US Subprime Crisis Could Cost $945 Billion Globally

US Subprime Crisis Could Cost $945 Billion Globally
The International Monetary Fund says world-wide losses from the U.S. subprime mortgage crisis could hit $945 billion as the impact spreads into the global economy.

The Bloomberg financial news services estimates that banks and securities firms have so far written off only a fraction of that total, $232 billion, suggesting the crisis could continue and deepen.

The subprime crisis hurt the U.S. housing market, and a new report from a business group indicates the problems are likely to continue.

The National Association of Realtors reports the number of contracts signed to buy previously-owned homes dropped nearly two percent in February.

February's decline pushes the index to its lowest level since the Realtors started keeping such records in 2001.

Falling home values, rising foreclosure rates, and tighter lending standards have slowed home sales, and may prompt the U.S. central bank to continue lowering interest rates at a meeting scheduled for the end of this month.

Submitted by admin 4/08/08
Source: VOA