for soros another big name always appearing at davus and he says economy as a profession. how to keep economists from missing the next financial crisis notice that he says financial crisis is not a financial crime wave and i think that's an important thing to think about here he says that it's all about the mathematical models in particular that we need to really look at the financial market models for instance he says tend to be constructed was building blocks that assume stable and anchored expectations but as far back as one nine hundred twenty one frank knight of the university of chicago made the useful distinction between measurable risk and unknown unknowns which he called radical uncertainty nice point was that in a period of radical uncertainty expectations couldn't be anchored because they have nothing to latch on to well this is an ongoing debate and economics and. finance and what people fail to understand is that the liquidity the capital that's used to fuel capitalism comes overwhelmingly from the losers the people who make losing bets the people who make los

what does it link to but original artwork from william bond's i seven you can see this right here davus two thousand and twelve too many banker species one planet no future world poncing nomic summit many species they've got the gorillas the central bankers but they've got the primary dealers i think there's twenty eight of them these are the ferrets that are kind of. you know met manipulating markets to try to ease that push of quantitative easing into the global economy well max let's turn to some banker species in the headline the first one the correlation of laughter f o m c meetings this is the central banker species the f o m c is the federal open market committee at which the poll of three or zero sets global interest rates well apparently somebody had the clever idea of actually looking through the transcripts of the meetings and they found that the number of recorded laughs actually increased in frequency from two thousand to two thousand and six the peak of the global financial bubble in two thousand and one the fed f o m c erupted into laughter sixteen point five times per me

to buy shares before elections so so you were talking to some potential investors in davus right now on this. yeah i mean we are always talking to investors we're keeping our relationship with existing the best as we look for more years and we will be following the situation very closely also had to add that or better bond because also you know planning for the period is ation as they didn't do it last year so we also have to check with them what are their plans so it's not something on the immediate future but i would like to see even when markets are opened for the opportunity and my argument is if we're developing further then the stage we might be not just privatizing the existing shares of the government but seeking new capital and still do you think the timing is right i mean the markets are still far from settled are you expecting some some quick and pull through the market market market is still very bad there's no cause and negotiations on the greek debt which is taking place today and yesterday and of course the market is very nervous expecting good or bad news the market d

they're walking to the show thank you very much for coming my pleasure well on the eve of this year's davus i want to comment form the organizers warned that. i quote the world is facing significant and urgent challenges that we have only on prospects for future growth and the cohesion of societies and quote while it struck me that exactly the same words we used last year during the forum well it is just a repetition of the same very good phrase but does that mean that the world politician the world policymakers proved and they will during the year to do anything to tackle the crisis except ride war it's. a pretty accurate analysis it is this if it were european politicians have not done the work you should have done and we are now coming to an end game of a euro crisis. where is the solution or big euro zone breakdown personally i think that there will be a solution to the euro crisis and the human next quarter also we will see both of your economies bottoming out and that the solution is fine so what would have a solution be. more money is needed to provide confidence and personally i bel

and so is finding ways to breathe life back into the struggling eurozone lauren lyster reports from davus. today we heard from david cameron u.k. prime minister who had quite a different message than what we heard from angela merkel yesterday when she opened up davos so david cameron came out and said that number of things that he believes the euro zone needs he said they need a quick speedy resolution to greet debt issuance is and fiscal transfers and order to deal with imbalances so sounds to me like he's calling for some kind of euro bond said that there needs to be a firewall big enough and said you know really right now the euro zone has none of these things now this is in contrast to angela merkel yesterday who said we're not going to pledge more bailout money even though maybe the investment community wants it we're promising you that that we believe this fiscal integration will solve the problem along with structural reforms geared towards things like creating jobs so different message from u.k. prime minister today but a couple things i thought were really interesting so he was a

struggling to find a remedy to the debt crisis at the annual world economic forum or lister is in davus. we're going in today for davos at the world economic forum and today we'll hear from a number of economists and kind of thinkers about where the global economy is headed we'll have to see how much attention the eurozone captures though because it really has overshadowed a lot of other things that happened on the official and unofficial agenda here at davos we heard from a number of euro zone finance ministers and e.u. officials speaking with a lot of optimism about the euro zone solution saying they believe the fiscal compact will be reached with tighter fiscal discipline in that this will really help the debt crisis that the euro zone is dealing with they also said that greek bond holders will come to an agreement on haircuts for greek debt by this weekend to hopefully presumably avoid default which is definitely not a certain thing at all and that d.-day for greece is march twentieth after that optimism which was kind of the headline coming out of that we hasn't seen fitch the cred

we've been reporting on r t the world's biggest economic forum is taking place in the swiss resort of davus this year the get together is being elder under the banner of reshaping capitalism prompted by four years of financial turmoil and political protests the global elite will grapple with the thorny issue of how to create a fairer world when you see the compensation gaps that exist the unemployment levels that exist whole generations of employed potential employees that don't have jobs today the youth in different parts of the world yeah there are some fundamental issues that have to be looked at and quite frankly if we don't start with ourselves to understand our role from a business standpoint in dealing with these issues i don't know how they're going to be solved i mean to me this is a classic example of how it's a complex issue it clearly requires collaboration between the business community between governments and key policymakers and that degree of collaboration doesn't exist it's pretty hard to see how these problems are going to be solved but i want term. market watchers claim t

struggling to find a remedy to the debt crisis that the annual world economic forum or a lister is in davus. we're going in today for davos at the world economic forum and today we'll hear from a number of economists and kind of thing.

not social democracy or socialism as importer alegria or fascism or corporate statism as in as in davus but actually like a real free market we don't want to be ripped off or the banks or is or the climate change artist we'd like to have been able to live our own lives raise our own families run our own businesses their own neighborhoods or own our own countries and not have these groups both of which one world government not have to get them you know get them the heck out of our laws and so we're seeing these competing movements that won and brazil is kind of the anti capitalist movement they're saying that capitalism it's not working for something else needs to take its place and what that way is there are alternatives. well first of all what they mean by capitalism is the current state capitalist or or really fascist system the corporate state the combination of big businesses big banks big government operating it's the rest of us mussolini style so of course that doesn't work it's a it's a disaster morally and economically of what they want however is more you know this is more of a

mention oh these markets are insane they're getting more crazy i mean this is actually a theme of davus this year they're saying that we need to re-examine this entire model of capitalism and also that david cameron is the prime minister of britain has come out recently said we need to move toward another what he called moral capitalism so the entire model of capitalism has been understood is now under threat. what what is the what's the problem number one and number two other any simple tweaks changes that could be applied to kind of recalibrate this this is this freight train a capitalist capitalism gone off the tracks and. for for me to make it easier for me to function safely with the question i would replace the word capitalism with organized crime and all that we're seeing from the movies from davos david cameron and everybody else you and i both know this is the organized crime people trying to exert more control and somehow smooth out the wrinkles in their criminal mechanism . like a very easy for me last august when conceptually i just took a step back from everything that was

inevitably on the cards with cautious optimism and sharp criticism alike are just more lyster isn't davus. we heard from a number. of ministers and also from. the president. monetary affairs for the european commission we heard them all speak today in a panel and strike an optimistic note that they believe that things will be resolved now many people would disagree with that but as far as the people on stage . and was confident that the greek bondholders will come to an agreement on greek debt write downs and haircuts this week and that's kind of what made the major headlines and also believing that the fiscal compact the tighter fiscal compact for the eurozone will come together and a meeting on monday and that would impose of course fines for people that are countries rather break the deficit and debt ceiling rules we saw today that spain their unemployment rate came out a seventeen year high of twenty two point eighty five percent the finance minister from spain says that this is the biggest issue facing the spanish economy and we know spain is one of the largest economies in europe al