The first deputy managing director of the IMF says that several advanced economies are close to a mild recession, while an economist predicts that over a 1000 hedge funds will close this year. Following are today's top videos:
Bernanke On the Economy
“My remarks today will focus on recent developments in the financial sector and the economy and the challenges that we now face. As you know, the financial systems in the United States and in much of the rest of the world, are under extraordinary stress—particularly the credit and the money markets….”
—Ben Bernanke, Chairman, Federal Reserve
Pimco's El-Erian on the Markets
“I want to feel better [about the economy] too, and more importantly, I want it to last. But it’s still too early to say that the “feeling better mode” is going to continue for a long time. We need to see a lot more on both the policy side and the technical side.”
—Mohamed El-Erian, co-CEO & co-CIO, Pimco
Hedge Fund Closures to Soar
“I’m afraid we’re going to see a lot more of these types of events in the remainder of this year. Last year, we saw 500 hedge funds closed, and I think the number could be at least double that [this year]. It will be a combination of a number of factors: performance may play an issue with some of the strategies, failures in the underlying markets, but also, risk aversion amongst investors….”
—Philip Pearson, Head of European Development, Aviva Investors
Lipsky Discusses the Economy
“We think that several advanced economies are either in, or very close to a mild recession. Emerging market economies have also slowed, but are still growing in a relatively robust way compared to the advanced economies.”
—John Lipsky, First Deputy Managing Director, IMF
Maria’s Market Message
“The latest data on home sales could move the markets Wednesday, but stocks plummeting for a second straight day despite a move by the federal reserve to try and unfreeze the credit markets. The central bank announcing plans to buy massive amounts of commercial paper, which is short term debt many companies use to satisfy immediate cash needs.”
—Melissa Francis, CNBC’s Closing Bell
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