IMF (early April 2008):
The European financial system’s stress test is not over. Concern about the impact of the crisis on the real economy – There is a clear possibility that a worsening of the credit crunch will amplify the slowdown. BoE (FSR) (late April 2008) Spanish Banking Association It is most likely that market conditions will improve in the future… although the possibility that the situation will worsen remains. Henry Paulson (May 8, 2008) We are closer to the end than the beginning… although there may still be unpleasant surprises. Ben S. Bernanke (May 13, 2008) The turbulence is easing, but the situation is still far from normal.
In any case, the Authorities and Financial Institutions acknowledge the seriousness of the crisis: it is not merely turbulence; they acknowledge the damage caused by the crisis to: the real economy: recession in the USA; Spanish Banking Association, slowdown in Europe: ¾ pp of GDP in 2008 and 2009 – 25% probability of a global recession; losses for financial institutions: $945bn (around $500bn in banks).
The causes of the crisis are analysed and denounced.
