First Business’ Bill Moller talks with Janet Tavakoli, president of Tavakoli Structured Finance, about her new book, The New Robber Barons, a compilation of articles and other pieces she wrote about the global financial crisis.
“What we’ve learned from this crisis is that when you throw trillions of dollars on the table, nobody tells the truth and everyone plays for keeps,” Tavakoli says.
Europe is wrong on austerity that may sink the global economy deeper into the 1930s-style depression which has already begun, Nobel Prize winner Paul Krugman tells Reuters in an exclusive interview.
“There will be a need to rein in the debs eventually, but right now it’s just a spiral,” Krugman says. “It’s like a medieval doctor who â€¦ you’re sick so he bleeds you and you get even sicker so he bleeds you some more. It’s just not working.”
European Union Commissioner Ollie Rehn told Reuters he thinks a resolution to the Greek debt crisis is close, as the government and private sector bondholders continue negotiations.
“They are working on, and I am working on, and I believe we will succeed in agreeing on a voluntary deal, voluntary agreement,” Rehn said. “First, there needs to be a deal on private sector involvement and then, in a way, after that but intertwined to that, interlinked to that, there’s going to be an agreement on the key parameters of the new program.” (more…)
New York University professor and economist Nouriel Roubini, who predicted the 2008 financial crisis, talks Greek debt with Bloomberg TV’s Margaret Brennan. He discusses the prospects for an accord between Greece and its private creditors, which include banks and hedge funds.
“â€¦ [E]ven if they reach an agreement, but even if they reach an agreement, there’ll be so many holdouts that then they’ll have a problemâ€¦,” Roubini says.
Watch this excerpt of the full interview below.
Update: Greylock Capital’s Hans Humes tells Margaret Brennan he’s cautiously optimistic that Greece and its creditors will make a deal.
Hans Humes, president of Greylock Capital Management talks with Bloomberg TV’s Margaret Brennan about a halt in the talks between Greece and its creditors after negotiations in Athens failed to yield an agreement.
“You could say there’s a bit of an impasse right now,” Humes said. “I think the issue at hand now is, the creditors have really given a lot of ground. â€¦ The sticking point is coming down to what the interest rate would actually be on the new bond, and then some of the structural elements.”
Michael Platt, founder of the $30 billion hedge fund BlueCrest Capital Management LLP, talks about the European debt crisis, euro-zone banks and investment strategy. He spoke with Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “InsideTrack.”
“The level of concern of what we have about what is going on in Europe is absolutely huge,” Platt said. “I mean, you see evidence all over the markets these days that the pricing for the potential of a eurozone break up, is distinctly non-zero, contrary to what everything is said by policy makers and by central bankers. â€¦ [I]f you look at the debt of, say, Italy, at 120% of GDP, which is increasing at a real rate of 5% â€¦ and you look at the GDP, which is now forecast for next year to be declining at 0.5%, arithmetically that means that debt is going to blow up.”
Peter Schiff, chief executive and chief global strategist at Euro Pacific Capital, tells Reuters that the United States faces an imminent debt crisis that will make Europe’s problems look a “sideshow.”
“I think the sovereign debt problems in America are much bigger than the ones in Europe, collectively,” Schiff says. “I think it’s very imminent. In fact, if it weren’t for the problems in Europe, it would probably already be here.”
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