Originally Posted by pip08456 (Post 35896076)

So the money never existed but the Government propped up the banks because they'd lost the money that never existed anyway.

You on cookooland Damien?

Consider this. I have a property you want to buy so you get a mortgage for it, contracts are exchanged and I am paid by whoever you organised the mortgage with.

Just because you don't see the money doesn't mean it doesn't exist.

Money cannot "disappear" it may become less valuable but it still exists somewhere.

Like it or not, someone somewhere made billions out of the sub prime market and stitched up the banks. We have had to pay for it though as usual.

Originally Posted by 1andrew1 (Post 35896077)

You buy a car. Sell it a year later and it will have lost thousands. Money disappears.
Yes, those house builders, realtors, mortgage-lenders in the US rust belt and elsewhere did rather well. How well they will do in the long-term is another matter.

Originally Posted by pip08456 (Post 35896079)

Wrong analogy.

I buy a car, having used it the value of it is less and rightly so, it's not worth the same as a new one. The point is it was paid for so the money changed hands in the beginning so someone had it.

Unless they bought another car they still have it.

Originally Posted by Osem (Post 35896083)

Maybe we should tell the EU that the £60bn they reckon we owe them doesn't exist... ;)

Originally Posted by 1andrew1 (Post 35896084)

It was not an analogy. Here's a different situation.
You buy a car for £10k and don't use it for a year. You sell it for £8k. It will still have lost £2k.

Originally Posted by pip08456 (Post 35896087)

It's still second hand (classed as used).

This is getting way off topic now so I'll end there.

Originally Posted by 1andrew1 (Post 35896088)

Agreed. My point remains that money can disappear.

Originally Posted by Taf (Post 35896098)

And appear by magic.. https://en.wikipedia.org/wiki/Fiat_money

Originally Posted by Damien (Post 35896113)

Le Pen has stepped down as leader of the National Front to run as an independent.