in washington and new york and the rest of the country something like over sixty percent of the policymakers in washington think the country is on the right track over seventy percent of people in america as a whole think it's on the wrong track so it's almost as if washington is living in a little economic bubble be unemployment statistics you mentioned nine point five percent that's actually a narrow measure of unemployment a lot of people increasingly are looking to a measurement that includes. long term discouraged workers that's more like seventeen percent i mean that's never seeing even closer to twenty exactly know the so you know there are a lot of people who do who don't have work and the reaction in washington is very peculiar you know reagan hardly liberal reacted much more strongly to much lower unemployment well if washington is living in this economic bubble as you put it would you see these numbers are bound to continue to get worse well i think it's very likely as well certainly i don't think they're going to get better anytime soon and most people expect that the economy is going to take a very long time to recover let me ask you this you're wall street insider you've

been in the financial industry for over twenty five years do you think anyone on wall street realizes and feels responsible for this house of cards having tumbled down i've met selected individuals who feel very bad and feel some responsibility but having said that you read the media i mean and you speak to people on wall street and the attitude as a whole is this parity of a masters of the universe attitude they obviously think they're the drivers of the economy they are and they don't understand they think the anger against them is undeserved they're genuinely upset that obama's been calling the bad names i don't want obama has said is minor compared to what roosevelt said about the bankers in the one nine hundred thirty s. and what obama has continued to have very bank friendly policies so the fact that all they're getting is called a few bad names occasionally is astonishing compared to what ought to be happening when many people are asking themselves why is bernie made off the only person who pretty much got one hundred fifty years in. and why are the rest of wall street

c.e.o.'s walking around in expensive suits and really continuing to live the high life what is the answer to their two problems one is that normally when you take over banks or significantly finance firm you know normal private sector investor you know when warren buffett came in invested in solomon brothers the management had already been cleaned out but if it had gotten that much trouble he would have thrown the management out normally a private investor and most governments when they rescue a bank will get rid of the management get rid of the board install new people that didn't happen and to your point about criminal one of the problems of deregulation in the united states is the regulations have been regulations and laws have been so weakened over the last twenty years that a lot of what by any common sense standards should be criminal is not permitted or worst it's what they call civil you can sue them but you can't throw any but you can sue the companies but you can't throw anybody in jail why is that because many saying what happened is fraud in your book call and you say that what happened in

the u.s. is the greatest from the public purse in history and many analysts all over the united states are acknowledging this who is supposed to acknowledge this over in washington d.c. who is supposed to say that and react to that as well it's finally started to happen it's funny because this morning. some congressmen started using the word fraud so it's been so they're beginning to talk about criminal activity to begin to talk about fraud but the irony is the way things have been designed basically if you can get your accounting firm to sign off on what you did no matter or you've told them no matter how crooked it is you as a c.e.o. or a senior officer get a free pass literally that's how this goes you know they were very clever in the in their dishonesty in terms of finding ways to do things that that were incredibly misleading and yet they might be able to get away with so what they were doing with their accounting books that was the biggest crime the biggest well the biggest one the other one was that there was a lot of there was a lot of bonus gaming one. activity that happened on

a widespread basis was that traders figured out a way to hedge their risks on the of of triple what looked like aaa instruments that were called collateralized debt obligations and the way those worked was that if they took these these particular collateralized debt obligations and then hedge them they could take all of the future profits and that counted in their bonuses this year that was kind of so you know their business the sum to get paid a bonus on profits they haven't earned yet and yet this happened on a widespread basis this risky behavior this questionable behavior that you describe . it's not illegal is it and if it is why did it go on for as long as it was a problem if you get enough people to sign off on that a lot of the stuff winds up not being illegal now in your book you describe the bush administration the obama administration as having been hostage of the financial industry is that true and how how is this reflected on life post the

financial meltdown of the sort of two ways or hostage one unfortunately is in the environment we have in the us with so much of campaign contributions coming from wall street depending on the year there is the biggest source of fund raising or the second biggest source of corporate campaign dollars and now the rules have been changed in the u.s. to allow camp corporations to give even more to political candidates not so much directly through campaign contributions but through advertising support of different sort of basically wall street in washington they continue sleeping in the same bed exactly exactly in the second bit is that now there's a belief in washington which i think is a very bad belief is that america's only competitive in financial services that we can't possibly hope to compete in any other industry and there's a there was also a fear in the run up to in particular in the in the crisis itself that oh my god if you know the markets were to seize up you know the whole thing the whole house of cards would collapse and therefore we had to a seed to these banks and give them everything they wanted we had to go in and bail

