greece might default on its national debt. that's really not news. by one estimate 180 years since greece gained its independence in 1832 the country has been in default or restructuring for half that period. the news is that this time germany is willing to bail greece out. throughout the euro zone crisis it has been conventional wisdom to regard the germans as narrow-minded, ungenerous, and dog matticly wedded austerity to treat europe's problems. these criticisms are vastly overstated. consider that germany is being asked to take its taxpayers oh money in a democracy and tuesday to bail out a country like greece, which is guilty of mismanagement, poor competitiveness and financial fraud. and it has said yes. in return for this germans are being called nazis in greek newspapers. germany is by far the largest contributor to the european financial stability facility which totals a staggering $924 billion. that number will rise, and when come bined with earlier funds and loans, germany's share will easily exceed the country's total annual federal tax revenues. imagine the united stat

amongst the newly austere. it's effects are now being felt electorally. >> in greece the two main political parties center right and socialist parties who backed the bailout together won only about a third of the vote. voters rejected them both in favor of more extreme parties on the left and right. >> jon: interesting choice. rather than choosing a single path greece has gone with the by polar approach. >> the left wing party which has a very radical program and probably holds the swing votes in the parliament now. you know, it's basically an old line communist party. >> greece for this election over the weekend you saw 20 neo nazi candidates who came into power. that's the first time that's happened since 1974. >> jon: greece elected old line communists and neo nazis to rule at the same time. you know what might get us out of our chaotic political situation? what if we took two failed yet opposing ideologies, you know, the ones that battled in world war ii, and hired them? it's like if you take a reese's peanut butter cup but instead of chocolate and peanut you, you use (beep) a

missing. that is later in grape grape. up next, will greece's political crisis spell more trouble for all of europe. [ male announcer ] what's in your energy drink? ♪ wer surge, let it blow your mind. [ male announcer ] for fruits, veggies and natural green tea energy... new v8 v-fion plus energy. could've had a v8. >> bret: greece will hold yet another new election next month after faing to resolve the country's political dea eadlock. the ripple effect is felt throughout shaky euro zone. correspondent greg burke is watching developments from rome. >> greece held elections and will be heading back to the polls. the stalemate increase the likelihood that greece which is already received two bail bail-outs will have to leave the euro zone. with disastrous effects on the monetary union. greece's exit is not a done deal. euro zone colleagues are calling for more of the same. tough love. >> there is only return alternative. best route for the people. that is roo of reform and austerity. >> faces a full blown crisis. francois hollande defeated nicolas sarkozy. no what was not an auspiciou

. >> thanks to all three. we appreciate it. "outfront" 4fection. >>> still outfront, greece lightning. >> out! out of my country. out of my home. >>> a hostage's plea. >> president obama, it's important that you accept the demands and a quickly. >> all this outfront in our second-. just stay off the freeways, all right? i don't want you going out on tho yet. mmm-hmm. and just leave your phone in your purse. i don't want you texting, all right? daddy...ok! ok, here you go. be careful. thanks dad. call me -- but not while you're driving. ♪ [ dad ] we knew this day was coming. that's why we bought a subaru. ♪ tdd# 1-800-345-2550 you and your money deserve. tdd# 1-800-345-2550 at charles schwab, that means taking a close look at you tdd# 1-800-345-2550 as well as your portfolio. tdd# 1-800-345-2550 we ask the right questions, tdd# 1-800-345-2550 then we actually listen to the answers tdd# 1-800-345-2550 before giving you practical ideas you can act on. tdd# 1-800-345-2550 so talk to chuck online, on the phone, tdd# 1-800-345-2550 or come in and pull up a chair. and she's looking direc

