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US Market Cap has Fallen $5.8 Trillion Since Capital Markets Froze

Posted on October 03, 2008

Last summer, when US capital markets began to freeze up, total market capitalization was $19.1 trillion. US market cap at yesterday s close was $13.3 trillion, a drop of $5.8 trillion over 14 months, roughly $100B billion per week.US Market CapIn previous articles I have likened this capital market freeze to a blackout, much like the failure of an electricity grid following a major storm. In a blackout, the electricity network fails to transmit electricity to the end users. In a capital market blackout, asset prices no longer transmit information about risk and return to end users the inve...

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commodity , deflation , gdp , inflation , money supply