guest: likely another ten percent. neil: that would be a bear market and you do not quickly come out of that. guest: correct. neil: how long? guest: when someone comes up with solutions. they have to do that. maybe that is the wake-up call. neil: i didn t hear anything today that indicated people woke up. guest: people in washington, perhaps, didn t wake up. but the investors woke up and moved to safety. you may not be getting yield in a cd or treasury but preservation of capital is a win versus a loss so people should move to a safe haven and wait for the trend and let this settle down. companies would be buying back their stack. they will in the 1987 crash. neil: they did it that week, literally, and we are not seeing anything of that time now and that tells me the smart money is either being very quiet or
until the sun went down neil: finally, what took so long? i m not shocked that credit rating agency kicked us down. i m shocked it document happen years ago because we didn t suddenly become financial basket case overnight. we have been weaving the basket for years, spending money we didn t have on programs weapon didn t have with promise we couldn t keep, stimulus that didn t stimulate. rescues that did not rescue.
didn t happen today? guest: i was surprised it didn t happen in 2008 when the markets were very different. rather than looking at a specific downgrade we will look at the overall issue, the fundamental problem that the government is spending way too much money and the projection is it is out-of-control. this is a problem with congress, it has been true for 3 years, not a new problem, true for both parties and the way to solve this is to have a real conversation of how much overspending we want. it is okay to overspend a little bit, a little bit of deficit spending is stimulative but we are way out of that. way, way, way out of that. neil: in washington these days, too much is said, but this is a delicts position, a great deal of criticism of geithner, that they have to change the team. if you your name always comes
about that. your point we return to our old ways and the finger pointing returned to washington and it is the fault of the tea party and back and forth so if this was supposed to draw us to action it didn t. guest: don t you think something slightly pathetic in smart men who claim to be able to run the million try trillion dollar enterprise that is the u.s. government saying it is not us, it is the guy that runs the hard way store over there he goes to a tea party rally and the lady who owns the hair salon they have caused it. do you understand how pathetic the president of the united states is? neil: have you seen the lady who owns the hair salon? guest: what has geithner ever run. neil: that is what they are asking, should geithner go or the whole economic team should they go. if everything stays in plates and we don t make fundamental changes and the fighting continues in walk, where are we