Wednesday, April 1, 2009
Head up, eyes forward, this too shall pass
This chart from Bloomberg is of the total value of world stock market capitalization. This means the value of each share of stock of every public company added all together. The high was 10/31/2007 at 62.6 Trillion dollars and the low on 03/09/2009 was 25.6 Trillion dollars. This is a loss of 37 Trillion dollars of value in a year and a half. Assuming roughly 5 billion people on the planet that is $7000 per person, a staggering sum of money and financial damage. The markets have to bounce back from the lows by 150% to get back to the highs. That isn't going to happen quickly. But it will happen if Obama and Congress can avoid throwing the baby out with the bathwater.