Asia excluding Japan probably lost about $9.6 trillion, while the Latin American region saw the value of financial assets drop by about $2.1 trillion, said Claudio Loser, a former International Monetary Fund director and the author of the report that was commissioned by the ADB. The report didn’t give a breakdown of asset declines in other regions.
“The loss of financial wealth is enormous, and the consequences for the economies of the world will unfortunately commensurate,” said Loser, now the Latin American president of strategic advisory firm Centennial Group Inc.. “There are serious economic and political stumbling blocks that may well cause the recovery to be costly and slow to consolidate.” (continue reading the article here)A fair share of the loss was wealth destruction that occurred here in the U.S., which we will have a figure for when the Federal Reserve releases it Flow of Funds data on March 12, 2009. Already, though, U.S. household net worth had fallen $7.1 trillion from its peak in Q3 2007 through Q3 2008. In Q4 2008, home values were slashed 3.4% (according to OFHEO) and the S%P was down 23% on the quarter; both suggest that net worth might be down another $5-6 trillion in Q4 2008, but we will see.