World credit crunch raises fears of global recession

REASONS for the rout engulfing global stockmarkets are not that hard to find.

The word subprime must be etched forever in the minds of those regularly exposed to the markets since the crisis hit in early August.

It was reported on Tuesday Citigroup’s bad debt exposure to the US housing sector was $15 billion (€10.11bn) and not $11bn as previously estimated.