them out no questions asked there was just there was an unwillingness to actually take the corrective measures and i could still see defending bailing out the financial system on an emergency basis but not doing anything with the management is just crazy and yet again they were hostage to the beauty of these these businesses are very complicated we need the season people to run them these are the season people who ran them these businesses into the ditch you know why we were boarding failure you know we with general motors management was made to produce plans management was forced out a lot of people took in the company took hits the unions on up. you know and wall street wasn't you know you can look at the other bailouts why wasn't that the same thing done to wall street i mean it's it's inexcusable that that's exactly what happened speaking of rewarding failure you mention you called bailout heinous in your book you describe it as something that's definitely should not have happened yet it did how do you think that things would be different now had it not taken place what we'd have we would probably have wondered at least one or two of the

large banks which would have been nationalized and that was also part of why didn't happen here nationalization in america has a very bad name in fact we take over banks all the time i think it's a very different attitude from wall street if that happened and we'd also see we'd also see some clearing out of the housing market the government is trying to pretend that and big sectors of wall street the things aren't as bad as they really are that we've got i talked before about sort of phony valuations we still have a lot of phony valuations of mortgage related paper if we put aside the corporations and the banks and wall street if we talk about the common americans the millions out there without all. their life be better if the bailout. in place is the price that would have been paid was we would have a worse initial downturn we probably would actually see unemployment get worse the better course is typically to take take your lumps you take your pain you write down all the bad crap in the system that usually salton a much worse down

a much worse but a very short downturn a very severe short downturn you clean it up and then you have a pretty quick trajectory out so what this point two years a lot of people would probably you're doing better if you do you see is yes you would see more probably more probably more employment but you would see shorter periods of unemployment you wouldn't see this because people are now look at their people now who will never who are in there over forty who will never come back in the job market we would have seen higher unemployment but we'd see we've brought now would be on a path to stronger recovery than we are now and there's been quite a lot of talk lately about whether or not capitalism as a system in the united states should be reconsidered. is that something that's possible or is this something that's so deeply rooted in the core of society in america that it's not going to happen definitely not in our lifetime but capitalism takes a number of different forms that's one of the problems in america whenever you say capitalism it's code for the kind of capitalism we have now you've got countries where you know sweden the scandinavian countries are capitalist and yet they and

their they've been very successful and yet they have a lot more state intervention there's a tremendous amount of denial in the fact that through the crisis we've gone through a big sea change in fact we have this weird system now where these miscreant companies are permitted to operate like the private businesses one by all standards they should be nationalized there is so much support of the banking industry right now that that it's basically an arm of the state this is just perverse but we perfectly reasonable for government to demand a lot more accountability and demand a lot and have a lot more oversight in particularly in the area of pay i mean it's a third rail issue to say anything about pay in the united states and yet these bonuses that the banks are earning are coming off the back of the taxpayer why shouldn't we have more say this is just crazy how much of what went on leading up to the crisis and during the crisis and post this crisis that really shook the entire country how much was covered up how much does the real common american know

about oh i got tremendous amount has been covered up i mean one of the things you're going to see more news coming out over the next six months is on the front the government is really trying to get. out of its hair there actually is a lot more trouble. than most people realize the government is hoping to distance itself from a g. before before some of the problems that it should have dealt with there are revealed but i mean that that's just an example that it's widely known in the profession and in the professional circles that a lot of that's going on is phony baloney and yet wall street is both wall street and why. to d.c. you are acting like this is normal and it should be celebrated that you everything's better when it's all been you know papered over with duct tape and baling wire it's this it's not healthy what's what's going on beneath the surface he smith thank you very much for sitting down with us today thank you.

