specially over in washington d.c. are realizing that there are real people behind these numbers there's seems to be a big disconnect between sentiment 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 have to more like seventeen percent i mean that some are saying even closer to twenty exactly no they're not so good 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 means we'll certainly i don't think they're going to get better anytime soon most people expect that the economy is going to take a very long time to recover let me ask you this your 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 the masters of the universe attitude they honestly 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 of 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 prison 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 warren buffett came in invest 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 or 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 us is the greatest theft 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 react to that as well it's finally starting 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. i got away with so what they were doing with

their accounting books that was the biggest crime and the biggest well the biggest one the other one was that there was a lot of there was a lot of bonus gaming and one activity that happened on a widespread basis was that traders figured out a way to hedge their risks on the of triple it 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 short so so you know their business to some 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 up to probably if you get enough people to sign off on that a lot of the stuff winds up not being a legal 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 all those sort of two ways or hostage one unfortunately is in the environment we have in the u.s. 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 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. 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 this you know 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 bailouts why wasn't it the same thing done to wall street i mean it's it's inexcusable yet that's exactly what happened speaking of rewarding failure you mention you call 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. their life be better if the bailout. in place 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 on people would say probably you are doing better and if you do you see is yes you have seen more probably more probably more employment but you would see shorter periods of unemployment you wouldn't see this if 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 see we right 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. or 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 when 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 governments 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 the a lot of that's going on this phony baloney and it wall street is both waltz through. and washington d.c. you are acting like this is normal and it should be celebrated that you everything's better when it was 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. wealthy british. writer liberal. market why not. find out what's really happening to the global economy is a report on our. showbiz

the entertainment value of the pencil trade presentation high production. graphics. all of this is a way to try to focus people's attention by using techniques that are associated with a team and now during this war we had nearly military entertainment. today . these are the images the world has been seeing from the street.

today. wrapping up the week's top stories and in his private door of the russian president . the president says. after he lost trust in the capital. russia a rising sun a major oil pipeline. with its largest trading partner oil will now be directly to try to russia's expo in. spite of. the still. prices soar the survey suggests the drop was caused by a problem disease rather than. let's get the lowdown on the world of sports with

you know neil stay with us here on our. this is. these are some of the stories we're covering. can only draw in sunday's opening premier league. leaders and record yet another win. another day rain pushes singles action at the ryder cup to monday with europe on sunday. and eastern promise r.t. the revival of sports. is. part of our reports coming your way shortly. the hopes of recording a russian premier league title suffered a blow on sunday. only mustering

a draw against rock bottom sabir it has to be said though that the first goal of the game came against the french. right before. it was really second half before the visitors could. salvatore it but. the greenfeld in the. rest. believe bush. hopes of all three points were dashed just two minutes later. to repeat. then. so it's still very much. inside russia extending their. two points with two games and second seeded ravine following victory over. elsewhere all the action on the day.

now and the alexander. reason is that it's head in russia can mean only one thing the domestic basketball league season is just around the corner constantine to top off took up a seat for the opening night of the tournament. the c.m.o. school basketball fans can enjoy the third tournament named justin a legendary coach alexandre dumas scheme for designing it is put in a case and says got a booking for the title this week when it was judged years from me to any and it surprised everyone when it got two years ago and the green words were ready to repeat that success they faced the greek side and if you like us in the first semifinal the game was tight slowly but surely increase their lead and one thousand points up a top ten and the last quarter they had a comfortable lead in claims to show management has made several desperate efforts

to come back into the game between day seventy six seventy two judges who claim the final and of course to do is just did it but it was still do second match with this guy in that torch is it last season the red and he's trying stuff against the serbs in the bronze manchu of the euro league final four with dushku are you sure it's at the helm of the build rates side however this season the sirup who spearheaded the black and whites for nine years will be a little less cabbage the hosts haven't worn a trophy yet and there are many fans who kobe will manage to be ready to see where at the third attempt so they've reduced electric sword and broken way home favorite try juggling that during several lies he throws and as a result he calling the game high for two points just one point behind with says guys new sonny john gordon who tried to impress the fans in a new coach the twenty three year old shooting guard is still getting to know his new teammates and it seems he enjoys playing with them. i love it play our.

old. professional bad old show you respect their view on banks all the rhetoric on a quarter of all the oil sales are all. on with this group of guys playing with paul newman while the army men were overconfident. isn't it going to be reducing the school in only one of the teams so there was anything to plea for it of the decisive. quarter. but we pick it up just like we plan to. play the coach. so plan to get everybody from the same place. play pretty good. but when we need to. be first.

