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FBN’s Lou Dobbs on the impact of the Greek debt crisis on the European and U.S. economies despite the country’s small size.
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Now we all ought to be used to it by now for some months now our stock market has been held hostage it seems by Europe.
And most frequently a little place called Greece.
Today stocks lost most -- had been modest gains at least.
Following reports that former Greek Prime Minister Lucas -- -- most.
Said preparations for Greece's exit from the Euro zone are being considered.
And investors in Italy -- and bought -- but I must be a devastating development.
In a race what had been as -- say at least modest gains other 27.
Nations of the European Union.
27.
Nations.
In the EU.
And and seventeen of them.
Seventeen of them.
-- have adopted.
The Euro.
Now that tell you there's a little problem to begin -- -- moved to the -- only seventeen of them are among those who've opted -- countries like Denmark and Poland and the Czech Republic.
And the united kingdom of course which is one of the biggest economies in the European Union.
By comparison Greece is a country.
Greece is -- country.
That is well awesome in its size if it's if it's potential.
It's a country of eleven million people eleven million votes.
In Greece that's less than 2%.
Less than 2%.
The European Union's seventeen and a half trillion dollar GDP.
Seventeen or we'll put it over here.
In the European Union seventeen and a half.
Trillion.
That euros.
-- converted to dollars.
-- that's the size of their GDP.
And Greece.
300.
And mobility.
It's such a small -- -- through so much influence and so much trouble.
Recent practice right now in well not only in recession.
It's in its fifth.
Year -- Of recession.
You can understand when you see those pictures of folks and the streets.
That maybe they just stop had a belly full of something called austerity that's its austerity.
-- there to the International Monetary Fund its more deprivation.
If you happen to be agree.
And if your country's been living beyond its means before it even adopted the Euro back in 2000 want.
In fact public sector wages and Greece rose these -- public sector jobs 50%.
50%.
Increase.
In a public.
Jobs -- between nineteen -- nine.
And 2000.
Some -- I mean that's even faster than the other crazed countries in the European Union were having so much trouble.
They went on huge debt funded spending sprees paying for high profile expense or projection remember the 2004.
Athens Olympics very impressive but very expensive.
And that combined with -- host of other programs.
A debt that amounts to 165%.
165%.
Of its GDP.
That to kind of put this into some sort of well.
Kind of a prospective in some -- There are open discussions right now by Greece that potentially.
Would allow them to leave the Euro -- but the United States should we really be that concerned the Greek economy is -- said.
It is relatively modest it's about the size of Philadelphia.
I've Philadelphia.
Decided to have a problem.
Think about what the impact would be here it be manageable -- And by the way we know American banks have eliminated.
-- thirds of their investment and exposure in Greece over the past two years two thirds their exposure.
Down to just about six billion dollars.
Six billion dollars.
Six.
Billion.
Box.
As of the end of 2000.
The Fed Chairman Ben Bernanke says repeatedly Greece would have little direct effect on our financial system.
So what is the deal on Wall Street.
It comes down to this.
Not everyone is is confident.
-- of the European exposure of course and -- in just one.
One expression I think we can show you why.
Folks get a little anxious one hand from the world's wealth.
One half of it.
Resides in Europe.
And the US.
And it comprises one hand with the world's -- That's why people get nervous but the fact is we've got some shorts.
At work in these markets right now that are playing this for all they've got.
And we've got a bunch of suckers letting them get away.
Don't be one coming up in the.
