in money matters this morning, wall street, where leaping stocks have investors jumping. >> we're going to turn the bull loose. >> one of the great things about this nation is, we can seek profit. >> is money the number one goal? >> yes. >> we've had 29-year-olds making a million dollars a year. expecting to make $2 million the year after that. >> if you have plastic money, there's nothing holding you back. >> history will prove the bankers were honest people. >> insider trading could become wall street's watergate.

>> what do we wall greed the day before an indictment? >> i'm afraid recently we've called it success. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

the u.s. economy, which used to be the envy of the world, is in the most serious trouble since the great depression. inflation is rising, while the standard of living is declining. >> there was tremendous inflation, and not much growth. the country was not in a great depression in 1980, but the united states was in the dumps. >> on wall street, it was cold, gray, wet, and miserable. there was no comfort to be found outside. and for investors, there was not much inside either. the tickers carried almost nothing but bad news. >> we'd come off a terrible decade for investing. people were skeptical of the stock market. it was a very sleepy wall street back then. >> most economists expect a serious recession, with at least 2 million more americans losing their jobs. >> i regret to say that we're in the worst economic mess since the great depression. >> literally from the first moments of his presidency on, president reagan let it be known that his top priority is the nation's economy. >> i put a freeze on pending regulations and send up a task

force under vice president bush to review regulations with an eye toward getting rid of as many as possible. >> the philosophy behind deregulation was that markets worked better than government controls. >> this bill represents the first step in our administration's comprehensive program of financial deregulation. >> introducing deregulation, finance began to get much more creative and frankly much more profitable too. >> in money matters, wall street, where leaping stocks have investors jumping. >> when the market opens for trading this morning, the dow jones industrial average will stand at its highest level ever. >> the past few months have been among the wildest in wall street's history. stock and bond prices soared in a frenzy of activity. optimists on wall street are talking about the beginnings of economic recovery. >> the supporters of deregulation point to the soaring stock market as evidence that a deregulated economy makes money for everyone. >> the stock market took off like a rocket.

and the public saw this happening, and they would read about it. and so all sorts of people who used to have nothing to do with this world started pouring their own money into it. that's in large part also what drove prices to go even higher. >> the ronald reagan motorcade rolled onto wall street today to the new york stock exchange. >> in the last five years, we've moved from malaise to hope, confidence, and opportunity. the volume of shares traded hitting record highs, and more americans than ever before participating in the market. we're bullish on the american economy. >> when reagan shows up at the stock exchange, yelling "ronnie, ronnie," is a way of saying america's back. that was ronald reagan's genius. he was able to link economic faith with faith in america. >> no sitting president had ever visited the new york stock exchange before. but it seems safe to say no recent president would have

beaten reagan for the honor had a vote been taken among traders. they gave him round after round of cheers. >> we're going to turn the bull loose. >> the whole world, from reagan's white house on, was basically saying wall street is the engine of our economy. it represents growth. it represents opportunity. it represents the american dream. so these guys were basically saying, we're going to go do it. >> this is the big draw on wall street, the smell of money. >> this is where the action is. this is the over-the-counter trading for shearson layman. more than 17,000 daily transactions involving millions of shares and millions of dollars, made and lost here every day. and it's a game for young people. >> when you get home at the end of the week and you look back at what you've done sitting at this desk, what gives you a sense of satisfaction? >> i guess making a lot of money. >> for yourself or for the firm? >> myself and for the firm. >> when the economy started to recover and become more vibrant, i think there was a great sense

