tv Cavuto Coast to Coast FOX Business June 29, 2015 12:00pm-2:01pm EDT
angela merkel telling them to cut a deal can. charles: americans must pay attention to this, immediately and in the future. neil cavuto, take it away. neil: all right, charles, if you could just do a little more here, the member's room is a -- the men's room is a mess. the market is up about 200, problems much closer to home. puerto rico has incurred bills it simply cannot pay. that country's governor, the effect of a president, saying, you know what? the 70 billion due, we can't pay it. so stretch out those payments, forget the payments, and that one's a little closer to home. bottom line here, while it's not this bad in puerto rico, it is this bad in greece. if you want to get your hands on your money, you can't do that. all banks are closed. there's talk about reopening them, but all the european markets have been filling the -- feeling the chill of all of this. dagen's going to spell that out. i can tell you germany just had its worst day in more than four years.
that has been pretty much the rule of thumb throughout much of europe. we're going to get to that in just a second. suffice it to say what's ailing them is leading to big questions about us and whether we're exposed to this or prepared for the next proverbial shoe to drop. first to ashley webster in athens with the very latest on these bank closures and how big a deal that's gotten to be. ashley? >> reporter: well, it is a big deal, neil, no doubt about it. we're outside national bank just south of the parliament building which is over to my left, and we actually found an atm behind me that's working. it has cash in it. not a huge line by any means. we saw big lines yesterday and over the weekend as people pretty much realized there was going to be capital controls, and they were going to have to get their cash out. so the limit per day is 60 euros. that's $of -- $66 at the current exchange rate. and for some, pensioners, don't have a bank card, many of them,
a debit card or a credit card, so they are without any means of getting their pension which, by the way, comes at the end of the month, tomorrow. that is why we're hearing that some banks -- some, some banks -- will open on thursday, neil, in order to allow those pensioners to get their money because they're living, you know, hand to mouth, and they need to pay bills and buy food. so pretty, you know, this is 7 p.m. local time as we take a look, if frank can just swing across here to the square which is just below the parliament building off in the distance. it appears business is normal, but it's not. there's a lot of fear, a lot of concern as you can imagine. also a lot of confusion. they're not quite sure what the government means with the referendum. today we heard the european leaders say, look, if you vote no against austerity measures, you're voting for the drachma, and that frightens, of course, a lot of people because this economy that's already struggling will definitely turn into somewhat of a nightmare. so, neil, the choice for greece is hard and horrible, basically.
and so these capital controls are in place to try and at least keep the financial system afloat and from totally collapsing. so we'll have to see whether greece can get a deal in place. but it remains to be seen. certainly, the atms, these are big issues. can you imagine, 60 euros a day, $66, that's not going to buy you a full day's parking in manhattan. neil: not even close. as ashley pointed out, banks hope to reopen on thursday, who knows with new controls or limited controls. but the bottom line is, this is capital outflow. you don't want must be leaving -- money leaving your country. the last time this happened was two years ago this very month in cyprus. at the time they limited it to about 300 euro. we have had a number of countries try this before, mexico tried it, iceland tried it, we've seen indonesia and malaysia try it. usually it lasts for a few days although in the case of
argentina, it lasted for a couple of months. that was, again, i stress, a very different situation right now. the greeks cannot print their own money unless they return to the drachma, drop the euro and start from scratch. that is, obviously, a lot easier said than done. dagen mcdowell on the global effect this that is had, and i think just a lot of red arrows, bottom line, right, dagen? >> unless you've got a super safe bond like u.s. treasuries, neil. the greek banks shuttered, a country financially frozen out on the brink of default. this small european country has rocked stock markets around the globe. let's start over in asia. other problems there particularly in china, but you had red across the board. the selling, heavy in your european stock markets. england, france and germany, france being hardest hit today. and then, but the dax down 3.5%. the selling picking up steam as the day wore on.
bonds in italy, france -- italy, spain and portugal, heavily indebted countries vulnerable to the greek crisis, falling sharply. we should point out that greece's collapse could be a lot worse for the banking system in europe, but in the last three years your european banks have gotten rid of their greek debt and been better capitalized. so no major worries there. but here in the u.s. you have all three major market gauges in the united states down sharply. the dow off its lows of the session. you've had -- look at your sectors. you're economically-sensitive sectors here in the states were the ones that were hardest hit. oil is down today, was selling -- with selling and crude. where do you see buying? people moving into the safety of u.s. treasuries, moving into gold which is a typical haven as well, neil. not the kind of panic buying you would see during a financial crisis, but that's really the best that you can say. hey, this isn't lehman brothers. neil: so far. just to review, some direct
greek stocks that could be affected by this, the national bank in greece, no surprise, down north of 14%. shipbuilding concern, you always hear us talk about greek shipping magnates, they're down about 7%. sea energy maritime in a similar venue, down about 8%. greek etfs down anywhere from 16-20%. the european stock index itself as a broadly-traded etf down north of 4%. so these are relatively limited but contained losses in some specific issues. again, unique to greece. what is the fallout for us? it comes back to states, municipalities, you can extend it to anyone here in this country who have incurred expenses they can't pay, and there's no one to provide the money to them or for them. that fallout could be fast and severe. bobby jindal, the presidential candidate, on the wires right now saying this could happen to us. gerri willis, gary b. smith,
lizzie mac donald, what do you think? >> for american investors, the hit is not big. $3.7 billion of american money in greece. but to the extent that it hurts european economies and especially their stock and bond markets, $1.2 trillion is the amount of money that americans have invested in those markets through mutual funds and etfs -- neil: which is why the broader european index funds, they were feeling that pinch. >> absolutely right. so there is an impact here. americans will feel it in their 401(k)s, but the greek exposure not so big. neil: not so big. the fear, i guess, lizzie, that others drop and that others feel the same heat. i'm wondering now given the news out of puerto rico, that it's $70 billion in debt, it can't repay. it's going to look for repayment schedule with sympathetic american lenders, there are a host of states that have unfunded liabilities here as well in this country, this could be big. >> it could be big, and we have to tell ourselves watch out. u.s. banks could be exposed to
puerto rico. why? you look at the dodd-frank bill. remember the dodd-frank bill was enacted to klein up after the financial crisis -- to clean up after the financial crisis. the volcker rule said, you know, you banks can continue to trade in rotten fannie mae and freddie mac debt, and you can also continue to trade in your proprietary debt in puerto rico debt. so that's an issue, too, for u.s. banks. we don't know if the hedge funds or market makers, how much they have in puerto rican debt and how much the u.s. banks are exposed to puerto rico. neil: bank-related stocks and how they've been doing, not surprisingly poorly on this day, but the fear seems to be and paul volcker was here just a couple of weeks ago saying those states and their unfunded liabilities, to lizzie's point, that's our ticking time bomb. a lot of states have its own balanced budget thing they have to do every year, but they can do it through a variety of shifty means, and now the shift has hit the fan.
what do you think? >> exactly. i guess, neil, there's always a fear in the market of what we don't know. and i think that's why you're seeing a fairly good selloff. but i kind of, i'm on the flipside of what lizzie's saying. you know, we went through detroit, we went through a couple cities in california, we went through new york city, all financial crises, and yet we've weathered all of them. i guess if you're talking on a massive scale, you know, the entire state of california or, you know, the state of virginia or something like that, but i just don't see us getting there. you know, even detroit as big as it was, what, about one-eighth or one-ninth the size of puerto rico, they defaulted, and everyone kind of moved on. i don't want to be a pollyanna, but right now i'd be a buyer rather than a seller of the market. >> i hear ya, and no small irony that the detroit metro area's gdp is about the size of greece's. listen, we've also been living
in an era where we've had loose monetary policy that has helped governments here in the united states and certainly club fed around the world. they have helped governments basically not -- basically outrun the math on entitlement spending, outrun the math on their garre gargantuan welfare . and, you know, the fact that the federal reserve and federal -- and banks are painted into a corner, what can they do next when now we finally see the serious restructuring taking place because the federal reserve and central banks are out of bullets? neil: gerri, longer term you know there seems to be the feeling these stocks are going to get hit and get hard, greece is all but kicked out of the euro unless something miraculous happens. the feeling seems to be we'll let greece go. the germans aren't budging, the french aren't budging, they hope that greece comes back to its senses and signs on to a deal. i don't think that's going to happen. then the fear is you've got a
portugal, a spain, a france and on and on. >> i think that's the big danger, is other countries are impacted, even leave the euro. but let's just say their markets go to heck in a hand basket, that's a disaster too for american investors because they have so much money in these european markets. look, couldn't we just take a simple lesson here? we have our national debt is at $18 trillion. shouldn't we be looking at this as an example in front of us that we should -- neil: you know what i got concerned about, someone said it can never happen here because we can print our own money. [laughter] that is hardly a salvation. >> we could also wallpaper our walls with our money. but we look at italy, and, gerri, you've been making this point, we don't know where the exposure is to countries like italy with its vaudeville politics. neil: they don't have -- >> guess what? ireland cut taxes. neil: so that's the deal. and, again, i can't stress enough imagine if you tried to
get money out of your bank and it was closed, you couldn't access your atm, that is happening right now in greece. it last time happened in cyprus two years ago. that dragged on a while. they never really got their act together, it was just switching, you know, greek tragedies, if you will. so we are still at this game where it happens, and it's happened in mexico, it has happened in iceland and thailand, in malaysia, in indonesia, in argentina. i could tell you it never ends well or the same. the idea is to control money leaving your country. forget about that. imagine any money even trying to go into that country. ain't happening. more after this.
idea no one's coming to the greeks' rescue, but you can even see it playing out in bond markets around the world. we're seeing a big backup in interest rates across the globe, save the united states. for example, eurozone ten-year yields are rapidly rising. specific countries' debt, in greece be, for example, we've gone from 9% to 15% on ten-year paper overnight. in other words, when a bond price goes down, its yield goes up. part of that is to entice buyers back in, but even at those loan shark rates, it ain't happening. you also heard about the new york stock exchange-up candidates -- the next-up candidates, their yields are up anywhere from 7-20 basis points. what that means is they're now sporting 10-12% comparable yields. in other words, their yields are what junk paper is here in the united states. so that is generally not good news. and keep in mind that was a precursor in argentina when it defaulted on its $95 billion in
debt back in the late '70s. it took almost two decades to overcome that scarlet letter. that was $95 billion in debt that the argentineans said we simply cannot pay. lauren simonetti now on these atm limits and what if they happened here? what if banks were shut down here? >> hi, neil. 60 euros a day, $66 u.s., that's all that greeks can take out of their atms today if they can find an atm that has cash, and, neil, not even half of them do. obviously, this is the sort of situation that makes you run to the food store to stock up on groceries, run to the gas station to fill up the tank, so we asked folks here in new york today what would you do if you couldn't get your $66 out of the bank? take a listen. >> i would keep my cash. i wouldn't put it in the bank. >> not the fact that i couldn't take the money out, that would make me nervous, but the fact that the banking system would be so sort of systemically in trouble that you couldn't do that, that's what would make me
nervous. >> i can't live on 60 euros a day. i'm a new yorker, and look how expensive new york is. >> i guess do my laundry with that minimum amount of cash. >> pretty bad. i wouldn't know what to do. i need to get money right now. i don't think that's right or fair. >> so what do you do? >> riot. [laughter] >> she laughed after she said riot, but that's just an idea of the panic that is setting in in greece. and look at the calendar, it's vacation time. tourism is about a fifth of greece's gdp, it's a huge deal. so we're worried about what would happen if you're going to greece. do you still take that trip? we asked new yorkers that as well. >> probably not, because i wouldn't be sure if i could get back. >> actually, i wouldn't be going to greece. they're all mixed up over there. >> that's a difficult question, because we're headed for greece in about a month. we're not concerned, but we're thinking about it. >> so you're going to keep that
wallet full of euros? >> yes. >> so far. >> yes. >> and that's what the travel agencies are warning. if you're going to greece, take enough money to last the entire trip, neil. it is beautiful there. neil: it is. i was just there, and it's a beautiful country. but, again, you're going to have to have a lot of cash and, by the way, plenty of scalpers there left and right, so they'll take those euros happily, that is if the country's even accepting them. lauren, thank you very much. speaking of greece, the prime minister is not going to make good on a euro payment that was due tomorrow. remember, there were a series of payments that came due can in staggered dates, much like you would pay off part of a mortgage when you had a first loan, a second loan, home equity loan, that sort of thing. well, the greek prime minister has candidated it ain't happening tomorrow -- has indicated it ain't happening tomorrow. he's not going to pay, and that has accelerated selling here because the greeks have
essentially said you don't help us, we're not going to help you. go shove it. all right, so that's where we stand. if you add everything in, by the way, payments tomorrow were going to combine to be $1.73 billion. i believe there were two tranches scheduled in the next two days, so maybe we are including that. the bottom line is the greek situation is going from bad to worse. i mentioned before what's happening closer to home, puerto rico, $70 billion in debt, it's unable to pay. its governor indicating it wants help from the united states to stretch out the payments or even forgive some of them, and this one's pretty, pretty close. gary b. smith with us -- we've got two garys, i got confused there. first to you, why should this worry us? we are benefiting, that is, our treasury markets are, not so much our stocks, because we are enjoying a flight to quality. so maybe that's a sign we weather this because compared to these guys, we look great. what do you think? >> well, first off, i think half the market's been bearish for
the last six to nine months. we've been talking about that a lot. look, the biggest promised two words, leverage and debt. it does not just affect one country, it affects the world, and last i looked we have $18 trillion in debt here, but we're being called the adult in the room. you never know what catalyst is really going to start the fire. this may just be it, and i think you've got to be real careful here. we saw what happened in '08 when there's too much leverage in debt, and we have a lot more now than we had in '08. neil: gary, i know you think we'll be fine, but when i was researching this earlier today, we closed our banks too during the depression, but it's been a number of decades, that we whistle past the graveyard at our peril. you say not. why not? >> well, gary k. brings up some present points -- excellent points, as always. but you've got to remember back in 2008 that financial crisis did affect our financial system, our financial underpinnings. i do agree we have a lot more
debt, but i always boil it down to am i still going to go and gas up my car tomorrow? am i still going to stream "breaking bad" on netflix, am i still going to buy stuff from apple's itunes -- neil, well, "breaking bad" on netflix might be apropos. [laughter] >> touche. until we see like you mentioned in the earlier segment about the people in greece couldn't get the money from the atms, until we see that kind of thing here, that would be fear and panic kind of stuff, i think we just say, oh, that's other people's problems. i've still got to go to work, i've still got to do my things. maybe i am whistling past the graveyard, i think this is more of a buying opportunity. >> you know, i agree with some of that, but just realize we have never, ever been in this situation where a federal reserve has printed so much money, has kept interest rates down at zero for seven years, we have negative interest rates around the globe. we don't know what's on the other side of the door when all's said and done. the other part of the
equationing is asset prices. they have gone farther than they should because of all of this. we're seeing ridiculous prices in whether it be art, real estate, and, of course, the biotechs and the bond market, we do not know what the final outcome's going to be because we've never had this type of easy money before. that's my worry going forward. neil: all right, guys, thank you both. default has happened before, by the way. i mentioned argentina. it did default on its debt. they said, no, we're not going to pay the $95 billion, that is the largest default in global history in terms of sheer dollar terms. you wonder why the pope seems to have an anti-business, anti-banking view. he was a priest and later a bishop and a cardinal in that country as all that was transpiring. hence, his cynicism toward a lot of the players in the financial community. he lived that. he experienced that. and he wrote extensively on that about how the rich and the banking community can take advantage of the little man.
russians have been playing this coyly hingting, hinting they'll come in need be. that would be a concern to rest of europe if greece moves out of nato into russian camp i'm taking leaps here. as you can see this is the prime minister trying to play both sides for a better deal. sort of like a free agent trying to take advantage of the others weakness or paranoia. be that as it may down about 230 points. now, the political fallout of this could be fast and furious we told you about bobby jindal
louisiana governor in the presidential race saying you know that is an important issue we have to pay attention to this sort of stuff but a lot of candidates who were paying attention no this sort of thing. funded liabilities you think about it, john kasich decided to run in ohio, chris christie in new jersey is expected to announce tomorrow, christie of course has address it had but not really solved. we have charlie ghast gasparinot kowk the issue. >> should point out nato should be happy that greece goes to russia. [laughter] >> for russia right there the horse. i think this is an excellent, excellent issue for the republican candidates out there. it is so obvious you can't argue your way around this. where greece is now is the cultural transformation that president obama and democrats to the left pushing u.s. economy towards greater reliance on government bigger programs with and with all of the higher
taxes. that is the greece euro model and the reason why this is going to become an campaign issue it won't end with greece even last minute thing happens in greece where they agree to something then you have italy and then spain and all of these countries -- >> at least 22 u.s. states. even though they have balanced budgetses each year you have a balanced budget but they can do it through all -- >> welfare state greece is exactly what the president wants us to be. places where government controls stuff. where entrepreneurs are taxed and told you're bad so you have to pay more money and people don't innovaten you take the fashion industry out of italy guess what you got, you have mafia and the government really nothing much else. >> you have the pasta makers. >> yeah. >> but only so much olive oil that can go around i have news for that. [laughter] but let me ask you then -- >> where does this lead if part of my question involves is
landers they say you have to raise taxes cut your budget raises taxes part worries me to what extent to chase away. >> disasterrous results imf squeezes them almost to death. >> you would think they would learn it doesn't work. >> greece doesn't have high taxes anymore? italy is nice to their entrepreneurs and businessman these are business companies that tax the hell out of businesses an why businesses don't grow there. how do you grow a country's gdp this is where it gets tricky worse than bank bailout you have to have a cultural change in the country. you have to lower interest rates and bang ngs money. allautomatically made it based n trading because of the trading there. you can't do that overnight in the country. you have to change italy from the italian particularly in the south southern italian to somebody that survives off a
government to start his own business. >> by like -- wish we had more time but i follow lenders for offering, you have to give people an incentive to improve their ways and if it is all all of the time eventually you get what is happening in athens right now. >> agree with you. back to the political question governors have the best case to make -- you know, jeb's to a certain extent but currently walker and kasich. >> you press it right now. the issue that is dominating that they succeed ited and being ahead of the curve we shall see. all right kiping an eye on this and effects for us but there was good news for businesses at least today krnled about the overreach char leaves saying about government. the environmental protection agency got a huge -- a huge slap to the supreme court. i've been waiting to hear the white house press kfns that might be planned but i'm missing
that. but of course you've heard this here that a number of isis sympathizers are all over the united states and homeland security last month said in all 50 states will certainly in new jersey are that is the fear we'll get more detail what is they become available. we got a report from britain to top officials there saying they have made and will announce contingency plans for britains with exposure to greece and tourist who is might be in greece in the middle of all of this. they're not outlining all of them but to a country in western civilization what they do with situations to let their people know they're looking after them, and the better part might be returning home. they're not saying that but that is normally how it ends. all right, separately today we had, you know, the last flurry of supreme court announcements, this one is biggest for the business community concerning environmental protection agency. we have peter barnes on that. peter. >> that is right now court ruling today 5-4 that the rks pa
must consider the costs of regulation when it is trying to regulate green house gas on power plants and other companies as well it cannot decide to get this process started that more regulation is good for the public health. writing for the majority in this case, the justice scalia wrote, quote,-unable to mean that cost is irrelevant to the decision and agency must consider cost including most porntly the cost of compliance before deciding whether regulation is appropriate and necessary. writing for the minority, however, justice kagan focused on doctrine that congress does the big picture stuff and leave it is to the agencies to fill in details she wrote, quote, coast matter and regulation and what congress doesn't know how to take cost into account they have decision to make that judgment.
congress entrusted matters to them not to us. one legal expert told us that the decision today will have ripple effects on agency as likely slowing some regulation and also gives law school ammunition to critics. >> i think in many other instances there will be opportunities for regulated parties or states to sue to son enormously expensive regulations that are unsustainable. >> and a statement the epa says it is reviewing decision but says that it is disappointed. but that this rule was issued three years ago and that most power plants are already on their way to complying. neil. >> i did notice when scalia writes majority opinion it is a tad different in tone. than when it is in minority opinion. [laughter] >> not as angry. all right. >> thank you very much feater barnes. coal stocks are up on this news today why the idea going forwarn
most of the stocks advancing on this news wech a broad bass and that doesn't provide that much more wind up their back but all of the more telling on a day like this. president clinton joining us right now. this might be too late for too many, though, right? we've already seen layoffs, already seen a number of factories shut down so this might be a boom to them but well after the fact too late to help them, right? >> not necessarily neil, 142,000 megawatts of coal fire capacity there's applied for accident extensions in compliance to the rule to give many of them an opportunity to take into account this ruling and make some good decisions for the customer base they serve. >> you know word i read in the minority opinion on this ruling was this idea that it is really up to congress to spell out what the cost would be or --
not to leave the owner on the agency which seems to trigger to me the epa putting the congress in the future to spell out the cost of regulations that the epa is yet to announce. so it is kind of like a twisted victory, isn't it? >> well, i think it is a good sign that congress maybe has to be a little bit more particular if it wants to assure that businesses and households do which is consider cost and benefits. you don't know the value of something until you weigh cost and benefits and what epa did is look at a word that said do -- go forward if it is appropriate but sign that appropriate didn't mean had to consider any cost at all, and when you look at the difference between ten billion dollars each year in cost, and exchange for about 6 million at most in benefits, i mean frankly it is court said that is just irrational unreasonable. >> that doesn't stop epa from making up a number, right?
>> it doesn't, and i think we saw here that some of the numbers they used even the $10 billion in cost are well understated since they list target of how many power plants an close under the rule by a factory of ten. >> thank you very much. this news, obviously, think of all of the majors we have on including robert and energy laid off thousands result of a fear of tighter rules and regulations whether he rehires people hard to say pl well this much is not hard to say we have a major selloff of a global development now. europe in a lot of those markets there including german market it is biggest one day loss at 3.6.. we've seen in the better part of four years similar readings at much of the world. british finance minister saying contingency plans are in place and no one is selling out those plans but this is sort of like authorities in the world saying everybody relax. we know what we're doing.
>> all right we've been showing what has whatted with the stock market you want to know where money is going. right here to our bond market. that's -- tends to be the safe place where a lot of money goes during the time of crisis this is a tenure treasury note a lot of mortgages are to this. 30 year conventional are to this and today is your day, the price has really gone up, but the yield has gone down about 12 basis points that means that this is attractsive for
foreigners gravitating to this. interest rates go down in an environment like this. not surprisingly not that we're the best in the planet but least awful because we have our debt and problem but when push comes to shove in an i could selloff, peemg like to park their money in dollar denominated security so say we get a look at your own. say what you will competing currency of the agent's wand and everyone else we're still leader of the roost when it comes to everything right down to the market is benefiting our bond market is bengting. what is moving and not moving in markets right now. nicole petallides. >> our bonds are always the safe haven here in the state also our currency as well. gold can also be viewed that way too neil we've seen a lot of these fluctuating fire index is up 25% that shows you nervousness when we look at ten
sector, material, technology, technology, energy those are biggs losers, but other than utilities, they're all losers today and that is because there are nervous stickers on the market and buying the dip even at ubs got a short time ago saying they're chomping at the bit wanting to buy the bottom here of the day because that is where we are. at the same time nervous as europe closes. financials home so many own these in goldman sachs down and citi group down 2.2. >> quickly, you have every sense to be proud of your greek heritage and friends back in greece what are they doing about this and getting access to money not being able to -- what? >> there's so much intense frustration, and we, you know, lauren did that great piece talking about getting only 60 euros out a day until the referendum and that when the near term. big picture is that measure and seems consensus is that the
measures are needed but it is the living standards so living and need investment to make it grow. but at the same time so frustrated with the prime minister, and so that is what they're looking, they're not believing him at the time and blaming creditor when he may have botched negotiations himself. >> thank you very much nicole. gathering outside the athens capitol right now state equivalent of the u.s. capitol they're not happy about this. other deadlines areing today at the referendum in greece at the end of the week but iran nuclear deal not able to make it that they might have to push that back. amber smith on that what she makes of that. amber they pushed it back a sign, obviously, that thing is wrong, and we're told that it is not a matter of dotting i's and crossing t's they're far apart what do you make of this? >> obama administration officials continue to say that no duel is better than a bad deal. but unfortunately as we've seen
this deal progress, i think it is just more empty rhetoric out of the white house. as we have seen these talks continue. iran has been emboldened by attacks because we're essentially playing into their hands. they know that the obama administration wants this sort of foreign policy win if the talks go through, and they feel as, though, that that will be a, you know, an a plus on their foreign policy mark when had a long list throughout. >> it is obvious that administration say what you will about wanting something so desperately to sign on to complete nonsense clearly over from john kerry is apparently inspection issue is it rightly should be a big issue and could say it has not an issue not something that we're gipping to debate, it appears u.s. team is saying yes, yes it is something we're going to debate. let's say this ul pas --
falls through, then what? >> as it stands now iran has gotten very aggressive in terms of what they're demanding out of this deal. they already are going to have limited ability to enrich uranium and limited access to researching atomic nuclear procedures, and so what iran wants to do is -- they want to take away those spontaneous inspections where inspectors can go into military sites and -- as well as interview their scientists, and so if this administration does not think that they're won the road to getting a nuclear bomb that is what instinct looks like that is ridiculous. iran wants a nuclear bomb. they want to israel off the face of the earth, and they want to have dominance in region and unfortunately with these talks what appears as, though, they're just taking iran's word for it. >> watch what happens but thank you very, very much. you know i was catching my buddy
>> all right, you know me i try to find good news in everything and in the middle of the downdraft something here that might provide a pickup pfizer is offering single packs of viagra. [laughter] it is true. that would be -- here's the drill, they want these single packs that is famous ire reck erectile drug
you can't walk into a pick pick and be done with it. but you can have -- you tell your doctor i have these packs so i can put it in the pocket and no one knows. anyway. i'm trying chals on these markets. what do you make of all of this other stuff? >> it is tough listen this whole greek thing, i don't think anyone is saying thought it would be out to this degree. last week they thought something would come up. they made crazy offers we figured listen, you're not prepared. you just aren't prepared. you don't have the infrastructure or the educationing. you don't have the history. you don't have the innovation, entrepreneurship. >> they call their bluff they're not worth your time. >> they call it had because it is not five years ago. >> following suit? >> it is a possibility. but so much less so than it was five years ago. italy market sup. they have a new young leader a lot of people they can work it out. spain it doing a little bit better. tougher position right now.
performing so told now i think eastern time, mark time well in about an hour the greek prime minister will address his people. they're not happy campers outside there. what is -- >> the polls are against him. how the hell do you have -- i'm your leader i know we're going to default on tuesday but vote on it -- >> punted by voting. [laughter] >> i know that was a wimpy way out. >> that is so wimpy way in over his head and maybe they have the referendum today get this thing solved that the people want -- >> it would go down to defeat. >> from what i've read polls i read that people, greek people will stay. : staying in all of those sacrifices. rnght right. a lot of sacrifices. here's the thing maybe long-term will be better to be controlled their own destiny but they don't have tools to do it. they are not equipped to go on their own right now. that is bottom line pain where creditors want or dier pain i don't know if they're prepared. >> i don't know if they're ready for that.
