IMF head Christine Lagarde on bloomberg tv.

  • US needs fiscal consolidation, but not too much
  • Concerned about “right balance” to austerity for world economies
  • ECB only central bank with “a bit of space” (talking mon pol)
  • Japan central bank has clearly innovated

Meanwhile Reuters are out with a story saying that due to the IMF’s failure to predict the Sub-prime or Eurozone crisis they are now overloading reports with alerts on possible downside risks.

Nothing like the scatter gun approach to predictions