The U.S. subprime crisis is being felt around the world, regardless of early reports to the contrary. It seems that many early reports were an attempt to buy time, downplaying the seriousness of subprime around the world while banks and investors bought and sold. Here is one take from the International Monetary Fund:
Japanese Financial Services Minister Yoshimi Watanabe said on Tuesday the impact from the U.S. subprime loan crisis is expected to last for a considerably long time. Watanabe’s comments came after the International Monetary Fund on Monday said the turmoil in global credit and money markets will likely continue as investors worry about the size of financial losses and where they might arise.