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Fmr. NYSE CEO on the Economic Outlook

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    Former NYSE CEO Dick Grasso on the outlook for the economy and markets.

  • Duration 6:44
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Targets as well joining me now for more on these markets this economy and and the -- the nation's future.

Former chairman and CEO of the New York Stock Exchange Dick Grasso to great to have you here Lou always think to do with -- I'd love the the attitude that's abroad I think that much of the business media.

That if we have two days of sell -- we have five consecutive declines in my goodness we're gonna have to look to Europe we've got to find -- a single source explanation for what's happening in these markets we're doing pretty well at least in terms of indexes are.

Well if you look at the index it's basically doubled off the march 09 bottom it's up 30% since October of eleven.

I think the economy is a lot stronger than people want to recognize.

But we've got major problems -- so the market.

So the market is a great forward indicator current and when it's Saint -- now it's -- thousand days since we've had a budget in this country.

It doesn't appear there's going to be any substantive.

Good public policy between now and the election to address.

The critical issue of the debt we've rolled up the deficit we're incurring and the the worst unemployment since the.

Great Depression.

-- and and taking a look at -- economy and in a little closer scale.

The fact is jobless.

The jobless numbers are horrific as you say we're talking about 23 to 25 depending on how people calculated.

2325.

Million people unemployed underemployed or given up being employed.

That's not necessarily reflect an eight point 2% unemployment rate.

And we start looking at -- jobless for so they're still under 400000 which is important.

A book where we were watching the creation of 200000.

Jobs a month suddenly we've got to pull back what is what is that pretend.

Well you hit on a really critical issue -- underemployed.

And those who have given up.

And when you look at that as a barometer of the eight point 2% as -- bogus number I mean we have real problems in terms.

Of job creation in this country.

And the policies of the -- both sides of the -- which many would say are no policies at all are really contributing to this downward spiral.

We when you listen to governor Romney talk about the economy and and and the future.

One of the one -- two.

Best things you're hearing from him about how to solve a a jobless recovery how to.

To solve the issue of how to restore prosperity.

Or are you hearing out of -- well.

I am hearing it and in what I really like about the governor he has a track record.

Of turning bad economic situations into good ones.

Whether that was in his private sector role -- paying.

Whether it was in Massachusetts where you know things that expression go.

Does past performance.

How much has got something to do with the stock market but now.

If you the other segment on a bit a bit ago about change okay.

From three years ago and it in all the nice C.

Is that suddenly I've contributed a dollar.

And I've gotten sixty cents back anyhow that's a change that the American people are talking about and they're not happy you know like to bring it back to the gipper.

You know when we go to the voting booths this November.

There's one fundamental question on the minds of all Americans are we better off today than we were four years ago and clearly the answer is no.

But let me let me turn to them into the New -- unchanged through all of area exchanges -- markets.

We're watching terribly low volume.

The retail traders.

It's gone what's -- going to take.

To bring back the individual investors to this.

Market wire is volume so low.

Beyond the absence of the individual investor.

Well 22 things to recognize -- There was a public.

Rule passed by the SEC a number of years ago.

Which permitted markets to basically fragment in this country.

So I wouldn't necessarily look at just the volume on the New York Stock Exchange and on the NASDAQ because.

I think there -- only experiencing 35%.

Of the total volume that's being.

Transacted.

You've got dark pools you've got alternative platforms.

I think the then we've got to -- your relationships.

Among.

When your -- of dark pools.

Among various you know firms brokerages.

And the exchanges themselves and there seems to be precious little white being applied to that.

Who are your thoughts.

It's well the structure -- market in this country has changed dramatically and not for the better.

And if you want evidence of that just look back to may sixth of 2010.

When a stock like -- censure.

Trading at 44 dollars can drop in less than thirty minutes to a -- And then recover back to 44 dollars to many.

Places where the same instrument are trading without sunshine.

When you were leaving the New York exchange and those who proceeded you.

There was a sense of that commitment to the integrity and the security of markets because there was an understanding.

That the security -- markets where is -- one of the premium.

Reasons.

That these capital markets are attractive to the world do you think there's still that same respect and regard.

Everything we -- -- was measured against one simple benchmark.

Is this rule -- this technology is this trading apparatus.

Going to be good for the least sophisticated user in the market to so called.

MIA and many in tennis shoes so Perry who hasn't a clue.

How stocks trade.

If you do whatever you're going to do in terms of product innovation technology or rules.

You for that person everyone benefits I think the SEC has tried to do that I think they're continuing to try to do it.

But sunshine is the answer bring all of the volume there in big board securities into the open.

I was like to talk about dark pools because.

I'm one of those folks like you who believes that the greatest disinfectant -- -- some -- -- dark pools with my payment they're not for a cross I'll just -- seems to be going in the wrong direction.

-- -- year old is going in the right direction good to have you here illustrate the very.

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