$1 Trillion is the Magic Number

Scary fact: Over the past year, the S&P has lost nearly $1 trillion more than in the entire 2000-02 bear market.

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It's a popular number today:

First, S&P reports that over the past year, stocks in the S&P 500 have lost nearly $1 trillion more than in the entire 2000-02 bear market.

Also, apparently the U.S. financial system still needs $1 trillion to $1.2 trillion of tangible common equity to restore confidence and improve liquidity in the credit markets, according to a Friedman Billings Ramsey analyst. Those with the greatest need of capital: Citigroup, Morgan Stanley, Goldman Sachs, Wells Fargo, JPMorgan Chase, American International Group, Bank of America, and GE Financial.

Wait, there's more: Citigroup estimates that hedge-fund assets may fall to about $1 trillion by the middle of next year--a drop of almost 50 percent from their peak assets in June.