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Get to this market rally that is underway today apparently.
Investors with some level of optimism that the Europeans.
We're gonna get their act together this weekend concept come up with some sort of an answer to their debt crisis were up more than 200 points.
On the -- but after a week of protests like we saw in Greece is some of that optimism misplaced.
But -- Robert Stephen Kaplan is a former Goldman Sachs vice chairman and author of the book.
What to ask the person in the -- Rob thank you very much for coming back on the issue million you got some of these but I guess -- -- French Germans everybody looking in the mirror and try to come up what an answer to this.
Crisis that we've all been going through for quite some time.
We don't think they will this weekend before the market seems optimistic that they might but sometime next to next week what do you think.
I think they'll eventually come to an agreement I'm not surprised that it's -- -- that there's a delay.
The fact that you're asking Germany and France.
To it affects step up for the entire region and that's really a difficult thing to do.
For a whole host of good reasons.
All right so it is your right and and Germans have been holding out.
What will the agreement the rescue the bail out whatever it ends up being called.
Look like is it is similar situation in some ways what we had to deal with the 2008 here -- dealing with Lehman Brothers and everything else or.
Is quite different what will -- end up looking.
In some ways it's a worse situation -- we had to deal with because.
You have not only banks that are struggling but you've got the sovereigns.
That have widened out so they're trying to do two things they're trying to stabilize the banks.
And they're trying to stand behind the sovereign debt is directly of the entire regions -- this a much bigger there's a very big problem and so what what look like.
You'll see for Greece will be bigger private market haircuts that have been mentioned the obvious that which -- been rumored.
It's hard to what the role of the ECB will be my guess is the -- be it won't be as biggest to trillion that'll be bigger and the most important part struck me.
Direct and -- Angela Merkel and have political problems and the big worry in France is that whatever they agree to will cause them to get downgrade.
Right and that's been the threat from the -- set -- firms that you know the worst case it -- already France got downgraded.
I think would be more psychological blow then destroy the deal.
But I think France doesn't wanna go through that psychological -- fair enough -- so we're going to be watching Europe another kind of a but nervous weekend may be like the ones that we had here in -- let's talk a little bit about what what's happening here in the United States I mentioned.
At the -- -- the show the protesters on Wall Street we've been covering it throughout the down there a few times in the protesting and and you know assess that situation that you think that what they're protesting is actually much more -- anger at Wall Street to mean much broader tell us why.
-- I think it's I think it's concern about leadership of the country.
I think that the fact is the middle class in this -- been eroding for over ten years.
And -- the system isn't quite working for everyone.
And the problem is what balkanization in DC.
I think people are losing hope that Washington will do what needs to be done well actually these protests are a wake up call in Washington.
When all of us as leaders that we've got -- and -- -- the look.
Treat with the way the Wall Street does their business we've conversation this week about getting good Glass-Steagall banking that we have and maybe we should have gone further than the -- -- there -- any of those legitimate conversation do you think.
Well there are legitimate conversations but here's the tough part.
And you could reform Wall Street Wall Street all you want it won't deal with.
Erosion of the middle class the United States wage inequality wealth inequality in this country and the fact that fifty million people.
For various reasons don't have health insurance.
I think you need you.
So if Wall Street with -- fixing Wall Street would fix this that be great right I wish it were true it just isn't.
And so we need much broader reform across this country we -- entitlement reform we -- tax reform.
We need a whole series that things.
That backed government passed the do.
And it's been hard for them to do is to makes it a conversation worth having in the point twelve -- shall see the rob thank you Robert Stephen Kaplan joining us.
I -- today talk about all these.
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