$15 Trillion cash available worldwide ?

Discussion in 'Stock Market Forum' started by Ancient350, Jan 18, 2016.

  1. Ancient350

    Ancient350 Banned

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    Global markets have fallen 20% or by $15 Trillion since July 2015.

    This means $15 trillion cash is available worldwide ? :confused:
     
  2. Rainman

    Rainman Senior Investor

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    From what I've read on a couple sites the amount of cash circulating in the world is between $5 and $7 Trillion. But these figures aren't accurate because in the U.S alone there was about $1.39 Trillion in circulation last September. So it's possible there's more than $15 Trillion cash available worldwide.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    What it means is that the total value of the markets has gone down that much. Most of the money that has been pulled out of stocks is probably somewhere else, invested into other assets such as real estate, precious metals, bonds etc etc etc. Also a lot of that money was leverage anyway so people who sold used that money to pay back what they had borrowed.
     
  4. pwarbi

    pwarbi Senior Investor

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    Do you not think that when you read stories like this though, the amount of money quoted becomes meaningless?

    15 trillion dollars. I for one, don't even know what that's even going to look like. It's that big of a figure that it becomes worthless, it means nothing to the normal everyday person on the street.

    The markets have lost $15 trillion but my wage went up last year by $1.20 a day so everything is alright!
     
  5. Ancient350

    Ancient350 Banned

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    There are 20 to 30 years old investments. I mean millions of people have purchased gold 20 years back at $200/ounce. People have shares which were bought 20 years back at $1/share and now it is worth $75/share etc..
     
  6. Ancient350

    Ancient350 Banned

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    A big lobster in a 3 star restaurent costs $1500.
     
  7. Ancient350

    Ancient350 Banned

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    I think in past 20 years, some $40 Trillion has been invested in global markets and now $15 trillion has been withdrawn
     
  8. crimsonghost747

    crimsonghost747 Senior Investor

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    Well yeah of course these amounts of money are just ridiculous. That is almost the full year GDP for the USA. But we are talking about worldwide markets here... as you can see if you look at the indexes it's not a huge drop when looking at the percentages.
     
  9. Corzhens

    Corzhens Senior Investor

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    Sometimes the figures are plain stupendous and you only realize it when someone points it out to you. As they say, that's the problem with economics, even the figures are not tangible. This reminds of a recent post in Facebook when the Powerball lotto jackpot hit 1.4 billion. The post said if you divide that jackpot to the 300 million Americans then everyone will be a millionaire with 6.33 million. Wrong mathematics but several have agreed.
     
  10. anders

    anders Well-Known Member

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    There's a tendency to think that, but this isn't really what's going on. Markets reflect confidence, ultimately. They are a metric of the intersection between what someone is willing to pay for something, and what someone is willing to sell it for. When a market goes down, all it is telling you is that people wont pay the same price today for something that they paid more for yesterday.

    Now, why this happens is the real key. If you can predict the changes in the market, you'll become very rich in a short space of time. Essentially, we're all just trying to predict a fraction of it with a fraction of the information available. This is why trading is fun!
     

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