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IMF calls for vigilance in fighting credit crisis

MARTIN CRUTSINGER

Reuters and Associated Press

Latest comment posted at 9:39 PM EST 11/10/08

Gives full support to action plan approved by G7 ...Read the full article

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  1. Kat Wilson from Canada writes: Of course the IMF supports a massive mutually cooperative bail out. But here's the thing. As early as 2005, finance economists were issuing warnings about the dangers of subprime, and these G7 nations deregulated the banking industry and invited a predatory lending system in. They KNEW what they were doing. The IMF knew, too. Two years ago, documentaries were coming out of Britain about the catastrophic consequences short term selling, and of long term mortgages at rates below prime - as well as credit cards being issued to the poorest people, who of course, couldn't repay. Now here they are acting all surprised and shocked at the horror of what's happening, as if it's something they couldn't have foreseen. Our biggest problem is giving so-called experts and authority figures like the IMF any more credibility. They allowed this to happen. At the very least we should be acknowledging this truth and not allowing ourselves to be sold the bill of goods. Flaherty opened the door for subprime in 2006. If the Cons had been in power earlier, Canada would be in a much worse situation. Thankfully, the Cons have been in power less than 2 years. As Bush has demonstrated, neocons wreak massive amounts of damage in a very short period of time. I fear we will put ourselves in harm's way if we give these same ideologists a chance in Canada. But if we go that route, I can be thankful for one thing. It won't take long for us to come to our senses again.
  2. i. ignatius from Canada writes: out of curiosity, whenever a posting raises the boogeyman spectre of "neocon government" and "destroy the economy" and so forth, I always wonder WHAT benefit to a "neocon government" is it to PURPOSELY create situations like this?

    it's one thing to enact legislation that backfires down the road, but why would Bush, et al, do this on purpose? What is the net benefit of destroying credit markets to a neocon?

    it's not like it's causing a massive rush of voters to the "neocon" side of either the Canadian or American election, so it can't be a way to generate votes.

    Can anyone answer?
  3. Kat Wilson from Canada writes: i. ignatius, there's no rational explanation but I would suggest it boils down to abolute power corrupting absolutely. Absolute corruption leads to decay and decimation. Bush didn't think ahead and never factored in history when he planned the Iraq invasion. Indeed, he doesn't think much at all. Clearly he is not interested in factoring in the potential consequences of his actions.

    Consider Mulroney's leadership. He single-handedly drove the (then) Conservative Party literally into the ground. When it was all over for the PC's, Reform co-opted the title rebranding "Conservative."By the time Mulroney was finished there wasn't a single Canadian on board with Conservative party. His behaviour effectively handed the Liberals two majorities. (Eventually absolute power corrupted and decimated them, too.) But Bush is the nth degree of worstness, if I can abuse English this way. From Iraq, to Katrina, to the appalling lack of fiscal accountability, to the negligence in contracting out, to the scandal in the justice department, to the hiring of incompetent people...it goes on and on. He may be a sociopath. His administration is certainly sociopathic.

  4. Kat Wilson from Canada writes: Btw, I don't think they planned to ruin the financial markets when they deregulated the finance industry. What they did was cater to interests that wanted to expand their short term profit margin. They didn't consider the consequences over the long term. These people don't care, period.
  5. Winston Smith from Canada writes: i. ignatius from Canada, a very small group of people made a ton of money in the last few years at the expense of society. How does this work? It is like the CEO of Lehman Bros, Dick Fuld, who through his wreckless decisions destroyed all his shareholders, employees, customers but before it happened he was able to cash out hundreds of millions for meeting short term performance goals. Now the contagio this a has caused is being bailed out by taxpayers around the world.
  6. Dick Garneau from Canada writes: Speaking of Lehman Bros, I got a cute one from the middle East;
    Auditors one line report on Lehman Bros:

    "There are two sides to a balance sheet. ..Left and the Right (Liabilities and Assets respectively) of the Left side there is nothing Right...and on the Right side there is nothing Left"

    Yup the IMF should have screamed loud and long.

    They are now pleading not to have their funding cut.

    .
  7. William J Gillies from Canada writes: i. ignatius from Canada writes: "I always wonder WHAT benefit to a "neocon government" is it to PURPOSELY create situations like this?"

