Former FED President: US faces most serious crisis after WW2. IMF Head: Europe must limit crisis effects

The current crisis on the financial markets can be considered the worst after the second World War, former FED head Alan Greenspan says in an editorial for Financial Times. Greenspan was the President of the US Federal Reserve (FED) from 1987 to 2006. In his article, Greenspan argues that the crisis will create a lot of victims among which the risk evaluation system.

In his opinion, the current risk and econometrics models are too simple to be able to take into account all variables governing the reality of the global economy.

At its turn, IMF head Dominique Strauss Kahn declared in Paris on Monday that Europe’s main priority is to limit the effects of the crisis. Strauss Kahn declared, quoted by AFP that Europe’s new mission is hard, considering that both inflation and recession are potential problems in European countries.