wealth can be destroyed when entities default - just as you hint.
wealth could have been transferred today if people were allowed to short securities, but what actually happened to many was the realization of losses on the books of the finance industry - at least those who bought for the short term.
but you also have wealth being transferred to those who have been holding stock for several years (long term) and watched them wildly appreciate over the past 5 years, and started selling in the past 2 weeks when they realized the bubble has burst.
the point is that there is quite a bit ($1.2 trillion) less wealth in the world today than there was yesterday. There are a lot of clueless folks who think when 1.2 tril is lost, someone else made 1.2 tril. It's possible a few people made money today, but the losses greatly outweighed any gains (short-selling, puts, etc).
wealth could have been transferred today if people were allowed to short securities, but what actually happened to many was the realization of losses on the books of the finance industry - at least those who bought for the short term.
but you also have wealth being transferred to those who have been holding stock for several years (long term) and watched them wildly appreciate over the past 5 years, and started selling in the past 2 weeks when they realized the bubble has burst.