>> okay, everybody, welcome back. >> welcome back to the goat rodeo. >> we're going to show you the christmas extravaganzaa, tune in tomorrow. julie andrews is here. >> go to bass pro shop for your free santa photos. bye-bye. >> this is a fox news channel special presentation. euro no. here we go again. now, neil cavuto. >> well, forget greece, mama mia, now it's italia. good morning, everybody, glad to have you and we interrupt the worldwide obsession with greeks not likely accepting gifts with reports this very hour, italy has now accepted a baby sitter, which is already brought out protesters in rome by the thousands as we speak. most of the commotion over a greek prime minister barely keeping his job, our reports that an italian prime minister might not be long for his.

silvio berlusconi is now being monstered, the best which he can put it, getting the free spending ways under control. no big deal, berlusconi says he's not taking any imf money or imf rescue. maybe so, but try telling these protesters that. they're all lined up today protesting all of this, and try telling all of these investors all over the world that, all worrying, thinking the same thing, euro no, here we go again. and presidential candidate ron paul here again to tell you i told you so. we can't save the world so stop propping up the world. so then the former u.k. parliament honcho who says ron is wrong. if we ignore the giants of ancient history, we're history ourselves. >> and a worried ceo on bigger fear, higher taxes coming

everywhere. get ready, because we are everywhere. in rome, in athens, in new york, in washington, wherever something is going down this saturday, we are teeing it up. so, grab some java, we're going to keep you ahead of the jolt and lots of jolts. first the very latest of them the pop there didn't go the weasel. george papandreou survived tight as a fit confidence vote at home to fight another day. the only question for him. how many more days does the government have, just because he's out of the woods for now does not mean his very much in hot, darn near drinking hemlock country is. we'll see. we'll try a week. no, not, not for greece, the former new coalition government, try italy to show credible progress on his budget. the finances and math and stock market in tatters and interest rates there, the highest we've seen in decades and now in rome, the biggest crowd, of course, we've seen in months. ring a bell? protests by the thousands warning prime minister

berlusconi, cut the cuts or this could turn into a bigger crisis. to britain, where prime minister david cameron is saying that the economy there is getting worse. in britain. aen in washington, d.c. we'll report that super committees are getting close. the debt deal that could be within reach, but man, oh, man, will it ever be a stretch. once you hear the details, some of you are going to scream. but now, to maybe a not so pain in athens just yet. ashley webster at the greek capital. what are you hearing, ashley? >> well, good morning, to you, neil. well, there may be protests in italy, but it's very quiet here in athens across the street there is the greek parliament building and people in athens going about their business as normal, while their government remains in limbo. prime minister george papandreou remains in that job at this hour, we believe. and he visited the greek president earlier today to tell him of his intents to

form a coalition government. as he promised he would do last night in his speech, before narrowly winning that confidence vote and told the president today, quote it's my intention to create a government of the widest possible consensus and that may be a lot harder than he thinks. the main opposition party here in greece says, look, we don't want to have any conversation with you until you step down. it's papandreou's hope he can form this coalition government and get that very much needed australwe austerity measure in place signed sealed and deliver so the country won't run out of money by the end of theier. as in everything, politics gets in the way and as we know, mr. papandreou is unpredictable at best and we're not sure whether he will indeed step down, but we're following it, neil, every step of the way and it should be said. it's a proud country and proud of the rich history, but it's facing a very poor future in every accepts of the word.

>> now, there's a sense, that what the greeks tried to cobble together and you're quite right not there together. it could be worse in rome where six times the economy in italy, and bigger, i go abouter worries, right? >> oh, absolutely. you know, the interest thing is, household debt in italy is relatively low and that's what mr. berlusconi keeps saying when he rejected some monetary help from the imf, but their public debt is right around 2 1/2 trillion dollars. it is pay out of control. although mr. berlusconi will tell you that the italian economy is second only to germany and ahead of france and the u.k., but the i mean mf and the rest of the euro zone very worried that italy's debts are starting to pile up, as we know, they're starting to pay a pretty penny knin order to borrow money and, the euro zone will most definitely be

threatened, neil. >> you're notice as we-- back to rome, a concert going on. this was the origin tent, a concert today and grew to be a protest movement. and among the singers is como, we don't know if he's relation to perry como, but a star-studded concert that grew into this protest movement, but it's interesting and now crowds by the thousands in rome. i can tell you that italians need very, very little reason to gather and party, this is providing a convenient one. you think what's happening there can't happen over here. not the concert, but the protest part. republican candidate ron paul says think again. he joins us on the phone. congressman, your concern has always been, we've got a world that's broke and a world that has to wake up to that fact, right? >> right, i don't think we're willing to admit the truth around the world. we know where all the problems are, but the only thing they talk about is, spending more

money and increasing the debt. but it's a debt crisis and it's worldwide. you know, this week, you know, our national debt crossed our gdp in the first time in history, but the world's that way, too. they have 195 trillion dollars worth of debt and that's approximately what the gdp is, so, the world is literally bankrupt and all they can say, where are we going to get the money and bail them out. we're very much involved because our banks are involved with the derivatives, protecting the banks of europe and why they don't want the banks to go under, but you can't solve the problem of debt and too much spending by spending more and increasing the debt. i just don't understand how they can believe this would work. but, would americans be any more receptive to this papal medicine than the italians are right now? a lot of these folks celebrating in rome, we can take a peek at that again, they're not leakly to accept

cutbacks, even raising the retirement age, 55 and they want to make it 57. it's 52 in greece, they want to make it 54. and they resist that any way they can and these italians are resisting any adjustments in the system any way that they can. could we react the same way? >> i think you can understand that. people become very dependent and don't want allowance to cut because they won't know what to do, but the whole thing is, if we continue to do this, it will be cut, for instance, the standards of living and the cost of living is going up for the retired people, the standard of leafing is going down, so if we keep going down they will be cut. and i think the government knows, i think that bernanke knows this that they want inflation, certainly paul krugman argues the case they want inflation and reduce the standard of living without saying you have a nominal cut, but this has been around for a

long time and that's how you cut real wages when wages have to come down because nobody would accept a nom mal cut. nobody going to accept this. their problem is the usual tools of spending and printing money hasn't worked for them, because the debt is so big, and just continue to do this just makes our problems that much worse and what i've always worried about, this would lead to political turmoil and that's what we're witnessing today and that will be worldwide, but-- >> i take it from what you're saying, congressman, you certainly, if you became president of the united states, would not be adding american money through to the imf and the national lender and the world bank for that matter and we are of course the biggest contributor to both and when it came to bailing out a country, be it italy or greece, you would say no? >> i would say no, but what the imf does, it's into the billions, but the-- the fed plans to spend trillions and bernanke was clear the other day, we were

standing by and watching this and ready to act so that the system doesn't, you know, collapse. and there'll be a lot of threats and intimidations and fear just like they did in '08. and they will resort to the bailing out. but, i think the people are waking up that the rich get bailed out, the banks keep, you know, they stay in business, and the corporations get the inmoney. the common man get the disadvantage of cost of living going up and they lose their houses and resentment is there and justified. what i worry about though is where the blame goes. is the blame going to go to the monetary system and the bailing out and the special interest or will the blame go to-- i don't want them to start blaming capitalism and free markets and profits per se. >> i was just going to say congressman, like an occupy wall street era, but i guess you relate more to their frustration, but not to their target. in this case, and so many

protests this week, a lot of banks and brokerage houses, that sort of thing. >> and i think it's a mixed bag. i think there are people there that are directing attention to the federal reserve, but there's a lot of them saying anybody who is rich has to be taxed and that is wrong, if you're rich because you provide the good product for the marketplace, you should be rewarded and encouraged. but if you're rich because you have an inside track to easy money and credit and you get bailed out and the fed takes care of you, because you're too big to fail. people have caught on to this and that's their anger, but the big job we have is sorting this out and blaming the bad economic policies that we've been putting up with for so long. >> congressman, good, at least, hearing you again, be well. >> thank you. >> ron paul. i was going to get a clarification on concert going on in rome now turned into a protest. among the singers is pascal como, i think i said batisio

and tells me no relation to perry como. there you go. and we'll keep monitoring things in rome just the same. and obama, one year from election day, why rome burns, this guy's reelection chances do, too. stick around we're on it. "well, maybe we ought to buy this hot dog cart and set it up someplace." so my parents went to bank of america. they met with the branch manager and they said, "look, we've got this little hot dog cart, and it's on a really good corner. let's see if we can buy the property." and the branch manager said, "all right, i will take a chance with the two of you." and we've been loyal to bank of america for the last 71 years. hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today.

i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business.

>> all right. this just in this saturday morning. likely next week, greek prime minister george papandreou telling he will indeed have a government coalition in place. while his italian counterpart says that rome is over the worst of the financial problems right now. so the former british parliament member who says, both of these guys better be telling the truth because the truth is, if either or both are lying, john brown says it won't be only the greeks and italians frying and your argument is the whole world

fries right alongments and unfortunately the g-20 recent basically saying the problem is too big to handle and what we're all witnessing now is the first phase of a three-phase evolutional-- first phrase being sovereign debt crisis in which greece is an important part because it's the first crack in the dam, but it's by no means the biggest. the big gorilla as you rightly say is italy and then of course, france and then the second phase the banking crisis and into the third phase, which is a feared currency collapse. >> neil: hold it right there. i'm sorry, my friend, are you saying that italy on the brink, and then france could be next? >> oh, oh, very-- even italy is going to reduce france off the triple-a rating and going to bring the whole euro zone off the triple-a

rating. france, their banks are stocked with more junk, and trying like mad to get merkel to get the germans to fund them. the germans seem to be funding everybody and-- >> there's only so much money in the well, right? eventually they're going to realize we can't afford to bail out-- the greeksen italy, france, kablooy. the next is going to be on france, but it all hinges in europe on the european central bank and people hope it will act like the fed and print money and as congressman ron paul said, one of the few politicians that sees it clearly and prepared to tell the truth. the thing is if they print more money, the lot collapses, but the european central bank is not just euro zone, owned by the european union, which

has ten additional countries and merkel has tough time getting support. and tougher from europe. the new governor although italian they're in with a single mandate not like the fed a dual mandate, a single mandate to stop inflation so their most unlikely to stop printing money like the fed. and therefore, i think you're going to see had a collapse of the euro, which is the second largest currency in the world. and that will bring on a recession, even a depression in europe, which of course, will spread to the american banking system, both in loans, and in credit default swaps derivatives that they've underwritten and investors because of assets they've hold in investments over there and then of course, to bank liquidity in america. >> neil: john, i could turn that around and say what ails them could help them. there might be a flight to quality in our currency, anything dollar denominated,

anything american and we would benefit by their misery or-- >> the benefit would be short-term. in other words, in a sinking ship those that go to the part that are not sinking just like the "titanic" those benefitted, but there's going to be a surge in the dollar as everyone flies out of the euro, but then people will question the currency paper, saying this isn't worth anything and then the massive flight to gold and silver. which will be the real problem. and measuring cannot benefit by a recession. >> neil: all right, buddy, thank you very much. >> recession and riots. >> neil: i think we were able to go to rome smoothly to athens smoothly, florida, that's dicey. all right. meanwhile, the president's trip to europe may be over, but is the political nightmare from all of this just getting started? ed henry is here and forget athens, try america. some of the same protesters breaking havoc on the streets

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>> all right. the countdown is on. one year from tomorrow americans decide whether president obama gets another four years in the white house. with the economy and the precipice will the fallout be all that matters in 2012. our correspondent, nice to come in on the weekend. his family has forgotten what he looks like. the president, saw what a mess europe is. do people there think they

benefit, the united states benefits by default? by comparison we look relatively stable. >> no, you know, they kind of look -- i heard the last guest going back and forth. they look at it the other way, they genuinely feel if you look at some of the jobs numbers this year into the spring, they feel enside the white house, the economy was turning around in a series of things, the tsunami, the arab spending the spiking oil prices and then mostly the european debt crisis really put the brakes on any sort of recovery here, you know, we checked the numbers yesterday. for, now that we have the jobs numbers for october. as you said it's at 9% still. and now over 28 months that this president had unemployment of 9% or higher. and that's obviously very, very tough headed into election. but, if you look at october of the third year in office, bill clinton had unemployment of 5.5%. george w. bush had 6%. as you know, the closest comparison might be ronald reagan who had 8.8%

