ADB: $50 trillion wiped off world financial assets

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Manila, the Philippines: The global crisis wiped a staggering $50 trillion off the value of financial assets last year including $9.6 trillion of losses in developing Asia alone, the Asian Development Bank said Monday.
more here news.in.msn

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now lets see....

1 million = 10,00,000

1 billion (million x 1000) = 1000000000

1 trillion (billion x 1000) = 1000000000000

i.e. 1 x 10^12
now 1 USD $ = Rs.51.86 ~ Rs.52.

hence we get

52 x 10^12

i.e. 52 followed by 12 zeros

i.e. 52000000000000

now it needs great concentration to calculate in crores ...just a minute ...
Rs. 52,00,000 CRORES
Thats a freaking Fifty Two Lakhs Crores Rupees ONLY.:rofl:
I wonder how much would it will weigh if all this was in Rs.100 Notes.:huh:
 
I was just wondering, How does one lose money? There must have been some conversion ....someone who must have made some money when all have lost it.
 
That's the catch.

In simple laymen's terms... There are two forms of money in the market. The hard cash and the virtual cash. The virtual cash is always > the hard cash. In any form of market in any economy. Something we all refer to as taking risks. Now in this period of crisis everybody who had the major chuck of hard cash is saving it for himself. So the virtual cash has gone down considerably. And that's where we see such a huge recession.

Simply speaking a a single Rs 500 note is worth Rs 5000 as long as it keeps traveling in different hands. As soon as you start storing it the market has lost Rs 5000 instead of Rs 500. Hopefully it made sense to you.
 
^ Exactly. It was only the virtual - artificially generated cash that got wiped out. Some say it is a good start to a new beginning - a new economy fuelled less by credit will emerge.
 
SharekhaN said:
I was just wondering, How does one lose money? There must have been some conversion ....someone who must have made some money when all have lost it.
Click to expand...

As explained above the loans earlier were worth the soft cash value of say Rs.100 and after the housing market collapse the guy who took the loan got fired and can not pay that Rs.100 and so he goes bankrupt and bank says we will auction the house which you got for Rs.50(usually after interest the value goes to double the principal originally taken), but bank gets only Rs.5 in the auction. So not only did the bank lose the Rs.50 interest but also part of the principal. Who gained? The person who bought for Rs.5 but only in the long run and not the whole amount since the market was inflated in the first place. In the short term the bank's balance sheets are screwed not to mention the guy who bought the house in the first place.

This is extremely simple what I said here. Now throw in Bonds and the insurance like thing they have on bonds into the mix and you have an exponential mess on your hands, that which we are seeing now. Hope this explains it somewhat.
 
Switch said:
Simply speaking a a single Rs 500 note is worth Rs 5000 as long as it keeps traveling in different hands. As soon as you start storing it the market has lost Rs 5000 instead of Rs 500. Hopefully it made sense to you.
Click to expand...

Would this also apply anywhere else than in the stock market ?
 
Ok.. I am loving these 2-3 threads..clearing some doubts in layman's terms..

I had couple of questions some time back.. Kinda forgot right now.. Will post it once i recall em ;)
 
Stuge said:
ok ,than where is it ?
:huh:
Click to expand...

Its disappeared. Read up on bonds and the current crisis on wikipedia. It has a very nice explanation up. It is as switch said, soft money. That has disappeared.

The big banks were showing inflated balance sheets. Most of these were loans that they had given out. They had packaged a lot of these loans as Bonds and started trading on those. But these same loans and therefore bonds are now worth nothing at all. So money has actually disappeared from the market.

I read an article some time back that said that this is one of the reasons that the dollar is gaining so much value. Say there were originally $100 flowing around in the market a while back taking into account all the balance sheets and everything. Now these corporations are adjusting those balance sheets so soft money disappears from the market and thereby now there are only say $90 dollars flowing around. Mind you when I talk of flowing around I am counting both soft and hard cash. So basically with fewer dollars in the market the laws of supply and demand kick in and the value of the dollar actually rises. I will try to find that article.
 
Ok to put things in proper perspective here is some more calculations i have been doing.
(e & o e), please correct me if i am wrong.
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The Size of INR 100 Rupee Note = 157 x 73 mm

i.e. the length of the INR 100 = 0.157 mtr.

Total nos of notes = 52 x 10^12 / 100 = 52 x 10^10

i.e. the length covered by (52 x 10^10) notes = (52 x 10^10) x 0.157 / 1000 = 8,16,40,000 KMs.
i.e. 8 CRORES 16 LAKHS 40 THOUSAND KMs

To give you an idea how much is this distance covered by these 52 lakhs crores worth INR 100 notes, laid down length wise, consider the following....
1)Average Distance to the Moon = 3,85,000 Kms
i.e. Number of trips = 212 trips or 106 Round trips can be made.

2) Average Distance to Sun = 149597871 Kms.

i.e. INR100 distance is little more half way distance to the sun (54.57%) to be precise.

From a Gamers perspective.

3) Current average cost of a Geforce GTX 295 card is approx. US$ 500 i.e. 500 x 52 = Rs.26,000.
Number of GTX 295 that can be purchased = (2 x 10 ^ 12) / 26000 = 200 Crores cards. or 100 Crores in SLI configs.

i.e. Nearly our whole population of India can have GTX 295 in SLI config.
 
VanishingNerd said:
I read an article some time back that said that this is one of the reasons that the dollar is gaining so much value. Say there were originally $100 flowing around in the market a while back taking into account all the balance sheets and everything. Now these corporations are adjusting those balance sheets so soft money disappears from the market and thereby now there are only say $90 dollars flowing around. Mind you when I talk of flowing around I am counting both soft and hard cash. So basically with fewer dollars in the market the laws of supply and demand kick in and the value of the dollar actually rises. I will try to find that article.
Click to expand...

I thought it had more to do with money looking for safer shores.

What's the world's premier hard currency ?

How much of the global pie do the US finance companies control ?

Also an indicator the euro less is less trusted in comparison.

VanishingNerd said:
Umm report in millions and billions please. My mind no longer processes lakhs and crores properly. :p
Click to expand...

Assuming you grew up here this caught me by surprise :O

Lot of other fancy terms around as well

Imagine clocking to 4 Arawb'sHz
 
VanishingNerd said:
Umm report in millions and billions please. My mind no longer processes lakhs and crores properly. :p
Click to expand...

What to do bro...i sign cheques in lakhs and crores daily hence i am more comfortable in that system. :no:
 
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