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But over the whole US it's a wash - the number of people who are upside down is exactly balanced by the number of people who made a lot by selling. There's no
by biohacker42 17y ago
But over the whole US it's a wash - the number of people who are upside down is exactly balanced by the number of people who made a lot by selling.
There's no such implied symmetry in markets. Trading is often very asymmetrical.
- ars 17y ago> Trading is often very asymmetrical. Explain please. Because if you paid too much on your house, and are now upside down, the person you bought it from has more money than before. It seems symmetrical to me.
- biohacker42 17y agoPerson A: Invest 10 borrow 90, sell for 120, profit 10. Person B: Invest 10, borrow 90, sell...oops market has turned, default on borrowed money. Bank folds, CDOs lose their AAA credit rating, investors lose their saving investing in CDOs. Total profit 10, total loses due to leverage: far far greater then 10.
- ars 17y agoAnd the person that you bought it from in step B made money, and you lost money. I still see a perfect symmetry.