Where has all the money Gone?
Discussion
If you loan someone 500 quid and they purchase a car then it transpires they cannot pay you back your money you may say I will have the car instead. Except the car is only worth 50 pounds and you cannot sell it anyway. This theory applies to lots of other so called assets like houses. Everything then begins to get more complicated and I have'nt the time to type it all out.
I was wondering the same thing. Until a few months ago we kept hearing about how much profit the banks were making - billions per year - and then suddenly BANG. Now these profits were real money, I assume - not IOUs from other banks or other assets that might have been wildly optimistically valued.
Some will have gone out as dividends, and although it's tempting to think that it all went into the pockets of the mysterious and faceless "greedy bankers" I assume that declared profits are stated after deducting salaries / bonuses so that can't be relevant.
So I second the question - where did all the cash - the huge profits from all those earlier years - go?
Some will have gone out as dividends, and although it's tempting to think that it all went into the pockets of the mysterious and faceless "greedy bankers" I assume that declared profits are stated after deducting salaries / bonuses so that can't be relevant.
So I second the question - where did all the cash - the huge profits from all those earlier years - go?
crankedup said:
If you loan someone 500 quid and they purchase a car then it transpires they cannot pay you back your money you may say I will have the car instead. Except the car is only worth 50 pounds and you cannot sell it anyway. This theory applies to lots of other so called assets like houses. Everything then begins to get more complicated and I have'nt the time to type it all out.
But the £500 still has to be somewhere 
So does it boil down to a few thousand people/companies having billions of pounds/dollars sitting in accounts somewhere ?
MK4 Slowride said:
Silverbullet767 said:
MK4 Slowride said:
You've seen the flim Dumb & Dumber?
IOU's are as good as the real thing!
That ones $235,000 for the ferarri, you might wanna hang on to that one....IOU's are as good as the real thing!
It was a Yellow Lambroghini Diablo SV they purchased not a Fenarwi.HTH
Come to think of it I do remember the doors opening upwards and lots of bags falling out.
I stand corrected.
zadumbreion said:
I was wondering the same thing. Until a few months ago we kept hearing about how much profit the banks were making - billions per year - and then suddenly BANG. Now these profits were real money, I assume - not IOUs from other banks or other assets that might have been wildly optimistically valued.
Some will have gone out as dividends, and although it's tempting to think that it all went into the pockets of the mysterious and faceless "greedy bankers" I assume that declared profits are stated after deducting salaries / bonuses so that can't be relevant.
So I second the question - where did all the cash - the huge profits from all those earlier years - go?
Banks tend to lend it. Some will have gone out as dividends, and although it's tempting to think that it all went into the pockets of the mysterious and faceless "greedy bankers" I assume that declared profits are stated after deducting salaries / bonuses so that can't be relevant.
So I second the question - where did all the cash - the huge profits from all those earlier years - go?
Not all of it comes back.
SPPPISTON said:
Every day we hear about all the money that has been lost by Banks etc.
Where is all this money, or was it all just an illusion in the 1st place?
An illusion is a good way of thinking about it.Where is all this money, or was it all just an illusion in the 1st place?
Imagine we say our country is worth x million pounds. A lot of that might be based on property value. Now lets say property values half. Now you could argue that the country is now worth a lot less. The money has not gone anywhere because it was never really there.
Imagine if you checked your balance and found 1.3 trillion pounds in your bank account? No explanation, it just turned up there.
What the hell would you do? How would you explain it? How would you spend it without people figuring out that you were the unwitting beneficiary of the global financial crisis, and you had no idea how?
What the hell would you do? How would you explain it? How would you spend it without people figuring out that you were the unwitting beneficiary of the global financial crisis, and you had no idea how?
FourWheelDrift said:
Size Nine Elm said:
I've just had a look behind the cushions on the sofa, and just found £1.3 trillion! Has anyone lost it?
Yes and I can prove it's mine, there's a picture of the Queen on the front.It's in Scottish notes... (and its a very big sofa).
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