April 28 (Bloomberg) -- Former World Bank President James Wolfensohn said he's ``pessimistic'' on the outlook for financial markets and predicted losses from the global credit turmoil may climb to $1 trillion.
``It does seem to be a major adjustment on any level,'' Wolfensohn said, after addressing the European Pensions and Savings Summit 2008. ``There may be a $1,000 billion worth of losses in it somewhere.'' He said he ``cannot recall anything similar, certainly in the last 30 to 40 years that I've worked.''
The International Monetary Fund predicts that losses from the crisis, including those tied to commercial real-estate, may total $945 billion and says global economic expansion may be the slowest since 2003 this year. Wolfensohn said the fund's loss forecast of about $1 trillion is now a ``consensus estimate.''
Monday, April 28, 2008
Wasn't so long ago that this was considered to be crazy talk.
by Atrios at 12:15