Ever since the credit crunch surfaced in late 2007, there has been a dramatic fall in the prices of financial assets amounting to a total wealth erosion of $28 trillion across the world, economic forecasting consultancy Oxford Economics has said.
Oxford Economics estimates that the “total financial wealth has fallen some $28 trillion, or 14 per cent, from its peak. In absolute terms, this has taken wealth back to the level prevailing in third quarter of 2006.”
However, the losses this time were rapid and much larger than seen when the dotcom bubble burst in 2000-02, it added.
In the US, financial wealth losses were huge at $8.1 trillion, thanks to the six consecutive quarters of declining financial wealth.
Substantial losses also occurred in the Eurozone and in emerging markets. “Wealth losses in both these areas have totalled around $11 trillion, equivalent to closer to 20 per cent of total financial wealth,” the Oxford Economics report said. - Economic Times.
Though the losses are less in compared to the fallen market caps of several markets. Its says the total financial wealth has fallen some $28 trillion, or 14 per cent, from its peak. But see several economies which have plunged into negative growth and also several other emerging markets which witnessed 60% fall in the market cap and index. This may be due to those markets rose like to new highs very fast during Mid 2007 and even till end 2007.
The question which next remains is that how much more are we ought to loose ?