Stock market crashes, the opposite of printing money?

Discussion in 'Economics' started by crgarcia, Apr 17, 2007.

  1. In my opinion the stock market is NOT a zero sum game. If it were, there would have to be a short seller for every stock issued.

    Money and wealth are subjetive concepts, depend on the value we think money/wealth has.

    Printing money is easy, government can give very low interest loans, or even just give it away.

    But "un-printing" money is hard to do as money belongs to somebody and they would not allow it to be taken away. The only choice would be heavy taxes without spending (i.e. gov't budget superavit)

    So in stock market crashes, and recessions both wealth and money "vaporize", correcting printed money?
  2. Div_Arb


    "The only thing you need to be worried about is who you are going home with tonight."

    What movie?
  3. Boiler Room?