Re: Dogma question:
It may be imaginary money, but it is real capital in the since that his asset base has been crippled (and the asset base of the entire nation has been crippled), and as such, he's/our ability to raise new capital through the use of leverage (borrowing) is diminished.
Yes, the money vanishes into thin air.
The options and futures markets are a zero-sum game, but the stock market is not a zero-sum game.
Scott