Nouriel Roubini talks to Bloombergs Tom Keene and makes several excellent points, one of which is the issue of the deficit and the risks that a large deficit present. Roubini was a proponent of an ‘L’ shaped recession, now he has changed to that of a ‘double dip’ or ‘W’ shaped recession.
Bloomberg economics editor Tom Keene talks about the growing deficit in the US economy. The current account deficit in the US seems to have dropped? Could it be partly the reflation trade? Who knows, but this is certainly amazing news, it is hard to say why it caught so many people off guard, and the fact that it did means perhaps there is much we have to learn about financial crises and the indicators that go with them.
Tom Keene of Bloomberg talks about the Fed and the results we may see of the solutions being put in place by Ben Bernanke. He makes the interesting and valid point about Ben Bernanke being one of the best living historians of the Great Depression and why it puts him in the unique position of being able to navigate the situation the US economy is in. 50 beeps in the 10 year treasury equates to nine big figures on Euro Dollar, so going from $1.30 to $1.39. Tom also talks about savings rates. Great viewing.