(1888PressRelease)
September 14, 2007 - Major investment banks have raised their average growth forecasts for South Korea in 2008.
The drop in confidence in credit markets will last longer than any of the previous financial crises of the last 20 years, the US Treasury Secretary has warned.
According to Hank Paulson, who based his prediction on his experience as an investment banker during the Asian and Russian financial crises in the 1990s and the Latin American debt crisis of the 1980s, the current period market turmoil will "take longer to resolve".
Mr Paulson added that the time it takes confidence to recover will be prolonged because of the "more globalised" nature of today's financial markets, which has meant that US mortgages are even having an impact in such unlikely places as state-overseen regional banks in Germany.
He also identified the complexity of the financial products involved as a contributory cause, stating that he was having daily meetings with bankers who are attempting to value asset-backed commercial paper.
Mr Paulson's comments came as Jean Claude Trichet, president of the ECB, stressed the need for stringent regulations to be put in place by global banking authorities to prevent a repeat of the recent American situation elsewhere.
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