Tom Keene Talks to Deutsche Bank’s Alan Ruskin

Tom talks with Alan Ruskin, chief of G10 Foreign Exchange Strategy at Deutsche Bank, about risks in the U.S. and Europe

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Tom Keene

August 12, 2011 at 2:00 AM UTC

This article is for subscribers only.

BusinessWeek Cover Image (11_34, 1000x1800)

This article is part of the August 15, 2011 issue of businessweek.

What is the best form of policy action in the U.S. or Europe?
I think the biggest worry out there is that policy is somewhat tapped out and we’re in a liquidity trap.

Bank stocks are struggling. Is it just that they have to adjust to 2 percent global GDP growth, or is there more going on here?
There’s been a perception of underlying vulnerability. Growth around 1.5 percent to maybe 2 percent is vulnerable to additional shocks that push you into recession. I think if there’s any good news in this, it’s that this is not 2008 to the extent that the real economy doesn’t seem to have the same level of imbalances. There are no inventories to trim in a drastic way, corporations are lean and mean. On the financial market side, there’s lots of liquidity.