Every time I read an article like HSBC to Write Down Another 4.3 Billion I like to go back and read Housing Bubble, Schmousing Bubble. In the 5 weeks or so since the experts at Frontburner pronounced that the subprime crisis has peaked, major US banks have announced almost $50 billion in losses and writeoffs.
Just because the banks say that the worst is behind them is no reason to believe them. Of course they’re going to say that, common sense about human nature can tell you that. They’ve been saying that for six months now. Daniel Gross at Slate said back in August in Subprime Nonsense that they were full of baloney and we wouldn’t hit the bottom for a while yet.