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Friday, 3 August 2012

Lagarde: "more can be done"

Bloomberg news reports,

"Lagarde also reiterated the IMF’s view that “more can be done” on monetary policy by the ECB. She noted that the central bank, which holds a policy meeting tomorrow, has already acted, including cutting the benchmark interest rate to a record low of 0.75 percent on July 5 and taking the rate on overnight deposits to zero to help spur growth in the region".

No, they have done too much already, and doing even more at this stage would, as we've stated many times before, just "kick the can further down the road". Lagarde, the IMF and the ECB need to finally get to grip with this. The ECB can't solve the european crisis and it can't make debt simply disappear, it can't shrink government spending and it can't build new businesses and products. The EU and its euro is not worth saving at all costs.