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Former AIG CEO Hank Greenberg on the state of the U.S. economy and why the U.S. should negotiate a free-trade agreement with China.
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We made a decision over the weekend that.
While this presidential race for us is over for me.
And we will suspend our campaign -- today.
Is this an isn't it Romney was waiting for her road but is this sell off really big issue that will -- friend.
There because it video is about the economy.
Republicans say advantage meant to former head DC EO Hank Greenberg Hank what do you make of this -- been it's your Mitt Romney.
It helps said the key opponent.
Out of the race.
But it also -- his argument that that is Mitt Romney's argument look the economy the markets are still dice when.
That's true I think Romney will benefit from the and he -- It's not only.
The economy here.
You -- Europe.
Major problem.
And so I think these benefits from me he's got to go to business background.
On the economy needs to create more jobs.
It's all there.
You but yet we've just -- -- you know hundred.
Different folks and different strokes for all of them say well you know there's just a blip in what has been -- a nice rise from the -- in the markets certainly over the last six months.
Certainly this year this isn't the realities five days so all those weeks before and buddies.
Naught I think that -- -- Europe before it was Greece now I -- Spain.
And Italy seated him dearly and and -- I think Spain is barely hanging -- and enough you can't hear of Spain doesn't comment what's your fear is staying doesn't.
They does if Spain doesn't.
You know Germany -- continue support.
The whole European community and southern part of the community.
And so what is what -- -- -- -- pullout.
And now and then what.
So that then that's a club known to belong to that kind of your son to just -- to China well I think what really unnerved this market early on.
With signs that China has -- company you know inflation.
Is still an issue maybe not as much as was before.
Only -- China can -- talk about 8% growth to be disappointed.
Would divide that number or not.
But things are slowing down well I'm just back from China.
I can -- back and we.
There's a lot of change going on and -- beyond.
The economy yes -- slow down somewhat.
But not markedly and by the way we would envy these slowed -- figures -- -- big percentage.
They'll be -- that that will be less attention to the state owned industry he has so we would have been sucking up all the credit out of the banks.
And leaving very little for the a midsize companies more medium size companies.
And as a result of that is no growth in that sector.
They're gonna change that and small medium size enterprises.
Who did have access to capital that are going into the secondary market and paying.
Fifty casinos and China's imploding story now I don't know I think China and the US nasty relations look.
I've been advocating and -- the Chinese.
Senior leadership about this.
That we wanted to negotiate a free trade agreement -- our countries.
Now it won't be easy and it won't be quick.
Took a seven years to negotiate one with Korea.
This may take a decade to do but during the course of that.
We'll solve many problems okay.
It's a lot better than a trade war.
Between -- country.
And that's what you fear announced developing world when I'm when I fear is that.
You know with throwing bricks -- each other on trade and then it doesn't have to be really are -- as it's a one way street China gets all the benefits we don't.
We've -- China what is today by a lot of aircraft well now let's work on and I don't think about it I don't think that -- correct.
China would like to invest more in the United States including infrastructure.
We make it very difficult you don't like Donald Trump's and some of these Republican fears -- Hey this is we gotta stop this one way relationship know what are we gonna do.
Not -- with China.
Centralized economy in -- world always so afraid -- -- not investing in debt that we've we tiptoe with him.
We want them to invest in the country here we need infrastructure.
We are spreading their wealth and -- They're they're less inclined it is.
Who is the Chinese Chinese would very weren't very much like to invest here in many things they have many -- -- stuff that -- -- the stuff.
-- because -- -- it's kind of -- I was in Chinatown I -- these -- just that the listen.
There's a lot of Chinese investment coming into -- days.
There's a and what an amazing what point it's on knowledge not believe me they made heavy buying treasury bonds because they made and had -- -- Trade surplus in recent months that they had before.
But if it.
And is slightly tighter fiction.
Wouldn't be obvious given the fact that our debt keeps -- -- they're not gonna be able to keep pace with that.
They're not gonna keep buying into the settlement were rocking out on the I don't wanna buy debt they wanna invest -- OK so -- let's say Qatar Kuwait from debt.
And -- let's -- condos -- this.
Started scripted it's going up concept -- -- have to residents are Chinese.
What else.
Well them anything they want -- invest -- industries and businesses one of the largest Chinese manufacturer of auto clutch has buoyed up.
Bankrupt industrial companies read -- here renovated them.
And hired back people and a manufacturing ought to plod through US companies auto companies.
So they create jobs as well.
Mean I don't -- any wrong with that.
You're very argumentative mood tonight.
-- Hank Greenberg it's always a pleasant good.
