IMF Says Advanced Economies Already in Depression

[TwixVoy]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6aaWZ8ab8yU&refer=home


"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. "

[Selatius]

1. One confidence building measure could possibly be to abolish the IMF.

They've already sapped enough developing economies by pushing privatization schemes on poor countries so that multinational companies can then drain away the victim nation's wealth. It's just colonialism under a corporate banner instead of a national flag.

[Sarah Ibarruri]

2. The banks need to be so regulated, their CEOs will need to ask for permission to go pee nt

[snot]

3. Confidence in the banking system??? We still don't even know the extent of their LIABILITIES.

[izquierdista]

4. Banks are confidence men for sure

And they need the same measures taken as with most confidence men: a long time in a small room -- with bars on the windows.