How do you replace that kind of money in the economy?
There isn't really anyone left to borrow from. Just printing up the money creates other huge problems.
If we don't recapitalize the markets soon, the entire economy grinds to a screeching halt. I've never been an alarmist before, but this is the most serious financial crisis I have ever seen in my lifetime.
It does not have to be replaced. It is a paper loss and will recoup over time. Always has, always will. Using those numbers, we are down 5 TLN (15 TLN globally) this year. The market routinely “creates and destroys” 100’s of billions a day. It’s not real wealth until you take it out of the market.
In 2001 there was a huge decrease in the market also. The loss was a paper loss and only became a real loss if you sold at that time.
If you held your position you eventually recovered excepting the Enron, World Com, crap that we had to endure.
This situation is very much like 2001 only with bigger numbers and compounded by the swaps.
It will work out as well but may take longer. I would also point out the loss today while larger in abosolute numbers was smaller on a percentage basis.
Take a deep breath and sit still. If you were really concerned you would have liquidated at least a year ago and taken delivery of gold or silver. Unless you took that action the best thing is to continue to sit still.