herself in desperation the european central bank is preparing for a house warming party the european treasury's symbolic new building will be the tallest on frankford skyline when it's complete but so far it seems the projects faced skyhigh criticism first of all for its ten digit price tag. we think the project is to shoot an ugly we also e.c.b. to use its money more carefully something taxpayers intrusted to them. stephen meissner from germany is part of reason doesn't see any reason to spend that much money on a piece of real estate but he says he sees a reasonable explanation of why the sky's the limit for the european union's economic monopoly they never run out of money it's they just come to me and the other taxpayers they go you have to pay more you're paying more if it more or maybe because it's e.c.b. the european central bank just print the money and while some may see an upside down logic here german m.p. mr scheffler explains it's more than just a piece of architecture. e.c.b. wants a palace a building to demonstrate his power through a million more million less makes no difference

means that true european government, a true european democracy, a real european budget, and real european treasury, and finally, don't forget, also the european bond market, a european bond market, that is the only way to solve the problem that was mentioned here. that ended to hike interest rates today in european union. that is the choice we have. and finally, the last word on the ecb. as you know i have enormous respect for you. as chancellor of germany, but what you have said on the gate was for us unacceptable. the opinion of the parliament, ladies and gentlemen, is respectful and very clear. and what we expect is that the european parliament is treated in the same way as you will treat the germans on domestic matters. european democracy, dear colleagues, is at legitimate as german democracy. [applause] besought. >> translator: next speaker for the green group and the free european alliance, rebecca harms. [speaking in native tongue] >> translator: thank you president. thank you very much for coming to speak to us today, madam chancellor. we remember you as the european head of government who

means through european government, through european democracy, a real unity of budgets and real european treasury and finally don't forget, also the european bond market, a european bond market that is the only way to solve the problem that's mr. svoboda has mentioned, the two high interest rates today in the european union. that is the choice we have. and then finally, mr. president, you have to know i have enormous respect for you as chancellor of germany. but what you have set on the gate of mr. mercia was for us unacceptable. the opinion of the parliament ladies and gentlemen is respectful and very clear, and what we expect is that the european parliament is treated in the same way as you will treat the germans on domestic matters. european democracy dear colleagues is as legitimate as germany's democracy. [applause] >> the next speaker for the green group and the free european alliance, rebecca harms. >> translator: thank you very much for coming to speak to us today madam chancellor. we remember you as the european head of government who got the lisbon treaty going, so a discussion with you

european court of justice. >> the court found that foreign stockholders in germany paid too much in taxes on their dividends and ordered germany to rectify the situation. the payments are set to cost the treasury at least 3 billion euros. >> the german economics ministry has confirmed media reports that european and north african countries have begun negotiations on a mass of solar energy project in the sahara desert. >> the desert tech project would see solar energy produced in north africa and exported to europe. according to a german newspaper, a treaty could be signed by early next year. the first solar farm would be built in morocco. >> could the saharan son soon be powering european cities -- the saharan sun? it could be home to a large new solar farm with the capacity of 150 megawatts. that is just one part of europe's vision to get renewable energy from africa. german-led consortium does it take wants to provide 50% of europe's energy by 2015, using wind and solar energy -- german- led consortium desert-tech. it is hoped that current negotiations could provide a breakthrough, paving the way for plants not only in morocco, but also tunisia, algeria, and other countries. the biggest ques

many people think that would happen in treasuries today and more european related. looks like greece is going to get their money. >> if you're putting your money, rick, on lower potential gdp, being in the 2% range, i think that's kpexactly what you would do. you would sell treasuries. that would be a quicker finger of the fed on the trigger of raising rates because it would mean there's less slack in the economy. if you think of the potential gdp as the speed limit of the economy, if, indeed, potential gdp is lower, that means we're already traveling at or near that potential already. you could still get a couple quarters of 3%, 4% gdp growth in that 2% environment, but the new normal, if it is 2%, would in general suggest higher rates from here. >> well, i wouldn't disagree with that, but most people i deal with that aren't economists that are trading on a daily basis, either institutionally or their own account, generically look at slow times as buying times. >> i think there's sop positive areas in the market. i think we could debate whether or not it rally is f

