IMF: Toxic debt could reach $4 trillion

The International Monetary Fund is set to release a major assessment of the global economy at the end of the month and the results won't be pretty. The IMF estimates that the deepening recession could create up to $4 trillion in bad debts as more cash strapped people default on their mortgages, credit cards, and other obligations.

So far, the banks have only admitted to holding $1.29 trillion in bad debts:

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. [Times]

(HT: Calculated Risk)

Comments

[Eric Jaffa]

Huge corporations in banking and insurance don't have to worry, since Tim Geithner will give them however many trillions of our money they want.

The rest of us should perhaps worry about the resulting debt dragging on the economy, though.

[revenantive]

When it is all said and done, I bet most of the trillions that are 'lost' actually wind up in the hands of the top 0.001% of the earnings scale worldwide.

This isn't an over-consumption problem created by debt consuming consumers; no, this is simply pure, vintage rape and pillage by treasonous, colluding CEO's and Bilderberg Group wannabes.

At this point, there's no doubt this is a giant extortion/racketeering gambit by people with too much power and/or money.

I say, off with their heads...and if you can't kill them outright, put the bastards in jail permanently...and let's start the peasant revolution right here, right now...

International financial sabotage of this scale is usually only perpetrated by organizations like SPECTRE in James Bond films, but not even Ian Fleming could dream up a plot this damning.