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Well, the importer who would have spent his money on the fans now spends it on something else. The Finance bucks are now recirculated into the REAL economy.
by bawana 8y ago
Well, the importer who would have spent his money on the fans now spends it on something else. The Finance bucks are now recirculated into the REAL economy.
- icebraining 8y agoThey don't have that money to spend, because that money came from the sale of the previous fans, but now it's the investors that are selling them. Before: Importer spends $100 to buy the fans, spends $10 to ship, gains $150 from sale. Net: $40 Now: Finance guys spend $100 to buy the fans, pay $50.01 to the importer to ship them, then sell them for $150. Net (for the importer): $40.01. The finance guys are down $0.01, but they get Real Bucks from that. The real economy gained a mere penny. It just added complexity to the whole thing, for no real gain.