That's the only thing that makes sense.
So Andy ponied up $60 billion, and pulled out $109 billion, while Bob paid in $55 billion, and pulled out $6 billion.
The point is, finance is a zero sum game, so the uproar that "$49 billion disappeared" is not really so...
That's the only thing that makes sense.
So Andy ponied up $60 billion, and pulled out $109 billion, while Bob paid in $55 billion, and pulled out $6 billion.
The point is, finance is a zero sum game, so the uproar that "$49 billion disappeared" is not really so...
-------------------------------------------------------------------------------- Well, yea but if you put $100k in a fake fund and it pays you 10% a year the money really is gone in 10 years.
What money as gone?
Most of the sellers were simple the constructors. They borrowed that money to build the houses to start with. But some were caught in the middle of the crisis, and now they cannot sell those new properties, or even to finish those not yet sold. The banks cannot give more money to finished the houses unless they are already sold to someone with a mortgage. Leopoldo
Most of the sellers were simple the constructors.
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The people who made the money were the sellers of the overpriced land.
tim
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Plenty of the constructors made plenty of money too.
Same with the commissions on the loans too.
Finance is not a zero sum game if it is used to direct resources towards productive areas. Of course with Madoff it's a negative sum game because the money he spends hiding what he does subtracts from the return he actually gets. Not to mention investing with him diverts funds from people who know what they're doing.
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ok, the question is, where hid they the money? If they put it in the banks, well they must wait a while for the banks lend most of it to other people with trash mortgages. That is why I think the government should expend money to devalue all the scoundrel money that caused this crisis. Leopoldo
Now, were is the AIG money going, same place?
True, in the macro sense. But if we play 'follow the dollars' - the subject of this thread - it is zero sum; people gave Madoff X billions, where did it go? He didn't burn Fed. Reserve Notes in the fireplace, did he?
It''s nice to meet someone who understands the role of finance in a market economy.
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