what's known in the sport as a massive ever verse she clenched the world number one spot for the fate and the highest single wave score of the event so far a near perfect 9.9. you're watching data many days from but end up next on dr phil looks at our risky financial systems and asks if we're waiting for a new crisis more news headlines at the top of the hour don't go away. their story their very own personal drama. the people who survived the catastrophe remember. and they share private footage with us that has never been seen before.

chernow little church people 26 on w. . i bought it in. the midst. of. this i was told i just took up to. 3 credit cards. result all notebook out ok. the other not. the up result no new. thoughts about that just the ball. further. the fact that. you know. it was you know emotional.

ah. i. see you also believe that your credit cards a cursed and this an all powerful financial sector controls our existence jellicoe show us now come on mon enfant. be overwhelming myself the financial sector is increasing and more crises are on the way again. i'm on the other. you know. hours later in this space to define interest sector in the real world continue to drift apart so the next crisis will likely be worse than those that came before at least finance ended up becoming the

master of the economy not the servant how could you not be happy the way in which tens of millions of people were thrown into misery and unemployment and the banks which guaranteed the incomes of the idea were subject to such generous rescue. even to future crises look like it's impossible to say but a crisis always hits the weakest guy hardest. and if it is this the end things don't look so good. this is the story of a divorce the end of a marriage of convenience between the financial sector and its customers between average people and bankers over the last few years trust between the 2 sides has declined and they are further apart than ever but the financial sector this. well

during business as before and its influence on the global economy continues to increase. many believe that this imbalance is responsible for the numerous crises that plague us today. the 20072008 financial crisis and the austerity policies that followed political crises that have shaken democratic societies and the climate crisis that's now making headlines. in the financial sector controls billions of dollars that can have a serious negative impact on large numbers of average people. has the financial world taken us hostage. past when did politicians lose control of the financial system and will we be able to deal with the next crisis. lets see what sort of options are available and alternative system is not only

possible it will be essential if we are to muster the challenges that lie ahead. as finance esteem the financial sector is enormously important for any economy for small for it like i think the financial system is a human party steamboats copy tough to resources the white blood cells are all kitchen and nutrients from one part of the body to the other of the u.s. gulf of i like distribute these materials throughout the system and i'm buying on them got us a cup at a time. seal of the us could work there. if you know the original function of this sector was to finance a country's economy. and to provide support for individuals companies and. to

sions in times of financial difficulty. let's say your car or refrigerator breaks down if you don't have the money for a new one you can borrow it to see what the primary task of the financial sector is to make that money available in addition it also promotes investment into production some of the profits that results are then used to repay that investment so the financial sector helps people and businesses to invest for the future that's one of the fundamental and very positive aspects of a market economy. there is no finance without credit and no credit without a bank. yeah the good old bank advice is they manage our savings and provide us with financial advice and support for the invoke you for to understand how a bank works today we have to move away from old ideas. was frank's don't just

manage the money of average people and then lead it to investors who take risks and he said i hope that other banks borrow money from other market institutions to reinvest much airports retail with that's how banks have become more and more dependent on the financial market system so she also has that as a result banking has become more unstable more productive lives of crashes. by the banking sector now has a larger presence in our society than it used to count of new a vocal christian kind of the necessity finance in the 20th century the came in and in itself essentially money started moving and these never ending lives and finance his became made money by using money to make more money should. you're going to. actually. asia and. if you don't see it if you just let bankers and financial experts do what they want the same thing always happens before they can. pete with each other and take huge risks that

creates a speculative bubble then the bubble bursts and banks run out of money and stop lending businesses and consumers can't get the loans they need loans are the lifeblood of the economy and if that blood stops flowing there will be a collapse. in other words the financial crisis. help prepare for future crises it can be helpful to take a closer look at the past. the 1st major documented financial crisis was the so-called mania in holland during the 17th century lips had recently been introduced in europe and became quite popular a speculative bubble developed when future contract prices. went through the roof. the value of a single chewed it will eventually reach that of in succession account several pigs

a mansion and finally. speak the speculation continued until feb 16th $37.00 when the bubble burst people figured out that it was insane to pay that much for a tool a bowl so they stopped buying it and the price collapsed to. boom and bust cycles came and went regularly over the next several centuries but they always followed the same pattern in a financial wizard discovers a new way to make money the speculative bubble forms and then bursts and the financial crisis follows speculation in stocks led to the wall street crash of october $929.00 which in turn signal the start of the great depression the us unemployment eventually reached nearly 25 percent the president at the time franklin delano roosevelt sought to restore confidence by regulating the financial sector including the bang. a well regulated financial

sector will hope to keep an economy stable and what you do just from the 850 s. until today there were numerous financial crises in various countries around the world with one exception they were almost none between 19451975. why is that. because all countries followed roosevelt's example from the 1930. they imposed regulatory measures on the banks both at the national and at the international level. when the so over a period of about 30 years there were almost no financial crises 0. so everything was fine order was restored in the financial markets economies were stable and citizens could enjoy the benefits of prosperity. that is until the

global financial crisis of 20072008 banks extended credits hand-over fist politicians to the other way. bubbles formed. what was happening in finance before 2007 was that you had a tiny try specialists who controlled a technology that nobody else understood it to do with the repackaging of financial instruments. and this they had sole control of this technology and this knowledge and because they spoke a language which was completely uncomprehensible to anyone else i used to say they spoke financial latin the priest and the medieval catholic church and because this language and this knowledge was making them very rich they became incredibly arrogant and incredibly dominated by. what i call tunnel vision they simply

couldn't see out of that tiny little worlds and couldn't see the consequences of what they were doing if you'll see their methods are so complicated and then comprehensible about the that the regulators just let them do whatever they want it pretty fast given. traders used to practice called securitize ation just so packages of debt including s.p.f. these c.d.'s and c.d.'s this many were based on some prime mortgages so the market soon became flooded with these debt products and eventually collapsed but how exactly did that happen how did these the wolves of wall street get away with it and had to jump onto the genki city of rupee you design is in the 1970 s. the theory of official markets became increasingly popular. it says essentially that markets should be allowed to regulate themselves. according to this theory markets will operate more efficiently because those who actually work in the

financial sector know the markets better than the government regulators the. priests. even the most progressive. lawyers. or in law firms all the students that we teach for a long time the fallen for the belief so the goal was to make markets more efficient the goal was to ensure that shareholders and corporations can really control what's going on and so if you give them all the right incentives the right outcome will happen. but that didn't work. because these periods of euphoria and crisis are based on a kind of collective irrationality of the financial players are no longer able to work out solutions among themselves and not so outside intervention is required then just abuse issues. in the subprime mortgage crisis shed light on a dark corner of the financial sector traders for making deals that were so risky

that they threatened the u.s. economy. the u.s. and europe were rucks by this crisis those responsible were facing possible criminal challenges on the world leaders who done little to prevent the collapse then promised to steady the ship. we brought the global economy back from the break we laid the groundwork today. for long term prosperity as well as long term prosperity is an ambitious goal even in the best of times the leaders agreed to ban extremely risky transactions and ordered banks to increase their emergency reserves. that top priority was to rescue the world's banking system central banks would play a key role in this effort. the u.s. federal reserve fired up the printing presses pumping more money into the ailing economy. and. close it is also

a choice is this song to stop other central banks in their current form have only been around since the end of the 19th century so distribute us the ability to declare primary function is to keep prices and currency stable and to guard against inflation and stock market crashes thank you for. not central banks are the link between politicians and the financial system in the states so. these institutions regulate that system so that it doesn't exert too much influence on society toll. some of. the european central bank started lending huge amounts of money to individual banks because they were too nervous to lend to each other. and while the e.c.b. dealt with this situation more trouble appeared on the horizon. you know. what. if you 9 europe the global financial crisis was followed by

a 2nd emergency and this involved the european currency it exposed weaknesses in the financial system as a whole and problems with sovereign debt in particular because. it started when greece revealed that its finances were in worse shape than previously thought to. this crisis spread throughout the eurozone and raised serious questions about whether the common european currency could survive if i just. couldn't even by the investors and italy spain and even france panicked and tried to dump their government bond hall says or president mario draghi then made a policy statement that would become famous. draggy soon became known as super mario for his role in dealing with. the crisis he dismissed speculation about the end of the euro and the solvent see if individual a you countries. within our monday the z.b.

is ready to do whatever it takes to preserve the euro. and believe it will be enough to. do whatever it takes to get the 2 of us notes for the saudi promise to take all necessary measures to protect the rock trying to put an end to speculation in the financial markets to frame down so still the politicians had failed to stop it so the e.c.b. had to step in to try to keep things from getting even worse and a few 1000 feel it is something that. is not against us it was a highly unusual move and some e.u. states criticized it especially germany there were questions about whether this decision was compatible with the e.c.b. mandate but others said it was the most successful monetary policy measure ever because it calmed the markets and the policy itself was never fully implemented that's what's so unusual about it. and the.

by law the e.c.b. does not have the right to finance a government that feels by the time druggy said i'm not financing sovereign debt i'm buying promissory notes from investors but he was obviously financing the sovereign debt of e.u. states through the e.c.b. his goal was to curb inflation and promote economic growth and create jobs. to sum it up the central banks in europe and the u.s. spent huge amounts of money to bail out the banks and restore some order to the financial sector. and what was the result did all that new money strengthen the global economy they did not in fact he did just the opposite sex. government debt soared as a result of the crisis central bank balance sheets will never look the same again interest rates of plunged to 0 we have the threat of visit with the zombification

of a large part of the corporate sector which is being kept alive by extraordinarily low interest rates and growth rates and productivity rate the growth rates of all fallen very considerably since the early 2000 and really quite dramatically since 2008 and so we're left with this deeply uneasy sense that we don't really quite understand the world that we're in we know it isn't the apocalypse but quite what kind of world it is is is very unclear. and there a fear is that a new financial crisis may strike soon because real reforms have not been imposed by you additional small hides. to them there have been no major changes in the way that banks operate you know serious changes in the structure of the financial systems to if you don't see them for you know the same situation that led to the financial crisis of 20072008 is still in place on fats no one is addressed the

problems caused by financial imbalances. so instead of making a fresh start the politicians just poured more money and financial instruments into the system have a can call. them as you know one that the measures that were taken did not go far enough in the most important they did nothing to address the growing divide between the financial sector and society as a whole so now part of that sector no longer serves society but pursues its own interests exclusively any point. that. many average people feel betrayed that tax money helps a bailout the banks that consumerists got nothing in return and. the losers are the populations of europe in the unite. states which suffered the immediate effects of the fallout the 10 to 11000000 american families that lost their homes this is the largest forced movement of americans since the dust bowl of

the 19th thirty's and in the eurozone even more cheaply than the millions of people who were driven into unemployment between 200820132014 where government policy really failed to respond in a way which would have enabled them to escape. don't realize how much the financial sector affects their lives they may experience some aspects of it but they don't realize how much damage a financial crisis can do when we keep having these crises because no one wants to push through reforms and we all pay a price for that again only. why has our financial system become so unstable we seem to have learned nothing from previous crises the regulators seem powerless to fix things and the next financial disaster could already be in the works. after the financial meltdown of 207-0008 the politicians

focused most of their efforts on regulating the banks but other sectors of the economy may be on shaky ground as well now to the use of warden bank. after the crisis the authorities imposed strict regulations on the banks this was expensive and time consuming for the banks so a lot of them shifted some of their transactions to non-bank institutions where there's less regulation and. the gift shop in banking sick this is called the shadow banking sector but that term is misleading these non-bank companies don't really operate in the shadows they include insurance companies and investment funds and they pretty much regulate themselves. a shadow finance. the system where traders far from the prying eyes of regulators buy and sell all kinds of financial products and in broad daylight.

