4.1 Trillion of Losses?

The IMF put losses at 4.1 trillion today. As a friend noted, that needs a couple of big caveats:

1. Losses to this point.  Not losses that are yet to occur.
2. Losses that people are willing to admit to.

But losses should slow down now that firms no longer have to mark assets to market. Mark to fantasy is very forgiving.  As we’ve seen in the last bit, with bank after bank declaring profits, mark to fantasy can turn almost any firm around.