IMF to US: Do Something NOW

Monetary fund chief pressures Congress to pass bailout, Europe to make plans
By Rob Quinn,  Newser Staff
Posted Oct 1, 2008 7:30 AM CDT
A passer-by in Times Square is reflected on the studio window of the NASDAQ Marketsite as he looks inside to the Market wall Tuesday, Sept. 30, 2008, in New York.    (AP Photo/Julie Jacobson)
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(Newser) – The US must act swiftly to avoid economic meltdown and Europe's banks need to be ready with emergency plans of their own, IMF's managing director warns. European and Asian markets have bounced back on the prospects of a revived US bailout deal, but JP Morgan analysts warned yesterday that Europe's banks face another $45 billion in losses before the end of the year, the Guardian reports.

The IMF forecasts a gradual, "U-shaped" recovery for the US economy next year—but only if the bailout plan is passed quickly by Congress. "We're right at the moment where action is needed," IMF chief Dominique Strauss-Kahn told Reuters. "A non-perfect plan is better than no plan at all."