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IMF Cuts Global Growth Outlook, Says Europe May Worsen Outlook

Tyler Durden's picture




 

Flurry of headlines following an unscheduled IMF release:

  • IMF CUTS GLOBAL GROWTH ESTIMATE, SAYS EUROPE MAY WORSEN OUTLOOK
  • IMF SAYS DOWNSIDE RISKS ARE GROWING
  • IMF SAYS ECB SHOULD CUT INTEREST RATES IF DEBT TENSIONS PERSIST
  • IMF CUTS U.S. 2011 GROWTH ESTIMATE TO 1.5% VS 2.5% SEEN IN JUNE
  • IMF CUTS U.S. 2012 GROWTH ESTIMATE TO 1.8% VS 2.7% SEEN IN JUNE
  • IMF CUTS 2012 EURO-AREA GROWTH PREDICTION TO 1.1% VS 1.7%/JUNE
  • IMF CUTS 2011 WORLD GROWTH FORECAST TO 4% FROM 4.3% IN JUNE
  • IMF CUTS 2012 WORLD GROWTH FORECAST TO 4% FROM 4.5% IN JUNE
  • IMF SAYS ECB MUST KEEP INTERVENING `STRONGLY' IN DEBT MARKETS
  • IMF CUTS SPANISH GROWTH FORECAST FOR 2012 TO 1.1%
  • And stagflation: IMF raises estimates for China's inflation in 2011 and 2012, trims forecasts for China's GDP growth in 2011 and 2012

Source: BBG

IMF Sept

 

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Tue, 09/20/2011 - 09:12 | 1688304 Harlequin001
Harlequin001's picture

There's not a lot gets past these guys is there?

Does anybody have any update on Fukushima?

It's always nice to know who's being irradiated and when, and especially when it might be one's self...

Tue, 09/20/2011 - 09:12 | 1688327 falak pema
falak pema's picture

lol, hot seat, hot statistics and cold fear knee jerks. You can smell the odour of sweaty fear from these predictions. Like in a Hitchcockian movie.

Tue, 09/20/2011 - 09:16 | 1688345 max2205
max2205's picture

Doesn't Timmmaugh and the Fed tell the IMF what to say.... hummmm

Tue, 09/20/2011 - 09:23 | 1688367 optimator
optimator's picture

It's the reverse, the IMF is Timmy's boss, but they all report to the BIS.

Tue, 09/20/2011 - 09:16 | 1688346 Harlequin001
Harlequin001's picture

yep, sometimes you just can't beat a good calamity to start off your day...

Tue, 09/20/2011 - 11:00 | 1688762 TheFourthStooge-ing
TheFourthStooge-ing's picture

Funny how this happens on the exact day that Bernankey and Friends begin their special two-day meeting, and I don't mean funny ha-ha.

 

Tue, 09/20/2011 - 09:32 | 1688406 papaswamp
papaswamp's picture

Saw a report from Al Jazeera saying scientists (other than government) recommend evacuating parts of Tokyo. 

http://blog.alexanderhiggins.com/2011/09/19/experts-warn-fukushima-worse...

The report is towards the bottom (youtube)

Tue, 09/20/2011 - 09:50 | 1688464 Dr. Engali
Dr. Engali's picture

George Washington keeps a pretty good eye on that. I'm curious about the explosion in France. I haven't heard crap about that.

Tue, 09/20/2011 - 09:08 | 1688305 Dr. Engali
Dr. Engali's picture

Clearly a bullish sign. Dax 8,000 here we come.

Tue, 09/20/2011 - 09:14 | 1688339 Harlequin001
Harlequin001's picture

Now let me see, if the IMF is cutting its estimates of 'growth' to still positive figures, where is all this 'deflation' everyone keeps banging on about?

Tue, 09/20/2011 - 09:19 | 1688359 King_of_simpletons
King_of_simpletons's picture

BULLISH. Gawd the good news keep coming just in time for the stock market to keep going up.

Tue, 09/20/2011 - 09:22 | 1688372 Harlequin001
Harlequin001's picture

You know, I've been looking for years for an 'unbullish' event but just can't seem to find one...

truly amazing...

Tue, 09/20/2011 - 09:08 | 1688306 LongSoupLine
LongSoupLine's picture

Time to fire up the RPM's on the printers...bitchez.

Tue, 09/20/2011 - 09:10 | 1688317 LawsofPhysics
LawsofPhysics's picture

Welcome to the top of the delta function folks.  Certainly a great view from up here.

