With one speech Lagarde, the new head of the IMF makes it clear that she believes the state of economies and banks is running severe risks that are not being accepted by politicians both in Europe and US. This follows the similar but softer theme from Bernanke.
Lagarde calls for urgent action on banks
European banks need “urgent recapitalisation” to stop the spread of the eurozone’s sovereign and financial crisis; the US must act to stop a downward spiral in house prices; and both need credible long-term fiscal policies that allow spending to continue to support growth in the short term.
update:
Trichet of the ECB takes a different and thoughtful approach at his Jackson Hole Speech.
Jackson Hole Speeches – links to Fed, IMF and ECB respectively:
Bankwatch 