Eurozone Deal Boost Markets Today
ERIN BURNETT, CNN HOST: OUTFRONT next, the Samsung galaxy, one of the best selling phones on earth. So, what does it have to do with Iran's nuclear program? And Mitt Romney makes a day one promise, you know, on day one of my presidency. We're going to show you why that usually doesn't add up. And George Zimmerman, in jail tonight waiting for a judge to determine if he'll be set free on bond. His lawyer is OUTFRONT. Good evening everyone. I'm Erin Burnett. And OUTFRONT we have breaking news. And this was a very, very big day. Stocks surged. The best day of the year and the best June in 13 years. Lucky 13 I guess. Why? Well, we were touched by an angel. And considering how important Europe is to American jobs and to this presidential election, the president was touched by an angel too. Yes. Yes, she is, the angel in this case is literal. Angela Merkel putting another band aid on the Europe crisis that buoyed stocks around the planet. I mean, literally this started in Asia and fell all the way through. This was pretty incredible news. She caved sort of. Looks like they're about to kiss, doesn't it? European leaders today said they'll allow troubled banks to use emergency money from the European Union. Basically that means mostly German rescue funds. That's the truth of it. The bottom line, it means the money will get to the banks more quickly. Helping countries like Spain, whose crisis is threatening to break up the entire European experiment. Now, the market celebrated, that's for sure. But this is not the final solution. As Peter Boockvar told me today, "for now, party on and turn that hour glass over as more time has been bought but only the symptoms are being taught as the underlying disease of excessive debt and lack of growth still remains." Some symptoms of that disease, economic confidence at a 2 1/2 year low in Europe and at least eight countries in the euro are in recession. OUTFRONT tonight, Stephen Moore of "the Wall Street Journal" editorial board and Jim Kessler, senior vice president for policy and co-founder of the third way. Great to see you both. Stephen Moore, obviously, the market celebrated. The problem is when bad things happen in Europe, they plunge. But people are saying this is not the final solution. But this was a little bit more significant.</s>STEPHEN MOORE, WALL STREET JOURNAL EDITORIAL BOARD: Well, it's significant. I mean, the market loved it. Germany basically stepped up. I mean, Germany is the one country that can save Europe right now. It's the one economy that's growing. What they passed, what they agreed to, Erin, was essentially like I guess the best way to describe it would be like a mini T.A.R.P., a mini bank bailout like we had in the U.S. back in September of 2008. And the markets loved it. But I don't think this say long-term solution. I think Europe still has really systemic problems. One other point, it was a great day for the market today. But the market just recaptured most of the losses from earlier this week so let's not be too --</s>BURNETT: That's right. There have some really bad days. Jim, when you put it together though, when the president had his health care victory which was important to him in so many ways. But what's happening in European is out of his control. But really might be what really does control re-election. How big was this move in your view in Europe? Something that's really going to stabilize it and allow economic stability here that will result in job creation and a re-election for him?</s>JIM KESSLER, CO-FOUNDER, THIRD WAY: Good couple of days for the president no doubt about it. If you remember, a few weeks back, the president did a press conference in the White House. He was talking about Europe. I think a lot people were wondering why he was doing that. Was he talking about, you know, making some rationalization for slow growth in the U.S. But I think one of the things he was saying was it was a message to Europe which was the time has come that you got to pull together and do some sort of solution. I agree with Steve. This is not a long-term fix to Europe's problems.</s>BURNETT: Right.</s>KESSLER: But you can't solve the long-term problem without solving the short-term problem. And I think this solves a problem for the president. There are two head winds to the economy. One is housing. We're seeing some rays of sunlight there. The other is Europe. And this should take Europe off the table I think as a negative thing for the economy, for at least the rest of the year.</s>MOORE: I'd like to think that's true, that Europe has passed, that the worst is behind them. I don't believe that. Look, Erin, the problems with Europe are not so much monetary. Even in the banks, as bad as the problems are in the banks. The problem is they have a regulatory structure, a tax structure that just isn't competitive in global markets. Nobody wants to start a business, open a factory. We had a piece in "the Wall Street Journal" this week about how in some European countries they now have a policy if you get sick on your vacation, you get another week of vacation. I mean, there are not enough people working in Europe.</s>BURNETT: Wow.</s>MOORE: Right. Great policy, right?</s>BURNETT: But you know, a lot of Americans are saying where do I move to get that?</s>MOORE: Systematic of a kind of culture in Europe that cannot give up these entitlements that are driving the country down.</s>BURNETT: Well, you know, it's interesting, before we get too excited, Jim. You know, this is the same angel, Angela Merkel who earlier this week said Europe will not have shared liability for debt which is a crucial thing, right, then you get all kinds of other countries defaulting and you are Germany. But she said they will not have shared liability for that debt as long as she lives.</s>KESSLER: Well then, I guess you only live twice because they now have shared liability on debt. Look, I don't dispute --</s>BURNETT: For banks, that is very different. She's talking about you have countries that failed. That is different.</s>KESSLER: Right, a lot of the sovereign debt in European is owned by the banks, so this is -- they're tied together.</s>BURNETT: That's a fair point.</s>KESSLER: Kook. Stephen is right. This doesn't solve Europe's problems by a long shot, but think the impending crisis of the economic implosion in Europe this year, that probably will not happen now.</s>BURNETT: You think --</s>MOORE: We'll see. I mean, hope you're right. I do think that these -- Europe just hasn't been serious about getting control of its spending and its debt. I mean, its debt is a share of GDP is a lot higher than it is even in the United States. And the real question of whether they can kind of grow up in Europe and say, look we got to get back to work. We got to become competitive. I'm not so sure they have the will power to do it. Germany, as I said earlier, is the one country that's really doing well. They have very low interest rates. And the question is whether the German people -- because Angela Merkel has to be accountable to the citizens. Do they want to bail -- they don't want to bailout France and Spain and Italy --</s>BURNETT: Well, they see it as they're sitting there working hard. And look, they have a lot of the same issues with hiring and firing as other European countries. But, they say, will France wants to cut their retirement age to 60. This whole thing about I'm sick on vacation so I get another week of vacation.</s>MOORE: That's a big problem.</s>MOORE: Who do they compete with? They compete with Asia. The Asians work 70 hours a week.</s>BURNETT: Don't they already get six weeks a year? Don't they get six weeks or something in the month of August?</s>MOORE: Exactly, everybody takes July and August off.</s>BURNETT: I got to tell you. Jim, n a sense, I think we're all a little jealous. Although, we have been - I know the whole system may fail, but this time of year. Thanks to both of you. We appreciate it. We'll take that gain where we can get it. Best June in 13 years for stocks. Well, Republican presidential candidate Mitt Romney says he's going to repeal Obama care on day one. Why it doesn't add up. And the iphone 5. Looks like it was a killer, in more ways than one. And George Zimmerman had a bond hearing today. His attorney explains why Zimmerman and his wife transferred so much money between their bank accounts before that bond hearing. He's OUTFRONT.