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Wells Fargo Chief Economist John Silvia on economic challenges in Europe and its impact on the U.S.
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Archer chief economist of Wells Fargo economics jobs Sylvia.
Also the author of the book dynamic economic decision making strategies for and a financial risk capital markets.
And monetary policy all of which come -- play here tonight John good to have you with.
Good to have you back I have to say I love the fact that the shorts got their tails kicked today early on the morning -- night is they've all looked at what was happening in Europe -- decided that has to mean.
US markets are gonna just goes south.
-- -- While I think when -- looked at the data and look that they philosophy a little more closely.
I think -- realise that actually less fiscal restraint in Europe.
At least in -- -- run means better economic growth and more reliable markets over there so therefore why there wasn't this.
What the world's coming to an end politically it was more like wow looks like sustained economic growth in Europe.
And this what we're watching in -- with high unemployment.
They have also.
Interestingly enough.
-- in some in most instances higher debt to GDP.
Lower rather -- higher GDP.
And debt ratios than we do.
In this country now.
-- and we -- watching the international monetary from Christine Lagarde was prancing around Washington in New York.
I just weeks ago say we've got to have more money you've got up all the IMF program.
Is this the beginning of IMF being sort of relegated to its proper position which is somewhere in the rearview mirror.
Yeah I think the difficulty for the I am map as they have to draw funds from a lot of countries that are not new era.
And that actually doing quite well especially some emerging market countries like China members -- -- the United States.
To solve a European problem.
Adding a lot of countries view this this transfer of funds as -- well you know where's the progress in terms -- reform.
I think also you know we see France which is probably doing okay.
But is gonna do some adjustments as opposed to Greece which is.
Doesn't seem to be making any progress whatsoever.
And I love the fact that other people are currently you know they look upon -- at least talk about Greece.
And France or Germany is analogous economies in countries.
Where it would that they're nothing of the sort.
If -- other side and you talk about you know.
I mean the United Nations and the International Monetary Fund in particular.
They now they want attacks on the world so that financial transaction so they can.
Actually re distribute well far superior manner than say President Obama ever could just in this country.
Yet a whole debate on financial transaction taxes are really critical because as you know.
Breton.
The UK.
Is not pot of this general agreement in terms of the Euro.
And sell yes it's great for.
You know the European community to -- -- financial tax but it definitely is gonna hurt US US investor -- the average US consumer the average US investor.
We'll pay a higher fee to transact.
And -- of us still.
In Europe.
Well -- you.
One hopes that at some point.
Common sense judgment and a sense of national sovereignty -- overwhelming that the fools that are running.
That proposition that us John let me ask you this it appears certain to some and I I have to say I happen to agree that we're seeing a in the United States capital markets in particular.
A lot I think especially the leaking on the financial side.
But also I I I think -- economics because one -- US cooperation that we know some of big technology companies are looking to Asia.
Further opportunities a lot of consumer products.
Everything from you know basic food fast road.
A lot of clothing more moving into Asia so there is more -- -- de linking I know that.
Most of our economic history is to study of western civilization and opposed -- -- to rebuilding of Europe.
But nowadays -- looking more more types.
Asia and even Latin America.
John thanks -- are you sure you're confident are -- are lacking some confidence and optimism about the markets over the next few weeks for months.
Well I think it's them one very much -- remember that a lot of US operations mark parent.
A significant percentage of their profits abroad not just in the US so I am confident.
-- -- -- -- -- moving forward are right always -- always good to talk review.
Always confident.
I'm always optimistic -- -- them like we thank you very much jobs over the.
