Credit crunch could end in months

by Richard Kilner

Story link: Credit crunch could end in months

Brady Dougan, chief executive of Credit Suisse, has stated that he believes the credit crunch could be over in as little as a few months.

Dougan believes that the tightening of credit has begun to ease slightly, although the underlying root causes that sparked off the subprime mortgage crisis and credit crunch have yet to be addressed.

The US housing market could settle down in the middle of 2008, he went on to say, but it would be prudent for firms to assume the crisis lasts somewhat longer.

Globally the crisis has cost financial institutions over $100bn, with many estimating that the ultimate cost could be more than triple the losses already incurred.

When confidence returns, the financial situation will soon be back on track, Dougan believes.