Tag: debt crisis

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Toxic debts could reach $4 trillion, IMF to warn

Colin Henderson

In a much anticipated upward revision of earlier forcasts, the IMF is expected to increase its estimate of toxic assets, that is loans that should be written off, to $ 4 trillion. The new forecast is expected 21st April, and reported today by The Times. The forecast apparently will cover primarily US-originated assets but this forecast introduces European-originated assets. This represents the most ocnsequential statement of evidence yet, that this is a debt crisis which must be resolved before other elements of the banking system will return to any degree of normality. It will also require changes at the top … Continue reading Toxic debts could reach $4 trillion, IMF to warn

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“Hold your nose, however. Mr Geithner’s proposal is worth a try” | Geithner

Colin Henderson

This weeks leader in the Economist sums up my perspective well.  Its not great that taxpayers have to include those pesky Wall Street types in the scheme to sort out the Banks, but its better than all the alternatives of  flat out bankruptcy, flat out nationalisation, or doing nothing.  Each of those three alternatives have significant knee jerk ramifications for US and the world economies. Banks, and particularly US banks are perceived to be over-valued on their assets, and no amount of debate can cure that impression now.  With asset values down by 60% (Equities) to 30% (real estate) its … Continue reading “Hold your nose, however. Mr Geithner’s proposal is worth a try” | Geithner