ceo, a big number. a lot to get to this morning. want to turn to greece, the front page of the "wall street journa journal", grooek depositors pulling 700 million euro out of the banks, greece teeters as talks fail. again, we asked the question yesterday, we'll ask it again, greece's chances of staying in the eurozone, geoff, different today than yesterday ? >> irdon't think the odds have change any great deal. this hollowing out, though, as capital continues to exit the banking system is a bad niz story obviously for the greek economy. but we've just spoken to angela merkel the german chancellor. she reaffirmed her commitment to keeping greece in the single currency bloc. the markets don't believe it, and that's the problem. are the politicians going to come up with something that changes the nair tiff on this story? because right now everybody is betting that greece will leave. willie? >> and really interesting story on facebook. of course, the ipo is friday. everybody's been talking about this for months. cnbc reporting this morning facebook will increase the ipo size, could be va

coming in the hour. >>> payoff in greece. as the world economy is on the line. why a run on the banks could affect us all. >>> and they make cameras, but what was weapons grade uranium doing in the basement of a kodak plant and what if it had gotten into the hands of a terrorist. >>> and they promise to change your shape and drop your weight just by stepping out in a pair of their sneakers. now a shoe company is under fire for bogus claims. isn't today the reunion? ♪ you're doing it again, sweetheart. hmm? the thumb thing. ♪ -mine. -mine. -mine. ♪ mine! [ female announcer ] glidden brilliance collection paint and primer in one. available only at walmart. got a day? get some color. ♪ glidden paint makes it easy to add color to your life. glidden gets you going. glidden paint makes it easy to add color to your life. now's the time to move from to where you want to go. look up. with u.s. bank let's get the wheels turning. use our strength & stability to open new opportunities. to lend, and lift ...every business...every dream... to new heights of prosperity. good things are happe

. in greece, stocks hit the lowest levels in two decades as the government faces a political stalemate that threatens its bailout and status as a member of the eurozone. the turmoil is spreading across the region where markets in italy, spain and london took significant hits, even the dow felt it, dropping about 1% in yesterday's trading. german chancellor angela merkel offered cautious optimism about greece while warning leaders there not to push back against planned austerity measures that are part of the rescue package. much more on this. we want to turn overseas to london where we find cnbc's steve sedgwick. steve, the headlines in the "wall street journal," fears hit the markets. faith fades in euro firewall. is there a chance, steve, greece could leave the eurozone? >> yeah, i 30's a big chance. you've got to remember we had the greek elections nine days ago. and since then there's absolute deadlock because among all the major parties nobody managed to get a majority. nobody has a coalition together that could get a majority to move forward. it seems the anti-austerity grous and

. outfront tonight we have breaking news. the market today dropped about 125 points, thanks to greece and jpmorgan. deepening trading losses at the bank today. the total losses for america's biggest bank, at this moment we tell you could now be $4 billion. just on friday we were telling you it was only $3 billion and you may have seen reports the day before that it was $2 billion. jpmorgan is about to face a firing squad here in washington. at the bank today heads started to roll. the first out was the woman, the chief investment officer. she made $30 million in compensation in the past two years. it's unclear how much of that may be clawed back related to recent reform. we're always just hours away from a more public showdown. jamie dimon will be facing fire at the company's annual meeting in tampa. jamie likes a fight but you can bet he's not thrilled about the timing of this. is there will be a lot of tough questions from shareholders. here in the halls of the senate there's an investigation in the works. senator bob corker is a man who called for the hearings and he's outfront tonight

. "outfront" 4fection. >>> still outfront, greece lightning. >> out! out of my country. out of my home. >>> a hostage's plea. >> president obama, it's important that you accept the demands and act quickly. >> all this outfront in our second-. ♪ ♪ ♪ [ male announcer ] everyone likes a bit of order in their life. virtual wallet helps you get it. keep track of spending, move money with a slide, and use the calendar. all to see your money how you want. ♪ [ male announcer ] american innovation. 29 years ago, it helped us invent the minivan. ♪ today dodge grand caravan is the most awarded minivan ever. ♪ who knows where innovation can take us next? ♪ directions to th ♪ >>> welcome back to the second half of "outfront" on a monday. we start the second half with the stories we care about, where we focus on our own reporting from the front lines. and we have some new details to tell you about how the cia stop an al qaeda plot to blow up a passenger jet bound for this country. the senior administration official tells cnn tonight that the intended user of the bomb is not a threat anymore