Tue, 09/20/2011 - 09:10 | 1688318 FederalReserveB...
FederalReserveBankofTerror's picture

Death by 1007 cuts!

Tue, 09/20/2011 - 09:11 | 1688321 lolmao500
lolmao500's picture
  • IMF CUTS U.S. 2011 GROWTH ESTIMATE TO 1.5% VS 2.5% SEEN IN JUNE

-1% within 2 months... nice. What will it be in November? 2011 growth 0.5%??

Tue, 09/20/2011 - 09:14 | 1688337 disabledvet
disabledvet's picture

Down 25 percent. That's the type of living standard cut that accompanies default on such a scale.

Tue, 09/20/2011 - 09:19 | 1688364 lolmao500
lolmao500's picture

Ya if the bubble pops, the GDP is gonna take a dive of at least 20% the first year.

Tue, 09/20/2011 - 09:11 | 1688323 Tense INDIAN
Tense INDIAN's picture

""Something BIGGEST must be coming"

Tue, 09/20/2011 - 09:14 | 1688330 Curtis LeMay
Curtis LeMay's picture

So much for China bailing out the PIIGS...

BOC halts forex swaps with European banks

(AFP) – 1 hour ago

The Bank of China (BOC), one of the country's "Big Four" lenders, this week suspended trading of foreign exchange swaps with some European banks, Dow Jones Newswires reported Tuesday.

French banks BNP Paribas and Societe Generale and Swiss lender UBS, which is currently facing a rogue trading scandal, are among those affected by the suspension, the report said.

Bank of China halted the trades after it reached the limit on its trading credit lines with some European banks, Dow Jones reported.

http://www.google.com/hostednews/afp/article/ALeqM5h17OLsPX43FHuoc5IFLjKi6aU-MA?docId=CNG.77cd4bd8c06dc74456f79fd61ebb1bf6.1321

 

Tue, 09/20/2011 - 11:04 | 1688774 TheFourthStooge-ing
TheFourthStooge-ing's picture

That's OK. A quick switch of the printer plates and the Bernank can start cranking out a big steaming pile of Renminbi. It's all clownbux, so does it really matter which clown's face is on it?

 

 

Tue, 09/20/2011 - 09:14 | 1688333 Smiddywesson
Smiddywesson's picture

Global ZIRP is the answer.  What was the question again?

Tue, 09/20/2011 - 09:17 | 1688350 LawsofPhysics
LawsofPhysics's picture

What is the fastest way to destroy productive capital as well as every economy (both real and fraudulent) and revert the world to a gold standard under pinned by trade and barter  OR start a world war?

Either way TPTB will come out the other side unscathed, win-win.

Tue, 09/20/2011 - 09:14 | 1688335 mayhem_korner
mayhem_korner's picture

Key question here is whether the markets will respond to the IMF's "voice."  There's nothing new or insightful in these proclamations, but'd be real interesting if suddenly the market levitation took a hit.

(channelling) We are the Priests of the Temples of Syrinx...

Tue, 09/20/2011 - 09:15 | 1688341 fdisk
fdisk's picture

Look at GOLD chart 30 min, Second day in the row
same time same actions.
FED/Goldman? Rising in Asia session and Dumped in NY session?
Co-accident my A$$.

Tue, 09/20/2011 - 09:24 | 1688380 mayhem_korner
mayhem_korner's picture

Good observation, fdisk.  It's amazing how the U.S. overnight market (Asian day) behaves so "differently" than it does in the daytime.

Opacity is the last deadbolt of the power vault.

Tue, 09/20/2011 - 09:15 | 1688344 firstdivision
firstdivision's picture

Wow!  Why doesn't the IMF just ask for QE3 instead of all this foreplay?

Tue, 09/20/2011 - 09:26 | 1688382 mayhem_korner
mayhem_korner's picture

Real question is whether they "ask" or "direct", no?  Aren't these little "statements" all test balloons to monitor (orchestrate?) market response?  Just sayin...

Tue, 09/20/2011 - 09:18 | 1688357 disabledvet
disabledvet's picture

This is the IMF? Hahahahahah. Lower interest rates? Bailout banks? Hahahahaha. Certainly not familiar with this organization. Just ask anyone else on the planet what an IMF plan looks like. This ain't it. Greece should exit the euro right now.

Tue, 09/20/2011 - 09:19 | 1688361 Vincent Vega
Vincent Vega's picture

Dear Ms Lagarde, Nothing new here; perhaps you should start reading Zero Hedge.

Tue, 09/20/2011 - 09:19 | 1688363 Hearst
Hearst's picture

Ready - Bernak, Set - ink cartridges, Go - print!

