CNN's Maggie Lake reports on how the government will continue to pay the bills despite hitting debt ceiling.
But while no one could have predicted the drama that was about to unfold in New York last weekend, economists, at least, began addressing the topic of Strauss-Kahn's succession months ago.
Several names have been touted as potential candidates to succeed Strauss-Kahn, 62, and his deputy, John Lipsky, who has already said he will step down in August.
As you'd expect, many of the favorites come from the world's emerging markets which want more of a say in the boardroom, in accordance with their rising economic clout.
Mind you, experts say it's unlikely the West will cede too much control, especially given ongoing concerns about the solvency of certain Eurozone members.
"The key global posts at the IMF and World Bank will still be carved up as privileges for the United States and the Eurozone," says Rachel Ziemba, a senior analyst at Roubini Global Economics in London.
"If that’s the case, keeping the institutions' legitimacy will remain suspect in the mind of the emerging market countries. They could insist Eurozone countries stick to their deficits and other criteria more stringently," she says.
Here's a snapshot of some of the potential successors the market is putting its money on for the top job.
Macau, China (CNN) – It would not be a stretch to say that Macau has made its fortune at the Baccarat table. The card game is the unchallenged favorite here, the only place in China where casinos are legal. In the first quarter of this year, government statistics reveal Baccarat made up a staggering 90% of gaming revenue, which totaled $7.3 billion. In a place where gaming revenue is the primary tax revenue, that is saying a lot.
Still Macau wants more than just Baccarat. As it watches Las Vegas expand to a center for entertainment, dining and shopping, the Macau government wants to follow. And Francis Lui is here to help.
Lui, Vice Chairman of the Galaxy Entertainment Group, unveiled Sunday his Galaxy Macau, an integrated casino-resort that cost nearly $2 billion to develop. With an artificial white sand beach, a 3,400-square-meter spa and more than 2,000 hotel rooms, the Galaxy Macau is attempting to lure visitors to spend time off the casino floor.
“Our aspirations are how to merge Phuket in Thailand with Macau,” says Lui of his new property.
Brussels, Belgium (CNN) – The arrest in New York of Dominique Strauss-Kahn, head of the International Monetary Fund, raises a number of questions across the Atlantic where the organization has been a leading player in the European bailout packages.
One man may not make an organization, but the timing of his arrest on alleged sexual assault charges could not have been worse. European Finance ministers begin two days of meetings late Monday to sign off on a bailout package for Portugal, consider offering Ireland a lower interest rate for its rescue plan and evaluate whether Greece warrants emergency funding.
Strauss-Kahn is expected to make his first court appearance to be arraigned on the charges Monday. The IMF chief's attorney, Benjamin Brafman, vowed to vigorously defend him in court, insisting his client is innocent.
Police have said Strauss-Kahn sexually assaulted the 32-year-old woman Saturday at the Sofitel hotel in Manhattan, then quickly headed off to a New York airport to board a Paris-bound flight.
As ministers sit down in Brussels, auditors from the IMF and the co-lead organization, the European Central Bank, continue their work in Athens on Greek progress in reducing their budget deficit and collecting taxes. IMF officials noted last week that early indications are not promising in Greece – all the more reason the arrest of the organization’s leader can serve as a major distraction.
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