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A little cloud in the sky

It’s Monday, start of the week, smile on my face and sun in the sky.

I should be looking up, pushing forward, feeling fine and seeing the future as bright.

We should all be.

But there’s a little cloud on the horizon called doubt.

Why is there doubt?

Because there is a feeling that we have prescribed the drugs to treat the illness but have not cured the disease.

Governments have pumped $11 trillion into the financial system, whilst banks have a further $1.5 trillion to come, according to the IMF’s latest figures.

Imf

$1.5 trillion still to write-off?

And most of that in Europe's banks?

According to the IMF, there's $418 billion in further bank losses in the USA, $126 billion in Asia and the bulk of the losses – $934 billion – in Europe, with $344 billion of that lot in the UK alone.

So yes, it’s Monday, start of the week, smile on my face and sun in the sky.

I am looking up, pushing forward, feeling fine and seeing the future as bright.

I just don’t like that little cloud.

Mind you, what do the IMF really know as last year they estimated the crisis to cost around $400 billion when it was just subprime losses and then upped it to $1 trillion after Lehmans collapse (blog entry from December 2008):

"Maybe it is outlined in the predictions of the IMF, who tagged
the original ‘subprime crisis’ losses to be between $350 and $400 billion in
late 2007. These estimates were increased to $1 trillion in April 2008, as the
markets liquidity started to dry up. And this was increased once more by the
Bank of England in October 2008 to $2.8
trillion
."

Pah! 

Doubt has now been joined by Fear and Uncertainty.

Happy Mondays!

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About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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