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>> well they always say in heightened security at times if you see something, say something that is rule of thumb in new york and ahead of all of these warnings by security agencies to be on the watch for anything like suspicious packages wouldn't you know it hits close to home right next door to us. at the nhl store in midtown, manhattan. they site what had appears to be a suspicious package, outside that store. we don't know anything more than that. they are trying to get to the bottom of it but occurs more than an hour after we got reports a man has been arrested in new jersey with suspicious links to isis. he's going to be arraigned in newark in about --
20 minutes from now. so we'll keep an eye on this, in fact, more than just this sort of a passive eye because it is next to us. all right now in the meantime this is happening around us self walling and broad on fears that greece is -- going to go about puerto rico they have debt and only obligations and on our markets as well down about 237 points and not all of our markets i stress to point out that our bond market has been beneficiary of flight quality in the middle of a crisis right now boy if you were in market to get a home loan today, your ship came in. because it is in your note and dealing about 36% a lot of 30-year mortgages most are paid, and that is about the only positive gain in town today. not exclusively but ashley webster in athens with the leat. where i guess we're going to hear from the greek prime
minister, rights? >> we are indeed neil, in front of the parliament building and i'm amazing how quickly the crowd has grown here. go for a walk into this crowd. the people here. partying organizing this are for a no vote they don't want to agree to the austerity condition outlined by european creditors. european leaders said today if you vote no, that is a vote for them an not the euro. as you can see a large number of people had a bike gang show up earlier about 150 motorcyclists on their bikes all turning up see if i can get through here. frank can you get through? there we go come on through. all being very oddly last time i was in athens it all got very -- well somewhat violent we had tear gas, riot police and we have not seen any of that this week being here, but there are police presence has been on this periphery but making itselfs
well known. what shall we hear from them topght? tonight he's going to say that the referendum for the july 5th vote which is next sunday is for austerity condition and no other european lead reverse calling for a vote for europe or not for europe that is the point he's going to make tonight so no doubt he's under pressure, and if the vote goes yes, then i think his political career certainly is that prime minister of greece is in serious doubt, neil. >> all right be safe to yourself ashley webster and violence there in that and banks are closed. atms are shut down you can't get access to your money except around $60 equivalent every day. you try living on that it is a mess over there. reason why bank stocks are feeling on chin if we can take a peek at those if not trust me that they have enormous runup ahead of this. so, obviously, some profit taking is in order here. but fear is that they're exposed to this mess and it will get messier former minnesota governor jim plan pawlenty looks
afl all of these things do they have reason to choir governor. is this a fear that a contagion could spread to greece and then you know the drill -- greece needs tough love and trying to get controls in place just giving them more money isn't going to solve the problem so this is the day or week or month of reckoning. they -- on the size look neil it is about twice the side f size of gdp of louisiana and take down europe or economy broadly know. but what we have to be kaibful is what we don't see and a intr connected we don't see and frankly damage to innocent bystanders people institutions here that have nothing to do with the awful decision making that led to this crisis that could get hurt if this topples. >> i woirl about indirect exposure and one thing that
comes up in the case of puerto rico is $70 billion of debt an want to stretch out and forgive payments. so far hearing from white house josh that there's no bailout being anticipated. but it does say something that this commonwealth of the united states is in such trouble. what do you make of that? >> well, i think, you know, it is the law of math mathics when you have people who spend more than they take in over time and make promises that they can't deliver eventually there's a day of reckoning and not here for greece may soon come for puerto rico and other governments around the world that is why i think it is important for the eu to set it here. if they let greece off the hook that sends a signal to spain, portugal. italy down the road and those have their own days of reckoning a presidential moment and country is run by a naive delusional socialist not capable of leading this country out of this problem, and i think they're going to --
shouldn't bail them out and they could let these guys stew in their problems until they get them fixed. >> all right governor thank you very much. before i get to my panel on this issue. i want to take a peek next door to us, in fact, just a few feet and then some from where i stand, this is in midtown, manhattan, a suspicious package found outside nhl store. and stanley cup might be over it. just coincidental outside that story. this is around 47th street an 6th avenue so-called avenue the americas right outside our offices here. it is a package that was left there. deemed suspicious authorities are there in new york. they have something is drilled into your head that if you see something, say something. of course, you know around times square everything i see warrant saying something be it as they may trying to get to the bottom of this and warnings off the major security agencies on heightened terror watch and security alerts for the fourth
of july holiday event is coming up. this is something that always is the wild card for markets as well. i want to touch on this. what is going on with greece with hadley heath and we have ron myer, hadley to you first on the concern, terror, other concern basically that greece is falling out of bed puerto rico closer to home not much better. nothing, nothing test people nerves like that. yeah. >> that vieght. i think a lot of americans today are thinking of our own national debt we have $18 trillion in debt and budget office saying that would top $27 trillion in next decade of course we have to think about ways to be more responsible here and to not spend more money than we take in basic common sense and something that our politicians and our leaders at home need to be taking into account. >> looking at guys gathering outside of my building here. people suddenly stop talking about greece and puerto rico and
stop talking about debt because they start worrying about life and death issues this is hardly up to that stage right now. but the fear is, oh, yeah terrorism alive and well on a day we heard a man arrested in new jersey. will be soon arraigned in newark with links to isis and here we go again? >> so that is why people want to make sure we're spending money on right things like homeland security but people are concerned with all of the government waste and spending and then governments fail we wonder what we're doing here. not putting in common sense reform like empowering federal workers to get rid of waste in their own department. i know we give federal workers bonus when is they get rid of waste in their own departments right now they incentivize ore direction. greek and puerto rico sale and taking basic steps i think that is one of the reasons why we have to start wondering what this presidential field to start talking about get our spending under control and having a sustainable government? >> all right, well as we're looking at this incase just just joining us a security concern rights next to our building a
suspicious package they found in midtown, new york, again -- it might be nothing. but heightened environment with warnings from almost every federal agency that high alert, this july fourth week, we're monitoring this situation. they seem to be trying to find a way to dig around the package to treef retrieve it but discovered 45 minutes ago. someone no doubt caught it. saw it, and then alerted authorities to it. we're keeping yo posted on that, but john looking at all of this and how security will play into this upcoming election and how candidates try to divide themselves on it. at the same time, financial security and trying to claw our way out of debt no easy ways to do that. but these are bread an a butter issues to all of these candidates, aren't they? >> well they are but let's face it politicians exist to spend let's face it, that is how they get rich out of office is they can move federal dollars around.
you go back to end of president clinton presidency, the federal budget was 1.8 trillion. republicans had pour of the purse. they proceeded major spending increases. more moderately back into power in the last couple of years and they promised a major reduction in the size of government over the last 18 months, we've seen the size it have government increase by 7% over 133 billion dollars. this is problematic that neither party understands that it is forget about deficit but government spending and a john boehner and nancy pelosi allocating over real economy. someone has to get it under control but neither party wants to. >> do you think the security and maybe on a, you know, anti-week like this will become a heightened and talked about issue raining in the nsa whole argument here that we have a little ahead of ourself it ourselves here. >> i think what we're seeing is a trend where events internationally prove nay sayers
wrong people who say we don't need a strong america or strong american economy or that we don't need a balanced budget they're proved wrong we see what is happening with isis in the middle east and what is happening with debt crisis in greece and puerto rico those are real issues and you have to take steps in advance to protect yourself yes financial will you but in terms of national security this is not something that america can just sit back and watch events of the world take place. we have to be proactive. thank you sorry to break in with another issue happening right next door to us. but another peek at that, such an alarming or potentially alarming crisis i don't think they would be allowing passenger traffic back and forth at crossk but appear to be this is in midtown 6th avenue around 47th street. as you can see passengers coming and going near the so-called suspicious package, we're on top of it, though, if for no other reason next door to this all scaredy cat right now.
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perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. >> the party is over in china, everybody. chienl's ball market officially turned 925 days old bare selloff on monday a wild day of trading indeed the shanghai composite now down more than 20% since its june 12th peek. again, today you can take a look at what has happened in this market. this market is still up more than double from one year ago. investor unwinding trades not even interest rate cut over the woongd by china central bank not even a loosening of the bank reserve requirements could stop the selling. and security's regulators telling investorrings that the
risk for margin trading are manageable should stay rational. what does that tell investors run for exits. investors can't see a bottom. people will be bottom margin forced to liquidate selling leads to more selling. then you have to start factoring in mutual fund redemptions and as i said chinese stock market is still up way more than 100% in the last year neil which to me say this is bubble is far from deflated. >> thank you very much many say correction is 10% bare market starts 25% off the high and that market is down 25% of the highs, but it has had incredible run. steve leave on china, and now russia, markets notwithstanding taking advantage of this greek crisis. so it is all morphed into one. >> yeah welcome it is neil, and i think that you've got a separate break the short-term from the long-term. short-term if i had to bet against the wall i would bet
greece votes yes to stay in the euro near term. >> all in all -- >> probably but i'm not really sure because they do have an option. and this is where it gets very interesting longer term and if we're not aware of this, shame on us big time. you've already had russia offered to grouse a membership in the so-called brick spank. the s at the end stands for south africa that is a big deal because brick has been sets up as alternative to the amf. now china also has another international bank which is called i think -- aii but it is alternative to the world bank. now >> russia playing this like a settle? >> china, russia both? >> they want to be the alternative it is to that. >> they do. in question for china is how far
west is east does west include germany maybe? china was the largest investor in germany last year and trained going from -- going from china through russia, to germany. >> you don't know china sure thing all of a sudden and then hardly in a position. >> not at all, no i don't. i think that china's market is up over 100% so comes down 20 or 30%. not a big deal. china's growth rate everybody says china growth is slowing it is slowed to 7% and it will probably accelerate slightly. >> i think they lie about those figures. >> this is something few people knew. >> not another acronym. >> shocked and back on my feet. one thing we're sure about that china is stating wrongly is how strong their economy is. they've miss and understate how big the service sector is in their economy. >> better -- >> yeah, it is. it is larger that is what we
know for sure they understate and make mistakes and probably deceive on other ground but only thing we know for sure is they don't tell how strong it is. willing to tell weaknesses than their strengths. >> i know here is threat and dissipated in midtown, manhattan word right now that this threat next door to us that nhl tour has gone away. suspicious package not so suspicious. traffic resumes as normal, of course, i didn't see any -- you know, any regular compromised at all people going about their business. but that threat is u now alleviated a lot of people have been e-mailing me neil at this moment next door to you, would you report on this, absolutely not. i would not but bottom line is, it is alleviated all is well. at least here. but across the globe and with all of the financial selloff and concerns about debt, and bills coming due, and financial tickets on the roost, not everyone close. we'll have more after this.
>> all righty you want to know exceptions to this selling rule today on corner of wall and broad take a look at coal and related stocks weathering all of this, in fact, more on any other day but the fact that they're up in the middle of the selloff. dow is in and of itself rather selling but, of course, on heels of the supreme court decision that slap down, epa saying that it must in the future weigh outmuch of its rulings will cost businesses that it must consider the cost to some of those decrees and this particularly on mercury content and businesses deciding how to eradicate mercury threats what forrest extended that to coal and other clean air emission standards whose costs to clean up whatever benefits cool of it. epa critic robert brice and environmental activist on that.
so -- give me a sense right now guys how you feel about this -- i guess robert i'll begin with you. what this could mean, what this portends for epa going forward? >> well going for the it is tattle hard to tell. the big issue i think going forward neil is clearly the clean power plant and whether to what extent this ruling affects epa's ability now to potentially limit carbon dioxide emissions more broadly a rare win for the coal industry which is just been getting hammered as you point out over the last few years, and p body up but domestic coal sector december mates -- decimated and also uncertainty going forward about what regulations will be under the obama administration and following the obama administration. >> do you think the epa changes its ways hao washed ow go business as usual.
a number of ceos here robert murray included i don't to run into all of this. here, but he's said that this is awful because they just decree and then he has to lay people off. you say what? >> i don't think necessarily it is awful at all. but i understand ruling. ruling doesn't kill any of this mercury regulatory issues all all. it is basically saying you have to take cost into account with this. which -- >> can they dial it back and say all right, savings aren't what you said they would be and then a he said, she said thing, right? >> the fact is environmental groups are pointing out that it is a $90 billion in savings because of mercury issues with health -- >> come back to say they lied about those rube right? >> of course they would say that they have lied about that. natural answer for them to say. but the fact is that even -- >> look the court grayed with that. that they didn't quite waive justification but be that as it may. >> interesting point, though,
because in other areas, if there's a recall in autoindustry or fda industry, like it becomes sort of salmonella poisoning they don't take that into account. a health issue. >> a point robert what do you think? >> i think we have to take numbers into account neat i i think narrow ruling saying that cost dos merit. if you look at mercury in the u.s. they're down about 80% between 1990 and 2010 criteria air pollutants down enormously over roughly that same time period emissions down by 76%. ozone down 23. epa numbers down by 50%. so the question i think going forward is clearly going to be to what extent epa can drive actual emissions down to zero and increasing cost to industry, and ultimately to consumers and that is where my interest lies
to mean to consumers in -- [inaudible] >> issues robert these are life issues you can't put a dollar figure on that, can you? >> fact is that you're talking about a significant chuck of people that their health is affected in a very large way. i mean, world health organization said that mercury is one of the top ten -- issues. >> i think court also they have it down to relative level now. so rough to wait? >> right? >> key issue going forward again is how is the u.s. going to see itself more broadly in global economy. u.s. emissions mercury roughly 50 tons a year china 15 times that amount. u.s. is leading world in reducing co2 emissions. six times more reduction in u.s. over c02 emissions although germany has spent a hundred billion on are you renewable mandates and in that regard that consumers should be protected
from excessive regulation so should interest. >> you're saying that court misinterpreted it. >> i recognize that cost has to be a factor in this. but when you're talking about the significant health issues that have gone on from mercury, it shouldn't be -- you shouldn't weigh cost of this saying consumer is going to pay that much more because so many people potentially are beginning to have life-threatening diseases from this. and -- asthma all kinds of things. >> sorry to jump on you guys collaborated on this nicely justice of the supreme court decision is in the future if you come down sweeping decisions and better justify the cost of doing so. so for or against that is what it cools down to. they have to now consider the cost of their remedies. all right we're about a hour away from prime minister saying what it is for the socialist tie part here. but he's trying to set greek people gathering outside the apartmentment building in athens
that all of this is for a purpose. your bank accounts, access, acm limited but all for a purpose. and you have a chance to vote on the owner's proition haves that eu lebd verse strapped on us. your call. why what is going outside there today, yay or nay means he's history. the way things are going, so might greece. we'll have more after this.
neil: all right. continue our look at the post-greek selloff boeing on in our country, after hour away from greek prime minister what they should do. keep hearing from the white house and others our personal exposure, the united states personal exposure to greece is relatively limited. roughly the size of oregon. others say city of new orleans. others say the catskills. i'm exaggerating to make the point. in dollar terms it is relatively small exposure, but when it hits the entire european continent as it has, half a trillion dollars worth of capital wiped out across the globe in the selloffs that is a big deal. european stock etfs are off 5%. a couple north of 8%.
that exposure whether you buy it justified or not is something we do have a direct stake. so europe falls through. get idea more than just european exposure. could be exposure to portugal. could be exposure to spain, italy and other countries that could be in similar arears which is all the more reason why the moneyfy jim lecant why we're obsessing about issues like gay marriage or whether there are health care subsidies or not. we're keeping our eye off the ball here. the ball is the globe. and the financial underpinnings. you're not encouraged by that, are you? >> no, i'm not. look, it is not like these issues are not important. they are important but they aren't only issues. real big issue out there for most people, do i have a job? am i going to be able to support my family? how does greece tie into that? because it ties into the global financial system. maybe greece by itself doesn't, as you mentioned but if portugal sees greece is all of sudden able to restructure their debt,
why not us? if spain sees that, why not us? we've seen what the bank owners, the bank depositors will do if they're threatened with capital controls and constraints. they yank their money out of there. if we start seeing that happen across europe, it impacts the global banking system. then it impacts lending in the united states. and when it impacts lending in the united states, it impacts jobs. your 401(k). look what is happening to the greek people. their pensions are being cut. could that happen over here? i don't know. we're using some of the same math in terms of determining whether we can pay for these things that they are. there is a lot of issues to be discussed here. and the global financial system is in somewhat of a jeopardy situation because of this. neil: you raise a good point. whether you're gay or straight you stand to lose a lot of green in the middle of this. i wonder if we get distracted by these issues. when i talk to administration types, liberals, neil, we can
walk and chew gum at the same time. if we pay attention to all of these issues at the same time but recent history seems to indicate they can't. so one or the other. the preference seems to be focus on these issues. go ahead. >> it is entire press. i mean this is all we hear about. the bottom line is, we have a financially ill literate country. people don't know how to balance their checkbooks. they don't know how much money they're saving for retirement. they don't know how the financial system impacts their jobs and they need to be aware of these things so they can make moves best for them and for their family and we don't talk about that enough in this country. we need to talk about it a lot more. neil: i think it hits people when they see something like banks closing, atm use limited. i mean last time we've seen anything like this was couple years ago in cyprus. i remember going out on the streets here in new york city, talking to people, what if this happened to them? they had said, gosh, i wouldn't like that. that would be a little scary.
all of this is meant to control capital from fleeing your country. invariably it doesn't work, does it? eventually the capital leaves and takes a long time to come back? >> it was dumbest thing they could do to advertise they would put capital controls in. your bank calls you, hey, neil, a couple weeks from now we might restrict to pull money out of the bank, i think your money would be gone pretty quickly out of the bank. neil: i would assume the smart money. i would sell all of my matador paintings yesterday i wonder what the greeks do? when they get opportunity to get their hands on money maybe on thursday we're told they're going to take limit up whatever the amounts are just as they did in cyprus when they started reopening banks and extended amount they could take out. whether it is 60 euros now and might be 75 euros on thursday, they will take out the maximum. so this will do little to stop the bloodletting. >> yeah, that's two now. first it was cyprus.
now it is cyprus and greece. if you're sitting there in spain, portugal or even italy, you're saying jeez, why couldn't this happen to us and it sure could. the bottom line, points out why the euro is such a failed construct to begin with but they're not even trying to fix it in the right way. could that happen over here? not anytime soon but in the long run it certainly could. and the administration and even the previous administration has done more and more to keep track of what you're doing with your money. so these are things that we need to talk about as a country and be aware of and what are our rights financially. neil: yeah, we're focusing on a lot of rights here. we have to get priorities straight. jim, thank you very, very much, my friend. >> thank you, neil. neil: i know a lot of hate mail will come in here. be aware of all issues out there, financial chief among them. including whether you have money whether you're gay or straight. trish regan joins us on the fallout all of this from greece.
touching more than greece. i know our exposure is limited and other stuff. that doesn't make it less scary, does it. trish: like the catskills. neil: when greene goes, pretty much there goes financial america. trish: it has impact on everything, but jim put it well. you have to be worried about the contagion issue here. it is not just greece we're talking about, but europe as a whole. very interesting milton friedman wrote a piece back in 1997 before the eurozone came into being. he basically said the thing was doomed. the reason it was doomed because you couldn't have this economic unit without politically being cohesive as well. you have many different languages, many different political systems, of course many different life-styles. you compare the germans with the greeks and it really exemplifies that. and so ultimately milton friedman said this is just not going to work and it is a bad idea.
boy, was he ever right. how many years later we're now looking at eurozone potentially falling apart. there is a lot of will there. germany would like to keep it together. angela merkel would like to keep it together but greeks are making it very clear, they don't care. i think the lack of leadership was very much on display when tsipras said he would send the vote back to the people. neil: the people are angry. thank you very much, trish. see you at the top of the hour. this is the scene in athens if we could still show it. the throngs are gathering. they will hear from the prime minister in 20 minutes. this is the largest crowds i've seen outside of parliament building. ashley webster is there, access to money is limited or impossible to get. some you can't get the cash when you need it. the question what kind of cash will they dispense in weeks and months ahead. now it is euro. those days could be limited. they could go back to the drachma which is beautiful currency if you haven't seen it. it is engraved with great
debt crisis. country's banks closed, the country financially frozen. european stocks plummeting with greece on the brink of default. the greek people get to decide whether to stay in the eurozone this weekend or try to go it alone. take a look at the stocks dragging down the dow, clearly feeling the fear of ripple effects from europe. from oil to financials here. energy sector one of the leaders of today's drop because crude oil is selling off today. crude oil down a buck 22 a barrel. meantime most coal stocks moving up on the supreme court ruling bense the epa. some coal names however still down more than 90% during president obama's tenure. let's take a look at quickly your utility stocks. they're holding up better than you might expect but the vix, biggest gain at --
i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? neil: we told but the little incident next door to us. fear of a suspicious package or pipe bomb be. fears were eased after it was determined to be nothing. steve rogers, former fbi agent someone said something, did something, thanks to given heightened alert this next week we should all do the same. nice to see you, steve. you take the threats quite seriously? >> this is extremely serious because of pattern events we saw over the last few weeks. we had france and tunisia.
