Capital Account -- 1/26/12
Well, it is day 2 of Davos, and the eurozone crisis remains a main focus. George Soros was recently out with an editorial advocating for more Europe as the solution, while David Cameron, also in attendance at Davos, has been portrayed as a thorn in the side of eurocrats who want to use this crisis as an opportunity to make the dream of ever-closer union a full-fledged reality. Our own Lauren Lyster, host of Capital Account, is on the ground in Davos to give us the latest on this, as well as any special tidbits and gossip that she is gathering from the big annual event. And back in Washington, the Fed's recent decisions to keep rates near zero for at least another 3 years may have prompted Alan Greenspan to release an op-ed in the Financial Times today talking about the dangers of central planning, and the perils of meddling with the markets, but many remember Alan Greenspan as Alan "bubbles" Greenspan, and as the man who didn't shy away from putting the "petal to the metal." We will get into whether or not the low interest rates of the Greenspan administration, and previous easy money policies, has been a contributor to the current crisis with Former Federal Reserve Vice Chairman Alan Blinder. And while we're busy untying the mysteries of the temple with economics professor at Princeton, Alan Blinder, many in Europe are busy tying the continent closer together. Billionaire investor George Soros had his op-ed in the financial times today, where he proposed a plan that would allow the bond markets to keep governments on a quote "short leash," least they risk losing precious ECB facility access. Again, we check in with Lauren Lyster for what she is hearing on the ground in Davos.