The International Monetary Fund thinks the global credit crises remains a significant threat to global growth. Financial markets are still under considerable strain despite the many private and public interventions. The weakening US economy does not help the situation either. In the coming binge of regulation the IMF warns of "subjecting banks and other financial firms to multiple supervisors". Here are some staggering numbers:
The U.S. mortgage and credit crises could cause almost $1 trillion in financial losses, the IMF said in an update to its Global Financial Stability Report, with $565 billion of those losses stemming from the residential mortgage market and related securities, and the rest from the commercial real estate, consumer credit and corporate debt markets.
That estimate is toward the higher end of estimates by many Wall Street economists, who have pegged the costs of the residential mortgage meltdown at $400 billion to $600 billion.
The IMF's figure includes $200 billion in losses that banks have already announced, plus an additional $80 billion the banks have yet to write down, IMF officials said during a briefing.
The rest is held by other financial institutions, such as hedge funds and pension funds, the officials said.
source: IMF Issues Gloomy Assessment of Markets
AP
http://biz.yahoo.com/ap/080408/imf_economic_forecast.html
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