming?
When the economy is bad, it feels like there’s not enough money to go around, but when it’s good there’s plenty.
In: Economics
Maybe it helps to think of investment money like stocks and real estate and collectibles as potential energy, (vs the money that people spend and earn from their jobs, which is like kinetic energy).
If there’s a recession and the value of things like real estate drops, that’s just a drop in potential.
It’s much simpler of you replace real estate with a silly trend like Beanie Babies. The Beanie Baby market crash didn’t wipe out any actual money or real products, it just adjusted the potential of what your stuffed animals were worth.
Latest Answers