The IMF, the Fed and Bernanke, the weakness of European banking and politics dragging the world to a predictable new economic and financial collapse: recession.

The economic crisis, Which was widely believed to start dating for almost a year, it seems to last longer than previously thought and wanted as forecasts the International Monetary Fund (IMF), given the reaction of stock markets and world markets to the ultimate measure of U.S. Federal Reserve and the apparent inability of European institutions to curb the growing problem of public debt.


The global crisis began in August 2007 after the mortgage problem subprime and especially after the bankruptcy of Lehman Brothers the following year. The ineffectiveness of the measures taken now then the world gets back to an impending economic stagnation with social effects to those produced even larger and equally unpredictable financial consequences begin to be reflected, for example-in loss of value a score of European banks in the last year alone.

The IMF forecasts the world economy are reeling

The IMF introduced a few days, the report Global Economic Prospects, which suggests that the economic downturn will be longer than expected and will include the entire 2012, states that in the next exercise any advanced country will grow more than 2%, with the exception of Japan through its programs of reconstruction by the earthquake and tsunami.The institution’s chief economist, Olivier Blanchard, has been more explicit in stating, as quoted by the newspaper The Country The following:

“Compared with what we thought in April, the economic recovery is now more uncertain” “In developed countries, growth was weakening since early this year, but we knew it not see”; which must be added to the “Significant increase in fiscal and financial uncertainty in August,” especially in the public debt market and European banks. “If, separately, are processes of concern, together much more”He said.

Bernanke and Federal Reserve actions unconvincing

Barack Obama two weeks ago announced an ambitious plan to create jobs with a value of 447,000 million dollars, about 350,000 million euros, which gave a momentary glimpse of tranquility to the disturbed financial markets around the world. It was expected therefore that the Federal Reserve this week announced similar measures.The EDF Ben Bernanke front, however, decided to stimulate the U.S. economy by selling a package of 400,000 million dollars in the short term to buy long term bonds for the same amount, while continuing to reinvest the mortgage debt for new debt due in supported by credits given to the property sector.

Stock markets and the global financial market declines react with

The IMF and forecasts, plus the highly rated no decision of the Federal Reserve to stimulate the economy of the world’s leading power are now good reasons to the Stock Exchanges around the world have reacted to the downside. From New York to Tokyo to Madrid, Paris, Frankfurt, Amsterdam and London, whose losses range between 2 and 5%.

Weak policy and European banks

To make matters worse, the IMF itself has filed another report today Financial Stability, Which is responsible for much of the problem “Slow growth, weak balance sheets, weak political decision”. What the Director of Monetary Affairs of the entity, the Spanish Jose Vinals, called the triple D responsible for the global economy has returned to “Danger zone”.

It has long been insisting on several fronts in the need for more effective decisions and institutions European policies especially since this is attributed partly to the growing problem of public debt that has burdened Greece, Ireland or Portugal, threatening Spain and Italy, and hurts a weak European banks, whose twenty of his entities have already lost half of its stock market value in just the past year.

And to round off, The IMF predicts a possible financial collapse unless there is an injection of capital in European banks must decrease the effects of the foreseeable default of 300,000 million which is currently exposed, 44,000 of whom devaluation Spanish titles.