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A Trillon dollar credit crunch coming soon.

Posted by Adrian on November 19, 2007

As discussed on Morbius Glass, the widening credit crunch that has drastically caused a slew of investment banks and retail banks to write down approximately 36 billion dollars of losses directly connected to the mortgage crisis in America. Which will only widen more to the $400 billion plus range. The world banking system will no doubt feel the strains and severity of the mortgage crisis in America.

According to an article from CNNMoney, the credit crunch could estimate to be a $2 trillion dollar contraction in the banking sector. As bank balance sheets shrink. By know means is the $2 trillion a final figure, write downs and direct losses from loans will continue on.

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