"All sides should pool together in the national interest" to avoid another "avoidable political mistake", she said.My view:
Ms. Lagarde could not be more mistaken.
The EU and IMF increasing sovereign debt levels to bail out a highly leveraged banking system of interconnected banks.
They burdened over-indebted countries with even more debt who have no hope of ever repaying for the sake of saving the Euro currency, a mad currency construct if ever one was envisioned.
And now they talk about further progress needed toward a banking union.
This is equivalent to giving a juvenile delinquent matches and a can of gasoline when he in on probation for burning down the school. In the end, the delinquent will only cause a greater fire.
So Ms. Lagarde, consider again your rationalization about stopping the collapse.
You have only succeeded in delaying it.
But the next time the collapse comes, the damage will be greater than the first as debt deflation resumes with vengeance.