John Thain, chairman and chief executive of U.S. investment bank Merrill Lynch & Co., believes that while the Federal Reserve rate cut and congressional stimulus package should help soften the slowdown in the U.S. economy, problems related to the housing market will continue through 2008.
"I don't think we've seen the end of the losses in mortgages and mortgage-related products," Mr. Thain said Friday in an interview with CNBC at the World Economic Forum in Davos, Switzerland.
"I think that U.S. economy, as it slows, will hopefully be cushioned so it doesn't impact the global economy, but I think we are going to continue to see problems over the course of 2008," he said.