1930's england and france trying to reason with hitler germany demands a better man and gets its way they all thought they had created a safety net for themselves nineteen thirty nine the whole of europe isn't in war efforts to establish a system of collective security in one nine hundred thirty trail and it's still on the agenda that. the lessons to be learned from the munich agreement on our t.v. . every month we give you the future we help you understand how we'll get there and what tomorrow brings the best in science and technology from across russia and around the world join our technology update on r g.

more news today violence is once again flared up. and these are the images go viral it has been seeing from the streets of canada. china operations to rule the day. in the czech republic she's available in ski gallery hotel and science central hotel prima vera most full stop by you to which i am a taste in bosnia and herzegovina available in. the children of each. but you know tone what you know. to make her tell you how do you know there are a boutique hotel. in serbia multis available in the hyatt regency they

are going to. the week's top stories from our chain moscow's longtime mayor journal called loses his job after the loss and positive loses his patience with the city's boss. expanse relations with its biggest trading partner china by opening an oil pipeline and sealing major energy deals. and has a huge drop in afghan opium output sentence value soaring we report on the devastating impact of drugs apos all sections of society in the country. more details on all those stories at the top of the hour you know neil is here next with the sports news.

can i have your company this is sports today i'm you know male these are some of the stories we're covering this hour smushing grab a moscow and a three game losing skid in the premier league stunning dominant car side right at the death. visitors on top the united states increased their lead over a team in europe at the end of play on day two of the ryder cup but it's the hosts who are in the ascendancy. looking east started. travails across the world's biggest country to discover the rule sport place. of russian. thinking their lucky stars today the blue and white some monitoring to secure their first win in three games on saturday the spiked burley having a shot on target don perm way it was all car in the first time off the home side

pushing on top and then on numerous occasions shot stopper kept his side in it with some great keeping for the second period followed a similar pattern with the ball somehow staying out of the visitors net then the unthinkable us with taxis former liverpool man andre of room in heaven karami who with new defenders for company picks a spot supposedly. one of the final screw up i keep in the hunt for euro football i'm car must continue to contemplate that dreaded drop. off look to be all but relegated a month ago but after having secured their third win in for the future should leave the drive for the some are a side to see off a buckling a side away from home by the time. on loan from start the ball. in the net on seventy four minutes for you using. today. did

get the jitters up but retreat for you was how it would finish the power of the room in the relegation zone but in an altogether more healthier state than just sit . while you were the only home. on the day. twenty second minute penalty making all the difference in. the move level with chelsea at the top of the premier league the reds. mean should beat arsenal at home on sunday the champions with five point. seven games apiece meanwhile wigan won the early kick off against joint bottom of the league wolves. came from behind to end. one hundred percent record.

at the basement alongside. a tough london. couldn't be separated after ninety minutes. onto the biannual buffel of the gulf giants know with team usa taking a lead against europe in the twenty ten ryder cup all in all are very long day for the players. the organizers try and finish to rain the lead event on time some action from the second day american. morning foursomes point martin kaymer west the old northern irish jew over. there finished the day sharing a floor bowls point with pockets not. saying much the right firing up the tribe without long putt. so us on top but the europeans. sunday leaving all see the late session. on to tennis now where you. come up

a step short of glory in tokyo the russian falling to carline wozniacki in the palm pacific open decider with the dana thing her tour leading fifth title of the year we're number ten dimension seemingly catching wozniacki off guard to start things off taking the first. round and vice from father coach pete off afterwards though dementieva stuttering in the ensuing two sets with the world number two in the last one six six to sixteen to see how it ended up a twenty year old one more than anyone else this. cycling where reading tour de france champion alberto contador is fighting back against doping allegations that twenty seven year old is temporarily suspended from the sport after testing positive for a drug during the twenty ten french event contador blaming contaminated meat for the results adding that cycling officials should put the matter on freeze on till

a more advanced test proves his innocence. turning us all of my blood and urine tests are in the laboratory and i need courage to have the test be analyzed as nine exams is necessary to clear up this case if it is necessary to take to know there are more specialized laboratories they should be taking i authorize the blood and urine samples to be frozen so that in five years' time when the system is more perfect they can be analyzed again. brings us with east to the kemp peninsula the earth which is a full time zones away from moscow is famed for its volcanoes on birds but the area has also supplied its fair share of the limbic world and european champions in the past our teams are among cos red visited the region to find out the state of sport they are today. leading a healthy way of life seems to be a part of everyday existence here. actually it's quite hard not to start taking

