AlbertLiang.net — Blog

In this downward spiralling economy, it got me thinking… where the heck did all of our money go?

Starting from the top:

1.) “Banks” are crashing because they over-extended their credit, which means homeowners have the cash.

2.) ”Homeowners” have given all their cash to pay for their houses, so presumably the banks have them.

3.) “Banks” loan cash out to people to buy things, such as cars and consumer goods, so let’s say Walmart has the cash.

4.) “Walmart” is laying off people, which means they don’t have it.  It means money went to 2 places: employees and merchandise manufacturers.  We assume cash that goes to employees returns back to step (3), so let’s follow the merchandise manufacturers.

5.) “Big manufacturers” are having hiring freezes or laying off people, too.  Their expenses: employees (step 3), advertising, and raw goods.

6.) “Raw goods” are…?

7.) “Advertising” means firms, designers, and media channels.  Well, none of them are crying for help right now, but I don’t think they consider themselves “well-off” right now either?

I don’t think I can trace this rabbit hole any farther, but even if one says raw goods = other countries, that doesn’t seem right, either.  All the countries around the world are in decline, except for maybe the oil producing countries, but maybe they aren’t so happy right now either with oil far, far, far below their “we-will-not-let-oil-go-below-$100-per-barrel” ultimatum they announced 2 months ago.

So… where did all of our (er… everyone’s) money go!?