Thursday, June 19, 2008

Sub-prime Legend John Paulson Warns: It's not Over Yet

From the Telegraph:

John Paulson, the hedge fund manager who made almost £2bn from correctly calling the implosion of US sub-prime mortgages last year, warned that the credit crisis is not over.

Mr Paulson predicted losses in the financial sector could reach about $1,300bn (£664bn), compared with the International Monetary Fund's estimate of $945bn....

From the Financial Times:

“Ninety per cent of the mortgage market is supported by two private companies losing vast sums of money operating with no equity.”
-Hedge fund manager John Paulson, on why he’s pessimistic about Fannie Mae and Freddie Mac

HT: Seeking Alpha