IMF Cuts Global Forecast on Worst Crisis Since 1930s

[Purveyor]

Source: Bloomberg News

April 2 (Bloomberg) -- The International Monetary Fund cut its forecast for global growth this year and said there's a 25 percent chance of a world recession, citing the worst financial crisis in the U.S. since the Great Depression.

The world economy will expand 3.7 percent in 2008, the slowest pace since 2002, according to a document obtained by Bloomberg News at a meeting of Southeast Asian deputy finance ministers and central bankers in Da Nang, Vietnam. In January the fund projected growth of 4.1 percent.

The reduction is the third by the Washington-based lender since last July, when it predicted the world economy would cope with the U.S. credit squeeze and grow 5.2 percent this year. Central banks will need to conduct policy ``as flexibly'' as the circumstances warrant, the statement said, adding that the European Central Bank has room to lower borrowing costs.

``The financial shock that originated in the U.S. subprime mortgage market in August 2007 has spread quickly, and in unanticipated ways, to inflict extensive damage on markets and institutions at the core of the financial system,'' the statement said. ``The global expansion is losing momentum in the face of what has become the largest financial crisis in the United States since the Great Depression.''



Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=anChWnDU1_os&refer=news

[Purveyor]

1. Oh but the 'hate-wing' radio hosts will continue to tell us there is no recession and

it is just the imagination of the 'liberal media'...

[Red Zelda]

2. I don't see a recession

...I'm too busy holding down three jobs to see anything.

[tanyev]

4. Hey, George Bush has a message for you!

"Uniquely American, isn't it? I mean, that is fantastic that
you're doing that. (Applause.) Get any sleep? (Laughter.)"

[SpiralHawk]

3. "This is all the fault of the Clenis. Smirk." - Commander AWOL & republicon propagandists

"We republicon homelander chickenhawks had (smirk) nothing to do with this. Smirk."

- Commander AWOL

[jaybeat]

5. No one could have anticipated...

"The financial shock that originated in the U.S. subprime mortgage market in August 2007 has spread quickly, and in unanticipated ways..."

We never knew people would use planes as weapons.

We never knew inciting Islamic extremism against the Soviets in Afghanistan could come back to bite us.

We never knew the levies could break.

We never knew oil prices could go this high.

We never knew that a banking and investment system that made wealth out of thin air could collapse.

We never knew that electricity companies were manufacturing false shortages to drive up prices and profits.

We never knew that Iraqis wouldn't welcome us as liberators.

We never knew the occupation would need so many troops.

We never knew that dismantling the Iraqi army and civil service would fuel and insurgency.

We never knew that letting looting go uncontrolled in Iraq would arm the insurgency.

We never knew that invading Iraq would attract anti-American insurgents from other countries.

We never knew that folks at Enron and WorldCom were lying.

We never knew that burning more and more fossil fuels would cause the climate to change.

We never knew that cutting taxes would increase the budget deficit.

We never knew that cutting welfare would put more people in poverty.

We never knew...

[Caradoc]

6. Thank Bush!

Painful as it may seem (and will likely get), Bush has done the world a huge service by finally proving to even the most dunderheaded that Friedman Free-Market Economics are a total joke and should never, ever be taken seriously again.