The [Congressional Budget Office] has reportedly decided there is a 5 percent probability of default by the IMF. This is an extraordinarily important statement. Most informed people just assume that the risk of IMF default is zero, because that would essentially constitute a complete breakdown of the global economy and payments system. But nothing is zero probability, particularly in a world of massive financial panics, incipient protectionism, and improvised global governance.
Is The Crisis Over Yet? The CBO Weighs In (Baseline Scenario) Ice cold. More details…
…this estimate tells you that – even with the increase in IMF resources to close to $1trn, which will go through if the US approves this $100bn loan – the CBO thinks (a) the crisis is not over, and (b) there is a nonzero probability that the entire global system breaks down. Take this seriously.
(via tiffehr)
Source: tiffehr
1 Notes/ Hide
-
buffoonery reblogged this from tiffehr
-
tiffehr posted this
Comedy, tech, bikes, a mild-to-moderate Japan obsession, internet memes, food, photography, cats, Seattle. You know, the usual. 
