Wednesday, March 26

for those who were thinking the worst is over, read on...

h/t: fintag.

Goldman Sachs forecasts global credit losses stemming from the current market turmoil will reach $1.2 trillion, with Wall Street accounting for nearly 40 percent of the losses.
U.S. leveraged institutions, which include banks, brokers-dealers, hedge funds and government-sponsored enterprises, will suffer roughly $460 billion in credit losses after loan loss provisions, Goldman Sachs economists wrote in a research note released late on Monday.
Losses from this group of players are crucial because they have led to a dramatic pullback in credit availability as they have pared lending to shore up their capital and preserve their capital requirements, they said.

Much more to come!!!! current write off by banks? about 100 odd billion. Where's the rest of the 360 billion going to come from? To put this into perspective, this amount is more than the TOTAL foreign exchange reserves of India or about 70% of that of the entire Eurozone or three times the size of the German foreign reserves.
If you want to put in another way, to fix this entire 1.2 trillion problem, you will have to liquidate UK Plc's 20% of total assets.

All this to be taken with a grain of piquant salt!!!

No comments: