Friday, 16 May 2008

Worse Than 1989-1990?

"Myron Scholes, chairman of Platinum Grove Asset Management LP and 1997 winner of the Nobel Prize in economics, said the worst of the crisis in credit markets may not be over.

'From my perspective, I think that we don't know if the storm has passed or if we are still in the eye of the storm,' Scholes said

'In my view, this is probably as bad or worse than the 1989-1990 crisis and may even rival the worst crisis we've seen since the end of the Second World War,' Scholes said.

Former Fed Chairman Alan Greenspan has also said the turmoil is the most 'wrenching' since the war.

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