treasuries and it seems to me at the moment the european companies that are vulnerable also they're buying up these lucrative companies to good prices so the end of the day as far as persia is concerned they've got to pay their staff and as far as these russian state owned companies are concerned they want to diversify they water expands and they want to look good as far as their balance sheet is concerned to. least for the time being looks like a win win situation there katie pavlich thank you very much well let's move over to the markets now consumer confidence in the u. . u.s. is at the highest level in five years but apparently that's not enough to impress investors stateside u.s. markets are hesitant as to how to react to a broader i.m.f. a deal for financial targets for greece we've been talking about earlier on r.t. now some analysts say the deal may not be more than just another short term fix and it seems a deal on the other hand could make greece much less of a risk factor for at least the next couple of months so european markets managed some gains at the close as you can see th

wouldn't lend uncle sam my money for ten years for 170 basis points but the european issue continues to push more investors into treasuries. when do you think that will end? >> well, i own the u.s. dollar, partly from what you're talking about. my play, rightly or wrongly, is i'm long the dollar and short treasuries because i don't see that anybody's going to continue to lend money to the u.s. i'm long the 30-year, or the 20-year as it happens. rather than the short ones like you. it's going to end. now that the world knows that america's going to do the same thing for four more years -- >> jimmy, before -- the chapter's not written tonight by any stretch. in fact, this north carolina race we're looking at makes things a little bit tighter than they were maybe 10 or 20 minutes ago. john harwood, you have some thoughts on that? >> i just wanted to say north carolina is the first piece of genuine good news for mitt romney from the swing states tonight. he needed that state. he'd been favored heading into the night. when it looked like the state was wavering and obama might be doing better than expected, that was a very bad

cliff everyone's worried about now over in the european markets we are seeing a close which is slightly positive that's after greece sold enough treasury bills to ease worries of an imminent default five billion euros worth to be exact and the euro for that matter was a bit stronger froude the day to the door now it's flat whereas the russian ruble managed to lose around half a percent against both currencies and the russian markets to raise to monday's gains they went down very deep around three percent on growing concerns over europe and cheaper cruise take a look at some of the individual movers on the my sixty m. k. b.p. finished along with the market the firm's a russian and british co-owners have ended all existing disputes to clear the way for companies acquisition and or major ross which is actually buying up to be attended better than the market down just half a percent and meanwhile the top lender is burbank which is the heaviest traded stock on the market lost around three percent. good news for air carriers flying to europe from other continents the us decided to free them from paying admission fees for at least one more ye

the europeans don't want to hear anything from the americans. tim geithner the secretary of treasuryried to give them a few lectures about austerity. they said thank you but no thanks. this is the first international economic crisis. the crisis of the european union in which the united states is not a central player. since really the 1920s. it is a new world. the europeans think hey, we're big boys. the eu economy, as you know, ali, is larger than the u.s. economy. so i think what's going to happen is president obama is going to watch very anxiously because as you say it does have a huge impact. i don't think there is much he can do about it. >> that's why they don't talk about it much. in europe, we're mostly worried about the economy. the foreign policy issues are not as serious n china, there are a number of issues. one are the economic issues that i talked about. low wages, currency, manipulation and intellectual property theft and those thins. then there is the other issue which is the china and u.s. do not see eye-to-eye on the other issues that the world is facing right now. >

fiscal cliff that everyone's talking about now european markets take a look at them they have been slightly higher and that's up to greece sold enough treasury bills to ease worries of an imminent default five billion euros worth of for two bills was sold and the euro was gaining at one point on that but right now it's come down basically some certainty about greece of course not providing much optimism to investors when it comes to the euro the ruble has also been weak in tuesday's session and lost around half and half a percent against the basket of the euro and the dollar and the russian markets we're also seeing some a bit of a beating even butchering i'd say the r.t.s. down more more than two and a half the cent almost three percent this is preparing to sell and growing concerns over europe and chief of crude oil was moving the my sixty m. k. b.p. finished along with the market the firms the russian and british have ended all existing disputes to clear the way to the company's acquisition oil major ross never see the line number two that it's buying up here in k b p and therefore it's ended better than the markets major is also setting

treasury yields, lower today despite a weak ten year auction. i think right now the market is looking forward to the fiscal cliff, the aforementioned european problems. if germany's two year at a negative yield right now, what does that say about our two year hovering around 20 basis points? it means there's definitely some down side in yield terms there. treasuries are the place to be right now. risk off trade heading into the year end. we will have to see what happens with the new administration and the fiscal cliff. liz: you say treasuries are the place, although there was an auction today that wasn't exactly exciting. it's fascinating to watch a day like today superimposed where a day like yesterday where we did have a decent rally. where do we go tomorrow? mike, did you get power on? mike mcpartland lives a block from me. >> i think i'm the only guy in town who doesn't have power yet. i'm coming over to your house today. liz: come over. we will build a little fire and make smores. you are all invited. even as the dow experiences the largest drop in a year today, the market can still look at significant gains over president obama. look at the na

in fact the head of the european central bank itself mark mario draghi is the former managing director of goldman sachs international and here in the united states after treasury secretary and former goldman c.e.o. henry paulson did his job in two thousand and eight securing goldman's multi billion dollar bailout he was replaced in the new obama administration with tim geithner who had worked hand in glove with goldman sachs as head of the new york fed which was supposed to oversee and regulate them and geithner made sure that goldman received more than fourteen billion from the bailout of failed insurance giant aig. what's happening here goes back more than a decade in two thousand and one goldman sachs secretly help greece hide billions of dollars through the use of complex financial instruments like credit default swaps this allowed greece to meet the baseline requirements to enter the eurozone in the first place. but it also created a debt bubble that would later explode and bring about the current economic crisis that's drowning the entire continent but always looking ahead goldman protected itself from this debt bubble by betting against the greek bonds

. >> we become a pathetic western european country without the cobblestone streets and without america out there to protect us. according to the treasurye treasury secretary, tim geithner, twain report said the entitlement programs, plus interest on the national debt to pay for the programs, within ten years will consume 92% of the federal budget. that's eight cents left over of every dollar to pay for the entire military, for national parks, food safety inspections. the entitlements are already broken. only romney and ryan has a plan of touching it. by the way, not for anyone 55 years and older. >> well, you have a very negative president obama talk about revenge. you know, out, there get our vote for revenge. i'm looking at that revenge for who? >> right. >> then you have gov. romney, vote forgot of your country. >> yes, yes. i really love how corny romney is and how patriotic and they keep making fun of him for this in the mainstream media. >> look at the crowd he's drawing >> and some don't think he's hip enough. we tried hip. we've had really hip the last four years and the country is suffering. romney-ryan is such an amazing tick

. >> todd, we're seeing ten year treasury yield below 1.6% here as we go through you european trade.ou think of that? >> you know, it's amazing because the overall selloff in the general market has been very qui quiet with lack of fear. but we've had an explosion in the 30 and in the 10. >> what about apple? 20 percent correction. >> apple is in its own personal bear market right now. great strides going forward. i think we'll probably settle down somewhere around here. i'm not looking for any major rally. i thought that apple was a little bit heavy and on its way down. i think it will probably find some level here that will make it settle and we'll get some movement, but i'm not looking for a major move to the up side either. i think that it's probably going to steady and level off down here. and the rest of the market i think is trying to catch down with it right now. >> and what about that momentum? yesterday we did see the s&p close before the 200 day moving average, sitting about ten points below those levels today. in june when this happened, it was more of a bottom in the mark

european stock market to our equity markets. we're afraid you're going to start seeing this in non-income treasury market interests. asset backed securities look more attractive than high-yield risk right now. >> you see slow growth and the possibility taxes will go up, is it possible bontsdz are suggedsg a recession trade right now? >> i didn't hear the last part of the question. zpr are we seeing a recession trade in bonds right now? we're in a slow growth environment, taxes going up. >> there's absolutely going to be some more support for fixed income particularly in the municipal side. there is a recognition finally that taxes are going up. it's here. tax rates at the marginal $250,000, $500,000, whatever that is. we're seeing capital gains rates go up. we'll see dividend stocks increase in their tax rates. we're going to have a tax model that's going to favor tax for re-investing specifically high-grade intermediate municipal bonds. we're seeing that trade in earnest today. >> do you think we're going to go into a recession, point blank? >> i think it is a coin flip. depending upon what congress and the presid

european equities. when you have a destabilizing economy across the globe, that's where you want to allocate. >> jump n next up. >> i think that no matter who wins you avoid treasuries. if we're looking at equities, three areas to do well no matter if it's a romney or obama victory. housing has turned. we think the home builders continue to do well. we're in a multiyear, long-term secular uptrend for housing. we think technology continues to do well. >> david? go ahead. >> maria, i think what we were seeing in the housing market is very encouraging. i think that the recovery in the consumer sector along with housing will offset some of this fiscal drag we're likely to see. we're not likely to see a strong growth next year. it could be, you know, close to this year or better in gdp growth. >> all right. great conversation. we appreciate it. we'll keep watching that as we get the results tonight. thanks so much, everybody. see you soon. bob, what are you making of this rare election day rally today? what's your take? >> i got list of obama stocks and romney stocks like everybody else. it didn't look like the market was saying obama is going to win, romney is going to

the treasury is scheduled to auction up to 6 billion euros and those results will be out at just after 11 central european time. the key vote tomorrow in greece. called to approve the latest tranche of aid for athens. silvia is in berlin ahead of that vote. we weren't sure whether it could happen as isn't as today, but it looks like tomorrow. >> yes, exactly. if anybody is wondering why i'm there a day early, it's because we were really sort of touch and go because actually the debate and stro vote was scheduled for today, but the opposition got their heck he wi heckles up and said where's the rush, gives us time to study the papers. and i suppose they have a point considering the fact that i think it took them a year and a half to not decide whether seeshl securi social security recipients should get 50 more euros a month. if they hand out the 40 billion, maybe they should debate that a little longer. and the other argument of course they had was everything that we're signing up for now in terms of the greek deal things on the greek buy back program which is supposedly supposed to be finished before the

civility council, this european contractor could really cripple lending and community banks from c to shining sea. all of these things need to be debated in the next six months. a treasuryry who really knows how to make things happen is the guy we need. connell: isn't it -- when you can see that it is politically difficult for the president to pick somebody, somebody with a wall street like background. >> of course there are a lot of things in this country. some very good banks like jpmorgan under jamie dimon. there are some very well run. very well managed. these are all the credentials, hopefully, that will go into the mix. that person should be able to set an agenda, have the full free hand of the president to follow that agenda and to make changes necessary. we are not growing and this is not sufficient. connell: whoever he picks whether it is lew or bowles, they will not pull back on things like dodd-frank or things like that? >> dodd-frank was passed largely by democrats alone. i have talked to democrats embers of the house and senate who do agree that there needs to be some changes. 9000 pages to propose the final rules as we speak. it is under the gun. the avera

which, of course, the treasury department -- carbon in e-mails several thousand -- are the typing it out on carbon paper? you cannot turn the united states into a european social welfare system with the income tax. it can't be done. rates have to be too high. people will not pay it. and you have all the problems that carter had with the same challenges. double taxing savings and investment and business income just gets to be too heavy a burden. every major country that introduced the vat, it stayed in. we are now looking at the entry point for the vat is energy tax and when asked about it the obama people say if the republicans were to recommend we would be all over it. the guy who promised he would not raise taxes on the middle income sank if somebody else touches the murder weapon first he would be right there. he is for looting the middle class. he just wants republican fingerprints on the process. so, either we let -- we win or lose this fight on the tax increase on but none of the people -- that is not the target, it does not give you any money. you cannot turn to friends that way. in need the tax on the middle class, vat, energy tax, and that is w