>> one only has to look good what is happening in greece or spain, much less portugal or ireland -- to look at what is happening in greece or spain, much less portugal or ireland, and they have waited too long, and their ability to solve their own problems as all but to diminish, so as i look to the end of this year, there is no reason to kick the can down the road. we have a serious problem. regardless of what happens with the electorate, we will take care of it. the next two years could be the most consequential we will see in the next 50 or 60 years, because these problems are not going to go away, and we cannot and will our way out of the problem. there are three components we need to embark on if we are serious about solving this problem. to get economic growth we have to reform our taxes, lower the rates, make it fairer for everyone, and we need to get a regulatory juggernaut off the backs of the private-sector. are want clean air, but the regulatory nightmare is gearing -- is schering every employer in the country, so if we get real tax reform, we have got to do something about

bigger than "james madison and the making of america" -- bigger than greece or spain or portugal. we know from reading the former chancellor's word that he was going to put it up too. >> you may be aware this is adult learning week and inspiration or read and to support the energy worker. can i invite the prime minister to say to themselves how this works for the rest of the country to benefit people? >> the hon. lady is right to raise this issue. it is a tragedy that there are too many adults who do not have proper literacy and reading skills because of not being taught properly at school. it is vital we put that through the initiative she recommends but we have got to do better to make sure no child is left behind. renown no -- no child gets behind the scheme, we must make sure it is available for every child in every school. >> the police service in northern ireland has reviewed that between 1960, and 2005 it kept body parts and tissue samples and 64 cases of suspicious deaths without notifying families, many in my constituency and other police forces in england to see them. th

bigger than "james madison and the making of america" -- bigger than greece or spain or portugal. we know from reading the former chancellor's word that he was going to put it up too. >> you may be aware this is adult learning week and inspiration or read and to support the energy worker. can i invite the prime minister to say to themselves how this works for the rest of the country to benefit people? >> the hon. lady is right to raise this issue. it is a tragedy that there are too many adults who do not have proper literacy and reading skills because of not being taught properly at school. it is vital we put that through the initiative she recommends but we have got to do better to make sure no child is left behind. renown no -- no child gets behind the scheme, we must make sure it is available for every child in every school. >> the police service in northern ireland has reviewed that between 1960, and 2005 it kept body parts and tissue samples and 64 cases of suspicious deaths without notifying families, many in my constituency and other police forces in england to see them. th

ireland where the process obviously is ation of losses has been pretty aggressive compared to say greece or spain or portugal the banking system here is continues the release of the data which is showing the year on year the losses accumulate outside of those losses which were imposed under the regulatory for example the u.s. so when you look at mortgage markets those markets are now under severe strain and severe pressure those losses are going to materialize in the next couple of years and the banks are holding these provisions because they cannot simply lend the other reason is that during the crisis during the buildup to the crisis across europe there has been a huge imbalance built on the on the front and side of the banking sector operations in particular the short term interbank fund creates a very significant maturity mismatch risks accumulations banks' balance sheets across the entire euro zone sector but also in particularly in weak economies and once again the banks are scared that interbank lending markets will start drying up again and as a result of that they will have to face that

so you have to fall back on stocks that are immunized against the troubles of greece or spain or italy they're not doing well, because everyone is so excited. we need stocks that won't be destroyed by the inevitable lack of a serious solution, stocks that can't be harmed by the potential breakup of the eurozone, which every day looks more and more like the danger zone. in short, you need stocks that give you what i've been calling domestic security, ones that provide for a common stock defense and promote your general welfare, to get all preamble about it. on a bad day, we know europe can crush our entire market. yeah, we had a good day today. here is what happens on a typical day. people get scared. they sell or short s&p 500 futures. that in turn knocks down every single stock in the s&p regardless of whether or not it deserves to go lower. even the stocks of companies with no international exposure whatsoever, and therefore that's the opportunity. after that initial sell-off, some stocks spring back a lot harder and faster than others. and they tend to be the ones with pure domestic

today we have a bit of a respid in terms of greece or spain and interestingly, other traders that i talked to are much more bearish than our guests. they are saying only pull back 4%. this is a serious situation. we haven't even corrected what stocks have done so far this year. >> exactly. i think what you're going to see is a lot of meandering about over the summer and then when they see that we are not in a double dip recession, at least in the united states, emerging markets, we should be able to get emerging market valuation. >> let's talk about rock bottom numbers. i wonder if people are taking money from the sidelines and trying to find the best allocation in fixed income. rick santelli, you say it's not substantial. what's going to be the catalyst from this week into next week? >> well, i think fixed income is destined to remain very close to current levels. i think we're going to spend very little time at a 170 yield but a the lo of time within 20 basis points of a 2% yield why? because the good sovereigns, best hedge against all of the anxiety in the world, those issues aren't the

. >> sitting by our televisions and watching the riots in greece or spain and italy and saying it can't happen here in glorious peaceful america. it absolutely can happen there have r. a lot of young people especially who don't have jobs. very angry, don't have nothing better to do like to riot. rioting is fun for them. they can be provoked into doing it at a drop of the hat. >> bill: what do you do because it sin evident tillable that if mitt romney wins the election in november i expect that there is going to be a huge cut in government spending. this is going to come very very quickly. particularly in the republics control the senate and the house. it's going to be totally reorganized. romney is going to have to do it. do you expect this to come very very quickly? >> i don't expect romney to win. i would like him to win. i will vote for him. but i think obama is a far more formidable campaigner. contrary to your friend and mine dick morris obama will swamp him in terms of money raising. if romney does win i hope he does. there will be cut backs in government spending. people will be

. >> sitting by our televisions and watching the riots in greece or spain and italy and saying it can'tious peaceful america. it absolutely can happen there have r. a lot of young people especially who don't have jobs. very angry, don't have nothing better to do like to riot. rioting is fun for them. they can be provoked into doing it at a drop of the hat. >> bill: what do you do because it sin evident tillable that if mitt romney wins the election in november i expect that there is going to be a huge cut in government spending. this is going to come very very quickly. particularly in the republics control the senate and the house. it's going to be totally reorganized. romney is going to have to do it. do you expect this to come very very quickly? >> i don't expect romney to win. i would like him to win. i will vote for him. but i think obama is a far more formidable campaigner. contrary to your friend and mine dick morris obama will swamp him in terms of money raising. if romney does win i hope he does. there will be cut backs in government spending. people will be whipped up by a fren

whether it's back in greece or in spain or next in portugal or wherever. i think given the structure of the eurozone as it is, they will have a hard time getting out for it. for the most part that's only bad news for the u.s. economy. it is clear they are a in a deep recession over there. they have credit crunch a lot like what we had in 2008-2009 so they aren't going to be buying as much exports from the u.s. it is also clearly having some uncertainty and freaking people out a little bit in the markets here. one thing we don't know is, as things get hairier over there, does that lead to flight to safety and in a weird way have at least some positive impact on insurance tungss in t institutions in the u.s. or does it just freak people out in general and do they start pulling their money out from everywhere? >> i'm struck by the fact that for so long all of these countries were defending the euro, we're unified, we're going to hold this together. now greece is saying we're not following this austerity rule. you've got france we're going do our own thing. we

america's per-capital national debt already significantly outpaces that of greece or spain. so as we watch them spiral further into crisis, we should be jolted into action by the very suggestion that our debt is equally as alarming. yet, we are unable to pass a basic budget resolution to get our spending in check, and that constitutes a lack of leadership. now, as i said, i have many colleagues here today who can talk about a better approach. i'd like to start today with senator johnny isakson. senator isakson has spent his career working on budget issues. senator isakson, what's the impact of no budget resolution for three years, and is there a better way? is there a better way to approach the budgeting process than what we are dealing with now? mr. isakson: well, i thank the senator from nebraska for the question and for his service and as a former governor of the state of nebraska, he knows full well the responsibility we have in terms of budgets, but i'll tell you what the impact of no budget for three years is. no discipline for three years. and the result of no discipl

and countries such as greece or portugal or spain where the debt crisis was a really big and important issue. francois hollande says, look, not so fast. my approach is a little bit different. yes, i agree we need spending cuts, but i also believe there should be a growth plan included in any agreement with germany in the eurozone. why does that matter to americans? that's because every time there are real fears that there might be a collapse from one of the governments such as greece, that it won't be able to pay back its debts, that impacts u.s. stock prices directly. so that's one of the things i think americans will be interested in in the coming weeks and months, and that is how will francois hollande approach this eurozone debt crisis, will markets be rattled or concerned because he says he doesn't agree that spending cuts alone are enough to solve the problem, fredricka. >> hala, lots of concerns about the ripple effect that you alluded to, impacting the u.s. markets. then there's that relationship that has been built between the white house and sarkozy. now this white house, six

there is nobody to force greece or ireland or spain to drink that bitter medicine. >> evan, france has a new president who led the socialist party for years. is he for us or against us? >> he is a master of modern western democracies where you don't set up your problems and postpone the day of reckoning. the question is when is the euro going to collapse? where is france going to be on that? it is like watching a car play out in slow-motion. >> what will it do to us, nina? >> it really collapses, it could hurt us severely and results in obama beinot being reelected. you do have to moderate austerity with some idea of how people live. that is what has been missing. >> elites in europe and the united states, present company excluded, are 100% for austerity. austerity has been found to be politically unsustainable in every election in europe, left or right. it is the prescription that has led to growing unemployment and social dislocation. i would say that that would be the lesson for this country, and what the republicans did in the house this week was absolutely stupid as far as their s

>> well, he's responding to the constant comparison of california to greece or spain, and he's right. once you give an entitlement, how do you take it back? voters won't stand for it. the problem is that governor brown is not talking about entitlement reform. all he's talking about is cuts. if you have a reform of entitlements, you've got a plan going forward to bring it into line. that's what california needs, it's what europe needs, it's what america needs. martha: yeah, well, that's what paul ryan would argue, he's trying to put in place, but it's pretty tough sledding. as governor brown makes a point, once you give it to people, it's tough to have it taken away. stuart, thank you very much, we'll see you on the business network in a little while. bill i think he said okay. a lot of people learning that lesson. not just here but everywhere right now. >>> california is often a trend setter and here's why, it's the largest economy in the u.s., ninth largest in the world. california is 11 percent unemployment rate, the third highest in america, well above the national average. speakin

he thinks portugal will sneak through and it's not a greece or a spain. a lost interesting thoughts. >> long portuguese debt. that's an interesting trade. in terms of yahoo, i wonder if you think it would gain traction. >> i have a question for you. is there a deal to be had between the boards? i don't think that it's in the board's interest to have this fighting go on. >> i think the deal that they put on the table is replace four of the directors with me and three of my associates, have scott thompson resign and replace him with the global head of media at least on an interim basis while a proper search is conducted. today he said he wants patty hart who ran the search to give back the $15,000 remuneration he got for fining thompson and he suggests a new search for those who will do it for free. it seems like an ultimatum and you have to wonder whether or not we answered this. i don't know if you have more traction on this on whether they are willing to press for the change and they have the 5 plus percent change for yahoo making the demands. >> that's

it's a different construct to ask them to say the same thing about greece or spain or italy.eak the same language. >> we're surrounded by some mad professors down here. >> you want to know what branding looks like. it's really a pharmaceutical company well-known here. and they're doing something today. peter, you look like the mad professor today. >> i am the mad professor. >> congratulations, guys. everybody is wearing these mad scientist lab coats. i am so glad i came back for this. let's call it the euro summer part ii? new highs in the dollar index. we're here for a low in the year and copper disappointing. yields on the spanish tenure at 6.7%. two things strike my eye. number one, did you see the greek polls here? which poll do you want? there's a poll out that says the pro-bail out forces are winning. and then there's another poll out that says the anti-bail-out forces are winning. so whatever poll you want, you can have it. >> one can be ahead and still not be able to form a coalition. >> the hope is the party will be denied a governing majority. there's an extra littl

your opinion, some kind of bust over there, whether it's greece related or spain related.hen they watch what's happening, and you're an economics person, when they watch, what's the thing that could really cause a clattering bad effect. in our economy. between now and november. >> the euro crisis is a major problem. it will have a ripple effect on markets. it won't matter what happens here because it's completely out of their control. this is something they're watching very carefully. it is not anything they can do anything about. it's a big x factor. obviously, there are other global concerns that could be big x factors here, too, but anything that happens with the economy really scares the obama folks. it's not number one, it's not number two, but it really could kill us. >> it could kill us by the second or third quarter. >> absolutely. >> chris, and you say, and i found this brilliant. uptake in the romney prospect because he picks a wonderful, exuberant pick of vp. something magical in their campaign. i'm thrilled at this prospect. i didn't know it was possible. >> ch

. >> maybe we will learn from greece or when spain blows up or japan or california, or illinois. but we are not taking the steps now -- >> greta: do you like ron paul? >> i do. >> greta: he's the man you support for president. >> gary johnson, ron paul, absolutely. >> greta: he's never going to win, you agree? >> next week, he's going to catch on. i think the ideas of limited government make sense that hadt has to catch on sometime. today's friday, so i have to pick next week. >> greta: do you think the republicans are telling the truth when they say they are for limited government? >> i really want to believe it. but i get frustrated with mitt romney. he says, i'm going to cut the workforce by 10% -- by atrittion. >> greta: you government? >> he said that. great burks why does he add by atrittion? jack welch, when he ran g.e. as a big growth company, rather than now they feed off the government, he says, it's the job of a leader to identify the bottom 10%, give them a chance to improve, get rid of them if they don't and bring in new blood. if you get rid of people by atrittion,

anyone that's looked at a balance sheet in greece or spain understands there's a lot of bricks tied toha coombs is kind enough to join us. you look wonderful as always. >> thank you. so excited to actually be here on top. it's interesting. this market in a sense, a lot of folks are talking about the cognitive dissonance here. over the last few days, we've been watching this european close. if you take a look at the s&p over the week, we've come off. one of the things folks are watching today is to see whether or not we'll rally. we already started higher in the morning. are we not worried about greece? are we not worried about spain? we still are, and yet today we're rallying. a lot of folks are a little concerned about that. what's very interesting is, when we look at the last three years in may, we are now in the third act of this greek drama. we end up selling off in may when we are worried they're not going to be able to make their debt periods. wasn't quite as bad last year. we had another selloff, of course, with our june, july swoon really after that concern with the debt crisis

you are not permitted to talk about greece, spain, italy, or europe. that's gone. in that event, they do not exist, would you be a bull or bear in stocks? >> well, if he's right about the jobs numbers, maybe i'm bullish, but i don't think he is right about the jobs number. all the data, you look at the adp numbers, they point to a soft jobs figure. granted consumers may have a little more money in their pockets from lower gas prices, but gasoline and food prices are still higher than they were a year ago. and if we look at consumer spending, which is stagnating, consumer incomes, which have stagna stagnated, and we see consumers are dipping into savings, this can't last, we have to -- >> so you're a bear on this story? excludeing the eurozone you would be a bear, is that fair? >> not really. because excludeing europe if we can do that, then stocks are still more attractive than other asset classes. but i wouldn't be buying them tomorrow. i'd wait for this correction to play out and buy them in the fall. >> you'd wait. what about this -- i see two sides to this. you

more levered than greece, spain or italy. acan i say about hewlett-packard?eah, report wednesday and the bottom crawlers are out in full force once again in part because of reports about a major restructuring we got earlier in the week. i think new management is struggling with the same issues dell is being hurt by. and i've got to tell you, they also have a faltering consulting business. given the furious competition of the likes of accenture and sap. i am not going there with hewlett-packard. what's my worry about the crop of dotcoms coming out? pandora. maybe they're more focused on profitability but it's a bust and it will be a bust until it puts together several good quarters. pph, we think the ceo, we believe anyone can navigate troubled european waters it's this one. might best be played with deep in the money calls to cut off downside and give you upside but only after ralph lauren reports, not before. thursday's costco day. we already missed jim senegal as new ceo, craig gellinik, don't know the guy. remember, costco put through membership dues incre

specifically spain, greece, italy or portugal? >> i don't know. is it an opportunity or snn. >> one of the positives for the market, today, adam, is the chinese premier, their strategy going forward is not to try to dampen inflation expectations, they want it puto spur growth. >> that's a very easy way for china to talk its book. but from the global perspective, if you look at markets and if you look at the risk on theme versus risk off theme, you have to ask yourself a simple question. are issues in europe resolved in the answer is no. in the g 8 summit, you have european summit coming up this week. again, if there was a solution to this problem, we would have seen it already. the reality of the situation is simple. nobody in the entire world has a solution that works. and that's why markets are under pressure for the past six weeks. >> all right. thank you all. appreciate it. we're going to get bob's mic worked out and bring him into the conversation wz pell. kayla, we will check back with you as soon as it warrants as well. >>> it is not all ab

there are enough or and what are they going to do they're going to come out with what seventeen different proposals one from germany one from france one from greece one from spain they all want something done or actually maybe there's about eight different plans and there are if you write them out but the thing as germany and finland and a number of the northern european states are simply not going to vote for these proposals that are under discussion so why debate what can happen why not debate what needs to happen i think the best scenario for a breakup of the euro zone is for germany and some of the northern countries to leave and further countries then want to stay in it can stay in it i think will be interesting if we do that lauren what does france do then what if france is now backstopping instead of germany one of france's backstopping alone spain and greece does a lot on changes of benyon here of about what he wants i don't know but at least if germany italy germany can have a credible currency immediately right off the bat. with italy and for. rance remaining in the euro zone and there will at least be a couple of countries there that are you know com