it. "outfront" 4fection. >>> still outfront, greece lightning. >> out! out of my country. out of my home. >>> a hostage's plea. >> president obama, it's important that you accept the demands and act quickly. ♪ one a day men's 50+ is a complete multivitamin, designed for many of men's health concerns as we age. ♪ it has more of seven antioxidants to support cell health. that's one a day men's 50+ healthy advantage. ♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism. ooo no. the hotel lost our reservation. nonsense! you book at travelocity, your reservation's guaranteed. well, i did not book with travelocity, okay?!? [ female announcer ] get the travelocity guarantee anywhere when you book with our new app. you'll never roam alone. >>> welcome ba

economy. overseas many greece. newly elected leaders are meeting right now to try and put together a coalition government. that new deposit was supposed to bring them out of the financial ruin that has sent shock waves through our own economy. you see, banks bet big on greece's recovery and the failure is being passed on to you. if greece capital come to a consensus, there could be new licks and more of a strain on the world economy. the problems in greece had a big affect on our stock market. pushing the dow to its worst week all year, and you add to that the $2 billion investment mistake by jp morgan chase. their stock alone dropped around 10% this past week. but help, well, it may be on the way. the much anticipated facebook ipo coming this week that could pump some life to investors and into the market. maybe california should invest in facebook. governor jerry brown is warning that big spending cuts may be on the way very soon. that's gauze the state's budget deficit has ballooned to $16 billion. that's nearly double the estimates from just a couple of months ago. but as i sai

political landscape of greece. voters booted out many centrists who pushed those measures. greece's economy is so bad, it could drag the rest of europe down with it. the country accepted bailout money in exchange for extreme spending cuts, but they are so unpopular, voters flock to the far right and the far left on sunday. >> economic ripples from the elections in europe could hit close to home for americans and our ali velshi says we better pay close attention in the u.s. ali. >> don, let me tell you, when you look at these elections in greece and france, there are a few takeaways. greece is a small, small economy but it's kind of been holding europe hostage. france's economy is a big economy. france's president is the last in a long line of leaders who have been put out of office in the last two years because voters are unhappy with the austerity policies or this talk of government cutbacks. they think government should be spending more. in greece, you'll remember last year there was a massive parliamentary crisis, a coalition government was put into place to try and impose some o

bleed you even more. now is not the time to be cutting spending. >> greece, very much in the news tore. i guess it won't be long before we start hearing things like this again. listen to this. >> we will end up with a greece like situation on our hands. maybe even something worse than this. >> there's paul ryan recommend as what's coming to america. i thought the president's action, though not as stimulative as you and others might have wished actually prevented the united states from following greece. is that all right? >> let's put it this way. we're not greece. we have our own currency. we have a history of financial stability, which is good. you know, greece has been in arrears for half its modern history. so we have much, much more leeway where advanced countries in our position have much more leeway. also, greece's error was running large budget deficits when times were good, which is a very bad thing which, of course, is not what obama did. he's running deficits aet the time of a zee pressed economy, which is necessary. running deficits when times are good is what his pred sez o

debt out of countries like greece and italy and spain and then on the other side the new french president francois hollande. i covered them for years the g 8 summits and mel mows afterwards of understanding. hard to parts them. do you have any sense that one side prevailed? >> if you read the 39 point declaration. having trouble falling asleep last night, it was helpful. be one word that isn't in there. debt. there is a european debt crisis and that is not a fundamental problem. let have growth and more spending. incidentally higher taxes. i think we have a clear choice internationally now on economic policy. more spending and higher taxes and that is what they are both for. that is actually what the policies they want and the conservative alternative which has been followed in germany and sweden and canada and israel all of which have central right governments all of which are growing faster than we are and than france is and there they have tried to reduce the budget deficit and have progrowth fiscal policies. i think there is a clear choice and we are having a world test of t

