A news story caught me by surprise yesterday: that the central banks of many industrialized countries, together with the American Federal Reserve have banded together to keep a money supply going, even in the face of further sub-prime mortgage meltdown red ink. The best explanation I've read so far (of course, it's from Big Brother) makes no attempt to estimate how much damage is still to come, only that the current losses add up to $60Billion and that the full extent won't be known until March 2008. The current loss is over half the amount of money that was ear-marked for easier loans this week, so I wonder if the banks have estimated the total loss already, privately, at that level. Or is this an artificial quantity, floated out there just to keep the banks liquid?
The whole thing sounds scary. Until I realize how lucky I am that I'm warm, fed and dry enough to worry about how this will affect my next re-mortgaging negotiations which aren't exactly happening in the next year.
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