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tv   The Dylan Ratigan Show  MSNBC  April 17, 2012 1:00pm-2:00pm PDT

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it is a beautiful day. i am dylan ratigan, and today's big story, the feds' secret scandal day 2. the request that i filed along with the staff here and the folks at the huffington post. in fact, on page 2 of the wall street journal today, references to those minutes, which are open to everybody to gander through, our friends say they've gone through the business documents. also running an accompanying story busting the fed for joking immediately following the collapse of bearenstain and bear brothers. and they said the only subject
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that has been more analyzed than the housing situation is brad and angie's engagement. remember, these transcripts are from the guts of the financial crisis. unfortunately, the rest of us aren't doing so much laughing. in case you missed it, here it is right under here, right under the papers. the binder from the board of governors at the federal reserve that sent it to us in an effort to comply with their rhetoric of transparency, offering theoretically insight into the feds' meetings. the 75 pages they sent us are pretty heavily redacted. however, we did discover a revolving door, or are able to draw more light two the revolving door between the federal reserve and the financial sector. fed board members meeting attendees from the financial crisis have since taken the
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privileged information that they have, although we're still not allowed to have it, to the banks in the federal sector. our partner, ryan grim, at the huffington post, offered this example. >> larry meyer started a firm called macroeconomic advisers, which has won a number of awards for successfully predicting macroeconomic trends. and they sell that -- those predictions, those forecasts, to clients for, you know, a serious amount of money. if those three folks that have been in those meetings take that information they know about the most powerful central banks in the country, in the world, and then go and set up a company that specializes in forecasting what the economy is going to do which is relate to do what the feds are going to do, and they make a killing off of it. so they have that information because they were in those meetings, weç don't. i was frankly surprised they sent us a binder at all.
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>> we start with a friend of the show, bernie sanders. senator, what is the legal protection that allows individuals who attend meetings like this to work as financial professionals at subsidized banks that have federal bank charters and yet the american taxpayer who pays for the whole thing even years after, we still can't get real transparency from the organization and the administration that claims to be so? >> well, dylan,ly -- i will tell you we are currently working on a group of economists reform bill. clearly the issue of conflict of interest is huge, and the issue of transparency is huge. the american people have a right to know what's going on, they have a right to know that people who are working for the fed are working for the best interests of ordinary americans, and when they leave the fed, they're not going to go out and make a whole lot of money with the information they have obtained. so there is a lot of work that has to be done in terms of
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transparency, in terms of openness, in terms of ending conflicts of interest, and that's something we are working on. >> we asked attorney general e beau biden of delaware about this. take a listen. >> transparency of fed, it's critical. we want to be in a situation where people from the private sector can go serve. there are very smart people in the private sector that want to serve this nation. they should be able to do that and return to the private sector. so i'm not bright line against that, but we have to find a way to do it so that those people who leave public service, they don't then go work forç the ve services they regulate and help that company get around the regulations that they promulgated. >> isn't that exactly what we have, however, senator? >> i think in many respects, you do. and i think that that is an issue that has to be addressed, and we intend to deal with it. look, the bottom line is, dylan, that the fed is an agency of
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extraordinary importance. frankly, one of the most important agencies of government. very people know what it does, the impact it has on society. that is why, as part of the dodd frank bill, as you know, we worked hard for the first one to have an order from the fed which, in my mind, brought forth some startling revelations that i know you're familiar with. we learned that $16 billion in every loan, central banks all over the world, large corporation nz ameris in americe of the goals we have to work for is to make sure the feds not only serve the needs of the financial institutions, six of them the gdp of america, but normal people, small business people. how do you do that? that is the real challenge we have to address. >> what is it that would incentivize the level of secrecy
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at the federal reserve. what are the decisions being made in these meetings that they would try to enforce such an incredible level of secrecy that they do, and why is it okay for something so secret, then, to be known by 30 to 40 people who noç work at wall street investment banks and using that information? i don't understand. >> you know what their argument would be if mr. bernanke was here, he would probably tell you that they need this level of secrecy because of information about the nature of the economy when the fed was planning to do a public tomorrow, it could cause negative impacts for the whole economy. having said that, i believe we can and should have a lot more transparency than we do right now. >> so if we accepted that rebuttal, which i agree with you that's an interpretation of the rebuttal, that is obviously not my authority to accept or reject that level of secrecy.
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but in the face of that level of secrecy, how is it appropriate for these people to be employed at wall street investment banks where they take big paychecks when they're dealing in such secret information? >> i believe that's a very good point. that speaks to conflict of interest. do you want to have the federal reserve dominated by folks who come from some of the largest financial institutions in america, go to the fed, leave the fed, go back to the financial industry. i think you would want to be very careful about that. i would also say, if i might, dylan, that the point you've made many, many times, if we're going to get this economy right, if we can reverse the decline of the middle class, we have got to focus on the fed, we have got to focus on wall street. one of the issues where i hope the fed would be more out spoken about is the need to break up these huge financial institutions, six of which have assets equivalent to two-thirds
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of the gdpç of this country. is that really good for america? is that really dealing with the issue of too big to fail when two of the three financial sn z institutions are bigger today than they were when we bailed them out. i would like to see the fed get involved in that as well. >> why wouldn't they? >> i think they should. the answer is conflicts of interest. who does the fed work with? does the fed work for ordinary americans, or is the fed heavily influenced by the big money interes interests on wall street? i think most people would assume the latter. >> a cultural analyst for me. i believe whatever money we make, the culture dictates the rules. russia had a full revolution, but if the culture is still to exploit, the culture will still be to exploit. when you look at something like the number of times laughter or
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the joking or the silliness of these types of notes, is that just pot shots for people like me that can run word searches, or is that the lack of seriousness or at least a lack of realization of how connected they actually are to everybody else? >> dylan, i really can't answer that. i don't know the context of that. is ben bernanke -- i voted, by the way, against bernanke being reappointed to heads of state. but having said that, am i going to tell you he's not a serious guy? he's a serious person. i happen to disagree with him. but the bottom line is, and it's a huge issue, and i'm glad that you are focusing on it because not a lot of people do.
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how do we make sure people that are appointed to the feds come from the background that understands the pain of the economisting econom inin inin i economical on wall street? >> on the one hand, the glass is half full, they did send us a binder. thank you, senator. we invite everyone, especially all those financial bloggers out there to dig into the minutes themselves. the full downloadable request is up at dylanratigan.com. thanks, too, for collaborating
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with us on the series. you can check out their reporting by washington bureau chief ryan grim at the huffington post. >>he on the d.r. show, a scandalous mega panel. day 2 of those infamous hearings. do we need more or do we need less government when it comesço solving america's problems? >> and something very special for you today. baseball history right here in our studio. fenway park about to turn 100 years old. and we have more than $1 million in memorabilia before it goes up for auction. with the spark cash card from capital one, sven's home security gets the most rewards of any small business credit card! how does this thing work? oh, i like it!
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the secret service sex scandal which also has implicated u.s. marines as well which adds insult to injury for the obama administration. usa news is saying not only did they charge the president of cartagena, but they bragged to the very women they were soliciting as to who their boss was. and peter king, head of the homeland security committee, said their actions could have
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put his security at risk. >> the basic rule of the secret service, you don't allow a potential enemy into your security zone, you don't put yourself into a compromising position, because your job is to protect the president of the united states. >> a compromising position. 21 hookers leaving a hotel room in cartagena. does that qualify as a compromising position, susan? >> just doesn't get any riskier. >> as far as we know. >> i mean, listen, you can do anything you want with this story. the very fact that it's being talked about is a fiasco for any president, any secretç service detail -- >> sure. >> what is the most useful -- if we're going to fritter a piece of cable air time and our time discussing it, what is the most compelling or useful thing that occurs to you? >> they need to change their culture. having worked in the white house, there is a party culture on the road, what happens on the road stays on the road, wheels
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up, rings off. we joke about it, but there is a culture. that's not to say that there aren't secret service agents who do an incredible job, and it's an incredibly stressful job, but there is a culture of permissiveness, and i think we see this anyplace where somebody has a certain amount of power. of course they were at the brothel bragging that they worked for the president of the united states. of course, they did. >> it's human nature, and it's particularly common in -- >> similar to something we've talked about before, these guys, they have a bit of power, but they also knew what the rules of the hotel were, so there was a little bit of that sort of sitting on the time bomb, waiting to get caught element to this that i think we have to ask ou ourselves about. >> were you like how long -- a sort of subconscious thing. what do you think, susan? >> i think at the end of the day we'll see this play out, and some of these guys will be found guilty. what happens to them will be really important. >> what do you think about a
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broader culture implication beyond the incident? >> this isn't the first time this has happened. it may be the first time in this country, but not the first time it's happened. >> there are a lot of employed prostitutes in this world, jimmy. that's because people like to pay them to have sex. >> i thought you meant a lobbyist. >> in other words,ç how much o this is behavior that can be extinguished from cultures and how much of this is part of cultures that is as old as time that is simply being revealed because of the connectivety of things like the internet. >> culture has learned, behavior has learned. i bet a lot of these men were married. i hate to break the news to their spouses. peter king is totally right on this issue. i'm in washington in 1992. i was engaged to a woman, i
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needed to get out of that. secondly, public service is huge in my family. i wanted to work for the government. i did that for almost seven years. there's something remarkably proud about that. people hate their government now, and it infuriates me -- in fact, let me put it out there. it pisses me off when this kind of stuff happens that can give the crazies on the left and the right the honor. >> at the end of the day, isn't that the way to fix the culture to actually fix the culture? they broke the law. >> if they break the law, then they should be penalized. >> whatever happens, it has to be done very strictly. they will have to be dismissed. even if it doesn't happen right away, there is a public zero tolerance for any of this behavior. we say right, but dylan, a lot of times that doesn't happen. >> and there is -- you know, we call it on the road opsec, op
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operationalç security. they did compromise op rati-- operational security. who knows the kind of stuff they had around, so i agree with jimmy, it's infuriating both because it's embarrassing but also, it is a security problem. everybody is trying to gloss that over because maybe the president wasn't endangered, but it is a security problem. >> it's a national security problem. >> that's exactly right. >> speaking of problems, on to the next scandal, shall we? day two of the house oversight committee on the gsa spending funds. that is designed to improve government efficiency through a culture of efficient hearings. he attended that efficient bash, and he was not only fired but
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was charged two g's for a party he had in his room. >> there were excessive costs that never should have been incurred. i have been removed from a job i loved, and i owe my federal apology that people in the gsa acted as they did. >> it is not just members of the agency, however, coming under fire. it's one influential member of congress. he claims the white house knew what was going on and did nothing about it. >> by themselves, will bring gas prices down overnight. but it will prevent market manipulation. >> that in cable news is what we call the wrong sound çbite. if you're confused, you should be. because i said one thing and we put a different piece of videotape on. it's confusing, but we still know what we're talking about. that was -- the thing is, 4:00
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in the afternoon, people get a little sluggish at work, we have to test your brain. it wasn't a hard test, but it was a big contrast. one is gsa, the other is oil and the presidency. so errors in judgment sound to me like a problem with the culture. >> indeed. and people are always sorry once they get caught. we've heard that time and time again. i left the job i love. i bet you did love it if you got to take those kind of trips. >> i wonder if he got the $2,000 from the trip he took. >> there is a false narrative in this country that says the big government is corrupt, and the only way to get rid of a big
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corrupt government is to make it smaller, then that will solve all of our problems. notwithstanding the fantasy of that, i believe it's too simplistic and it doesn't accurately represent what would happen. the fuel for those that would simply indict the government as krup corrupted, i prefer to do it for their treatment of energy companies and the rest of us. how much does it make -- how much more difficul( does it make us to have a real human conversation about having an effective government as we wall owe in the morass of this type of nonsense? >> i think part of the challenge of this coming out in election year is that the morass is wrapped up in, no, it's your fault, it's your fault, rather than finding out what exactly happened, what is that culture and how do we change it? >> i don't want to get focused on the incidents. how many hookers were there? how much money -- well, hang on a second. you've obsessed about the
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incident, but in the process of the incident obsession, we act pervasive that is the soil for the emerged. it's the culture of the system. >> like you said, whether it's $820,000 for a junket or them spending $3500 on lunch -- >> or accepting $30 trillion from the banks. >> or that. the whole point is, it was within the institution, and it's also that institution that people are getting so frustrated with. you're talking about providing less services, paying more in ta taxes, whatever it is, then they see an $800,000 trip for the secret service, and -- >> not only that, people in the greedy bastards narrative that are spending less and getting more. where the new paradigm is not cutting taxes or cutting spending, it's spend less and then get more by virtue of hot
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spotting, then we get this. >> my brother,ç who could blam? distributor in south carolina, early 50s -- i'm being generous -- two kids in high school, loving wife, fantastic dude, right? he looks at this and you wonder why people go, i don't give a damn about government. well, yeah, of course. and i'm not saying my brother doesn't vote. but why would he want to go vote when this is what his government -- >> the danger is that the only thing more dangerous than the corruption is total disengagement, which creates more corruption. >> and i'm going to go to my hope narrative. there are really good people who work in government, and like you were saying, and certainly when i got involved in politics, it was to change things for the better. >> stand up and define a new culture. >> their story gets overwhelmed by the bad apples -- >> they get cycled out.
