You're watching...
Wells Fargo Chief Economist John Silvia on Greece’s impact on U.S. markets and the outlook for the U.S. economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
I -- now tonight's market master from Charlotte, North Carolina John Silvia chief economist for Wells Fargo John good to have you here the Greeks are -- -- again.
Why are these why are the Greeks playing such Havoc with our markets where a big deal they're not -- what's happening.
Well because a lot of a great debt.
Is owned by European banks particularly the French and the German banks.
And those banks have a lot of -- financial relationships.
With both companies and financial relationships with.
Banks in the United States so when you have a global financial system all this is -- together and that's why the impact.
-- so significant so.
Deal -- is out of the question -- we're left in this country -- -- housing prices as I just talked with Richard Smith about.
Of that can't seem to garner the attention of the administration despite it's -- -- About interest in creating jobs.
It is something that seems to allude.
Market attention in times like these.
Our job creation can't proceed without a resolution of the housing -- Why in the world are we not watching more focused on the issues that are so determinant.
Better -- far greater proximity.
To you and me and our fellow citizens.
Interesting question as you probably -- aware and I think some -- Arab viewers are aware.
The unemployment rate among construction workers is the highest of any category.
-- the BLS survey.
And a lot of these construction workers.
I'd linked to the housing market and it's weakness.
But for a lot of them they don't have the skills to go into.
Professional business services for example so not only do you have high unemployment but it's also structural unemployment.
And it's focused and a lot of states and and I was laughing a year earlier comments about Harry Reid.
Look at the a little fire rate in Nevada I mean it is one of the highest auto supplier right behind nation.
And yet you know are we -- war about.
Construction workers in the private sector -- they don't -- about entertainment or leisure -- -- -- Las Vegas it seems kind of odd when you when you think about.
Nevada has the highest on -- right.
You know there's a lot odd about what is happening in Washington DC are -- -- As we look at these markets that -- just -- For a matter of days it appears there's some stability.
It looked as though that there are volatility is receiving at least at the margin and then.
Today we see the other written you know the re staging of the same particular drama where are we headed here.
-- -- -- -- -- -- Health while the Beige Book released by the Fed today.
-- that the Fed is looking -- modest economic well but there -- a number of comments.
On the downside.
And -- a number of people commented that.
The economy could even be weaker while.
A weaker economy means or a corporate earnings going forward -- -- -- momentum of the economy is not as strong as maybe the Fed had expected to a three months ago.
Lower -- -- lower stock.
Prices -- start -- -- our prices but can I interject here why should -- take the outlook of the Beige Book because these guys haven't had it right yet.
And one has the sense that they have no clue frankly about the direction of the macro economy.
Is that -- overly cynical or do I have an empirical basis for my judge.
And I think it's fair to say that the Federal Reserve.
On an average.
When you look at the FOMC the Federal Open Market Committee.
Projections.
Has consistently -- forecasted.
They.
Now the key is -- where they go -- where's their bias and the bias continues to be in the downside.
And that suggest I think in the marketplace that the bias on the economy continues to be weaker well certainly not trend growth at all.
Somebody needs to stand up there at the FOMC and say come on guys let's get real and get this country move we've got to find some with.
And you know it's pretty sad when I'm looking for leverage but that's the bad until you thank you prepared rose we appreciate SF cheaper -- Pamela wells.
