Where did the other dollar go, Jeff?

Re:Where did the other dollar go, Jeff? by bartkappenburg on Wednesday April 28, 2021 @03:39PM (#26973223)

Hence the existence of a clearing house in the stockmarket: cross off debt and credit in the whole market. Every one in your story has 100 credit and 100 debt which makes them worth 0. Aligning that in the right way makes a lot of sense :-)

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Re:Where did the other dollar go, Jeff? by cgb223 on Wednesday April 28, 2021 @04:42PM (#26973938)

This is a brilliant explanation of what a clearinghouse does

First time I’ve understood it intuitively

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Re:Where did the other dollar go, Jeff? by zanybear on Wednesday April 28, 2021 @06:32PM (#26975093)

Interestingly, the scenario does not include transaction costs. In the general sense that is money that stays in the cycle (economy) ?

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