Dominique Strauss-Kahn, the head of the IMF, says world leaders at the G20 summit are ducking the critical issue of cleaning up the toxic assets poisoning the banking system and risk prolonging the worst global recession in generations, reflecting the long-held position of this blog.
The fund's experience from 122 banking crises suggests "that you never recover before the cleaning up of the banking sector has been done". The same is true of the clean up of US S&L's, Japanese banks and every other similar crisis.
Mr Strauss-Kahn's warnings were echoed by Mario Draghi, the head of the Financial Stability Forum, the new body of regulators, finance ministers and central bankers. "The main thing we need now is to implement a sense of transparency where we can put a credible floor to the bank losses".
Amen to that.