Dear Pundits:

Please bring me to reason with this stupid question

Where are the LOST BILLIONS gone??

If I give you hundred dollars with the clause that you return me hundred and ten, and you cheat me and give me nothing, I have a loss and write down my hundred, but you have a gain of hundred.

And if the money is for a common business this business loses nothing. Right?

So, who gained the billions lost by US (and WORLD) banks (the millions for executives are drops in the ocean)?

Why the USA (or the WORLD to that matter) economy is suffering?

On the other hand:

If I have a sudden gain of hundred dollars in my fund and next - a loss of this hundred because of the Market swings, can I write down this hundred as a loss?

Is such a PAPER loss somewhat alike to the banks’ losses of billions, and, if YES, are they justified?

With sincere thanks for attention

01.16.08