Reply #43: If a bunch of people think a painting is worth a million dollars, and then, an hour later, decide [View All]

that it isn't worth shit, where does THAT money go?

Same place, reinforcing what others on the thread have said.

That's why I HATED hearing, during the tech bubble, that Silicon Valley venture capital firms x y and z have "created more wealth" (during that time) in 10 years than has previously been created in human history etc.

No doubt a great deal of actual wealth WAS created, but the scale of the paper numbers based on pie in the sky perceived value in no way reflected that, and most of that wealth disappeared even more quickly than it was "created".

If you decided a company's stock was worth a thousand a share, and then suddenly realized it was a shitty company and was only worth 50 cents a share, no real wealth was created or lost during that hour, although it sucks for the guy who bought a house based on their anticipated salary working for that company.