recession o k. but, what happened to all the money in circulation hitherto?
An illusion a virtual money situation was created.
Actually money was never been there.
Govt's and regulatory authorities presented impracticable GDP forecasts for their own selfish ends.
People enjoyed unreasonable personal loan, housing loan,auto loan and all possible loans.
Hedge funds made a brisk business.
When the reality start coming up it was late and the bubble was too big to hold itself.The blame game started.
It started with housing woes and sub prime crisis.
Then the various governments atart giving packages to industries from the tax payers money.
The real question could be where has the tax payers money gone which is paid on various packages as stimulants ?
i think you can read Lehman fallout what exactly happened
is you pay a rickshawala loan of 100 Cr. and ask him to pay back every month 1000 rs. selling 5000 hut for 100 Cr. all money middle man swindled it..unfortunately all middle men were smaller banks
when fellow told i do not need your house and i am bankrupt gives court notice and walks out.
value of house was only rs 5000 only and you have given loan of 1000 cr. you not only lose 1ooo Cr. plus your business expected profit and all bubble plan put on paper.
so money was never there where it will vanish
As always........it wud be safe in the bank accounts of an already rich businessman or in the accounts of a politician to whom the businessman has gone for help some time or the other.
If u ask me.........money has always been interested in people who have already had it more than enough. So if u want to look for it, just watch out for those who have it in heaps.
But i do appreciate their talent to make all these seem like nothing. ;-)