"Big" is a relative term

The following information comes from the balance sheet's of the Federal Reserve's Flow of Funds Report

Since the 4th quarter of 2007, US households have lost $7.09 trillion in net worth. The big categories are:

• $2.9 trillion from real estate
• $2.4 trillion from corporate equities
• $.990 trillion from mutual funds
• $1.8 trillion from life insurance

That's a ton of losses, isn't it?

My comment: For a better look, lets chart that:


Left Axis = $ Trillion

The real question is, given the hole in the economy, are we applying enough spackle?

(Hat tip to Bonddad Bob.)