How much of troubled assets will government and/or dislocation investors have to buy in order to safe the financial system?

I have not seen a number yet but here is my quick and dirty calculation

Worldwide Credit Losses & Write Downs as per 9/19/2008............USD 516.7 bln 

Capital Raised....................................................USD 362.8 bln 

Capital Shortfall.................................................USD 153.9 bln

For this calculation I assume that financial institutions are leveraged by a

factor of 10. In reality I think the multiple may be even

higher. If we assume that equity capital markets for financial institutions

remain closed the existing capital shortfall of USD 153.9bln requires the sale

of (mostly troubled) assets in the amount of......................USD 1.539 trillion

Assuming that an estimated amount of USD 1.300 bln in total credit losses and

write downs will hold (risk is on the upside in my view) there are at least

another USD 783.30 bln (1.300 minus 516.7) to be realized which will result

in another........................................................USD 7.833 trillion

and in total 

                       USD 9.372 trillion 

to to be sold to:

- government(s)
- dislocation investors and/or
- remaining sound financial institutions (if any)



calculation as per September 19th 2009