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Against this backdrop, Chapter 1 first outlines the key risks that have materialized since the April
2008 GFSR. Second, it examines the depth of the default cycle and potential losses. The third and
fourth sections evaluate the challenges posed by the deleveraging of the financial system in mature
economies and the broader systemic implications. The fifth section assesses the vulnerability of
emerging markets to global stress. Finally, the last section considers near-term policy priorities aimed
at rebuilding confidence and improving the
functioning of global markets, along with medium-
term policies to strengthen the international
financial architecture and reduce systemic

Click to access chap1.pdf

Also –

The global financial system has undergone a period of unprecedented turmoil. Market confidence
dwindled and has remained fragile, leading to the collapse or near-collapse of large,
and in some cases systemically important, financial institutions, and calling forth public intervention
in the financial system on a scale not seen for decades. The financial system has
been severely weakened by mounting losses on impaired and illiquid assets, uncertainty regarding
the availability and cost of funding, and further deterioration of loan portfolios as global economic
growth slows. Finding a purely private sector resolution of financial market strains has become
increasingly difficult, while case-by-case intervention by authorities has not alleviated market concerns.

Click to access chap1.pdf


(This page has the entire document listed by chapter and coverage – excerpts are from Chapter 1 )

– These are excerpts from current IMF team analysis that will likely be used for decision and policy – making going forward. Great charts, good info, perspective fairly concise and comprehensive as overview of current situation – for US and global economies.

(My note – cricket diane)