Philip Davis'  Instablog

Philip Davis
Send Message is the fastest growing stock and option newsletter on the Web. "High Finance for Real People - Fun and Profits" is our motto and our Basic and Premium Chat Sessions offer readers a chance to speak to Phil live during the trading day as well as authors like Optrader, Sabrient,... More
My company:
Phil's Stock World
My blog:
Phil's Stock World
  • World Bank Wednesday – Another Trillion Isn’t Enough?  0 comments
    Jan 18, 2012 9:21 AM

    The World Bank cut it's Global Growth Outlook – Again.  

    The Washington-based institution said the world economy this year will grow 2.5 percent, down from a June estimate of 3.6 percent (DOWN 25%). The World Bank sees the euro area contracting 0.3 percent in 2012 (RECESSION), compared with a previous estimate of 1.8 percent growth (DOWN 120%). The U.S. outlook was cut to an expansion of 2.2 percent from 2.9 percent (DOWN 24%). “Even achieving these much weaker outturns is very uncertain,” the World Bank said in its Global Economic Prospects report saying that a recession in the euro region threatens to exacerbate a slowdown in emerging markets such as India and Mexico.

    Hello, McFly – Are you starting to put together the dots or shall we spend another day debating the merits of going long on oil and retail?   

     “The downturn in Europe and weaker growth in developing countries raises the risk that the two developments reinforce one another, resulting in an even weaker outcome.” The World Bank urged developing economies to “prepare for the worst” as it sees a continued risk for the European turmoil to turn into a global financial crisis reminiscent of 2008.

    Euro-area industrial production declined for a third straight month in November, a report last week showed, adding to signs the economy failed to expand in the fourth quarter as leaders struggled to quell the region’s fiscal crisis. The revision is the largest since January 2009, when the World Bank cut its global estimate for that year by 2.1 percentage points.

    Despite the significant measures that have been taken, the possibility of a further escalation of the crisis in Europe cannot be ruled out,” the World Bank said. “Some of the big developing countries that have been the motor of growth in the post 2008-2009 period now have slowed,” Andrew Burns, who heads the World Bank’s global macroeconomics team, told reporters on a conference call.

    That prompted the IMF to IMMEDIATELY seek to boost its lending resources by another $1,000,000,000,000 this morning, in order to have the firepower to cope with any worsening of the EU debt crisis. The organization is pushing China, Brazil, Russia, India, Japan and oil-exporting nations to be the top contributors, although whether they'll heed the call is another matter entirely.  This, I pointed out to Members (as we shorted the Futures this morning) is…
    continue reading

    Edit | Join Member's Chat - 16 Comments Here »


    Email This Post Email This Post Facebook Twitter  LinkedIn Digg

Back To Philip Davis' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.