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

[NightWatcher]

Why must we read the British papers for US news?
from the Guardian

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

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.

[datasuspect]

1. wasn't much of the basis of our financial system based on the valuation

of this subprime debt used as collateral?

[Supersedeas]

2. nothing to see -- feed them sports, feed them weather, feed them happy shiny ads

[datasuspect]

3. halcyon ads

of beautiful people in elegant surroundings creating their individuality through hygiene products and prescription medication.

[ayeshahaqqiqa]

4. unspoken here, but understood

People are hurting. They don't have to listen to the news or read the paper to know that something is very wrong. People aren't eating out as much--I go past restaurants whose parking lots used to be crowded, and now no cars are there. The only stores that appear to have much business are the second hand clothing stores and grocery stores. And I know of two folks who have filed for bankruptcy. One was a merchant, and his store is closed. Know of another store that is closing as well. This effects our pest control business, because all were good customers with us-one with several accounts.

[kineneb]

5. US MSM is a propaganda machine, not news.

more like Pravda in the "bad old days"...

deep irony- now Pravda (the newspaper version) has more "truth" than the MSM...