For Immediate Release
IMF Chief Warns of Financial Disaster Driven by Inequality
WASHINGTON - IMF Head Kristalina Georgieva warns of a return of the Great Depression driven by inequality and financial sector instability in a speech delivered at the Peterson Institute of International Economics. Georgieva highlighted new IMF research that compares the current economy to the "roaring 1920s" economy that culminated in the great market crash of 1929.
"The IMF delivered a stark message about the potential for another massive financial disaster that we last experienced during the Great Depression," noted United Nations finance expert and Jubilee USA Director Eric LeCompte. "With inequality on the rise and concerns of stability in the markets, we need to take this warning seriously."
In addition to financial sector stability and growing inequality, Georgieva shared that we face additional challenges in the current economy.
"Trade problems and climate-driven weather events pose additional risks at this time," said LeCompte. "It's imperative that we ensure the financial sector is free of risky behavior and corruption if we want to protect ourselves from another global financial crisis."
SCROLL TO CONTINUE WITH CONTENT
If you think a better world is possible, support our people-powered media model today
The corporate media puts the interests of the 1% ahead of all of us. That's wrong. Our mission? To inform. To inspire. To ignite change for the common good.
If you believe the survival of independent media is vital to a healthy democracy, please step forward with a donation to nonprofit Common Dreams today:
Read Georgieva's full speech here.
This is the world we live in. This is the world we cover.
Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news outlet. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Won't Exist.
Please select a donation method: