Cash evaporation

If you have $100 worth of... lets say pokemon cards. You have a charizard card, good for you, it's worth $100.

But here's the deal, you have 1 charizard card, you DON'T have $100. Until you sell the card, you don't have the cash. Now lets say the value of the card goes down, nobody likes pokemon cards anymore and nobody will pay $100 for your charizard card. Now they'll only pay $10 for it. YOU STILL HAVE 1 CHARIZARD CARD, but now it's only worth $10. The $90 didn't "go" anywhere, it never existed.

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>when banks collapse
They wont touch your checkings or savings. Someone correct me if I'm wrong.
>the stock market crashes
If you have stocks, it will be bad. But if this is happening there will be mass panic if the
>economy tanks
If this happens, 1st priorities are food price and 1, 5, 1, 20, 50-year etc. expected inflation rates.

>Do they delete numbers on a computer
Yes.

This

That's too simplified.
The money did exist.
What is MARKET CAP??

Not this idiot what is market cap?

>They wont touch your checkings or savings. Someone correct me if I'm wrong.
Wrong.

I appreciate your insights. I just want to understand.

Do they garnish it or what? I thought there was just a daily withdrawl limit.

Market cap is just what people think something is worth. Unless you actually sell it off, you don't have that money. And once it's deemed worthless, it is worthless. It's not complicated.

>Market cap is just what people think something is worth.
Nope.
Let's take one thing at a time.
The Equities market -stocks.
Every stock has a market cap, this is the total amount of money invested in that stock.
That's why it's called an equity and not a derivative; it has tangible value.

No, the money literally DID NOT exist, that was the whole point.

I literally just explained the concept of market cap. Just because you have $100 million worth of stock, doesn't mean you have $100 million. It means you have a quantity of stock that you could THEORETICALLY sell for that much, IF you could sell it all at the market price, WHICH by definition you cannot as you'll quickly run out of liquidity in the market and prices will go down.

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It goes into the pockets of people selling the stocks. The ones that didn't sell then don't have the money to pay their debts and it becomes property (ie. they take assets in bankruptcy.)

tl;dr it retreats into floating-value real assets.

>garnish it or what?
sorry are you talking about salads?

Valuations collapse and the money goes to Money Heaven.

When debtors default on their loans and bonds, the loans and bonds (which are assets to their owners) have to be written down in the case of loans or face massive selling pressure in the case of bonds.

Market caps for stocks are based on the last price paid (or highest bid) times the number of shares outstanding. If the price gets whacked, the valuation of the company drops by the decline times shares outstanding. The short sellers benefit but existing stockholders take a hit.

It doesn't disappear it just loses its relative value.

>No, the money literally DID NOT exist, that was the whole point.

YES IT DID.
> Just because you have $100 million worth of stock, doesn't mean you have $100 millio
YES IT MEANS THERES 100MIL INVESTED IN THE STOCK....

What happens to the monies

what monies?
There's about 16 different types of 'money'.
Are you talking about money in a personal banking account?

Wealth never disappears.

Currency only becomes less valuable, or wealth more centralized.

Take for example, stock market collapse. All that wealth doesnt just poof. It gets put into the hands of people who invested in real commodities that people need. A gallon of gas or orange juice will never lose it's value, but a share of Apple definitely will.

Same thing with hyperinflation (economic collapse). The value of paper crashes, so wealth gets transfered to those who hold real assets.

I wonder if we could get a Jew to say definitively what happens to the money.

>A gallon of gas or orange juice will never lose it's value,
What? You might want to check with commodity traders on that one.
Every asset is susceptible to price action.

>Every stock has a market cap, this is the total amount of money invested in that stock.
This line is incorrect. That's not how stock investing works.

Lets go back to charizard cards. Let's say they have a price of $100 per charizard card. And let's say there's 1000 cards in existence, so the "market cap" of charizard cards is $100,000. Are you following? We're about to get into liquidity and trading.

Now lets say that of the 1000 charizard cards, 950 of them are owned by collectors who will never ever sell them, so they're off the market. Now there's only a liquidity of 50 charizard cards, and they're owned by only 5 people, each of whom has 10 charizard cards. One person will sell his for $100. Another guy is more enterprising and will only sell his for $200. And the last three will only sell their cards for $300 each.

Now some dumb merchant comes into town with his horse and cart escorting a nun. The nun fucking loves charizard cards and wants to buy ten of them. She goes to the market and spends $1000 to buy 10 charizard cards at $100 each. Now the only charizard cards on the market are 10 cards at $200 and 30 cards at $300, so the market price is $200. With a market price of $200, the market cap for all 1000 cards is now $200,000. That's how market cap works. It has nothing to do with how much people spent on charizard cards in the past, only how much you can buy or sell a charizard card for right now.

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Depends on how you define “Financial Emergency.”

If it’s civic emergency—an invasion, rioting or some sort of systemic breakdown or computer network malfunction—the Government or Regulators could order the banks to close temporarily (a “bank holiday”) to prevent destabilizing panic withdrawals (a “run on the bank”).

Roosevelt ordered these measures at various points in the Great Depression.

If it’s an emergency of the banks own making—such as the bank failures in 2008 or the earlier Savings and Loan crises—that’s a different matter. It’s not so much that the bank seizes your money as it is the banks failure to put your money back into your account.

As you may know, the money in your account isn’t actually sitting in their vault gathering dust. It’s invested or lent out as business loans, mortgages and car notes. So when a bank fails, it’s usually because they made too many bad loans or investments. Consequently, they don’t have enough cash coming in to satisfy depositors need to pull money out.

This is where the FDIC insurance comes in. As a general rule, the FDIC doesn’t immediately reach into their own vault in order to repay depositors. Usually, their first step is to shut down the bank and force them to start selling their assets (loans and bonds, mostly)—for pennies on the dollar, sometimes—to other banks in exchange for cash. The FDIC then uses that cash to reimburse depositors.

If it’s your personal financial emergency, then yes, they can seize your money. To be more precise, they can take back your money if it was inadvertently or fraudulently credited to your account. They can seize it pursuant to the order of a court, as they do in the case of ill-gotten gains. Or they can quite literally arrest your money, if they have reason to believe that you are intending to launder it.

>Every stock has a market cap, this is the total amount of money invested in that stock.
>That's why it's called an equity and not a derivative; it has tangible value.
Holy fuck, no! The market cap is the price the stock was traded at last, multiplied by the number of stocks in the market. That does not mean all were bought at that price, and not that they can be liquidated at that price.

>Buy the world's supply of say 100 charizard cards for $1 each.
>Sell one card for $100 to the only weeb in the world
>Market cap just went from $100 to $10k
>implying anyone else would buy a charizard card for $100 than the weeb sucker.
>sell them off for $0.01ea
>Muh value destruction!

it is not the amount invested. not at all. it simply refers to the total number of outstanding shares * current market price. that is all. is correct. Bid and Ask prices control the market price. period. the money was never there in the first place until you cash out.

Nope, see

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Jesus! How old are you? 17?

When people are talking about "Jews stealing it" they're probably referencing the central bank aka the Federal Reserve and its money printing. The government bailing out (((Wall Street))) etc

And no, they don't burn it!? What do you think they are? The Joker from Batman?!

Okay, as you sound rather clueless I will suggest you start by watching this video by Ray Dalio. He is the CEO of own of the larges hedgefund and the video with the animations explain some of the basic things quite well:

youtu.be/PHe0bXAIuk0

After you've watched it, you should watch documentaries about the 2008 financial crash. Or come back and ask more questions / ask for directions / explanations etc

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Yes it actually does evaporate because the stock market is bullshit. If there is a huge sell off then yes that money literally evaporated. In which case you buy low and make money out of thin air. Kinda like reverse osmosis

Thanks

Checkins and savings.

I admitted in my first post that I am a brainlet. I am not a smart man and my parents were uneducated. I am just trying to learn something here. Okay friend?

RARE FLAG. Met a Cypriot girl once when I was studying abroad college. Could've easily married her and had oodles of babies, alas, I was young and stupid, she slipped through my fingers.

Paper speculation is not the same.

"Gold futures" is not the same as gold.
Having millions in oil futures is not having millions of barrels of oil sitting around.

