IMF sees US falling into recession

[jordi_fanclub]

Source: AP via Yahoo!

WASHINGTON - The world economy will slow sharply this year, according to an International Monetary Fund forecast, with the United States sliding into a recession amid housing, credit and financial slumps.

The International Monetary Fund, in a World Economic Outlook released Wednesday, slashed growth projections for the United States — the epicenter of the woes — and the global economy as a whole.

Economic growth in the United States is expected to slow to a crawl of just 0.5 percent this year, which would mark the worst pace in 17 years, when the country last suffered through a recession, the global finance body said. The United States won't fare much better next year; the IMF projected the U.S. economy will grow by a feeble 0.6 percent in 2009, when measured by an annual average.

Read more: http://news.yahoo.com/s/ap/20080409/ap_on_bi_ge/world_economic_outlook

[Selatius]

1. Obviously, we need to take out IMF loans, and then the IMF will tell us to privatize to get the loan

Privatize the infrastructure like a third world country and then watch the economy swing violently from one extreme to the next with lots of people standing around getting pissed and losing a lot of money.

:sarcasm:

[Anarcho-Socialist]

2. IMF slashes world growth forecast

Source: BBC

The International Monetary Fund (IMF) has said that the world economy will grow much more slowly in the next two years as a result of the credit crunch. In its latest economic forecast, the IMF says that world economic growth will slow to 3.7% in 2008 and 2009, 1.25% lower than growth in 2007. The downturn will be led by the US, which the IMF believes will go into a "mild recession" this year.

(snip)

The IMF admits that the global downturn might be still more severe than it is currently predicting, and says that there is a one in four chance of a "global recession" when world growth falls below 3%.

"The financial market crisis that erupted in August 2007 has developed into the largest financial shock since the Great Depression," the report says.

The world downturn will be led by problems in the US housing market, but the IMF warns that excessive house price inflation in some European countries, including Spain, Ireland and the UK, has made them more vulnerable to a slowdown.

Read more: http://news.bbc.co.uk/1/hi/business/7338326.stm

---

2008 GROWTH FORECASTS
United States: 0.5%
Eurozone: 1.4%
United Kingdom: 1.6%
Source: IMF

I think a 0.5% growth rate is optimistic. But whatever the actual figure, it will affect the lowest 75% far worse than the upper quarter of earners.

[DemocratInSoCal]

3. Plus, Aren't They Trying To Dump A Bunch Of Gold?

That's fine, more Gold for me. :-)

[samsingh]

4. we're in a recession

i hope its quick and shallow

[robertpaulsen]

5. IMF says US crisis is 'largest financial shock since Great Depression'

Source: The Guardian

America's mortgage crisis has spiralled into "the largest financial shock since the Great Depression" and there is now a one-in-four chance of a full-blown global recession over the next 12 months, the International Monetary Fund warned today.

The US is already sliding into what the IMF predicts will be a "mild recession" but there is mounting pessimism about the ability of the rest of the world to escape unscathed, the IMF said in its twice-yearly World Economic Outlook. Britain is particularly vulnerable, it warned, as it slashed its growth targets for both the US and the UK.

The report made it clear that there will be no early resolution to the global financial crisis.

"The financial shock that erupted in August 2007, as the US sub-prime mortgage market was derailed by the reversal of the housing boom, has spread quickly and unpredictably to inflict extensive damage on markets and institutions at the heart of the financial system," it said.

Read more: http://www.guardian.co.uk/business/2008/apr/09/useconomy.subprimecrisis

[DemocratInSoCal]

6. One In Four Chance??? Can I Have What They're Smoking?

I'd say there's about a 3 In 4 Chance of a Full Blown Global Recession.

[robertpaulsen]

9. Me too!

Kind of like saying if George Washington's head fell off of Mount Rushmore, there's a 1 in 4 chance that it would roll to the bottom of the hill. Sorry, but this locomotive is off it's tracks, and where it lands will not be pretty.

