You know during the great deppersion, the stock market around the world fell and supposivly each nation became poor!.
I wondered where did the money go!.
That was one big magic trick scandel!.Www@QuestionHome@Com
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Position:Home>History> Where did the money go?Question: Where did the money go!? You know during the great deppersion, the stock market around the world fell and supposivly each nation became poor!.
I wondered where did the money go!. That was one big magic trick scandel!.Www@QuestionHome@Com Best Answer - Chosen by Asker: What Money!? It is best to think of the Great Depression as a Cr^p Game in Las Vegas!. You enter the Casino with a Thousand Real Genuine American Dollars!. You make some money you lose some money you just about reach equlibrium and then you get to thinking that you are invincible!. The Casino agrees with you (wink wink nudge nudge) and they give you CREDIT for Ten Thousand Dollars, now you are truly on a roll, the dice are hot, you're hot, you are on fire, the Casino gives you credit for TWENTY THOUSAND DOLLARS!. You stay hot, oh you are sizzling, you feel so good that you accept the Casino's offer of a FIFTY THOUSAND DOLLAR CREDIT!. BAMM! A couple of rolls of the dice and your hit the wall!. WHAM!. Not only have you lost your orginal One Thousand in Genuine Green, but now you OWE the Casino for EIGHTY THOUSAND DOLLARS!. Now to be honest those dollars never truly existed and yes it can be argued that had you won say ONE HUNDRED THOUSAND DOLLARS you would have made 19,000 to the good while paying back the Casino the money given to you on credit!. But as it stands you have NOTHING yet you Owe the Casino for the Credit it gave you! That was the Stock Market then and oddly enough now only now (2008) there are supposedly safe guards in place to keep crashes from happening but it is still a shell game!. People take out credit to buy stock at fluctuating prices!. What is the actual value of fifty shares of one eighteen thousandth of StrapOnDildo Corp!? Money is what people choose to give value - - - - Peace/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\Www@QuestionHome@Com Much of the stock market at the time was based on buying on margin, meaning that the market would "lend" money to the buyer in order to buy stock!. That works fine if the stock continues to rise all the time, and the profits are called "paper profits" as they have not been realized until the stocks are sold!. In the depression, perhaps 90% of the stock was bought on margin (now there's a limit on margin), and many people put ALL their money in the stock market, since it seemed like such a sure thing!. When the market "crashed," the value of the stocks became worthless--since it was mostly "loans," there was little actual cash!. People became poor (who can buy fancy cars and houses when you have no money), those people weren't paying taxes or buying and supporting other people, no one was hiring anyone, etc!. It was a domino effect throughout the US and the world!.Www@QuestionHome@Com The money was there but lost it's value, all of the sudden it was just a piece of paper!.Www@QuestionHome@Com Money was there!.It had no value!.Www@QuestionHome@Com |