When the IMF - an institution whose purpose is to spread neo-liberalism internationally - says that US and european austerity measures are making the recession worse, then it's a pretty serious situation.
Many of us on this talkboard have been saying for this for many months; the austerity measures are not only unfair and unjust, but are actually counterproductive.
That it's a serious economic situation is not in question. However the IMF call for fiscal stimulus is aimed at places like Germany, not the countries in the biggest debt, as a way to create some confidence. And even then, the advice is dependent on there being strong exports. They've also called for the forced recapitalisation of Europe's banks and I can't see governments handing over yet more money to banks, can you?