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In the 80's Stock market crash, where did the money go? 

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  • In the 80's Stock market crash, where did the money go? 




    In the 80's Stock market crash, where did the money go?

    Specifically, that last hour of the last day, that last guy paid 20 dollars for a share, and the next day it was worth 1 dollar.
    Who had the other 19 dollars?

    I've never heard a real answer to this question.

    What are your theories, understandings or wild accusations around this phenomenon, or any similar crash .
    Last edited by McDuck; 10-05-2021, 08:32 AM.

  • #2
    Whether it went up, down or poof - the brokers still got paid.
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

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    • #3
      Originally posted by PC View Post
      Whether it went up, down or poof - the brokers still got paid.
      Assuming they weren't also putting every cent they earned into those quickly appreciating shares, or spending it on fancy drinks.
      But yes, you're definitely on to something, the middle man wins both ways.

      Have you considered the role of the other middle man?
      The clearing house?

      Comment


      • #4
        It was truly dark days for the empire.

        New Zealands sharemarket crashed 60% and didn't recover until the mid 90s while the evil Lord Greenspan US empire recovered in only a few short years.

        Jeffa was only a youngling capitalist at the time and most likely stealing your milk money from your milk bottles you naively left by your mailbox.

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        • #5
          It went to the person who sold it to him! You buy an apple for $1 and eat it. Where did the $1 go?

          if they held the shares for years in most cases the value came back .

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          • #6
            A video to put you in the right technological frame of mind.

            https://www.tvnz.co.nz/one-news/new-...heyday-6242699
            Last edited by McDuck; 11-05-2021, 11:02 AM.

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            • #7



              Originally posted by hawkeye View Post
              It went to the person who sold it to him! ..
              Exactly.

              Or so you think.

              So, if the money simply went to another stock market player, why did a 20% drop happen?
              And why was it a problem?
              Last edited by McDuck; 11-05-2021, 11:09 AM.

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              • #8
                Of course, the money goes to the elites

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                • #9
                  Originally posted by DrownInside View Post
                  Of course, the money goes to the elites



                  International statistics seem to agree with you.
                  So, can you show your working?

                  Start from...

                  Last Friday Uncle Bob bought $100 dollars worth of Yuppiecorp shares.

                  He wakes up on Monday and reads the newspaper,
                  he goes to the stock section, and sees his Yuppiecorp shares are now worth only $50.

                  That's a 50% loss.
                  Further more, he notices that every share in the stock market is now worth 50% less (than it was last week).

                  Q : Where did the money go?

                  * Uncle Bob and all the other buyers worked for the money they paid with, it was actual NZ dollar coins.
                  Last edited by McDuck; 12-05-2021, 07:53 AM.

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                  • #10
                    Originally posted by McDuck View Post



                    Q : Where did the money go?
                    I don't doubt the markets were and are still munipulated.. but hey so is the housing market ,ask Adrian Orr.

                    The money most likely (if) you managed to get out on time went into a high paying deposit account paying 20% per annum then eventually back into discounted stocks.

                    In New Zealand it went into realestate.

                    When all off this went to comfortable assets they printed more money and figured out way's to transfer it from the working and middle class back to the elites.

                    It was usually transferred by way of clothes,cars, ******** cell phones, TV's and other depreciating good's.

                    Oddly enough in 2021 the money is now the depreciating good.

                    So the question should not be we're did the money go but we're did your purchasing power go.

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                    • #11
                      Originally posted by Jeffa View Post
                      ...

                      The money most likely ... went into a high paying deposit account ...
                      ...



                      Just one small clue at a time, (if we're to do a thorough forensic on this).

                      So, I bought some shares just before black Monday, and sold them as soon as the prices started to dip.

                      The money came from a bank account, and went back into one.

                      I didn't really make any money, or
                      lose any.

                      Even if I did, the money would still have been in someone's bank account.

                      If the money just shifted from one place to another,

                      Why was it a problem?
                      The overall system lost no money.
                      Last edited by McDuck; 13-05-2021, 05:44 PM.

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                      • #12


                        Possibly a good model to consider this by is the "woods between the worlds" model.

                        The money started in a private savings account. (small pools of water).

                        Jumped to a stock market account.(a larger pool of water).

                        and back out to a private bank account. (small pools of water).

                        Since the overall quantity of water in all the pools is maintained by the conservation of mass.

                        https://en.wikipedia.org/wiki/Conservation_of_mass

                        There was a liquidity* shortage in 1987, (interest was so high),

                        so one of the pools must have been hoarding, causing a shortage in the others,

                        Hmmmm.
                        Last edited by McDuck; 18-05-2021, 08:04 AM.

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                        • #13
                          Originally posted by McDuck View Post


                          Possibly a good model to consider this by is the "woods between the worlds" model.

                          The money started in a private savings account. (small pools of water).

                          Jumped to a stock market account.(a larger pool of water).

                          and back out to a private bank account. (small pools of water).

                          Hmmmm.
                          The thing here is, that the storage pools are in reality Trading Banks.
                          And the Banks are not passive players in the game.
                          The Banks are active players.



                          Now, if the money was stored in your pocket,
                          in the form of a gold coin,
                          it would be passive.

                          The Trading Banks couldn't fiddle with it's purity.
                          Just by using the consistency of gravity, and a set of scales, you could immediately see their inflationary cheating.

                          The debasing (inflation) would be obvious.
                          And the crook could easily be identified.

                          I'm starting to see how this con worked.

                          Last edited by McDuck; 25-05-2021, 12:04 PM.

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                          • #14


                            Here are two early ways to record debt relations.
                            The clay tablet is from the very dawn of civilization. the other is a tally sick from medieval Europe.

                            I'm starting to see how this was a credit market crash, not a stock market crash.
                            Calling it a stock market crash is really a diversion.
                            That then puts the focus back on bank behavior.
                            Who were the people making the high risk loans?
                            Is the bank valuation model reliable, or just pure fantasy?
                            Is it even ethical or better still mathematically correct?

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