but we have to remember that this situation in greece may not be confined to greece alone. it may be spreading to other european countries. and there are worries that it could develop into a global credit crisis which, if that does happen, there will be a spillover affect into the u.s. >> woodruff: meanwhile, susie, is there a sense that what happened today says something about the fragility, even the emotionality of these markets? >> absolutely. i mean, everything in the markets, as they always say, it depends on certainty. and when there's uncertainty, investors get nervous. and the big uncertain question right now is is this problem in greece going to spread to other countries? is this financial bailout for greece going to be enough? and if the europeans are having problems with this, and you're seeing those violent protests in greece, then what happens to the bigger economies in europe that are in trouble like portugal and italy and spain? will europe be able to contain that and handle those financial problems? will there be a recession in... throughout the euro zone? a

just like in greece. massive underfunding of pension pensions, the states are not paying in pension. they are robbing peter to pay paul and the states are absolutely bankrupt. there is not an answer by the administration or by anybody else dealing with this. they are going to try to bail them out but it's solvency, not liquidity. >> cheryl: tracy, do you agree with john we're daling out the states in some, shape, form already? is that correct? >> absolutely. we have been all along. the only difference between us and greece right now is we're making an attempt to make changes. we are not seeing it out of greece at all. we're not seeing the greeks make any change whatsoever, except for protests in the street like babies. we're trying here. we're robbing from peter to pay paul, and we have no money somewhat whatsoever. based on how obama administration is performing they're only going to write more checks and hand them out. >> where are we making the changes? >> i have to jump in here. jonas is right, as par

all right, we'll show you the greece, portugal, italy, greece and spain and also one comment, one comment here that i want to make. there's a couple significant things that have happened this week. if you determined on whether there's going to be contagion here. portugal was able to issue debt yesterday. in terms of the last time they had the bid-to-cover ratio at three times. this time it was only 1.9, but there still was demand and they issued six-month bills at 2.96%. spain, mark, is going to be selling debt tomorrow with a five-year maturity. spain, obviously, is a much more significant economy in terms of its weight in the eu at 12.5%, which just so anyone has any sense, that's just about the same as california is to the united states. so, the spanish situation will be a significant one to watch. let's get to louisa bojesen live in london. louisa? >> reporter: you're absolutely right that the spanish economy is a lot more important in many instances, and especially on that debt story. obviously, we're following the issues in greece now very, very closely as the violence has suddenly

otherwise, we get to where greece is in a few years. on how the u.s. is impacted, there is a silver lining. but it's pretty small. the silver lining is that a lot of capital that would have gone to europe or is actually in europe today would look to go elsewhere. and the united states is still the most attractive. it's what my colleague -- former colleague says, it's the cleanest dirty shirt. it's not a clean shirt, but it's the cleanest dirty shirt. so the u.s. will get some inflow. however, let's not forget what's happening in europe is deflationary for the world as a whole. and what's happening to europe is increasing risk aversions so equity markets in particular will come under some pressure. >> you said it's a clear example of what could happen. what do we need to do in the united states to ensure it doesn't happen? >> we need to get our act together. we need to recognize that fiscal adjustment is important and we need to be credible about adjusting over the next few years. the best way to do that is in a high growth world. so you have to take ad

for greece, though.ny. its constituents in germany, the public in germany, very unhappy about the idea that they have to pay for somebody else -- >> have they thought things through? do they think a bankruptcy of the entire country would be a better way to go at this point? or do they just think they're going to continue to get -- >> some of the angry people have said, look. the medicine will kill the patient. the medicine is worse than the disease at this point. >> but if you don't -- if you don't have the death service to keep paying for all the services -- >> but the case may be if you're talking about the severe cuts they're going to be taking -- >> do you kill aggregate demand because -- >> although if you looked at some of the benefits they get, a lot of people there are allowed to retire at age 45. >> no doubt. >> they need to leave the eu, then. what do they have, drakmas or something? >> they used to. the only way to get your way out of a problem like that is deflate your currency. like when it'

stocks tumble as worries about europe's stability move beyond greece. the dow tumbled 225 points, its second biggest point loss of the year, and the nasdaq fell nearly 75. >> tom: in greece, protestors took to the streets, worried the bailout package arranged by european leaders and the international monetary fund won't be enough. we get the latest from the imf's john lipsky. you're watching "nightly business report" for tuesday, may 4. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening, everyone. worries about too much debt in europe triggered a big stock market sell-off around the world today. tom, behind the selling-- serious questions about that plan to bail out greece. >> tom: susie, on wall street, the dow tumbled 225 points, the nasdaq plunged 74, and the s&p 500 lost 28 points. volume picked up considerably on both the new york stoc

ratio in greece will reach 150%. this is really high.an manages a higher ratio but greece is not japan. it seems almost inconceivable that you shouldn't have a radical debt restructuring. if they just had a disorderly debt collapse now, just let it happen like argentina after its default in 2001, then, of course, the worry is it could damage the banks across europe, there will be runs on all the banks, it would damage all the other countries that are deemed at all risky because there will be a flight to safety,esh will put their money in german bonds -- german banks or outside the zone so you could then have a terrible implosion, which would look in a way a bit like what happened after lehman. allowing greece to collapse it might be feared, we didn't try it, was very dangerous but it still seems to me that the right thing to do is to restructure the debt and accept that that is going to be part of the solution. greece is not, i think, going to be able to manage monstrous austerity. they are being asked, roughly speaking to put it into u.

has been taking steps to help greece bail out but with that they're calling for greece to make some promiseseople want that debt forgiven entirely. this right here is a cruise ship. usually see people headed out to tourist destinations right now. a lot of these have turned into protests as well. the famed acropolis right here, look at these huge signs. people of europe, rise up. what this is doing is taking this major nation and turning it's personally all throughout athens, where a lot of this is taking place, turning it into protest central throughout a lot of these streets. i want you to see some of the video. as you mentioned, this turned deadly. we have some reports already about three people, at least three people dying. we have other cases in which some people are missing inside major buildings. we have protesters surrounding certain buildings including financial buildings, some banks in some cases, security officials out there protesting or trying to stop some of these clashes and protesters as well. and from what we are seeing so far this morning, there is absolutely no sign of this

greece is the size of louisiana. it has the population of the los angeles metropolitan area and the gdp of ohio. that's the core of what's going on today. they're 2% of eu's gdp and they're broke. they're broke and the government is corrupt. no way that we'll take the amount of money that's been put in this thing and change greece. >> john, i have a thought. in the light of your excellent analysis, why don't they privatize and sell the par that non? just sell off the islands thp that may be the only solution. people think i'm kidding, but i'm not. they got asset, sell them. >> i think it's a great idea, but why sell the parthenon when some idiot will give you $12,000 each just for free? this is a welfare bailout nothing else. but in addition to the ironies of the day, pigg all have dead to gdp ratios less than germany, france and bell sgrum agium andn the united states. and greece is 108% today, but the u.s. will be 200% within cbo's projections. so i think what we see today is a little bit of a wake-up call that inv

greece is 2% of the euro land economy. but it is important because it is representative of the southern portion of that continent and perhaps i think the most grievous offender in terms of debt and risk of repayment. it is -- you know, it defaulted several times in the past few centuries. still, much larger which is spain. and you are talking about defaulted 15 times according to rinehart. to me suggests the current contagion has to be contained or a forest fire is on our hands. the important connection for the u.s., of course, is that the u.s. is no stranger to -- high deficits and so is vulnerable itself to the event in greece which in its core and i think most important thing is that deflationary and not reflationary event. >> bill, you raised a great -- great to see you. you raise a great point which is that people say why is gold down if there is such panic. clearly this is a way deflation. how about if you own a euro. and you are rich and you are in europe. don't you just want to go buy short term and u.s. bonds and

is up, greece is down.rope, how much of this is caused by a return of fear? that car bomb in times square could be linked to terrorism. it would signal a new approach to mini bombings that would make us feel nervous all the time. wall street is made up of people, guys. drew, no factor here at all in this? >> i think what you're looking for is probably what the job's report is on friday. and you want to see a number of 200,000 or greater and that might restore some confidence to this market. and i will remi'you all, if you average that number until 2016, we would just barely cover the jobs we lost. >> the terror thing, no one else thinks that is affecting people? >> i don't see the terror thing at this point. >> why, jeff, do you absolutely think it cannot be? there has been a lot of headline risk for this market. >> did the bomb go off? no. they got the guy. you feel comfortable about that. this is european related. >> somebody who has spent a lot of time in order to get that statuses. i think it raises con

i mean we saw what was happening in greece as it was happening. and we saw the-- attacking it democracy and attacking banks. there is a reality behind it. it is just not the public. there is a real problem. you see it. and we are not innocent bystanders to it. the last recession began here. we're seeing something else now. >> so the president comes out today, we saw him earlier and he's talking up the jobs numbers but he has to be very anxious about what he is seeing happening, it might spread. >> he's got to reflect where the country is. and i think the country has probably a pretty good read. what happened yesterday in the markets was just something that happened. but what we are seeing usually at this point after a steep recession, you got some phenomenal growth numbers. you up in the 9, 10%. we are not seeing that. we are seeing 3% and we're seeing good job numbers for the first time so there is clearly a trend upward. nonetheless there is just allots of bad news floating around there and i think the number one weigh on the public's mind polit

i don't think that it has much to do with greece. i don't think that greece is so bad for the u.s. stock market. however, i think that we're due for a correction so i'm a buyer once you settle down. i think that we've got a little ways to go here. >> now, wait a second. wait a second. you've got the euro on one currency with a lot of different economies which have different -- you know different landscapes economically. >> right. >> one central bank. everybody was talking about the euro wasn't going to make it when it was formed. it was so hard to believe that you could have one central bank, one monetary policy, you know one currency and argument these different economies. if the euro collapses now we had axel weber on, saying not going to collapse, but if it does you say not an impact on the u.s. market? >> well, i don't know what you mean by collapse. i think that the weakening in the euro is good for the stronger european countries like germany france. >> because of the exports? >> absolutely. i don't see a collapse. i thought that the euro was overvalued anyway especially at $

and it's not just exports to greece and italy. it's to the united states, to asia, to the middle east, to a lot of places in the world where demands improving. so germany's economy is doing quite well, actually. what i fear is that maybe at six or nine months down the road, but at some point germany is going to require higher interest rates. higher interest rates at the e. c. b., european central bank, went down that road would be a nail in the coffin for places like greece. so that dichotomy i think is going to be a big stress and probably end up pulling the euro lower. >> tom: back oh the dollar, it may look strong against the euro, but what about other currencys out there? is the dollar strengthening? >> that's a great question. everyone looks at the euro, dollar and say a is the dollar, but it's far from it. the euro is about 18% of the trade weight of the dollar. the dollar against all the countrys that the united states trades with. and when you look at a broader picture of the u.s. dollar today, it actually flat to slightly

it's not just about greece. but if we look at europe and what's around them and say there is a possibility that one weak country might lead which might lead to domino effects elsewhere, you would be left with a euro dominated by strong economic countries. and if you then look at the two largest of those country webs that's to say, for instance, france and germany, here they are with export led growth with world beating export industries that have just been handed a 15% deval ewation. what i'm not trying to do here is call the bottom or suggest in any way that we should be minimizing the risks and the problems, but i feel near term that there's a possibility, at least, for some tactical relief rally because i think the market is a little overpes mittic now. i'm not suggesting that ultimately this is a alternative were certainty to play out well, but short-term, we could be on the cusp of a technical rally here. >> how much of euro's problems, the debt situation over greece is benefiting the u.s. treasury? >> clea

and in truth, there aren't any other alternatives for greece. from the open markets, it would be paying in excess of 10%. last week the greek 10-year bond reached 14%. that is simply unaffordable for greece. the unions say this is useing. they say 5% is too high. why can't they just give us the money. but they're not suggesting any alternatives. they're not suggesting where this other money might come from. neither have the opposition parties. the conservative opposition, which is the main party, the main alternative, said we will not vote for the government's i.m.f. bill in tomorrow's parliamentary vote, but the government has the seats in parliament to pass it on its own, so our vote doesn't matter. neither will we obstruct it. but the left wing doesn't have that sense of responsibility. they don't have any chance of coming to power, so they can simply say what they like. that's what happened today. >> warner: surely more chapters to come. john psaqropoulos, thank you very much. >> thank you for having me. >> and finally a very >> brown: final

have about these belts in greece? guest: and we are nowhere near the point where a priest is, -- greece is, but we are spending more than we can take in. there would be no one to bail us out, if anything would happen. i think we have not seen the end of this problem, but but we need to emphasize is the need for all countries, including our own, to get our fiscal house in order so that these things do not happen. host: they have a chart looking at the sovereign debt compared to other g & nations. here are the figures from 1950. coming well back to those post- war years in europe. what is the level that that number should be? guest: certainly, lower than where it is. greece is around 120%. there is no magic number. the fact that country were able to pay down that more time debt, you can grow your way out of it -- that is what we did in world war ii. but one of the problems now is europe is not growing. when the lenders to the program getting worse, they back away, and you get kind of into a debt spiral where your costs

now so when greece gets into trouble, they keep getting the money that they lent to greece. so taking a hit would mean if they lent a bank $100 to greece, a part of that whole package would be that bank would only get $80 for the 100 lent, and suffered a loss of $20. that happened help the problem with greece with a situation and not have to impose a hardship on its own people by wage cuts, and those problems. everyone constitutes the problem and that's what i mean the banks taking a hit. and why at the bottom of the pyramid, that's a good question. and it has to do with two things, let's talk about the united states and the world. it's happening in the us for two reasons, i think. one, they got too powerful, and that's a lesson from the crisis, that all of these fancy instruments that they thought would improve the way that the economy is run. a risk would be spread. it turned out this is just a giant casino, but guys on one part of the casino are making a lot of money. if you look at the situation in united states, part has to do with guys getting more and more of the econ

greece does not yet have the money. there are also concerns that if greece -- if and when greece does it the money, can they do the things that are being required of it? candy, in other words, increase taxes -- can it they, in other words, increase taxes and other draconian measures? what is the future for greece? are we looking at the situation in countries like argentina? that is the worst-case scenario investors are looking at. and you add to that, what could happen beyond? what would happen in countries that have high problems of debt levels? that is where you get the contagion of fear and that is what drives the market at the moment, concerts -- currencies and oil prices. >> in hours, britain's go to the polls to vote in the most closely contested election in decades. polls show a large number of people still undecided. there really is everything to play for. turnout could be considerably higher than the last election. at the moment, still a three- course race with no obvious -- 3-horse with no obvious winner. >> i

and here's david muir. >> reporter: greece's famous ruins, now overshadowed by financial ruin. today, tens of thousands of protestors, angered by huge tax hikes and drastic spending cuts, went on strike, setting the finance ministry ablaze, throwing gasoline bombs into this bank. three people died inside. why is this crisis in the streets affecting global markets, even our own? for more than a generation, greece has been lax over its spending -- paying out salaries on the government dime, with huge holiday bonuses, paying employees as if they'd worked 14 months a year instead of 12. early retirement, for some, in their 50s. and tax evasion was not only accepted, but embraced. but greece is now drowning in debt, desperate for a bailout from its european neighbors who are asking, "why should we pay for your mismanagement?" one economist told us today, it would be like kansas, in this country, not paying taxes, and then later asking the rest of us for a bailout. >> it's kind of like everyone in the country saying we have to ante up a few more taxes to what kansas didn't pay. every

the markets have been demanding a rescue package for greece. finally it happens, and the markets slide. why? >> there is a widespread fear in the markets and elsewhere that it may be too little and too late. big as this package is, it may not be enough to rescue greece from ultimately having to restructure its debt, which means forcing some of its creditors to take a haircut, take some losses, write off some of the debt so greece can start again. >> reporter: are you saying -- >> woodruff: are you saying that given the nature of the greek economy with its bloated public sector, its tax evasion, that there is reason to doubt whether it could live up to the terms of the agreement as it's -- the sort of massive loan bailout as it's currently constructed? >> there are two things. one, can it live up to the agreement? the second is, even if they do, is the agreement big enough? there are some doubts about their living up to it. greeks have been living way beyond their means. they can retire at age 55 on 100% of what they were making. only a few thou

so it's greece and then we think that greece is -- we have a process or the european community and then the united states has a process to get through that and it's settled for a couple of days and then we found that there is more uncertainty in the same place and then portugal comes up. and right now around european economy and so how does this all work when you have a european union and you have independent companies that have huge gaps. >> and the same currency. >> and the same currency. so i think it's really a lot of uncertainty about this new structure that we have in europe and how the structure actually works vis-a-vis individual countries, individual culture, everything i think that's a big issue and i also do believe because i have heard this from a couple of people, this oil spill thing is actually it just adds another level of uncertainty so what does it mean for oil prices, what does it mean for bp and bp, what does it mean for other oil companies? a level of uncertainty combined with other uncertainty that we have that i think is just -- and the market is very sensitive ri

greece and of itself would not be a big deal because it is a small country, but the fear is that greece goes to spain, goes to portugal, goes to italy, and then it is a real mess. host: a couple of associated press articles just coming over the wire. here's another one. italy approved an initial $7 million loan for greece. greek borrowing costs have hit another record high. the bank of spain says the country is out of recession. guest: it is funny, four of those were very positive news. spain is out of recession. and yet, the greek debt spread, the amount of interest that greece has to pay on its debt increases. you would think the opposite would happen. it is pretty volatile. host: democrats, 202-737-0002. republicans, 202-737-0001. please go ahead and dial in. if you happen to be watching and overseas, we would love to get your reaction to this also, especially if you are in europe. we will be looking for you to call in also. in your paper this morning, the euro hits a 14-month low against the dollar on thursday and the yen surged as investors fled riskier assets over concerns that so

greece cutting, spain, cutting, the u.k. raising taxes to raise revenue. the u.s., well, we just keep spending. the white house making an emergency 23 billion dollar request for states just this week and someone here says, great! keep the spending going. hi everyone, i'm brenda buttner, this is bulls and bears, let's get to it. bulls and bears, tobin smith, eric bolling, pat mccall and talk show house, david goodfriend. we'll tell you who is spending, is it healthy. >> 23 billion dollars that's the latest greatest amount they wanted a 150 billion a couple of weeks ago. the jobs bills are costing us billions and billions and billions more, in the meantime, we're bailing out greece, the eu, 325 billion from the imf. we're already broke, we need to stop spending and do things like cut back like greece or i don't know, maybe cut taxes and create real jobs and not keep spending and no real jobs created. >> well, david, we're on a spending spree a bit. you say, hey, take out the credit card, huh? >> hey, if we're stuck in a rut, which we are, we're trying to get

greece has a gdp the size of connecticut. if connecticut went bust on the state bonds i don't think the u.s. economy should topple nor do i think europe needs to topple because greece or portugal has a problem. >> they're extrapulating to all the euro area. >> 16 of the 27. >> so, if you were an investor, david and john, you know, and you're sitting at home and you're saying, why should i really, not why should i care, but what are the implications for my portfolio? john, you just put your finger on it. you may be investing in are relying on sales and earnings from that part of the world. >> exactly. always that volatility in the marketplace has created when you have expectations or results different from expectations. >> do you act on that? do you sell a coca-cola because they sell a lot in europe? what does an investor do? >> i don't think you sell a coca-cola because they sell coca-cola in europe. >> i didn't think so either. it's one thing to understand the situation. >> so you back away and say the euro is 25% of the wor

now fears are growing that the bailout in greece won't work. that could cause ripple effects across europe and here in the united states. our report tonight from nbc's dawna friesen. >> reporter: they came in their tens of thousands, flooding the streets of central athens. >> only the people pay, and the politicians do nothing. >> reporter: they tried to storm the greek parliament. teargas forced them back as riot police fought running battles, smoke drifted over the acropolis from fire-bombed buildings and vehicles. inside this bank, 17 employees managed to escape, but three, including a pregnant woman, were overcome by smoke. the deaths have sparked shock and outrage. a demonstration is one thing, said the greek prime minister. murder is quite another. all this chaos is because greeks are furious at austerity measures imposed on them as part of a $141 million bailout package. the international monetary fund and european countries will hand over the cash, but only if greece makes massive cuts to public salaries and pensions and increases taxes

and now it is not great. >> my parents just came back from greece. they said the protesting was going on, but didn't think the tourism was that badly hurt. generation after generation the greeks were spoiled. they were getting pensions and 14-month salaries, and they were living the high life. the people affected is this generation. >>> you are in a lot of greek practices. >> you have seen my fine china. those are replicas of originals. >> i have been told the cast of mama-mia" is still standing. but not "a bel -- abba." >> that would make sense. >> it is a depressing, depressing scene. >> and now there is resistance. >> you know when i hate resistance? when i am doing my greek practices. >> now that you are coming in saying you have to do all these things. >> and they have to be thankful. >> you greek people. >> say adios to any into. that's french for goodbye. the company that sin daw indicates the annie comic strip announced it would be no more after an 85-year run. here is a picture of the strip. the iconic red-headed orphan is known for wearing

these live pictures from greece a march by 30,000 private and public sector workers turning violent. throwing petrol bombs and pelting police with missiles. after they set fire to the bank in theter of athens three people burntd to death. police beating off attempts to stall parliament as inside the ruling socialist party and hiking the sales tax to 23% in return for that eu and imf cash. angela murkler telling them it was a fault in the road and this was nothing less than the future of europe at stake. that other countries across the euro zone will be hit unless the rescue succeeds on the streets of greece. the risk of contagion hammered home this morning by moody's announcing the likelihood it will downgrade portugal's credit market is raising. rapidly becoming a one-way bet for many and the cost of borrowing across the euro zone is beginning to rise, an indication of the growing crisis that slowly seems to be throughout europe. >> these are militant union. they're not just workers. they're militant unions. the question i have, and i know the answer. where is margaret thatcher and

. >>> real chaos in greece. angry crowds, protests and coming austerity measures, several people die when a bank is firebombed and the gulf oil spill. the smallest of three leaks now capped. crews getting ready to lower a giant containment dome over the gushing wellhead. good morning, everyone. i'm tony harris. those stories and your comments right here, right now in the cnn "newsroom." -- captions by vitac -- www.vitac.com >>> we are learning more details about the suspect in the times square attempted bombing. we know what he said to authorities at the moment he was arrested, but questions linger about the motive behind the terrorist plot. what caused faisal shahzad to abandon what seemed like the american dream and allegedly attempt an attack in the heart of america's largest city. deborah feyerick in just a moment where faisal shahzad once lived and she's available to us now. deb, first of all, this is a man who knew police were on to him, correct? >> reporter: oh, he definitely did. we're talking to a lot o

where do greece's problems come from?uest: there is a lot of controversy over exactly how big a drain illegal aliens are on the economy. that is certainly a component of what is going on. it is complex. it is not at all certain. if you look at the components of the california budget and where the spending goes, there is not a lot there that you can attribute directly to illegal immigration. to say that we have a $20 billion gap, you may be able to come up with to save $1 billion or $2 billion is because of them. the higher education system, which is not an immigration problem, the prison system, which is not a huge immigration problem because most of the illegal aliens one of going into federal prisons, and the welfare system. there is clearly some overlap there. a lot of you have probably heard the infamous statistics about co% of the population of california has about one-third of the welfare recipients in the nation. we have a very generous welfare system and we're not good and filtering of people who should not be eli

the dow jones just closed down 58.5, about 0.5%, and concern is growing that greece would not be the only european country hit by a debt crisis. the credit ratings agency moody's has put portugal's bond rating on review. portuguese stocks and bonds have slumped. shares in madrid fell more than 2% on top of tuesday's 5% slump. spain is seen as vulnerable, still in recession. european union officials must point out that spain and portugal have absolutely nothing to do with grease. with me in the studio is our business correspondent. help us understand what is happening on the market. is this effectively concluding that greece is already a basket case, that it cannot do what it has agreed to do, and sooner or later with the fall? if so, what are the implications about it? >> what we're seeing at the moment is fears are driving investors. there is no doubt about that. they're concerned firstly that the bailout has taken too long to come about, and there are still hurdles to be gone through before it is actually enacted, greece is not yet have the money. there are also concerns that if an

>> i'm worried about greece because it shows, just last week with the stock market reaction to greece, perhaps portugal, perhaps spain, it shows that we are in a global economy and there's concern about what would happen in europe in general if these three countries or others start having these difficulties. i don't think it's going to bring us down for any long period of time. period of time. we have our own resilience. and it's starting to show coming back our way. as far as the oil spill is concerned, i think it's a valid issue in terms of the actual impact on the states and the businesses in those states. i think it's a valid issue in terms of energy in the future, terms of energy in the future, how much do we want to rely on offshore and deep water drilling, and what kind of precautions and safety do we have. but i don't think that this spill in and of itself is going to interrupt energy supplies like a war in the middle east, for example. and i don't think it's going to have a long-term negative impact on the overall nation nalcomme. >> do you think as the bp manages this spill,

greece can receive an international bail out >> the german parliament has more to talk about. more charges for the citizen in the tally band. court documents show this as trying to miss and getting training in pakistan. >> he made his home in connecticut. he came from pakistan and made his home here last year. >> they had little picnics in the backyard. the wife looked happy. >> the suspect returned to connecticut in february after spending five months in pakistan. he's believed to have paid cash for the path finder that was found in time square on saturday. after the arrest, he admitted he had tried detonate a bomb and that he recently received bomb making training in pakistan in a region identified with the taliban. was this an ibter national plot emritz airlines failed to spot his name. authorities deny he was close to escaping. jo they had the authority if the flight had take ebb off to order to flight to turn around and come back. along with dublin and the south. the king has made a rare public appearance leaving to attend celebration that's mark the 60th anniversary the

. >> grease-- greece is playing a big role.didn't think they would bump us so much. >> reporter: we get rescue package after rescue package and the market yesterday was signaling the first package may not quite be enough. the european union came out again and reiterated they think it will be enough to keep them going for a couple of years. the big fear there is not just greece and the people or the banks that hold the debt but that there could be a domino effect. we talked about the piggs before. p-i-g-g-s. as you go along the chain around the mediterranean and then italy in there for good measure. if one goes down, we worry the rest will fall. >> any big deals? >> we have a preliminary employment report today and the final one on friday. great factory data coming out yesterday. domestic reviews had good news. but clearly the market was concerned yesterday. >> you want to go up to new york with more business news. >> sure, bring it on. >> abc now. >> the money scope report with the oversea stock markets selling off. markets are

and it wasn't just greece. it obviously had a ripple effect on all the other overleveraged economies where the rising cost of capital is going to impact growth, it's going to impact the financing of their countries, and it's going to impact global growth. we have to remember also what's going on in china too. europe is china's biggest trading partner at the same time china internally is trying to slow down. >> book, it's guy. it's just drizzling now. only 50 s&p points off the high. is it time now -- can you still have time to get the umbrella in can you get short this market? is that what you're doing now? >> you do have time, again, because you say we're only 3%. but look at yesterday's rally. it was complete ignorance of what was going on in the world. a lot of u.s. investors think it's all about the u.s. and everything else can take care of itself. but in a globalized world that we're in that is no longer the case. >> peter, i'm in your camp and i think this is a serious problem, but i've been wrong and you

have about these belts in greece?uest: and we are nowhere near the point where a priest is, -- greece is, but we are spending more than we can take in. there would be no one to bail us out, if anything would happen. i think we have not seen the end of this problem, but but we need to emphasize is the need for all countries, including our own, to get our fiscal house in order so that these things do not happen. host: they have a chart looking at the sovereign debt compared to other g & nations. here are the figures from 1950. coming well back to those post- war years in europe. what is the level that that number should be? guest: certainly, lower than where it is. greece is around 120%. there is no magic number. the fact that country were able to pay down that more time debt, you can grow your way out of it -- that is what we did in world war ii. but one of the problems now is europe is not growing. when the lenders to the program getting worse, they back away, and you get kind of into a debt spiral where your costs go

first in terms of greece, they still rate, you know, greece, yes, close to junk. but in terms of spain, let me make that point, a aaa type of security. and here's spain with a 20% unemployment rate, 10% deaf silt. spain having defaulted 13 times in the last 200 years. you know, let's question their ability to react quickly. >> now, here's my question. so you're pimco and you have a whole fleet of analysts who are out there looking at this. they laugh, right? you made your trade on spain way ahead of the rating agencies, to your point, right? 20% unemployment, deficit of 10%. 13 times defaulting in the past 200 years. so you obviously traded ahead of the rating agencies. i want to know who the dumb money is. who is it that waits until moody's and s&p has made their call and then follows? >> well, to a considerable extent, i think it's those institutions that are forced to wait. to the extent that a company, or a country is rated at a certain level, insurance companies, banks, you know, they're required to dispose of them, or not allowed to hold them. another good e

one is the direction like a country of greece. a public model heavy on onerous regulations, higher taxes, and political obligations in this town. in turn, weekend return back to that land of opportunity and freedom that most people in america can say that their ancestors came here for. that is what we should be about. host: linda. minneapolis. caller: i hope you can answer my question without any talking points. i have two questions. does your wife worked for bank of america? guest: no, she does not. caller: did you vote for the -- against financial reform when it came through the house? guest: yes, i did. caller: my final question is, ron paul, he was the republican candidate in kentucky. he is against the civil rights act, he is against education. guest: i am not familiar with his position on those issues. host: he said last night that he supports many aspects of the civil-rights act when it comes to the government, but has concerns about business is being able to set their own rules and standards. guest: not being familiar with

greece is one under $45 billion. that is probably -- greece is $145 billion.we spend more than that in this country. one has to keep this in perspective. host: what is in the austerity package? the past but there were protests to the government. guest: i doubt the government would fall as quickly. they were just elected. it is more of a right-wing government. there are many top things. there are deep cuts, 25% cuts in their version of social security. there are similar cuts since door for people who work for the government and a large amount of cuts for firemen, policeman, social workers, a teachers and others. there is a variety of different measures to open up the greek economy to greater competition. i don't really understand it. many companies that have been protected will have a tougher time, to and maybe go out of business and will cut salaries. they are living way above their means. when the bill comes due, that is hard. mullis host: the, republican, buffalo, good morning. caller: thank you for answering these questions. this is a serious conversation t

tamron will have the latest on greece and tomorrow as we say the commander from u.s.. this is "andrea mitchell reports" only on msnbc. ♪ [ pop ] [ man ] ♪ just another perfect day ♪ i think i'll walk this way with the trees ♪ ♪ i do sing [ man announcing ] the hybrid for everyone is here. the insight-- designed and priced for us all. from honda. and i'm joni. we've been best friends since we were two. we've always been alike. we even both have osteoporosis. but we're active, especially when we vacation. so when i heard about reclast, the only once-a-year iv osteoporosis treatment, i called joni. my doctor said reclast helps re-strengthen our bones to help make them resistant to fracture and reclast is approved to help protect from fracture in more places: hips, spine, even other bones. (announcer) you should not take reclast if you're on zometa, have low blood calcium, kidney problems. or you're pregnant, plan to become pregnant or nursing. take calcium and vitamin d daily. tell your doctor if you develop severe muscle, bone or joint pain or if you have dental problem

third story is greece. we are not only bailing ourselves out but we're trying to bail europe, as well. the imf is giving one trillion dollars to greece. the u.s. contributes 17% of the imf funds so how much are we on the hook? 54 bye. that is more than the xh expects for the budget of our commerce department, our labor department our interior, the treasury. $48 billion. you have to be kidding me. that is all combined for this year. the original bailout was $787 billion. that was for us. then it was speculated to be $1.5 trillion and then it was 3 trillion. they think our bailout of us could be upwards of 20 trillion dollars. they are just charging it. what are the final answers here. where are we headed? what are we doing. we are doing this globally. what happeneda we gave the money to greece? the market crashed. now i get up this morning and i read the credit default swaps are at a high. do you know what it is? that is when they take all of the credit and bundle it together and then they bet -- it's like g