Fall of share market in several last weeks raised of question, where in fact ran a money? That was true was none penny then fund left share marke. Fall of share market that has been begun since September spread all through of the world. Beginning with Asia, Europe, America, even Middle East all of them experienced dramatic fall. On average, share market all over of the world experienced decline as far as 30-50 percent compared with 2007. Fall began with subprime crisis mortgage in USA, that triggered sluggish liquidity so as to make financial sector falling.
However according to John Sloman, Professor of economics from University of Bristol, Market in fact only experienced 'paper' loss and was not directly in contact with loss of cash fund. And this be connected with fall thought from 'paper' personally. "When we said trillions dollar was lost, then in fact this was wrong words," explained Sloman in his interview with the AFP. "That ought to be said by us was: trillions dollar value of money market has been destroyed." And this really different because this not money, but the value, actual was the basis from the price that the person wanted to pay him in a time, he explained.
Robert Shiller, the professor of economics from Yale University then explained him by comparing fall of price of the house. "For example one day you asked with property agency to estimate your value of house if being sold." However on following day, you asked second property agency to estimate your value, and the second agency of house made the lower estimation 10 percent, explained Shiller. "That meaning that you lost money?" Of course not, because money that was owned by you did not change likewise money in your account, he added again."However you will feel poorer." And this was the same his matter with in share market. There was no person who lost 'money' in a real sense in a manner term, but they have lost value, added Professor Shiller. Nevertheless, speculators's investor really could lose his money if try speculated in very volatil of share market.
A broker usually buys share with bad achievement because they speculated that price of share was achieved lowered point, in hope that they sell him again after price up. However sometimes evidently price of share precisely slid descended more far. "If you needed to sell these assets and your value of assets has descended, then you could lose money from price that you paid for these assets," explained Sloman.
"You must distinguish assets, like the share or house from cash." Cash could vanish, but value of assets like 'paper' (share) and physical (house) could descend because they depended on request and bargaining. However that did not mean to have money that was lost, explained the professor Sloman.
How about you opinion?
However according to John Sloman, Professor of economics from University of Bristol, Market in fact only experienced 'paper' loss and was not directly in contact with loss of cash fund. And this be connected with fall thought from 'paper' personally. "When we said trillions dollar was lost, then in fact this was wrong words," explained Sloman in his interview with the AFP. "That ought to be said by us was: trillions dollar value of money market has been destroyed." And this really different because this not money, but the value, actual was the basis from the price that the person wanted to pay him in a time, he explained.
Robert Shiller, the professor of economics from Yale University then explained him by comparing fall of price of the house. "For example one day you asked with property agency to estimate your value of house if being sold." However on following day, you asked second property agency to estimate your value, and the second agency of house made the lower estimation 10 percent, explained Shiller. "That meaning that you lost money?" Of course not, because money that was owned by you did not change likewise money in your account, he added again."However you will feel poorer." And this was the same his matter with in share market. There was no person who lost 'money' in a real sense in a manner term, but they have lost value, added Professor Shiller. Nevertheless, speculators's investor really could lose his money if try speculated in very volatil of share market.
A broker usually buys share with bad achievement because they speculated that price of share was achieved lowered point, in hope that they sell him again after price up. However sometimes evidently price of share precisely slid descended more far. "If you needed to sell these assets and your value of assets has descended, then you could lose money from price that you paid for these assets," explained Sloman.
"You must distinguish assets, like the share or house from cash." Cash could vanish, but value of assets like 'paper' (share) and physical (house) could descend because they depended on request and bargaining. However that did not mean to have money that was lost, explained the professor Sloman.
How about you opinion?
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