The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned.
Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised.
Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods".
"I would even go further to say 'the worst is to come'," he said.
"We're not just going to see mid-sized banks go under in the next few months," said Mr Rogoff, who held the IMF role between 2001 and 2004.
"We're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks."
Read on.
Read on.
And I know that the shares of Lehman Brothers, a global investment bank that serves the financial needs of corporations, institutions, governments and high-net-worth investors worldwide have sunken and they are now facing a 3rd quarter loss. Could Lehman Brothers be next? The question to JL readers: which US Bank is next to fail?
1 comment:
Thanks for the information SPB I read about this earlier. Now I can't blame the Media for not saying anything as it would be another run on the banks. We have serious problems and no one's taking care of it. Paulson is over his head and Bennie is lost. Cheney is to busy stealing and Bush is doing as much drinking and taking drugs as he can. Connie Rice is looking for a job with the Obama Team and Powell is trying to make people forget he played a large role in the 9/11 attack and illegal invasion of Iraq.
Post a Comment