has been watching it closely from this side of the pond all along founder of credit write downs edward harrison edward it's nice to have you in studio happy new year and have a new year to you i think the last time we spoke was in november and we were probably talking about the euro zone crisis haven't gone away we're still talking about the eurozone crisis but it is a new year and you you know your former. your former diplomat you speak six languages you have this much more unique international perspective that we look for from you so tell us what you see in store for two thousand and twelve with europe assume more of the soon is what we saw before basically all of the same parties that we saw before have the exact same positions they did in a sustainable solution over the longer term really what you need is you need the banks to be weak and to write down the debts that are unsustainable to countries like greece and potentially poor to. no ireland and spain and you need these countries to basically come out and say look you know we need to take give you guys a haircut. and you need the c b in

neighboring countries and now to help me figure what this all means founder of credit write downs edward harrison welcome to the show edward so right now we have leaders from germany and from and from france discussing the euro zone. can we expect anything significant to come out of it. is going to come up because ultimately the eurozone to the policy called is which basically means they have a field policy in terms of how they're addressing the crisis they think the crisis is about public sector would in fact it's about private sector debt a imbalance between the coeur and the periphery in terms of the competitiveness of those countries because the various countries to build up current account imbalances which resulted in huge increases in the periphery so outside of greece that's exactly what we saw in places like portugal spain ireland spain ireland for instance a current account surplus or actually budget surpluses before the recession. the whole thing is going to pieces and there's thinking it's all about the budget but it's not and as you say everything is going to pieces and what's not hel

meantime edward harrison founder of analyst for credit write downs he believes the problems outside the single currency area in europe stem from attempts to apply those euro zone. so you have the eurozone and then you have the wider it's not just about the eurozone in terms of debt there imbalances that have built up everywhere and i think that it's important that the a euro area. that people outside the euro area stick to the same rules as within the euro area just from a cosmetic perspective so the germans don't want to have different expectations of what happens in romania hungary than they have. in the euro area and so that's really caused the same tactics to be applied in terms of austerity budget cuts etc . as a result there's lots of unemployment and the riots. and later today here on out and. compare the economic crisis to the recent costa concordia cruise disaster focusing on captains abounding financial ships food program to be coming your way at seven thirty s. nine hundred thirty g.m.t. . so this captain schettino he's brought to shore he's now everybody knows he's abandoned

collapse talks have been going for three days now and dragged on past midnight into today but edward harrison founder of analytics firm credit write downs believes the eurozone is shooting itself in the food with its approach to the debt crisis. so you have the eurozone and then you have the wider it's not just about the eurozone in terms of their imbalances that have built up everywhere because ultimately the eurozone to the policy called us which basically means they have a field policy in terms of how they're addressing the crisis they think the crisis is about public sector. it's about private sector and so the. really cause the same tactics to be applied in terms of austerity budget cuts etc you know in as a result there's lots of unemployment and the whole thing is going to pieces and there's thinking it's all about the budgets but it's not. while top economists and politicians and gage and get more talks to find a remedy to the ongoing debt crisis max and stacey are back to draw parallels between the recent shipwreck in italy and how financial chiefs handled the debt contagion that's i

of news out of the fed is trying to tell congress to do something about housing we'll talk to edward harrison of credit write downs dot com to say how could a housing have a correction when the whole world seems to be drowning and there's only so many life raft seems like the fed is picking their friends and on wall street for those life those are a few items we're going to touch on europe too well that is definitely something to look forward to that is going to do it for now thank you lauren for more on the stories we covered you can head over to our t dot com slash usa you can also check out our youtube page it's youtube dot com slash artsy america and you can also follow me on twitter liz wall the capital account with lauren lyster is coming up next we'll see you right back here with an all new show at five. pepper spray just burns your eyes right right i mean it's like a derivative of actual pepper it's a food product essentially. this is much stronger than anything in the bio absolutely thousands of times stronger than any kind of bird you ever put in your. i had a family i lived in a fa

with ed harrison of credit write downs that was yesterday a you tube viewer mr zak eighty eight said i think things will play out exactly opposite of his prediction. some sunni's talking about edward i perceive dollar index over one hundred long the dollar may be the biggest trade this decade i just want to point out go back and listen to the interview with that word because edward told me and fact similar to what you're saying to start planning my vacation to the a mall ficos next summer because of the euro and the dollar strengthening against it and optical density wrote to me on twitter about our interview with professor steve keen where we discussed occupying economics department happened a while ago but we really air the interview last week when we're on vacation he caught it then we're so glad and he said fabulous interview with steve keen and here's the occupy economics you suggested and he shared a really great video to show some of the action that's been going on from a group trying to change the economics profession here's a bit of that video. we're going through a period of economic crisis. that's kind of illustrated a lot of the shortcomings conventional approaches it'