Thursday, October 10, 2013
So why push people into more debt on houses?
"The IMFÃ¢Â€Â™s World Economic Outlook offers little cause for optimism. There is always some wretched Ã¯Â¬Â‚y in the ointment. In previous years, it was the eurozone, which the IMF now fondly imagines to be on the mend. This time it is a marked slowdown in emerging markets, where falling commodity prices and tighter Ã¯Â¬Ânancial conditions have combined to produce lower growth than expected"." ..the US government hit its legal debt limit of $16.7 trillion last May". But "anyone who thinks the eurozone debt crisis is over is sadly deluded". "No monetary union of sovereign states can survive a decade or more of economic stagnation and record high unemployment. IMF estimate that approximately a Ã¯Â¬Âfth of the corporate loan book of Italy, Portugal and Spain is rotten. There is more pain to come".