National Post: U.S. subprime problems could spread, IMF chief says - by Jonathan Hurdle

For the complete report from the National Post in Canada click on this link

U.S. subprime problems could spread, IMF chief says - by Jonathan Hurdle

Rising defaults on subprime mortgages for riskier borrowers in the United States could affect other areas of the U.S. economy, the head of the International Monetary Fund warned on Friday. IMF Managing Director Rodrigo Rato said in a speech at the University of Pennsylvania the problems in subprime mortgage markets were one of three risky developments in financial markets, which could eventually affect the global economy.

The implosion of the subprime market means that some half a million Americans are likely to be unable to obtain mortgage financing over the next two years, according to the National Association of Realtors.