It Ain’t Argentina This Time

The International Monetary Fund, the darling lending institution of neoliberal capitalists, believes that the U.S.‘s current mortgage crisis is dragging down the world economy. The IMF is predicting at least a two-year global economic downturn, led by the U.S. credit crunch, that also has a gambling chance of turning into a “global recession.”

BBC:

In its latest economic forecast, the IMF says that world economic growth will slow to 3.7% in 2008 and 2009, 1.25% lower than growth in 2007.

The downturn will be led by the US, which the IMF believes will go into a “mild recession” this year.

The IMF admits that the global downturn might be still more severe than it is currently predicting, and says that there is a one in four chance of a “global recession” when world growth falls below 3%.

“The financial market crisis that erupted in August 2007 has developed into the largest financial shock since the Great Depression,” the report says.

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Bloomberg.com

Falling housing prices have pushed the U.S. into what could be a mild recession. The economic trouble is spilling over into the rest of the world.