New IMF Head: World Economy Is In A Dangerous' Phase

Hard-hitting: IMF chief Christine Lagarde has issued a stark warning on the risks posed to European banks by the global economy. This Is Money

World Economy In 'Dangerous' Phase, Warns Lagarde -- Irish Times

CHRISTINE LAGARDE, the new managing director of the International Monetary Fund (IMF), warned the world economy was in a “dangerous new phase” and that officials must take new steps to strengthen growth.

Ms Lagarde, speaking to international finance officials and economists in Jackson Hole, Wyoming, said the US should arrest a slide in house prices, while European banks must be required to boost capital to prevent the Continent’s debt crisis from affecting more countries.

The US and European Union should enforce long-term budget discipline to free up cash for short- term stimulus, she said.

“We risk seeing the fragile recovery derailed,” Ms Lagarde (55) said. “So we must act now.”

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My Comment: The new IMF chief is blunt in her comments .... but the "have" countries in Europe are now fed-up with these constant bail-outs, and are about to throw in the towel.

Update: Urgent action needed to strengthen European banks as global economy enters 'dangerous new phase', warns IMF chief Lagarde -- This Is Money