Once it's in circulation for a while, its origins do not cause distortions. yes it does. paper money is an artificial commodity. its value is a function of h

Once it's in circulation for a while, its origins do not cause distortions. yes it does. paper money is an artificial commodity. its value is a function of how much is available. While the origins of any ONE particular dollar does not matter, the total amount does. Thus the demand for food, rent and movies was perfectly real. right, but this demand was only satisfied through the non-productive counterfeiting of money. thus supply was increased without proper cause. The proper cause of higher supply is higher productive demand. Every market contract is written assuming there are are $10 trillion Federal Reserve Notes in the world. actually every contract is written assuming that the currency will continue to inflate at more or less the same rate as it has historically. companies failing where is the evidence that financially prudent companies are failing? it is only because GAAP are so biased that people are allowed to run companies so close to the wire. Companies with decent cash flow are just fine. Expecting that companies with poor cash flow are healthy companies just because they were able to survive in a time of easy credit has warped perceptions. We will now be forced to return to good business practices. This is a good thing. What you're talking about is the problem of unwinding all these leveraged positions. No, I don't think people deserve to have their positions rescued just because they didnt understand what leverage meant. No financially prudent company would do ongoing deals with a company that was leveraged 30 to 1. The whole world has forgotten how to run a business in the absence of easy money. It's time we remembered. Solid cash flow. Not dependent. Produces something of value.