“The world financial system is on the brink of collapse”. That was the stark warning at Saturday’s IMF meeting delivered by its boss, Dominique Strauss-Kahn.
It has thrown its weight behind the G7 action plan drawn up by the wealthy nations on Friday. The IMF says no resources will be spared in tackling the crisis.
“So we need to be ready, ready answering to many countries asking for support. To do that we have a lot of resources which are available and the world must know that we are ready to help countries that need some support,” said Strauss-Kahn.
The G7 ended its two-day meeting with President Bush saying their strategy would lead to a “path of stability and steady growth”.
“As our nations confront challenges unique to our individual financial systems we must continue to work collaboratively and ensure that our actions are coordinated,” he concluded.
Bush also made an unannounced visit to the G20 meeting to underline the point that a global crisis needs a truly global response. Will the markets be convinced? We will see their reaction tomorrow.