unemployment in october much 1983, but unemployment was going down and had been over 9% in september of '83 and most importantly of all. ronald reagan saw nearly 4 million jobs created in 1984, in that election year, and obviously went on to win 49 states, if you listen to ben bernanke this week, he made it very clear, we're going nowhere close even in the optimistic scenario, close to creating 4 million jobs in 2012 and that is the thing that's underlining why it's a difficult reelection by the president. >> and not into the guys as you are i did talk to the white house landscaper the other day, and he was saying the trend, you know, he was saying the trend could be the white house trend. and the unemployment rate when the president took office, but well off the highs and gaining 100 to 200,000 jobs a month and you and i could figure of late that would be at least. it would confirm a pace that's

slow, but steady. what do you think. >> that's the case the president is making, heard him in france yesterday wrapping up the g-20 and say that very thing, look, this is a fact. republicans don't want to admit it, but the president is correct when he says, when he was sworn into office, we're losing 600, 700,000 jobs a month at that point. that's, that's a very rapid pace and it's hard to catch up and turn it around. so, before any of his policies were put into place, we're already in a bad place, now, the argument from the republicans, obviously, the stimulus, some of the health care plan and other policies by this president. the republicans believe made the situation a heck of a lot worse because the government spending and other things and the president is pushing back on that obviously, and saying, look, now that you look where we're at. creating about 80,000 jobs in october. not good enough, the president was saying yesterday. he knows that, but it's getting better. and that's a hard reelection strategy. it's not morning in america like ronald reagan to go back to the analogy in 1984, it's like there's a little bit of

daylight rising in earthquake m, can't you see it, maybe in 2013, 2014 that will get better, that's a hard case to make, but look the other side with herman cain, his struggles and romney struggling to break out from cain and gingrich and others, the white house has a shot. no question about it. this president can be reelected, but it's an uphill climb. >> neil: you're the best, buddy. thank you very, very much. >> thank you. >> neil: ed henry at the white house. he works hard. meanwhile, if the french love it, should we? french president nicolas sarkozy, french accent, pushing for transactions, every stock, every time. democrats in this country, say it's a good idea, depending on the trade, but that it will raise billions for what? well, whatever. to the guy who says, well, it is not, the ceo of td ameritrade, fred's got 6 million customers trading stocks with his country and says they won't take kindly to

yet another tax especially now. i guess the devil is in the details whether everyone goes along, right? >> yeah, i think this has been proposed before in the united states and it's been defeated a number of times. and it is a tax that has a -- you know, if someone has an idea, but look at the unintended consequences and the reality of this tax would be a tax on retail investor for saving for retirement and we think is bad policy. >> they come back and say, calm down, it's only pennies on a trade. >> pennies, what starts as a penny winds up being more and how you design it. the devil is in the details and as i said, it's all about the unintended consequences, whether it's pennies on a share percentage, who knows? but i just think it's a bad idea, it's a bad policy. >> and remind people if it is pennies on the trade, whatever, it must be worth it to a lot of the guys advocating it, they're talking tens of billions that could be raised and everyone has to go along with it, right? the french were early on board

with it. the british say, well, we'll see how it goes, and the italians are considering it and they already have something like this in germany, but everyone would have to dive in at the same time, right? >> i think to make it really work. because otherwise would go into different parts of the world in terms of the, you know, what you're after. which i think a lot of the-- the governments that are at this table want the tax revenue and they're trying to reduce speculation and high frequency trading in the market and it's going to change countries unless everyone goes along. >> i know, they're in the costs of trading and whoever is the advantage gets the investor. what do you think of the investment world right now and you and i are discussing for the break for all the triple digit swings we've been seeing, the dow is up. 3, 4% on the year and s & p is flat on that. small cap stocks are underwater and it's almost as if nothing has happened. >> yeah, we've seen a lot of volatility since august, in the market. we've seen, you know