Immediately a day after we wrote about the sub-prime crisis, two credible institutions have provided further information on the extent of sub-prime losses.
OECD (Organisation of Economic Cooperation and Development) works on behalf of 30 industrialized nations to study conditions in many areas of economic management and to advise on best practice, has stated the sub-prime crisis is not over. It was very critical of the supervision of the financial sector and has called the sub-prime crisis as "collective bankruptcy".
In the meantime, IMF (International Monetary Fund) has come out with a report that calculates that the total cost on account of sub-prime crisis would amount to USD945 billion for the financial sector. Click here to read the complete report.
We have seen write-downs only to the extent of USD300-350 billions so far. What is in store is another USD600 billion waiting to be written off in the coming quarters. It sounds scary, isnt?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment