|
UK and world facing the biggest
financial shock since the Great Depression, says IMF
ALEX BRUMMER
UK
Dail Mail
Thursday, April 10, 2008
The world is facing the biggest financial shock since the Great
Depression, warns the International Monetary Fund.
And the IMF warns that Britain could be the country hit hardest
by the global credit crunch as it has bigger debts than anywhere
else.
In its most startling report of modern times, it says the meltdown
"has inflicted heavy damage on markets and the financial
institutions at the core of the financial system".
(Article continues below)
Analysis by the IMF reveals British banks will lose more than
£20bn from the international mortgage meltdown, equivalent
to three per cent of gross domestic product (GDP).
For the first time the IMF also predicts that the American economy
is heading for recession and will shrink by 0.7 per cent this
year, sending shock waves across the globe.
American banks, which it was thought would be worst affected,
will lose £72 billion, or 1.4 per cent of US GDP.
Despite healthy growth in the Far East, it now believes there
is a 25 per cent chance that the whole world could follow the
Americans into recession.
"The financial markets crisis that erupted in August 2007
has developed into the largest financial shock since the Great
Depression," the report says.
It estimates that the losses from American mortgages will reach
$945billion (£500billion) - more than twice previous estimates.
Full
article here.
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
