45% world's wealth destroyed

[Eliot Hosewater]

How's that PPIP coming along Timmie?

Quote from wildfirepow:
U.S. Treasury Secretary Timothy Geithner plans to unfreeze credit markets through a new program that will combine public and private capital in a fund that would buy bank toxic assets of up to $1 trillion.

"In all likelihood, that will have the private sector buy troubled assets to clean the banks out in terms of providing leverage ... so that we can get more money back into the banking system," Schwarzman said.

He expects the private sector to end up making "some good money doing that," but added there were complex issues on how to price toxic assets.

The "complex issue" is how do you get someone to pay 90 cents on the dollars for something that the market says it will buy for 10 cents on the dollar. The private sector will make "good money" only at the expense of the taxpayers.

 

[Landis82]

Quote from wildfirepow:

World economy was worth $1600 Trillion (estimated). Now 45% wealth has been destroyed.

This means world economy has suffered losses of $750 Trillion.

You mean 8 years of George Bush destroyed wealth?

Oh My!
Shocker.

 

[syswizard]

Quote from wildfirepow:

Another 45% wealth will be destroyed due to this increase of prices.

People who have money will invest now and another 45% wealth will be destroyed

Yep, I'm expecting the final number at the nadir to be about 80% loss - peak to trough. Should happen early 2010.

My father-in-law was down 50% with his retirement fund. Now he's "only" down 25%. I told him to bail out completely with this big rally. He looked at me funny and said I want to get back to even. I told him that won't happen even after my daughter is a grandmother. He just walked away.

 

[makloda]

Quote from syswizard:My father-in-law was down 50% with his retirement fund. Now he's "only" down 25%. I told him to bail out completely with this big rally. He looked at me funny and said I want to get back to even. I told him that won't happen even after my daughter is a grandmother. He just walked away.

haha Classic! The human brain is wired against taking losses and wants to get back to break even, even if that means holding on and adding to losing positions indefinitely.

 

[DataCruncher]

FYI the article posted by the OP was published on March 10th

 

[syswizard]

Quote from makloda:

haha Classic! The human brain is wired against taking losses and wants to get back to break even, even if that means holding on and adding to losing positions indefinitely.

That's right Makloda, these retirees are expecting Obama to "make them right" as far as their stock accounts go.
They are in for a HUGE disappointment.

 

[wildfirepow]

Worldwide forex transactions are worth $3 Trillion per day.

World stock markets are worth $40 Trillion (estimated).

 

[Debaser82]

Quote from syswizard:

Yep, I'm expecting the final number at the nadir to be about 80% loss - peak to trough. Should happen early 2010.

My father-in-law was down 50% with his retirement fund. Now he's "only" down 25%. I told him to bail out completely with this big rally. He looked at me funny and said I want to get back to even. I told him that won't happen even after my daughter is a grandmother. He just walked away.

Why can't the DOW go to 14000

 

[crgarcia]

Quote from Nattdog:

this is bogus. perhaps 45% of the worlds bubble, paper wealth has been destroyed. When a bubble blows up the realization is NOT that all that wealth was destroyed, but rather that it never existed to begin with.

For example I put in a 20k share order in a thin 10 dollar stock that bids it up 1 a point... Did i REALLY just increase the value of the company 10%? OF course not. It is a short term bubble.

That is what happened to our entire paper economy but on a grand scale, and the bogus money bidding everything up was excessive leverage created by our funny money system.

Guys like schwartzman and the others who are right near the spigot of paper wealth creation were the ones best able to cash in. These Guys use the system to EXPROPRIATE wealth from others, they do not create wealth.

The worlds real wealth is not all that different. We realize now NOT that we have lost so much, but rather that we were deluded into thinking "we" ever had that much to begin with.

101+!

 

[jueco2005]

NOT DESTROYED.............BUT TRANSFERRED UPSTAIRS.