According to the head of the International Monetary Fund, banks have disclosed only about half of their losses. Monetary authorities may have no choice but to keep interest rates down long enough for banks to rebuild their balance sheets—a choice which will inevitably cause dislocations in other parts of the economy.
You can guess at what might happen (called “forecasting” in polite company) or you can choose to use a systematic, adaptive investment process. I know what my choice will be.