of exhilaration. we survived this miserable period. let's celebrate, let's party. we have money to spend. >> today the fad among young people is to have big salaries, fancy clothes and fast cars. and they are called yuppies. >> but who are these partiers with portfolios, yuppies? >> a yuppy is a person who owns a mcintosh and drinks white wine and that's me. i'm having a great time here. >> a 29-year-old is making a million dollars a year, expecting to make $1.5 million next year and $2 million the year after that. >> for this generation, business is hip. capitalism is no sin, it's in. is money the number one goal? >> yes. ♪ all of the fun is waiting for you at the castle ♪ ♪ trump's castle ♪ >> in a world where mere millionaires are a dime a dozen, there's a new billionaire in town. he's 40 years old, his town is new york city, and he's made his money mainly from manhattan real estate. >> he puts his name on almost everything he builds. says it's a symbol of quality. but others say it's part of the

hype. >> donald trump, he is the brand and he is the symbol of a new swashbuckling approach to commerce, to entrepreneurship, and also to conspicuous consumption. >> we definitely do have people who have become celebrities just from being rich. i'll take the trumps as a good example. their celebrity is generally that they are rich. >> donald trump has also ventured into gambling and professional football and says he could negotiate a nuclear disarmament treaty with the soviet union. >> they say he's land hungry, money hungry, power hungry. >> the power is nonsense. i love the creative process. >> what about the name of trump city? trump tower we're sitting in. trump plaza. trump castle? >> it sells, mike. all i know is -- >> that's all it is? >> it has nothing to do with the ego. all i know is it sells. >> what do you do? >> security. >> we don't need security. you have to go outside, we have people outside. >> leona helmsley was the wife

of hair are harry helmsley, one of the major, much bigger than trump, real estate developers in new york. >> i asked for something. i did not get it from you. i want it. you have nothing to do. the idea was that she was so mean because she wanted you to have a great experience at one >> oh, my. >> it's paradise. he stands here and he says, i'm taking inventory. i own this, i own this, i own this, and that one and that one and that one. >> he plays monopoly but with real buildings. >> with real buildings. >> they bought this connecticut estate a year ago, 26 acres, 28 rooms for just the two of them. and this building structure is just what? tell them. >> it's the enclosure of the swimming pool. >> and up top? >> on top we're going to have, of course, a dance floor. ♪ dance in an old-fashioned way ♪ >> leona helmsley became a kind of symbol of the excesses of the

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if you shop at walmart, you get it. ♪ you know how to spend a little less to get a little more to make life a little better. ♪ this is the way we live now. nice, even temperature. no rain, no snow, no loud noises. music is playing. everything's perfect in the mall. >> in the 1980s, you have 16,000 malls popping up like mushrooms, and they become the high temples of the great american religion, shopping. >> pam and melissa, 15 years old, come to the mall almost every day. they call themselves mall rats. >> i love it. it's only $24. >> consumerism definitely took over in the '80s. people emerged from the 1970s,

tough economic times, and went wow, we can now spent. >> i want you to think about this also. honey, that's what's going to set your eyes off. >> the economy started growing, and it was largely a consumer-driven growth. but the consumer economy was funded by debt. >> the national bankruptcy rate is soaring. greg and diana, annual income $32,000. they had over $12,000 in unsecured debts when they bought a new home. then they bought a new washer, a dryer, a microwave oven, and a betamarks tv recorder. then they went bankrupt. >> i know i don't have money, but if you've got plastic money, there's nothing holding you back. >> it became acceptable to have debt. it was acceptable to have a credit card. more than acceptable, you wanted to pull it out of your wallet and use it. >> live from tampa bay, florida, it's the home shopping club. >> every doodad and tchotchke. >> americans seemed utterly

hooked on home shopping. >> i have you down for two of the plush musical bunnies. >> there are home shopping club parties. like-minded consumers gather together to do what comes naturally. >> i want four of those bird figurines. >> you don't have to leave your house, and stuff will come to you. welcome to america. >> give us 300 more people to call on their credit card right now. >> if you and enough people will send me $100 immediately, i need some very quick money. >> go to the phone right now. now! quick talking about saying you believe in god without ever acting on his word. now! faith is an act! >> in all, there are 1,600 television ministers. of the $1.5 billion grossed annually just three of them -- pat robertson's, jimmy swag gert's, and jim baker's took in $500 million. >> the primetime preachers say they need the money to stay on the air, and they need to stay on the air to raise money.

money for the kind of electronic equipment any network would be proud to own. >> i believe god wants us in the next 30 days to have every one of these bills paid in full, and ptl can live if we pay our bills. >> we'd pay the bills if we would all just do something. >> as televangelism grows, jim bakker is the one who truly gets it. he understands that preaching on television is not just about standing up and giving a fire and brimstone speech. he understands in the age of television, the johnny carson approach to televangelism, being more intimate, showing your lifestyle and your beautiful family is essential, because it brings people in. he's a brilliant entrepreneur and a brilliant salesman of himself. >> and now here are jim and tammy! >> their appeal is powerful. last year, a million people responded to the bakkers' constant request for money. >> how many do you have right now? >> just about 30. >> 30 what? >> silver 7,000 clubs. >> that's $90,000. >> praise god.

>> the bakkers have been criticized for their own lavish lifestyle. >> just because i'm a christian doesn't mean i don't like nice things either. i love nice things, and jim and i work very, very hard for nice things. >> they say the only difference between men and boys is the price of their toys. >> toys like a fleet of luxury cars and a string of fancy homes, from palm springs, california, to teigen cay, south carolina. >> they think by them living well and having rolls-royces, everyone will thing, ah, god is shining his countenance upon them and, thus, upon us. and ptl becomes the vehicle for their media empire, for their theme parks. >> if we are to be fishers of men, that's what the bible says, we are fishers of men. we've been using some pretty lousy bait. we've just built better bait to reach people. >> you could have a lifetime partnership with ptl for a one-time gift of $1,000. four days and three nights every year for the rest of your life. >> that mix of god and greed

ends up derailing them and ends up leading them to breaking the very rules that they are preaching about. >> television evangelist jim baker has stepped down as head of the praise the lord or ptl ministry. >> it came because of a sexual encounter seven years ago. >> jessica hahn is to be paid monthly as long as she keeps quiet about the incident. >> it turns out jim bakker has been paying off this secretary, and that shakes the evangelical world. >> the evidence seems to indicate that effort and money have been expended to cover moral failure. >> if jim bakker paid jessica hahn hush money, quote, unquote, what else has he been doing with the ptl money? >> do you worry about the investigations? >> no, not at all. >> history will prove the bakkers were honest people. >> we interrupt this program for a special report. >> jim bakker, the defrocked head of the ptl ministry, has been found guilty on all 24 counts of fraud and conspiracy by a jury in charlotte, north carolina.

>> bakker kept selling lifetime partnerships at heritage usa, even though he knew they were oversold. for example, the heritage grand hotel could accommodate only 25,000 pips, but 65,000 were sold. and for the lower-priced bunkhouse partnerships, about 7,000 were sold for a building that had only eight rooms. >> jim and tammy bakker's ptl club was sent money for 15 years. >> i have made billionaires out of those people when i don't even have enough to live on. >> bakker could be sentenced to 120 years in prison and fined over $5 million. >> i would say i feel sad, but encouraged in god. >> tammy bakker said she could best describe her feelings in song. ♪ on christ the solid rock i stand ♪ ♪ all other ground is sinking sand ♪

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today, we travel to the lone star state to visit tycoon, entrepreneur, t. boone pickens, the highest-paid ceo in the country. even here, wall street is in charge. wall street being a parrot,

green as in money. he reigns over an entry foyer that runs the entire length of the house. and at the end of that long foyer, we find this morning boone pickens. good morning, sir, how are you? >> good morning, harry. >> why don't we go ahead and head into the trophy room, if you don't mind? >> sure. >> t. boone pickens was a texas oilman who became the original corporate raider. he would buy a bunch of stock in a company, talk about how the executives needed to be tossed out, and make a play to take over the company. >> the company is only 1/20th the size of phillips, buys 5.8% of the stock privately. now pickens lets it be known that he wants to buy another 15% from the shareholders and gain a seat on the corporate board. >> there's one thing i want to put in place is that stockholders own companies and management is employees. >> phillips agreed to buy back its stock from t. boone pickens to stop his takeover bid. the profit to pickens and his

partners, $89 million. >> it is no secret thatoff made about $500 million through losing on your attempted takeovers. do you go into it anticipating the loss is still going to stand you very well? >> you never like to lose, but if you lose and make money, well, it makes it a little easier. >> i remember someplace, the guy got up and said, i have a question. he said, you're making a lot of money out of this. and i said, the shareholders are too. he said, yes, but you're a fast buck artist. fast buck artist? i said, who in the hell would want to be known as a slow buck artist? >> i see it as a free enterprise system working at its best. >> pickens was really the first major investor to realize how undervalued american companies were and what you could buy there. and it was his early tilt at gulf city services, all these

famous deals that brought this new reality to the attention of other investors who followed in his wake and sought to imitate what he did. >> i freely admit, i am an investor and i want to make a profit. i freely admit i am not robin hood. >> it is not wrong to want a profit in capitalist america. it's fair. >> ivan boesky made a fortune buying into companies being pursued by takeover artists. boesky doesn't want to run those companies, just profit in the run-up from their stock prices. >> "forbes" magazine lists boesky among the 400 richest people in america. estimating his wealth at well over $200 million. >> where's my share of the profits? >> ivan boesky gave the commencement speech in 1986 at berkley and he became famous for one line in that speech. >> i urge you as a part of your mission, seek wealth. [ cheers ] it's all right. >> a new film "wall street" used boesky's words as the basis for some of the dialogue.

>> greed is good. greed is right. greed works. >> when michael douglas in the movie said "greed is good," i mean, it's a cartoon expression, but there's truth to it. there was a sense that it is okay to be greedy. it is okay to maximize your wealth. >> what i want to see above all is that this country remains a country where someone can always get rich. >> big companies gobbling up little companies. little companies gobbling up big companies. eight years ago, there were 1,500 corporate takeovers. last year, there were 4,000 involving $200 billion. >> this type of deal is called a leveraged buyout. the company borrows the money using its assets as collateral for the loan. in return the company issues ious. because the deal is so risky, those ious carry very high interest rates and they're called junk bonds. >> you may not have heard of michael milken of drexel lambert

incorporated, but this 40-year-old wall street whiz is said to be the most powerful financier in america. he brought respectability to low-rated junk bonds and then used the money to finance corporate raids and takeovers. without mike milken, t. boone pickens couldn't have raided gull gulf. >> he said if you really want to take over gulf, it's going to cost you $13 billion. i said, yeah, i get it. and he said, i can get the $13 billion. >> he's the guy that t. boone pickens goes to and most people haven't heard of him. >> well, that's just the way he likes it. he doesn't care about publicity, he doesn't care about pride. he just cares about doing deals and having power. >> he was this shadowy howard hughes-like figure that those of ueven in the press never saw, you just heard. it was milken's genius that created an entire market and

fueled this takeover phenomenon. >> we romanticize these characters. the fact of the matter, these are fat cats, first cousins to the financial manipulators, the robber barons of the late 19th century. >> these guys are out there, they're trying to make a buck by doing nothing. and they're putting people out of work. >> economists agree that some unemployment, some hardship, is unavoidable in the vitally important process of making the united states lien and manner again. what the takeover specialists call corporate restructuring. >> corporate america needs some kick now and then to become a little bit more efficient, a little less entrenched. and that will probably do our economy a lot of good. >> thursday, goodyear fended off a hostile takeover bid but victory didn't come cheap. >> goodyear won by buying back half its stock and taking on a huge debt. plants were closed and workers laid off. the company pays $1 million a day in interest to 17 banks worldwide. >> these fellows jump out of the

closet, shout "gotcha," and buy up a company with its own assets, they dismember it and erode the industrial base of this country. >> maybe we didn't understand how it all worked, but we saw a lot of people losing their jobs. and a few people getting super rich. and the vibe of the culture being, that's cool. >> how much is enough? >> enough what? >> enough money, enough power, enough influence, enough takeovers? >> this is my work. this is what i do. let me do what i do. it's not a question of how much. sensitive. new dove ultimate antiperspirant. our unique water based formula and 6x more glycerin. helps restore skin to its best condition. new dove ultimate.

