IMF Chief Argues Global Crisis Poised to Continue

The major media outlets around the globe scramble to paint a rosy picture of the global economy, but the IMF head thinks otherwise.

From Reuters:

The global economic crisis will continue and countries must do more to adopt financial market regulations, International Monetary Fund Managing Director Dominique Strauss-Kahn told a German magazine on Saturday.

"The global economic crisis will continue, even if Germany and France had some good figures in the second quarter"

Governments needed to develop 'exit strategies' from the stimulus packages introduced to boost economies, said Strauss-Kahn, adding, however, that it was dangerous to think the crisis was already over.

Asked by the magazine how liquidity that had been pumped onto the markets would be withdrawn, Strauss-Kahn said a combination of higher interest rates and ending direct intervention of central banks would be needed.

www.reuters.com/article/ousivMolt/idUSTRE58B0K620090912