rogerk2

Destruction of Wealth?

The stock market is not causing destruction of wealth. The market is a zero-sum mechanism: it simply transfers wealth from one party to another. Every loss is offset by a comparable gain to somebody else somewhere in the system.

What we are actually seeing is destruction of unrealized or paper wealth, the writedown of imputed values of stuff that aren't tangible assets. We're getting killed by failed insurance policies, not failed companies...and by the bankers and rating agencies and insurance companies that pitched this stuff like it was real.