they. are citizens to. central banks in their current form have only been around since the end of the 19th century so distribute us their beauty to the player 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. so. these institutions regulate that system so that it doesn't exert too much influence on society. so shifted also now some of. the european central banks 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. in europe the global financial crisis was followed by

a 2nd emergency and this involved the european currency system so it exposed weaknesses in the financial system as a whole and problems with sovereign debt in particular those figures and. it started when greece revealed that its finances were in it worse shape than previously thought to. this crisis spread throughout the eurozone and raised serious questions about whether that common european currency could survive. occur and. investors and italy spain and even france panicked and tried to dump their government bond also as. 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 on the sofa and see if individual. countries.

within our monday the z b is ready to do whatever it takes to preserve the euro. and it will be enough. people do whatever it takes to get between us know what food issues job the promise to take all necessary measures to protect the euro rock trying to put an end to speculation in the financial markets so for him donald social 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 teeth should be something that. is not against 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 government 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 fossils in opera. 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 they did the opposite. government debt sold 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 are fears that a new financial crisis may strike soon because real reforms have not been imposed by you additional small hides. and there have been no major changes in the way that banks operate you know serious changes in the structure of the financial systems to finances them feel the same situation that led to the financial crisis of 20072008 is still in place. no one has address 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 and they can call. them as you know one of the measures that were taken did not go far enough and most important they did nothing to address the growing divide between the financial sector and society as a whole that is so now part of that sector no longer serves society but pursues its own interests exclusively. that. of. many average people feel betrayed that tax money helped to bail out the banks but consumerists got nothing in return and. the losers are the populations of europe in the united states which suffered the immediate effects of the fallout the 10 to 11000000 american families that lost. holmes this is the

largest forced movement of americans since the dust bowl of the 930 s. and in the eurozone even more acutely 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 the. company says you 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 i damage a financial crisis can do and we keep having these crises because no one wants to push through reforms and we all pay a price for that once again only to see. 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. these are the gift shop and banks and 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. as shadow financial system where trade is far from the prying eyes of regulators by all kinds of financial. products and in broad daylight.

the shadow financial sector has become a bit more transparent in recent years but here huge sums continue to flow into it . a lot of this money is parked in tax havens which are often difficult to trace. 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. one of the ironies of what's happened the last decade is that the crush on the 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 banking always 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 sectors finance is the 1st financial institutions have to be able to compete on a global basis. in france or germany always people know more is happening in the u.s. well i usually just market strategy accordingly so that they can compete effectively when cotton was in the u.s. we're seeing a trend towards the easing of regulations on but. this would allow them to take more risks which would give them an advantage over european. boller so we need a global solution i live on. and other financial institutions should play. the same

rules apply that will be most in the 2nd big problem in europe is the financial sector lobbyists have a powerful influence on the politicians will be. enforced but. at the european parliament in brussels there are 3 times more lobbyists than politicians these lobbyists are often recruited to handsome salaries from government and the private sector so they know quite well how the game is playing. 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 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 bankers and others have to stop using jargon so that average people can understand what they're saying and doing. the financial sector has to become more transparent jackie said and then yeah a cell thunderstorm. 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.

oh they're trying to design with the invention also little by little people are trying to take the mystery out of the financial sector. and we're trying to approach the subject in a way that's more interesting and less technical no one wanted to do you need to. know. this problem you know. that's you know it's a well known fact the financial sector affects the lives of all of us our environment our food our health care system and our children's education and that's why we need to have a say in how that sector operates we have the right to demand accountability from these people more.

