The good news is that it's not $5 trillion. Yet. In all likelihood this number will increase and the previous forecasts on toxic debt will be proven to be fantasy. Can someone - anyone - explain why Obama still refuses to meet with fellow Democrats who have questioned the current economic programs pushed forward by Geithner and Summers? The problem is too serious to get stuck in with outdated economic theory.
Toxic debts racked up by banks and insurers could spiral to $4 trillion (£2.7 trillion), new forecasts from the International Monetary Fund (IMF) are set to suggest.
The IMF said in January that it expected the deterioration in US-originated assets to reach $2.2 trillion by the end of next year, but it is understood to be looking at raising that to $3.1 trillion in its next assessment of the global economy, due to be published on April 21. In addition, it is likely to boost that total by $900 billion for toxic assets originated in Europe and Asia.
