STRAUSS-KAHN IS OUT – AT 8:36 A.M. ET:  From the Washington Post:

Dominique Strauss-Kahn, the managing director of the International Monetary Fund, who is facing attempted rape charges in New York, announced his resignation late Wednesday night.

In a statement, Strauss-Kahn said he is resigning “with infinite sadness” in an effort “to protect this institution.”

The resignation, while providing clarity to an organization reeling from the accusations facing its managing director, immediately sets off a scramble about who will lead the powerful organization and what that will mean for the global economy.

Under Strauss-Kahn, the Washington-based IMF has taken a muscular approach toward fixing Europe’s financial woes, advocating financial bailouts for ailing nations such as Greece and Portugal. Without Strauss-Kahn at the helm, Europe is at risk of losing a key source of financial support in its efforts to contain the debt crisis buffeting the continent.

COMMENT:  The reason is that the "third world" is demanding that the new director come from one of its countries, meaning they want a bigger chunk of IMF cash.  Traditionally, the head of the IMF has been European, and that is being challenged.

The charge to have a third-worlder head the fund is being led by South Africa, which is ironic, considering the charges against Strauss-Kahn.  South Africa has one of the highest rape rates in the world, as well as one of the highest overall crime rates.  But what are little things like that when one is considered a great moral leader.

Obviously, if the IMF could not devote its current level of attention to Europe, and several European nations slip into bankruptcy, that could have an impact on the American economy as well.  So we've got a dog in this hunt.

May 19, 2011