Tuesday, February 3, 2009

Obamagic Is Coming at You......stay tuned..

drawing by marguerita
However easy it is to blame the US for global economic woes, it is also to the US that the world looks for a solution.The general mood in Davos was one of gloom verging on despair. The gloom is justified, as the update of the World Economic Outlook from the International Monetary Fundmakes plain. Global economic growth is now projected to fall to a mere ½ per cent this year, its lowest rate since the second world war. Output in high-income countries is expected to fall by 2 per cent, the first annual contraction since 1945. Industrial production and merchandise exports are in free fall, as consumers decide they do not need that new car or other goody right now.Concerted action is needed to reverse the downward spiral of despair, and that will only occur if the US gives leadership, writes Martin WolfThe remainder of the article can be read here. Discussion from our forum members and contributors appears below.FT.com | The Economists' Forum | Why Davos Man is waiting for Obama to save him

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