IMF: “Crisis Will Cost Over $4trillion”

In Financials, Politics on April 22, 2009 at 09:15

wall-street-2On a revised estimation of the cost of crisis, the IMF – International Monetary Fund – has warned that credit crunch losses will have reached $4 trillion during 2010. In calculating these losses the IMF said it used losses/writedowns from 2007 until the ones expected in 2010 from all major financial players such as banks, insurance companies and pension funds. Banks will suffer 61% of the losses.

I remember in late 2007 when economist Nouriel Roubini aka Dr. Doom was giving his estimation on the overall cost of this crisis approximating it to $1 trillion and everybody came out calling him utterly pessimistic and rather unrealistic. Today, we see the IMF revising upwards its forecast  by and additional $3 trillion since its last one, almost a year ago.

The IMF insists on extra injections and bail-out money in a co-ordinated fashion. Truth to be told, considering governmental efforts across the world it would be hypocritical for administrations to back down now on bail-out plans. The boat has set for sail and is not coming back…!

by The Self-Seeker

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