World Bank Cuts Economic Outlook, Says Europe Is In Recession, Warns Developing Economies To "Prepare For The Worst"

Tyler Durden's picture




 

This will hardly be a surprise to anyone with 3 neurons to rub across their frontal lobe, but at least it is now official.

  • WORLD BANK CUTS GLOBAL GROWTH OUTLOOK, SEES EURO-AREA RECESSION

Bloomberg, which just released an embargoed summary of the World Bank action, summarizes it all.

  • World Bank cuts global growth forecast by most in 3 yrs as euro area recession threatens to exacerbate slowdown in emerging markets, World Bank says in Global Economic Prospects report.
  • Sees world economic growth of 2.5%, down from June est. of 3.6%
  • Sees euro area GDP contracting 0.3% in 2012, compared with pvs est. of 1.8% growth
  • World Bank estimates euro area entered recession in 4Q
  • U.S. outlook cut to +2.2% from +2.9%
  • Japan forecast cut to 1.9% growth from 2.6%
  • China’s GDP growth will slow to 8.4%, unchanged from interim revised projection released in Nov.
  • India forecast cut to 6.5% from 8.4%

And the punchline:

  • World Bank urges developing economies to “prepare for the worst” as it sees risk for European turmoil to turn into global financial crisis reminiscent of 2008
  • Even achieving much weaker outcomes is very uncertain

Morgan Stanley may want to revise their 37% Muddle Through probability outcome, to something more like 36.745% on this news.

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Tue, 01/17/2012 - 22:18 | 2073057 vote_libertaria...
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US stocks to rally 10% tomorrow on the bullish outlook.

Tue, 01/17/2012 - 22:43 | 2073146 Everybodys All ...
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better than expected

Tue, 01/17/2012 - 22:48 | 2073162 UP Forester
UP Forester's picture

Bullish views have been hyper re-hypthecated.

Market now "The Little Train That Could."

 

"I think I can, I think I can...."

Tue, 01/17/2012 - 22:56 | 2073193 Honey Badger
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Priced in bitchez lol

Tue, 01/17/2012 - 22:57 | 2073207 American34
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Is it true? Is Mr. Durden building an Army?

Tue, 01/17/2012 - 23:06 | 2073231 YBNguy
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So is Egypt now considered a re'developing' country?

 

Oh and check out the Drudge, they have an article linked up that has a German blaming the USA for the influencing the S&P downgrades... FX WAS!!!!!!

Tue, 01/17/2012 - 23:41 | 2073311 Xibalba
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...

Wed, 01/18/2012 - 00:00 | 2073349 LongBalls
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It's looking more like the $10T bailout story may in fact lend some validity. These guys always threaten deflation prior to another round of printing. It keeps the commodity sector in check.

Wed, 01/18/2012 - 11:00 | 2074193 hedgeless_horseman
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These guys always threaten deflation prior to another round of printing.

Not so much threaten as reveal, but yes.  The prestidigiflationists are working overtime.

Tue, 01/17/2012 - 23:01 | 2073154 Ahmeexnal
Ahmeexnal's picture

HOPE AND CHANGE!

YES WE CAN!

And now news surface about the true reason of the cancelled joint wargames in the middle east.  No, it wasn't "budget considerations".

debkafile's sources disclose exclusively that, contrary to recent reports published in Washington, Jerusalem - and this site too - it was Israel Prime Minister Binyamin Netanyahu, not the Obama administration, who decided to call off the biggest ever joint US-Israeli military exercise Austere Challenge 12 scheduled for April 2012.
Washington was taken aback by the decision.

http://www.debka.com/article/21656/

 

As a side note, Netanyahu has an IQ of over 180, while Ogolfer's hovers arond 75.

Tue, 01/17/2012 - 23:10 | 2073242 john39
john39's picture

Debka = Politburo

Tue, 01/17/2012 - 23:33 | 2073293 Manthong
Manthong's picture

You must have transposed fearless leaders IQ.. it's more like 57.

 

 

Wed, 01/18/2012 - 00:14 | 2073321 Randall Cabot
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The underlying message was that the Israeli government felt free to attack Iran's nuclear sites on its own if necessary and at a time of its choosing.
debkafile's sources report that Netanyahu decided on this extreme course after careful consideration when he judged the Obama administration's resolve to preempt a nuclear Iran to be flagging, as indicated by four omissions:

1. Washington has taken no action against Iran's capture of the RQ-170 stealth drone on Dec. 4 more than a month after the event, and not even pressed President Obama's demand of Dec. 12 for the drone's return.
Tehran, for its part, continues to make hay from the event: This week, our Iranian sources report, the Islamic Republic circulated a new computer game called "Down the RQ-170." Players assemble the drone from the components shown on their screens and then launch it for attacks on America.

