5 responses

  1. Dave Holden
    23 October 2011

    Great discussion of the mechanics of interest rates and banking toward the end – well worth the watch.

  2. Ralf T
    23 October 2011

    The prefered solution for the banking situation by a guy you have been linking to from time to time( http://kantooseconomics.com/ ):
    What is your opinion with regards to that idea?

  3. David Lazarus
    23 October 2011

    The comments from Germany about more austerity in Greece and seizure of Greek national treasures will basically inflame Greece. Ireland may be recovering very slowly because of its exports but with a recession in Europe effectively slashing their exports what hope for Ireland? I think that Ireland will return to the markets attention once Greece defaults and Europe goes into recession. That might be a shock to many who now see Ireland as no longer a risk.

    Further out I see serious problems with Germany. If Ireland returns as a concern that will put the $110.5 billion that Germany has invested in Irish banks at risk. With Greece defaulting that will push CDS rates through the roof and the markets will look much closer at Ireland again. Also it will mean potential problems with the $140 billion that the Uk has in Ireland. Neither Germany or the UK banks could withstand deep haircuts on Irish loans.

  4. dankyogurt
    23 October 2011

    Could not agree more with Greece defaulting now before they sell off all of their infrastucture and resources, out of 126 countries with rated debt they are 126th. They are not trying to save this patient, only putting makeup on a corpse so they can extract some vital organs before burial. Bring back the Drachma, and soon after bring on the new Deutsche Mark.

  5. Oldrich
    24 October 2011

    Ed, great interview as usual. Max should definitely invite you more often. You are one of my favorite and most enlightening guests on the show.

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