Eurodollar University, Part 4 (MacroVoices)
Erik Townsend welcomes back Jeffrey Snider to MacroVoices for Part 4 of the Eurodollar University. Erik and Jeffrey discuss the failure of Primus and AIG back in 2008, the Gramm-Leach-Bliley Act, Henry Paulson and Glass–Steagall. They further discuss the Eurodollar system going parabolic in the 2000s, Banks manipulating regulations and the big picture end game of the Eurodollar system.
The final part of this series is available here, or here. In truth, we only covered a small part of the history of the eurodollar, managed (despite the series length) only a singular look at bank balance sheet construction (largely in CDS and Basel) and all before what happened in August 2007. There is a lot more ground to cover in the future, but this opening multi-episode “class” was intended as an introduction into the basics.
Of more immediate, or intermediate, concern is where we are now. To that end, Erik and his wonderful team have invited me back for a year-end celebratory discussion on the dollar. I don’t use the word bull to describe my position because I think it inappropriate for that term’s positive connotations. I don’t think the dollar has risen because of anything good, and if it keeps going that way over time (remember, nothing ever goes in a straight line) it won’t be because of the “cleanest dirty shirt.”
What they have planned is me and, in his words, “two of the most prominent dollar bears we’ve ever interviewed.” It’s not a debate but a discussion of where we are and why each of us might believe the system is moving as it is – or will be.
Again, that’s planned for yearend, so I’ll make sure to keep it updated as it gets closer and all the details worked out.