The chief economist of the International Monetary Fund said that the current world financial crisis and recession could last for another decade. This echos concerns by other experts that slow job growth, huge national debts and massive entitlement obligations have no ready solutions.
According to Reuters, the IMF's Chief Economist Olivier Blanchard said, speaking of the period which began in 2008:
"It's not yet a lost decade… But it will surely take at least a decade from the beginning of the crisis for the world economy to get back to decent shape.
"Japan is facing a very difficult fiscal adjustment too, one which will take decades to solve. China has probably taken care of its asset boom but has slower growth than before, but we do not forecast any really hard landing."
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Economy, International Markets