2. Silence from Washington also greeted the start of 20-percent grade uranium enrichment at the underground Fordo facility near Qom when it was announced Jan. 9. Last November, Defense Minister Ehud Barak warned in two US TV interviews (Nov. 17 and 22) that as soon as the Fordo facility went on stream, Iran would start whisking the rest of its nuclear facilities into underground bunkers, out of reach and sight of US and Israeli surveillance.
Barak made it clear at the time that Israel could not live with this development; therefore, the Netanyahu government believes Israel's credibility is now at stake.

3. Exactly three weeks ago, on Jan. 3 Lt. Gen. Ataollah Salehi, Iran's Army chief, announced that the aircraft carrier USS Stennis and other "enemy ships" would henceforth be barred from entering the Persian Gulf through the Strait of Hormuz . Yet since then, no US carrier has put this threat to the test by attempting a crossing. Tehran has been left to crow.

4. Even after approving sanctions on Iran's central bank and energy industry, the White House announced they would be introduced in stages in the course of the year. According to Israeli's calculus, another six months free of stiff penalties will give Iran respite for bringing its nuclear weapon program to a dangerous and irreversible level.

http://www.debka.com/article/21656/

Wed, 01/18/2012 - 00:07 | 2073369 xcehn
xcehn's picture

Clearly this spells attack for Iran.

Wed, 01/18/2012 - 00:11 | 2073375 GenXer
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"As a side note, Netanyahu has an IQ of over 180, while Ogolfer's hovers arond 75."

All idiots that pay money for online IQ tests tell anybody who will listen their IQ is 180.

Wed, 01/18/2012 - 00:17 | 2073390 Ahmeexnal
Ahmeexnal's picture

I'm glad I'm not a genXer.  To them, all life revolves around facebook and being online.

Your reply also means all those online IQ tests you have taken say you are not gifted.

I bet you brushed your teeth 3 times a day with lots of toothpaste while young like those "intelligent" doctors wearing white coats ordered you to do.

 

 

Wed, 01/18/2012 - 00:57 | 2073461 CvlDobd
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Which is so much worse than being around ZeroHedge and being online?

Wed, 01/18/2012 - 01:23 | 2073516 Sabibaby
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No worries, he won't be around when the popcorn starts... old fool will be depending on computers to keep him alive.... oh' the irony of the elds...

Wed, 01/18/2012 - 09:45 | 2073961 Chuck Walla
Chuck Walla's picture

I'm glad I'm not a genXer.  To them, all life revolves around facebook and being online.

 

Pretty soon, it may revolve around being in the Marine Corps.  I'm shocked that anyone thinks the Magic Kenyan is weak! Peace through pussiness!

Wed, 01/18/2012 - 01:33 | 2073533 Oh regional Indian
Oh regional Indian's picture

All right Ahmee, but did ya know that NutterYahoo's elder brother was the leader of the "rescue" forces in the Entebbe fiasco?

Huuuuuh? Interesting no, how the same family's keep showing up in the same theaters? 

Entebbe set the stage for "Terror" in the world of planes.

Enough said, eh?

Bibi my ass. 

ori

/1460-days-ago-

Tue, 01/17/2012 - 23:11 | 2073247 Eireann go Brach
Eireann go Brach's picture

The other question of the day is, Where the fuck is Jon Corzine and why is his head not in a bag somewhere?

Tue, 01/17/2012 - 23:58 | 2073346 Calmyourself
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Because he has bulldogs with machine guns and we don't, no law, just might equals right didn't MF Global teach all of you that?

Wed, 01/18/2012 - 09:47 | 2073968 Chuck Walla
Chuck Walla's picture

The other question of the day is, Where the fuck is Jon Corzine and why is his head not in a bag somewhere?

 

believe he knows where and to whom to contribute. That and Holder is 100% for sale when it comes to race and the Magic Unicorn Presidency.

Wed, 01/18/2012 - 11:02 | 2074199 hedgeless_horseman
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Who is Eric Holder?

Wed, 01/18/2012 - 00:12 | 2073379 brokenclock
brokenclock's picture

and gold will drop under 1,000. Party all around.

