IMF warns world economy risks chronic new phase of financial crisis

[alp227]

Source: The Guardian

The International Monetary Fund has warned that new risks to global financial stability are already emerging before the problems left by the deepest slump since the 1930s have been sorted out.

In its half-yearly healthcheck on the financial system, the Fund said failure to deal with old and new risks risked propelling the five-year old crisis into a fresh chronic phase.

José Viñals, the IMF's financial counsellor) said the improvement in financial markets seen over the past six months would not be sustained unless policy makers addressed "key underlying vulnerabilities".

The Fund's Global Financial Stability Report (GFSR) identified the euro area as one of the two significant legacy risks from the crisis. It said EU banks might need to reduce their leverage by a further $1.5tn (£0.9tn), and that credit was still not flowing to the countries on the periphery of the single currency zone.

Read more: http://www.guardian.co.uk/business/2013/apr/17/imf-world-economy-risk-new-financial-crisis

[Amonester]

1. mmmm....Ya think?!? Richest 1% always obscenely richer? Stashing away?

Bribing the rules in their never-ending favor 24/7/365?!?

Refusing to pay their fair share of social costs? How much more boats, houses, cars, airplanes, and gold do they need?

Poorest 99% always dramatically poorer 24/7/365? Having less and less to barely survive?



And the IMF didn't see that obvious conclusion coming?

[magic59]

2. Yes, the uber rich are doing fine

while the "little people" are seeing their incomes and safety nets erode away. Its just another bubble, along with the stock market, that will burst.

[madrchsod]

3. they created the crisis....

ask the people of argentina about the idf.

[grahamhgreen]

4. "failure to deal with old and new risks risked propelling the five-year old crisis"