I cant eat or burn a future. So it loses it's value, but those that have the real thing reap the benefits.

The money doesn't go anywhere because it never existed in the first place.

Let's say you have a million dollars. It's easy to figure out your net worth, which is one million dollars.

Now let's say that you have 1 million dollars worth of stock or a 1 million dollar house. And you're like "my net worth is 1 million dollars". That's the price that you assume people will pay you when you go to sell it based on what people are paying for similar stocks and houses.

So then one day you look at your stock portfolio and it says half a million dollars. Or you get an appraisal on your house and the guy is like "sorry niggers moved in next door it's worth half a million now" So now your net worth is half a million, and you just "lost" half a million dollars.

But you didn't lose it, they money didn't go anywhere, it never existed to begin with. You still have the stock you bought. If you're happy with the returns it generates you can keep it. If you're happy with the house you don't have to sell it.

When banks collapse is a whole different story.

no. you need to learn what liquidity means.

This show taught me economics

Most money only exists as entries in a ledger. It doesn't "go" anywhere, it just gets deleted, because money is essentially fictional in a credit based economy.

You're point is needlessly convoluted with Pokemon cards.
Are you trying to say the price of an underlying asset is only concerned with the actions of speculators?

>That does not mean all were bought at that price, and not that they can be liquidated at that price.
I never said that.
What moron would make that argument.

i guess they use it to buy cheap assets like houses

Not really economics, it taught you trading. They're different tings, as Fat Tony would say. But yeah it's an excellent show and the books are pretty decent, too.

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so if i have $350 right now, would it be smarter for me to spend it on
>1000 rds of 5.56Nato
>Silver bullion
>Spam and Veg-all
>Tech Stocks

>Bid and Ask prices control the market price. period.

>the money was never there in the first place until you cash out.
So a company is stock is worth nothing until people close sell their positions? That's the argument you're making.

This.

Look past the shilling and it's good info.

>>That does not mean all were bought at that price, and not that they can be liquidated at that price.
>What moron would make that argument.
>"Every stock has a market cap, this is the total amount of money invested in that stock."

JP Morgan, one of the world's greatest financiers, famously said that "Only Gold and Silver is Money, everything else is Credit", and he's right. If you look at the definition of money, only Gold and Silver fit historically.

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it was good about depicting the political factors that work behind the scenes in a larger economy.

$350 is chump change, my dude. It depends on your financial situation and what you're trying to do with it.

If you have unsecured debt you should pay it off.

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The exchange value of the dollar is largely a function of the vitality of the economy at large.
They can literally steal your savings via inflation, but it's hardly plausible that they steal enough to make more than an annoyance of a dent in the economy.

market cap is the price of a stock x shares outstanding, it doesnt actually exist until all shares are sold...which when that happens the price goes down immensely

correct it's only worth what people are willing to pay at any given time and even then there is no guarantee that you can cash out due to bids literally disappearing meaning people aren't interested in buying your stock anymore and put in a bid of .0001

bid - the highest someone is willing pay
ask - the lowest someone is willing to sell

that is all that matters. liq

here's another way to explain it.... this came from my economics teacher in high school long time ago:

once, there were two islands. the people all lived on one island, and the other island was deserted. for a long, long time, the story went among the people that there was a huge pile of gold on the other, deserted island. and the people had eventually built up an economy amongst themselves, buying and selling and trading while using portions of that gold "over there" as the foundation for the value of their transactions. and all was well. some prospered, some didn't, but overall it was a healthy, strong economy.

then one day, one of the islanders decides to venture over to the other island, because he wanted to see all of that gold for himself. he went there, explored the island, then came back, and announced to all the people, "Hey, guess what! There's no gold on that island!"

the next day all the people went broke.

economics is faith.

*liquidity is what drives prices.

>>"Every stock has a market cap, this is the total amount of money invested in that stock."
If you have 100 shares at $100 dollars each then the market cap is $10,000 at that time in the market.

I implore you to reconsider, as the show's local scope (markets limited to one town or region) is not economics, but trading. Mr. Nicholas N Taleb makes this point in his books Antifragile and Skin in the Game.

