Posted on 04/20/2009 3:33:02 AM PDT by TigerLikesRooster
Recession likely to be long, recovery slow - IMF
Thu Apr 16, 2009 3:50pm BST
WASHINGTON, April 16 (Reuters) - The current global recession is likely to be unusually long and severe and the recovery sluggish because it sprang from a financial crisis, the International Monetary Fund said on Thursday.
New IMF analysis shows recessions tied to a financial crisis, like the current one that has its roots in reckless lending for the U.S. housing market, are more difficult to shake because they are often held back by weak demand.
Worse still is that today's recession combines a financial crisis at the heart of the United States, the world's largest economy, with a broader global downturn making it unique, the Fund added.
"The analysis suggested that the combination of financial crisis and a globally synchronized downturn is likely to result in an unusually severe and long lasting recession," the IMF said in chapters of its World Economic Outlook, which is to be released in full on April 22.
(Excerpt) Read more at uk.reuters.com ...
Ping!
Recession likely to be long, recovery slow = democrats in action.
Since the IMF is invariably wrong, I take this as a good sign that it has already hit bottom.
Seriously, I expect a rather quick recovery in the second half, but that the recovery will be dampened by the many stupid things the government is doing to screw with the economy. Long term is messy with what will be too much liquidity floating in the market at the end of this year and an anti-market government in charge in washington.
Time will come when stock market will go crazy with the news of 0.1% pickup in annual economic growth even against the backdrop of 20+% inflation.
btt
Ah but that puts you in full agreement with CNBC. They started finding signs of a bottom in the housing market in 2006.
Re #5....that’s how I see it in the future....there’s nothing in place now here in the US, but, ignorance, denial, corruption and the push towards communism....doesn’t bode well for a once capitalist free market system.
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