I know. I too want to look for  positive news, but facts are facts, as they say.

Get a load of this news ….

In Jessica Swesey’s Blog on Inman News, she writes a mind blowing and incredibly scary article called: Hey subprime meltdown, I want my $143 back.

Check out these facts and projections:

• The International Monetary Fundestimated Tuesday (April 8, 2008) that the subprime mortgage meltdown could zap almost $1 trillion from the world economy, according to news sources.
• The IMF predicts losses of $945 billion after adding up batches of bad mortgages, securities and other commercial loans.
• The Chicago Tribune says that amounts to about $143 for each person on Earth. And you know that is not going to really happen, which means there is more cost to most of us who are active participants in the market.
• What’s really scary is that the IMF’s number exceeds the highest prior estimate by $345 billion, according to Forbes, which also says The Street’s consensus is that the subprime fallout has cost $170 billion to date.
• But what is the scariest part of today’s news reports is this, from Forbes:

The bank said that the crisis is spreading outside the U.S. subprime market into “the prime residential and commercial real estate markets, consumer credit, and the low- to high-grade corporate credit markets.”

The report identified the U.S. as the crisis “epicenter” that has become a contagion. Once considered an isolated problem, the IMF wrote that U.S. troubles are affecting other nations’ financial institutions that have “the same overly benign global financial conditions” and “weaknesses in risk management systems and prudential supervision.” 

Tags: Global Impact, Subprime

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