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So will today's move by global central banks be enough to stop the market's recent roller coaster ride.
Joining us now is Robert pavlik He -- chief market strategist for bang in partners OK Robert we started the morning out Sarkozy.
And Angela Merkel said we're coming to the rescue and then the world's biggest central banks have come to the rescue.
The -- a 150 once but that still like this whole thing is over is it.
-- you know why because it hasn't really resolved anything really it's only providing liquidity.
To to the banks that are seeing -- overnight borrowing and short term.
Borrowing cost increase.
Really the importance of this announcement is that you have 5 central banks working in a coordinated effort.
Two to try this -- the cost that these banks are facing.
And this is really designed.
To be sort of laid back stop to these banks if and when one of these sovereign debt problems.
Really comes to -- -- one of these countries default on their loans.
So how easy the end game then ultimately how does this play out because even with.
The next tranches and what I think it's a billion dollars that takes restated to Christmas so how does this ultimately end.
Where you just set it right there it's going to take us another couple three months we're gonna be back to the same table looking for more money.
Because -- Greek government is having such trouble in getting these austerity measures passed.
Really I can understand the Greek people's point of view they don't want to take this -- they don't want to sort of have to give up their pay.
But really that's really the only thing that's going to save that they're gonna have to unload assets and really cut back on their spending now it's going to be a hard thing to do.
Really the best situation here and this is unfortunate but this country probably has that the fall it's -- probably take out another country China's gonna step in and probably save another country and that's gonna spend the -- What you have from Geithner and the other central banks is really a plan to sort of keep this from spiraling into a Lehman Brothers situation.
By the most part.
I wanna Stockar I want to go back to what you said about Greece having to -- -- do you think that is a certainty that Greece is going to.
Be allowed to devalue talk about China to there's been a lot of reports that China may come in and stepping in here and be a white Knight.
Explained the relationship between the -- What they're gonna do is -- going to try to provide the money to a country like Italy.
You know I guess they're connection would Markel -- and all that maybe that's why they're doing battle now but you know they're they're gonna step in and they're gonna try to support a country.
You know by the Paper but for the most part the Greek Paper has already been pricing in a -- fall.
And so you know it doesn't really matter if they default or not because they're borrowing cost of so far they're gonna they're borrowing -- the going to be very high when they do default.
But it's not the end of the world that doesn't not come off the face of the earth it happened Argentina had happened down in Brazil you know wait it's going to create some.
Pressure for the country in some problems.
But really it's going to help resolve this issue in the long term life -- the cut in the war early the world the global -- the global economy is going to be in a much better position.
Why are we seeing all this pertinent part pomp and circumstance and -- -- -- seems like a stage performance if you think that.
Greece is going to be fall YA is Merkel -- Sarkozy wire all these.
Officials stepping up to the plate and saying we stand behind Greece in which we wanna take continue to be part of the year -- -- ultimately.
Investor -- our pricing in a different story.
Because there in the same boat there brawl in the eurozone there are all you know -- -- on that same single currency.
If one of these countries the -- there's going to be -- lot of real problem for the banks that hold the Paper of these other sovereign nations.
And so the banks are gonna have problems the nobody's gonna want to lend to the banks that's why this whole program would today's announcement.
To sort of help provide the liquidity when these banks are not going to have anybody that turned to.
Bob let's switch gears here a little bit talk about the markets a lot of people wondering how do I invest in this market were up four days in a row.
You have some -- -- that you want to share with the viewers right.
Right let's let's start off with the situation it doesn't look all that and pricing things look like they're spiraling out of control the employment situation.
The problems in Washington housing situation.
You know would be the weaker economic numbers.
Everybody saying you know this is this is not a great time to invest well it's actually a perfect opportunity especially if you have a longer than three year time horizon.
Why do you do this now think about the movie would Jimmy Stewart Jimmy Stewart tells the people come into the bank go home loan.
Saying you know -- not selling he's buying same thing what Warren Buffett He doesn't He doesn't buy when everybody's buying.
He's buying what everybody selling that's really what the home if you -- should be doing.
Take a little bit of your money and start putting it into the market put it into the highest quality companies that you can -- -- great management great -- -- domestic international exposure.
Real solid balance sheet.
Don't worry about the aspects when I started in this business -- mean it meant the stuff that you put on your chest -- had a would get ahead coal.
You know don't worry about that.
And as always you know look at.
Look at these high quality companies look like like Caterpillar like McDonald's which sold -- even though they had strong same store sales.
Look at Coca-Cola a great company both domestically internationally.
Look at bay and Amazon look at an apple look at a Google these are the companies that I've been buying from my clients and I think the -- viewers should be doing the same thing.
Don't worry about the near terms topic to have a longer than three to bide your time horizon.
Put a little bit of money into the market not all your boat let the market there would -- I wouldn't do it if Obama is back to -- little about cost an average love it that's an eleven it was them in in my best Jimmy Stewart oppression.
There are we are Barack Bob Bob -- there's a lot.
But that okay there you're very welcome I think little -- equities do better but they -- that was great information.
I'll I wasn't here and it and --
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