The credit crunch: what they’re saying

FEDERATION OF SMALL BUSINESSES, spokesman
"On a scale of one to 10, with 10 being blind panic, we are at a seven at the moment. It could get worse."

DAVID FROST, Director General of the British Chambers of Commerce
"Quite clearly we are in for a very bumpy ride."

ALBERT EDWARDS, global strategist at Dresdner Kleinwort
"This is the big one: all investment portfolios will be shredded to ribbons."

DAVID BLOOM, currency chief at HSBC bank
"The concern is that this could spread into equities, which have been insulated so far. Then we have a major problem."

KHURAM CHAUDRY, equity strategist at Merrill Lynch
"A US slowdown is a big problem... central banks thought they could deal with the sub-prime issue and the credit crunch, but now they see recession on its way."

TJ MARTA, strategist at RBC Capital Markets
"A vicious downward spiral could result, leading to the liquidation of other assets and positions."

RYOHEI MURAMATSU at Commerzbank in Tokyo
"The damage on European banks may spread... It's a negative for the Euro."

HARRY SCHULZ, investment consultant
"In my opinion, we've entered that twilight zone and it will get worse and we'll see a torrent of foreclosures over the next 12 to 24 months... Assume the worst scenario is possible and plan for it."

JIM PUPLAVE, analyst at Financial Sense Newshour
"This reminds me so much of the Great Depression days when the stock market began to unravel."

JIM CRAMER, hedge fund manager, speaking on YouTube
"'Bernanke is being an academic!' he screamed. 'It is no time to be an academic... He has no idea how bad it is out there. He has no idea! My people have been in this game for years. And they are losing their jobs and these firms are going to go out of business, and he's nuts! They're nuts! They know nothing!... The Fed is asleep!'"

JOHN STOMBER, MD of the Carlyle Group
"We believe the recent liquidity disruption is significantly worse than the events of 1998."

FINANCIAL TIMES editorial
"The question is no longer whether the turmoil in the money markets will affect the everyday world of jobs and high street spending. It is how serious the effects will be."

FIRST POSTED SEPTEMBER 11, 2007