Welcome to Morning Macro on Tuesday 14 February 2015.
Today, we start with a look at some key figures and events in the US economy, with Chris Bailey, founder of investment consultancy Financial Orbit. Why have foreign holdings of US government debt dropped; how many Fed interest rate rises should we expect in 2017; and what can we learn from the current season of corporate earnings?
Sigrún met with Jón Daníelsson director of the LSE Systemic Risk Centre to talk about financial risk. Daníelsson emphasis that the lessons from 2008 shouldn’t revolve about more or less regulation but take note of the fact that a difficult situation evolved into a crisis as everyone tends to behave the same way. Regulators should emphasis that markets are best made up of different actors who behave differently, not try to use force herd behaviour by treating different entities the same way.
The second part of that interview will be in the Friday podcast and the whole interview will be in the Morning Macro Weekend Edition.
Music by longzijun