Reuters reports that Josef Ackermann, the CEO of Deutsche Bank, says that the credit crunch is almost over. It would have been worth reminding readers that Mr. Ackermann was completely caught by surprise by the onset of the mortgage crisis and the credit crunch. This would have provided them with more context with which to assess his perspective.
Some of those who did see the mortgage crisis coming have pointed out that house prices are still falling rapidly and this is leading to a situation in which more mortgages are underwater and those that are already underwater are becoming even deeper underwater. This is an environment that invites defaults which will led to substantial losses for lenders. For this reason, the losses going forward are likely to be considerably larger than the losses seen to date.
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved