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S&P Puts Germany, France on Review for Credit Downgrade

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    Indiana Senator Richard Lugar on global economic crisis

  • Duration 5:25
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Or right you do not want to be on the receiving and and -- to be potential downgrade or even on a negative watch list.

But that is exactly what the folks at standard of boards have done.

To the countries of Estonia Belgium Italy.

Portugal.

As soon be looking at negative implications for all of these countries the prelude some say to an out right downgrading in their debt.

Coming as it does the same day we've had instruments and they that they could be looking to put on -- negative watch list again a precursor to a downgrade.

France although -- to Germany Germany by the way.

Is the only country that tactically fits all the Euro rules in other words to be a member of that club.

Germany's the only country to meets all the criteria.

-- so as you downgrade Germany.

I must stress that has not been done yet and these -- second tier countries no offense to the Belgians.

But it does set the states.

Reaction now Republican senator Dick Luger from the fine state of Indiana senator what do you think that.

You're very serious and it comes right before -- December 8 and December ninth meeting.

In which -- European states manners are going to meet and perhaps have a plan that takes away a lot of the sovereignty for spending for budgets.

From all the seventeen countries.

How what the reaction be with the public's of those countries quite apart from leaders.

There's still to be seen but essentially the idea is that there has to be a disciplined.

That makes each of these countries spend less.

That has less of a social safety net for their populations.

A lot of very unpopular things with the hope that somehow this might stabilize the whole business.

Well not the floor of the reaper comes out of the judgment problem now we've heard that Germany.

And France have been added to this list of some fifteen -- -- -- nations.

On review for possible -- just explain how these ratings agencies work they've put up a list of countries -- think.

Are not meeting the criteria at the right at the rate they're -- to maintain the ratings that they have in the case of Germany France strip away.

On and if they continue to go at the pace they're going they're not going to be -- a for a long they have not downgrade.

This is just to watch for the potential that they won't stay at times rating -- have that explains the bottom line -- they come down then.

Then this is if all of the countries might fail in Europe.

And the call of like you to come out much stronger term is for the United States.

To come to the rescue.

Weekend of -- week hasn't -- already downgraded us a path so -- -- -- -- these countries that are getting downgraded now we get down read -- more I think the importance of this is that there has been.

Very little consideration on the parts.

The congress or even discussion with the president what have you.

As to what this means for banks in the United States a four -- recession.

In other words.

For the time being America's sort of stood.

Aloft there and and so this is too bad the Europeans are doing so badly.

But if you talk to bankers and our country they have billions of investments in those -- you would if you were president senator you you would.

DC vote should quit this helped in other words still be part of the I am not -- offer money if and when your needs and it does it.

I I would like to see -- some.

Discussion of this as opposed to.

And administrative judgment that somehow we put money through the IMF into Europe because that'll just be the beginning I'm afraid.

But yeah like a joke -- and he's even been critical of the way we handle our energy and -- The Keystone Pipeline debacle saying that we're missing a golden opportunity shore up our.

Energy answers and will be gone and well that's very different situation because that is the keystone we're going about jobs in America we're talking about investment of -- Canadian firm of seven billion dollars now.

And murders -- -- -- -- well we're talking about balance of payments situation improves.

Trying about the ability read export more refined product and which we now -- the president -- -- about the environment.

Well.

I understand that and -- had a group of people around the White House two weeks ago.

And so he found it can be the -- -- do it in 2013.

Very bad call and that's what we've offered a bill to do it next sixty days -- this is very important for our country.

But and to get back to the European for for a moment.

I'm just saying the implications of this.

Have not really come through our debate we are concentrating ratified through the next year those senators that Europe -- off to -- oh no I don't think so -- really you can bet that and that's why I think this is a serious discussion has to occur now.

A company whatever we're doing and it's tough because people in the congress and our -- would say where we were talking about jobs here why -- too.

Wrong -- saying is in the event you have -- debacle in Europe.

-- that undermines our banks and creates a further recession.

We're gonna lose jobs in this country and we're gonna lose them because of the European situation so we better talk about that now as what we're going to do about it.

-- Dick Lugar always good seeing you thank you for so these are willing to switch gears on us and that's always thank --

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