Goldman Sachs US chief economist Jan Hatzis said on 10 November 2008 that the losses from the global credit crisis will total $1.4 trillion USD, of which only $800 billion have been realized so far.
This means further pain ahead for both the banking sector and the economy as a whole, Hatzius said, adding that further fiscal stimulus will be needed to prevent an even deeper downturn.
"This calls for a large amount of economic stimulus," Hatzius told a financial industry conference.
Originating from the US, the sub-prime crisis has evolved into a credit crisis which has spread and affected the mature economies and now heavily affecting the real economies. Lately, the emerging economies are starting to feel the impact from this crisis. As the crisis worsens, institutions estimations of losses from this crisis have been constantly revised upwards.
The Organization for Economic Cooperation and Development in the first half of 2008 estimated the losses to be about only 422 billion USD. IMF raised the estimation to about 945 billion USD.
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