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Joined: 28 Jan 2006
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 Posted: Tue Apr 08, 2008 6:44 pm Post subject: Credit cunch costs $1 trillion |
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Credit crunch costs '$1 trillion'
By Steve Schifferes
Economics reporter, BBC News
Mr Strauss-Kahn will head IMF talks in Washington.
The International Monetary Fund (IMF) has warned that potential losses from the credit crunch will reach $945bn (�472bn) and could be even higher.
The IMF says that losses are spreading from sub-prime mortgage assets to other sectors, such as commercial property, consumer credit, and company debt.
It says that there was a "collective failure" to appreciate the risky borrowing by financial institutions.
And it warns that tough measures and government intervention may be needed.
The IMF's Global Stability Report warns that "despite unprecedented intervention by major central banks, financial markets remain under considerable strain, now compounded by a more worrisome macroeconomic environment, weakly capitalised institutions, and broad-based deleveraging."
[urlhttp://news.bbc.co.uk/2/hi/business/7336744.stm]OYVEY[/url] |
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