This very facile explanation, I try to write a conte.
The word says to have A, b, c, d, e, f, g7 individual, everybody has 100 money, so total money is 700;
One day A built 10 houses with 100 money, every house cost 10 yuan;
Next A sells B and C 2 houses respectively, the price is 20;
At this moment A has 40 to mix 8 houses, b and C have respectively a house mixes 80, someone else is 100.
Paper face value is A200 piece, b and C are 100, someone else 100, gross 800.
At this moment A sees business chance, begin to build situation, say in the near future the typhoon wants to come, can be blown to run without the house, there is very good house price here 30;
B and C a person of foresight, feel the house has a lot of functions, can rise in price, buy 2 again respectively then, someone else still was not moved.
At this moment A has 160 money and 4 houses, b and C have 3 flatlet and 20 money respectively, someone else still did not change 100 pieces.
Paper range wealth is A: 280, b and C part 110, someone else 100, gross 900.
B and C house are in hand, discuss to say to go up again with A bit of price? A has resource at this moment, come to an agreement or understanding, come I spend 10 money to build a school and hospital, bought the person ability enter a school of the room and seek medical advice only.
At this moment B and C also are in go to situation, say to be not bought late, the house wants 100 to go up later, a and we plan to fix a price now 50, everybody is bought quickly.
DEFG does not sit, for the child, for medical treatment, perhaps be worth appreciation to protect, begin to buy a house, a sold two, b and C sold respectively.
At this moment A has 260 money and 2 houses, b and C have 70 to mix respectively 2 houses, DEFG is to 50 are mixed a house;
Paper range wealth is A360 piece, b and C are 170 respectively, someone else 100, gross 1100;
A and B savor benefit, begin to call much room value wantonly, say to did not come here to want to build an international wall, can a lot of people come deal, the house lives not quite for certain, this price is too low now, go up even, it is the price 100 surely directly now.
DEFG by bewitch, but their money is insufficient, then D borrows 50 of E, gross 100 bought a house from B hand.
At this moment A has 260 to mix 2 houses, b has 170 + one flatlet, c70 piece + 2 flatlet, two flatlet of D - owe E50, one flatlet of E + D50 piece debt, f, g50 piece one flatlet.
A460 of paper range wealth piece, b270 piece, c270 piece, DEFG150, gross 1600.
Everybody is mad later, what the house goes up is too fast, f says to be no good, be bungled sell iron to also want to buy a house, borrow B100 piece then, 50 when add oneself, gross 150, bought one flatlet from A hand, at this moment house price is newest clinch a deal valence has been as high as 150.
At this moment A has 410 + 1 room, b70 piece + 100 when F owes + 1 room, c70 piece + 2 rooms, d2 room - external debt owes E50, e1 room + D50 piece debt, f2 room - owe B external debt 100, g50 piece + 1 room.
Paper range wealth: A560 piece, b320 piece, c370 piece, d250 piece, e200 piece, f200 piece, g200 piece, gross 2100.
Can see at this moment, still be those money, still be those houses, but the paper range wealth of everybody had promotion, total money is initiative fortune even 3 times! ! This produced tremendous foam.
Bubble is how undone, we see these 7 people, d and F have room and external debt only, their two economy condition is most weak.
Hypothesis D abrupt disease, need a large sum of Qian Zhi disease, the decision sells a house outside. In the meantime, rumour is passed for A is built the house is jerrily, quality problem frequency is sent, and school hospital does not have chart, the house nots worth this price.
D treats a disease essential, need ready money, at this moment B knew, say to be able to sell a house, but the price cannot so tall, appraise is worth the house of 150, I give you 100 at most, you are looked at do.
D not as good as, after all the order is important, come to an agreement or understanding, sell, at this moment house price fell 100.
Of D and B trade to be not had fine media was announced, everybody discovers the house is not costly suddenly, and still have someone else stir up trouble, say house cost is maximum 10 money. At this moment CEFG is panicky, begin to sell a house eagerly, house price suffer a disastrous decline, drop replied cost price 10 (had not clinched a deal suppose, it is appraise value falls only return 10 money) .
See respective money at this moment again:
A still has 410 + 1 room, b70 piece + 100 when F owes + 1 room, c70 piece + 2 rooms, d2 room - external debt owes E50, e1 room + D50 piece debt, f2 room - owe B external debt 100, g50 piece + 1 room.
Paper range wealth: A420 piece, b180 piece, c90 piece, d-30 piece, e60 piece, f-80 piece, g60 piece, total prices is worth 700.
Bubble is undone, can see A and B make money, c did not have a deficit how many, EF is not bad, still can live, the most miserable is D and F, not only money was done not have, still owe people money, go bankrupt. And if DF goes bankrupt, b also takes the money that is less than F, e also takes the money that is less than D, maintain to death even so.
So, foamy generation, continuously, undone the process that just is fortune move and concentration, everybody can enjoy the addition of paper range wealth possibly, and real total money did not rise.
PS
In this give typical examples, a can be land agent or Govenment, b is the person that fry a room, c is inchoate the person that buy a house, DEFG is us many the masses. . .
