The money did not go anywhere, it is just that the money ppl
have does not exist in the first place. For example, I buy a house
and at 1million, then I sell the house the next year at 2million,
so everyone on believe I am now 1million richer. However throughout
the transaction, no one sees the 1million dollar flowing. I sold my
house to one person and he gets the bank to perform the transaction
through paperwork which the bank believe he has. The person who
bought my house has 2million in his bank account earned the money
from his business. His business earn that 2million from a client
who actually borrow the money from the bank. The bank lend the
money to that person by adding the money to his account. but in
fact the bank does not have enough money. Everything is via
paperwork. Then one day I want to see 2million cash which I have
not seen before, so I ask the buyer to give me cash. He then
withdraw from the bank. The bank then give him the money. But
running out of cash the bank seek back money from the the house
buyer's business client. he could not return the money, he declare
bankrupt. Everyone realise the situation and start looking to see
if they have the real money. When eveyone wants to see money, the
bank have to get back the loan money to customer which they claim
to have but do not have. And the cycle goes....
Conclusion, the money did not goes anywhere. We just realised we
do not have that much money in real life. And stop dreaming
if we think we are rich.