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a lot of nicotine in here. it was a week to remember. banker's hours posted on the doors of savings and loan institutions in ohio didn't mean a thing. the doors were locked. >> the run on ohio savings and loans began when home state savings bank was besieged by depositors who demanded their money. >> i don't have a whole lot and i'm 79 years old, i need that money. >> i made a decision after weighing several options we had to close all 71 of the privately insured savings and loan institutions. >> they're faced with the dilemma of solving the worst financial crisis in ohio history, a situation that is being called the worst banking crisis in the u.s. since the depression. >> the deregulatory climate of the 1980s, savings and loans

which had traditionally invested only in mortgages were free to invest in pretty much anything they wanted. >> basically what happened was the entire s and l industry got taken over by a bunch of entrepreneurs who saw them as piggy banks. >> vernon savings was shut down by federal regulators, saddled with $1.3 billion in bad loans. the owner, don dixon, lived a life of private jets, yachts, and mansions. >> they took risks that should have been untenable for a banker. when interest all went blooey, the entire industry went belly-up. >> quiet down! >> i'm going to disperse the whole bunch of you. >> this was the third day on the run on the old court savings and loan association. >> the only thing i can do at this point, i have no choice, we have to close. >> i don't think it's right. it's our money. >> this year, a record 260 banks will go bust. that's almost 800 in the past five years. bad loans to the third world. bad loans to the oil industry. bad loans to real estate developers.

>> one of the reasons bankers made outrageous loans was because of federal deposit insurance. if the loan went well, you rake in the profit. if the loan went poorly, then the federal government picks up the tab. >> with deregulation, the s&ls got into that commercial real estate market and lost their shirt. >> all over the united states, people were building projects for which there were no buyers, mile after mile of these partially completed condos. and they're all on the s&l's books. >> there's something wrong about the savings and loan industry today, and it isn't me. >> charles keating was a lawyer who got into banking and was able to buy a savings and loan. >> when keating bought lincoln savings and loan of irvine, california, he used it as a private piggy bank for his own ambitions. like the venetian hotel, that cost $500,000 per room to build. >> that hotel is a magnificent investment for savings and loans

dollars, no question about it. >> the real problem is when our appraisers looked at it, they said it's not such a bad hotel, but it's worth $200 million, not $300 million. >> bill black was one of the federal regulators who really spearheaded going after keating. >> we discovered likely fraud. just really basic things that no honest banker would do. the examiners looked at 52 real estate loans that lincoln had made. there were no credit reports on the borrowers in all 52. >> on top of that, charles keating has lincoln savings sell uninsured junk bonds, and he targets the widows and the retirement community. >> there were 23,000 customers who would buy $250 million of these bonds. >> we had sold our home in sherman oaks. my husband had a stroke. we moved down here, went to lincoln savings.

>> how much is your debenture? >> you really want to know? it was $30,000 and for us, that was quite a bit. >> capitalize on this, the bond salesmen were told. the weak, meek, and ignorant are always good targets. >> the regulators were looking at this and saying, this guy is a disaster, man, we have got to stop this. but by that time, keating had a construction company in arizona. he had thrifts in california. his tentacles spread out to several states. so he was able to call on congressmen and senators and say, hey, get these dogs off my back. >> this morning, the s&l crisis goes to capitol hill. the senate ethics committee is looking into charges against five senators accused of intervening with federal banking officials on behalf of charles keating. >> the so-called keating five are republican john mccain and democrats alan cranston, john

