Tuesday, April 07, 2009

IMF says toxic debts might reach $4 Trillion......

This is barely a blip on the radar in the daily deluge of millions, billions and trillions tossed around but consider how shockingly bad things must be for the the IMF to change their forecast by nearly 80% in 3 months!!

"Toxic debts racked up by banks and insurers could spiral to $4 trillion (£2.7 trillion), new forecasts from the International Monetary Fund (IMF) are set to suggest.

The IMF said in January that it expected the deterioration in US-originated assets to reach $2.2 trillion by the end of next year, but it is understood to be looking at raising that to $3.1 trillion in its next assessment of the global economy, due to be published on April 21. In addition, it is likely to boost that total by $900 billion for toxic assets originated in Europe and Asia. "

If you wonder why the US gets the bulk of the blame for the global meltdown, just look at those numbers - out of $4 trillion of possible toxic assets 75%+ originated in the US. Yikes.

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I had a record number of visits last week (over 2,000 hits in a single day?!?!) when I put up the visual of what a trillion dollars might look like. For a little more context on billions/trillions consider the following.....

You were not a billion seconds old until you turned 31 years old.......

A trillion seconds? That would have been about 29,579 B.C. when Neanderthals were roaming Europe and the last ice age was still covering my house with a mile of ice.

4 trillion seconds ago? The lower paleolithic age was becoming the middle paleolithic age about 94,000 B.C., AKA THE MIDDLE STONE AGE.


Cheers!

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