Alan Greenspan, the former head of the U.S. Federal Reserve, went on television Tuesday to say that despite the ongoing troubles roiling world markets increased financial regulation is a terrible idea. This was especially noteworthy because earlier in the day the International Monetary Fund said it estimates losses related to subprime troubles might be in the neighborhood of one trillion dollars. No matter how the crisis will be addressed, something sure-fire needs to happen, and fast.
The IMF said in its bi-annual assessment of global financial markets, that market turmoil related to the credit crisis could result in potential aggregate losses of $945 billion; this number exceeds the highest prior estimate by $345 billion. The Street's consensus is that the subprime saga has cost $170 billion to date.
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