After a record-setting end to 2013, global markets are now in steep decline. Bloomberg News is reporting a retreat that started in emerging markets has since spread to developed countries and erased $3 trillion from global equity values. Whether we are living in a bull market or not, experts say the threat posed by emerging markets is the greatest they've seen in more than a decade and declines may worsen.
“Nobody is telling you what's really happening right now, and what's happening right now is really, really significant,” Glenn said on radio this morning. “In 2008, our crash destroyed $1.8 trillion of wealth [in America in the first quarter]. What's been happening in the last couple of weeks has destroyed globally $3 trillion of wealth.”
While the $3 trillion figure is not nearly as staggering as the $14 trillion lost globally in the 2008 crash, the lack of coverage of these losses is notable.
“Here's the intriguing thing, scary thing. There's no one saying that this is over. They are saying this is the beginning, and they are calling it just a correction. But I don't think anybody called the panic of 2008 a correction," Glenn concluded. "And now you know why all the banks are putting in those [regulations] –get your money out because if you are dropping 20% and it's not even a story. Why do you think it isn't a story? Seriously, why is that not a story? How much money have you lost… And how much more money are you going to lose as we go down this path? And we are just at the beginning of it.”
Read the Bloomberg News report HERE.
Front page image courtesy of the AP