joining us now, wilbur ross. the battle with icahn, and ackman, and soros and everyone in jumping up and at each other is fascinating and that isn't what we do. >> we haven't had a public fight with any of those. liz: you're a midwestern guy. you don't fight. but you invest in things seemingly nobody else wants. what is the latest distressed area you think faces nateing? >> we're focusing more and more on banks in spain, greece, the whole southern part of europe. liz: greece? you really are fearless. >> we haven't done anything yet. we've been just studying it. ashley: you did very well with the bank of ireland. >> bank of ireland has been very good so far. it will be even better as time goes. ashley: what about the spanish banks, in particular that you like? >> well, the spanish government has done a pretty good job, first of all, fixing the economy. they changed the labor rules a lot. we have some factories in northern spain. we see the productivity increase. so it's not just government pr. it's true. second, t

wilbur ross, chairman and ceo of one of the leading private equity firms.ous statements, talking about tapering, not tapering, what are your thoughts of this and what you make of it? >> the only thing keeping the economy going is that we have really sad shape for the country. they started tapering just 5 billion a month last. you know how much we would spend before we got to zero? 740 billion more dollars they would keep it going at the present level for 21 months than there is more spending. >> the fact is that we would have a balance sheet that would almost $4.5 trillion. we would be closing rather rapidly. >> we think that the quantitative easing really only works if we have things with the transition mechanism of the economy. the money being created by the purchases and the banks are turning around and putting it on the federal reserve. lou: not only can we imagine a balance sheet, but we could never have imagined we see the sustained subsidy stimulus. >> at the end of the day, a country has to have savings. we have a much higher propensity to save it.

to investor, wilbur ross said that remember the other significant story sandwiched in between. people forget it. >> they do. i can't imagine why, but they do. neil: you know, amazing is that kennedy had a fight on his hand with liberals in his party. but he was in the pro serves cobbling together enough support that was realized by a successor. but it was an uphill fight. >> in those days there were more moderates in the congress. now there is an extreme polarization, that makes it more difficult to det compromise through. neil: i was looking at deficit, 12 billion-dollars. but, the idea that you could grow your way out of this, rather than just cut our way out. today, we have both grow and cut. what do we do? >> i do think that tax moderation would be a good part of the solution, it is significant to note that european union, not a very right wing group, has told france, they can't raise more taxes. they want them actual to make spending cuts. most extraordinary thing to have eu tell france, that 45% of the economy is already drowning in tax. that is the percentage of the econ