IMF: U.S. Crisis is ‘Largest Financial Shock since Great Depression’
April 10th, 2008Hold on to your wallet.
Via: 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.
After warning earlier this week that the world’s financial firms could end up shouldering $1 trillion (£500bn) worth of losses from the credit crunch, the IMF said it expects the US to achieve GDP growth of just 0.5% this year, and 0.6% in 2008, with the housing crash getting even worse.
The IMF says we’re headed for a “mild recession”. And I’m sure by the time the Federal government sexes up those economic stats, the media will be reporting that its “booming”…even as people are laid off in droves and we have food riots around the country.
Scuse me if I sound rude and speak out of place, but I think I’m the oldest person who posts to Cryptogon (53). So when the IMF says this is the worst crisis since the Great Depression – who is their audience? Think on it. Anyone who lived through the experience of the Great Depression with half a brain left, or alive, (due to drugs, pollution, wars, drugs, etc) is well into their late sixties at the earliest, and their 90’s or 100 years of age at the latest- I use the year 1939 to make my case).
Who in their 20, 30, 40, or 50’s want to go and look at what happened then?
I grew up with parents ( a father 45 years older, a mother 38 years older than I who lived through the Great Depression of the 1930’s) and wished to GAWD my parents would SHUT UP about the Great Depression already.
Those stories! Where people were starving. Had to save wages for a WEEK just to put a GALLON of gas in the car (10 cents) to go to the dance on Saturday!
People going to the window at the bank. Solly Charley. All the money be gone! No cashee checkee.
I think the IMF should recaption their warnings, announcements, etc, more in keeping with our times, where, obviously, as per another article posted on this website re history, most people don’t have a clue or could give two shits about what the GREAT DEPRESSION WAS.
THIS MY SCENARIO FOR THE NEXT DEPRESSION:
GREATEST SHOCK: YOUR TELEVISION SERVICE WILL COST YOU $1000 per month. Click here to get the latest and greatest SPORTS NEWS.
YOUR FOOD WILL NOW COST YOU $3000 per week for a family of four. This of course will only be the finest GMO food shipped directly to you from Rockefeller Square, were we only include the latest and greatest food grown solely from genetically modified corn, wheat, whatever. We’ve nuked it all! EAT UP FOLKS.
Your savings, ALL OF YOUR IRA’S, 401K’s, Federal Pensions,Social Security, Medicaire, Medicaid, – virtually EVERY FREAKING SOCIAL PROGRAM OR PERSONAL SAVINGS—GONE!!!
That is what happened in the Great Depression. Well, Christ, Social Security and Medicaire and Medicaid programs sprung from the GREAT DEPRESSION. Was supposed to be a SAFETY NET! And, in the last 20 years or so, the folks in power at the banks and in the government have destroyed the meaning of savings yet again.
So yes, you could call me the ULTIMATE DOOMER. But I cannot for one instant fathom that there is going to be anyone out there to take CARE OF YOU. And who’s heart will beat any less WHEN THEY STEAL YOUR LIFE SAVINGS.
It is perfectly legal to convert a 401K to Roth IRA. Sure, you gotto pay the taxes on conversion of pretax income.
But &uck!!
We got to get the money out of THE BANKS. They are the CROOKS AND LIARS. WALL STREET IS NO BETTER.
Amen, Eileen.
Wanna really induce MEGO (my eyes glaze over) in the folks? Just try explaining why naked short sales of stocks are detrimental to the health of their mutual fund investments. Or, what is the REAL value of M3, now ?
The only thing missing in your argument is: you won’t have to worry about people starving, or the revolts, rebellions, police actions, etc amongst the starving, because the new plagues of heretofore unknown (at least, in this country) diseases will get everyone: plague is a terrible weapon, it cares not whom it kills.
note to kevin: perhaps it is time to attempt increasing your readership amongst the roaches.
🙂
cybele