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 ...
This isn’t even news anymore. Since IndyMac, Bear and the GSEs folded, what could be bigger? Somebody predicting more of the same doesn’t even raise my radar.
A big bank will fail. DUH! How about predicing if we are talking about 5 big banks or 50 failing. That would be a prediction woth discussing. A bank smaller than Indy or Bear folding? Well, duh. Tell me something I don’t already know.
The only value in this article is to indicate to people that the crisis has quite a ways to go before it is over and the economic climate improves. But the doomers and gloomers already know this and the Freepyannas aren’t ready to believe it.
A mild prediction overall.
The dumbest post of the day. Are you wishing ill on tens of millions of people?
So is Lehamn off the hook? They were on the bubble after Bear.
So is Lehman off the hook? They were on the bubble after Bear.
As long as US Bank stays afloat, I don't need to worry too much about my mortgage...
PS: Come back with your typical idiotic reply and tell me that calling people names and hateful is a liberal tactic.
I think it will be WM. Being a foresighted, extremely intelligent investor I dumped their stock a month ago.
I figured as much...just being sure...:)
Wise move, sir.
You write tech manuals for Microsoft, don't you....? ;-)
Someone is phishing in your pond.
I mind. But I'm not hoping it's Wachovia (a bank I had a terrible experience with once) either. Frankly I'm hoping the rumor simply isn't true.
Do you work for a water company?
US Bank isn’t gonna like this headline!
A nervous LOL. I have been moving money around. BOA has 100K + of my money I deposited a couple of weeks ago-10 days to clear a check. Day 11 they bounced a check to my brokers account. I will be relieved when I get down to a couple of thousand.
I also have a business account at Wachovia. Double trouble, both are next door to my office so real convenient
Do you want to walk out of a bank with $100K in a briefcase and an armed Treasury official or SS Agent escorting you to your car? And police cars all over looking for bandits? That happened in L.A. not long ago with some bank.
Heck, just take your car and briefcase to the Belaggio in Vegas and tell them you're making a deposit in their vault. Summer's almost over. Enjoy the pools, saunas, eat big, play big at what you know. Shows. A very nice room for you and your lovey. Italian marble style. Then come back and put the money back to where it came from.
“”””Don’t have more than $100K in any single bank.””””
No way around it, deposit check was in excess of 100K, I am moving it out as fast as I can but the 10 day turn around does not make it easy. In a crisis lots of people will get screwed if they are not more liquid.
I have 7 bank accounts as it is (LOL I am running out of local banks) I have been consolidating my investments/money with the downturn of events to more stable or liquid vehicles.
Thanks to everyone who pointed me to links on Wachovia. For the time being, I’m going to sit tight and take my chances. We have less than 200k in there anyway, though these days I feel like the FDIC insurance is getting to be a risky proposition too...
It was said tongue-in-cheek because I can’t stand BoA. Lighten up.
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