The horizon is not so far as we can see, but as far as we can imagine

4.1 Trillion of Losses?

american-dollar-toilet-paper1The IMF put losses at 4.1 trillion today. As a friend noted, that needs a couple of big caveats:

  1. Losses to this point.  Not losses that are yet to occur.
  2. Losses that people are willing to admit to.

But losses should slow down now that firms no longer have to mark assets to market. Mark to fantasy is very forgiving.  As we’ve seen in the last bit, with bank after bank declaring profits, mark to fantasy can turn almost any firm around.


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  1. jo6pac

    The last time think I read any truth on this matter, only the Germans know were they stand. Oh, China maybe? Good Luck to us all.

  2. Suspenders

    Ha, mark to fantasy…what an apt description.

    Well Ian, they say we Canadians have managed our banking system quite well. Can you offer us any thoughts on that? What should we be worrying about (other than the USA’s meltdown of course….)

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