Funding the Future Where does money go in a crash?
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Dec 10, 2025 Discussing the imminent stock market crash, the host explores where lost billions actually go when markets dip. Using a baked beans analogy, they illustrate how market prices depend on hope rather than actual cash. The conversation highlights that paper losses only become real upon selling shares, with panic playing a crucial role in cash losses. Further, the show delves into how crashes reflect emotional shifts in confidence rather than the physical destruction of money, making it a fascinating listen for anyone interested in market behaviors.
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Market Losses Are Revalued Hope
- Stock market losses are often just revaluations of expectations, not cash disappearing.
- A reported £100bn wiped off reflects changed hopes, not money moving into someone else's bank account.
Baked Beans As A Market Metaphor
- Richard Murphy uses baked beans as a concrete example to explain market repricing.
- Beans priced at £1 falling to 80p shows a £200,000 drop is just a change in hoped-for price.
Prices Reflect Expectations Not Bank Balances
- Share prices represent expected sale prices, not guaranteed bank balances.
- Values are guesses and can change quickly with confidence shifts.