Paulson & Co. Says Writedowns May Reach $1.3 Trillion (Update3)
June 18 (Bloomberg) -- John Paulson, founder of the hedge fund company Paulson & Co., said global writedowns and losses from the credit crisis may reach $1.3 trillion, exceeding the International Monetary Fund's $945 billion estimate.
"We're only about a third of the way through the writedowns," Paulson, 52, told the GAIM International hedge fund conference in Monaco today. "There are a lot of problems out there and it will continue to be felt through the year. We don't see any signs of stabilizing.'"
Paulson, whose New York-based company manages about $33 billion, made bets last year that subprime-mortgage debt would fall after he noticed "bubble like" prices. His Paulson Partners fund rose 18 percent a year since it started in 1994, and his main subprime-debt fund rose 591 percent last year. Banks and securities firm worldwide posted more than $395 billion in losses and writedowns since the subprime crisis started last year.
Emphasis added by me.
Anyone reading that who's shocked by a trillion-dollar figure must be new here.
See: Chronicles Of Depression 2.0: #099
I keep forgetting to include this: Educate yourself!