Busted: Bankers and The Global Economy

October 9, 2008

IMF Global Outlook Darkens; Stabilization Dims

The world economy is now entering a major downturn in the face of the most dangerous shock in mature financial markets since the 1930s,” the IMF said Wednesday in its World Economic Outlook. Several prime economies are on the edge of economic recession simultaneously. Even so world banking leaders insist on the idea of a recovery sometime in 2009. The IMF warns of “considerable downside risks” to that scenario, which assumes U.S. and European governments will succeed in their efforts to stabilize markets.

The problem behind the U.S. recovery is that the latest economic bailout assumes stability in overseas markets and the ability of foreign investors to lavish funding on the U.S. economy. With a global recession looming, this potential is quickly dimming as the U.S. economy faces still more rescue measures in the effort to stabilize the national economy. A global recession puts the entire premise of a quick U.S. success in dire straits. ~ E. Manning


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