Comment by wyre
4 hours ago
> When more assets are sold than are bought
How does this make sense? If Johnny sells 5 cars, that means 5 cars were bought. How can Johnny sell more cars than are being bought? Do you mean that Johnny has more cars to sell than are being bought?
It's like a hot potato where people want to sell assets over buying them. Obviously at any given moment there are as many buyers as sellers, but this is exactly why trying to force people to sell at rock bottom prices brings widespread asset destruction.
Ya, but if there are way more sellers than buyers that means that prices are inflated. If prices were lower there would be more buyers, but sellers want to keep their asset prices inflated so they don't lower prices. Assets that are priced properly don't have the problem of having too many sellers. I think calling it asset destruction is slightly disingenuous. Just because the price is lower doesn't mean the asset is destroyed. Even if we are talking about a stock selling for 50% less, it is still a share in company ownership.
Who is forcing anyone to sell at rock bottom?