my brother in law and a very a funny. every day santa together that to engage in various high jinks. in our film below gets a married to a donkey. the payoff is a bore at the. acts but actually jews from romania. i demand years of the movie made the whole world laugh at us will make all the whole world for down. there being several previous responses to bore at least this video by a rap collective to threaten to make him eat lead this time the producers are hoping for an international release a new look and after marrying a donkey will it becomes pregnant with this child. either and of. all the back to remind you of our top stories after a short break. the

news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations rule the day.

but so have a look at the week's top stories from our team security forces in russia's north caucasus are working to identify two of the three terrorists who stormed the chechen parliament on tuesday three people were killed and seventeen injured in a top that's thought to have been masterminded by a new militant leader called saying. the french revolt against pension reform refuses to die down even though the plan has been approved by senators over the channel the british are making very frustrated and snow as they face up to the deepest card since world war two. iraq is seeking to pressure the u.s. into paying for the widespread abuse of its citizens it comes after online whistleblower wiki leaks exposed scores of classified military documents detailing

torture and the deaths of hundreds of civilians. and a mosque goes well beyond its new mayor so days of yawn and was picked by the president from a short list drawn up by the ruling united russia party and takes on one of the country's toughest political jobs. now we're all paying the price of the economic crash that's been haunting us for two years now next starchy investigates its root cause. who had brought down wall street. hedge funds. back in two thousand and seven with the blues still in full swing my business partner e. o'connor attended despite the just off wall street traders under the age of thirty . it reeks of affluence.

shiny cars. eating food people. only clubs where the sums can be invested in complicated vehicles in secret outside the prying eyes of wall street regulators. the traditional investment firms have been who it is no wonder so many of these young people wanted in and at the top. and i personally spent five years in private equity and then made the decision instead of going back to business school to move over to the public side so that was a conscious decision on my part i think most people probably get involved because there is an opportunity to move up the ranks and make more money at an earlier age in hedge funds and there isn't private equity which is the natural progression after a couple years in an investment banking program well if you're going to be in the investment world the best way to and you're

a good investor the best way to make money is to have a hedge fund because you get compensated much much higher. hedge funds were being paid one percent of the assets and twenty percent of the profits in those. so obviously that was the best way to make money if you were in a good insurance company a i.g. was a leading seller of credit derivatives so a bank for example like goldman sachs would create a c.d.o. it would stick all kinds of subprime loans and packages packages or packages of them into a package and then it will go off to a. and crowded aaa rating credit rating and all that would say you know what you take this package of junk we've just created. kind of insure you basically write a default swap to basically credit and store it got a much better rating than we do so our investors will buy it from you what that they make money we make money everybody's happy former bank regulator william black told bill moyers this was all deliberate this stuff the exotic stuff that you're

talking about was created out of things like liar's loans that were known to be extraordinarily bad and now it was getting triple a ratings now aaa rating is supposed to mean there is zero credit risk so you take something that not only has significant it it has crushing risk that's why it's toxic and you create this fiction that it has zero risk that itself of course is a fraudulent exercise. in. listening to its crisis. even e.g. made guarantees totaling more than their ability to pay an amount larger than the entire value of the company actually that's a bit of an understatement he i-g. along with others who sold a rivet is and insured their policyholders to tune of an estimated five hundred

ninety six trillion dollars compare this to the gross national product of the entire world and the problem should become more obvious so you were just gambling billions possibly trillions of dollars. but i would refer to it as gambling with you know these these transactions were individually individually underwritten very carefully and maybe i can provide some of background see that might be helpful if they're very good but they were carefully underwritten how come no one wants to buy them how could a i-j. have possibly expected to make good on its promises one thing we know for sure he i.g. executives made huge paychecks selling these credit derivatives to hedge funds and others right up until the economy caved. so we don't need to fear hedge fund i don't think it's the fair hedge funds i think hedge funds provide. a pretty

intelligent best base more savvy investor base for the market. to play the wall street used to invest in the american economy in companies that used its money to produce goods and services but then wall street became the american economy our financial system was a reengineered through what's been called financialization with banks credit cards real estate and insurance companies as the new power players. capitalism a sort of go off the rails it's ceased to be kapil it's financial i say should the fact that it's now all about speculation the fact that it's about ponzi schemes and the facts about selling and buying paper from an economy of real goods real commodities and real services to a system where people were buying and selling money buying and selling assets

buying and selling other firms were no new value was created most sensor b. says the whole system has gone predatory i think we had a transition from what probably was afraid of market system. to something that is out of control and probably defined as a predatory system frequently in markets that are manipulated for the. maybe a. few investors investors it's even even that's very difficult to tell we still don't know point fact is making money while so many in fact that losing money on wall street right now as business week noted what we're observing in all of its bizarreness is the ancient paradox of what happens when an irresistible force meets an immovable object the irresistible force in this case is the u.s. economy the immovable object is

a wall of debt that now can't be paid back in a position where the volume of mortgage debt corporate debt personal debt and even state and local debt is larger than the ability to pay the rise of the credit based economy through the growing disparity between rich and poor has transferred from the middle class to the upper class the middle class watched it savings literally drop to nothing has ever been spared the paying off. the upper class meanwhile think you down how to make money. and more accurately how to sell their debt. paid in the future. real estate expert ron silver men calculates the cost you are talking in recent years over the long run every year transfers hungry.

