Aug 31, 2007 -- /prbuzz/ --The subprime mortgage crisis could act to send the world into recession, it has been claimed.
According to David Wyss, chief economist for Standard & Poor's, the subprime mortgage market turmoil is far from over - and he even suggests that the worst might still be to come.
"This isn't over yet. What we're seeing so far is largely the start of the problem," Mr Wyss confirmed in an interview with the World Today.
"The real problems are the mortgages that were written right at the peak of the housing cycle, back in late 2005 and 2006," he continued.
"We're just starting to see those delinquencies build up right now. But what has the markets spooked, is not what's happened yet - it's projecting this trend.
"I think that the rest of the economy is still quite buoyant, but there's obviously now a higher risk that this could turn into an outright recession."
However, Mr Wyss is also of the opinion that the Federal Reserve is adequately equipped to ensure a recession is avoided.
The news comes as Sydney-based hedge fund Basis Yield Alpha filed a petition for bankruptcy protection in New York.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
You are permitted to print or download extracts from these pages for your personal non-commercial use only. You may not (whether directly or through the use of any software program) create a database in electronic or structured manual form by regularly or systematically downloading and storing all or any part of the pages from these pages and/or Aranca's site. No part of these articles and features listed herein, may be reproduced or transmitted to or stored in any other web site, nor may any of its pages or part thereof be disseminated in any electronic or non-electronic form, nor included in any public or private electronic retrieval system or service without prior written permission.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
Aranca Syndication Service at
This email address is being protected from spam bots, you need Javascript enabled to view it
. Tel: +91.22.4005 2219 / +91.22.6725 8115
If you have questions regarding any of the information found in these press releases please contact the person listed in the press release. The Issuer of the press release and not PRBuzz.com are responsible for the accuracy and content of the press release. Press release distribution services provided by PRBuzz.com
Download PDF Version
Email this story to a colleague
Printer Friendly Version
