The global economy will slow close to a halt this year as more than $2 trillion of bad assets from the U.S. help sink economies from Russia to the U.K., the International Monetary Fund said.Bank losses worldwide from toxic U.S.-originated assets may reach $2.2 trillion, the IMF said in a report released today, more than the $1.4 trillion that the fund predicted in October. World growth will be 0.5 percent this year, the weakest postwar pace, the fund said in a separate report.
The reports signal that writedowns and losses at banks totaling $1.1 trillion so far are only half of what’s to come and that contractions may deepen. Losses on that scale would leave banks needing at least $500 billion in fresh capital to restore confidence in their balance sheets, the IMF said.
Not much to say on top of that, is there?
2 comments:
Will anybody ever go to jail for causing this? Seems to me that is a key component to restoring confidence in the market.
Are we going to finally turn the FBI loose and put some of these bastards behind bars?
http://seattlepi.nwsource.com/national/397690_fbiweb28.html
avalanche,
No, sorry we did provide them with the keys to the Treasury. We did ask them to please turn out the lights when they are finished looting it.
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