eager to lend to risky places such as greece. >> even convents are being sold derivatives. >> and a culture of greed. >> it's actually known as "casino banking." >> one loophole after another. >> they came down here like sharks to raw meat in the water. >> have i got a deal for you. >> "money, power and wall street" part two, tonight on frontline. >> frontline is made possible by contributions to your pbs station from viewers like you. thank you. and by the corporation for public broadcasting. major funding is provided by the john d. and catherine t. macarthur foundation, committed to building a more just, verdant, and peaceful world. and by reva and david logan, committed to investigative journalism as the guardian of the public interest. additional funding is provided by the park foundation, dedicated to heightening public awareness of critical issues. by tfrontline journalism fund, supporting investigative reporting and enterprise journalism. and the best exotic marigold hotel, in theaters this summer. >> so much for that election day euphoria... >> the economy has now lost 650,0

and all of this follows the votes in france and greece that could have a huge impact on plans to resolve europe's debt crisis. the french voters fed one the drastic cuts there ousted president nicolas sarkozy in favor of socialist. francois hollande is planning to ease it. the associate press bureau chief joins us now live by skype from paris. how are plans to resolve europe's debt crisis now be threatened by the outcome of the elections in france and greece? >> reporter: hi there. well, first of all, you as you mentioned, france now has a socialist president who says austerity is not the way to go. he wants government sponsored stimulus programs. that's not what germany wants. france and germany are really the engines of the euro zone. so this could be setting him up on a path for conflict with germany. it is unclear whether germany will let the weaker european nations spend more. then you have greece. that's the really the most nerveracking develople. the political parties lost in parliament yesterday. that opens up the possibility that's the new leaders could reegg in or even

. no. >>> new reports out today indicate greece's debt crisis may be taking a toll on the rest of europe. the powerful german economy is showing signs of weakness and in the uk the double-dip recession is worse than originally thought. the impact of the converging crises could damage the u.s. economy as president obama heads into november. ben, it is bad out there. what, i mean, what -- and obviously no one can look into a crystal ball, but in terms of the future of the eurozone, it really sounds like greece may leave. there seems to be plans being made among the eurozone countries for a greek exit. >> there are contingency plans made in the europe nations. why didn't they make these sooner are repaired for a eventuality that greece could step out? greece, small economy, side of rhode island, on paper, shouldn't be a big deal. they had no idea how it would exit the eurozone and how to replace the euro with its own currency. the problem is investor panic, see greece come out of the euro, pull money out of banks. we exposure to european banks in the united states. we don it would be

in europe is bank run with a twist. it's a country run. the run began with greece. they lied about their budget situation. turned out they were deep, deep, deep, deep into debt. at the beginning this didn't scare investors too much. they thought the e rururo zone an fdic. they thought they would get their money, but they were wrong. the run is in the financial market where investors don't want to loan them money and in their banks where ordinary greeks took out 7 million euros on monday alone. greece is tiny so what cares if it defaults. if one endebted country goes down, will the next? what about portugal or ireland or spain. sud seasonally it's become easy to see,000 euro, that grand flawed experiment could come pa apart at the seams. things could fall apart within months, not years. economics and more important political could be huge. joining us now is nobel prize winning economist and the author of end this depression now. it's a new book that i've read, which is fantastic. thank you for being here. >> okay. hi. >> first, because you're smarter than me and you know this issue

are cut back as they will have to be, and they have been in places like greece, some believe it's going to be violence here in the u.s.a. and one of those is ben stein who joins us now from los angeles. that's what it is, right? you are looking into the future, progress miss at progres any at prognosticating to even eat. if that's cut back they are going to get violent. >> what i'm saying is that every single problem we see in greece is coming our way. huge deficits. going to be difficulty at some point, selling our bonds. there is going to have to be some austerity. people are not going to like it. some people will riot. we have already seen riots in our sister stiff oakland. we don't know exactly what those people are rioting about. but we do know they were rioting over alleged mistreatment by the government. now, os stearate becomes a rule of life in america. that won't happen everywhere. >> well, you know, we don't like to do speculation here. >> okay. >> well, we won't do speculation. >> bill: i'm actually agreeing with you. i don't like to do hypotheticals and i don't like t

