IMF: World on Brink of Recession

The head of the International Monetary Fund says the world is on the brink of a global recession but predicts the economy will begin to recover by late 2009. Dominique Strauss-Khan says nations must work together to avert a global recession and warns there is "no domestic solution" to the crisis.  He says this week's coordinated interest rate cuts around the world are a good example of the international cooperation needed to restore faltering economies. Strauss-Khan says the IMF also activated an emergency program Wednesday that allows the fund to provide loans more easily and quickly to emerging countries in economic trouble. The IMF chief made the remarks in Washington D.C. Thursday, as top officials from IMF nations and the G-7 industrialized countries are gathering for meetings on economic issues.  U.S. President George Bush is set to meet with G-7 finance ministers at the White House on Saturday.   World Bank President, Robert Zoellick is urging officials not to forget poor countries as the world crafts responses to the financial crisis.  Speaking in Washington, he said the crisis is hitting some developing nations hard because they are already struggling with high food and fuel costs.  Meanwhile, stocks in Europe were off as much as 2.5 percent at the close of a volatile day of trading.  U.S. stocks are also swinging widely and are current posting mixed results.  Earlier, most Asian markets were lower but the Hang Seng in Hong Kong closed sharply higher.