How much real money did we lose in the crash?

[uscitizen]

And how much of the loss was just vastly overinflated "values" of junk derivitives and such?

IMHO no unregulated securities should be allowed to be used as collateral for regulated items.

 

[Gunny]

And how much of the loss was just vastly overinflated "values" of junk derivitives and such?

IMHO no unregulated securities should be allowed to be used as collateral for regulated items.

Did you miss that first thread stickied above this one? What does it say?

 

[eagleseven]

And how much of the loss was just vastly overinflated "values" of junk derivitives and such?

IMHO no unregulated securities should be allowed to be used as collateral for regulated items.

In a fiat system, no money is real. We have lost genuine economic activity in this recession, however.

 

[Neubarth]

If there were derivatives that covered the retreating stockmarket all the way to the March bottom, then no money was lost, it just changed hands into the hands of those who got the payoff on the derivative short position.

Otherwise, I have heard people say that twelve Trillion was lost in the stock market alone. I do not know if that was around the globe or just in the US, but I do know that it was a hell of a lot of money. Add to that the losses realized in real estate both residential and commercial and the money lost in bonds for those companies going belly up, and we are looking at one hell of a loss. No government spending program can make it up.

 

[uscitizen]

With myself and stock I do not consider having any gain or loss till I sell it and have the money in my account. Up till then it is just speculation.

 

[mayya555]

And how much of the loss was just vastly overinflated "values" of junk derivitives and such?

IMHO no unregulated securities should be allowed to be used as collateral for regulated items.

In a fiat system, no money is real. We have lost genuine economic activity in this recession, however.

The problem is that money nowadays have no real cover - as for instance based on the gold standard. Therefore realizing what is the real value of USD or euro and have much one loses/gains is impossible IMHO.

 

[☭proletarian☭]

Does anyone know of a resource that tracks the estimated real wealth of the nation and the estimated real (marketable) wealth of the average household/family/person?

 

[william the wie]

Does anyone know of a resource that tracks the estimated real wealth of the nation and the estimated real (marketable) wealth of the average household/family/person?

The Chinese are using a market basket of metals, precious metals are also used but nothing really works well. Gold, silver and copper are the best of a very bad lot. Therefore your questions are essentially meaningless.

 

[☭proletarian☭]

Since I have no idea who the fuck you are, I'll wait for someone like Eagleseven to post. Or for you to cite some sources.

 

[eagleseven]

Since I have no idea who the fuck you are, I'll wait for someone like Eagleseven to post. Or for you to cite some sources.

Now I am obligated to respond, right?

Measuring the Wealth of Nations is no small feat, especially considering the international nature of commerce. At best, you can only attempt to estimate the total value inside a given political entity.

The estimate I most trust, and is least biased IMO, is total net worth, in inflation-adjusted dollars. This allows you to make comparisons between the present and the past, and between different countries.

It's also very good to distinguish between net worth (assets-liabilities) and GDP (income) of a nation.

I pulled this graph from a site (as listed), but I think you'll find it's consistent.


If you have the time, you can pour through the numbers in the Fed's Flow of Funds report. I'm too busy drinking tonight to crunch numbers!