Quote:
Originally Posted by tiger
The funny thing is for all these people to lose a billion or trillion or w/e someone else had to make that much. Where did all that money go? Wealth isn't lost or created only transferred.
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It's sort of right, but wrong at the same time. The world in the last decade has created a lot of millionaires and billionaires in countries that were on the edge or close to poverty. Look at China, Russia and India to see this. The Trillions that flowed into these countries flowed out of the US and the West.
They spent a lot of that wealth in their own countries. They also invested in the West as well. But not as much as they spent/invested at home.
However IMO the real reason for the collapse is the West does not produce enough goods to sell back to the developing world and the West inflated the value of what it owned. Houses, stocks, banks and companies simply were not worth what they were priced at. So when the money that did flow out went we hit a wall. Again and again. And again.