I guess I can see this in terms of housing. When prices dropped from a million to a half million, I as a potential buyer had more potential money available, right. Instead of putting x down and having a y payment I only put 1/2 x down and have a 1/2 y payment to make. I have a lot more money …. But only theoretically in the future and only if I buy. What about when stock or housing markets plummet and become relatively illiquid? Isn’t wealth destroyed then. There may not always be a buyer. A whole suburb could become unsaleable… Or maybe just too much housing
