The money can’t just disappear of the face of the earth- it has to go somewhere- so there should be some sort of support for asset prices.
It sure can, especially if it wasn’t there in the first place!
Think of it like a new credit card with a 10k credit line. You are happily charging away one day when the creditor suddenly lowers your limit to 5k and raises your interest. From your perspective that 5k of credit did ‘disappear’ and your spending is now severely limited.
Or consider someone holding a supposed 600k house that they can only sell for 400k. Where did the extra 200k go? Same place it came from, thin air.
