At the GAIM International hedge fund conference Wednesday in Monaco, John Paulson, founder of hedge fund Paulson & Co., stated that the worldwide losses and write-downs of the subprime crises and liquidity shortage are far from over.
Declaring that the financial services industry is only about a third of the way through the write-downs, Paulson estimates total losses to reach around $1.3 trillion, exceeding the IMFs estimate of $945 billion.Banks and firms worldwide have only declared $395 billion in losses thus far, showing there are still rough economic times ahead.
Paulson & Co was one of few companies to accurately predict the fall in housing prices allowing them to make profits off of the subprime crisis.