care of yourself whether it's playing a sport or simply relaxing in this like this one well over the next few minutes we'll find out what else can be done in this land of ok nose in terms of sport. following a period of instability and population decline in the aftermath of the breakup of the soviet union the region is slowly but confidently rising from this and the locals on the whole world to experience what it has to offer. come chaka thrives on its fishing industry but remains

a hidden gem located at the far eastern and of russia the landscape compares to the american. continent just like alaska come jack is a land of volcanoes bears both beautiful and dangerous alexander moraz a professional snowboarder and then to printer is a pioneer realizing that sport and tourism go hand in hand he began to live the dream he provides training facilities for libyans and aims to introduce comes out because a rich heritage to tourists from home and abroad his mountain hold cell and snowboard camp in the wilderness is an example of how private capital is helping soon proved the region's largely untapped tourism market these give me of principia sport to sport and to as a complement each other and its effect years on big games are a good example i think there is nothing wrong with businesses profiting from sport because this way ensuring the moral development of sport and this is how i came up with the concept of the camp specializing in professional snowboarding for f last

week and also so as a year on the resorts the tourists were also a home base for come just because spurling pickel find skiers. he can chuckle prides itself on its martial arts legacy as well statistics show that almost half of the young people here prefer combat sport to other disciplines boxing being one of the favorites the aim is to develop an interest in sport from a young age it's hell that will encourage them to fight often patients such as drugs and alcohol something which appears to be happening right here in their policies cumshots can push it thank you so. there is really no secret method to pro-choice use it at any given moment in time we accept kids as young as six years old and interactive training sessions with elements of the place maintain their continues interests for the sports for we all know the children are very active but we try not to push them too hard before the choose a sport they're really into it is that once the make their choice in my case it's about boxing i introduce them to more advanced practice options and that's it's

really. a new. gas pipeline recently launched by president dmitry medvedev will help social causes among other things there's an element of third in infrastructure revival of great athletic traditions and supporting the advancement of grassroots sports all the while nurturing existing young talent local authorities know what needs to be done. coming tax cut is one of the youngest places on earth and like its cocaine use it continues to three erupting energy the force of the next generation is very positive obviously it's directors who support this is the main feature all come trucks come it's coming and strong youth that charges everyone's energy levels sports like football snowboarding out pine skiing. karate and a many others united the local population bringing new creative ideas and of course physical strength. in the next part of our come chapter chronicles. karate arguably

the region's favorite martial art raising spirits and champions local world class ghost trains paralympic swimmers and five gay that unites the country at republican chelsea opens running day held across russia ramana calls for an artsy come child to region far east. now for another look at story of indeed plenty more action to log on to our team dot com forward slash sports you'll be kept busy for hours there weathers next. hungry for the full story we've got it first hand the biggest issues get the human voice face to face with the news makers.

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of them too nuisance for any army the life of the usaf is the most precious thing in the world. is of self-sacrifice and heroism with those who understand it fully but you have to live a. real life stories from world war two. victories nineteen forty five don't auntie dot com. this place makes our i managed to. was but another is it sparkles and unexplainable introduced. to a place where supernatural things are happening. probably

all of. those. on our t.v. . the recap of the stories that shape that we must tell us long time mayor curie luce called luther's john back to the watson president loses his pay cents to the city's wants. for sixpence relations with its biggest trading partner china by opening an oil pipeline and sealing major energy fields. as a huge drop in afghan. helping them out might send its values soaring we've reported on the devastating impact of drugs from all sections of society in the country.

one welcome to the weekly here on our team on the east and now a first stop one of the top stories of the week russia's president fired the mayor of moscow yuri luzhkov after almost two decades at the helm of the city to meet him it's very sad he had lost confidence in him this call will go down in history for changing the face of the russians capital but the many controversies surrounding his tenure threaten to overshadow his legacy and us in the house the story. so i decided to dismiss the mayor of moscow the decree i signed states that i as president have lost trust in your english cough. once to project power to phone support to the top post but come by so much it's obvious the professional relations between the presidents and moscow men had worsened meanwhile the man is subordinate to the president and not the other way around to certain steps should have been taken to return the situation back to normal so where did it all go wrong.