IMF warns: ‘World is on the brink
IMF warns: ‘World is on the brink of complete financial meltdown’ as Brown urges EU leaders to copy Britain’s banking rescue
The world’s financial system is edging towards complete meltdown, the International Monetary Fund has warned.
The IMF said it backed a Group of Seven plan to try to stabilise markets and urged ‘exceptional vigilance, coordination and readiness to take bold action’ to contain a firestorm that pushed global stocks to five-year lows.
‘Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown,’ IMF chief Dominique Strauss-Kahn said.‘No country - not even the biggest - can make it just on their own at a time like this,’ he insisted. ‘We are all in it together and have to work to solve it together.’
I want to know what the impact of all these bailouts and industry takeovers will have on this situation. My question is this, can they actually make things worse, instead of allowing the markets to work us out of the problem, what about the debt on every human being to finance the bailouts? Won’t that depress spending, depress payments of debts and cause even more economic harm?
