Let the record reflect that Professor Roubini recently revised his estimate of banking losses from the sub-prime meltdown to $3 trillion.
Roubini said total credit losses resulting from the meltdown of the subprime mortgage market will be "closer to $3 trillion," up from his previous estimate of $1 trillion to $2 trillion.
In April, Brick Oven said this:
Goldman Sachs had estimated mortgage losses to be $300 billion. Actual losses to date have been 25% of $20 trillion, or $5 trillion, split between home equity and mortgage holders. My estimate of overall loss now exceeds $7 trillion, not counting the falling value of the dollar, which is a whole different subject.
We noted that half of the loss went to the banks, and half to home equity loss for homeowners, or a $3.5 trillion banking loss. Roubini will get here eventually. How do I get on TV?
On that note, Merry Christmas again. Tomorrow is a post that would have been inappropriate for this day.