I don't understand. I see this and I don't understand it. Capitalism is made not to be understood, it hides behind shit like this that the average people like me can't comprehend
what the fuck does it mean 2 trillion dollars were wiped out? Did someone just stole it and stashed the money in a vault in fucking rural Virginia or something?
This is literally clownworld, capitalism is so fucking fake it's mounted on feelings and graphs jesus christ let's tear this fucking shit down.
A hypothetical: a group of stonks are valued at $3T based on the number of stonks in circulation and the values they are being traded for. Due to whatever factors, the values those stonks are being traded for declines by 2/3, meaning the same number of stonks are now valued at only $1T. $2T of value is gone, but no actual real money is destroyed.
If youre still confused though; the issue is that while those values of stocks are being traded at $3T real more solid financial decisions are being made at that valuation. If youre one of those investors and you have $100,000 or something in those stocks you could use them or they would be evaluated in collateral in loans. Thus the fakest parts of the economy become realized in your pocketbook. If enough investors get loans or have other financial instruments get destroyed by this loss of valuation it leads to the banks being unable to shore up their own losses. then you have people losing their banking abilities.
It always trickles down to those who make up the realest parts of economy, the workers to dig all these financial sickos out of their holes.
Saying that companies are "worth" their market cap is a lie the news tells because it's simple and makes good narratives. The truth is both much more complicated (share prices allow companies to more effectively borrow money and pay high level employees) and much simpler (investors are dumb panicky animals and will cause chaos in response).
I don't understand. I see this and I don't understand it. Capitalism is made not to be understood, it hides behind shit like this that the average people like me can't comprehend
what the fuck does it mean 2 trillion dollars were wiped out? Did someone just stole it and stashed the money in a vault in fucking rural Virginia or something?
This is literally clownworld, capitalism is so fucking fake it's mounted on feelings and graphs jesus christ let's tear this fucking shit down.
A hypothetical: a group of stonks are valued at $3T based on the number of stonks in circulation and the values they are being traded for. Due to whatever factors, the values those stonks are being traded for declines by 2/3, meaning the same number of stonks are now valued at only $1T. $2T of value is gone, but no actual real money is destroyed.
yeah, because it was never there. it's all make believe. vibes.
If youre still confused though; the issue is that while those values of stocks are being traded at $3T real more solid financial decisions are being made at that valuation. If youre one of those investors and you have $100,000 or something in those stocks you could use them or they would be evaluated in collateral in loans. Thus the fakest parts of the economy become realized in your pocketbook. If enough investors get loans or have other financial instruments get destroyed by this loss of valuation it leads to the banks being unable to shore up their own losses. then you have people losing their banking abilities.
It always trickles down to those who make up the realest parts of economy, the workers to dig all these financial sickos out of their holes.
It was I who wiped 2 trillion dollars, I wiped them off my bum with toilet paper
Saying that companies are "worth" their market cap is a lie the news tells because it's simple and makes good narratives. The truth is both much more complicated (share prices allow companies to more effectively borrow money and pay high level employees) and much simpler (investors are dumb panicky animals and will cause chaos in response).