For example, you buy a car and a house thinking you can finance it from the returns you get from your $20 million investment.
Now you cannot pay for your car and your house, since you now have 10c paper instead of the stream of cash flows. (The $20 million shares can also act as collateral to finance car/house) Now if you cannot pay for the car and the house, the person who sold you the car/house is at a loss. ^^^^^ CB; Isn't most of the money "won or lost" in these huge transactions not used for personal consumption ?
