Let’s try this again, shall we? This afternoon ~4:15pm to discuss EuroZone. Bullet points:

Greece is a small dysfunctional economy with a disastrous set of policies — it will be painful, but not impossible for them to default or leave the Euro.

Italy is a large robust economy with a disastrous set of deficits — it will be disastrous and impossible for them to default or leave the Euro. They will be bailed out or the Euro will collapse.

Spain is a large dysfunctional economy; they cannot restructure or grow their way out of their problems — like Italy — and they cannot defaulty or leave the Euro like Greece. The options for EU policy makers re: Spain are terrible or awful.

US Bonds remain a safe haven

More to come later.


Category: Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “Media Appearance: Dylan Ratigan Show (11/8/11)”

  1. JohnnyVee says:

    If Greece leaves the Euro currency, the deposits in its banks will have to be designated as Drachmas. A Drachma will, in a matter of minutes, be worth about 50% less than a Euro. Therefore, it would be imparitive for a Greek citizen to withdraw their Euros before the currency is designated as a Drachma. This will cause a run on the Greek bank. All Greeks that fail to extract their Euros before they are Drachmas will loose 50% of their wealth.

    Any sane Italian, Irishman, Porty, Spanard will race to the bank, when they see a Greek loss 50% of their wealth. Runs on banks happen electronically these days. What is the plan to prevent a bank run?

  2. Orange14 says:

    OT but your WaPo column of Sunday has been referenced by Paul Krugman in one of his blogposts today! http://krugman.blogs.nytimes.com/2011/11/08/boom-for-whom/

  3. 4whatitsworth says:

    Grease has roughly the GDP of Maryland so who the hell cares what they do. Italy is important and roughly the size of California. Wait speaking of California what about the 500 billion in unfunded state pensions let’s get our own house in order before we obsess on the Italians.

    Regarding world economics the one thing no one is really talking about that I would like information on is a potential slow down in China and how that would impact the US and Europe.

  4. carleric says:

    Ithink investment grade intermediate term corporates might be a better safe haven than treasuries but whatever floats your boat.

  5. Bill Wilson says:

    Who is more in denial, Herman Cain or anyone who thinks the structure of the Euro zone is sustainable?

  6. Finster says:

    The Italians invented government finance and government bonds. The concept of “Monte Vecchio” may come back and permit a restructuring of their old debt into a servicable form. Most of their debt is domestic and there is a lot of “hidden” or hard to see wealth in Italy. Their shadow economy and black/grey money probably could muster a lot of firepower if they find a way to do it. I don’t want to sound too optimistic, but currently the grandees appear to come in and force Berlusconi out. I’m highly intrigued how it will play out.

  7. DJ2000 says:

    You forgot to mention that Spain has much less debt than Greece or Italy, just over 60 percent, which is still a lot, but at least the EU regulations permit 60 percent as the highest debt level.

  8. JerseyCynic says:

    Nice spot. You should seriously consider teaching. My eldest said she was starting to “get it” after watching your segment. They’re all wondering why we even need “money” anymore. I remember thinking about that as a kid — actually I still do.