Losing Out

The term ‘wealth destruction’ has become the catchphrase for the global financial crisis, with over seven million references on Google. However, the Oxford English Dictionary’s definition of destruction – the action of, or process of, causing so much damage to something that it no longer exists or cannot be repaired – suggests a more accurate term is required. While it is extremely difficult to quantify, the data suggests that the majority of losses are sitting on paper rather than actually having been realised, and that they reside with large pools of institutional money and extremely weal...