$1000bn of losses? - Part II

Two months ago (February, 11) I wrote a blog entry where I revealed my guesstimate of where I think the current "leverage turmoil" costs will end up. I predicted $1000bn and if you read today's Financial Times you see that now the time has come for IMF (in their global financial stability report) to predict the same very high number ($1000bn)! One of the authors of the report is qouted to refer to "collective failure to appreciate the extent of leverage in the financial system". That's exactly my point (as stressed here as late as yesterday) and I think that with the turn of the credit cycle we will se a lot of corporate defaults which will lead us to the $1000bn figure (again, as stressed here as late as yesterday).