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Global 'Wealth' Destruction - World Market Cap Plunges $13 Trillion To 2 Year Lows
Since the start of June, global equity markets have lost over $13 trillion.
(The last time global market dropped this much - Bernanke unleashed QE2)
World market capitalization has fallen back below $60 trillion for the first time since February 2014 as it appears the world's central planners' print-or-die policy to create wealth (and in some magical thinking - economic growth) has failed - and failed dramatically.
To rub more salt in the wounds of monetray policy mumbo-jumbo, despite endless rate cuts and balance sheet expansion around the world, the last 4 months have seen an 18% collapse - the largest since Lehman.
It appears "Wealth" creation is just as transitory as The Fed thinks every other outlier is.
Charts: Bloomberg
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Thanks Janet. I'm feeling wealthier already. To celebrate I'm going to have an iPhone for dessert to compliment the iPad I'm having for dinner.
You pig.
We don't need no water let the motherfucker burn..... You know the rest....
poverty is the new prosperity. peak new normal.
Poverty is a powerful aphrodesiac:
http://leftfootforward.org/2013/08/prostitution-and-poverty-in-the-uk/
moar paper debt than paper equity, wow, just wunderfull! exceptional.
but who holds all this glorious paper, not i says the pauper...
but i get to help pay...
fuck off money changers/.
How can you blame that poor little ol' lady with that face and that haircut and that lisp? Nobody could have seen this coming. Nobody.
OMG! Paper is melting! Whatever are we going to do?!?!?! PRINT MOAR WEALTH!
Its not all melting. Some are just finding a new home in my inverse funds. I like to think of those dollars as monetary refugees.
We're not talking about actual money here though - so really - what's the point?
As people lose trust in leveraged assets and defaults start to happen there will be a scramble for tangible assets, which includes actual money, gold and silver, the ultimate extinguishers of debt.
Don't forget to buy a bitcoin lottery ticket. Money might get weird.
Dammit! I'm getting ready for bed. I can't play the "worst since Lehman" drinking game right now.
Screw this, print moar and we'll hit the $100 Trillion market cap by Spring
And now the answer to the question of " Why would someone pay that for a painting " come to the surface.
The filthy wealthy are buying expansive art for a reason, wealth preservation. Follow the real money.
Silly me. I thought that it was a way to launder money in a technically acceptable manner.
That only works if you can rely on the fact that the value will be held, which relies on the fact that there will be another filthy wealthy to pay you the price you have paid or more when you want or need to sell. I would not rely on that.
The problem is surely that we have not listened well enough to the IMF. Congress controls its rules so we must trust their wisdom a little more, and everything will be roses. Viva IMF!!!
Heh, that's not wealth but the illusion of.
I'll take Gordon Gekko, Wall St for 500 Alex
They made it before and can make it again. Nobody cares if it is funny money or not, just keep the game going. If the game ends, everyone goes home. None of these people WANT to go home....empty handed.
How can it be "wealth destruction" if it never existed in the first place?
I am assuming by capitalization they mean "price".
If I have an apple worth $0.50 and I raise its price to $10, it is not possible to say that the value of the apple is $10 if no one will buy it.
And so it is with the markets. If the only ones willing to pay the price of the market are the ones who established the price, then there is no market and the pricing mechanism has failed.
I'm buying more. Gotta dollar cost average. I have a long investment horizon.
Oh boy.
Just had to parrot some of the nonsense some friends were recently saying. They know my views, but insist on staying blind. I can't help them at this point.
There are going to be a lot of lemmings losing their skins (again).
Tick tock, tick tock...
Yeah, I have a relative heavily into Apple. I keep telling him to get out from in front of the freight train but......
My best friends ole lady is all "cost average". My sis says "well i'm paying somebody to watch my money". UGHHHHH. I spit data at them til i turn colors and... la la la la la la. Unfortunately some will be folk i care about, what do you do? I try to prepare extra for my family that just doesn't see it. Normalcy bias.
Funny how all that "wealth" can disappear, yet the debt used to create it sticks around...
To paraphrase Mervyn King, wealth is a matter of opinion whereas debt is real.
The wealth has not disappeared, only transferred to another asset class
Debt is written off all the time. It's called bankrupcy.
this article is racist
But...but...but...QE.
Looks like moar cow bell coming from those that have only a hammer.
The Big Print is inching closer.
Given that this is all a Bookie/Casino operation anyway, the only real delta worth measuring, are the REAL assets that have changed ownership, and those which are likely to do so in the 'foreseeable' future.
Lehman? Did somebody say, "Lehman?"
Heard Jim Willie mention Lehman in an interview earlier this evening. He asserted that the Wall Street banks that underwrite the oil hedges and derivatives must be the ones who are being allowed to naked short Treasury paper and get away with it by taking (not taking) Treasury paper to the Fed's repo window for under the table bailouts.
http://www.dtcc.com/charts/daily-total-us-treasury-trade-fails.aspx
Start mp3 @ 12:00 and end @ 16:58.
https://www.trunews.com/tuesday-september-29-2015-jim-willie-pt-1/
We are at the doorstep of financial meltdown.
as long as the filthy rich stay that way, i'm happy to keep giving up my standard of living
If only the whole world sold at the top,the whole world would be partying like its 1299 AD
It's enough to make Yellen belch.
We can make "wealth" with any financial boom, be it in stock markets or housing markets.
2008 showed us the transitory nature of this wealth.
Stock markets are just the same.
The underlying housing stock and companies remain the same, money is just pumped in to artificially inflate prices in company stocks and housing.
The illusion of wealth always reveals itself as the Emperors New Clothes in the long run.
new Silver Eagle orders will not be available until 2016.
http://www.silverdoctors.com/beware-what-if-this-retail-silver-investmen...
if the FED-Dollar collapses, it will be better to have got some silver coins!
all stocks getting worthless. Maybe Mining stocks will survive, but that`s not sure.
Dumb arses. Gold isn't money. It is a commodity. An insurance against government collapse. It isn't money. Let me see you go down to the grocery store and buy $150 worth of groceries with gold. Let me see you pay your taxes with gold coins. Go do it. C'mon big shot, big talker, go do it. Let me know what happens.
All you can do is exchange gold for USD, which IS money. Gold is valued by USD. If you value it by USD, and if you consider it to be money, then it is fiat money too!
Wake up and snap out of it. Come up to present time. Our money is fiat and that is the fact of it.
Paper losses, paper gains. Ever hear of it?
OUR central planners will not be mocked. futes are now GREEN, due largely in part to this frikken article. thanx asshole. /s
Poof . . . and it's gone.
Just a little correction.
Like those shit-and-piss GDP numbers.
Yet the Dow/S&P futures are ramping up. What do all those smart people see that I don't?
Since 2009 of March the world has created 40 TRILLION IN UNJUSTIFIED WEALTH THROUGH THE PRINTING OF FIAT.
Losing 13 Trillion is just a start.
27 Trillion More to go....
we are only 1/3 the way there !!