Bloomberg: Feb. 7 -- Advanced economies are already in a "depression" and the financial crisis may deepen unless the banking system is fixed, International Monetary Fund Managing Director Dominique Strauss-Kahn said.
“The worst cannot be ruled out,” Strauss-Kahn said in Kuala Lumpur, where he was attending a gathering of central bankers from Southeast Asia. “There’s a lot of downside risk.”
That's downside from here.
6 comments:
Am I the first to wonder where everyone else is?
It is 7:43 in NY.
DSK is way to busy to check those out. His number of affairs can only be called inflationary :-)
Lou:
To answer your question from 2 topics back...
I don't know the history of the house, but I do know it's barren of any appliances whatsoever. Pretty much the bathroom and kitchen cabinets are all that it has. It doesn't look like the appliances were just torn off the walls, but they're missing nonetheless:
Beds: 3
Type: SFR
Sq. Ft.: 1,464
Lot Size: 3,920 Sq. Ft.
MLS #: 11092985
Baths: 2/0
Built: 1916
$/Sq.Ft.: $58
List Date: 10/09/08
Added pics also at the original post.
Just curious Rob, did Mr Straus-Kahn suggest what the solution may be?
Some of the stuff coming from economists just doesn't even seem sensible. "housing prices must stabilize"....why? to make someone feel better? Where were you three years ago when there was plenty of movement in house prices but no calls for stabilization?? Let's face it, that was the problem, this is the consequence.
It seems fairly simple - the cost of housing relative to all other goods in the economy is out of balance. Either housing prices have to fall (screams from the audience), or all other goods have to rise in price.
Let's go with option #2...oh wait, banks won't trust you with their dirty laundry. I read Krugman back in the day, and I still remember the footnote to a footnote where he hypothesized the current situation. His answer "well, you can just give the money to people".
Quite honestly, a monetary stimulus would seem more sensible than a fiscal. Am I wrong here?
w,
Just curious Rob, did Mr Straus-Kahn suggest what the solution may be?
Yes, he wants superkeynesian stimpak gone worldwide. To my mind that's like tacking a zero to the end of every currency. Actually, no. It's worse. It's a combination of keynes and wealth redistribution. Let's face it, the IMF is ultimately only about wealth redistribution.
Sun,
For once, in this small matter, I agree with Krugman. Pouring fiscal stimulus hasn't worked. Monetary pumps would make existing debt more manageable. The problem is that these are all designed by the seven blind men and this economic elephant. There is too much debt and any "solution" that includes more debt is doomed to fail.
For the record, in almost all other matters I think Krugman is trying to force us other lifeboat passengers to also drink the seawater.
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