bonds and the country's problems don't stop there despite being the fourth largest the problem in europe spain is definitely feeling the bite of the credit crisis and that many ask the question is the eurozone such a great idea after all the answer may just be no the country's rating has been downgraded twice in september of last year with moody's agency threatening to do so again in the future in fact some in spain believe the best strategy in the current climate may be an exit one. this would give us a certain autonomy it would affect positively internal processes in the country the purchasing power would give citizens access to all sorts of benefits and would have been good for the wages very well could lead to the improvement of situation in spain. a key factor here is distance while the spanish struggle with debts and unemployment their fate is largely being decided by the masters in chief in brussels. with what we're witnessing here major internal problems which you cannot solve brussels because it's outside of the e.u. competence they have neither the finances nor the labor capabilities

despite being the fourth largest economy in a europe spain is definitely living through a rough patch with a host of economic problems waiting to be solved as hopes for the country's eurozone survival fade more and more reach the conclusion that the best strategy is simply to leave the ailing currency. reports from madrid. some work to live others live to work corky market combines the two today he and his nephew run the picture frame shop set up by hawking father almost a century ago but the family firm is in a rough spot. all in spain my business has been struggling it was not visible in all areas of business times have been very hard. consider this unemployment at more than twenty percent one of the highest in the eurozone a gargantuan sovereign debt ever crossed their bonds and the country's problems don't stop there despite being the fourth largest economy in europe spain is definitely feeling the bite of the credit crisis and that many ask the question is the eurozone such a great idea after all the answer may just be no the country's rating has been downgraded twice in septembe

spain. a key factor here is distance while the spanish struggle with doesn't unemployment their fate is largely being decided by europe's paymasters in chief in brussels. what we're witnessing here managing channel problems which you cannot solve. all the time as in your comfort zones i have neither the finances nor the labor capabilities to help spain of course many people are unhappy with the place spain takes in the european union. but kim isn't losing hope that his country and his business will eventually climb out of the slump and of course it will stable. lies in the end it's the small businesses like mine that will do the job because it's real. close to hans in logical peroration it's something which me only be possible if spain quits the floundering federation of the eurozone and puts its own house back in order to give me those quite. well financial pundit mags kaiser's across all the developments in europe on the latest kinds of reports here until next hour. the libyan government has reportedly fired at tactical ballistic rocket for the first time in the country's conflict a scud missile is said to have been a

spain. a key factor here is distance while the spanish struggle with debt in unemployment their fate is largely being decided by europe's be masters in chief in brussels. what we're witnessing here major internal problems which you cannot solve brussels because it's outside of e.u. competence they have neither the finances nor the labor capabilities to help spain of course many people are unhappy with the place spain takes in the european union . but hook him isn't losing hope that his country and his business will eventually climb out of the slump of course. it will stabilize in the end it's the small businesses like mine that will do the job because three or four people take work closer to heart than large corporations something which me only be possible if spain quit the floundering federation of the own and put its own house back you know what are you going to college carty madrid. top story now and the upcoming meeting between the french and german leaders taking place in paris a little bit later let's talk to daniel bushell he's in brussels for i don't know what do these bankrollers like to consider next thing. th

spain. a key factor here is distance while the spanish struggle with debt and unemployment their fate has largely been decided by europe's paymasters in chief in brussels. what we're witnessing here majoring channel problems which you cannot solve. this is outside of the e.u. competence they have neither the finances nor the labor capabilities to help spain of course many people are unhappy with the place painted from the european union. but hook him isn't losing hope that his country and his business will eventually climb out of the slump. of course it will stabilize in the end is the small business is like mine that will do the job since he did this three or four people take were close to heart in large corporations something which me only be possible if spain quits the floundering federation of the ears own and put its own house back in order even because courtsey. and a lot of us are on our to look at how the economic misfortunes of the us trying investor trust in the world's top economy so forcing us vice president showed you all a confidence boosting trip to china some say america's troubles are simply too big to i

it is mainly about europe, spain and italy and whether or not there will have to be bailouts in those countries. the truth of the matter is, nobody believes that this crisis is over or that the regulators and the policy makers are ahead of the curve. unpalatable to say but that's the situation. >> that's right. many people have been saying did you see last week? did you see the correction in u.s. stocks? and much of the malaise in stock markets over the summer is for exactly the reason why the s&p downgraded the united states. so it is one of those that by the time s&p does it, it has been baked in. let me to go candy crowley. i know this weekend you had some fantastic analysis on your program as well from both sides of the aisle. from, on the right and on the left, who were both against the s&p downgrade. tell me about that. >> it was interesting to me. we had larry summers who is, as you know, bill clinton's treasury secretary. always top economic adviser to president obama. and then we talked to steve forbes, ceo of forbes inc. both very good economic analysts. so i expected they c

europe and the u.k. today with almost three trillion pounds wiped off shares worldwide. the crisis was triggered by growing fears that italy and spainould be unable to pay back their huge debts. europe's own government said they'd agreed to a new support package but italy and spain's borrowing costs continued their rise to dangerously high levels. >> i would, in fact, encourage now everybody to stay calm and breathe deeply and see that the economy's recovery is going on. it's important that we protect it from the turbulence and the work is going on day and night. >> it may be tempting to see falls in share prices as having little relevance for us but they disketly affect the value of our pensions and say a good deal about the confidence of companies to invest and create jobs. and it may say something about the banks' ability to borrow and then they find it hard to lend and then the economy weakens. this afternoon, there was a brief recovery in share prices after u.s. unemployment figures turned out to be marginally better than feared. but the respite was short lived. >> what i want the american people and our partners around the wor

where we have had to overnight for europe we've had. italy spain france and belgium have introduced short selling bans on financial stocks and that's helping the markets today we've got for example here in london barclays is one of the top prizes of the day so we are seeing strength in banks but it is like history repeating itself because similar levels of volatility we had three years ago in september two thousand and eight there was widespread short selling brands but over the next month financial markets will drop another fifteen to twenty percent so again trade is europe at least so far back convinced the short selling bans are necessary to change anything so just next week what do you think is going to be like. i don't know if there is a clear answer is that when i think maybe maybe after the game credible volatility we've had in the last couple of weeks we'll have something of a return to maybe more normal daily ranges but i think the pressure will still remain on stock markets i still think if we see a bit of strength the risk is it's going

spain for, like, what is it, over 800 years. so that's part and parcel, besides africa, and the lyricism and harmonies that we heard from europe through spain, that's part of our culture. and that's one of my big missions, to make sure that people understand that we are a multidimensional people, we are multicultural. all latinos are. >> hinojosa: right, so what i want to know, bobby, is when you're growing up in the south bronx, horrible things are happening around you. >> right. >> hinojosa: when they decide to build the cross bronx expressway, right? >> right, and the bruckner express way. >> hinojosa: and the bruckner expressway. and you're this kid. i mean, at that point, where... you know, are you paying attention in high school, and are you thinking, "okay, i'm going to become a musician," or are you thinking, "look, there's destruction around me, there's so much heroin, everything's on fire"? what's going on for you? >> well, music basically... and sports. i found avenues of expression through sports. i was very good in sports, especially track and field. baseball. i had these grand aspirations of becoming the second baseman f

the debt crisis raging in europe is claiming go in more economic sculpts spain's suffering recession and unemployment has now been put on repeat by the credit rating agency moody's and the international monetary fund has warned france that its credit rating could be slashed if it does not impose more spending cuts meanwhile the eurozone is biggest bailout recipient greece has been dealt another blow by one of europe's main creditors and germany's finance minister has warned the you won't write a blank check to buy back the bonds of failing countries in a move also intended to deter other trouble states from believing more relief is on the way despite reckless boring and economics also patrick young says green should have been pushed out of the year as a. this is typical of contagion we've been talking about it for weeks we have you know when you get some degree of illness and it goes through the body ultimately you have to decide when to amputate it and the truth is we should have amputated greece from the euro zone long ago there are fundamental problems going all the way through th

is scared that the divorce of belgium was woke up the rest of europe catalonia leaving spain scotland leaving britain where releasing separatist marchers in excluding the towns here turned violent with guns getting called take just one day class for brussels to become serial that's conflicts or a must killing not suffered in europe since world war two neighbors turnbull each other as you can slow of your broke up and the determination of regional identity is not to be underestimated fridge unionists say they have the flag and everything else worked out to become france's twenty eight region all that's left are the details of the new bush will see brussels. check out our website article for more stories in the tears and let's have a quick if you can find our lives about a party on the border with the pleasure of tends to tragedy at nine dad upper east side following a collision with the word of god. i think rain creek professor seven miners have died in two call my accident at the past can also have been out for more details on this story and lots more now about our website article. an

