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Former White House Economic Advisor Todd Buchholz on the problems with Greece’s debt deal and its impact on the U.S. economy.
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Well Wall Street following the global markets down today after Greece said it will let the people vote on -- plan to rescue the Greek economy.
Dow plunged around 300 points today -- 26076.
Points yesterday.
Not a great start to November especially after October -- so -- The major banks especially Citigroup and JPMorgan Chase were hit hard by the news as well.
The Greeks have spent the last two years rioting and demonstrating against austerity measures we've talked a lot about that.
Now they'll be asked to vote on whether he want more big surprise.
The consequences for the US economy could be staggering.
Joining me out Todd Buchholz former White House economic advisor -- welcome back to you Tellme is the Greek deal is this debt deal unraveling.
-- I think it is unraveling we've got a big fat Greek bankruptcy in front of us.
And why shouldn't it unraveled the idea that people in the street should be paying -- bankers.
Who bought bonds knowingly.
And you know they talk about 20% haircut -- 50% haircut those bonds -- were twenty cents on the dollar and that's what they ought to be sold at an accepted that.
But I mean -- what they go back to the drachma I mean who cares ultimately right cabinet effect that.
Well Greece is a tiny tiny country.
Well I'll tell you one thing Jerry I wish all our Occupy Wall Street neighbors we take a look at Athens and think.
This is what happens when you don't have capitalism when -- of socialism charge of the system.
But look I was I was in Athens this summer for what looked like you know an annual pure gas festival.
-- amid the riots and what you didn't see were tourists.
Tourists were scared to come to Greece.
-- for two reasons first of -- they were frightened secondly because Greece is stuck with the Euro it's a very very expensive place.
-- -- Greece instead of a drop mullah.
Greece could be flooded with tourists generating tourist dollars -- and I finally some kind of economic recovery but I mean what my guess my question is.
Why should we care here in the us.
What we care because unfortunately our banks are still teetering on the edge.
When you see shares of Bank of America -- single digits.
One worries how how much European debt to they -- so it's the unknown it's not recent self preaches is -- you say a very small country.
Up but the question is.
How much Greek debt and European and Italian and Spanish debt is owned by US banks and that's very difficult to decipher.
Well you know without a lot of economic news out lately some pretty positive stuff we see out there that's good news for the U -- Up.
The US is not going into a double dip.
You know Nouriel Roubini and all the -- -- bears.
Who predicted a depression for here on out I think -- being proved wrong the US consumer is still weak.
Still anemic but there is a -- -- CC retail spending a little bit stronger than expected.
Automobiles a little bit stronger than expected.
I'm not telling you pop champagne corks economies you'll get a lousy shape.
But it's not negative GOK.
And that's a relief.
-- quickly gonna have much time Federal Reserve meeting this week.
I couldn't do anything right I mean -- don't have any ammunition -- Well not only that poor Ben Bernanke is trapped he's got.
Folks sun hit left side telling him print more money drive down interest rates further.
You've got people on the other side of him saying what are you doing you irresponsible.
Group.
Move your driving up the price a golden driving down the value of the dollar so he's rather stuck in that makes it very difficult for him to do anything substantial.
Now OK so.
More of nothing coming from the Fed -- you know that's probably goodness really I mean you know about it I don't would've.
What appoint a president Reagan's economic advisors early on said don't just stand there -- do something.
-- sometimes undoing or doing nothing is better than acting and over acting.
-- great to have you on again thanks for coming -- appreciate it.
Good to be with.