 

Wed, 01/18/2012 - 00:19 | 2073391 brokenclock
brokenclock's picture

Play close Attention now boys and girls. Everyone has been waiting for it to happen. It's here. The first dagger has just been thrown. They won't be able to print this much money and hide it from the American public anymore. Everything that ZH has been talking about might come full circle very shortly.

I'm am now bearish as fuck. The shit is going to it the fan now. First a quick market ramp up then look out below.

Wed, 01/18/2012 - 09:49 | 2073971 Chuck Walla
Chuck Walla's picture

They won't be able to print this much money and hide it from the American public anymore. Everything that ZH has been talking about might come full circle very shortly.

 

Never underestimate the ignorance, we elected Obama. If we are this easy to fool, well, ....

Tue, 01/17/2012 - 22:18 | 2073059 HedgeAccordingly
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gold curiously weak tonight. pre margin raise selling? http://hedge.ly/gFWVSm

Tue, 01/17/2012 - 22:21 | 2073068 bob_dabolina
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Everytime gold goes down there is some fucking conspiracy, holy shit. It could be down .50 and someone will be crying about manipulation or something.

Tue, 01/17/2012 - 22:23 | 2073077 Hulk
Hulk's picture

Sneaky bastards, aren't they ???

Tue, 01/17/2012 - 22:26 | 2073086 bob_dabolina
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It's down 8 bucks, they're really greasin' the skids tonight.

Tue, 01/17/2012 - 22:28 | 2073097 Hulk
Hulk's picture

No doubt its in permanent backwardization, from this point going forward...

Tue, 01/17/2012 - 22:35 | 2073125 WonderDawg
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We're okay as long as it doesn't do a reverse backwardization with a half twist.

Tue, 01/17/2012 - 22:40 | 2073134 bob_dabolina
bob_dabolina's picture

It's all about the reverse Triple Lindy

Tue, 01/17/2012 - 22:46 | 2073158 Hulk
Hulk's picture

Thanks for that, Dean Martin...

Tue, 01/17/2012 - 23:29 | 2073291 trampstamp
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Thought that was RodneyD? hmmmm

Tue, 01/17/2012 - 22:51 | 2073173 Schmuck Raker
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Didn't Hugh Hefner date them?

Tue, 01/17/2012 - 23:20 | 2073271 UP Forester
UP Forester's picture

I thought that was the Reverse Triple Cowgirl....

Wed, 01/18/2012 - 00:36 | 2073420 WonderDawg
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You're thinking of the inverted reverse cowgirl, which, as we all know, is bullish...

Wed, 01/18/2012 - 01:53 | 2073572 UP Forester
UP Forester's picture

Until decoupling occurs....

Tue, 01/17/2012 - 23:04 | 2073226 Hulk
Hulk's picture

Its only down a buck now, our stacks are, once again, safe...

Wed, 01/18/2012 - 01:02 | 2073471 Hephasteus
Hephasteus's picture

It's cause you guys were keeping an eye on it. Decided not to do that 8 buck sneak.

Tue, 01/17/2012 - 22:36 | 2073126 Careless Whisper
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The Careless Whisper Trivia Question Of The Night & Threadjacking (dont think they wont give up on SOPA)

 

 

Where is Jack Valenti buried?

 

I will post the answer down below somewhere.

 

 

Tue, 01/17/2012 - 22:39 | 2073133 mayhem_korner
mayhem_korner's picture

 

 

Next to Jimmy Hoffa ?

Tue, 01/17/2012 - 22:50 | 2073176 UP Forester
UP Forester's picture

In a garbage bag next to John Wheeler III, New Jersey landfill?

Tue, 01/17/2012 - 23:24 | 2073281 Zgangsta
Zgangsta's picture

And who the heck is buried in Grant's tomb?

Tue, 01/17/2012 - 23:45 | 2073319 Whoa Dammit
Whoa Dammit's picture

Arlington National Cemetery.

Wed, 01/18/2012 - 00:44 | 2073431 Calmyourself
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bingo, war hero

Tue, 01/17/2012 - 22:56 | 2073194 peekcrackers
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Mistadobalina Mr. Bob Dobalina. . .
Mistadobalina Mistabobdobalina Mistabobdobalina

 

LOL.. so true .

 some buy metals to make paper  and some buy metals to lose paper .

Tue, 01/17/2012 - 22:25 | 2073083 fonzannoon
fonzannoon's picture

well technically Bob it is either manipulation or something else. Otherwise apparently there is a 37% chance it would muddle through

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