the bank did not say how were debt it is buying but italy and spain are europe's third and fourth largestconomy but we told the bailout is an attempt to calm investors over there. it didn't work. for example, shares in greece plunged to the lowest level in 14 years. now what? and now the assistant managing editor for the "wall street journal" owned by the parent company of this network. this buying up of their bonds, a sign of strength or weakness? >>guest: a rescue effort. when there is a rescue effort going on nationally, people wonder, how bad will it get and it dilutes and hurts confidence. that is what is happening around the world. concerns of u.s. debt and european debt and that is weighing on the market. >>shepard: the european central bank, and our fed has a conference call, their bank got together and said, among other things, it was confusing to people would understand this stuff and that does not include me, they said with the market it was described "you are on your own," and the free fall happened. now what? >>guest: the ecb is like a fed for europe. but these are all a grou

the third and fourth largest countries in europe, italy and spain, which potentially need a lot more money put into them, if they are to service their debt commitments over the next couple of years. we're not talking about bailouts of under $100 million. we're talking about bailouts of possibly up to $1 trillion put into the debt markets of italy and spain in order to see them service their debt commitments. there's question marks about that. that said, the markets are trying to find a line in the sand and they can't find it in the equity markets, at least not just yet. >> italy and spain, different than portugal and greece. what are you seeing outside as you come into work today relative to the rioting and london. >> i come in from way outside of london. i've had to alter my route twice over the last couple of days. it started off in localized events. now it seems to be spreading for a lot of areas. certainly where there are social challenges. clapham, south london, north london. there's a lot of outon the street who seem very disenfranchised. the politicians are calling them crimin

europe. italy and spain are here of us obviously too big to fail but within europe you can manage to bail out if you want portugal greece. but if you're looking at the size of the economies of spain and italy. then you have a really big problem on your hands at that that's what people probably will be looking most closely next week ok just one final quick question today when everything looked absolutely red on the markets after a great fall in new york in asia the only two in a series which were gaining with the madrid and milan exchange in the series. so i did not get that i had a. repeat that the only two exchanges prout the day today were gaining work the italian and maybe index and the objects of the madrid stock exchange why is that yes you've seen the interest rates coming down on the bonds and that does help. quite a bit but i think what people will be looking for when it comes to europe is what the what the e.c.b. and your european commission will do regarding waiting for the funds into the relief fund because right now it is my view would be that it's not enough to sustain you know i

including problems in europe. spain and italy are facing a ç debt crisis.eeling the heat from problems that are happening overseas. so of course, you know, the job numbers will tell us how things are doing here. but there is a silver lining. oil prices are down. >> that's right. some folks are running for the hills. the gold hills. putting some money into what theyey believe would be at leas something stable over the short-term. we always hear, don't panic, at moments like this. stock prices have tup belled before and they rebound eventually. >> there are always those who say this is the time to get into the stock market when prices are low. >> yes, right. exactly. >> both sides of the coin there. we will keep you up to date on all the market fluctuations all morning long. look for more live coverage on "american this morning" and we will return to wall street later on "good morning america." >>> as july's report on jobs is released today, president obama is announcing his incentive plan for unemployed veterans. he's pushing for tax credits for employers wh

spain. economics writer patrick young told r.t. because of europe's contagion is high level on the willingness to be decisive. the european union's bailout fund is on the verge of running out of money as soon as one of those major economies such as spain or italy to fault the public is being kept in the dark it is being sent a lot of messages from the political classes that don't really hold up to the stark reality of markets governments need to step in they need to restructure the market and we actually need to see that even the word defaults in other words some of the forms help people cost for the building tough to be restructured and ultimately some here in ma stand up with the banks no one in the euro zone wants to cure the problems they simply want to throw affectedly aspirin to cure an appendicitis annoy everyone is gradually getting the appendicitis throughout the euro zone and unfortunately the way to cure appendicitis is actually surgery. or repentance for a living the high life for too long is being taken to extremes of london as are two re

scared the divorce of belgium was part of the rest of europe catalonia leaving spain scotland leaving of britain we're really seeing separatist marches and mixed community towns here turned violent with guns getting called it takes just one big clash for brussels to become serial that's conflicts or a mass killing suffered in europe since world war two neighbors turned on each other as you can slow of your broke up and the determination of regional identity is not to be underestimated fridge's unionists say they have the flag and everything else worked out to become fraud says twenty eight region all that's left are the details of the new bush will see brussels. check out our website for more stories inventive and left behind a quick look at what you can find life right now as they pass on board a river pleasure bashing lost a chance to tragedy that night at a great time following a collision driven ride. and ukraine prefer set aside a night of diving to call what are sort of the first females have been held in the details of the story and what's more no one from what side. if. and al