“The International Monetary Fund (IMF) said on Wednesday … [that] the global slump could prove worse than predicted. There is a one-in-four chance that a global recession — seen when world economic growth falls below 3.0 percent — will ensue, it said.
“‘The financial market crisis that erupted in August 2007 has developed into the largest financial shock since the Great Depression,’ it said.
“Latin America and countries linked to the plummeting U.S. dollar will be hardest hit as the U.S.-led
slump spreads around the globe, the IMF said.
“Rapidly growing emerging economies, such as China and India, will suffer the least pain, it said.
However, even they will feel a sting as rich countries cut their imports.”
Economist Dean Baker has said that he could see average American incomes fall by as much as 40 percent before we hit bottom.
