Martin Wolf: Fixing bankrupt systems is just the beginning

Posted by Kendall Harmon

Can we afford to fix our financial systems? The answer is yes. We cannot afford not to fix them. The big question is rather how best to do so. But fixing the financial system, while essential, is not enough.

The International Monetary Fund’s latest Global Financial Stability Report provides a cogent and sobering analysis of the state of the financial system. The staff have raised their estimates of the writedowns to close to $4,400bn (€3,368bn, £3,015bn). This is partly because the report includes estimates of writedowns on European and Japanese assets, at $1,193bn and $149bn, respectively, and on emerging markets assets held by banks in mature economies, at $340bn. It is also because writedowns on assets originating in the US have jumped to $2,712bn, from $1,405bn last October and a mere $945bn last April.

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Filed under: * Culture-WatchGlobalization* Economics, PoliticsEconomyThe 2009 Obama Administration Bank Bailout PlanThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--

Posted April 29, 2009 at 6:31 am [Printer Friendly] [Print w/ comments]

1. Harvey wrote:

Question:  How many of these banks got in trouble because they grabbed onto that low interest money for use after the stocks started to slide downhill FAST ???

April 29, 5:45 pm | [comment link]
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