the shadow financial sector has become a bit more transparent in recent years but here continue to flow into it. a lot of this money is parked in tax havens which are often difficult to trace. he's not holding back savings are opaque no one knows how they operate or how they finance themselves jacks havens create more risk in international finance and that can lead to instability if you know one of the ironies of what's happened the last decade is that the crash of a banking sector was a crucial reason why the last financial crisis happened and essentially you'd think that because of that and the year is off the crisis regulators would have shut down the shadow banks and there was some decline initially but in reality the shadow banks in some ways becoming more not less important to. the

regulators do more to rein in these financial institutions. the own said to that question is complicated. there are several reasons why it's so difficult to impose reforms in the european financial sector from finances the 1st financial institutions have to be able to compete on a global basis. germany people know what's happening in the u.s. will i usually just market strategy accordingly so that they can compete effectively and cottonwoods in the u.s. we're seeing a trend towards the easing of regulations on but. this would allow them to take more risks for time which would give them an advantage of european. boller so we need a global solution you are live on all if you know all banks and other financial institutions you should play by the same rules apply to what will be most you know the 2nd big

problem in europe is the financial sector lobbyists have a powerful influence on the politicians or be. inforced but. at the european parliament in brussels there are 3 times more lobbyists than politicians these lobbyists are often recruited at handsome salaries from governments around the private sector so they know quite well how the game is played. when politicians at the national or european level are writing legislation there's a lot of input from experts and when it comes to legislation that affects the financial sector the experts are often people who work at banks or investment companies financial institutions consider themselves quite innovative they keep coming up with new ways to make money and they're often one step ahead of the

regulators that. let's be honest average folks tend to take the word of experts face value that's especially true when it comes to the financial sector most people don't take the time or make the effort to understand what's really going on that needs to change. first of all we have to take the mystery out of finance it has anchors and others have to stop using jargon so that average people can understand what they're saying and doing. what the financial sector has to become more transparent than men yeah a cell phone on the shores. today more and more people are taking an alternative approach to finance. they generally opposed to the big banks and they encourage people to learn how the system works. from.

that 6. they're trying to design with the invention and also little by little people are trying to take the mystery out of the financial sector. are trying to approach the subject in a way that's more interesting and less technical. and wanted to do many of the. conversational skills. that he also back to the financial sector affects the lives of all of us our environment our food our health care system and our children's education that's why we need to have a say in how that sector operates we have the right to demand accountability from these people who are more. than.

you know why do the euro kratz and the politicians in the brussels bubble behave the way they do why do they make policy decisions that seem completely absurd to us . they all stick together and very often don't leave that european bubble at all so they have no contact with the outside world then ok maybe that's why their policies that seem completely detached from reality. to the words banking and finance make a lot of people feel insecure. they don't understand the technical terms and they can talk about it with any level of expertise. but we have no choice we have to get involved with the financial sector and as quickly as possible future developments could have devastating consequences for the global economy for example there's been

a big increase recently in social inequality. and many middle class europeans and americans who were hit hard by the last financial crisis are still angry about it. there's this sense that this is no longer exist that can really maintain the plausible fiction that we're all in this together basically in the same boat and that economic growth raises everyone's standard of living in a way which is broadly speaking similar that's just a counter to fact as an experience of the last 2030 years so if you don't follow christian also other than you said. 220072008 financial crisis fueled the protests in the political anger that are spreading across europe today. because those who caused the crisis actually benefited from it. the huge amount of money that was pumped into the markets not this market this one did not stimulate

the economy it just prompted more speculation that. sarah. who live in countries like greece spain italy or ireland are growing increasingly angry one because of the harsh austerity measures that were imposed there after the eurozone debt crisis. then there's you they can be tied you can hear them as always countries accepted those measures in return for loans from the e.c.b. and other e.u. countries to help them get their economies moving again. so the bank bailouts have added to the debts of governments corporations and individuals. it also undermines the confidence of average citizens. and that's one of the big lessons of the global financial crisis just words and music in our banks and investment took big risks they said if it goes well it will make a huge profit if it doesn't the taxpayers will get stuck with the bill that straight

