four thirty am in moscow we're wrapping up the week's top stories for you here on our t. easier headlights headed his hat and shown the door the russian president fires the mayor of moscow the president says you'll be losing jobs at eighteen you're a ten year had come to an end after the loss of trust in the capital city to. russia is a rising sun in the east with a major oil pipeline to china opening the floodgates with its largest trading partner oil will now be pumped directly to china triple in russia's export commitment. and un figures show despite a fifty percent drop in an opium production traffickers are still raking in cash as heroin prices soar survey suggests the drop was caused by a crop disease rather than nato operations. may have been two years since the credit crunch struck but many americans are still picking up the pieces next to run out analyst joins us to take a closer look at the gap between the real victims and the people who caused the crash stay with us.

our team is sitting down with the author of the kit capitalism one of the top five most visited financial log on the web eve smith thank you very much for joining us now is it thank you so much for having me here i'd like to start off by throwing some numbers out there recently we've marked two years since the peak of the financial meltdown and in these last couple of weeks we've been seeing some pretty shocking numbers we're hearing that one in seven americans are living below the poverty line one in five children are living in a state of poverty in the united states where are these numbers coming from and do you think people especially 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 it's almost as if washington is living in

a little economic bubble the 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 some are seeing even closer to twenty exactly know the not so good there are a lot of people 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 say 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 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 parody of a 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 things 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 madoff the only person who pretty much got one hundred fifty years in prison 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 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 left 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 of well it's finally started to happen

it's funny because this morning. some congressmen started using the word fraud so it's so they're beginning to talk about criminal activity they 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 b. 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 in 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 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 so you know their business the sum to get paid a bonus on profits i haven't heard 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 this stuff winds of 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 all of this. 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 that 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 warning failure you know 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 is all to much worse down to 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 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. heard 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 it's basically an arm of the state this is just per 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 is phony baloney and yet 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.

showbiz the entertainment value of infiltrate into nice presentation high production success its graphics. all of this is a way to sort of focus people's attention by using techniques that are associated with that same amount during this war we had nearly military entertainment. this place makes. but another is it sparkles and unexplainable introduced.

a place where supernatural beings are keeping. those. to be soo much brighter than. the bullets from funds to. screen stunts on t.v. don't come. roughing up the week's top stories on our team and he's had been shown the door of the russian president fires from moscow mayor president medvedev says your team

lose calls between your tenure had come to an end after he lost trucks at the top of the. russia eyes of the rising sun in the east and major oil pipeline to china but in a floodgate with its largest trading partner oil will now be directly to china tripling russia's export limit. and un figures show despite a fifty percent drop in afghan opium production provinces are still raking in the cash as heroin prices soar the surveys suggest the drop was caused by problems and as a lot of the nato operation. that's got all the latest updates from the world of sports coming up with unit o'neill's stay with us here on r.t. . this is sports today i mean these are some of the stories we're covering this. 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 gaining the upper hand on sunday. the revival of sports. is. part of our report coming your way in short. 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 before the visitors could. salvatore. been felled in the. rest from.

the believe bush eighty. three points were just. three. then. so it's still very much. inside russia extending their. two points with two games and second seeded drew being. elsewhere all the teams in action on the day. now and the alexander. reason is that it's had in russia it 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 his players in a case and says got a booking for the title this weekend it was judgers for me to read here that surprised everyone when using will get two years ago and the green words were ready to repeat that success they faced the greek side and if you like risking the three a semi final game was tight. but surely increase their lead in one thousand points up a tough time and the last quarter they had a comfortable building for institution management has made several desperate efforts to come back into the game between day seventy six seventy two jugglers thankfully the final and of course to do is just did it but it will still do second mission which is getting that force isn't just seasoned the right and he is trying stuff against the serbs the bruins manchu of the euro league final four with your church at the helm of the build rate side however this season the syrup who

spearheaded the black and whites for nine years revealed it says cabbage the hosts haven't wanted to see it and they are mainly in plans to probe it will manage to read the scene where at the third and so they produced a moment to excite and broke away home favorite try juggling that during several lies to be froze and as a result he coined a game high for two coreys just one point behind which says guys new sonny. he 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. a loving. mother to the all of my good. professional bad old harry respect there beyond the rhetoric on a court of law for where else also. i'm with this group of guys playing with paul newman while the army men were only. if you did you could learn to read you see the

school in only one super region 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 we plan to get. from the same place. play pretty good. but when we need a bass we need to be first. book. 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 dominance

with some aplomb on sunday six points were on offer after a rain delay and 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. 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 a time when sporting success when it. takes part two. in focus series. ski 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. alpine skiing. this is ask the kingdom you see him every chance has that in store and place to ski. luke uses the same ground 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 for seven thousand meter 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 number of places to higher education as well as high schools basically and i think his only advantages of a big city start as a kindergarten to you know they can train him for ten him in the same day coming 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 soviet and russian alpine skiers developed this kills right here in come this unique base now why is it unique all part of the reason is forty years ago this place was built literally by hands with the help of local administration and the people themselves now that's going to take a look at what they have accomplished so far. along with her daughter all continue to train children and develop their coaching technique multiple equipment at this center was invented by her and her late husband 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 physical 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 made. public in government involvement is vital when it comes to offering alternatives to the modern asians. needed to develop suitable infrastructure and it is not just 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 like we've tackled the problem head on his part of a government program to renew sports infrastructure and continue to construct a brand new sports center just as a matter of fact we've already held two annual events at our new state of the art yeah florescent are. 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. this center is unique to can

chalk up professional and amateur athletes now have a much larger charles sports you can actually we can hold a competition at any level here from food to 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 after becoming widely available income child at twenty years ago some were students then are coaches now continuance of pastor knowledge the next generation one problem remains the region's remote from mainland russia prevents athletes acquiring enough competition experience in comparison to other places in the country national review saying we 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 we'll have one every year. there in the big

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 are 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 though 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 it just one of the reasons freshest paralympians are one of the best teams and dials to do my best so that there weren't 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 in just a tick. culture is that so much different and there's a huge business to find the market and the settling settle israel is 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 the human voice face to face with the news makers.