The World Bank Running Out of Money?

~~By InsightAnalytical-GRL

Well, here at home the FDIC is broke, but guess what?

The World Bank is on the verge of going broke, too…

According to the  Telegraph (U.K.):

World Bank could ‘run out of money’ within 12 months

(SNIP)

The Bank, whose job it is to support low-income countries, has had to hand out so much cash in the wake of the financial crisis that it faces a shortfall in what it can spare for new projects within 12 months.

“By the middle of next year we will face serious constraints,” said its president Robert Zoellick, as he launched a major campaign to persuade rich nations to pour more money into the Washington-based institution.

He conceded that such a task was likely to be extremely difficult, given the difficulties facing countries in the wake of the developed world’s biggest recession since the Second World War.

Although the Bank has enough cash to fund existing projects and its day-to-day operations, the demands thrown up by the global recession have meant it may need extra capital contributions from rich nations to bolster its balance sheet if it is to satisfy such needs.

Mr Zoellick, speaking at the opening of the IMF and World Bank annual meetings in Istanbul, said the Bank needed a capital increase of $3bn-$5bn, though others suspect the eventual need could be higher still.

SNIP

The money would be shared between the International Bank for Reconstruction and Development – the key part of the bank, which lends to poor nations – and the International Financial Corporation (IFC), which lends to companies.

The World Bank has pretty much screwed poorer countries with the terms of the largesse they’ve offered in the past, but, nonetheless, it’s still pretty amazing that this oufit would be afraid of  running out of cash.

What an economic cesspool we’re in…

***

By the way, Robert Zoellick is an alumnus of the George W. Bush Administration…

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6 Responses

  1. And the good news just keep on a’coming!

  2. Any bets on how long it is before Pelosi, Frank & Dodd sponsor a bill to bail out the World Bank?

  3. I told my debt-ridden SIL that she ought to run for public office. When she wondered why I told her she spends money like a politician.

    If she was elected she could spend other people’s money and not go further in debt herself. I think she’s considering it.

    She’s eminently qualified, she’s selfish, somewhat stupid and thinks that because she says something that makes it so. See? A perfect politician.

  4. Gee Kenoshamarge, your SIL really should run. She is perfectly qualified.

  5. Unless and until voters stop voting for twits that have the same world view as my ditzy SIL and the integrity of Tony Soprano what needs fixing won’t get fixed, instead the problems will be exacerbated.

    People of character, substance and integrity are needed. Instead we rhetoric, partisanship and ego. But we elected them. Until we send them packing the problems will not get better, they will get worse.

    I believe, and don’t much like believing it, that we have finally reached the “tipping point” in our ability to withstand the “leadership” of corrupt, selfish, egomaniacal fools.

    I’m frightened for the future of my grandchildren. Even the Obot. Or maybe particularly for her. She had neither the brains nor the gravitas to survive hard times on her own.

  6. If I had a clue as to how money worked, I might speculate that the Euro to the Dollar is too strong. It keeps those cheap Americans at home.

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