through authorities have to deal with this imbalance and crack down hold of them i did before that's right no banks and other financial institutions was doing making risky investments because they know they won't be called to account and you know. the finished product. that certainly appears to be the case. bankers hardly ever face criminal charges and convictions are few and far between. it seems that society is prepared to tolerate this kind of behavior average people pay their taxes but the big banks promote tax evasion schemes for the wealthy. to a certain extent it's been a story about the elite attaching itself so most of these products in themselves were not actually breaking the law because they were designed to exploit weaknesses

in the law quite deliberately and they were designed to ploy weaknesses and the regulators play roles as well when you look at a contract for an asset backed security in the 1970 s. it might have like 4 or 5 risk warnings for investors when you look at a similar document in you know in 2007 just before the crisis it's now 3 in the pages long rather than 50 pages long it might have 60 or 70 risk warnings so the lawyers once they figure out that something might be risky they will write this in the contract basically telling investors watch out. but the investors never read what they read only once the crisis hits and the laws of course have made sure that they themselves and their clients are protected by disclosing the. last is until they use mathematical models that are supposed to be innovative but they are actually used to evade taxes and get around regulations this is abuse on

a grand scale. the doing of all secured once again we're dealing with a double standard and let's be honest this situation fuels populism and undermines democracy it actually damages democracy it will cause i thought i did a class. somewhat to people do when they're angry and feel left out of the democratic process and they vote the rascals out of office and replace them with politicians who promise them the world but do nothing to promote harmony and consensus this in turn made to instability in the financial markets and could trigger a crisis. the current atmosphere of political instability comes a time when it's never been more important for the world to address our biggest challenge climate change. some experts say that we only have 10 to 20 years left to save our planet by radically changing the way we produce and

consume energy. these measures could cost up to $1.00 trillion euros a year in europe unless. finance is a part of the problem in the climate crisis because finance goes after the assets that produce the greatest return and if oil or coal or any of these assets produce returns then investors will go and invest in these assets and share prices. creams others will follow in the companies can expand they have the resources to do so central if we're serious about the climate change push we need to whatever it takes moment we need central bankers to actually create to the employee the enormous power that its disposal finance could easily be part of the solution will government spend as much to control climate change as they did to bail out the banks. shouldn't we demand that they do this. to do good the

rush to the soon enough if you will see the menu stead of just buying back securities at random in financial markets the european central bank could use its monetary policies to promote activities that could help prevent climate change or do social inequality. in the. state should encourage the e.c.b. to direct its monetary policy towards achieving these goals if. it. forces the financial sector became the driving force behind this transformation. some financial experts are getting on board with these new ideas. new good hearted pathetic a few years ago mark carney who was governor of the bank of england at the time gave a surprising speech. she said that he was concerned about risks that people in the

financial sector are taking do you think but he was even more concerned that one day because of global warming their clients will be hit hard by climate change and won't be able to pay their debts. he said that failure to deal with global warming will lead to instability so the financial sector has to take action he added that regulators including himself will keep a close eye on that and the future will pre-placed goofy. but measures to limit climate change will be expensive one u.n. official put the cost at $300000000000.00 a year that amount is doubled. in less than 2 decades some in the financial sector now realize the threat posed by climate change there's a whole new branch of finance developing which is trying to take a much more responsible than a finance and they're doing that partly because some bankers believe in it partly because many of their clients and they want to basically reshape the image of father in the 21st century but also because people are realizing that issues like

environment they can touch on the prices of assets going forward and the financial system has to get ready you can say being cynical that that's just a kind of cynical game and people are doing green writing and pretending to embrace these ideas or you can say actually revolutions happen when more people think it's dangerous to stand aside than to get involved. so what if we're wrong on the financial sector is not our enemy it could turn out to be an important ally as we meet the challenges of tomorrow. what role can individuals play in all of this. it's not enough to know how much a $100.00 euro investment will yield at 10 percent a year people have to study the financial system and learn how it works. need to