glenn, donald ring angle, and dennis deconcini. they reportedly received a total of $1.3 million in donations. former bank board chairman edwin gray says the senators tried to subvert the regulatory process. >> i was told to come alone. i did. >> did you find that unusual? >> absolutely. never happened before. the whole time i was in washington, i never saw that. >> no witnesses? >> no, no witnesses. deniability. perfectly built into the meeting. >> they said they wanted us to not take the enforcement action against lincoln savings. the only thing that got them to back off is when we finally said, we're making criminal referrals. you're going to bat for criminals. >> now awaiting trial on charges of criminal fraud, keating has refused to testify to the senate. >> was there something wrong with five senators meeting? yes, it's a bad appearance. but the real question is, did john mccain abuse his office?

the evidence indicates clearly no. >> the keating five became a symbol of the '80s because it's a group of distinguished u.s. senators that are accused of taking bribe money. they get off the hook eventually, but it really rocked the country because it showed that not only was corporate america being questioned for corruption, but the u.s. senate seemed to be a beehive of bribery. >> one question among the many raised in recent weeks had to do with whether my financial support in any way influenced several political figures who took up my cause. i want to say, in the most forceful way that i can, i certainly hope so.

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a financial scandal causing increasing concern involves investors who make killings on wall street, not because of luck and skill, but because of inside information not available to anyone else. >> this coded document might be

a secret earnings report showing disastrous losses or a confidential assessment of future profits. if you are one of the 32 million americans who own stock, such information can either cost you money or earn you money, perhaps millions of dollars if you find it out first. in either case, it is illegal. >> the single biggest currency on wall street has always been information. and in the '80s, that information was trading back and forth. and investors were talking to their buddies. they went to business school and law school with who were working on these deals to find out. it was pervasive. >> the security and exchange commission which monitors potential abuses says currently, penalties aren't strict enough. >> this is a serious course of misconduct and at present, the sanction is simply akin to asking someone to put the cookies back in the cookie jar. >> in tonight's money matters, the biggest insider stock trading case ever. >> investment banker dennis levine collected $12.5 million in illegal profits.

he did it by gaining advance knowledge of 54 pending takeovers. then from a phone booth, he'd call an accomplice in the bahamas who would buy stocks in the names of two dummy corporations which levine had set up in panama. >> the levine case was the first time the s.e.c. has been able to nail down insider trading by one of wall street's big dealmakers. somebody with a million dollar a year salary, which apparently wasn't enough. >> insider trading could become wall street's watergate. >> plea bargaining is now under way with dennis levine. authorities might be able to develop a list of new suspects. >> we start the investigation, and once his lawyer advised him it was in his interest to cooperate, he would give you the information. to him, it was just another deal. >> i think the judge made clear that he would have given a heavier sentence except for the cooperation. >> dennis levine was one guy doing insider trading, and that's not something that's new. but what dennis levine did is was lead to ivan boesky.

>> the securities and exchange commission stunned wall street when it announced ivan boesky has been fined the largest penalty ever for insider stock trading, and he has been barred now from the industry. >> he did what he claimed he would ever do, use insider information to buy huge blocks of stock in companies secretly involved in takeover deals. >> ivan boesky was an out-and-out crook. handing bags of cash to people who would give him inside information. >> if we had capital punishment for white collar crimes, i'd say he would be a prime candidate. >> ivan boesky arrived in court to hear himself described as a man whose arrogance has been stripped away. there's no doubt the man has become a symbol of what's wrong with wall street. >> the news of the boesky indictment was like the bombshell of the decade on wall street. >> what do we call greed the day before an indictment is filed? if you get my meaning? >> i'm afraid recently, we've called it success. that some of the people who have now turned out to have engaged in criminal activity, such as ivan boesky, were being hailed