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new administrationed come ask go. they've been there 10 or 20 years. >> next up here, to solve america's economic problems, do we need a bigger government, people, or do we need a smaller government? do you need a bigger government? no, smaller. our specialist weighs in on one of the most divisive and bogus dates of 2012. ner, in absolute perfect physical condition and i had a heart attack right out of the clear blue... he was just... "get me an aspirin"... yeah... i knew that i was doing the right thing, when i gave him the bayer. i'm on an aspirin regimen... and i take bayer chewables. [ male announcer ] aspirin is not appropriate for everyone so be sure to talk to your doctor before you begin an aspirin regimen. so he's a success story... [ laughs ] he's my success story. [ male announcer ] learn how to protect your heart
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as a nation, we've always come together to our government, to help create the conditions where both workers and businesses can succeed. >> the economy is struggling because government is too big and we need to bring it down to size. >> hmm. more government or less
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government? i do not know. that question already being used as a pro wrestling move this presidential election. what we all know is thatç it's not a matter of whether the government gets bigger or smaller but a function of how our government actually functions. is it bought, is it rigged, does it have two sets of rules, is it laden with all sorts of opaque and hidden deals? at any size, is that good for us? is it good that 200 people provide all the money for our superpacs and 10% of the population picks all the candidates. that's a pretty large action of any size. the second largest change came following the great depression and the second world war. when businesses worked together at that point, they worked together to capture that and
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ultimately bring europe and asia out of an economic meltdown. the government says if we don't take responsibility for our actions once again on that scale, in his words, the american experiment could end in failure. michael linn is the co-founder of "land of promise," an economic history of the united states. describe the distinction, michael, between the culture, how we use all these wonderful systems or dangerous systems, depends how you use them in our government, and the false debate about the size while ignoring the process of the culture. >> we don't need more government or less government, we need smart government. and we need smart government working with productive business. it's just idiotic to be pro government and anti-business and just as stupid to be anti-governmentç and pro business.
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particularly universities have been crucial in devising these new technologies and using these technologies on the automobile in the middle of the 20th century and now the computer to revolutionize the sector of the government. there are sectors that have not been rejuvenated. >> you have some agencies that are really disrupted by this change and are using the threat of our government to prevent that change from happening. >> it's always our sectors that fight against the renewal, particularly when it will destroy them altogether. at the same time, this means we have enormous opportunities just as whale oil was replaced in lighting by kerotene and then
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electricity. so we have to tear it up and start over with everything, but it also calls for a master sector role. >> and collaboration in the culture. >> of course. >> it feels like that's what's happening now, but nobody wants to admit it. when we talk -- >> what do you mean, what's happening now? >> essentially we're having to change the dynamics of a lot of business models, right, and there was all this conversation about manufacturing jobs coming back rather than a realization that, you know what, they may not come back in the same way, it may have to be a new industry. but it feels like there are not enough people -- there's the hot spotting, but we're notç havina national conversation in the way that some of these historical -- >> you need a certain level of ruthlessness to acknowledge where we actually are in order to set a path forward. >> there's another problem, dylan. in washington, it all tends to take place at this very pragmatic level. every politician started out in
