Worst of financial crisis yet to come: IMF chief economist

O

orbital 123

Veteran XX
I'd wait on investing in the stock market till 2010 if I were you.

The Raw Story | Worst of financial crisis yet to come: IMF chief economist

ZURICH, Switzerland (AFP) — The IMF's chief economist has warned that the global financial crisis is set to worsen and that the situation will not improve until 2010, a report said Saturday.

Olivier Blanchard also warned that the institution does not have the funds to solve every economic problem.

"The worst is yet to come," Blanchard said in an interview with the Finanz und Wirtschaft newspaper, adding that "a lot of time is needed before the situation becomes normal."

He said economic growth would not kick in until 2010 and it will take another year before the global financial situation became normal again.

The International Monetary Fund on Friday promised to help Latvia deal with its economic crisis after it assisted Iceland, Hungary, Ukraine, Serbia and Pakistan.

But Blanchard said the IMF was not able to solve all financial issues, in particular problems of liquidity.
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hardly surprising. we havent even begun to start fixing shit yet, what do you expect is going to happen until then?
 
2010 is only 1 year and 1 month from now orbital

i highly doubt this will be fixed before then

you have the WORST concept of time i've ever witnessed
 
The new Samsung Eternity phone looks sweet, I think I'll buy it.

Also, I don't think the Impossible Mission Force is a reputable source in regards to the economy.
 
Meh fuck it. I'm not going to be one of those nuts putting cash under the mattress or buying gold like its going out of style. I'm going to keep my automatic investments going. I've already taken a huge hit but I'm young enough that I'm not worried about it. I'd rather keep investing and take advantage of the lower buy prices right now and hope the dollar cost averaging will soften the blow over the long haul. Besides, there really isn't any area to park money in right now that will have any real yield to it.
 
Warrlord said:
hardly surprising. we havent even begun to start fixing shit yet, what do you expect is going to happen until then?
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Anything they do isn't going to work. Paulson already burned through half the money he asked for, and isn't asking for the other half now. He knows he wouldn't get it because he lied about what it would be used for.

The amount of money owed is more than the entire GDP of the entire world, multiple times over.

There is no getting out of this without major restructuring of the world economy. This includes forgiving all debt outright, making the entire system transparent, and moving away from the fiat monetary system.

The entire world is potentially headed towards depression, and the US is certainly going to enter a depression.

Remember that the last depression only ended with WW2. Is there going to be another war go get out of this coming depression?
 
Animo said:
2010 is only 1 year and 1 month from now orbital

i highly doubt this will be fixed before then

you have the WORST concept of time i've ever witnessed
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I was commenting based on what the IMF guy said. I personally believe the US will enter a decade+ long economic depression. The rest of the world will either be in depression or a deep recession for a great many years as well.
 
orbital 123 said:
Anything they do isn't going to work. Paulson already burned through half the money he asked for, and isn't asking for the other half now. He knows he wouldn't get it because he lied about what it would be used for.

The amount of money owed is more than the entire GDP of the entire world, multiple times over.

There is no getting out of this without major restructuring of the world economy. This includes forgiving all debt outright, making the entire system transparent, and moving away from the fiat monetary system.

The entire world is potentially headed towards depression, and the US is certainly going to enter a depression.

Remember that the last depression only ended with WW2. Is there going to be another war go get out of this coming depression?
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actually no, the last depression was over before ww2
 
orbital 123 said:
The only thing that Got the US out of the depression was the War. They produced their way out of it.
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only if you don't actually understand economics or what was going on in the country


20081122-pdbt9j1cqxq7cmceyrfrnt6ftm.jpg


20081119-ef7d74m2gnw9citedndea81xqh.jpg


As you may notice, recovery was occurring before the war. The war (specifically selling to foreign countries pre- Dec 1941) helped accelerate away from the state the economy was in, but it was already out of recession/depression before the first shot was fired in Europe.

There were two recessions in the 30s, one that ended in March of 1933 and one that started in May 1937 and ended in June 1938
 
Kizzak said:
only if you don't actually understand economics or what was going on in the country


20081122-pdbt9j1cqxq7cmceyrfrnt6ftm.jpg


20081119-ef7d74m2gnw9citedndea81xqh.jpg


As you may notice, recovery was occurring before the war. The war (specifically selling to foreign countries pre- Dec 1941) helped accelerate away from the state the economy was in, but it was already out of recession/depression before the first shot was fired in Europe.

There were two recessions in the 30s, one that ended in March of 1933 and one that started in May 1937 and ended in June 1938
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To argue that WW2 had no impact on economic recovery in America is to be ignorant of history. It had a major impact on the economic engine in the US.
 
I never said it had no impact on economic recovery, what I said was the depression was over before the war as recovery was occurring before the war.

War accelerated recovery due to the stability of the country allowing it to supply more of the global demand, but all that did was speed up the recovery - the recovery was already occurring.

Unemployment had been more than halved by 1936 before a short recession kicked it back up temporarily.
 
You can find people on both sides of the Isle. There are many people who argue that the economic policies of the government extended the depression. There are many books written on the subject.

I guess we will get to test that thesis again with this new depression.
 
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