BUTT UGLY ECONOMICS, again

Credit crisis could cost nearly $1 trillion, IMF predicts
Bloomberg News
Published: April 8, 2008


WASHINGTON: 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.



More at http://www.iht.com/articles/2008/04/08/business/imf.php

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Greenspan, on CNBC: U.S. in recession
WASHINGTON (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Tuesday the U.S. economy was in recession, and said it would be appropriate to tap public funds to resolve the mortgage-related crisis that has helped pull the economy under.


In an interview with CNBC television in which he defended his chairmanship of the U.S. central bank against charges that his policy missteps had laid the groundwork for the current crisis, Greenspan said Fed decisions on his watch were rationally constructed based on evidence at the time.


More at: http://news.yahoo.com/s/nm/20080408/bs_nm/usa_economy_greenspan_dc

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Fed Auctions Another $50 Billion to Cash-Strapped Banks in Battle Against Credit Squeeze
WASHINGTON (AP) -- The Federal Reserve, still working to combat the effects of a severe credit squeeze, said Tuesday it had auctioned another $50 billion to cash-strapped banks. Meanwhile, the International Monetary Fund warned that further actions are needed globally to prevent more wrenching problems.



More at: http://biz.yahoo.com/ap/080408/fed_credit_crisis.html?.v=14

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Citigroup, Wells Fargo May Loan Less After Downgrades (Update3)
By Mark Pittman, Alan Katz and David Mildenberg

April 8 (Bloomberg) -- Bank holding companies including Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. have the thinnest safety cushion against losses in seven years.


The margin may erode further in coming weeks. Credit ratings on $704 billion of bonds have been cut this year following the collapse of the U.S. housing market. Sheila Bair, chairman of the Federal Deposit Insurance Corp., said last week that downgrades may compromise bank capital ratios enough that some of the largest institutions will no longer be considered well capitalized.



More at: http://www.bloomberg.com/apps/news?pid=20601109&sid=ay.wksrAwOGI&refer=home

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Reuters

WaMu gets $7 bln infusion, cuts jobs, sees lossTuesday April 8, 4:53 pm ET By Jonathan Stempel


NEW YORK (Reuters) - Washington Mutual Inc (NYSE:WM - News), battered by mortgage delinquencies and defaults, said Tuesday it obtained a $7 billion capital injection from private equity firm TPG Inc and other investors, but projected a $1.1 billion quarterly loss and set plans to eliminate 3,000 jobs.



More at: http://biz.yahoo.com/rb/080408/washingtonmutual.html?.v=9







Is everybody getting the message? These punks are hurting . BAD!



Michael



mboone@rtccom.net