Banks' losses from the U.S. subprime crisis and the ensuing credit crunch crossed the $500 billion mark as writedowns spread to more asset types.
The writedowns and credit losses at more than 100 of the world's biggest banks and securities firms exceeded $501 billion after UBS AG reported second-quarter earnings today, which included $6 billion of marks on subprime-related assets.
The International Monetary Fund in an April report estimated banks' losses at $510 billion, about half the total for all companies. Predictions have crept up since then, with New York University economist Nouriel Roubini forecasting losses to reach $2 trillion.
But the financials are bottoming -- I can just feel it! Let's plow some money into the XLFs!!!!!!!