You're watching...
The Heritage Foundation’s Bill Beach on Greece’s potential departure from the EU and how it will impact the 2012 election.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- -- -- A headline in the Wall Street Journal got it right via Europe plans -- Greece exits.
Could this really be about to happen because if it was.
-- the alarm bells would be -- in the White House it's the last thing the president wants is a crisis in Europe that ripples over -- and host our economy and his reelection chances.
Here is -- -- -- from The Heritage Foundation he's in DC.
Bill I'm tired -- always told -- get down to what they get down to maybe this and maybe back I want the conclusive.
Speech from you all -- out.
They are out it is in the works you can you can definitely see this happening -- right in front of us now.
And the main question I think that the EU governing body if you will is trying to figure out of course that begins in Berlin.
Is how much of an effect will this have on investor confidence in Spain Portugal then Italy and then and Ireland because.
That's the key you.
Brick that has is is basically in front of everybody that -- gonna stumble over this are we gonna get over and the reason why that's important mr.
-- Is that Europe is in recession and the question is how much deeper will it go -- That's the connection between what would otherwise be just sort of a trivial economic event of Greece leaving the economic union.
The European Union and this whole business of how big will this mess B for the rest of the world.
Could we say the President Obama lost the negotiations.
With Angela Merkel of Germany.
Because I think he twisted some -- that say come on you've got to get a plan here you gotta stop the Greeks from crashing -- police spend some money.
-- like the -- and not gonna spend that money so can I conclude the President Obama lost.
Well a lot of us.
Wondered why he was even trying that argument in the first place because.
Nearly everything that was proposed to keep Greece in the European Union was rejected.
Even before the elections and elections came.
You know after all Greece is a democracy and they have -- the right to self determination.
That democracy vote did very clearly against that particular.
Set of austerity measures whether that's a right move the wrong -- -- leave that up to the Greeks and then the president comes in basically saying.
Let's do the same thing that got Europe and the trouble in the first place.
-- -- it's a real problem for him and four and Angola Merkel right now but there's one thing that's not in the news I think the main problem for the world economy is the connection between Europe and Asia.
And that will be the transmission mechanism back to the United States China is in a precarious position right now.
And they are very dependent on European demand for their exports I'm very worried about that part of the world and the way that -- Back into the United States -- -- bad to say look the -- set out in comes the drop now.
It may or may not spread to Spain and Portugal but we do -- we'll spread it would you say will spread that's interesting.
That means a financial I don't -- If that -- no financial crisis that means real pressure on our stock market and our economy you prepared to say that.
Well no I I think that that is clearly the trend and the reason why it will spread to the weaker economies along the southern rim and -- Ireland though I would hold them out for the moment.
Is that when Greece leaves that is pretty much definitive statement.
That Europe -- leadership is unable to hold that debt package together -- so it's primarily through first investor confidence.
In the you have the economic futures of Italy Spain and Portugal.
And then it's on the confidence in the bank stocks particularly Credit Agricole in some of the French banks.
That have invested so heavily in the southern -- Build -- a -- you said it how you see it and we like that they'll -- Cummins is again okay thanks also appreciate it.
