An asset bubble story

In other words, there is a small country with a total population of three people and a currency flow of two US dollars (only two coins with a nominal value of one US dollar ).
Of the three residents, a owns a piece of land, and B and C each own 1 USD.
Now, B decides to buy the land of a with $1 in his hand. As a result, Party A and Party C each have $1, while Party B owns the land worth $1.
Then, the net assets of this country are 3 USD.
C: This is the only land in China. It is a non-renewable resource, and its value will definitely rise. As a result, Bing borrowed one dollar from Jia and added his own one dollar to buy the land from B at a price of two dollars. Now:
A has $1 (lent to C) and his net assets are $1.
B sold the land for $2 and his net assets were $2.
C owns the land, worth $2, and has a debt of $1 to A, so his net assets are $1.
Then, the net assets of this country are 4 USD.
A found that his land was constantly increasing in value, and he regretted it. Fortunately, C owes us $1 in debt to Party A, and Party A borrows US $2 from Party B to pay US $3 (US $2 in cash to offset US $1 in debt) I bought the land again. Now:
A owns the land and has a value of 3 US dollars. At the same time, it has a debt of 2 US dollars to B. Therefore, a's net assets are 1 US dollars.
B owns $2 (lent to a) and his net assets are $2.
C now has $2 in cash and his net assets are $2.
Now, the net assets in this country are $5.
B believes that there is still room for appreciation of the land, and he wants to regain ownership of the land. Therefore, B bought the land from a's hand at a price of 4 US dollars (he borrowed 2 US dollars in cash from C, ). The result is:
A paid off the $2 debt and received another $2 in cash. Now his net assets are $2.
B owns the land and is worth 4 US dollars. Because B still owes 2 US dollars to C's debt, his net assets are 2 US dollars.
C owns $2 (lent to B), so his net assets are also $2.
So, the country's net assets are now up to $6, but it is still only the original land and 2 dollars of currency in circulation.
Now, all three have made a lot of money. The national people are all happy, and the economic situation seems to flourish and flourish.
Suddenly one day, I don't know where to get a bad wind. Bing began to think about a bad idea. He was thinking: "The currency in circulation is only two US dollars. If the land price does not rise any more, how can I pay back my loan? But in my opinion, the land owned by B is worth at most $1 !"
As a result, no one is willing to purchase the land. The result is:
A has $2 in cash and his net assets are $2.
B owes $2 to C, but there is still a piece of land. He thinks the value of the land is $4, but it has actually dropped to $1. So his net assets turned into a negative dollar of 1.
C has $2 (lent to B) and his net assets are $2. However, the $2 debt has become a bad debt, so Bing will feel uneasy all day long.
Now, the country's net assets have changed from $6 to $3 at the most.
So how did the three-dollar net assets evaporate?
Before the bubble breaks down, B thought that his land value was 4 US dollars. Therefore, the calculated net assets of 6 US dollars and his personal net assets of 2 US dollars are only on the books. Therefore, even when the economy is the most prosperous, Party B is still in the dark.
Now, Party B has no choice but to declare bankruptcy. C took back the dollar-worth land in B's hand, and B's $2 debt to him had been completely broken. The result is:
A has $2 in cash and his net assets are $2.
B has gone bankrupt and its net assets are zero.
That piece of land worth $1 is in the hands of C. (He lost $1 .)
Now, the country's net assets are still 3 USD.
　　　　　　
[End: the end of the story]
　　　　　　
　　　　　　
Nationwide assets were re-allocated. Among them, Party A is the big winner, Party B is the big loser, and Party B is spared.
　　　　　　　　
[Summary: several issues worth attention]
　　　　　　
1. When the bubble begins to emerge, debt between individuals also arises.
2. The economy of the projectile country is a closed system without the participation of foreign economies. Therefore, there will be no external debts, and the value of its net assets can only be calculated using its own currency. Therefore, the country's net assets are not lost.
3. After the bubble burst, we need to assume a bottom line of shrinking value, that is, the value of the land will not be less than $1.
4. After the bubble burst, the person with cash was the biggest winner, and the person with land and lending were the biggest losers. Their net assets may shrink and, if worse, they will go bankrupt.
5. if another resident, ding, had $1 or another piece of land in his hand and refused to participate in the game, the result would be that he would neither make profits nor lose anything. However, he will find that the value of the dollar or land he owns will continue to rise and fall like the tide in the course of others' games.
6. In the growth phase of the bubble, everyone involved in the game can make money.
7. During the growth of the bubble, smart people (like Jia) will borrow money to participate in the game. But you must take a good time to take the shot and turn the real object into cash in time.
8. In addition to land, the above principles also apply to the stock market.
　　　　　　　　
[Warning: the actual value of land or stock depends largely on the psychology of people .]