World Bank

Obviously some of the entities of the American banking system not they resist wait until full implementation of the plan for cleaning up the banking system recently approved. Concerned about the situation of the American banking system for two reasons that I have already mentioned in other articles: the possibility of new episodes of crisis occurring in the banking system which lead the economic recession, and the inability of the same exhibits in this context to reactivate the credit wheel necessary for economic recovery. But the continuing instability of the financial system generates an additional concern is the risk of causing a bank run, not very considerate but latent possibility and increasingly with greater probability of occurrence. In another of the negative developments released yesterday, Fannie Mae (NYSE: FNM), announced that it lost US $58.707 million in 2008 (in 2007 had lost US $2,050 million), despite the increase of 55% in its net income. The mortgage giant requested the Government US $15.200 million to do faced with your difficult financial situation. The entity currently possesses a liability that exceeds its assets.

Can you trust that this entity can generate in the short term, mortgage loans to recover the real estate sector? And what has happened on the other side of the Atlantic? Bad news also abounded in the last hours. Finland and Denmark officially entered recession, rising unemployment in the Group of countries that make up the European Union (which is located at 7.6 per cent of the economically active population) and the eurozone (8.2 per cent of the economically active population), drop in the inflation rate both in the EU (- 0.6% in January), as in the eurozone (- 0.8% in January) with an increased risk of deflation and problems in Eastern Europe that forced the realization of a Bank Bailout in the that the World Bank, the European Bank for reconstruction and development and the European Investment Bank it jointly intervened. In this regard, the situation of the banking system in the economies of Eastern Europe particularly concerned about some economies of Western Europe since the majority of banks of Eastern Europe are in the hands of institutions in Europe from the West (mainly of Austrian, Italian and Swiss entities). Certainly the crisis is uncovering the fragility of the developed economies and the disproportionate level of exposure to certain risks of financial systems. Already in more than one year and a half of the crisis erupted, is difficult to determine the magnitude of it. Every moment becomes more comparable by their costs to the 30 crisis and it should not surprise that it exceeds it in several respects. What new episodes we surprise next week? Hard to imagine as well is hard to imagine that once and for all, the leaders of major economies decide together to coordinate their economic policies. The private sector must also do their part and commit to economic recovery. He saved himself already proved to not work can be learned the lesson?


View all posts by