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Steinbrueck: Financial crisis end distant

Oct. 25, 2008 at 3:28 PM
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BERLIN, Oct. 25 (UPI) -- German Finance Minister Peer Steinbrueck says the world's ongoing economic malaise likely will not end until late 2009.

Calling the world's current economic status a "dangerous situation," Steinbrueck said there shouldn't be talk of an economic recovery just because of his country's implementation of a nearly $610 billion bank rescue plan, Deutsche Welle reported Saturday.

"The risk of collapse is far from over. Any all-clear would be wrong," Steinbrueck said. "We're still dealing with a dangerous situation."

The German banking package was created to last through 2009, but the finance minister warned that the initial impact of the plan may take time to become apparent.

Deutsche Wells said Steinbrueck also suggested that the final cost of the bailout plan could increase dramatically and the exact details of the economic efforts may not be immediately noticeable.

"We won't know whether the rescue plan will entail real costs until between 2010 and 2013 or whether the state can sell the stakes it receives in banks in return for the rescue package and make up the losses," he said.

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