Steve Keen on the transmutation of Zombie Banking into Zombie Government!
Ireland will reportedly hold a referendum on Europe's new fiscal treaty for stricter budget discipline. The former prime minister is against it, saying a no vote could force ireland out of the euro. We've seen referendums called for before in the Eurozone crisis – didn't seem to end well last time for democratic self-determination. Will this be yet another case of "the economic crisis sis too much for democracy" theme? A story of "we need technocrats" to navigate this all to volatile world? Is this euroland or zombie land? Are zombie banks feeding on governments, turning them into zombies too?
And talk about a liquidity crisis in Europe! We play a video of Angela Merkel getting doused with pints of bear at a party. Is all that cheap liquidity generated by the ECB for eurozone banks going right back to Germany, as the weaker ones like Italy need to keep going back to the bar just to keep their glasses from draining. So will German banks be the prime candidates to engage in the ECB's upcoming LTRO carry trade? We'll break down carry trade in the back-by-popular demand word of the day!
And what can we learn from wile e coyote? Well, in economic terms he just had a minsky moment…today we'll have a few more moments talking minsky and what he can teach us about this new upside-down world that we are living in with our favorite economist from down under Steve Keen.
Follow us @http://twitter.com/laurenlyster