Chronicles Of Depression 2.0: #393: $1.4T Up

Credit losses may surpass 10 percent of U.S. GDP

NEW YORK (Reuters) – Credit losses from the financial crisis may exceed even dire estimates of $1.4 trillion, or more than 10 percent of U.S. economic output, according to the chief strategist of research firm CreditSights.

Financial and non-financial loss estimates by the International Monetary Fund and World Bank may be too conservative as the economy weakens and companies and consumers focus on repaying debt, Louise Purtle said on Wednesday.

“What does life after leverage look like?” asked Purtle, during a credit conference in New York. “We’re not prepared for it. The great danger looking into 2009 is being too optimistic.”

Emphasis added by me.

A statistic right out of hell itself:

Most indicators suggest no easy fix, she said. U.S. existing home sales indicate there are about 1 million extra homes that can’t be sold. Defaults and delinquencies for home loans continue to climb, adding to the 6.9 million foreclosures over the past three years.

Emphasis added by me.

This tension can’t continue forever. Something has to snap, something has to break.

I see massive deflation in tangible goods and massive inflation in food.

That signals the total wreckage of the existing economic system. When people recognize the only thing that remains valuable is the ability to eat.

Explore posts in the same categories: C.O.A.T. - Belief, C.O.A.T. - Food, C.O.A.T. - Money, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0

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