Posted on 08/19/2008 10:10:59 AM PDT by Santa Fe_Conservative
The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned.
Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised.
Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods".
"I would even go further to say 'the worst is to come'," he said.
"We're not just going to see mid-sized banks go under in the next few months," said Mr Rogoff, who held the IMF role between 2001 and 2004.
"We're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks."
Speaking at a conference in Singapore, Mr Rogoff, now an economics professor at Harvard, forecast that Fannie Mae and Freddie Mac would "probably" not exist in their present form in a few years.
(Excerpt) Read more at news.bbc.co.uk ...
a) even stopped clocks are right twice a day.
b) he’s no longer the economist for the IMF. It was a position he held in the past. He is, however on the NBER.
c) he has done work examining the fallout of banking collapses in several other nations in the past.
Who do you think it might be??
A salient observation...I completely forgot about Lehman Brothers.
Even when it's a lefty like this IMF guy probably is, Freepers love to eat up the MSM doom and gloom.
Amazing.
I believe its going to be Wachovia.
Your last sentence makes a lot of sense, if they have received billions in capital...and I’m not doubting you.
Thanks for the information.
In case you missed it this is an excellent article on our economy from a guy who accurately predicted the future ..... so far.
http://www.freerepublic.com/focus/f-news/2064143/posts
As long as you have less than $100,000 with them, you’ll be OK. If more, you’d best spread it around.
Actually, in terms of market cap it could very well be Wachovia. Or an investment bank.
Hah! And where did that link really go? Guang Dong Province? North Ossetia?
What a Zionist plot!! :-)
Classic phishing.
Barely a millimeter better than a Nigerian fraud scheme letter.
You can get a twofer - get your identity stolen AND make your computer a botnet slave.
Yeah...that’s what Obama thinks.
And don’t forget about the billions in auction rate securities they are going to have to buy back and pay some hefty fines on because of the lying to customers to get them to buy ARS in the first place. Plus the civil suits on the misreps they made the ISSUERS of the ARS. Their securities arm has turned from a cash cow into a cash shredder.
Actually, it would not break my heart to see Wachovia’s securities arm go down. It would probably reduce my workload. (I probably should’nt have typed that...)
Same here, I don’t have an account with them.
bookmark
Many or most all credit unions are OK but don't assume the same about "small regional banks". A relative asked me to research one where she has an account almost exceeding the insured limit. I had not previously heard anything negative about this bank headquartered about 150 miles from me. Turns out it receives the very lowest "star" rating from bankrate.com. No other financial institution I personally have looked up has a rating in that category (except those that have already failed).
$$$---Dollars
FMCDH(BITS)
Meant to add that the share price falling from $20 to $1.xx in the past few months was a real tip off on the problems at this regional bank — but I hadn’t been following it as I had no reason to.
Sweet!
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