|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.