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 6 together and very often don't leave that european bubble at all so they have no contact with the outside world then ok that's why their policies that seem completely detached from reality. about this war are found in the words banking and finance make a lot of people feel insecure but. they don't understand the technical terms and they can't 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. many middle class europeans and americans who were hit hard by the last financial crisis are still angry about it. this sense that this is no longer an economic system 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 so well that's just the counter to fact as an experience of the last 20 to 30 years so if you don't follow christian also under the new set. put 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. 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 the economy tide you can hear them is 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 undermined the confidence of average citizens decided to lead and that's one of the big lessons of the global financial crisis just words and music are banks and investment for 2 big risks. if it goes well it will make a huge profit because if it doesn't the taxpayers will get stuck with the bill if

it's your thirties have to deal with this imbalance in crackdown hold of them i did before that's right no banks and other financial institutions was done making risky investments because they know they won't be called to account. of at least a 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 protecting 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 spoil weaknesses in the regulators the rules as well when you look at a contract for an effort 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 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 isn't initials 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. than do evil 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 democracy so i thought i'd give a class. on what do people do when they're angry and feel left out of the democratic process they vote the rascals out of office and replace them with politicians to promise them the world but do nothing to promote harmony and consensus this in turn leads 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 alone. finance is part of the problem in even the climate crisis because finance goes after the assets that produce the greatest return and it's all a coal or any of these assets produce returns then investors will go and invest in these assets and share prices. creams others will follow and the companies can expand they have to be some sisters that are if we're serious about climate change push we need to whatever it takes moment we need central bankers to actually creatively employ the enormous power disposal finance could easily be part of the speech 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

with the cash to. the minute 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 getting. full. state should encourage the e.c.b. to direct its monetary policy towards achieving these goals if there's objective. forces the financial sector became the driving force behind this transformation. some financial experts getting on board with these new ideas. new good books on holiday pathetic not counting a few years ago mark carney who was governor of the bank of england at the time gave a surprising speech. shipley 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 the in the future the proper place to 5th. but measures to limit climate change will be expensive one u.n. official put the cost at $300000000000.00 a year that's the mountains 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 vision of 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 finance in the 21st century but also because people

are realizing that issues like the environment take in 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 order for this. life you know 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 to see people will have to take an active part in the democratic debate about the future of the financial system and i believe this is what i feel. 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 sent because each terminal corresponds to one player in the economic cycle. if one of them falls it can knock down the other as this white 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 to school so he. was.

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 in there's enough could you see yourself working as a trader who had the art looks exciting but it's not a job for a woman. do you think women can make such decisions so more of the cans. can you imagine making those kinds of decisions a sponsor this is your issue as much as i could but i wouldn't want to work with people who don't share my values today. 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 up with

violence and that is definitely to be celebrated in maybe one thing that helps to give a slightly more balanced perspective just silence 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 alone 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 pass 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. street or do you see what do i see what is this a crystal ball. of the most my thumb. because because we're going to y.c. . over how many years. i know when i see a wonderful future i think we're way too pessimistic to live with this shit when i see people rebelling against the financial system he knows little because they no longer wanted to destroy our present and our future of the evils plaza you know he will be out there made as negating the system will continue the inequalities will increase and so will the protests the social buffets him all this will not encourage progressive forces in our society was almost as if i also see

a world where technology companies manned up finding the next big shift of finance and frankly what people like is looking at home to next i'm going to push what i see is a storm what i see is what is tight what i see is better what i see is that constant churning and those are natural images and i'm hopeful because the natural feeling cold state cressida bonas simulation down from the scene and even relation to that financial crises all relatively small. is this art. or is it. just technologies. artificial intelligence create our need. to the future. nightmare. sure delightful to. die as an artist our

21. 30 minutes w. . more than a 1000 years ago europe witnesses a huge construction boom. christianity for only established itself. both religious and so. to their leaders or to display their power. to. create the tallest biggest most beautiful structures. or stone masons builders and architects compete with each other. for space home massive churches or create a. contest of the feel good. story.

oh b.t.w. . this is g.w. news the wire from berlin chad holds presidential elections with only one likely winner authoritarian leader interest dead he is expected to extend his 30 year rule just by growing signs of public anger over his handling of the country's oil wealth for the latest from our correspondent in chad also coming up on the show the battle to replace i'm go americal the 2 rivals expected to run for chancellor are making

their case in front of germany's conservative lawmakers our political editor tells us who's got the best chance.