Reuters reports that US households lost $11.2T in wealth… correct me if I am wrong but isn’t that roughly the same amount that we are now on tap for in the bailout? (read the Reuters article here) Now this is probably coincidence… but the symmetry is startling.
Nevertheless… when $11T is in play, one cannot be too careful. I just find it odd that the very same amount that we had to inject into the financial system winds up being the amount we lost. What’s more, we paid up with future dollars in the form of taxes so we can essentially double the amount.
I know that in the capital markets, there is a loser for every winner. Perhaps, just perhaps, we – the American taxpayer/consumer have just been taken in the greatest robbery trade in the history of the world?