IMF Chief Christine Lagarde says the global economic recovery has been weaker than expected, and warns of the risks tied to the Ebola virus. Bobbi Rebell reports.
The global economic recovery is just not good enough- says International Monetary Fund Managing Director Christine Lagarde: SOUNDBITE: CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "The global economy is weaker than we had hoped only six months ago. So there is recovery, don't get me wrong. But weaker than what we had thought. And we forecast a modest pickup in 2015, as, and that is an important factor, the outlook for potential growth has been pared down." At a speech in Washington D.C. ahead of the annual meetings of the IMF and World Bank, Lagarde warned about many clouds on the horizon- including geopolitical risks- warning about the Ebola virus. SOUNDBITE: CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "The development of the Ebola virus, if it is not contained, if all the players that talk about it, don't actually do something about it, to try to stop it, to contain it and help those three countries deal with it, it might develop into something that would be a very serious concern and could cause significant risks." Lagarde also warned about financial risks- concerned that easy money policies could fuel financial excess. Robert Brusca of Fact and Opinion Economics: SOUNDBITE: ROBERT BRUSCA, CHIEF ECONOMIST, FACT AND OPINION ECONOMICS (ENGLISH) SAYING: "I guess I share some of those concerns. I don't share them completely. I think when you look at the stock market, I think the values make a little bit more sense compared to what is going on. Price -earnings ratios aren't all that stretched. It's true, the market doesn't go down all that much. But you know, you look at where the bond market is, you look at the low level of interest rates, and this is the thing you have a hard time really having a big sell on the stock market in this environment. We are still growing. Corporate earnings are growing and so you grow into your stock prices and as long as the multiples aren't too stretched, it's not really a problem." But, he adds that Lagarde is correct in his opinion, in stressing that the economic weakness is a global concern, with weakness in areas like the euro zone impacting the U.S. markets- in large part by continuing to push the dollar higher.