I don't watch this crap, but it's interesting...

Some of these people probably made high six-figures at least, but even Hollywood is feeling the pinch.


http://tv.yahoo.com/show/28652/news/urn:newsml:tv.ap.org:20081202:tv_cost_cutting_soaps__ER:81596

This got me to thinking, where is all the money going? We're cutting but there's X dollars flowing world wide. If business are cutting expenses, cutting jobs and closing doors, someone's got to be hording what cash flow there is. Am I missing something?
Sorry to make this a two-thought post.

 

You are missing something, namely the fact that economics is not a zero sum game. When the pie shrinks, then theoretically everybody should take a hit, and vice versa.

 

But no one is changing the bottom line: assets equals liabilities plus equity. One is swapped to the other but they all balance out and the cash doesn't disappear except into another category.

 

Wouldn't it be the interest catching up? This is like a bubble.

For example, if I get way behin don my household bills and run up my credit cards at the same time, it's going to take me awhile to regulate my finances again because there is a cost to being in a crunch like that.

If you take that simplified theory to each company I owe money to and also assume they owe money with interest accumulating... and then throw in the equity, futures and stock marke volatility, it doesn't really matter where each dollar bill end up right now.

Sort of, anyway?