good afternoon and welcome to capital account i'm more in the store here in washington d.c. these are your headlines for monday june eighteenth two thousand and twelve what can we say that makes up less than zero point five percent of the global economy but has the ability to rattle markets around the global reach is what i'm talking about of course the results of yesterday's elections there were touted as being pro bailout but were they are they driven by the fears of a eurozone accident of greeks going to the a.t.m. only to pull out devalued drachmas also they were seen as market friendly but today we saw spanish yields surge above that crucial seven percent mark hitting

a new record we'll speak about all of this with journalist greek journalist i should mention and commentator younis tell you logos in athens and the g twenty leaders descend upon those combos mexico and urged bold action for europe in the group's communique who talk about if this summit will have any effect on what we're seeing in europe and even bigger how greeks are reacting to comments angela merkel made on the sidelines plus business school administrations or at least one are teaching price fixing and how to cook the books what can we say finally so real world lessons first success will explain let's get to today's capital account.

yesterday was a big day we saw a second round of elections in as many months after the ones in may resulted of course in an inability by the parties to form a viable coalition to govern the country all eyes seem focused on greece at least all eyes in our world of financial media and the results of this time are largely similar though less fragmented with the electorate coalescing around what may appear to be a new two party landscape of new democracy and series they got twenty nine point six and twenty six point eight percent of the vote respectively so new democracy taking first place but very close with syria of course these represent a pro bailout an anti bailout party syriza anti bailout party has refused to join any coalition that is seen as pro bailout which leaves the door open for a possible coalition among the traditional major parties of. new democracy along

with the democratic left which could help give the government some amount of legitimacy because we know they need that and legitimacy it seems is the one thing missing in greek politics these days to boot that and a clear mandate by the people on how to deal with the country's collapsing economy and disintegrating social climate because greeks remain largely pro euro but anti bailout and while this vote i should mention has been touted as a vote for the bailouts a lot of people went with that had lined the greece supports bailouts but when you look at the numbers more than fifty percent actually voted for anti bailout parties now greeks also fear isolation from the rest of europe but at the same time they're not blind to the economic and social collapse taking place around them and short of a unilateral default or some sort of massive debt write off it's not clear how the greek economy can hope to recover in

a diesel implies of course. a euro exit or so was the unofficial word from brussels and berlin so where does this leave greece less than twenty four hours after one of the most crucial elections in the country's history where more than a third of the country's electric refused to even vote well it seems that the people remain as disillusioned as ever with the direction of the country and still are largely unconvinced that their politicians can be trusted to right the ship or trusted to deliver on rhetoric like this. i will make sure that the sacrifices of the greek people will bring the country back to prosperity. and the question is if this democratic disillusionment is really unique to greece or is this something that is missed metastasizing across the european continent spreading into countries like italy and spain with the eventually wallaby that the tumor will at some point prove too large for the german corps and its surplus

brother and to remove without risking a european wide disintegration well earlier i spoke about all of this with a yawn as pelosi is a contributor for the american prospect former editor in chief of free sunday a great journalist here's his take on the election results. basically the the center down to the issue of. the euro and what it takes to stay in the euro and most people were afraid that the victory would jeopardize which is usually the euro turning to new democracy even. if even though there were these yes think about this as some of us and. policies and most of the people who are really sick of austerity decided to go for sousa to try to give them the victory and in the end as you say it was a close run thing but the fear of an exit was slightly higher than the. revulsion of those so that's interesting so it was more of

a vote out of fear of what an exit from the euro zone would mean does this also tap into some other issues because this is very much framed by the media as purely a vote about the economic situation but is there also a political situation too and voters were weighing in on feeling like the country is better off politically in the eurozone because they don't want to be isolated or thrown out and does it also tap into some emotional aspects of the national psyche . but i mean the i think that's correct there are many ways in which our membership of the european union and. participation in the euro are now part of national life and. greeks would be. really upset if they lost the privileges and would you believe that he would be much more asked nicely that if we returned to the balkan fold and we're we're outside the european family and i think

