This experiment was carried out using the interconnected network of aggregated markets of the USA economy, and the ecoonmic data of the most important markets (sales of merchandise and services, financial markets and labor market).
Money is only information, which only flows within the economic system, because it is specific for that system. The mathematical demonstration of this affirmation is in the economic laws of money circulation (see article in this blog).
The fast lost of 200 billions of dollars in deposits made from mortgage sales is multiplied 6.24 times (statistical average of 2005) by the effect of fractional deposits, which generated a total loss of 1,480 B$$ in deposits. When this loss is introduced in the total money circulation of the national markets network of 2005 (the last available), it was possible to calculate the changes in money circulation created in 1-2 years by the inertial effect of those losses (not a forecast):
1- Sales fall in all aggregated markets, which generates an immediate reduction of 0.9% in annual money circulation.
2- Then as a consequence of the increase of Demand and reduction of the Offer:
a. Lost of 30% in the average sale prices.
b. Reduction of 2.3% in the circulation of merchandise and services.
c. Diminishing of 4.7% in the employed workers (6.9 Mill.).
3-If prices don't fall, the reduction of money circulation will increase up to 3.4%, and the physical circulation of merchandise and services will reach a decrease of 7%.
The lack of information of honest buyers and sellers and deliberate missinformation explain that noise. There is no data to clarify how much were deliberate. The system “burns” more than 1,000 Billion dollars when their property (information) disappears.
If you still aren’t sure that moral patterns are of tantamaunt importance also for the economy, please, read the whole article in this blog.