It goes into investors pockets, right?So when they say 1.2 trillion has been lost in the stock market when the Dow dipped 777 points, that means it is taken out and stowed away by investors.Why exactly does this money transfer from businesses to individuals mean the economy is suffering?The money has not just disappeared, right?l realize that it means that businesses wo not have the cash to expand, but the cash is still somewhere, correct?Some people must have gotten rich selling their shares this week, in any case, if not as rich as they would have been...

It represents a decline in the value of assets.

If you buy a car for $10,000 and later sell it for $6,000, did the ''missing'' $4,000 ''go into investors pockets''?

it means that we are speanding way to much money in iraq and that they need to use some of their own money

Just because the perceived value of something went up or down does not mean some actual cash went anywhere.

If ur neighbor is house, which is identical to yours, sold last year for $100,000, u considered the value of ur house to also be $100,000. If ur neighbor is house then sold this year for $50,000, u now consider the value of ur house to be $50,000 also, down $50,000 from last year. However, u did not send $50,000 of cash to anyone because ur house lost value.

no. it doesnt go into investors pockets.
its $1.2 trillion wiped off the value of NASDAQ and Dow Jones listed companies

No, it does not go into anyones pocket. Money does go into peoples pockets when they sell their assets & receive cash. Now if a person sells their stock, or other investment, for less than what they bought it for, then they lose whatever the difference is.

When the Dow dips that means the stock of the companies listed in the DOW have lost value. Which means the stock is selling for less than before. The loss is not actually realized unless a person actually sells. The DOW is just a cuurent measure of prices for all companies listed. So if u do not sell u still have the stock, then u wait until the price of that stock goes up & sell, then u will realize a profit since u sold for more than u paid. That is when money changes hands. It is all just a measure of value of companies, not actual movements of money.

The economy suffers when less products r sold. If demand of a stock goes down then the stock will fall in value; & vice versa. If GDP goes down, then the US economy is not making as much money selling products. The money goes to other places, like sitting in a bank account, it never disappears. The cash is still somewhere.

Most likely the people who will get rich r those who r buying things at really low prices now & holding them for a while until the economy is booming all over & then selling at much higher prices.