Posted on 03/27/2023 3:24:48 AM PDT by EBH
Kristalina Georgieva, the managing director of the Washington-based lender of last resort, said rising interest rates have put pressure on debts, leading to “stresses” in leading economies, including among lenders.
Georgieva said the world economy would expand by just 3% in this year as rising borrowing costs, combined with the war in Ukraine and scarring from the Covid-19 pandemic would suffocate growth.
Adding to a growing chorus of warnings from economic leaders, the IMF chief said it was clear that risks to financial stability had increased after the recent collapse of Silicon Valley Bank and Swiss-government brokered rescue of Credit Suisse by UBS.
Investors will also be watching shares in Deutsche Bank when European markets reopen on Monday after shares in the German lender led the sell-off in banking stocks on Friday.
“At a time of higher debt levels, the rapid transition from a prolonged period of low interest rates to much higher rates – necessary to fight inflation –inevitably generates stresses and vulnerabilities, as evidenced by recent developments in the banking sector in some advanced economies,” Georgieva said, speaking at a conference in Beijing.
(Excerpt) Read more at msn.com ...
Interesting term and setting up the dialogue to blame them as the cracks in the global financial system grow.
All this chatter really indicates is that they do not know what to do to stop the impending events.
And yet they will push the argument that we need to trust the same people who created the problems to fix them, and do exactly what they say.
Hey Kristalina Georgieva,news flash, Water is Wet Too!!!!
Shadow banks, the Boogeyman of the Left. They allowed the shadow banks. So, who is responsible????? Look in the mirror may help.
Actually read the other article I posted.
It seems to me the markets finally are recognizing they do not know what the Fed and Treasury are doing. They are preparing for the demise of the Fed.
How does one do that in light of everything and all these moving parts.
nothing gets by her........
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