[jasonraymondson]

The money doesn't just disapear. So who makes out like mad when the stocks crash?

[Denny]

Well, short sellers make out, thsoe who borrow stock to sell and then "buy to cover" latger at a lower price.

But, that is only a part. I think the reality is that most can lose when stock prices drop. Think of the stock market as a casino, in which betters have bid up the odds of certain events. It works fine as long as new money keeps coming in, to increase the money bet. But, when people start selling out their positions and new people don't arrive too often then the money comes off the table.

That is what happens too in the stock market. Or the real estate market. When real estate prices go up, nobody thinks that somebody had to lose so come could make money, and vice versa, people in general can lose when prices fall as the market is out of favor.

I guess the only sure "losers" in the stock market are those who sell decent stocks at a bad price, they should hang on, if the company is decent. But, emotions get in the way.