, craig. what hangs over us besides the sunny weather is the specters in greece, including eurozone. how many times have we heard they finally got this resolved, 27 countries led by germany and france, the two biggest economies had worked out a debt repayment plan in exchange for cutbacks in greece. of course it turns out they had other ideas and now a reassessment. of course, the greek election still in flux. they won't have a government till june. and in france we saw a bilateral meeting with the newly installed president there. he was in the oval office with president obama, francois hollan hollande. that's what they're going to be talking about for the next 24 hours before all of the leaders lift off and head to chicago for the nato meeting. a lot of diplomacy. >> mike, we know the g-8 summits in the years past have been violated by slienlt protests. how is security being handled given the fact that this year's summit is being held here in the states? >> well, they simply moved it from chicago to the top of a heavily secured mountain 70 miles from downtown washington. i mean tha

greece has been doing for a decade and got europe in the problems it's in, the idea of spending more is endorsed by the french socialist and this is going to help obama carry north carolina and virginia. i'm not sure that we want to follow the european path which is to spend more. when people talk about austerity, they're raising taxes over there. that's true. that's not a very good idea. it kills growth. >> but grover, there has been an austerity plan in place in the eurozone greece's unemployment rate is 21.7%. 136,000 businesses are expected to close in greece this is year alone. >> yes. if you have regulatory regime as greece does, if you spend like crazy and put every third person on the government payroll as greece does, if you pay the government workers more than everybody else, it doesn't work very well. greece and europe are basically california and illinois in five years if we keep going on obama's path. that's what we want to avoid. that's what this election is about. are we going to end up like that or go back to what the united states has traditionally been. >> okay

will try to figure out how to prevent greece from derailing the economy here and abroad. foreign leaders will prepare for withdrawal from afghanistan in 2014. joining the panel now, yam i ruben, a former assistant secretary of state and spokesperson for the state department during the clinton administration. a pleasure to have you. big dogs at the white house right now. we know that the president is meeting with newly elected french president francois hollandee. tell us what your assessment of that relationship may be. >> we're going to have to get used to something that used to happen all the time. that is american/french differences of view. sarkozy, the last president, was basically pro american. he returned france into the nato military planning committee. this was a major development. france was now fully part of nato. on issue of an issue, he supported america's position on iran, sometimes even more tough on iran than the united states. that is different than what occurred in the '90s and in the during the years of president george w. bush. hollande by contrast comes from t

clamoring to invest in greece today. and if we don't begin to deal with our debt and our deficit in an honest and serious way, we're not going to have many options. listen, i'm not going to apologize for leading. the real issue here is, will the president lead? >> what makes us like greece is putting the question of whether or not we're going to pay our bills, making that a political question. that's what the economists said. >> george, remember, this is about jobs. if we are really serious about getting the american people back to work, removing the clouds of uncertainty are important. you can look at the end of the year, we're looking at the largest tax increase in america history on january 1st. we're looking at big cuts to our department of defense, that's going to affect our ability to keep americans safe. and we're looking at an increase of our debt limit. why do we want to wait and rush this through at the end of the year after the election? >> but you know that this isn't going to happen between now and the election? >> it's important that we do what the american people sent us

