have so the question is whether this crisis can trigger domestic reform in countries like greece or spain or portugal and also perhaps in germany that will alleviate the situation and that's a question to which we don't yet know the answer daniel if i can go to you it's seems to me that as we go down this crisis moral hazard is there the slippery slope is there is that ultimately to save somebody banks or german banks and french banks the state is going. to central bank steps in and just saves the bank there but there's always going to be this temptation to finance ears part to you know bait these countries because a lot of money could be made off of their debt very expensive debt i mean it's just seems to me that no one is allowed to fail that's why this system will ultimately fail because no one is allowed to fall fall apart within it. i think there is certainly vested interest involved and certainly the banks will put pressure on the respective politicians to bail them out when necessary but i think one reason why this discussion i'm talking in general terms not about today in particul

the central bank is the only institution with enough money to rescue the likes of italy or spain, butomeone, or something still has to stand behind the e.c.b. >> >> behind the central bank stands the treasury. and behind the treasury stands the taxpayer. the difficulty that we have in europe or the euro area is that we don't have a euro area taxpayer. so unless we move and having a euro area taxpayer, that means having some elements of a political union. >> the lesson of this crisis seems to be the countries share a currency, they need to share other things as well, including their debt, but for germany, that kind of solidarity comes with strings attached or not at all. >> governments may think oh, i may get into debt because i am going to be bailed out. in this, you can only prevent if you have a fiscal union where either national governments or a new kind of treasury can exert pressure on these governments and say, here is the limit, no more debt. >> from the old style euro to a brand-new one, they're hard at work on the e.c.b.'s new headquarters due to be finished in 2013. the next

whether it is from u.s., canada, or spain, the companies are coming here because they know where thealent is to be found. this is a tech-friendly city that will do everything it can to support technology growth because the real challenge is our future. we're still very strong as a city in tourism from all over the world. we will continue being strong in that because of our natural beauty, the commission of tourism and travel. there is another reason why people are coming to this city. a lot of other cities have build them in terms of creating jobs and having a stable economic foundation upon which to grow. for me, that is what i have been all about in my administration. what began with a conversation earlier this year with a company called twitter about their needs have us sit down with them. i went to their offices. i chatted with their seceo and cfo. the managers left the room and let me speak to the engineers, people such as yourselves. i asked what they really needed to stay here. they said they loved the diversity and culture. they wanted more biplanes -- bike lanes and infrastr

also deeply in debt. >> and so if greece defaults, if portugal defaults, if, heaven forbid, italy or spain were to default, the ramifications throughout the region would be enormous. >> reporter: and beyond. the u.s. banking system would also feel the tremors says economist mark zandi. >> our own banks are very well capitalized, they're very profitable, they're doing quite well but they can't withstand a big problem out of a european banking system. our banking system is tethered at the hip with europe's. >> reporter: here's just how tightly tethered. american banks have nearly $700 billion in direct exposure to european banks. they also have nearly $200 billion in exposure to the debt of greece, portugal, and ireland. >> pelley: anthony, is the problem a matter of uncertainty that the banks don't know who owns what? >> reporter: that's precisely the concern here, scott, that no one's really sure who's exposed where and just how much. if you'll recall back in 2008, that was very problem that led to a freezing of the whole credit markets. banks wouldn't even lend to each other they became s

up so the consequences of a weak country left the euro zone so like italy or greece or portugal or spain they would it would result in their economy of a up to fifty percent g.d.p. collapse in the first year but then they go on to say if germany left it would result in a twenty to twenty five percent collapse in their g.d.p. it would also cause a global trade to collapse u.b.s. is in the business of churning people's accounts on mercifully to make u.b.s. brokers and bankers and money every day they come out with a news story and it's usually a contradiction of the previous day's story if you listen the u.b.s. or in these other bankers you're going to lose everything because they're there fraud they're complete nutter fraud and they've been shown to be fraudulent one thousand different ways to sunday and that's like going to change their business model is fraud all these banks same thing so speaking of varying cost for bailing out systems or bailing out people let's turn to the u.k. max because i have these two headlines here interesting contrast england riots across taxpayers at least on

and then lending it at very high rates to countries like greece italy or spain and we cannot support that and more taxpayers' money is poured into that black hole so we're saying basically be sure directly finance these countries at a very low interest rates and then there would be at least an option to get these countries back on the growth path like a must see this money that was big into us from berlin. thank you very much now thousands of egyptians have gathered in cairo's main square to take part in a mass protest named we claim that the revolution they feel let down by the transitional military council and more a current emergency rule to be lifted to visceral through pressuring for more open election laws something echoed by political parties threatening to boycott november's parliamentary election r.t. if anything now a report on their own happiness is driving people back to cairo through. we knew that change would come to egypt a new chapter of freedom and democracy don't judge a book by its cover when reading post mubarak egypt it's between the lines where you'll find the n

question is why it was so difficult for people living in ireland for people living in greece or people living in spain or people living in portugal or people living in the united states for people living in the kingdom to understand that they need to also be in a fight to the death against banks who are selling government bonds sure that don't exist make it short selling of sovereign debt naked short selling on credit default swaps they're trying to kill you and your. washing could be their own arms who through all we do for free. meanwhile basically they've got a financial weapon of mass destruction up to spring training and they've pulled the pin what are you saying. take it you know you deserve what you get this is like early america by the way this is the way americans used to be rogue traders would be hung like they are in china this guy he's a real c.e.o. and he's going to fight to the death he's going to he's willing to die for his company this is how many bankers have jumped out windows since the disgrace they brought upon financial markets not known were they falling bankers the flyers of the

all the champions from last year are from italy, spain, or your country, never from the netherlands.but cycling is more than racing, it is a way of transport. especially for the first 7 kilometers, in combination with public transport. the last lines are important. for instance, in at the city of amsterdam, 85% of the trips are faster by bike then by car -- then by car. i do everything by bicycle. i am a slow cyclist, and i am still faster through the city. that is why most of the people in amsterdam go by bike. if your interested in funny and nice invidious, go to youtube. but you will see a lot of videos in which the bicycle and the car cooperate. these are some pictures and examples of how the public authorities can invest in cycling. this is a parking space for a cyclist. tend thousand bicycles can be stored there. -- 10,000 bicycles can be stored there. you can build a shelter for about 30,000 bicycles. now, what can employees do? many employees are working on the bicycle programs. this picture is a picture of a bicycle shelter at the company where my wife works. it is quite lux

about it it's only three hundred sixty billion worth of national debt compare that to something like spain or italy now these are the elephants in the italy itself has the national debt of one point nine trillion now that used to be to dale not too big to to fail. it's another country it's another story and you know i could talk all night to you about this but we're out of time next cracker's economic analyst talking to us from athens real pleasure to have you on the program thank you thank you very much already let me to update you on some international news in brief now let's start in libya should we hundreds there in the rubble to the big guys the of walked out of the streets in protest against the country's reaction to the country's new government meantime libyan rebels are pulling back from bani walid one of the four remaining colonel gadhafi strongholds as nato airstrikes reportedly start in the area towns held by loyalists have been given until saturday to surrender to the new libyan leadership as the rebels continue to search for the fugitive leader killed after these latest all the o

includes new tax hikes and raising the retirement age for women in spain or the demonstrations came ahead of a crucial senate vote on amending the constitution to limit national debt the union said rights groups say the death cap would decimate the welfare system and hurt the most vulnerable. now a new front in the global currency war has opened up after switzerland surprise international markets by devaluing its currency by almost ten percent in just fifteen minutes the swiss franc has been rising steadily for over a year as panicked investors look for a safe place to weather the storms in the troubled u.s. and european economies all this rise calls the price of everyday items such as food and clothing to shoot up making it cheaper for a swiss citizen to drive to germany for their shopping or the country's central bank says that by packing the swiss franc to the turbulent euro it will protect the inflation but german economic analyst michael ross believes it's no more than a capitulation to brussels. last ten percent of its savings the swiss franc devaluated ten percent that means that e