question about money

[fadada1]

can someone please explain to me where, exactly, all the money has gone???

i don't understand how money is just disappearing from the planet earth. when someone takes a loan for a house, there is actual money needed to buy the house, right? when a country takes a loan out to buy something, there is actual money somewhere to fund the purchase, right?

am i wrong to assume that someone on the planet, other than dubai, is making an absoulte killing? we keep hearing about how every country in the world is in huge debt. all that money that was given out to fund these purchases had to come from somewhere... and subsequently had to go somewhere.

so, where is it?

we're $10trillion in debt. who has our $10trillion and why aren't they driving in the latest lamborghini model?????

[StoopTroup]

?

http://noobwarlock.files.wordpress.com/2008/05/daffy-duck-pic-2.jpg

[Frozen Sooner]

can someone please explain to me where, exactly, all the money has gone???

i don't understand how money is just disappearing from the planet earth. when someone takes a loan for a house, there is actual money needed to buy the house, right? when a country takes a loan out to buy something, there is actual money somewhere to fund the purchase, right?

No, there is not. Strange, but true.


am i wrong to assume that someone on the planet, other than dubai, is making an absoulte killing? we keep hearing about how every country in the world is in huge debt. all that money that was given out to fund these purchases had to come from somewhere... and subsequently had to go somewhere.

so, where is it?

we're $10trillion in debt. who has our $10trillion and why aren't they driving in the latest lamborghini model?????

It's in China. It only works out to 10k per person.

[Viking Kitten]

Remember when Beanie Babies were all the rage back in '97 or so? People were paying HUNDREDS of dollars for a small stuffed animal that cost pennies to make, because the Beanie Babies were PERCEIVED to have value. People wanted more than Ty, the company that makes them, producing. Then when Ty realized the demand was greater than the supply they had produced, they began making more to fill the demand. Suddenly their value was diminished.

So all those people who had two hundred dollars for a little purple teddy bear named in honor of Princess Diana suddenly realized they had a stuffed animal worth about $5.99, the suggested retail price for Beanie Babies. That $194.01 that they overpaid just evaporated.

So right now, there are just more houses than there are people willing or able to buy them. Their value is diminished, and banks who bought those loans are just like those suburban ladies with a closet full of Beanie Babies.

[soonerbrat]

i am that suburban lady with a closet full of beanie babies. my daughter and i used to collect them.

[soonerbrat]

maybe "lady" isn't exactly the right word for me.

[Frozen Sooner]

Sorta. Where the analogy fails is that a house has an intrinsic value as shelter and as real property.

[Frozen Sooner]

brat isn't "sorta" not a lady. Brat's a lady.

[StoopTroup]

Remember when Boone Picker invested a bunch of money in a stadium in stoolwater and how if you build it...they will come...

That will be put to the true test this weekend...

IF those aggies beat Missouri...will it be packed for Baylor?

When they lose...will it be 1/2 empty as always...heck...even IF they do beat Missouri...will it be 1/2 empty?

Anyway...he used to have some money he could have done something good with like bring the beanie babies back.

I hope that helps fadada...

[OUDoc]

maybe "lady" isn't exactly the right word for me.

:hot:

Unless you mean "man", in which case :gary:

[Viking Kitten]

Sorta. Where the analogy fails is that a house has an intrinsic value as shelter and as real property.


Oh no, I get that... I'm just trying to explain where the money "went."

And Brat, I had a couple Beanie Babies myself. Unfortunately, Rosabelle the Chihuahua discovered the cache and is currently using them for chew toys. On the bright side, I never paid more than $5.99 for one.

[OUDoc]

I've got a box of Beanies somewhere in my garage that my mom gave me to give to kids in the clinic.
I never brought them here.

eBay, here I come.

[SoonerInKCMO]

brat isn't "sorta" not a lady. Brat's a lady.

Have you met Brat? :confused:



;)

[soonerbrat]

well if she needs more chew toys, I have about 150 of those bad babies that I have absolutely no idea what to do with. I can't seem to throw them in the trash

[Frozen Sooner]

No.

Money multiplier effects have been present in the world economy since the 1500s or so.

[soonervegas]

"can someone please explain to me where, exactly, all the money has gone???"

I am no expert on the subject, but my money is on: down the toilet

[fadada1]

i think referencing beanie babies has made this harder to understand.

[OUDoc]

So, if the economy weighs more than a duck...

[Frozen Sooner]

...it turned me into a newt, it did.

[sooner_born_1960]

But you got better.

[tommieharris91]

can someone please explain to me where, exactly, all the money has gone???

i don't understand how money is just disappearing from the planet earth. when someone takes a loan for a house, there is actual money needed to buy the house, right? when a country takes a loan out to buy something, there is actual money somewhere to fund the purchase, right?

am i wrong to assume that someone on the planet, other than dubai, is making an absoulte killing? we keep hearing about how every country in the world is in huge debt. all that money that was given out to fund these purchases had to come from somewhere... and subsequently had to go somewhere.

so, where is it?

we're $10trillion in debt. who has our $10trillion and why aren't they driving in the latest lamborghini model?????

Taken from Wikipedia (deflation (http://en.wikipedia.org/wiki/Deflation#Deflation_in_the_United_States)):


The deflation of the Great Depression, as in 1836, did not begin because of any sudden rise or surplus in output. It occurred because there was an enormous contraction of credit (money), bankruptcies creating an environment where cash was in frantic demand, and the Federal Reserve did not adequately accommodate that demand, so banks toppled one-by-one (because they were unable to meet the sudden demand for cash— see Fractional-reserve banking). From the standpoint of the Fisher equation (which is interest rate - inflation rate = real interest rate), there was a concomitant drop both in money supply (credit) and the velocity of money which was so profound that price deflation took hold despite the increases in money supply spurred by the Federal Reserve.

Sound familiar?