Wednesday, July 16, 2008

Dying dollar and destroyed economy

IMF sticks by $1 trillion U.S. subprime fallout

BRUSSELS (Reuters) - The International Monetary Fund is sticking to its estimate that losses on U.S. assets from the subprime crisis and its wider fallout would be about $1 trillion despite fresh U.S. banking problems recently, a senior IMF official said on Wednesday.

"Basically, we think this is a reasonable figure and we are not revising the figure every day," Jaime Caruana, director of the IMF's monetary and capital markets department, told reporters in Brussels.

Earlier he told the European Parliament that the financial system, still suffering from a near year-long credit crisis, may have more difficulty in extending credit needed for the economy to grow.

Original article posted here.

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