1.0link72954<![CDATA[U.S. Could Face $2 Trillion Lending Shock]]>http://www.huffingtonpost.com/2007/11/16/us-could-face-2-trillion-_n_72954.htmlThe impact of the U.S. mortgage market crisis on the underlying economy could be "dramatic" as leveraged investors may need to scale back lending by up to $2 trillion, according to investment bank Goldman Sachs (GS.N).
In a report dated November 15, Goldman's chief U.S. economist Jan Hatzius said a "back-of-the-envelope" estimate of credit losses on outstanding mortgages, based on past default experience, was around $400 billion.