Tue, 09/20/2011 - 09:22 | 1688369 junkyardjack
junkyardjack's picture

The market obviously priced in worse, this is bullish.  No need for QE3

Tue, 09/20/2011 - 09:22 | 1688371 adr
adr's picture

If 100 million working class Americans need to starve to death to keep the global ponzi going then so be it. That is the mandate of the Fed and that is what we will get.

The United States is a dead country and it has already been written off in favor of the new Ponzi blood in the form of a billion Chinese. You only have to suck 1/10th the blood of a chinese man to get the same fill of an American. There is just so many cattle over there. American cattle are all skin and bones.

The stock market is nothing but a carrot on a stick leading youto the slaughterhouse. They tell you they are leading you to riches, but you never actually have the time to cash out.

Tue, 09/20/2011 - 09:35 | 1688419 Loose-Tools
Loose-Tools's picture

"... Everybody's gone Serfin' ... Serfin' U.S.A."

Tue, 09/20/2011 - 09:22 | 1688374 orangedrinkandchips
orangedrinkandchips's picture

I wish I were kidding but the money that the Fed is throwing out of a helicopter via Uncle Ben and the Wild Rice GOES DIRECTLY INTO EQUITIES....RUT2K IN PARTICULAR....WHO ELSE IS PROPPING THIS MARKET UP?

 

Serious.

Tue, 09/20/2011 - 09:31 | 1688402 John Law Lives
John Law Lives's picture

Why does one suppose The Ben Bernank is so opposed to the Fed being audited. Could it be he doesn't want to stir a panic if we all knew how the Fed was really operating?

Tue, 09/20/2011 - 09:24 | 1688377 lizzy36
lizzy36's picture

Funny everyone begging for Bernanke to act while ackowledging that he in all likely hood no matter what he does, the tumor ain't going to shrink. Hey put the unintended consequences sure will be fun.

Tue, 09/20/2011 - 09:26 | 1688385 Byte Me
Byte Me's picture

..Lest we forget

The IMF always wants payback in gold.

 

Tue, 09/20/2011 - 09:27 | 1688387 papaswamp
papaswamp's picture

Here is the US report:

http://www.imf.org/external/pubs/ft/weo/2011/02/pdf/c2.pdf

Basically they say we are fucked.

Tue, 09/20/2011 - 09:36 | 1688393 ReactionToClose...
ReactionToClosedMinds's picture

.... methinks this is net 'positive' ......   it is not 'negative' enough ... (forget reality ....'reality' only exists when one cannot pay one's bills or feed oneself).  It is 'negative' on it's face and 'analysis'  (we are f*cked... the world as we know it may end , etc.) and will probably elicit desired results QE whatever) but it could have been Gerald Celente-like is my point.

 

As a previous poster put it ..... the fact they are still universally citing 'positive' percentages, albeit with a clear deceleration re-rate.

 

Now is my time to exit equities when I got caught by USA downgrade as was indecisive in July and then went on spur-of-moment family vaca .....

 

Sprott ... here I come .... 

Tue, 09/20/2011 - 09:31 | 1688405 PulauHantu29
PulauHantu29's picture

EU needs QE'ing badly looks like.

Tue, 09/20/2011 - 09:42 | 1688431 Pangasius
Tue, 09/20/2011 - 09:53 | 1688475 Frankie Carbone
Frankie Carbone's picture

All of this news should be extremely bullish for these schizophrenic markets. I am perplexed that the market is failing to put up 20-40 points in the S&P on this news. 

I mean, it less bad, right? 

Tue, 09/20/2011 - 10:21 | 1688587 ZeroBoBo
ZeroBoBo's picture

Wait a minute. Now we pay heed to what these inept economists are telling us? Is there anyone that still believed the U.S. would experience ROBUST GROWTH in 2011 and 2012? I guess only these IMF clowns still did!

In late 2008 they still could not see the crisis and now we are taking their word seriously? In mid-2009 they were saying that "we ain't seen nothing yet" right in the face of one of the biggest 1-year equity rallies in history?

Come on.

Just disregard 99% of what they say and do, they are so behind the curve in every aspect. When the last bull turns bear (and vice-versa) is usually a good time to go against the tide.

Just sayin. 

Cheers!

Tue, 09/20/2011 - 10:41 | 1688675 msmith
msmith's picture

The USD is set for higher levels once Bernanke speaks tomorrow.  EURUSD http://bit.ly/qokwK8  AUDUSD http://bit.ly/nN3SrN  USDCAD  http://bit.ly/ncvFDL

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