Worst of financial crisis yet to come: IMF chief economist
 

Time to pack, go to a cheaper palce, shove canned food in the storage, buy couple guns and sit tight surfing porn till it comes.

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

Will it ever be like before? Nothing changed to good after 9/11. This start-up is dying.


http://timesofindia.indiatimes.com/B...ow/3746893.cms

The IMF IS the problem. How can you not have funds when all of it is fake. All this fuckwit is doing is warning you they aren't going to solve the problem.

The current economic situation isn't as bad as you are being told... the ecomony was in FAR WORSE shape in the mid 80's!!!

People have such short term memories... I guess some more econ & history would have been beneficial in school.

Ive been thru that asslike '98 one so im fucking scared of this deepshit news. Our currency is going to drain losing 5% each day comparing to US dollar.

ahhhhhhhhhhhhhhhhhhhhhhh the sky is falling faster and faster everyday!!!!

come on guys

Things could get really bad... if the governements continue to try to fix things through regulation, then it will stay worse for even longer. The thing to be weary off, is if we continue to see this recession turn into serious deflationary phase. If thats the case, I would not be surprised to see 15-20% unemployment in the USA. There will be companies closign down left and right.

makes one wonder why the chief economic officer is saying this type of thing. Thought they'd all have gag-orders

regulation didn't fix the great depression?

The depression WAS the fix.
The fix to a bloated economy that was created by the US printing more money than it actually had.

The depression was caused ( On purpose ) by the fed taking money out of circulation, by the end of it there was $14 for every man, woman, or child.

but much like today, that wasn't spread evenly, Some had fortunes while others starved.

After they got everything back under control, they printed amounts that were more realistic and "fixed" the depression.

The next great depression is coming. Accept it and prepare.

I prepared 3 years ago when I moved to Panama. ;-)

The great depression lasted till 1940. Black Friday was 1929... long ass fix man. No shit though the economy is big time in the pooper

This is going to be a bit different than the depression. I'll tell you the way I see it playing out if we don't put a stop to it. As of right now the Federal Reserve (a private bank) holds 80% of the US mortgage loans right now (in leu of the government). Once they unload this next round they will be in the mid to high 90's. They will flood the market with cash. This will throw the prices of goods into hyper-inflation. Those that did prepare or had homes paid off will have to draw on those homes to live. Those that didn't will default. Eventually all resources tapped. Everyone is dependent on the Government.

it's funny how the date of the recovery keeps getting bumped back. we'll find ourselves in 2018 and still in a recession ...

OUR black friday hasn't happened yet

Lack of regulation helped us get into this month. Allowing companies to become "too big to fail" without ensuring they are safe.

:1orglaugh we were a creditor nation then now we are a debtor nation we are far worse now.

:thumbsup right on the money (or lack thereof) :upsidedow

Strange, I don't remember any banks failing in the 80's.

Unemployment-wise yes, but give another 6 months and even that may be worse than the 1980s. Keep in mind that employment statistics are far more skewed now than they were back then.

So whatever the govt says the unemployment rate is, add several percent ... and the mismatch between the govt stated rate and real rate of unemployment will likely grow even larger next year ... ie. say hypothetically in Mar-2009 the govt reports 8%, the actual will likely be more like 15% ...

And unemployment numbers don't include under-employment ... add that in, and the unemployment rate is even worse.

Bottom line is that 1980s high levels of unemployment is much closer to reality than many realize.

CDOs didn't exist until the 1980s, and only become widely popular in the late 1990s. CDOs add a whole new dimension never seen before.

Back in the 1980s, an experienced accountant / financial analyst could look at most any bank and determine with much confidence what their assets and liabilities were.

Fastforward to now ... even the best and brightest in the business can't make heads or tails of what the status of many banks are; even the banks themselves often have no idea.

Speaking of the 1980s, the government loan (bailout) of Chrysler back around then (1979; repaid by 1983) to the tune of around $1 billion (that amount even in 2008 dollars would still be single-digit) was a very big deal.

These days, the government is handing out tens, even hundreds, of billions every week as if it's just another routine thing.

I remember the 1980s very well - what we're experiencing now is very different, and likely will end being up far worse.

Ron

Lots of crazy ideas out there. The fact is that the global financial system has fundamentally changed. Things are looking extremely, extremely grim.

The best advice I can give out is that if you haven't closely been following the economy for the past 2 years, be extremely cautious. The mass market stuff is pure bullshit (Fortune magazine, Henry Paulson.)