|
|
"A comprehensive, collaborative elections resource."
|
IMF Puts Cost of Crisis Near $1 Trillion
|
|---|
| Parent(s) |
Issue
|
| Contributor | ArmyDem |
| Last Edited | ArmyDem Apr 09, 2008 01:02pm |
| Logged |
0
|
| Category | News |
| Media | Newspaper - Washington Post |
| News Date | Wednesday, April 9, 2008 07:00:00 PM UTC0:0 |
| Description | Problems 'Metastasized' To Threaten Economy Worldwide, Report Says
By Neil Irwin
Washington Post Staff Writer
Wednesday, April 9, 2008; Page D01
Worldwide losses from the credit crisis could near $1 trillion, the International Monetary Fund said yesterday, reflecting the massive cost of the breakdown in markets for home mortgages and other kinds of debt.
The IMF, which is holding its semiannual meeting in Washington this week, urged banks to disclose losses quickly, raise extra cash if necessary, improve their techniques for dealing with risk and reconsider how top managers are paid so that they have better long-term incentives.
The IMF estimated that banks, insurance companies, pension funds, and other kinds of investors will suffer huge losses: $565 billion on U.S. home mortgages, $240 billion on debt backed by commercial real estate such as office buildings and shopping centers, $120 billion on corporate loans such as those used to acquire businesses, and $20 billions on consumer loans such as credit cards.
Those figures add up to $945 billion in losses expected within two years. That would be about $143 for every person on Earth, or $3,100 for every U.S. resident. |
| Share |
|
|
2¢
|
|
| Article | Read Full Article |
|
| Date |
Category |
Headline |
Article |
Contributor |
|
|