that the. division that you see in terms of the of the voyage also represents a kind of existential division that exists in greece between. then than it used to be western. and i. believe that we're also different of them and that we also are part of the east so in that sense that too was expressed in the book how to what extent do you think those geopolitical interests factor and how much do you think average grade voters really are thinking about those things when they cast their ballots. i think it's probably at the back of people's minds more than the the primaries or the primary issue really was the fear that they would lose access to their bank deposits that they would lose access to a strong currency like the euro and their savings would be would be turned into drachma is an emotional you know obviously this is a country that depends

a little name for so they would be become pretty good to be expensive so these were the front line issues but the the. idea of greece being pushed out of the european family and losing touch with the european integration of the european project was definitely a part of it as well in a kind of you know do it with the emotional brain grayson's ok that's interesting perspective now when i was watching the news break yesterday on twitter and the blog here there appeared to be instantly this assumption that between new democracy ampas so they have enough seats to form a coalition and that's what we'll see but is having the physical number of seats and now for is there still a question of legitimacy and viability that is important and also unanswered. yes i mean i think the as you say a coalition is possible in terms of the sheer numbers because they have hundred sixty two seats i believe of the three hundred but politically that would not be

viable disease are the two bodies of the associated both with the long years of bad governance which led to the national bankruptcy and also with a very very harsh measures that have followed the the international bailout so the two of them alone wouldn't be able to carry the weight politically for the new measures that would have to be taken in that sense it's very important that the third part of the also come in which most probably will be the democratic left led by musical venice which could give a kind of a left wing alibi for the efforts that need to be made so do you think that we'll see a coalition between new democracy pasok and the democratic left is that the most likely outcome in your view or is there still the threat that there may not be a government. know that there will certainly be a government almost certainly by tomorrow night but it's still kind of an open question and i know mr summers is meeting with mr colville is right now and mr

billings is meeting with mr venizelos tomorrow morning and we know more after these two meetings. there's a kind of an. inner. and internal discussion going on of the demographic the reg left at the moment between those who believe that they should be part of the government and try to influence its policies from within and those will believe that they should stay outside. and my sense the most likely outcome is that. they will become a part of the government but it's the one hundred percent sure one thing i thought was interesting just to get a little more into the internal workings since you mention venizelos the leader of . e.c. said he wanted syriza to take part in a coalition seemingly so serious. wouldn't be able to position itself as that anti bailout party in opposition to the parties pushing through reforms and therefore allowing a party like there is a to garner more support for future elections so what's he trying to achieve is

this kind of a machiavellian move for him. i was like you know most boy this is my go i mean but i think it's very clear what. mr visit was trying to do she's seen his by the. support go from forty four percent to twelve percent in the space of two and a half years and in a sense he's kind of what he seemed to be putting by the before country for a moment there last night and they very quickly started backtracking from that. it's obvious that he doesn't want to allow susan to become the you know the strong left and the big party but the through the mother is that this is it is the end the bailout by the has been and remains at least for this moment one of the by the so it's really unreasonable for him to expect that she believes to just come in and give political cover and you know it in

a sense what does it symbolises assume you need a stronger position in the market and the. four proby up close and other to left have the numbers to form a stable government. just i do want to point out that thirty seven percent of the electorate didn't turn out to vote at all does this surprise you given the importance of these elections and what does this say about the disillusionment of greek society. it was a. kind of surprising result in the sense that people were saying that because it was such a crucial election they expected an increase in people coming to vote. i do think it shows the the kind of level of disappointment that makes far too many greeks now think that there's no solution that can be achieved through conventional boy things and i think is a very worrying sign for the future as indeed there's a seven percent garnered again by a golden dawn which isn't openly and the democrat the and the parliamentary and the

extreme right wing party. i was also the neo nazi party he was talking about he mentioned the future we'll talk more about it with the honest paleologos a contributor for the american prospect and also still ahead ever wonder where wall street or the large and out of the books well look no further than their college administrators will give you our three cents on reports coming out of one pristine just business school but first your closing market number. what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is you who with

a global missionary see where we had a state controlled capitalism is called sessions when nobody dares to ask we do our t.v. question more. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and you sure see some other part of it and realize that everything you say. i'm sorry is a big issue. here with you. but in the alone until you get the real headlines with none of the most of the problem with the mainstream media today is that they're completely disconnected from the viewers and for what actually matters to those viewers and so that's why young people just don't watch t.v. anymore if they want news they go online and read it but we're trying to take those