But you are also correct, in that there is a LOT of politics going on behind the scenes in market trading. Who you know matters as much or more than what you know about what you're trading. If you can find a sucker willing to buy your furs, it makes sense to go all in on apples.

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>They can literally steal your savings via inflation
Only if your savings is entirely cash, which it shouldn't be. You'll want a mix of some petty cash, gold, silver, and extremely stable bonds like US Treasury bonds.

That's not economics, that's fractional reserve banking. Although economics is basically voodoo with math so I suppose it doesn't really matter.

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no. if 100 shares exist of a stock and they are worth $100 then the market cap is $10,000. doesn't mean you can sell them for that silly.

digits
true
Politics can steer the economy via the crafting of taxes, incentives and interest rates. Right now a high capital gainz is whats keeping alot of people from selling, but conversely those same people are incentivized with lower taxes if drawn out as a retirement plan.

You are not even following the argument other posters and I make. Read the whole thread again.

youtube.com/watch?v=5hfEBupAeo4

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Most people's savings are in cash.
All my savings for crypto so I can not unwillingly fund mass slaughter and suffering when I transact.

Through the miracle of fractional reserve banking. The money does indeed collapse because debt is a form of money. Bank receives a deposit of $100. Keeps only $10 in reserve per regulations. Loans out $90 to entrepreneur for new business. Shows $100 deposit by depositor that is earning 2% interest.

Bank collapses in crisis. Entrepreneur loses his entire loan amount in business failure. Depositor loses his entire deposit to bank.

Supposedly protected by FDIC but banking crisis is systematic and a worldwide recession. Mass panic. Not enough bailout money to go around. Government can't bailout all depositors through FDIC.

Money is destroyed. Massive amounts of it.

That's not money. That's just paper. The Jews already stole our money in the 60's.

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IIRC the FDIC has 99 years to pay out it's money to depositors.

I think if you examine the situation more closely, you'll find that frighteningly few people actually keep money under their mattresses, in books, safes etc.

Most of it is just a float value.

Most people don't have savings at all. And crypto is a poor choice for savings because it's too volatile for long term holding. It can't function as a store of value.

For the record I have several bitcoin that I'm holding a as a mid to long term speculation. I plan to sell some of it once it hits 10X what I paid for it.

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It's not relevant when money isn't backed by anything and most of it is just a digital signature.

You're thinking anachronistically if you're suggesting mass withdrawl of savings would a) happen or b) if it did happen would matter, since people's can't coordinate their faithlessness when they get their digital signatures and have no actual thing that that signature is backed by.

economics is faith because a thing only has value if everyone else agrees that it has value.

i watched a stupid comedy show on tv one day where everyone in the world had died in an apocalypse except for six people on an island somewhere. they found a cache of those plastic twisty bread ties and decided to use those as money. one girl eventually became super rich because she held all the bread ties and treated all the others like her lowly slaves.

it's autumn here in the northern hemisphere. if dead leaves were money, then many of us could live quite comfortably. although people with large tracts of land and many deciduous trees would be fantastically rich, while apartment dwellers would be the have-nots.

It's a float value in a savings account in a bank - it is still their savings. That it's a bad way to save doesn't change that.

It doesn't evaporate, it just never existed. Banks don't actually have money, only promises to pay you back. As long as the majority of people trust the bank, they won't feel like withdrawing their money. If they do decide to withdraw their money (bank run), the first 1%-5% of people withdrawing will get their money. Essentially banking is simply a confidence trick. 98% of the worlds money is banking tricks and only 2% is real cash

Yes, obviously. Go ask Jow Forums if the market cap of bitcoin means that hundreds of billions of USD have been invested in it and you'll be laughed off the site.

In crypto to trade using crypto. Not funding the death squads. Ever.

you have to understand how money works and what it means in order to understand what happens after that.

money is simply a medium of communication. if there is not a fixed supply of the medium, its value is a variable. the more there is, the less valuable. the markets crashing simply means there is no demand for the equity or asset being offered. in a real market, this would just mean that the value finds other investments and the people who lose their jobs find new jobs. but in a fake market, where money is created at the whims of politicians or bureaucrats, that doesnt happen (too big to fail).

imagine a forest where the trees are kept artificially alive and not allowed to die... the entire ecosystem gets fucked

It returns to a value of zero. Just like every fiat currency the world has ever seen. Kiss it goodbye. It will fail by the time I'm an old man.