    Read "The Shock Doctrine" by Naomi Klein.
  8. sean smith from Canada writes: If the IMF truly cared about society's well being, the first thing they would do is terminate their vulture like organisation.

    William J Gillies - I second your recommendation to read "The Shock Doctrine" as it is one of the best books ever written to out the sociopaths running our societies.
  9. Don Portz from Trochu AB, Canada writes: I wish the above posters would send their resumes to the various heads of the 7 largest countries in the world (fiancially) so that they can hire you to run the worlds economy. That way everything will be done correctly and we will all live happily and wealthy.
  10. garlick toast from Canada writes: In the New World Order, voters will be superfluous. They didn't do it on purpose, they just failed to prevent it.David Dodge says he and his fellow " super bankers" saw this coming years ago, clearly an admission of powerlessness. What do they now think they can accomplish?
  11. liz fox from nanaimo, Canada writes: Part of the explanation as to why neo-cons ruin the economy is a) they like power but they dont like government so, once they get elected everything gets out of control B) they have to govern "in the middle" in order to get reelected. Cutting taxes while raising spending guarantees economic ruin in the long run. If they cut governemnt as they'd like they wouldnt get elected. A simple dilemma!! C) they rely too much on big business to keep them reined in therefore they dont regulate like they should D) Ideologues are called that because their belief systems are too rigid to change in the face of the facts. If something doesnt work but is congruent with their outlook - do it some more !

    It will be interesting if the IMF prescribes "structural adjustment programs on the US as they did on Russia, Mexico, Thailand etc when their economies tanked: devalue the currency, cut government spending, produce for foreign markets to pay off debt rather than look after your own citizens, raise prices for essentials.... I wonder if the prescription will be the same for the doctor as it was for the patients!!
  12. // spider from Mars, writes: One good thing actually did come out of this recent financial mess -- the world has seen those leeches and greedy crooks for what they are.
  13. brian bishop from Brantford, Canada writes: It's a long way till we reach the bottom & we ain't even close yet! The World Bank, IMF & the US Federal Reserve are to blame. The world is run based on a Monetary system, which in turn is debt based! Put it together people, creating more debt will only make it worst!
  14. Don Portz from Trochu AB, Canada writes: Quite frankly the Governments are not at fault for this economic mess. WE ARE. We were not forced to take on more debt than we can handle, buy houses we can not afford, believe that the good times will last forever and that the stock market will only go up.

    It is time we take responsibility for our own actions. You would think that we are just a bunch of little kids expecting mommy to come out and save us from our stupid actions.
  15. brian bishop from Brantford, Canada writes: Don Portz from Trochu AB, Canada writes: Quite frankly the Governments are not at fault for this economic mess. WE ARE. We were not forced to take on more debt than we can handle, buy houses we can not afford, believe that the good times will last forever and that the stock market will only go up. I would agree governments are no more to blame than the average citizen. As for being forced to take on more debt, of course we were forced, we have been forced since birth, have you not heard of marketing! We have been trained from day one to consume & were dam good at it! Want proof just look around your own home & see the junk you own, look at the cloths you wear & the food you buy. It's not human nature to spend & go into debt, it's human behaviour, human conditioning! It's what we are taught & it's reinforced daily through the media. Turn it all off, I have! No TV or newspapers, no ads while surfing the web, the crap left in my mailbox goes directly into my bluebox. It's like a giant weight has been lifted off my shoulders & I spend a third of what I did before! I've been selling off all my stocks & mutual funds, I'm doing my part to bring this crisis to fruitation, you should to! It will bring the greedy corporations to their collective knees, which is where they belong!
  16. Carl Hansen from Canada writes: I read this IMF report on the BBC this morning and I had to do a bank run. It's over. I hope the USA rots in hell.
  17. Mr. Justice from Anytown, Canada writes: These cockroach parasites in the central banks KNEW that their buddies were getting rich off of committing fraud ... and they just let it happen.

    ... and NOW they're telling US about the need for "vigilance" ?? Gotta love the irony. Too bad they're going to get away with it, but ... that's how business works when it's working in the "deregulation paradise" that conservatives have always fought for (= "the free [i.e., "free" from legal requirements] market") is, folks.

    They're feigning "worry" now that their house of cards is collapsing. WOW -- how touching; love those "concerned looks" on the faces of those who lucked into this photo op!

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