Economics 101, Chapter I
The President is starting to take a few hits about all the money we are spending to replace all the money that was lost that no one can find.
Course' the folks that lost it ain't talking about who they are or where they put it which sort of raises the question of, where did it go?
I figure it this way. Now suppose you own stock worth $100 bucks. (For the big time players just add a lot of zeros to this number). Suppose the stock drops dramatically to half its value and you now have $50 dollars worth of stock. Where did the other fifty bucks go?
If I gambled at the casino and lost, I know where it went. The casino and the state got it. So who got my stock money? Obviously the companies that sold the stock. And they lost it to wherever they spent it and can't pay it back with dividends 'cause they lost it to someone else and their profits are down, but somebody else got it, and they're not moving it on.
So all the President is doing is shelling out replacement money for the money that isn't being spent to keep the economy moving until such time as the people holding the money decide to spend it or loan it to someone who will.
Tomorrow: Chapter II "Inflation" or "Now I got so much money nobody wants it".
