Keen on the need for writedowns and Denninger on the Fed’s easy money
In October, European manufacturing barely grew. The final reading on the Purchasing Managers Index released by Markit Economics on Monday morning recorded a level of 50.6 percent for the 18-member Eurozone, which is just above the 50 percent demarcation separating contraction from expansion. France and Italy both recorded numbers below 50 percent, meaning that more than half of purchasing managers surveyed in those countries said their business' output was contracting. Edward Harrison weighs in.
Then, Erin sits down with Steve Keen – head of the School of Economics, History, and Politics at Kingston University. The ECB finished its asset quality review and, would you believe it, the entire banking system needs only some 0.03 percent of total assets for additional capital. Steve doesn’t think this exercise was credible and explains why. He also explains why, irrespective of bank capital adequacy, high private debt will mean more economic stagnation for Europe ahead.
After the break, Erin talks with Karl Denninger – author of “Leverage” and blogger at Market Ticker. Karl goes over monetary policy and technology and also explains why banks continue to charge steep prices on payday loans when the Fed has rates at zero. Karl also takes a critical eye to the efficacy of the Fed’s low interest policy. Separately, Karl has some interesting thoughts about Apple and its business strategy.
And in Defining Moments, some of our recent guests - Axel Merk, Nick Rowe, David Merkel and RT’s own Lindsay France - give their takes on the economic outlook in Europe, what the ECB should do about monetary policy, the future of graphene, and top macro investing ideas for the next few years. Take a look!
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