45 Percent of World's Wealth Destroyed....Blackstone

L

libertad

http://globaleconomicanalysis.blogspot.com/


45 Percent of World's Wealth Destroyed

The CEO of Blackstone says 45 percent of world's wealth destroyed.

"Between 40 and 45 percent of the world's wealth has been destroyed in little less than a year and a half," Schwarzman told an audience at the Japan Society. "This is absolutely unprecedented in our lifetime."

Schwarzman said problems were then exacerbated by mark-to-market accounting rules. Those rules ask banks and other financial institutions to price assets at a value related to how they would be sold in the open market.
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Once upon a time there was a $100 Trillion market....

$45 Trillion was eliminated....
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Thus all prices must adjust accordingly....or much less will be sold....
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Printing money will be very attractive to politicos worldwide....but will only redistribute the wealth that is left....
 
"Globalist (wealth transfer) Games 2008/2009!"

Consolidation of financial assets, wealth, and financial grid power to a more "centralized" entity going forward.......ENJOY! :mad:
 
Some lost real wealth, but most lost paper wealth that was grossly over valued because of insane leverage in the markets. Great for those that booked those gains, but this is basically a useless topic.
 
What really should be happening from a govt. policy point of view is to pose regulations such that "real wealth" valuations can quickly get back on the books....

ie An entrepreneurial company which utilized $10 million evolved into a 12x earnings valuation which reflected a 12x value of the capital employed....

The world needs tons of these companies....

If the US wants tons of these companies ....then policies must be formed such that the US is the best place to be....
 
Quote from libertad:

Schwarzman said problems were then exacerbated by mark-to-market accounting rules. Those rules ask banks and other financial institutions to price assets at a value related to how they would be sold in the open market.
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he is a fucking politician and a liar. mark to market is a good thing, not a bad thing. he doesn't want his investments to be marked to market because doing so will force him expose his funds' bogus returns. it would show the world that his portfolio companies don't have anywhere near the value that he claims they have when he reports returns to investors.

if you guys think the cdo/cds and ponzi scheme hedge funds are bad, then wait until the entire private equity industry is exposed.
 
Quote from CET:

Some lost real wealth, but most lost paper wealth that was grossly over valued because of insane leverage in the markets. Great for those that booked those gains, but this is basically a useless topic.
More...

ABSOLUTELY!!!

The homes that plunged in value - how have they changed? Did they lose 45% of their roof, walls, lawn and basement? or do they look the same as before?
 
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