...late to the party, as always. The ironic thing is this may all come to pass, but markets will have a different reaction given the forward-looking prospects of the actors and the discounting that has already been priced in.
In other words, a viable strategy would be to invest exactly opposite to the IMF's esteemed forecast. In other institutional news, The Recapitulator also notes the "Smartest Guy" is being considered as the head of the World Bank. To laugh or cry...
On Tuesday, the International Monetary Fund said that it predicts slowing global economic growth and a rising risk of global economic calamity if governments fail to act appropriately.
Last fall, the IMF predicted that the global economy would expand by a paltry 4 percent, but has since downgraded its expectations to 3.25 percent global economic growth in 2012.
The economy that makes up the largest chunk of the projected growth is China (the world’s most rapidly expanding economy), which is expected to enjoy 8.2 percent growth over the next year. In comparison, the United States, which owes trillions of dollars to the Chinese, is expected to experience only 1.8 percent economic growth in 2012.
The IMF says that the slowed global economic growth falls heavily on the economic disaster unfolding in eurozone countries, where a “mild recession” is expected to take hold.