$1,000,000,000,000 Lost Sep. 28th?

[TrueHeart]

I do not intend this to be a confrontational inquiry. It's a sincere question. There are a lot of different kinds of folks here, from different backgrounds, and I think it might be better to ask this question on a forum like MBTI Central rather than on one devoted to, say, politics or economics.

All the talking heads on television here in the USA have been telling us since yesterday evening (Sep. 28th) that "A TRILLION DOLLARS WAS LOST" in the DJIA drop of 700+ points.

My question(s): in what sense are the words "wealth" and "lost" being used in that statement?

[ptgatsby]

Originally Posted by TrueHeart

My question(s): in what sense are the words "wealth" and "lost" being used in that statement?

Wealth should refer to the (stock) capitalization of the shares that make up the index. Lost would mean that their capitalization (ie: total shares oustanding (stays the same) * value of shares) was reduced by that amount.

[MetalWounds]

Probably left his trillion dollars in his other pair of pants.


I do it all the time.

[Lateralus]

There's no real wealth lost, since stock is just a claim on company assets.

[IlyaK1986]

Originally Posted by Lateralus

There's no real wealth lost, since stock is just a claim on company assets.

You're ignorant. Those claims on company assets were paid with real money.

The stock price*shares outstanding=value of a company. The US GDP is around 13-14 trillion. 7% of that is 1 trillion.

[pure_mercury]

My mother claims to have lost US$13,000 last week, and she owns no stocks outside of her university 401(k), which is administered by TIAA-CREF. That sucks.

[Lateralus]

Originally Posted by IlyaK1986

You're ignorant. Those claims on company assets were paid with real money.

The stock price*shares outstanding=value of a company. The US GDP is around 13-14 trillion. 7% of that is 1 trillion.

It's all imaginary until you have cash in hand.

[IlyaK1986]

Originally Posted by Lateralus

It's all imaginary until you have cash in hand.

It's not imaginary because you GAVE cash FROM your hand to get those securities.

[Nocap]

Originally Posted by Lateralus

It's all imaginary until you have cash in hand.

Even then it's imaginary. Damned thing says reserve note.

[Nocap]

Originally Posted by IlyaK1986

It's not imaginary because you GAVE cash FROM your hand to get those securities.

Which can easily be taken away, since it's all just electronic bits in a computer or flammable paper in a file.
Hence his actual point; until you're holding it yourself, it's not really secure.

Jeez... Thinking dominant my ass.