Wednesday, January 28, 2009

News from the International Monetary Fund

Link Here:

Global output and trade plummeted in the final months of 2008 (Figure 2,
view: Data Figure 2). The continuation of the financial crisis, as policies failed to
dispel uncertainty, has caused asset values to fall sharply across advanced and
emerging economies, decreasing household wealth and thereby putting downward
pressure on consumer demand. In addition, the associated high level of
uncertainty has prompted households and businesses to postpone expenditures,
reducing demand for consumer and capital goods. At the same time, widespread
disruptions in credit are constraining household spending and curtailing
production and trade.

This does not bode well for the near future. Like housing, there is no hint that the trend has begun a bottoming process.

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