Wealth is not a zero sum game, but more importantly, valuations are not actual money -- they're just what the company would cost if you bought the whole thing at the same price as the last investment. If a company has a down round, billions may be wiped off the valuation, but actual losses suffered by previous investors are a small fraction of that.
Right but I just meant doesn’t true wealth have to be injected at some point ? Like at some point someone actually needs to mine new resources and inject the resources into the economy ? I don’t really see the last ten years, countries having mined a 100x increase (non inflation adjusted) in raw goods..?
So that leaves the investment. Then others are investing in all these tech companies.. it is a cyclic dependency graph if you trace through the millions of nodes (assuming you get through the offshore accounts which I presume function as sinks). Then ... these companies are getting huge valuations because everyone else is investing more and more into them? Including themselves investing into themselves ?? When does the buck stop? Doesn’t this wealth need to be backed up ultimately by some gold bars ? Even if it’s fiat and fractional reserve .. so someone’s trust rating is ultimately taking a hit? Is the us printing this money out of thin air on the back of it’s huge credit ? I know the economy is too complex to be boiled down like this but where are these 100x increases in billions coming from ultimately? People credit ratings summed over millions of people ?
I never took any Econ courses so admittedly my Econ is terrible.
