The numbers of people who sell the stock early and get a lot of cash are quite small and more often than not well connected. It's sitting somewhere or buying out companies or being used for bonuses etc. With individual investors it might be used for long-term repairs and purchases. There's no reason to put it in banks with near 0% interest. Unless you have illegal insider information, putting it in the stock market is risky.
I hypothesize from discussion threads on FR and some other stuff I've read that a whole lot of people have an increased stash hidden somewhere. The can't meet the demand sale of Silver Eagles is one indicator that might be the case.
Because you are being thick headed and condescending.
The numbers of people who sell the stock early and get a lot of cash are quite small and more often than not well connected.
That is not what I said. If I buy a stock for $100 a share and it loses $60 in value when I sell it, I still have $40. I still have cash to invest that will increase demand for something else. Got it now?