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the state house or as mayor or something like that. it doesn't matter, republican or democrat, what you do at the state and local level, it's economic development. you're trying to build in jobs, you're building an infrastructure, and then suddenly they get elected after doing this for 20 or 30 years, and they're debating whether the market is good or the government is bad. there's a complete disconnect. >> jim, you touched on this. >> democrats like public works jobs as a stimulus. >> as a point of philosophy. >> the public sector says, no, no, no, the private sector will take care of everything. why can't you take public sector and private sector and give them incentives, get them to join together public and private sector deals to build bridges or whatever. >> can that happen? i feel like you could do anything, and i'm sorry to interrupt, michael, but i feel unless something is done with the culture of visibility and
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integrity, it won't matter. there is such a level of suspicion of both business and government, michael, that whatever the program is, if it's not done literally with the pay your pants off on the internet, here it is, this is the budget, this is how we're spending the money, we promise we're not screwing you ou distrust, i feel, exists. >> i think i can link these two questions to the same answer. we actually do a lot of public purpose infrastructure investment, for example, is is done through the private sector with all kinds of tax credits and other policies. the public sector never gets credit for it because it's carried out by private agencies, which in some cases, may be the best way to do it. you see the same thing with respect to social security and medicare. remember the tea party lady who said keep your government hands off my medicare, there are polls showing that a lot of people had no idea how much they actually
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owed the government. i think we need to debate in this country, first of all, in a lot of cases it does make sense to subsidize the private sector doing it. in other cases, for example, retirement policy, we've had two crashes in the stock market within a decade. why are we even talking about shrinking social security, the most successful, simplest, cheapest, equally administered part in private savings accounts? we actually have two governments. there's the visible government, which is not all that intact. they don't have all that many employees with the operations it carries out. then there is this kind of proxy government where the federal government subsidized or otherwise sets up -- >> go ahead, susan. >> just quickly, it seems like government is always responding, that it's always lagging behind -- it's only when we're in trouble, like social security. isn't there a way of government
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becoeiog more proactive, whether it's even being part of the regulation process with the private sector or developing things that we can actually start saying, this is what we need to do to have a better society? >> the marshall plan was a better leadership project. >> as a citizen, i have to agree, as a historian, i point out, like i do in "the land of promise," my book, it takes a while in order to finally overcome the oppression of interests. you would have thought the great depression would have been enough to dislodge some of those interests, but it seems to not be the case. >> i guess the only reason i think i'm optimistic relative to what you're saying is because the tools we have never existed ever, ever, ever.
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so the ability to talk on this level, the more we talk with each other about this, the less likely there will be ease for the catastrophe. >> is it $16 trillion? >> to abstract, i hear. >> yeah. >> michael, it's a pleasure. "land of promise" is the book. big government, small government or just a smart government that isn't corrupt? you decide. next, the green monster turns 100 years old. kicking me out of the chair for a quickç look at million dolla of memorabilia going up for auction.
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this friday marks the 100th anniversary of fenway park, homç of the boston red sox since 1912. freddy ball game himself has decided to offer up some of the most splendored collections of memorabilia. the year he hit .343, sluged 43 bombs and brought in 146 rbis. expected to fetch up to 200 g's, between you and me. this uniform will be on the block for the last man who hit the baseball. they even have some artifacts from the two military tours that interrupted his career, including these flight logs when he served as a marine pilot in world woar ii and the korean wa. a silver bat from his 1957
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season where, as a 38-year-old, he hit 33 home runs, batted 88. had an ops plus a .233. i don't even know what that means. we also have the first ball ever pitched at fenway, and these boxing gloves signed by none other than the greatest, mohammad ali, as a personal gift to teddy williams. all of this available on the options on april 28th at fenway park, and a portion of the proceeds do go to charity. dylan back with you after this. the chevy cruze eco also offers 42 mpg on the highway. actually, it's cruze e-co, not ec-o.
