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Home Publications Blogs Beat the Press The IMF Could Not See the Housing Bubble That Wrecked the Economy, Wants Countries to Reduce their Deficits More Quickly

The IMF Could Not See the Housing Bubble That Wrecked the Economy, Wants Countries to Reduce their Deficits More Quickly

Thursday, 18 November 2010 08:10

The Washington Post thought it was important to tell readers that the IMF thought that deficit reduction plans in many countries are inadequate because these countries were overly optimistic in their growth projections:

"in its recent review, the IMF warned that governments were relying on optimistic assumptions about economic growth and had not yet specified adequate cuts in spending to control their finances."


It would have been worth reminding readers that the IMF managed to overlook the housing bubbles in the United States, Spain, Ireland and other countries that led to the current economic crisis. In fact, if IMF economists were held to the same standard of accountability as ordinary workers, the vast majority of them would be among the 15 million unemployed. If readers were aware of the quality of the economic work produced by the IMF they would probably not give its concerns much credence. 

Comments (4)Add Comment
results oriented
written by frankenduf, November 18, 2010 8:16
or, be aware empirically of all the suffering imposed on the mass of third world citizens who had to live under IMF imposed policies- the irony now is that us policymakers are drinking the same koolaid that was reserved for third world country gov'ts themselves
Holocaust 2.0, Low-rated comment [Show]
written by tinbox, November 18, 2010 1:51
Since Ireland has so few Jews, it has practically no financial problems at all...except for the catastrophic banking debacle which is swallowing up the entire nation.
written by izzatzo, November 18, 2010 1:51
Why, Herr Beck, how considerate. Imposteurism is indeed the highest form of flattery.

I completely agree from watching your last conspiracy program that Jewelry is the heart of the problem.

The IMF should have forced those countries to use gold instead of Jewelry to back up their fiat currency and prevent deficits, the coming hyperinflation and bubbles in the first place.

Instead, the use of Jewelry encouraged unhealthy gypsy like trading with the unwashed filthy masses of money changers in the temples that eventually led to bubbles, as described in Mein Kampf.

Once the Master Race Austerity Plan is installed by the recently elected Ultra Orthodox Teabagger Gold Bug and Barter Faction, Jewelry will be phased out and we won't have to worry about bubbles, recessions, and slimy free market traders ever again.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.