IMF Says Markets Could Drop Another 20%

October 11, 2008 by Douglas A. McIntyre

AngrybearThe people who run the International Monetary Fund probably don’t have any money in the stock market. They as the bond-owner, conservative sorts.

Their risk aversion has not taken away their pessimism, and it may have made it worse. The IMF’s chief economist says that markets could drop another 20% if things get very bad.

According to Reuters, "In a worst-case scenario, governments will need a few more weeks to take the correct measures and the markets could fall another 20 percent. Then, we’ll turn around," the IMF’s chief economist Olivier Blanchard was quoted as saying.

One rumor say that the IMF is short the major country equity indexes.

Douglas A. McIntyre