we have to worry about what we call copycats, the lone wolves. and then the most catastrophic thing could happen a coordinated attack on the united states by isis or some other terrorist organization. neil: how real is that? >> this is real. this we said many times on this show. this has to be taken seriously. what we need to do police from local municipalities to the federal government have to engage but also people have to engage. saw it right from here, right from fox news studios, looking outed window over 47th street, waiting to come on, all of sudden people down in the streets are evacuated. neil: we need to see more of that you're saying? >> yes we do, neil. that happened because somebody saw something and led something. if that was a bomb, a lot of lives would be saved. neil: fear of all the agencies on the same page issuing same warning they expect something big. when they say that, are they just doing a pre--heinie
covering if something happens? >> a lot is routine. they get chatter and intelligence they're concerned about. if you notice they usually say nothing credible. neil: what do they base it on? increased chatter? >> increased chatter between international phone calls. maybe something coming up on social media. neil: like this kid apparently arrested in new jersey, arraigned in newark court, might have isis links? >> that kind of stuff. nothing solid. saying that we're going into the july 4th weekend, one of the greatest celebrations in america. what a time to hit us. now they're being very, very vigilant. think they're doing good job. neil: the acts we've seen already happen like tunisia attacks on the beach are things we should look at? >> we should look at every single threat that comes across the internet comes to us verbally or whatever. that is what the fbi is doing, cia. neil, this not only involves our country. international law enforcement community is deeply involved in the collection of information and intelligence in sharing it as we speak.
neil: thank you, steve, very much. give just a look around like you do you will at time. we appreciate that. steve rogers. charlie gasparino is doing some independent reporting on this alleged exposure that we have to greece, whether we should be worried about what is going on in greece, looking at dow down 230 points. banking stocks taking it on the chin. these crowds gathering outside of athens you think there is something to this. charlie gasparino is here to say, step back and take a deep breath. we'll talk about that after this. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck. fresher dentures, for the ♪best first impression. love loud, live loud, polident. ♪
but argument, if europe goes crazy our exposure to that is bad. charlie gasparino has been getting u.s. big bank reaction. dagen mcdowell joins us as well. charlie, what can you tell us? >> from a senior jpmorgan executive can't say our exposure to greece is zero but it is pretty close to that. this isn't a big deal. what he told me, again senior jpmorgan executive to fox business, this is five-year train wreck. even our clients are barely exposed. we should put out jpmorgan is important here. they are the nation's biggest bank. shares of banks are getting crushed. what bankers are saying this is huge overreaction. greece is diminimus in terms of their exposure. this is what they're telling me. neil: right. >> remember they said a lot of this sort of stuff during the financial crisis. we're fine. neil: i was going to say. >> i tend to agree with them on this one. on that one back in 2008 i didn't agree with them. i knew -- neil: the fear is, if europe still overreacts to that point,
and so we are exposed to greater euro, what do you make of that? >> we are but, we're not going to see a run for the exits like, greece is on its back. and you're not going to see -- this is not the kind of contagion that you saw during, you said this last hour, this is not a lehman brothers crisis. if anything this is great. if greece gets cut off by the rest of europe and they say, have fun. enjoy your drachma. we're letting you be, sends a very clear message to spain. sends a very clear message to portugal that we're not going to prop you up at no cost. so -- neil: poll showing what is going on as we're speaking here, if we can show it. this is athens right now. they're expected to hear from their prime minister who is under a whole lot of pressure that he didn't sense gravity of this. >> i don't think this is great in this sense it does expose particularly southern europe's debt problem.
southern europe, italy, spain, portugal, those are three fairly big countries, particularly italy, fairly big economies, they have similar problems to greece. neil: they don't want to budge like these folks. they have given up enough. no more. >> you keep saying italy has clothing industry. italy has huge industrial base with some of the best automobiles in the world and a lot of -- neil: very generous -- >> unemployment rate is very high. >> unemployment rate is not very high but depression level. they haven't had a gdp print positive in years. neil: but greeks are resistant coughing up still more. athens if you told them you had to make more sacrifices they say to hell with it. is italy the same, portugal the same, spain. >> we'll see, these are countries, and i have family there, living off essentially socialism for years. neil: they don't want to give that up. >> hard to culturally take that considering the fact that most of the entrepreneurs in italy
left italy and moved here. so we're talking about -- neil: how will they react to still more stringent cutbacks, dagen. >> they don't have a choice. they don't have a choice. that is what greece, this is what has happened with greece. it has been five years. they need to get gone or get with the program. i think they will vote to stay in the euro. neil: i think you're right at this stage. >> when other economies start feeling -- listen, if 2/3 of europe be sunk, because greece is going to go, if they stay in the euro they will go into depression, probably, at least a mild depression. >> economy started to grow before tsipras was elected. >> if you're elf selling me three or four major economies have to go into a depression or something close to it, that will have a real impact on the world. here is where it gets tricky -- >> i don't think one means four. >> they have similar, they don't necessarily mean four. what i'm saying to you, they have similar problems and these are countries that are not growing economically.
>> you know what the problem is? tsipras wearing no tie, right? neil: a little too lackadaisical. >> you snow what i say? the greek olympic athletes, they competed in the nude so, i'll take no tie over complete nudity in these negotiations. neil: very good. >> i think italians are going to negotiate. neil: look at the time. bottom line, bottom line -- >> usually bring guns to their negotiations. >> better than olive oil. neil: bottom line, this is what we're looking at in greece right now. their yield on their paper has soared, 10-year note over there is going for about 15%. 10-year note here going 2 1/3%. we're not world's envy, in the contagious credit nightmares we're the tallest dwarf in the room. that is where money is finding a home in our little room. we're attracting that capital. greece is not, if charlie is right, other cost follow. too soon to tell. but we are going to hear from
trish: hello, everyone, the greek prime minister is about to address his nation. we are watching it. it will be translated. we'll bring you those headlines just as soon as they cross. we have a major selloff underway, everyone, with less than three hours to go until greece defaults on its 1 1/2 billion dollar bill to the international monetary fund. you're looking at live pictures there of athens. take a look. tens of thousands of people gathered in the streets outside of parliament. the banks there in greece are closed. they're closed for entire week. they're not allowing anyone to take out more than $67 out out f the atm. as the country prepares to vote whether it will agree to