>>10610
I am not sure if I even disagree with you because you are talking about a different issue which is wealth redistribution. In general wealth will be still lost by most of the rich people.

there is no such thing as economic recovery it is just denomination of money if you have hyperinflation and then you cross out a few zeroes from your bills

what you call recovery is simply the destruction of old debt so that economy can grow again. debt/loan is nothing else than a form of asset and those who own it during that economic recovery will be the biggest losers.


so the way how you make gains in that "recovery is if you strategically change bad asset into a good asset and this way preserve part of your wealth or maybe even gain something
but this idea relies on the belief that other people will be too stupid to do the same.

if for example, you will decide to preserve your wealth by exchanging your government bonds into gold you will simply hijack gold price to the level where it will will not return after the recovery. so you will still lose money.

let's say you own 10000$ bonds and buy 1 ounce of gold which supposedly costs 10 000$ at that time because everyone is rushing to buy it to save whatever they still can. hyperinflation happens the value of bonds go to 10$ after hyperinflation when 3 zeroes are crossed out, but gold now only costs 1000$ in new money which largely represents old money in terms of buying power.
Because now when the economy is growing again it is a waste to invest in gold which gives you no capital growth and stocks are giving you huge dividends.
so you will still lose most of what you had and the winner will be the government which printed all that money.

sure it can play out in a different way if only a few people will buy gold and most will stay with stocks and bonds those who had bonds will lose them in the crash and those who had gold will enjoy great gains this way redistributing wealth from bondholders to gold holders.


>If you pooled together ALL the money in the world, and divided it equally between all 8 billion people; within five years, EVERYTHING would be back to the way it was in the first place.


Well, actually I even did my own calculations by dividing all stock market capitalization by the number of people and PE ratio on that and according to that,
If you distribute all stock assets to all people on earth equally you only get about 100$ a month of dividends for each.
So it is really not that much unless you live in some Nigerian slums or deep Chinese village.
Distributing it in raw price value is meaningless because those prices are arbitrary and they cannot be sold in the real market.

Rich people do not really get that much as one could believe, because on this day when the ratio is about 30 and growing if you own 1000 000 of assets, you are making 30 000 a year and this is close to minimal income in the US. So to have 5 figure income you need at least 3 million worth of pretty risky assets.

your calculation that everything will be back in 5 years is also wrong because this is only valid at the PE ratio of 5
since today it is 30 or more it will take at least 30 years to revert back to the current situation (or more likely over 100 years)