Euro Expert: 'I would recommend you panic'
- Uploaded by Isotrop on May 30, 2010
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In this widely watched BBC video, Hugh Hendry of hedge fund Eclectica Management recommends the world panic over the ongoing European debt crisis and then the group debates whether perpetual bailouts and a much longer slowdown are preferable to a real purging of the system and a much shorter recession that would also see major reforms.
At about the 3 minute mark, youâ€™ll hear Hendry call for the system to be purged,
Letâ€™s take on a recession. Itâ€™s going to be tough. People are going to lose their jobs. Theyâ€™re going to lose their jobs anyway. We can spread this over 20 years or we can get rid of it over 3 years.
It is somewhat bothersome (to me at least) that most mainstream economists - like Jeffrey Sachs in this clip - just dismiss this sort of talk out of hand, giving little of no consideration to the idea that there are fundamental flaws in the current system that can not be fixed.