Toxic debts could reach $4 trillion, IMF to warn
In a much anticipated upward revision of earlier forcasts, the IMF is expected to increase its estimate of toxic assets, that is loans that should be written off, to $ 4 trillion. The new forecast is expected 21st April, and reported today by The Times.
The forecast apparently will cover primarily US-originated assets but this forecast introduces European-originated assets.
This represents the most ocnsequential statement of evidence yet, that this is a debt crisis which must be resolved before other elements of the banking system will return to any degree of normality.
It will also require changes at the top in those banks that are the worst culprits.