[IMF FORECAST REVISIONS. PRESCRIPTIONS] The IMF is out with a fresh set of forecasts and accompanying policy prescriptions. To some extent, they read like an aggregation of policy comment from central bankers. For instance, the most likely outcome is that the global economy will avoid sustained deflation, though policy makers need to act soon to counter deflationary risks. Market strains remain elevated, though some progress has been made. It is crucial to remove toxic assets from the financial system as well as to recapitalize banks. Bank losses will amount to around $2.2 trillion and banks in the US and EU need at least half a trillion dollars to deal with writedowns this year and next. The US is likely to shrink by -1.6% this year, the EU economy by -2.0%, with global growth at 0.5% vs a prior estimate of 2.2%.
those who can, do. those who cant, talk about those who can