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one phillips' colon health probiotic cap a day helps defend against digestive issues with three strains of good bacteria. hit me! [ female announcer ] live the regular life. phillips'. a look at the fight against global poverty, specifically what has evidence of working and what has evidence of not working in u.s. individuals now give individuals. $200 billion a year to charity, 300 billion, really, of their desire to help. that's three times the total giving from corporations, foundations and the states. and yet nearly half the world's population still lives on $2 a day and on 50 cents a day or less. so where is all the money going? with us now, yale economic professor dean carl is set up to
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answer that specific question. he's written "more than good intentions" proving the way we stay healthy. he's also working for a non-profit dedicated to helping the world's poor. you're saying a couple things here. your intent to be helpful is inadequa inadequate, but you shouldn't abandon the mission, either. there is a third choice which is what? >> that's exactly right, which is to embrace the emotion wanting to give and wanting to help people, but to focus our analyticals to say, look, how do we support the ideas that are most effective? >> and how do we? >> so the first is to be a little bit rigorous about thinking about what it really means to have impact. >> ruthlessness first. >> ruthlessness first. it means checking out pre conceptionsç at the door and realizing that things that r
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necessarily sexy aren't going to be -- >> for example? >> for example, microcredit has gotten fancy over the years, but it hasn't necessarily lifted people out of poverty. >> transformive. >> exactly. >> what is? >> staying in that area, helping people get active in bank accounts, and particularly bank accounts that take care of their own frailties, about how we make presumptions between savings. it gives women more power in the household and to achieve more goals that they have. >> i imagine you have a litany of examples. that's why one writes a book. at the end of the day, the decision to whether we go with the emotional drive to act or the emotional impulse to act and whether we're able to convert
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that emotional impulse to act either into something productive or something alienating, it's really a function of how the culture solves problems. and that's kind of squirrely. >> we don't want to turn off the emotional triggers. it's a wonderful thing. we just wanted to be able to help direct those resources toward more effective ideas, to use the an lalyticals on top of the emotion. >> for somebody who wanted to apply your thinking into their own decisionç making, do you he a checklist that people can check their emotions so they can refine that energy and direct it at a more impactful place. >> the first thing to ask yourself is, does the organization have clear evidence of their impact? by impact, what we really mean is, have they done research which shows how the lives have changed of people in their
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program compared to how their lives would have changed? if they don't have the evidence, that's sometimes okay, as long as they can point research from other areas that also shows that idea. >> some other validating urge to the concept to apply. if you were to look at the number one mistake well-intended people make when they try to help thoor they try to give, wh is it? >> i think, for instance, let's go to the clean water area. there is a lot of excitement in energy about helping families get clean water. but if it turns out they're just building a well without focusing on the quality of water just leads to other problems. there are solutions to both getting access to a well, but also making sure there is chlorine in the well. >> you say opening a well that
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makes everybody sick is a favor you don't get. add-ones that one can do where you pick up a little device and from where there is a chlorine. and that made us transform differently in terms of the quality ofç order that people had, and. >> did you look at all between the distinction of projecting -- those people that i met. i think of seussie balk, but in omaha, i need to help these kids in this school right here in omaha right now. >> so the book is focused on developing countries, although the ngo that started innovations for poverty action don't do work in new york as well. less in america than overseas.
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these tools can be used in both america and overseas. a lot of things that we find that are important for how to design programs overseas are important for america. one of our most important programs was on smoking in the progr program. it's dean carl and the book "more than good intentions" talking about how people learn and stay healthy. homeland security chairman talks to chris about the latest in the widening secret service scandal. putting the nra under the gun right here. he's fired up and ready for a rant, right after this.
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david has a little ranting for us. hello, david. >> hello, dylan. every time i get better atç my ranting techniques, something jabz me in the eye and sends me into a tirade. this last week it was the billion-dollar ceo waylon pierre. he gets up in front and starts talking about the trayvon martin case. is he upset that the vigilante just gave gun owners a bad name? no. is he concerned law enforcement will be set back by the florida police department's total ineptyitude?
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no. pierre is upset at the media. oh, the humanity. that can't be why the nra has its panties in a bunch. the nra is sweating bullets because the nation is suddenly paying attention to florida's stand your ground law that led to george zimmerman not being arrested on the spot for murder. and who lobbied for that stand your ground law in florida and dozens of other states around the country? you got it, the nra. so poor little wayne lapierre is scared. he sees people dropping out of the legislative council on this issue and he's worried, worried that the nra is next. well, wayne, you are next. next on my anger management therapy bill. because let's just say it right here and now to set the record straight. the national rifle association has blood on its hands.
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americans are dead because of what the nra has done. how can i be so çsure? that's not even look at the stand your ground. let's look at the brady law. the cop killer assault weapons ban, these are all policies that save lives, and when the nra fought to have them eviscerated, guess what, lives were lost. you remember jim brady? he was ronald reagan's press secretary shot in the head by president reagan's handgun-toting assailant. in fact, i'm going to do something that will make wayne lapierre have to hire his own handg handgun

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