stories that people actually care about and transfer them back. welcome back so before the break we established that the status quo traditional political parties in greece are the parties it garnered the most support and at least are likely to form a coalition to lead the country's government but what does this do as far as actually creating solutions to help greece get out of the crisis it's in and for a country that really a hit in my eyes is everything that's been wrong with solutions to the crisis it's a lot bigger of a picture than just greece so i continue the conversation with all of those issues

with a yawn as paleologos he is a contributor for the american prospect former editor in chief of free sunday a great journalist take a listen. how can greece exit this crisis with the current policies in place everything is moving towards contraction greeks are pulling their money out of banks and greeks are not investing this is the dynamic. sure and it's a very troubling dynamic i mean i hope that the with the formation of a stable government this week and with the signs or at the from the europeans that the there can be some amendments to the bill of program that would make it less contractionary more conducive to growth and above all i think you know the most important thing probably for greece is that this discussion about its remaining in the eurozone or leaving it finally is because as long as this discussion goes on no

matter how well we do reforms is how how good we become at implementation no one's going to put their money in because no one wants to invest in euros and get their money back and wreckage. well on the flip side though you could argue if there is a more decisive end to this crisis once and for all a decisive bottom that's what would spur investment so do you think that there's any. truth to that that won't come out of these election results because this is essentially a vote for the status quo and to continue muddling through this crisis the same way that greece has for the last few years. no i don't think when you say bottoming out you do you mean and your religious right or your exit a default some kind of greater political will to actually deal with the debt and default on a portion of it or all of it i mean there's too much debt that can't be repaid but

. i think that's true and i think. if we started. doing the reforms that we have been doing and the european situation calms down in the next two months which is obviously a big if then the discussion can begin about the the second haircut haircut of greece is that two official present because it is true that the p s i didn't make the greek that the viable it's the two greats don't do paid but this can happen within the euro and the euro actually will have a huge domino effect on european financial markets and european and sovereign bull markets and also be absolutely catastrophic for greece will do only in terms of its you know immediate financial closer in terms of the point that supposed that would be terrible and that said you know there have been some reports initially that merkel's government signaled

a willingness to loosen greece's austerity requirements as long as the next government stands by its obligations under the bailout maybe negotiators would consider giving greece more time but then it sounded like merkel when she landed at the g. twenty told reporters no way she can accept any loosening of the austerity measures or the structural reforms that are conditions of the bailout so from what you're hearing will a new greek government have any room to negotiate concessions from germany. lysis is that they will the wall street journal reporter the day that they're asking for an extension of two years i don't know if they get that but. you know from the comments. by mr vaile yes the and even the statement by mr shelby which was you know more stinks like but you could see a window opening those well. and i can't imagine they will go. back at those on on this because they must know in germany that the new government if it's to

succeed that will needs to show to the people that it's achieving something that when life and the burden that they've been suffering and the burden is getting to be incredibly large you know we could see was in the employment of five years of recession that there's only so much that a book religion can take that absolutely and some not ask for his part the later a new democracy says that he is going to encourage growth and institute new growth policies while at the same time ensuring that greece meets its commitments that it's pledged so how and where exactly is this growth going to come from. both for example if if i mean the biggest problem that greece has really is the a bureaucracy that is huge and unmanageable. many many obstacles to investment which can be removed without the you know imposing new austerity measures on the people and if greece starts really only seeing starts improving the back service

starts making creating a climate that's more favorable to investment and if the dog dies down about its exit then it will be much easier to attract private investment and break the sort of the cycle of us there at the deficit got the. recession. and what is change there really about greece's long term fiscal sustainability do you see any commitment or any ability of any government that's formed to create some sort of positive economic climate like you're talking about or does this become impossible amid the reality that greece is shut out of the bond market. well i mean we have access to funds to cover what we need from from fish of prey those are that's more than immediate issue. the point is can we take advantage of the you know this umbrella and the time we have to improve. on the structural reform from the the issues i've been talking about and thus create the kind of