[Warpy]

10. It's already happening but the smart men don't want to admit it.

Admitting that the house of cards started to collapse last August and that nothing but what their dogma tells them is anathema (like raising wages, increasing taxes on the rich to pay for infrastructure repairs, decreasing the money lavished on the Pentagon and rebuilding the economy from the bottom up) will work to stop it.

That's what's in the way of dealing with this thing before it becomes a total catastrophe--DOGMA.

[DemocratInSoCal]

7. These FUCKERS Make Me So God Damned ANGRY!!!

How do these PIECES OF SHIT get these high paid jobs?

QUIT FUCKING LYING YOU BASTARDS!!

MILD??? COME OUT AND TELL THE TRUTH!!

Things are going to get BAD.....REALLY REALLY BAD!!

[fascisthunter]

8. I'm Waiting for a Neo-Con to Say this Article is Wrong

:popcorn:

Bring all those involved to their knees finacially and locked up in jail: justice!

[jtrockville]

11. What was the largest financial shock prior to the Great Depression?

How soon before we exceed the Great Depression?

[robertpaulsen]

12. Good question.

Probably the largest prior to the Great Depression was the Panic of 1907:

Panic of 1907
From Wikipedia, the free encyclopedia
Jump to: navigation, search

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis in the United States. The stock market fell nearly 50% from its peak in 1906, the economy was in recession, and there were numerous runs on banks and trust companies. Its primary cause was a retraction of loans by some banks that began in New York and soon spread across the nation, leading to the closings of banks and businesses. The 1907 panic was the fourth panic in 34 years.

One of the contributing factors of the Panic involved F. Augustus Heinze and his bank, Knickerbocker Trust Company. Heinze copied the speculation tactics of Charles W. Morse, who had obtained control of the Bank of North America and other banks to float consolidations and other schemes. In 1906, Heinze sold his shares in Montana copper mines for $12 million. He then moved to New York, bought Knickerbocker Trust and became a director in a national financial chain. Banking industry leaders, one being J.P. Morgan, threatened by the developing trusts, staged a financial attack on Heinze's Knickerbocker Trust. Their motive was to sway public and congressional opinion against trusts.

In March 1907, over-expansion and poor speculation led to a stock market crash. Money became extremely tight. A second crash occurred in October 1907. This time, the crash was directly precipitated by Heinze's brothers, who had used money borrowed from Knickerbocker Trust in a failed attempt to corner United Copper. In the wake of the crash, Heinze was forced to resign as bank president. On October 21, the National Bank of Commerce ceased to honor checks of Knickerbocker Trust, causing a run on the Knickerbocker Trust. By the end of October 22, the National Bank of North America had failed and runs were sparked on nearly every trust in New York.

To bring relief to the situation, United States Secretary of the Treasury George B. Cortelyou earmarked $35 million of Federal money to quell the storm. Complete ruin of the national economy was averted when J.P. Morgan stepped in to meet the crisis. Morgan organized a team of bank and trust executives. The team redirected money between banks, secured further international lines of credit, and bought plummeting stocks of healthy corporations. Within a few weeks the panic passed, with only minimal effects on the country.

http://en.wikipedia.org/wiki/Panic_of_1907

[jtrockville]

13. Never heard of it before. Thanks!

I see J.P. Morgan is still a player. I wonder if they were also involved in the Great Depression.

[darue]

14. so J.P. Morgan starts the problem, then kindly steps in to 'fix' it as well

how nice.

[unkachuck]

15. look at all these....

....self-inflicked, capitalist-induce catastrophes plaguing the good people of this country....

....cycle after crooked cycle, crooked scheme after crooked scheme, these criminals walk while millions of poor innocent people pay the price....over and over, they sucker our people in, pick their pockets, then pull the plug....

....pay attention young people, they're in the process of needlessly ruining your future and lives; you're another expendable generation....think about it, only shitty economic systems produce shitty results....