EdEd

Busted: 6 Economic Myths

On Myth 1: One factor that we should consider is paper loss vs real loss. On the stock market, I will guess a lot is paper loss. e.g. If I buy a stock at $1 12 months ago, it was $2 6 months ago, now it is back at $1. Yes there is an opportunately loss of $1. (too bad for the guy that brought at $2). But on the subprime, I will guess someone actually lend someone $2 and now he only getting $1 back.