Larry Summers: Europe May Be Next Japan

Discussion in 'The War Room' started by PabloZed, Jan 21, 2015.

  1. PabloZed

    PabloZed Brown Belt

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    This interview is from today in Davos. It mostly concerns the anticipated QE policy announcement, but at the end of the interview Summers describes why the Eurozone is in real danger of becoming the next Japan in terms of stagnation.

    http://www.bloomberg.com/video/euro...-lawrence-summers-lg41lmswTE6THH7CPP_~qA.html

    Interestingly, the ECB proposal seems to follow much of what he suggests. The proposal as reported by bloomberg is $1.3 trillion with monthly purchases of approx $50 billion.
     
  2. AlucardNatasrd

    AlucardNatasrd Blue Belt

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    The obsession with retaining the Euro is also dooming Europe. It would be much more rational for Germany and France to consider retaining a unified currency, while cutting out most of the rest of the Eurozone.

    or how about...Germany just goes back to a national currency, as the EU really is just the Germany economy writ large?
     
  3. Which Doctor

    Which Doctor The ATT Heel Stable/Faction Belt

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    This.
     
  4. Lee978

    Lee978 Seeking Alpha

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    So looks like the ECB will be buying up €60 billion a month as opposed to the €50 billion most analysts and experts thought.

    http://www.wsj.com/articles/ecb-announces-stimulus-plan-1421931011?mod=WSJ_hpp_LEFTTopStories

    I guess the question now is what government bonds is the ECB plan on buying and for how long?
     
  5. drstrangelov

    drstrangelov Hey.

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    I don't want to hear about economics from a guy who blows 20-30 bucks a week on boating magazines. It's a little creepy.
     
  6. PabloZed

    PabloZed Brown Belt

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  7. SammyPops

    SammyPops Gold Belt

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    Not so sure.

    The EU could very well break up/drop the euro before a 20 year recession.
     
  8. Jack V Savage

    Jack V Savage Secretary of Keepin' It Real/Nicest Guy on Sherdog Platinum Member

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    I don't get it.
     
  9. drstrangelov

    drstrangelov Hey.

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    It's just a weird ritual for a guy to have, I don't get it either. Makes him a little suspect in my eyes.
     
  10. ultramanhyata

    ultramanhyata Gold Belt

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