I believe it’s quite a bit more than billions! The superfund is $100B alone. The drop is going to consist of depreciation of housing itself, plus markdown all of the structured and leveraged financial instruments that depend on housing assets and related revenue streams, plus a negative multiplier that retards wealth-creation in the greater US economy, as well as further impacts on the global economy.
My guess, The amount of unwinding is going to be on the order of tens of trillions of dollars when it’s all finished. Others have suggested hundreds of trillions. Not close enough to the details to know the answer. Definitely more than billions though.
To put these numbers in perspective, 2006 USA GDP was $13.3 trillion. The federal debt is $9 trillion, and that’s just the market for treasuries. There is so much paper out there, it makes your head swim. The puppet masters are doing their part to keep the show going, thus the ‘Greenspan Put’. Soft landing is really the best outcome we can hope for, with a gradual unwinding over the next decade.