learn that banks play a key role just like the money that we invest with those banks. it good news evil will have to take an active part in the democratic debate about the future of the financial system and i mean this is what i feel the whisk of a book obvious to find out more about which markets your bank invests. take a look at your bank's ethics policies and if they don't match your values switch banks on the over though that's pretty easy to do these days. there were just fear it's crucial to improve people's understanding of the financial sector team out on . you mentioned many don't realize that if they don't know how the system works they can't invest their money properly to answer me. what's the best way for people to educate themselves about the world of finance the textbooks are much better than they were 20 years ago but today there are other ways to learn like a visit to this interactive museum in paris what do these economic students think

about the current state of the financial sector but they consider a career in finance shark segovia's each terminal corresponds to one player in the economic cycle. if one of them fails it can knock down the others this is why terminal represents the financial regulators they can put a stop to this chain reaction. the memories of the crisis have definitely dampen down some of the crazy extremes and taught a new generation of finance is to be a bit more cautious. of what every educational program should include courses on deontology and ethics and not just theoretical principles but analysis of specific financial scandals you could cite examples of conflicts of interest and ask what would you do in this case just to feel good i. think out

the financial sector needs to improve its record on dealing with issues of ethics and it also has some catching up to do when it comes to gender equality you know the next could you see yourself working as a trader who had no i have it looks exciting but it's not a job for a woman. do you think women can't make such decisions some or don't care they can't . can you imagine making those kinds of decisions a sponsor this is your response i could but i wouldn't want to work with people who don't share my values points to their thinking culch. traditionally financial trading floors have been dominated by men mostly white men and that tends to lead to an excess of telstra and risk taking and potentially negative behaviors but aside from that having just one type of person on trading desks means that you have again tunnel vision but the good news is there are more women coming out to finance

and that is definitely to be celebrated in maybe one thing that helps to give a slightly more balanced perspective just silence in the coming years. 98 percent of the world's banks are run by men but more and more women are breaking through the glass ceiling and moving into the top ranks of global finance like e.c.b. president christine legarde and u.s. treasury secretary janet yellen. now that's a load won't revolutionize the financial world. but we can hope. it's not likely that the world could handle a new financial crisis right now there are 2 options we can continue to widen the gap that separates average people from financial institutions or we can return the financial world to its rightful place where it can help us to build the society

that we want but we can't do that without the bankers and we have to get involved oh no where do you see. the. good steward do you see this quote do i see what's this a crystal ball. now. at the moment. just because we're going to y.c. . over how many years and. i know when i see a wonderful future i think we're way too pessimistic to divert the seat when i see people rebelling against the financial system he knows little because they no longer wanted to destroy our present and our future he does present it won't be out there may this negate the system will continue the inequalities will increase and so will the protests the social buffets and all this will not encourage progressive forces in our society has gone the society i also see

a world where technology companies man up finding the next big shift of finance and frankly what people like facebook and apple teammates are going to push on what i see is a storm what i see is these type what they see is whether what i see is that constant churning and those are natural images and i'm hopeful because the natural feeling cold states receive all the cia agent down from the scene i need a relation it's not financial crises all relatively small banks. have. been good shape. no doctor foreign wife and then you can visit virtually he's just sending his voice and his picture. diagnoses via video chat. back exercises with a tablet. it's even possible to see a midwife online. what are the benefits of digital health care good

shape. in 30 minutes on d w. we have important news. smoking is healthy pesticides are good for the being using global warming. doesn't exist. i don't believe those will not yet come to me you have degraded my mind. the. industry is controlling your thoughts here are 10 truly seeking to be rail science it's not easy to spot. the great books of the 20th century. present day hoaxes. and who's behind the.

manufacturing ignorance starts may 3rd on d. w. . this is the devaney news line from but then britain mourns the death of prince philip. bells toll gums will fire in sporting matches come to a halt in tribute to the 99 year old husband of queen elizabeth the 2nd plane look at how the country is grieving along with its royal family also coming out germany's chancellor takes control burn em says it will override state that is

imposed tough a national coronavirus restrictionist. class of volcano rolls time.