climate that will attract investment then you know we have a look to do as a country on this front but also the europeans need to help as well look just by giving money but also by stating finally and unequivocally that we're not going to leave the euro right and g. twenty is going on right now i have chorus part of the communique is that they're urging a a swift bold action from europe do you expect the g twenty meeting to have any effect on what we're seeing in europe right now or in greece where you stand. but i think the news out of mexico is that there's not going to there's going to be a lot of discussion but the expectation is that. the european seven summit that the end of the month we produce some kind of major solution and of course we've all been there before we will been waiting for the european summit then the big some notion and it hasn't arrived yet but my sense is that we won't get something out of

the g. twenty hopefully we get something out of the european summit. and that european summit comes of course later this month the saga continues that was the honest paleologos with that insight. well as a wrap up with some loose change dimitri shandon we love this story city university of new york's business school is all about leadership take a look. leadership receives considerable attention xix in business school including the into personal and team components. you've probably heard it's

the school of business there but according to a report from the new york post administrators are teaching price fixing by example you could say i did mr rader it's come out through this program forge professors names to raise the g.p.s. of students and their master's program high enough so that those students could stay and rolled into school could keep raking the tuition checks rolling in because it's forty five thousand to seventy five grand i think and these are these kind of full time get a master's and m.b.a. program and it's a lot of mid-level wall street i think i don't know why this guy going down in there says this is this is an innovative program i think these guys are learning look you can go to school and just learn theories in business ethics forget that you're going to success on wall street you should learn how to price fix how to cheat to get ahead how to lie out to steal those should be the core part of the

curriculum for any financial m.b.a. right so i applaud these people at this university because they're teaching these bankers these these guys were given the m.b.a.'s were ruined by law and surely merrill lynch j.p. morgan goldman sachs the skills they really need to be successful and rape not just consumers customers investors but countries entire countries as a result goldman sachs was instrumental in raping greece. surely. the guy who did this administrator that was forging these professor professors signatures his last name is sue this is that a greek last name and yeah it sounds like one of the ordinary what are you going to write ok the guy went to rowan and reservations. scumbags everywhere. good job he's worked at he's doing is teaching the bankers look you can't just say i can't you can't say i want to be a thief but i'm not going to steal those gold away if you're going to have a financial teaches guys try fiction where the best ok rod law love and all right let's move on to find out that's the curriculum that helps you get ahead and on

wall street for real let's let's move on because just last year u.s. president barack obama announced a national robotic initiative to invest seventy million dollars in robotics it turns out robots are not a thing of science fiction anymore or dreamed up in a movie like this. overall body of the future is in good hands just because of the last of the banks to the future cosby originally i designed it as a matter late but artificial intelligence has to smart. and according to reports while robots may be taking some jobs from humans there are some industries that robots will not outsmart just yet and media is reportedly one of them television channels and magazines will continue to need to employ people to report on stories manage editorial production teams and they will not be outsourcing to robots that's pure b.s. as usual there obamacare if you are already doing it there already robots and software that parses through articles for language to ok i mean it's an article who

who wants to watch a robot shepherd she was hardly a robot they're going to functions program half the staff of this program probably robots they're halfway there ok are you kidding me i don't believe the story for a second i mean not only if they could make them belong really authentic looking robots that just kind of parent the. care for fox because you brought up fox i mean the way that i work dumbass show where you think your blog you take offense that i don't take offense to that i disagree i do think that media needs creative minds something that robots unless they invent some sort of creativity chip that goes into it though you don't think they're going to take our jobs you will have a job with the media lobby for people the media for people lobbying but i you know what i just care i'm sorry i'm going against my own career but the robots guild for most people will be the first place dimitri i will have to and i mary snow are out of time stop talking and that's all we have time for thank you so much for watching

him please come back tomorrow and in the meantime you can follow me on twitter out lauren lyster and give us feedback and you mistake you tube dot com slash capital account have a great i will see if. there hasn't been anything yet t.v. . it is to get the maximum political impact. the source material is what helps keep journalism real. we want to present. something else. download the official location to go on a phone oh i pod touch from the store. one job life on the go.

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