The news is gloomy. The United Kingdom's economy contracted by 0.2% in the past quarter of 2012. Today, the BBC announced that the US economy has had a negative economic growth of 2.3% which is worse than many analysts that predicted. Spain announced that it was officially back in recession with 25% of its population official designated as unemployed.
Since 2008, western economies have adopted fiscal stimulus packages one after the other but the economies cant still turn the corner. Its like a patient in intensive care who doesn't show signs of real recovery but only allows a few flashes of hope.
To be fair, Obama's stimulus packages saved the US auto industry and the auto giants have now turned a profit and paid off US government loans but still...
No matter what strategies economists devise to revive western economies, the results are still feeble.
And the political repercussions are clear. Ruling parties in Greece,Netherlands, and recently in France are feeling the wrath of main-street. And had Obama had a more formidable opponent, the economy would have done him in at the next elections
The IMF has come up with a rescue package fund of over $ 400 billion to bail out countries in need- a sure certainty.