In seven trading days from July 26, $4.5 trillion was wiped off the value of equities worldwide, according to the Telegraph. Check again when markets open after the big US downgrade and that number could get higher.What does this mean for the global recovery?
For a bit of perspective we looked at McKinsey’s new report on global capital markets. Published last week, the big headline was that global financial stock (equities plus debt) grew by $11 trillion in 2010, surpassing its 2007 level.
Subtract $4.5 trillion from that figure and it doesn’t look so good. Now many including Nouriel Roubini say a global double is likely.
McKinsey’s report can be downloaded as a 40-page PDF here, but we’ve pulled out the best charts for you.