Sunday, November 23, 2008

Worst of financial crisis yet to come: IMF chief economist

Worst of financial crisis yet to come: IMF chief economist: "The IMF's chief economist has warned that the global financial crisis is set to worsen and that the situation will not improve until 2010, a report said Saturday.

Olivier Blanchard also warned that the institution does not have the funds to solve every economic problem."

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He said that the investments being withdrawn from developing nations could be hundreds of billions of dollars, and "We do not have this money. We never had it." They spend one-fifth of its $250 billion fund over the last two weeks, according to Blanchard. I assume this means life could become much harsher in emerging countries over the next two years. We here in the West will have some hardship, but imagine how bad things will get elsewhere.

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