Credit Crisis Losses Pass $1.6 Trillion as Credit Contraction Ensures Recession

Credit Crisis Losses Pass $1.6 Trillion as Credit Contraction Ensures Recession :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website: "$1.6 Trillion in Losses and Counting
One of the great privileges I have is getting to read a wide variety of economic research. While I get a lot of material direct from the source, I also have a wide network of people who read other sources and send me what they think is important. When Ambrose Evans-Pritchard wrote this week about a report done by Bridgewater Associates, it got my attention, and fortunately this report was sent to me by a few friends. In my book, Bridgewater is one of the top analytical groups in the world. I pay attention and give strong credence to what they write. And this report is quite sobering.
First, let's look at what Evans-Pritchard wrote in the London Telegraph:
'Bridgewater Associates has issued an apocalyptic warning to clients that bank losses from the worldwide credit crisis may reach $1,600bn [$1.6 trillion], four times official estimates and enough to pose a grave risk to the financial system.
'The giant US hedge fund said that it doubted whether lenders would be able to shoulder the full losses, disguised until now by 'mark-to-model' methods of valuing structured credit."