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Former Obama Chief Economic Advisor Austan Goolsbee on Europe’s economic crisis.
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-- vigilance there right now of course the former Obama economic advisor in -- tonight but thought of this guy -- -- the United States and ready US banks.
I don't know what the diplomatic responses on no diplomat but I I.
I would have as -- -- words what what what about you.
Yeah you know I -- I'm not as polite as as the average person probably I think -- at least deserve a little rolling of the guys I mean it was ridiculous.
This is not -- at least in 2008.
I don't think was accurate but you could see that the Europeans said.
While our problems are coming from sub prime mortgage.
Lending and sub prime bonds that the problems begin in the US in this case of banks are in trouble because they're holding the sovereign debt of European countries there's -- Always a lot of -- I -- Iran's programme of the US -- all -- lending in the sub prime arena do you want a site that.
But I guess -- -- -- -- -- that you would have been accurate let's say that in 2008 though they did say put this -- already battle against and that's their point of view when the president is trying to rise above this and try to say we're on top and -- get its act together but I'm hearing that hours earlier.
And that I'm hearing this plan where at least in Greece they might delay some of the actions that have been called upon.
Germany might delay any punishment for not enacting those changes as soon as they were called to work.
Then I do see Europe kicking the proverbial can down the road and I do see us does dodging a bullet that's all just briefly not not forever.
Yeah look there's there's a danger of -- -- it is not a danger -- probably be -- and one of the most publicly pessimistic about.
Europe's prospects to to sort things out of anyone.
But I wouldn't overreact just from what for from what that is that -- European Commission says they're not really.
Front -- folks dealing with this I think in the case of Greece.
That they had the vote that did not go the wrong way.
You know as a bit like not getting sacked.
On third and twelve that's not really aware that there really weren't doing a victory dance that just did.
He had an allergy -- as well as the race goes it causes of races did it bother you what's concern you that the very same weekend.
France moved even more sharply to the left I know you're like the -- I'm not an open you're not socialists last Armitage.
And and and this the government now is move sharply.
More socialist so forget about trying to rein things ended his deep in this -- on nine.
Well you know we'll have to see how these play out I may have thought.
That just trying to force austerity was not going to work as a long term solution for Europe I think the root of the problem is.
They got a monetary union with a very different economies and it's stuck together.
And we know how do you hold together very different economies and Internet edition of -- pretty awful lot of married yet what are what are -- It is in the definition of austerity different.
I mean and it austerity to me means -- -- -- -- packing programs and after taking away people's pensions to -- Axel austerity if you wanna call that going on here.
It's quite detained by US comparison right.
So far.
I I think.
That that the broader issue is if these economies are shrinking 234%.
A year away most of Southern Europe is.
I believe because their exchange rates are locked in at the wrong rates.
It's going to be extremely hard for them to balance their budgets virtually impossible that you can't out austerity that are -- real quick ticket inspector -- so.
And the European Commission president separated -- yes or no Austin goes with.
I was looking for Kato committed myself about it acts of -- up.
All right to shed seasick also employs good -- you thank you very much Austin goes -- the president and over time of economic and.
