Today, Greenspan said that the mortgage crisis may ultimately cost between $200 and $400 billion. Lest you think that is a lot of money, he said that total "hedgeable [sic.] assets" worldwide are about $100 trillion.
So, the mortgage problem is big in absolute terms, but it would be the equivalent of writing down 2/10ths of one percent of worldwide assets. Given that my portfolio has seemed to move by about 2% every day of this year, I'm going to assume that the world economy can absorb a hit of this magnitude.
Some people say that to be truly rich is to love what you do. Me? I say that to be truly rich is to shrug off a $400 billion loss. I don't mean to brag, but I suddenly feel pretty flush.
3 comments:
Glad someone's feeling flush this time of year. Between the presents and the snow which translates into plowing fees and the cold which translates into heating bills, I'm feeling just the opposite. Somehow, I don't see my particular situation as having anything to do with our nation's fiscal situation.
ah, cce, as you grow older you'll learn how to more easily embrace life's little delusions. Repeat after me. "Well, it's not so bad. At least I'm not down $400 billion."
On a serious note, I heard about your blizzard and didn't even think about the extra costs. Sorry.
My money flow is a constant and merely eaten away by inflation and decisions to bale out people who can't manage their own finances but I'm probably not affected that much so I'm with you Ron. I feel great. Besides, it's a pittance compared to defense dollars spent for bailing out people who can't manage their own country.
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