Check out this story:
Mortgage Writedowns to Total $1 Trillion, Gross Says - Sandra Hernandez - Bloomberg
Expect more chatter about the huge gap between the $467BB in writedowns taken so far and the now commonly used best-guess of $1 Trillion. BTW, some have estimated as high as $1.3TR. It’s important to keep in mind this figure is dynamic. The final tally is directly tied to the housing market. As writedowns actually taken approach the $1TR figure, best guesses could be $1.5TR by then. The markets will have a much better handle on this 6 mo’s from now.
These numbers are telling you we’re not even halfway there yet, and that assumes
the best guesses end up being right. Using the recent run-rate of $150BB in writedowns announced each quarter, it will take another 4-5 quarters to top $1TR. And what happens if housing slides further? Total writedowns will go higher still.