mr. varoufakis: hang on a second. our government, that is the second question, these days i'm told that liquidity is drying up in greece and it is. but you know what? there is a reason why it is drying up. the reason is that the previous government in its infinite wisdom decide to try to retain power by starting a bank run. saying in no uncertain terms, if we win, the banks will be shut the next day. how irresponsible is that for a sitting government when the opinion polls clearly showing we're going to win to start a bank run in order to survive. at very same time you had voices from within the system, the euro system, system of european central banks, warning people if we win there would be liquidity restrictions. then the moment we won, the liquidity restrictions started happening. on the 4th of february, the day after i visited london and inspired some enthusiasm in investors mind to the extend that the stock exchange went up 11% next day, ecb removed waiver and started imposing stricter restrictions on the commer

mr. varoufakis' comments in riga.: lawyers for joe harz and i have -- lawyers for dzhokar tsarnaev will ask jurors to spare his life. loretta lynch will be the first black female attorney general. her aides asay she wants to find common ground and improve cooperation between communities and law enforcement. apple stores will not have apple watches. those ordered today might not be shipped until july. tom: the drummer from riga -- th e drama from riga. leaders speak. dijsselbloem regling. shannon o'neil is here. we tilted to cuba. olivia sterns will lead us off with the mayor of athens greece. really looking forward to that. i want to ask about rem. that's a joke. call it the evercore isi wall of worry. the dollar is too strong, capex is too weak, christine lagarde's new mediocre. janet yellen has to get to september or december and miracles will happen. ed hyman is the founder of isi and chart paragraph. this is what janet yellen reads every morning. this is from my childhood. this is classic -- do you still do this w

mr. varoufakis free if we learned anything is that member of -- mr. roufakis can sometimes be contradicted if not contradicted undercut by mr. tsipras. a lot of the finance ministers when they meet in brussels they prefer to deal with mr. tsipras because they think yes the final word. -- they think he has the final word. jonathan: let's bring in stephanie flanders. stephanie, great to have you with us. my colleague compared this to getting wet when compared in the rain. prepared for default. it's kind of obvious. stephanie flanders: i am surprised that the markets moved print it would be bizarre if they were not making or thinking about it. i'm sure other people should at least be thinking about it. a point i find interesting is that when the new election to happen in in greece, a spike of concern around greece leaving the euro. we are still talking about that. the mood in general is it is less likely. i do not think there are even further away from a default or exit since the day after the election. somehow we decided it will not happen. jonathan: the

mr. varoufakis received a hammering. it was quite tense at several moments. coming out of the meeting, mr. varoufakis said they had made some progress and had constructive talks. he was about the only finance minister to make. throughout, there was a consistent line that greece needed to do more, more quickly, and implement reforms because time is running short. back to you. mark: the senate is expected to a proven oversight bill that would curb president obama's discretion to waive or terminate sanctions on iran. what impact could this legislation have on talks to reach a final nuclear deal with the run? -- with iran? >> this is a big deal and the timing is interesting because senator bob corker had pledged early next week he will be bringing to the floor his bill which passed through committee easily. this is the iran nuclear agreement oversight bill. that would give congress the right to give a thumbs up or down on the ultimate deal the obama administration and five other powers may make with iran by the end of june. the timing is also interesting because

mr. varoufakis had a meeting with treasury department officials and in some ways he has allies in the u.s. administration because they would like to see less austerity imposed. varoufakis is saying over the weekend, april 24 is the new date. that is when euro finance ministers meet in rego for a meeting. that is when he was to see some kind of deal. it includes a primary surplus of 1.5%, new investments from the european surplus bank and the creation of a bad bank with nonperforming loans and crucially, something to have growth debt -- overall you mentioned 450 million on thursday and over the next six months they have 20 billion they will have to pay or rollover in addition to running the functioning's of the greek state. jon: busy month. while all of this is going on greece seems to have come up with a figure for world war ii war reparations. you have tsipras headed to russia. they don't have a list of reforms they have agreed on with creditors. those curveballs, do they mean that much to eurozone creditors? hans: the visit to moscow is being taken with -- not a grain of salt but with a

mr. varoufakis to -- how does he put his gloss on? had, no matter how long, we have had some short ones that ended faster than expected. varoufakis comes out and professes his commitment to the european project, to the common currency to greece being a good partner. listen to see whether or not he preets that after in the bloomberg copy that is moving. he took that hammering. guy, francine, you never give me a hammering. it is always a gentle -- never a hammering. guy? francine: nothing physical. anyway. just verbal abuse. that's what i get. guy: i get a quick on the shin turned desk. francine: hans will keep us up to date with any new developments in riga. that's it for "the pulse." for our u.s. viewers "surveillance" is up next. for our u.k. viewers i will be back with our politics show. she never kicks me under the desk. ♪ >> this is bloomberg "surveillance." tom: the mystery is how much cash does greece have left? not enough. finance ministers gather in riga latvia as greek bonds find a bid. janet yellen and monetary distortion. ed

mr. varoufakis, who was conspicuously quiet and had no comment when he walked past the cameras earlier. jonathan: this has been dominated by a problem that was very much greases problem. if we had a problem it is that you can have a default without an and said. is that gaining more traction? -- without an exit. >> bloomberg did pulling of economists. economists think there is a 40% probability you could have i missed payment, but it is a 30% probability on whether or not that translates into a default. the difference comes from a question of liquidity. no one knows how long greece can go. will they be able to make those payments to the imf? another thing is when you look at will greece impose capital controls, a broad range. the median answer, 50% probability that capital controls will come to greece. >> no one really knows, do they? we are joined by the head of global asset allocation at barclays. great to have you with us. i see no one knows because a couple weeks ago we were told it really matters. then, it is it doesn't really matter. what is your take on the meeting? what's we don'

mr. varoufakis: otherwise we would have smoke coming out of the chimney. it is our view that we have no right to achieve this agreement. emily: in the meantime, a economists say that a greek default does not necessarily mean that the country would have to leave the euro. samsung has continued production of its curved displays after seeing strong sales for the galaxy edge. it will double its monthly output of curved screens to 5 million. it had not planned on starting production at the factory until june. now to our leads -- the times are changing for apple as the company's first entirely new product in five years, the apple watch, goes on sale today. customers who preorder the device may find the watch in their mailbox already. but if you did not preorder it, stores are not selling them yet due to a limited inventory and only a handful of luxury retailers will be showing and selling the watches are it with the debut, another battle to create the best possible apps for the devices -- companies including twitter, uber, out with apps already. bloomberg has a

mr. varoufakis.ong-term, it will make the prospect or likelihood of a third bailout for greece which would have to go through all 19 parliaments that are members of the eurozone that much more difficult. finland is almost of the right of germany when it comes to pushing for austerity for greece. these election results will move feeling to further to the right and further down the austerity road. jonathan: hans nichols. let's bring in our reporter to the conversation. if we get an election and they win it again, what changes? what happens? report of a be much more clearer. we will have hard talks. that reporter: it will be much clearer. we are moving into a euro environment or we are moving away from that pro-europe or a referendum and i think it will need much clearer where we are going. jonathan: what breaks of the deadlock -- the politics or elections, referendum coffers running to drive -- running dry, or from the banking sector? ramin nakisa i think it will be deposit light. the banks see collaps

mr. varoufakis came out and said he thought there had been progress.s about the only person making those claims. uniformly the finance ministers were disappointed, frustrated and a little bit worried. matt: i've heard this kind of thing before. a buddy of mine owns greek debt. he agrees with yanis varoufakis' on theory but said he was shocked when he went to athens and saw that severus is not doing the actual work a bit like a student who is brilliant but it does not hand in a paper. is that a fair characterization? hans: the greeks know they have until july 26 to make a deal. they are not feeling the pressure as much. there's another payment to the imf coming up on the 12th of may. they could fall in arrears to the ims and it would not be as bad for them as their marketable debt. matt: it does not seem like the smartest thing to do. hans: i do not think pleasing to finance ministers and making them happy is at the top list of things to do for varofuakis. scarlet: varoufakis may be under pressure from his european colleagues, but at home, how is it lay

mr. varoufakis said they had made some progress, they had constructive talks.e was the only finance minister to make those comments. time is running short. back to you. alix: hans nichols reporting from riga latvia. i'm joined by the chairman and ceo of greylock capital, which owns greek debt. what are you doing with that debt right now? >> it's incredibly cheap. we are looking at yields of 13% compared to the other opportunities in the market is pretty attractive if you don't see there will be a default in the private sector bonds, which is almost impossible. my reaction to that is amusing that they spent whole imf meetings issuing statements to dampen expectations around this meeting in latvia, and then they turn around and say they are disappointed in the content. we knew there wasn't going to be any content, and probably what came to the surface here is some of the personal tension. it doesn't take a lot to make some of these finance ministers look drab. yanis varoufakis certainly does that. he is an academic coming into a politician's finance minister encl

mr. varoufakis of greece in the last seven or eight days.cy for the leadership of greece? alan: greece is playing a dangerous game. they don't have much bargaining power. the situation is not sustainable where they are. yet the greek people seem committed to the euro. not clear how this gets resolved. if you would have asked me four or five years ago i would say greece would be out of the eurozone by now. tom: what people do not know about princeton is you have a national resource, the author of "the art of strategy," princeton owns game theory. what is the game theory you spoke to varoufakis about? alan: game theory was invented at princeton but it has spread. it is not clear they are playing a strategy that will work, making threats against germany is going to discourage investment in greece. i think the current government has a bit to learn, they are not ready for prime time. tom: bill gross, we are ready for you on jobs day. let's talk about the game theory of bond investing, note investing and re in -- repo investing in europe. what is

mr. varoufakis for his very excellent speech i would say. i want to say two things. i want to introduce david wessel a partner and friend here today on the panel. he joins brookings about a year and a half ago. he was at "the wall street journal" and most recently in economics editor. he is the author of two "new york times" bestsellers 2009 and 2012 in said we trust ben bernanke swore in the great panic published in 2009 in red ink come inside the high-stakes politics of the federal budget 2012. he shared two pulitzer prizes won for the "boston globe" series of the persistence of racism in boston and that was 1984 and in 2003 for stories on corporate scandals so i'm glad that david is here and i'm also very glad that you are here to make this possible. thank you very much. now we will have a discussion and we all at or tuna. i will let david asked the first question. >> thank you for your very clear remarks. to an outsider it seems as if there is very little overlap between the policies that fall within your cerese a mandate and the ones on which the imf and the eur

mr. varoufakis may be a hurdle in the path to compromise or even a liability for the greek government.fficult for the greek prime minister to cut him loose, as this will be seen as a concession to creditors' demands. francine: interesting. thank you so much. guy: let's stay on greece. let's get the view from berlin. joining us now is the former chairman of germany's budget committee. and an mp. good morning to you. thank you for taking the time. do you think the problem we have between greece and its creditors is a personality problem or a numbers problem? >> it is both. it is definitely a numbers problem. personality wise, if you see what happened in riga, you could see that the finance ministers and my colleagues in other countries don't want to hear any stories from a professor telling them how the economy should be. that is what we do see right now. there has to be a political solution. you can neither do this by just going through the numbers, nor by being a professor. francine: what is the plan be that we need in place for greece? otto: here comes the big problem. if you have no

mr. varoufakis for the political analysis. would i like to request address this question to policymakers because you are member after government who is starting in january. a coalition of populist party and sereza, we know from our families, from our friends in greece, day after day greeks are waiting an action from this government related to development. so i would like to ask you do you have any proposal any development measure that this government took since january 2015? thank you very much. >> we'll go for gentleman there in the middle. >> thanks very much. assistant professor at johns hopkins next door. i have actually a question for you as a politician. i think many of us actually agree with your economic analysis. d.c. is probably most favorable audience you're going to get. as a politician are you worried that being right is not going to be enough? because the political economy is that realty you're one against 18. in the eurozone. how are the 18 other eurozone countries going to sell concessions they're going to make

mr. noon is var -- yanis varoufakis. i don't know how long he'll serve as finance minister. let's say he'll serve the next six years. in the next six years, his main concern will not be the debt recon struk reconstructuring. it may be a problem in the future decades. today, the greek government has different challenges huge changes. i'd never change my job with him. much better position by far. as long as they are telling the problem is debt restructuring, today, since they have to move in ways that greek economy is becoming a little bit more effective. that greek economy can deliver increasing part of what greek people want to enjoy. and you have to know maybe you can ask how he will explain that the minimum wage increase, by law, is still higher than in some member states. the ratio of people occupied in administration is still -- before the government has hired again, people who have been reduced in the last couple of years. ratio of people occupied in public administration is higher than, i think, every other member state of the yout the eurozone. it is difficult, not to

varoufakis tomorrow. peter cook sat down with leew. mr.greece needs to make a list of changes in policies it is prepared to put in place so it can work with institutions to come to a mutual understanding of a path forward so they can get out of the cycle of being from one crisis to another. the rhetoric was not helpful early on and i send a signal to both the greek government and the institutions, as they are now called, that everyone had to attend down rhetoric and get to the technical work of seeing what policies can be put in place to address this. obviously it would be better if the work had been done six weeks ago and not over the next six weeks. no time to waste. my understanding is the president is going to be speaking to the hellenic celebration day. it is not a bilateral meeting. peter: does the u.s. have economic interest in making sure greece stays within the eurozone? mr. lew: there is no doubt that if this leads to a crisis such as greece leaving the eurozone it would cause an enormous amount of disruption and hardship in gree

mr. ambassador -- not yet. and also personally. and i can't help saying that also welcomed administered yanis varoufakis as a neighbor of the turks okayit is your floor and then we will have a discussion. >> thank you kemal. it's with the deepest gratitude that i wish to thank you for this honor and privilege to addressing such a fine institution at a crucial moment when our government is children and momentous task, that of completely successfully and has human -- this is humanly possible that negotiations with our partners both european and internationally. the reason why i should be focusing on these negotiations is their global significance. nutso because i'm a contagion through the financial circuit that frightened people so frightfully back in 2010 and again in 2012 because the outcome of our negotiations with institutions what influence i believe heavily europe's attitude toward a larger problem located in the five areas of our democracies and within the foundations of our real economies. after all, must we forget that greek that drama of 2010 was the harbinger of much that followed throughout large swaths of europe are indeed