Deflation - Biggest Sea Change of Our Lifetime
Source Money and Markets
Date 08/12/22/20:09

FIRST quarter 2007: Every single wealth sector is still growing, except one real estate. This $53 billion loss in real estate is a time and place that will go down in history as the great turning point of our era.

Second quarter 2007: Another $190 billion in real estate wealth destroyed.

Third quarter 2007: Households suffer a whopping $496 billion in losses nearly 10 times as much as in the first quarter.

Fourth quarter 2007: The wealth destruction spreads to nearly all other sectors. Households lose $708 billion in real estate, the most in history. Plus, they lose $377 billion in stocks, $145 billion in mutual funds, $265 billion in their life insurance and pension reserves.

First quarter 2008: The carnage deepens. Households lose $911 billion in stocks, $297 billion in mutual funds and $832 billion in insurance and pension fund reserves. Plus, the losses spread to the last major sector, equity in noncorporate businesses.

Second quarter 2008: The Bush economic stimulus package kicks in, and it slows down the pace a bit. But the hemorrhaging continues. Not one single sector recovers.

Third quarter 2008: Earth-shattering losses across the board, with households losing ...

1. ANOTHER $647 billion in real estate

2. $922 billion in corporate equities

3. $523 billion in mutual funds

4. $653 billion in insurance and pension fund reserves

5. $128 billion in noncorporate businesses

Grand total: Nearly $2.9 trillion in losses the worst in recorded history.

Grand total lost over the past year: $7.2 trillion.

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