Now the wealth destruction is advancing on two fronts. Equity shareholders are wiped out as financial shares plummet. Meanwhile, assets are being revalued or in some cases, written off. Bondholders will be next. Here in Australia the credit noose tightened on the economy last month. Gasp. The Australian Bureau of Statistics reported that total lending finance fell by a seasonally adjusted 13.3% in May.
July 15th, 2008 | Dan Denning | 5 comments | ContinuedAll Posts Tagged With: "financial assets"
The Supply Theory of Money is Simple Enough
Right now, a lot of money is disappearing. House prices are falling. Stocks all over the world are going down. Many financial assets - specialized derivative contracts and junk bonds - are getting hammered. The amounts of “implied” wealth lost are enormous. Worldwide stock market capitalization may be down about $5 trillion.
March 20th, 2008 | Bill Bonner | 1 comment | Continued