It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Worst has yet to come: IMF chief
RISK:: Governments should be ready for ‘full-fledged’ intervention and to act quickly in selling or winding up insolvent lenders, Dominique Strauss-Kahn said
www.bloomberg.com...
IMF Says Advanced Economies Already in Depression (Update1)
Feb. 7 (Bloomberg) -- Advanced economies are already in a "depression" and the financial crisis may deepen unless the banking system is fixed, International Monetary Fund Managing Director Dominique Strauss-Kahn said.
“The worst cannot be ruled out,” Strauss-Kahn said in Kuala Lumpur, where he was attending a gathering of central bankers from Southeast Asia. “There’s a lot of downside risk.”
Ten days ago, the IMF cut its world-growth estimate for this year to 0.5 percent, the weakest pace since World War II. Stimulus packages alone won’t succeed in dragging the global economy out of recession unless confidence is restored in the banking system, Strauss-Kahn said today.
“All this will work if, and only if, the different countries are likely to do what they have to do in terms of restructuring the banking sector,” he said. “And today it’s not done.”
The U.S. economy has lost 3.57 million jobs since a recession started in December 2007, its biggest employment slump of any economic contraction in the postwar period as companies from Macy’s Inc. to Caterpillar Inc. cut costs. The U.K. economy will shrink this year by the most since 1946, the IMF forecasts.
“There is hope that the fiscal and monetary stimulus measures being implemented around the world can help turn things around,” said David Cohen, Singapore-based director of Asian economic forecasting at Action Economics. “But there is still the risk it can be short-circuited by further financial turmoil.”
Originally posted by Hx3_1963
“There is hope that the fiscal and monetary stimulus measures being implemented around the world can help turn things around,” said David Cohen, Singapore-based director of Asian economic forecasting at Action Economics. “But there is still the risk it can be short-circuited by further financial turmoil.”
Originally posted by dooper
If we hold to the behavior and protocol of the past eight years, then this depression is the fault of Obama.
Everything else on Bush's watch was his fault, so this downturn must fall on the shoulders of Obama.
His turn!
Originally posted by dooper
If you need to pump money into the economy quickly, you can either print more, which makes it all nearly useless, or you cut taxes and withholding, which immediately pumps money into the economy, by putting more cash in the hands of the people.
For every dollar returned to the people, it churns and churns throughout the economy, often seven or eight fold.
In such a manner, the economy is radically stimulated, and inflation is held at bay.
Originally posted by dooper
If we hold to the behavior and protocol of the past eight years, then this depression is the fault of Obama.
Everything else on Bush's watch was his fault, so this downturn must fall on the shoulders of Obama.
His turn!
Feb. 7 (Bloomberg)
Job losses in the last 13 months totaled 3.6 million, the most since 1945, the government said last week. Job losses have fueled record foreclosures. There were 2.22 million new foreclosures in 2008, an average of 6,090 a day, according to Washington-based Hope Now Alliance.
The economy is “severely depressed,” and the U.S. faces “horrific” deficits over the long term, Yellen said in response to audience questions.
“We are not in a depression,” she told reporters after the speech, noting that unemployment hasn’t risen to levels associated with the term.
“Where we are now and where most forecasters expect the economy to go would not qualify this episode as a depression,” she said. “But I think we do have the same type of dynamics taking place that do happen in a depression.”
Feb. 5 (Bloomberg)
The Fed said the M2 money supply rose by $19.8 billion in the week ended Jan. 26. That left M2 growing at an annual rate of 9.3 percent for the past 52 weeks, above the target of 5 percent the Fed once set for maximum growth. The Fed no longer has a formal target.
The central bank reports two measures of the money supply each week. M1 includes all currency held by consumers and companies for spending, money held in checking accounts and travelers checks. M2, the more widely followed, adds savings and private holdings in money market mutual funds.
During the latest reporting week, M1 fell by $1.5 billion. Over the past 52 weeks, M1 rose 14.5 percent. The Fed no longer publishes figures for M3.
Originally posted by Hx3_1963
reply to post by tjeffersonsghost
It appears the "higher Ups" have been sitting on this information for some time and for some reason this Rep. blurted it out in frustation. I do indeed wonder how this will play out in the coming week. I wonder if anyone has passed this to the MSM? I doubt they'd give it any coverage, probley under some Gov/Fed "blackout" mandate.
[edit on 2/8/2009 by Hx3_1963]