Global Crisis Destroys 40% of World Wealth; Bailout to Hit $4 Trillion

[rhonda15]

The past five quarters have seen 40pc of the world's wealth destroyed and business leaders expect the global economic crisis can only get worse.

Steve Schwarzman, chairman of private equity giant Blackstone, said an "almost incomprehensible" amount of cash had evaporated since the financial crisis took hold.

"Business will be very different," he added.

Murray Rothbard vs. Tim Geithner

Inquiring minds are considering a 1984 classic by Murray Rothbard entitled Wall Street, Banks, and American Foreign Policy.

Commercial bankers, engaged as they are in unsound fractional reserve credit, are, in the free market, always teetering on the edge of bankruptcy. Hence they are always reaching for government aid and bailout.

My friend "BC" just pinged me with ... The banksters hold the marked cards, the politicians are the dealer, and the taxpayers are the patsy in this game. Of course the banks are not just 'teetering' anymore. They have actually gone bankrupt.

Mish's Global Economic Trend Analysis: Global Crisis Destroys 40% of World Wealth; Bailout to Hit $4 Trillion

There just HAS to be a better way of keeping the wheels of modern global commerce moving along other than the current corrupt casino-like banking system.

[SPN]

If you had titled it "Cowen responsible for wiping out 40% of world's wealth" you'd have got more traction.

[Lthse]

The past five quarters have seen 40pc of the world's wealth destroyed and business leaders expect the global economic crisis can only get worse.

Steve Schwarzman, chairman of private equity giant Blackstone, said an "almost incomprehensible" amount of cash had evaporated since the financial crisis took hold.

I think this is the real deception because no money has evaporated, it's just been consolidated into the hands of the minority at the top.

[20000miles]

It's important to realise that no capital or consumer goods have actually been destroyed. Our productive capacity has not changed. There's a simple reason all that wealth is gone... it was phoney to begin with.

Rhonda, its also good to hear Murray Rothbard mentioned around here by someone other than me!

[rhonda15]

It's important to realise that no capital or consumer goods have actually been destroyed. Our productive capacity has not changed. There's a simple reason all that wealth is gone... it was phoney to begin with.

Rhonda, its also good to hear Murray Rothbard mentioned around here by someone other than me!

"it was phoney to begin with" - how true!

[SPN]

I think this is the real deception because no money has evaporated, it's just been consolidated into the hands of the minority at the top.

Incorrect. It never existed.

I have a house. It cost 100k to build.

You have a house next door. It cost 100k to build.

You sell your house in 2006 for 500k.

My house was now worth 500k.

I want to sell my house in 2009. I'll be lucky to get 150k

There's 700k in losses and I haven't left my Garden.

[Lthse]

Incorrect. It never existed.

I have a house. It cost 100k to build.

You have a house next door. It cost 100k to build.

You sell your house in 2006 for 500k.

My house was now worth 500k.

I want to sell my house in 2009. I'll be lucky to get 150k

There's 700k in losses and I haven't left my Garden.

Not true, you have lost 700K of 'wealth' but 700K Euros has not evaporated.

[ibis]

It's important to realise that no capital or consumer goods have actually been destroyed. Our productive capacity has not changed. There's a simple reason all that wealth is gone... it was phoney to begin with.

Yes - it would be fairer to say that the paper value of the world's assets has been knocked down by 40%.

[Outlander]

All that is gone is the belief in the existance of the money.

Credit - Credo - I Believe

[rhonda15]

We are not going to belabor this point but it is deadly important. Private equity investors and professionals are pulling their money out of banks. A professional run on banks has begun.

International Forecaster January 2009 (#7) - Gold, Silver, Economy + More

*Gulp*