$841 billion, thats the amount of losses the financial services industry has already taken from the global credit crisis, according to a report in the Financial Times on 13th November. The amount is staggering to say the least, its feared there's more to come. The International Monetary Fund now estimates likely total losses in the financial sector could be $1400 bn, about 47% higher from the April estimate of $950 bn.
The present crisis can be classified as one of unprecedented proportions. Another fallout has been a massive reduction in jobs, it is being speculated an additional 70,000 jobs could be trimmed in the US alone as banks tighten their belts further. These losses are in addition to the 150,000 already lost globally. Needless to say several industries have been shaken to the core, a prime example being the hedge fund industry. Hedge Fund Research estimates the average hedge fund is down about 15% this year, the worst performance ever. Things dont look too good for the future either. Billionaire investor George Soros in a testimony to a House Oversight and Government reform committee said hedge funds will be decimated by the current financial crisis and be forced to shrink their portfolios by 50-75%.
The crisis has spread to the real economy and the likely onset of a global recession looms. What else has the global economy got to endure, only father time can tell!
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