IMF 'Bath-Salts' Everything As "Global Recovery Showing Signs Of Further Weakness"

The IMF just took a bucket of bath-salts to world economies as it slashes growth expectations for every major global economy (and emerging nations suffer too). Noting that Q1's upward surprise was "partly due to temporary factors", they reduce 2012's overall global growth to 3.5% adding that developments during the second quarter have been worse. Job creation has been hampered - with unemployment high in many advanced economies, especially among the young in the euro area periphery; but incoming data from the US also suggests less robust growth than forecast previously. While distortions to seasonal adjustment and payback from the unusually mild winter explain some of the softening, there also seems to be an underlying loss of momentum. Growth momentum has also slowed in various emerging market economies, notably Brazil, China, and India. This partly reflects a weaker external environment, but domestic demand has also decelerated sharply in response to capacity constraints. The baseline projections in this WEO Update incorporate weaker growth through much of the second half of 2012 in both advanced and key emerging market economies, reflecting the setbacks to the global recovery. Downside risks to this weaker global outlook continue to loom large. The most immediate risk is still that delayed or insufficient policy action will further escalate the euro area crisis. How long before those Q4 hockey-stick earnings forecasts get reduced?

 Full Report here (pdf)

Comments

[strongband]

EURUSD went full Burj.

[GMadScientist]

Repatriation sugar high.

[Mr Lennon Hendrix]

If we all buy dollars then we will all be safe from the deflation monster!

King Rahrah!

[Mr Lennon Hendrix]

How about the Yen?

King Yen?  I would think Shirakawa would print or at least buy some more ETFs.

[GMadScientist]

Damn, we've failed to have a 12-month long Indian Summer starting in January.

We'll need to tweak the models.

[TrainWreck1]

Not worried. The further weakness will be revised shortly*

*then I will laugh, ha ha!, as the corrosion  of the global economic framework accelerates.

[caimen garou]

wait a minute here,so they lied to us again?

[ptoemmes]

Apparently...and I'll bet they still are.

[BurningFuld]

Hey, I'm looking at the big pretty chart up top, did something happen in 2008 that I missed?

[hedgeless_horseman]

It is ok if you missed 2008.  Container shipping shows we will get to see the same thing again before we know it...

http://www.harperpetersen.com/harpex/harpexRH.do?timePeriod=Years10&&dataType=Harpex&floatLeft=None&floatRight=None

[lizzy36]

Don't worry...this time is different.....QE will be bigger it will be better.....ahhh fuck it, more of the same and we ae all screwed, unfortunately not literally.

[rsnoble]

Nuke the IMF.

[Cult of Criminality]

Lol

So the CDC knew what they were talking about on the Zombie apocalypse.

Good call CDC

[Cult of Criminality]

 Tyler makes me laugh about , sick reality.

Although I laugh, I am very aware of whats up and its not good or funny.

Mayhem,Murder,Chaos,War,Planetary catastrophe,Complete and total Criminal carnage,Economic shit storm on and on.

Thanks for making me laugh although it is short lived.

[vxpatel]

LIEMORE

'Stressed' Bank of England official stabbed self to death A Bank of England manager stabbed himself to death due to the over-whelming pressure he was under at work, an inquest has heard.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9376436/Stressed-Bank-of-England-official-stabbed-self-to-death.html

[ParaZite]

Why does this remind me of the Carlos Mencia song, Dee Dee Dee?

http://www.ebaumsworld.com/video/watch/372305/

[CrazyCooter]

Can someone explain ...

"took a bucket of bath-salts to world economies"

I understand that "bath salts" are negative in this context, however I never really got a handle on where the expression came from or what it means specifically. I tried to google it, but I didn't really turn up much. Just want to understand the phrase, where it came from, what it actually means.

Regards,

Cooter

[StychoKiller]

"Bath Salts" is apparently some sort of designer drug, a cross between Meth and Brown Acid (just a guess!)

[Half_A_Billion_...]

http://www.youtube.com/watch?v=Wh_nZiuFC4o

[CrazyCooter]

Holy shit. I get it. Saw this growing up, but the jargon changed ...

One of the saddest moments of my life was driving through a downtown area and seeing a girlfriend from highschool (always had the hots for her) standing on a corner looking like a toothpick in extremly dirty clothes. I can still see her bones through the filthy denim. Just the weird shit you don't forget.

Regards,

Cooter