It appears to me that Jeremy Stone is confusing two separate balance sheet accounts. It is (probably) true that global cash ("money") was unaffected by the crash. However, the market value of global investments in common stock declined drastically. Although unrealized in accounting terms, global net worth was reduced by this amount and was "all too real," as James Flanigan's column said. The reality of this drop in net worth is painfully obvious even to the smallest investor with equity security holdings.
The writer is a certified public accountant and an assistant controller with an insurance concern.