as heroes while at the peak of their careers. >> many of america's small investors have been appalled at the boesky affair. >> i think they should get every one of them, put them in jail. >> since 1954, there have been more than 48 cases of insider trading brought by new york 's attorney general, rudolph giuliani. >> he had the aura of being the best man in law enforcement to do it. >> if you do get caught, you are going to lose your liberty and go to prison. >> today as the prospect of a much wider scandal seems certain, the market was off more than 40 points. this after it was learned that ivan boesky was talking, and then some. >> as one former s.e.c. official put it, this is like arresting the madame of a brothel and finding her private book of clients. >> this guy boesky takes a fall, and all over wall street they're practically jumping out windows. it comes out he's been taping his phone calls and maybe his private talks for three months.

and wall street big shots begin wetting their -- well, you get the idea. >> of course ivan boesky was guilty. there was going to be no defense. all he had was bargaining power. who could he deliver? >> let me ask you this, levine was a fish, boesky was a shark. who's the whale they're going to catch? >> i don't know. >> drexel burnham? >> well, that's possible. >> in the middle of all this is drexel burnham lambert. until a few years ago, a little-known wall street firm. then it shot to the top of this high-stakes world by specializing in so-called junk bonds. high interest but also high risk. >> the commission says drexel and the head of its junk bond department, michael milken, made a secret deal with convicted stock swindler ivan boesky to make millions of dollars illegally. >> california company wicks told them they were planning a takeover. boesky bought the stock before it went up, shared the profits

with milken's firm. but the bottom line is milken betrayed his client, charged a million-dollar fee, and secretly earned $6.5 million more at the client's expense. >> authorities are worried that further disclosures resulting from the boesky affair may weaken public confidence in financial markets and weaken the markets themselves. >> i just came from inside. looks like a madhouse. >> i guess the bull market's over, huh this. >> it's a bloodbath down there. >> they're calling it the monday massacre. the worst drop in history. >> i call it the nearest thing to a meltdown i ever want to see. >> by the closing bell, the dow jones industrial average was down more than 500 points. >> this is a crash that people hadn't seen, frankly, since the gray depression. no one had seen the stock market fall that quickly, that fast. >> paper losses of more than $500 billion. october 19th, 1987, wall street's black monday. >> that crash was one of the

first signs of how dangerous this new era could be. that what the market had given, the market could take away and it could take it away really, really quickly. >> there's only two emotions on wall street. >> one is fear, the other is greed. usually we have an excess of one or the other. we have now, i think, an excess of fear. back then we could barely afford a hostel. i'm glad we invested for the long term with vanguard. and now, we're back here again... no jobs, no kids, just us. and our advisor is preparing us for what lies ahead. only at vanguard, you're more than just an investor you're an owner. giving you confidence throughout today's longer retirement. that's the value of ownership. before treating your chronic migraine— 15 or more headache days a month, each lasting 4 hours or more you're not the only one with questions about botox®. botox® prevents headaches in adults with chronic migraine before they even start—with about 10 minutes of treatment once every 3 months. so, ask your doctor if botox® is right for you,

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we always do. it's just a question of when. my guess is it's probably 1989, rather than 1987. >> a little present for the new president. >> presidents always seem to manage to get that as their gift after the inaugurals. >> i promise you, if congress tries to raise taxes when i'm president, and you know they will, i'll say no. they'll try one more time and i'll say no. and if they try a third time, i'll stare them right in the eye and i'm going to say to them, read my lips. no new taxes! >> in 1988, george h.w. bush is running to take on the reagan mantle. read my lips, no new taxes. >> when ronald reagan left the white house in january, he also left george bush holding the ball, filled with an assortment of staggering problems. >> when the president calls, some come running. all agree the savings and loan crisis is an urgent problem. >> could the s&ls be bailed out without a tax increase?

