Comments on: Strauss-Kahn allegations are consequential for the global economy

By: FBreughel1

FBreughel1 — Wed, 18 May 2011 18:57:19 +0000

The word is out ! ECB has refused de-structuring Greece”s debt ! What a good, sensible decision ! Exact words from Lorenzo Bini Smaghi “a solution for reducing debt but not paying for it will not work “. And that is how the EU solves the free-rider and moral hazard problem in one decision. Still not convinced, Mr.El-Erian ?

By: kolea

kolea — Wed, 18 May 2011 04:33:27 +0000

The reports coming out on DSK’s past are dark indeed. Can we trust the IMF to spend our money wisely, maybe $100 billion soon, without even a proper vetting process for their top man? How can he not be vulnerable to blackmail with such a weakness and influence on how the IMF’s huge fund is used? It’s time for the US to reevaluate all its foreign loans, grants, and assistance.

By: PedroBatista

PedroBatista — Wed, 18 May 2011 00:00:34 +0000

The IMF needs urgently a person able to lead a completely change of actions to a global level. The name is Luis Inacio Lula da Silva, ex-president of Brazil. There is no other able to gather momentum to this sluggish economic global outlook. He is the truly “brigde constructor”. Together with Henrique Meireles ex-president Central Bank of Brazil is able to change the way growth in the global markets performs.

By: Jzyehoshua

Jzyehoshua — Tue, 17 May 2011 22:27:57 +0000

Who knows what evils a guy with a moral compass like DSK was involved in behind the scenes, or would have been involved in? Who is to say that whatever global economic woes to result are any worse than the evils he already perpetuated, or would have instituted?

IF DSK is guilty here, he needs to go – which is probable given the previous scandals he’s been linked to. The IMF cannot afford such a person at its helm – period. That it even put such a person in leadership should harm its reputation. Effects are beside the point. Get an honest person in there and start being accountable.

By: Jzyehoshua

Jzyehoshua — Tue, 17 May 2011 22:21:30 +0000

Looks like good implications to me – if the claims are true, of course. Would one really want a guy like this involved in the leadership of the IMF? Whatever the impacts on the International Monetary Fund, it’s well worth them to get a guy like this out of there. If it erodes confidence in the institution, then it is well-deserved for putting such a guy in power.

The effects are beside the point, this guy shouldn’t be in power if the claims are true, the ends don’t justify the means, and regardless of the effects, if he’s guilty, he needs to go. The IMF needs to be held accountable for its choices of leaders, ESPECIALLY because of its power – if that throws a wrench in its proceedings – tough.

Even if it means some problems to the global economy, we cannot know what problems would have been caused by such an immoral person in the leadership. It was bound to cause trouble, and best to fix it now before the potential for him to cause even more trouble substantiates.

By: futuresmkt

futuresmkt — Tue, 17 May 2011 18:06:26 +0000

Assuming the allegation is true, it raises more fundamental questions about Mr. Strauss and the management of the IMF. Focused (until very recently) on the developing world, it is curious that the maid was African. Again, assuming the allegation is true, obviously Mr. Strauss has serious psychological/psychiatric problems that, by default, impact his decision-making process. What has been the impact of these medical (assumption of guilt) problems on the global economic environment, specifically the developing world?

By: FBreughel1

FBreughel1 — Mon, 16 May 2011 19:53:38 +0000

Mr. El-Erian, what is so unsustainable about Greece selling off their assets, increasing their pensions and lowering the ridiculous benefits for their civil servants ? Moody calculated the worst case scenario on Greece: 34,4 billion. Truly, a 700 billion remaining ECB budget is more then sufficient to help the lenders. But no more freebies to Greece. Because that is what brought Greece into problems in the first place. And let Greece go down, you know it has no tangible implications for the rest of the EU economy.
Start believing it: Keynes is dead. He had to do without expectations economy and the world is a much smarter and well-informed place then it was. Nobody believes in freebies any more except the old socialists.