Wow. This kinda surprised me. I mean, I think we all knew the sub-prime mortgage crisis was bad, but now the people at the International Monetary Fund are saying that it's way worse than that. Check out a cutting from the above screencapped April 8, 2008 Bloomberg news article (here: http://www.iht.com/…ss/imf.php) that explains it in no uncertain terms:
"The International Monetary Fund said Tuesday that financial losses stemming from the U.S. mortgage crisis might approach $1 trillion, citing a "collective failure" to predict the breadth of the crisis.
Falling U.S. house prices and rising delinquencies may lead to $565 billion in mortgage-market losses, the IMF said in its annual Global Financial Stability report, released in Washington. Total losses, including the securities tied to commercial real estate and loans to consumers and companies, may reach $945 billion, the fund said."
Wait--isn't the free market supposed to somehow protect against this kind of mess?
I'm sure if we just wait it out, the principle of "supply and demand" will work all this through and have us back on our feet in no time... uh... right?
You don't think it might be a little more complicated than that do you?
:(
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Replies.Orignal From: IMF: Mortgage Crisis to Cost US Economy $1 Tril
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