Credit crunch costs '$1 trillion'

[Morereason]

Source: BBC

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."

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Read more: http://news.bbc.co.uk/2/hi/business/7336744.stm

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So another potential $1,000,000,000,000 could be taken from the common man to bail out banks.

Before they give them any more bailout money they should make them sign a contract: **NO BONUSES or $1,000,000 ALARIES for the execs!! That is the LEAST they should do. These execs should be fired, not given grand compensation packages out of our hard earned "emergency" funding!

[Doctor_J]

1. Wasn't Jimmy Caine's bailout $132B?

If so, 1 trillion worldwide seems extremely optimistic.

[cliss]

2. I got news for the IMF.

The common man ain't got $1 trillion bucks.

[fascisthunter]

3. I Got News for the IMF

They can go fuck themselves.

[fascisthunter]

4. BS to Your Credit Crunch

Stick a piece coal where the sun don't shine and wait for it to turn into a diamond, you greedy freaks.