MarketWatch: No end of financial turmoil in sight, IMF says

No end of financial turmoil in sight, IMF says

By Greg Robb, MarketWatch


WASHINGTON (MarketWatch) -- Top experts at the International Monetary Fund said Monday that there is no end in sight for the turmoil that had gripped financial markets for the past year.

"Global financial markets remain fragile and indicators of systemic risks remain elevated," said Jaime Caruna, the IMF's point man of the crisis at a press conference.

The U.S. housing market remains the key source of the turmoil. And there are still no signs of an end to the downturn.

"At the moment...with delinquencies and foreclosures rising sharply and house prices continuing to fall, a bottom for the housing market is not yet visible," Caruna said.

IMF officials said they are comfortable with their previous estimate that the financial market turmoil will cost about one trillion dollars in total mark-to market losses.

Bank write-downs currently exceed $400 billion, the IMF said.

One reason that European banks do not seem to be hurting as much as U.S. banks is that they have not yet released much information about 2008, the officials said. .....(more)

The complete piece is at: http://www.marketwatch.com/news/story/no-end-sight-financial-turmoil-imf/story.aspx?guid=%7B48C0C99D%2D74DE%2D4D7C%2DB7E4%2D62DBFDD42ED3%7D&dist=hplatest