The End is Nigh? NOT!
John Paulson, founder of hedge fund Paulson & Co., said
global writedowns and losses from the credit crisis may reach $1.3 trillion, exceeding the International Monetary Fund's $945 billion estimate.
"We're only about a third of the way through the writedowns, There are a lot of problems out there and it will continue to be felt through the year. We don't see any signs of stabilizing."
The U.S. is heading into a recession as falling home prices weigh on consumer spending, Paulson said.
The second half of this year will be worse than the first as the economic slowdown continues into 2009.
Signs of stress are "accelerating" in the housing market, he said.
Ambac Financial, the second-biggest bond insurer, is "the most leveraged, troubled company out there," Paulson said.
It is at risk of being downgraded to non-investment grade, Paulson said.
Bob Janjuah, a credit strategist at RBS:
"Mid-July through to October is likely to be the most bearish period we will experience in the bear market that began in the fourth quarter of last year."
Hattip to Bloomberg
global writedowns and losses from the credit crisis may reach $1.3 trillion, exceeding the International Monetary Fund's $945 billion estimate.
"We're only about a third of the way through the writedowns, There are a lot of problems out there and it will continue to be felt through the year. We don't see any signs of stabilizing."
The U.S. is heading into a recession as falling home prices weigh on consumer spending, Paulson said.
The second half of this year will be worse than the first as the economic slowdown continues into 2009.
Signs of stress are "accelerating" in the housing market, he said.
Ambac Financial, the second-biggest bond insurer, is "the most leveraged, troubled company out there," Paulson said.
It is at risk of being downgraded to non-investment grade, Paulson said.
Bob Janjuah, a credit strategist at RBS:
"Mid-July through to October is likely to be the most bearish period we will experience in the bear market that began in the fourth quarter of last year."
Hattip to Bloomberg
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