IMF Sharply Downgrades U.S. Economic Outlook
The International Monetary Fund has sharply downgraded its outlook for the U.S. economy through 2012 because of weak growth and concern that Europe won't be able to solve its debt crisis.
international monetary fund
Financial Landscape: Banks Get No Love; OPEC Vs. OPEC
As a new week begins on Wall Street, nobody wants bank stocks, J.P. Morgan Chase hints at changes at the top, OPEC ministers tussle over crude, and airlines are in for some financial turbulence. In fact, the only good news is for France, which apparently won't lose the IMF over the DSK scandal.
IMF Lays Out the Challenges Ahead for Global Recovery
In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.
Why Interest Rates Keep Rising, Despite QE2
The Federal Reserve is doling out billions to buy bonds in hopes of keeping interest rates low and stimulating the economy. However, several powerful forces are working against that low-rate strategy, ranging from investor psychology to global competition for capital.
Ireland's Austerity Budget:
Not Likely to Avoid Default
Simply put, the losses Irish taxpayers will be forced to cover are larger than the nation's economy can support, even with the promised bailout. The EU and Irish political leadership's attempts to put a brave face on the crisis is no match for this crippling burden.
Ireland Deal: Euro-Politics Plays a Major Role
Investors should stay focused on the dynamics within European politics that shaped the rescue. Other indebted economies -- like Spain, Portugal and Italy -- could find themselves in a similar situation, after all. And politics will again guide market moves.
Can China Control an Overheating Economy?
As if the Irish debt crisis weren't enough, investors are worried once again about rising inflation in China. But officials in Beijing are quietly building an impressive record of economic management, and some analysts are convinced they can meet the challenge.
Top Economists See Consumers Rebounding Faster
Forget the gloomy predictions: According to Richard Berner of Morgan Stanley, U.S. consumers are a year ahead of schedule in repairing their household balance sheets, giving them the ability to start spending again soon. And the head of the IMF was explicit Monday: A double dip is unlikely.
Europe's Debt Crisis: Here We Go Again?
Europe's shakiest economies managed to ride out a sovereign debt crisis this spring with a lot of help from their more stable neighbors and the major central banks. But new data suggests we may soon see a replay of the debt default crisis.
Were the European Bank Stress Tests Too Easy?
Banking regulators tested the soundness of 91 European banks this week to see if they could withstand a financial crisis, and only seven failed to pass muster. But some analysts say the tests may have been too easy, and wonder what would happen if a real "worst-case scenario" hit.
European Central Bank Keeps Rates Low
It may be because of the slowing European economy, the drive for austerity by the continent's national governments, or planned tax increases. But whatever the reasons, the European Central Bank said Thursday it would hold its benchmark interest rate steady at 1%.
How the Greek Rescue Could Play Into U.S. Stock Prices
It will likely depend on how the euro moves against the dollar. A stronger euro now could help U.S. exporters. But considering the depths of the EU's woes, the euro could still be headed lower longer term. And even that might not be bad for U.S. stocks.
Mini Marshall Plan Is Needed for a True Resurrection of Haiti
After the rescue stage is completed, Haiti will need a Marshall Plan like one implemented in Europe, post-World War II. But this time, there will need to be a large corporate presence to help make the island nation a land of opportunity and hope.
