Also in this playlist...
This transcript is automatically generated
C -- -- heavily indebted nation Portugal and economic turmoil after the struggling country's parliament rejects an austerity plan.
A -- that the prime minister says we'll put the nation in financial jeopardy.
Well Peter Marie C warns of Portugal's economy collapses it's Katy bar the door because all of Europe could -- -- and America.
Will be firmly in the financial cross hairs he joins us now while there -- other Bulls and Bears Danny Hughes and stop marred by Peter first -- is breaking news.
This means essentially that that the European monetary union is gonna say the heck -- you -- where you're on your own what happens if in fact torture.
-- left adrift and its own.
Well let's -- bail out countries those with the fund can force Portugal to take an austerity program they'll just have to let it go.
It's bonds will fail it's government will fail as a daughter visiting -- Okay it's a very small country and the rest of Europe if it did the right things could isolate Portugal and hold the rest of the you're together.
I don't think they can do that they've largely have a banking crisis over -- excluding -- and then not doing what they need to do to fix the banking crisis which underlies Spain and Ireland and other places simply I think the Euro is gonna come apart it's Katy bar the door.
A contagion could follow.
You know I've Scott Martin I mean in the -- there right in the AAA rating of Germany for a long time now.
A ride in the back of that and by the way it's springtime aren't we do for your debt crisis I'm being facetious.
But to -- -- what do -- -- -- tell where do have this off balance sheet had -- European civilization punt for a forty billion euros is that not enough.
Now probably is and enact in this case and in your -- I think it is spring so -- spring brings AI Euro crisis and your right I mean.
Look I think Peter's got a point I mean you do you isolate Portugal with regards the EU they can't I think pick up some of the other exports.
That Portugal -- because guys Portugal's main business partners are in the EU.
And also in the UK -- look at David you know that's on the big dollar guy here I don't like the Euro for a long time.
This may be finally that thing that -- the Euro down to brings the dollar up well.
Beautiful property in -- you can probably a nice apartment overlooking the -- therefore have -- a 100000 dollar check -- what's been happy you have what's gonna happen here as a result of this I mean is the market now overvalued.
Because they haven't taken that into consideration what might happen in your.
Now I think we have -- and you look the second -- was up today banks took a clobbering him in Portugal.
Based on what we knew this is happening all day long and in fact it kind of tailed out while the marketing market was closing.
I mean you know what bonds actually in in Europe and particularly TV and in quote Portugal have -- The yields have risen dramatically we're looking at another Ireland -- in fact.
Portugal bonds the ten year's rose to seven point 775.
Your eight point 2%.
Which compares to I was a ten year was about 10% today which is an all -- almost since 1999 when the -- began.
And a two year top ten quick so that a big concern and I think banks are feeling it and it's -- -- can isolate Portugal.
Obama says you know Peter received two Danny's point is that banks story I mean but -- -- is on European banks' balance -- switch -- the Central Bank here United States.
Operations with so.
My question -- sir I mean -- is coming they have there's this scary correlation between the S&P in the size of the better reserve's balance sheet.
What what's going on in Europe how does that square with the Central Bank here taking the foot off the pedal and may be doing.
-- actually keep the foot on the -- doing QE3.
-- it may have.
Have to do QE phrase but just we don't like -- -- it's inflationary consequences to compensate what's going off on in Europe but in a way that you and I cannot be thinking about.
Votes are gonna start to worry about our 11% of GDP deficit here.
Especially in the light of the global economy perhaps slowing down -- if the Japan high price of oil and so what you know growth going below 3%.
The bond market may not be willing to accept American paper at that point we have to monetize our debt.
And what is that what that is -- 345627.
Well instead of showing those squiggly line -- -- acts where would guys let's show some of that video of that beautiful real estate import you'll start I want to ask what other kind of we can take advantage of you back and are gonna buy property in Lisbon they'll be a double dip -- I think I.
I'm sure we'd be -- -- but David how about some vineyards they've got some great -- over here I mean look at there's a lot of things.
And here's the other thing David you're gonna see people run out of emerging markets -- because like -- -- initiated.
A lot of people on Portuguese deaths of people -- not only from Portugal not only from Europe but they'll go away from emerging markets to avoid risk here you know -- say something -- any other thing that the hot story in the markets.
Not only South Korea but also China and -- -- and Brazil.
Other verdict emerging markets are tightening so there's going to be like to those markets I think because -- -- a safe havens.
-- that it violates CNET and real dichotomy in those emerging markets where -- -- trying to slow things doubt that's right and everybody just thought he -- up.
Yeah but we're always looking for the opportunity -- anybody -- -- -- -- Scott Martin did his.
Filter by section