The line is long to deliver bad news
The FT had an article trumpeting a trillion dollars in bad loans, but changed it to this: IMF puts cost of credit crisis at $945bn. Meanwhile, former Fed Chairman Alan Greenspan said on CNBC that things are bad, but it’s not his fault:
Greenspan said Fed decisions on his watch were rationally constructed based on evidence at the time. “I have no regrets on any of the Federal Reserve policies that we initiated back then because I think they were very professionally done…Clearly, certain of our anticipations of what would happen as a consequence of those policies were off but there’s no way of avoiding that…Consumers are beginning to shrink in, the automobile markets are beginning to contract, production is beginning to ease, and we are in the throes of recession”…
By the way, that same IMF that is now retailing the trillion dollar story “predicted a year ago that any ripple effects from a subprime mortgage crisis would be limited.” So it goes.