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The about Bob doll said Bob dollars -- as it if you wanna know how stocks do hear you might wanna be looking at -- in the Middle East and he has for some time.
Now there's no trouble there that could be any huge rally here his firm manages more than a trillion -- I knew this guy when I think you -- like just three bucks an outlook for big.
The BlackRock chief -- strategist with me now but you know I do -- seems to think that that that Europe has stabilized or at least since through its worst.
Do you agree with that.
I don't deal but it we're not out of the woods looked at the big changes the ECB went from raising rates to lower rate lowering lowering rates and expanding their balance sheet.
That's a huge change I think -- buys a bunch of time and that's when we began to take -- Europe off the front page.
You know go up -- you drove.
This region many times as to why and the one -- I get a sense of is that.
There's still a lot of bitter average citizens in places like Greece and Portugal and Ireland and a lot of these beleaguered economies.
Who might accepted face that -- -- justice that it -- up to make but not happily so I imagine an environment like that they don't shop.
Bob that they don't keep their respective countries GDP is going so let's say.
The day today they acknowledge changed is that to be made the accompanying stabilization.
In their economies is never met so so it it comes back to bite him anyway -- -- -- -- I agree with you -- you know we're not through these structural issues for example.
The fact that Italy or Greece the -- you mentioned are not competitive vs the rest the world where Germany is for an example.
That structural differential we've not yet dealt with all we're doing is -- putting a safety net.
Under the financial system through the ECB.
And that buys some time we still have these things to work -- -- it took years -- -- to get into this mess it will take years for them to get out.
All right so by the European Central Bank could step back and look at -- had been remiss -- at least acknowledged as an election or not in this country this here.
And that the noise of that is influenced saying -- but certainly voter sentiment here but I wonder abroad and whether -- Have any particular horse in this race that they think the US.
Will ever get serious about getting its finances in order to matter who wins and a number of we -- -- Well I think guy having talked even some Europeans -- earlier today.
They don't know much about mr.
Romney and on the US lecture notes some.
But they will know more assuming he's the nominee.
And it'll be months before that's played out I think -- yet.
The question marks that -- it.
Foreigners have about the US's executives that what you say will we ever get serious about our deficit debt and deficit problem let's hope we do.
If we don't eventually the degrees of freedom we have will slowly put a noose around our -- we have some time but we can't squander it.
Well you know this is where get a little word -- and I see the reaction to Paul Ryan's -- suits of rain in a lot of entitlement programs.
And certainly people can quite rightfully quibble over the details of that.
But sight unseen -- -- very few Republicans coming up to support what he's doing to say nothing of democratic attack ads as a result.
And so if I'm looking at that and then they're trying to get a gauge of how serious congress' about getting its books in order.
And the reception to Paul Ryan's getting for trying to do that.
I'm not encouraged him -- I think you're actually right I don't think we're gonna get a lot of believable serious rhetoric prior to the election.
We know you and I and everybody is listening I suspect that.
If a politician talks about being serious about this issue and they do not mention the entitlement programs.
Of Social Security Medicare and Medicaid they're lying that's the only place the significant money exists.
We can get Nickels and dimes else where but that's where the dollars we have to go there.
-- with the threat of the fiscal -- we hit in this country -- Jan one of next year.
With a mandate from the election that will have post November and the threat.
A further debt rating cut slits -- thirteen we do something about it.
Let me tell you have a funny way it's doing in the Wall Street -- being concerned about it is for the time being the -- Downdraft today notwithstanding.
It's had a -- incredible run -- -- an incredible run technology stocks -- -- incredible run a lot of the manufacturing it's isn't that incredible run.
So it's climbing one heck of a wall -- The other the question is in part have we come too far too fast I like to look at it this way did we start to low.
That is to say six months ago the worry about a US double dip recession you're falling apart China having a hard landing.
It looks like we're gonna make it through without any of those things coming to pass.
And as a result that the reduction in fear the reduction in the risk premium the crisis premium however you wanna look at it.
Has allowed risk assets led by equities to move higher.
-- we are still any year where stocks are not expensive where the fundamentals are acceptable and suggesting you're still bullish -- bullish but gas -- you're conservative.
Most it most investors are still underweight equities that's correct and and -- temporary -- are longer term.
Only up half of what it was that is oil prices year ago at this time into the Arab Spring in that didn't cause a recession.
We have a little but more -- got to keep right on -- though the differences that gas prices are stubbornly going along for every tech movement.
Yes they are and of course that's affected the presidential approval rating in the defense Bob always a pleasure thank you -- banking deal but -- we'll get an --