Thought this was cool: Where has all the money in the world gone? : finance
Where is all the money? I hear nothing but bad news about financial crisis all over the world, and it seems that there is a shortage of cash – like it is some sort of natural resource.
People haven’t stopped buying stuff. They still need food, clothing, medicine, shelter. Taxes are still collected. Fines are still levied.
So where is all the money? I mean, labor has been produced to make things and wages paid to the laborers. The things are purchased by other laborers, who were paid for producing goods or services, etc. It’s a closed loop, right?
Can someone explain it like I’m five or something?
from Hacker News 200: http://www.reddit.com/r/finance/comments/utf5u/where_has_all_the_money_in_the_world_gone/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+hacker-news-feed-200+%28Hacker+News+200%29