IMF now says mortgage-related losses to hit $1.4 trillion

[seemslikeadream]

http://www.marketwatch.com/news/story/imf-now-says-mortgage-related-losses/story.aspx?guid=%7B8B9982A7-8383-4EC0-A8EC-36E18B86404D%7D&dist=msr_1


WASHINGTON (MarketWatch) -- Global financial insitutions will write off $1.4 trillion in losses on U.S.-based mortgages and mortgage-backed securities, the International Monetary Fund said Tuesday. Five months ago, the IMF said losses would total $945 billion. In its annual Global Financial Stability Report, the IMF said the crisis is worsening and threatens to become "disorderly increasing the risk of a severe adverse feedback loop between the financial system and the broader economy." The major economies must respond with a "collective commmitment by authorities to address the challenges effectively." IMF Managing Director Dominique Strauss-Kahn said "the time for piecemeal solutions is over."

[rucky]

1. What a coincidence! That exactly twice the bailout number.

"Peacemeal solution" was not how this plan was sold.