From last night’s Piers Morgan.
Morgan opened the show with a great live panel on yesterday’s Dow crash featuring Erin Burnett, Ali Velshi, and Marketplace’s Kai Ryssdal.
Short version: Scary stuff. Related: CNN would do well to get Burnett out there as much as possible ahead of her show launching.
Back to the panel. Velshi lay the blame for the crash on the European Central Bank: “They attempted to go in, reassure investors by shoring up the euro and buying bonds in euros, putting money into the system. It had the opposite effect. It caused investors to run for the hills. But, you know, they couldn’t get enough out while European markets were open. So it moved into U.S. markets.
Burnett thinks the debt ceiling debate caused a dangerous distraction:
And with all this distraction with the debt ceiling conversation, I mean it’s as if the world’s economy, which is the American economy, was walking around with a broken leg and two broken arms, and then someone came along and punched it in the nose.
I mean that’s how really unneeded this whole debt ceiling debacle really was, in my view. But yes, it is — it is interrelated and it all goes to show you, Piers, how much the world needs the American economy to stay strong.
As Ali is pointing out, in aggregate, obviously, the European economy is the second biggest. As a single economy, China is the second biggest, and we’re still three times bigger than China despite its rise. So the world needs America to get better and the economic data has just been pretty darn weak.
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