Posted on 04/14/2009 12:04:12 AM PDT by TigerLikesRooster
According to press reports the IMF may allegedly be increasing its estimate of global bank losses to $4 trillion, a figure consistent with estimates by a variety of independent bank analysts
Nouriel Roubini | Apr 10, 2009
A year ago this author predicted that losses by US financial institutions would be at least $1 trillion and possibly as high as $2 trillion. At that time the consensus such estimates as being grossly exaggerated as the naïve optimists had in mind about $200 billion of expected subprime mortgage losses. But, as was pointed out then in this forum, losses would rapidly mount well beyond subprime mortgages as the US and global economy would spin into a most severe financial crisis and an ugly recession. It was then argued that we would then see rising losses on subprime, near prime and prime mortgages; commercial real estate; credit cards, auto loans, student loans; industrial and commercial loans; corporate bonds; sovereign bonds and state and local government bonds; and massive losses on all of the assets (CDOs, CLOs, ABS, and the entire alphabet of credit derivatives) that had securitized such loans. Then, in a matter of months the IMF came with an estimate of $945 billion of losses that was revised in mid year to $1.4 trillion and to $2.2 trillion by the beginning of 2009. And by the end of 2008 write-downs by US banks had already passed the $1 trillion mark (our initial floor estimate of losses).
(Excerpt) Read more at rgemonitor.com ...
Ping!
You are always just a ray of sunshine...
In for a penny in for a pound. At least it’s comforting knowing that degenerate banksters worldwide created this mess. Not just our home grown pond scum plus Wall street and AIG
The whole schema of wild borrowing from the future to pay for today’s profligacy is dead. Collapsed under its own weight. Or is it
_______________________
Your thought becomes your action. Your action becomes your habit. Your habit becomes your character, and your character becomes your destiny.
...your destiny becomes a movie on the Oxygen channel.
Current generation of bankers have to disappear from the scene. Making megabucks with overleveraging is now deeply ingrained into their psyche. You can't clean these people up. It is like expecting Jane Fonda to become a conservative. Won't happen.
Right!
0bama is the perfect pied piper for our times.
And these degenerate financiers won’t change. As Denninger says the worst offenders need to be in prison and forfeit assets but that isn’t being discussed at all.
PLUS credit default swaps and derivatives are as unregulated as ever with no transparent market for them. Meanwhile lots of freepers think these Wall Streeters/banksters are brave capitalists. Truth is they are close cousins of Somali pirates. It’s easier to rob a man with a pen than with an AK47
Very good post. GRRRRREAT discussion!
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