The IMF Director gave an interview on the state of the financial crisis and global economy. Guess what? The crisis is not over.
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," Strauss-Kahn was quoted as saying in an advance copy of an article to be published in Der Spiegel on Sunday.
Strauss-Kahn said he wanted to see more action from nations to curb bankers' pay and tighten capital requirements in the banking sector.
Maybe he's reading EP for we're saying that, most recently by this post.
He argued that global economic growth can no longer be expected to come from such macro-economic imbalances as US indebtedness.
In the United States, hard-hit by recession, "the household savings rate, which was practically zero, is now at 5.0 percent ... Good news for the deficits. But who will replace the US consumer to power global growth?"
He recalled that the United States accounts for 25 percent of global output.
We also said Don't expect that consumer to save you.
Beyond tightening financial regulation and requiring more capital reserves, the IMF head specifically mentioned executive pay needs to be curtailed.