Reply #29: Yes, we can! Let’s make Subbarao the IMF chief

[xchrom]

http://www.firstpost.com/economy/subbarao-as-imf-chief-10445.html?utm_source=MC_HOME

In an interconnected world, the arc of history bends to connect seemingly unrelated events. And even when it doesn’t, we can on occasion bend it to our advantage.

We are at just such a moment following the sensational arrest of IMF’s Managing Director Dominique Strauss-Kahn for allegedly sexually assaulting a hotel maid in Manhattan.

Equity and currency markets around the world are nervous as hell because Strauss-Kahn’s exit has plunged the ongoing talks to resolve the European debt crisis into disarray. Greece, that blessed country that operates in a parallel economic universe, is on the verge of a technical default on its debt, the consequences of which will have serious consequences on global markets.

With Strauss-Kahn now cooling his heels in the slammer, Eurozone has lost a man who lent considerable heft to the talks to resolve the debt crisis. The IMF has named Deputy Managing Director John Lipsky to step up, but – here’s the problem – the man is already counting down the days to his retirement in August.