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> For example, if I buy MSFT for $100 and later sold it for $110, who "lost" $10? It is hard to answer at micro level--that is, it is hard to answer who gained
by raincom 8y ago
> For example, if I buy MSFT for $100 and later sold it for $110, who "lost" $10?
It is hard to answer at micro level--that is, it is hard to answer who gained or lost. However, at macro level, this question has been tackled from the sectoral balances framework introduced by Wynne Godley.
On the aggregate, households spend less than they earn/receive. So, households accumulate net financial assets and tangible/real assets. During a stock boom, the net wealth of households increase. During a crash, the net wealth could become negative.