What is one sure way to know the economy is in deep trouble? Ask the IMF! The International Monetary Fund, largest lending and banking agency in the world has expressed serious concerns about the state of the european and us stock markets and overall financial health.
In its semi-annual Global Financial Report, the IMF team has jointly expressed a very negative view of the future. Saying that the current economic crisis is likely to be much worse than the recession we experienced in 2008, the IMF points out that all "risks are elevated, and time is running out to tackle vulnerabilities that threaten the global financial system and the ongoing economic recovery," IMF.
So how can we get out of this crisis? With very negative predictions and major cuts on its world economy growth forecast for next year, the IMF is skeptical, but not hopeless, "Restoring confidence in the stability of the U.S. housing market is the key to bolstering the prospects for U.S. banks," increasing spending and stabilizing the stock market.
So while no one is advised to blindly throw all their investments into penny stocks, buy multiple houses, or go crazy with retail spending; living as normal of a life as possible is the only way to get back on track. Buy, spend, sell, invest and be patient, is the advice IMF would give. Always remember that markets will correct themselves regardless of what you do do, but if you give them a little push, they will do so sooner than expected.
read more about IMF's gloomy predictions in today's msn money!
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