Where Did That $10 Trillion Go?

Scary economic news. This report says, “Wall Street in on track for its worst year since 1931, and that $10 trillion has been lost in the market — since its peak in October, 2007….The Dow Jones industrial average plunged 5.1 percent and closed below the 8,000 mark for the first time since March 2003. The market is now down 43.5 percent from a high point hit a little more than a year ago.”

Deflation is the latest fear that is depressing the market. The New York Times says, “While most consumers might welcome the idea that things are getting cheaper, deflation is an economists’ nightmare. It was a hallmark of the Depression and Japan’s so-called lost decade in the 1990s …Analysts say a sustained decline in consumer prices would be terrible for the economy. Businesses that cut prices to attract buyers are likely to have to lay off workers as well. They may also have little left over to pay lenders or shareholders. … Prices are falling outside the United States too. Consumer prices declined in Britain, France, Germany and elsewhere in Europe in October, and prices were flat in September in Japan, which has fought deflation on and off for nearly two decades. “

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One Response to Where Did That $10 Trillion Go?

  1. Daniel D says:

    You aren’t answering the question, where did the money go?.” I am wondering where we used the money at and who/what country the 10 trillion dollars went to.

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