Tuesday, August 19, 2008

Credit crunch may take out large US bank warns former IMF chief - Times Online

Credit crunch may take out large US bank warns former IMF chief - Times Online: "Professor Kenneth Rogoff, a leading academic economist, said there was yet worse news to come from the worldwide credit crunch and financial turmoil, particularly in the United States, and that a high-profile casualty among American banks was highly likely.

“The US is not out of the woods. I think the financial crisis is at the halfway point, perhaps. I would even go further to say the worst is to come,” Prof Rogoff said at a conference in Singapore.

In an ominous warning, he added: “We’re not just going to see mid-sized banks go under in the next few months, we’re going to see a whopper, we’re going to see a big one — one of the big investment banks or big banks,” he said."

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He also says Fannie Mae and Freddie Mac are going to go bye-bye. You can't accuse him of being a Pollyanna.

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