🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more

Markets hoping that EU deal goes through as planned

Jill Schlesinger Dec 9, 2011

Steve Chiotakis: Some analysis now about the situation in Europe and how it affects our economy here at home.

Jill Schlesinger is editor-at-large with CBS/MoneyWatch amd she’s with us live from New York as she is every Friday morning. Good morning Jill.

Jill Schlesinger: Good morning.

Chiotakis: Does this mean now we are done with this? Can we finally stop talking about Europe?

Schlesinger: Sadly, no. The leaders have to actually enshrine these new rules; they have to come up with more bailout money; they have to keep monitoring the weak debtor nations and the European banks. Europe is still going to be in the headlines, sorry guys.

Chiotakis: What happens if this deal falls apart?

Schlesinger: You know, I keep thinking that banking is really the most important part. If the euro and the European banks melt down, U.S. banks are going to feel the pain too — we’ve got a lot of exposure to European banks and those countries. So if Europe implodes, U.S. banks freeze up, harder to get a loan — for a house, a car, small business.

This would hurt our exporters. You know, frankly, Europe buys 22 percent of everything we export. A recession there would hurt our exporters. Our job market would take a hit. And of course, the stock market — I mean, you remember that August swoon that occured after the debt ceiling debacle?

Chiotakis: Oh yeah, the big dips and rises.

Schlesinger: If Europe breaks down, that August is going to seem like a walk in the park.

Chiotakis: Something to think about. All right, Jill Schlesinger from CBS/MoneyWatch in New York. Jill, thanks.

Schlesinger: Take care.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.