why does money disappeared during the economic crash? what happens that money disappeared during the economic crash?

[Parker99]

Why do people say money disappeared during the economic crash and people quit buying things. What do they mean by money disappeared during the economic crash? What causes that? And why do people quit buying things?

 

[1srelluc]

 

[Woodznutz]

The money isn't gone, it just remains in checking and savings accounts...waiting.

 

[Mikeoxenormous]

Why do people say money disappeared during the economic crash and people quit buying things. What do they mean by money disappeared during the economic crash? What causes that? And why do people quit buying things?

Back in 1999 the Dot Com bubble burst and at that time, my portfolio lost over $300,000 in value. I didnt panic sell, but waiting out the storm, because i knew that the market was going to rebound. People of Enron though had completely invested in their company and when it went belly up, they lost everything, their income and retirement because the Enron stock went to zero. That money disappeared as so did the company. When the market rebounded i not only got back my $300,000 but an additional $500,000. So money was created for me.

 

[Woodznutz]

Money is always in motion. A $Trillion or more leaves the U.S. economy each year thanks to the huge trade deficit, drug money, and remittances. We then print/borrow to make up for it. Not good.

 

[Kruska]

Why do people say money disappeared during the economic crash and people quit buying things. What do they mean by money disappeared during the economic crash? What causes that? And why do people quit buying things?

The money itself doesn't vanish - only the figures on a Balance-sheet, figures on someones bank account statements or figures on a computer screen "changes e.g. negatively" or reduces itself in the worst case down to the figure ZERO and/or up to whatever minus figure.

Is that you?



And someone answered:

This. Almost all money is held as records of debts ('bank owes me $x'). When the debt is downgraded or written off, the money disappears, just as it appears when the debt is created.