is there any other way to do it? >> i don't think there is, and that's becoming the conclusion of most people. >> bush had to fill this smoking hole left by reagan for him, and the only way to do that is pass new legislation because now we had to start dipping into taxpayer money. >> the senator says only bailout will be for depositors, not for bad bankers. >> no one needs to worry about one nickel of their money in these institutions. >> this legislation says to tens of millions of s&l depositors, you will not be the victim of others' mistakes. thank you all very much. and now i'm proud to sign this monster. >> essentially, george bush is covering the biggest overdraft in history. >> bush caves. he raises taxes. that kills him politically, but saves america economically. >> listen carefully to this number, $500 billion.

that's the latest estimate of what the failure of hundreds of federally insured savings and loans will eventually cost american taxpayers. >> mr. keating, how soon can you make bail? >> no questions. >> the once rapid growth of keating's failed lincoln savings of california had been fueled by worthless bonds. the majority bought by seniors, many losing their life savings. >> where's my money! >> charles keating was convicted in two trials, but both of those verdicts were overturned, and then he pled guilty to avoid a retrial and was allowed out for time served. >> the climate had gone from celebrating the excesses of wall street to condemning them pretty quickly. >> tonight's headline, milken pleads guilty in what may be the largest individual case of fraud ever to rock wall street.

a case which ended in a plea bargain with the government. >> judge kimble wood said milken's crimes merited his removal from society. she sentenced the one-time king of wall street to ten years in prison. >> he didn't go in for anywhere near that. he did go to jail for just under two years. i'm confident when he left, he was at a minimum a billionaire, quite possibly a multibillionaire. >> the game of monopoly could have been invented for donald trump. but monopoly is a tricky game. when you borrow $2 billion and the economy goes into a tailspin and you can't pay the interest on your loans, the bankers move in. donald's $100 million yacht goes to the boston safe deposit and trust company. his half interest in the grand hyatt hotel goes to banker's trust. his trump shuttle goes to northwest airlines. the man who was the darling of the '80s is seen as a man in trouble, and he knows it. >> insofar as we can say that

the '80s was a period of hedonism and excess, the end of the decade was the hangover. >> it's more like the rich are taking a tumble now. >> leona and harry helmsley, one of the richest couples in the world, were today treated as common criminals. booked in manhattan for tax evasion and extortion. the government charges the helmsleys rep elevated their $11 million estate and wrote the cost off as a business expense on their taxes. >> a former housekeeper said mrs. helmsley told her, we don't pay taxes, only little people pay taxes. >> helmsley was sentenced to four years in prison, given a $7 million fine, and ordered to serve 750 hours of community service. to some, the sentence was too light. >> i have done nothing wrong. i'm innocent. my only crime is that i'm leona helmsley. >> no matter how many white collar thieves get sent away, no matter how long they're locked

up, the public will still be paying for this long after they're out. >> so what did the 1980s add up to? we put that question to a fair number of people and more than 95% of them said simply it was the decade of greed. >> well, we learned that greed may be good. but too much greed is bad. and that sometimes people on wall street get a little too greedy. but they learn their lesson, and they would never do it again. >> some argue that today's bright spotlight on unethical behavior has exaggerated the problem. but there's no denying the problem is real. and if we excuse unethical conduct by saying, well, everyone does it, or it's really okay unless you get caught, or it's not against the law, we miss the point of why it's important we not do it, period. the point may be no less than national survival, as a people who can live together honorably. if we let lying, cheating, and

stealing become an accepted way of life, it's not just a few dollars that will be lost, it's the spirit of the country that will be lost. the decision is ours. ♪ we have intelligent machines creeping into our daily lives. it's going to be a new world out there. >> the popularity of these video games is nothing short of a social phenomenon. >> personal computers, walk-around stereos, automatic cameras, mobile telephones. >> a major moment in the history of flight. >> the experts tell us all of this is just the tip of the iceberg of what's to come. >> there's literally a hyper culture that is developing. almost a cult. >> we are no longer on the verge of the personal computer revolution. we are right in the midst of it, thank you.