away in greece. when you think of greece, what do you think? the debt? it's about $540 billion in our dplar dollars. or do you think of the history? maybe you think of the beautiful greek islands. i don't know like mikanos. there are those who say all those things i just mentioned are assets. and they are valuable assets worth a great deal of money to, i don't know, a cash strapped country. there are suggestions that greece should hold a fire sale, or at least consider renting them. let's bring in cnn's richard quest from london. i am not the only person who thought those islands were very valuable. angela merkel has even made the suggestion to the greeks. is it real? is it a possibility? >> well, when you put it like that, no! that's the short answer. the greeks are doing some fairly imaginative things to try to balance the books. for instance, the acrop lis has been rented out. you can rent private policeman.man. and yes, no doubt, some of the greek islands will be leased. those that aren't already, of course, in private property. but greece is already having a fire sale. it is

to its lowest level since january. the reason, in part, a continuing fear about greece. so tonight the big question is will the late-breaking news from facebook be enough to turn the mood of america? facebook will begin trading for the first time ever tomorrow morning. so it priced tonight at $38 for a single share. when you add it all together, it is the biggest ipo in american history. the facebook obsession in this country reminding us of the 1983 classic movie "trading places." [ buzzer ] >> i remember ipos like that. all right. there are a few trading floors left. computers have replaced the conventional pit mostly, but when trading begins tomorrow at 11:00 a.m. for facebook, and it's going to happen at 11:00, which isn't when the market opens, about an hour and a half after the market opens, because computers aren't like people. it's going to take them longer to figure out the right price. there will be a frenzy of trading going on. the stock, $38 for a single share. priced just tonight. it is the biggest ipo in this country's history. twice in size of the second biggest. it

specifically the euro zone. after the news from greece yesterday, this is talk this is perhaps the beginning of the end for the eurozone. >> i think we have to worry about what's going on in greece. fans is a more stable situation. it's a big power. it's a rich country. it's talking about doing a little more than tweaking the agreements that have been made, but not overthrowing them. on the other hand, in greece, which is where a lot of these problems began, the government is basically going down the tubes. they have no idea how they're going to organize the government, how they're going to make the payments they need to make, how they're going to renegotiate their debt. everything is up in the air in greece and the powers emerging are radical on the right and radical on the left. so it's really unclear what's going to happen there will. >> i want to talk about the piece that you wrote in the daily beast published today saying it would be a mistake to think that the results tonight marked a popular mpb embrace of holland'se social flat form which could be summed up tax and spend. you think t

greece and three days left until the parliamentary election. the opposition to the austerity measures can bring extreme fringe parties like the far right, anti-immigrant into the government for first time. i asked what role some of the smaller and more aggressive parties are going to play. >> erin, interesting shifts taking place in greece. parties who traditionally led this country seeing their popularity plummet. and those on the lunatic fringe are gaining in opinion polls. now of course many of them as you say are opposed to the austerity measures implemented by greece to keep it in the euro. now, no one is expecting the extremists to take over, but the rise is having an impact. we're seeing the parties take much tougher positions on immigration and secondly, some of those fringe parties are now likely to get into the parliament, so even if the mainstream can hang on there may be many more anti-austerity measures in the parliament behind me with which to contend. >>> interesting view of what can happen in bad economic times, austerity in greece has put us in a very tough p

year. he was a little bit. >> all right. thank you very much. voters in greece are also showing many of their leaders the exit doors. greece's economy is so bad it could drag the rest of the world down with it. they accepted bailout money in exchange for extreme spending c cuts. the economic ripples from today's results could hit very close to home for americans as you heard. we had better pay very close attention. >> when you look at these elections in france and greece, there are a few take aways. voters are unhappy with these policies, or this talk of government cut backs. there was a massive crisis. a government was put into place to impose some of the cuts necessary for greece to continue to get loans. people don't like austerity. watching this election, these two elections very, very closely. on one hand you have liberals and the left who say too much cutting hurts an economy. if you go down this road we will have double the unemployment. but there is a message heres. this is what happens when you don't get your fiscal house in order. you end up like greece. and maybe there is