Buy gold and silver.

About 99.9% of assets in the world are speculative.

There is no hard value for a stock for example. If 1000 stocks exist for a million dollars each, the stock has a market cap of 1 billion.

if suddenly that stock halves in value, 500 million dollars in speculative wealth vanishes.

It's one thing to be ignorant, Cyprus. It's another to be willfully ignorant and stubbornly refuse to learn. The pokemon card analogy was great and explained how market cap functions perfectly. Re-read it until you understand and then still kys.

you also have spooky things like currency revaluations, where the government pretty much sets an arbitrary new value for money from one day to the next.

Money is just a means to easily exchange goods. It has as much inherent value as any other colorful paper, but is much more conveniently to carry than a goat.

Bitcoin, faggot... Bitcoin.

Them niggas is just lazy.

Money is just a way in which we pay for things. It only holds value because we say it does. We use money because it makes the transfer of goods and services between parties far easier. Without it we'd be back to the ancient system of "I'll trade 10 oranges for your 4 watermelons." There's a true value in food because you can eat it. There's a true value in computers because you can use them to work, play, etc. Goods, services, and property are what hold true value; they hold value because generally you can actually do something with them.

Money used to have true value; in other words, $1 used to equal 1 ounce of gold or silver; it was tied to the value of silver or gold which holds true value. Therefore the money used to hold some form of true value as well as the dollar in your pocket was basically a silver or gold coin. Today this is no longer the case. The money we have today is basically paper whose value is determined by the Federal Reserve and to a lesser extent, the US Treasury. This is in part why prices are always continuing to rise. It's not that milk you buy is more valuable each year; it's that the money you use to buy it loses its value because more of it is being printed off lessening the value or because the general economy is suffering as these are the two markers that determine the value of our money.

In the event of an economic collapse, the money would become worthless paper as it would hold no value. It's not that money is being stolen, evaporated, or burned. You just wouldn't be able to use it to buy anything anymore, and you may be out of a job as well. The only value left in the economy would be in goods, services, and property. This is why you should make an effort to own land and other real items of value because this is what you're going to depend on when times get rough, and they will eventually.

.

Redpilled
See you in crypto

It becomes valueless generally due to runaway inflation. Look at Zimbabwe or Venezuela. One morning these people woke up and bread was normal price by that night it was 1000000 a loaf.

I'm sure this has been explained a dozen times in this thread already but it's all about asset liquidity.
Of course, the most liquid asset possible is a wad of dollar bills - they can be immediately exchanged for something without having to go through any other entity beforehand.
That's followed by money in say a checking account, then a savings account, and so on until you reach securities, then other assets such as real estate or businesses, and so on.

For example, the money in your wallet has a set value that doesn't change with speculation(barring inflation but that's a whole other topic), whereas your house, for example, is a speculative asset. It could be valued at $800,000, but if you can't find a buyer for said asset, it's essentially worthless.

The easier it is to exchange one asset for another, the more liquid it is. Hope that helps user

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And if you ask, why did we move away from the gold/silver standards to what we now use, fiat currency (a system in which the value is determined by assets and the government)?

Literally Jews.

One day Jow Forums will wake up and realize Bitcoin is the ultimate tool for defeating the banker jew; not a jew trick as most of 'em small-mindedly think now.

Sure. I guess, I came across too harsh.

But again, watch the video I linked to. It explain some of the basics well.

Mostly you need to understand the concept of "inflation"

Here are some videos explaining that:

youtu.be/beAvFHP4wDI

youtu.be/WKZvm_fqYRM

youtu.be/UMAELCrJxt0

It was never worth anything and they keep all the physical goods they hoodwinked you and the entire society they pulled a numbers game over on. This has happened multiple times through history.

The $90 when to an asset that gained percieved value as a result of the pokemon cards going down in value.

The value of everything is relative to other goods

The sole purpose of bit coin is to launder money for illegal activities while leaving no paper trail for police and the government.

It’s always been about resources OP.