Wednesday, May 14, 2008

Chronicles Of Depression 2.0: #099

May 14, 2008 -- Wall Street's banks and brokers aren't out of the woods yet, a former director of the Federal Reserve Board told The Post.

Even after already grappling with losses and writedowns of around $350 billion, financial firms may need to solicit more cash from deep-pocketed investors to bolster their business, said Vincent Reinhart, former director of the Fed Board's Division of Monetary Affairs.

"Losses [that financial firms] are talking about are bigger than what's already been admitted," said Reinhard, who added that financials may face another $659 billion in writedowns and losses.

Emphasis added by me.

Anyone who's been reading this blog for a while shouldn't be shocked by that news.

I've already mentioned two trillion here, one trillion here, and two to six trillion here.

It's not over. Not nearly.

No comments: