deep thought as bad as it may be for one country is just the beginning it's really the spark reggie middleton says contagion should really be what everyone is focused on right now reggie is entrepreneur lee investor he's author of the boom bust blog he's also just an all around bad ass and he's here to tell us why contagion is what we really need to be looking at before we get to that reggie i do want to talk a little bit about greece and first of course thanks for being here. ok yeah so you know we've been critical of the numbers coming out of the troika for example with these very rosy projections of growth for example against some of the realities of what's going on in greece just a couple of examples to throw up there for our viewers here's one showing how greek g.d.p. has completely tanked so there's just one example another one if we could bring up greek bank credit to households that has completely collapsed in the last couple of years and industrial output is another place where we can see that that has just collapsed over the past few years now the numbers really put into perspective

for two years now and for anyone billing this latest greek deal as a solution kung-fu analysts reggie middleton is here to karate job the accounting shenanigans math being the real story. it's. he will set us straight news here to tell us why more than default the word of the day on everyone's mind should be contagion meanwhile in the u.s. uncle sam may be getting ready for a fire sale dumping millions of foreclosed homes many that u.s. taxpayers own sounds like a good investment deal only if you're an individual investor forget about it say thank you to crony capitalism for that one we'll explain and japan and the u.k. are fighting the volcker rule why are foreign governments getting into this fray over u.s. regulation we'll tell you why it appears j.p. morgan and morgan stanley may be to blame for that let's get to today's capital account. they use executive branch expects the eurozone to suffer a recession this year now the european commission in its latest projections forecast point three percent contraction of course greece is leading the way and that contraction but it now expects countri

defined goals and i just wanted to say that this is something we talked about yesterday with reggie middleton and if we could bring this up he talked about how the i.m.f. has a history since the crisis since the debt crisis being too rosy with their assumptions and he there's one example where you can see how they were much rosier than reality and this is something that has been going on and he has a bunch of great charts and analysis that boom bust blog if you want to see more about that of course our interview yesterday we talked about that too and on the note of greece i would like to say yesterday in my headlines i said that greece is the gum on the bottom of every one shoe and what i've should have said is according to a brilliant trader an economist who is very astute and very creative greece is the guy on everybody's shoe because it's really an idea i got from steven guilfoyle known as sarge who is a viewer and also a trader an economist and he was using that metaphor in his morning note and i loved it and i should have given proper. for what was a really creative and thoughtful way to

. >> reggie middleton, welcome to the program. nice to have a new face on the show. how do you see the market today? >> i am reticent to put any faith in the greek deal. let's take a best-case scenario. the greek deal goes through. you have several states that need to be bailed out. you have portugal, what soon will be italy. you have all the states that tie into italy such as france and where they have to bail out their banks. that is best-case scenario with greece. probably what will happen, greece gets another bailout package. i think it's the third or fourth one. let's say they do get bailed out if they don't get more than a 75% hair cut they have to get bailed out again. at 70% net hair cut, greece can't make its debt service. >> what is the relationship between what your scenario is over in europe and where you think our stock market is going to go then? >> short-term scenario, i can't guess. long term interest rates are going to get volatile. if they get volatile, the stock market becomes volatile and risk goes up. i don't see it medium term. short term, my ba