|
IMF chief says global intervention
needed on credit crisis
Reuters
Monday, April 7, 2008
Government intervention at a worldwide level is needed to address
the credit crisis, the head of the International Monetary Fund
said on Monday.
"I really think that the need for public intervention is
becoming more evident," IMF Managing Director Dominique Strauss-Kahn
told the Financial Times in an interview.
Strauss-Kahn's comments come just days before world finance ministers
and central bank governors gather in Washington for the meetings
of the IMF and the World Bank, where steps to address the crunch
in financial markets will be discussed.
Strauss-Kahn told the paper that government intervention -- in
the securities market, the housing market or the banking sector
-- would act as a "third line of defence" to support
monetary and fiscal policy.
(Article continues below)
"Effort has to be made on loan restructuring. With respect
to the banks, if capital buffers cannot be repaired quickly enough
by the private sector, use of public money can be examined,"
he said.
Finance officials and central banks from a host of countries
have been putting their heads together in past months to find
ways to tackle the crisis, to prevent it from spiralling out of
control and to stop such conditions from recurring.
Strauss-Kahn said the credit crisis was far more than an American
problem.
"The crisis is global," he said. "The so-called
decoupling theory is totally misleading." Developing countries
such as China and India would be affected, the paper said.
Full
article here.
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
