$1 Trillion in Losses?By
Experienced investors know that the market hates uncertainty. The market can handle bad news as long as it can understand and digest the gloomy information quickly, adjust stock prices to reflect it, and then move on. That’s why the slow-motion credit and housing crisis has been so unnerving. “When will it end?” the talking heads kept asking as the crisis unfolded last year. If only, they said again and again, we knew how much damage all this bad debt is causing — a number in dollars that everyone on Wall Street could just accept and then adjust to. Well, that number has arrived, but it hasn’t satisfied anyone. Because how do you adjust to losses of $1 trillion? How does the market wrap its collective head around a number that large?
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.