Friday, September 16, 2011

IMF's Lagarde fires off warning to world leaders

The Managing Director of the IMF, Christine Lagarde has warned politicans and policy makers from across the globe they must unite and take bold action to avoid a financial meltdown. Tough ecomomic decisions such as tax hikes must not be delayed for the sake of electoral expediency, she said.

Lagarde was making her first major speech as IMF chief in Washington.

“Exactly three years after the collapse of Lehman brothers the economic skies today look troubled, they look turbulent as global activity slows and down size risk increase and we have entered into a dangerous phase of the crisis.

‘The euro area debt crisis has worsened, financial strains are rising and again without collective bold action there is a real risk that the major economies slip back instead of moving forward,” she said. more