i didn't have any on which to continue the trees. easily seen in the game. sixty three. the ryder cup heads into an extra day today for the first time in its eighty three year history weather again playing havoc on sunday which seemed to suit team europe the americans had ended the previous two rounds on top plus europe ended the dominance with some aplomb on sunday six points were on offer after start the hosts claim five and a half of them meaning they take a three point lead into monday europe are not hot favorites to reclaim biggest draw on a bigger deficit it's been overcome before strap in for a thrilling finale. when you think sporting. are the obvious heavyweight cities few would include the peninsula as a beacon of world class activity but the country's furthest eastern region has been

busy attempting to rediscover its soviet style sure a time when sporting success when. part two. in focus series. chatzky or the city of st peter and st paul had its golden age of the last century when still part of the soviet union back then people came for the higher wages. and stories of unrivalled hospitality that's why this. became the center for salvias alpine skiing. this is ask the kingdom you see him every chance has that in store in place to ski. uses the same argument all ski method of teaching alpine skiing to children she's the first female snow leopard a title given to mountaineers who reached the summit of the soviet union's four seven thousand metre peaks she did it seven times over but to this day her passion

lies in helping future skiers develop their skills from a young age. to be the best place to raising out. the city has a notion of places to higher education as well as high schools basically and take his only advantages of a big city start kindergarten do you know they can train him for ten him in the same day becoming champions and. back in the day when soviet now blind skiers were far more successful than their modern day equivalent they are. bred champions like barbaro. almost all of the solve and russian alpine skiers developed this kills right here in this unique base now why is it unique all part of the reason is forty years ago this place was built by hands with the help of local administration and the people themselves now let's go and take a look at what they have accomplished so far. along with her daughter all continue to train children and develop their coaching take make multiple equipment at this

center was invented by her and her late husband garamond her partner in all aspects of their life's work and the simple looking devices invented a few decades ago continued to be used to develop the skills and physique of future athletes imagine what they could do with modern equipment well that's apparently on its way. they don't want to cross the country to promote a healthy lifestyle may be public and government involvement is vital when it comes to offering alternatives to the modern asians. needed to develop suitable infrastructure and it is not an issue sports is one way to keep. you cross the street and he supported by holding various competition throughout the year infrastructure is one area that needs drastic improvement because it's ineffective and simply not fun to train with just fresh air we've tackled the problem head on is part of a government program to renew support infrastructure and continue to construct

a brand new sports center just as a matter of fact we've already helped to annual events at our new state of the art yeah fluorescent or. a shortage of modern training facilities has plagued the region stalling any new sporting achievements but new multi-functional sports centers hope to make that excuse thing of the past. center is unique to can chalk up professional and amateur athletes now have a much larger trials sports you can actually we can hold a competition at any level here from food bullets and books and gymnastics. these young men and women are just some of the athletes who will be able to use the facilities for. karate he's among the martial arts popular apps are becoming widely available income chuck a twenty years ago some were students then our culture is now a continuance of past their knowledge to the next generation and one problem remains the region remote from mainland russia prevents athletes acquiring enough

competition experience in comparison to other places in the country. seemed like competition experience because it's quite hard sometimes expensive for other clubs and federations to reach coming and vice versa but this year we pooled our resources along with the local sports authority has and will hold them towards regional karate advantages hopefully it will have one every year for the paralympic athletes also hold to compete more the russian team continues to impress in the world stage year after year many of them come from remote places like they come chock a region but sometimes that's where the nation's real treasures a hidden like the people who devote themselves to helping improve the lives of others that's going to have been apparent because since one thousand nine hundred six and has witnessed a lot of change what remains constant is her desire to come here every day and push her students to achieve the best results they can and i think that that government attention to the paralympic athletes has increased since i first started i believe

in just one of the reasons freshest paralympians are one of the best teams and dials to do my best so that there are not any more champions from the bottom because not well. that was the region sport in a nutshell if you missed it one look at the series and come chaka is online at r.t. dot com remark all sort of artsy the come child care region far east. erupts up the sport for this hour i'll see you soon the world weather is coming up and just the tech. issues that so much different a huge musician find the markets and the settling settle issues again building settlements for jews only in the occupied west bank putting any kind of peace process in serious doubt. hungry for the full story we've got it first hand the biggest issues get

a human voice face to face with the news makers. a

look back at the week's top stories moscow's long serving mayor and it is hot and shown the door of the russian president loses but it's in his office. moscow rising sun with a major oil pipeline to china opening the floodgates with russia's largest trading partner. plus u.n. figures show despite a fifty percent drop in afghan opium production traffickers are still raking in the cash heroin prices soar. today's top stories and a look back at the week that was this is the weekly here on r.t.i.

matricide good to have you with us moscow's long serving mayor was shown the door by the president this week dimitri medvedev said he lost confidence in the o.t. luzhkov who'd worked eighteen years as the capital's chief luzhkov leads by a controversial legacy loved by some hated by others as artie's murray if the notion explains. that he's so i decided to dismiss the mayor of moscow the decree i signed states that i as president have lost trust in the. once deprived of power the phone support to the top was hard to come by a challenge it's obvious the professional relations between the president 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 i got an oligarch has one over approach it and a good manager and all that's inside one man.