April 22, 2009

Financial crisis could be worse than the depression

The international monetary fund (IMF) are warning that there are some serious worries that there could be comparisons between the lead up to the great depression and the current financial crisis.

Despite the attempts by governments around the world to prevent this from happening the fear is that this may not be enough to prevent the crisis from getting worse.

Everyday there are stories of how the economies are in free fall and at the other end of the scale there are words of encouragement that the recovery is just around the corner.

The hope is that the later is true, but are these words just set to encourage people to spend their cash or is this really going to end up like the great depression, only time will tell.

Source [Telegraph]