dollars hundreds of billions hundreds of billions of dollars a billion. poor. who are far better. show called victims to go upper one percent. population own thirty percent of america is returned to wealth that is dividends interest and capital gains five years ago they'd raise their proportion from thirty seven percent to fifty seven percent and today it's estimated that the upper one percent of america's population. it's almost seventy percent of the returns to. the percent seventy percent that's huge yes that is it's unprecedented it's essentially it makes america look like a third world banana republic. talking . to the mob the barrister. ironically bear stearns was also

the billions of dollars they received in the bill now did not go into the company's cheer holders but. it was a deal that ultimately saved the creditors to bear stearns by forcing it into j.p. morgan at the expense of equity holders michael hudson points out to the homeowners and corporate america on how in hock to the debt machine many corporations are effectively in negative equity or in technically insolvent position headed by the financial sector by the banks themselves really sympathy for the demonstrators in the bill. i don't know if there's a lot of sympathy per se to their point of view i mean we were you know in a similar similar boat so to speak a similar boat perhaps only one has life preservers the fact the government now is funneling money to a major bank and saying if you can do that with

a bank why not do it with strapped homeowners facing foreclosure as democrats thanking god was. crisis increases desperation. minds hudson says main street is leading the move on main street in a battle for survival we are seeing a second class war in this country such as you've never seen in the entire history of the united states a class a class war except in this case the class war isn't the kind of war the marxist some socialist talk about it's not between employers and employees because employment is going to be shrinking bear stearns fourteen thousand employees would eventually be laid off by j.p. morgan chase it's a class war between creditors and debtors it's going to be a fight between the financial sector and what's called the real economy the economy

of production and consumption and the financial sector has prepared well and positioned itself to come out on top by being able not only to foreclose on the property of betters but to get a government bailout for all of its own losses. because . employment is going to go down market going to shrink people are going to default even more on their mortgage debts on their credit card debt on their student loans so you're going to have an exponentially rising trend of defaults you're going to see a transfer of property from debtors to creditors a depression not only a depression but an economic polarization it sounds bad yes it's very bad. the media was now out in force covering the protests many would not talk to them.

about you know what exactly are we going. to need when i tell so why do you think people don't want to talk to you because they hate you they think the media is part of the problem they. they don't think that you're going to help them thinking about their. project i hope but spent the first financial crisis it bother to search when was the media when all this was going on why were there so few naming us and not just gay shootings in what was to be common economic catastrophe things are only going to get worse we want to talk a little bit more you've been incredibly pessimistic august two thousand and seven marked the beginning of the end of an era what had gone up was now coming down. foreclosures were up ninety three percent from the year before. in

london there was a run on northern rock bank more bank write downs followed billions that feud b.s. and citi group fannie mae the largest source for home loans reported a three point five five billion dollars loss for the fourth quarter in march two thousand and eight the fifth largest investment bank in the world bear stearns was on the verge of collapse many of the nation's most respected financial journalists are still getting it when i get my money out there no no no bear stearns is fine do not take your money i just read if there is one k. oil than have lost four hundred pairs turns is not in trouble i mean if any are more likely to be taken over don't move your money but that's just been silly don't be silly the media was complicit says dean starkman a financial journalist now with the columbia journalism review the business press former colleagues of mine friends of mine did not really recognize and understand

what they were up against how dramatically the the world it changed the lending industry had changes things that you've kind of documented how out of control wall street had become and i think it's a real contributing factor tactic to to how we got to where we are today. even compares the journalists who cover wall street to reporters sent to iraq he said they too were embedded but in the corporate culture. the great panic of two thousand and eight is the equivalent for the bit business media what the iraq war was from that for the washington press corps is the national story of the last seventy years so the parallel is fair you could further extend the analogy a little bit to think about the idea this concept of being embedded and that the press corps itself was sort of embedded within

a particular narrative. that has its origins on wall street i don't think that analogy is is out of whack at all. there was one more factor this few in the media covered because it was about the media about the infusion of nearly three billion dollars in advertising revenues from dodgy lenders and credit card companies between two thousand and two when the housing bubble took off until its crash in two thousand and seven. they actually an entire industry became predatory predatory like criminal. yet deceptive marketing and mass as a as a function of corporate it started in america and is now everywhere some say the united states has infected the world with a kind of financial aids. the people who these mortgages was sold to. a large majority of these people who are

poor black people or that he know people in other words this was targeting minorities especially so this resulted in the biggest transfer of wealth from the poorest people in america to the richest institutions in the world and think that the majority of people. they feel that this is a problem for as you say this is this is a banking problem stock market problem this is investment problems for their p.s.i.i. it's interesting because a gentleman says things are much more controlled here playing out of a bank will get my house they really made sure of the body i think that america is heading for a really deep crisis of the i'm told before. you have a you have a deep ideological cultural division you're going to have i don't see that having an ovoid mess of unemployment you have extreme wealth in extreme poverty and you

have a population. that's not the case here i think what we're going to see in the united states i hope i'm wrong but i think united states is heading towards an abyss as the crisis worsened politicians family will go up to realize that the economy they had deregulated was imploding congress was finally being asked to act ironically the pitch was made by a republican treasury secretary henry paulson a former c.e.o. of goldman sachs in the years that that firm made massive profits in housing securitization and speculation. when this do so in order to avoid a continuing series of financial institution failures and frozen credit markets that threaten american family's financial well being the viability of businesses both small and large and the very health of our economy the question would

government intervention fix the problem or make it worse would it reward the companies that profited from massive fraud would it lead to more fraud. treasury secretary henry paulson and fed chairman ben bernanke began a push through what might be called the final plunder the real story was not widely known except soon on c.-span on thursday at about eleven o'clock in the morning the federal reserve noticed a tremendous drawdown of the money market accounts in the united states to the tune of five hundred and fifty billion dollars we were having an electronic run on the banks their estimation was that by two o'clock that afternoon five and a half trillion dollars would have been drawn out of the money market system of the united states would have collapsed the entire economy of the united states and

within twenty four hours of the world economy a shell shocked congress was given us three page plan in essence it gave paulson total control to spend seven hundred billion dollars some saw it as a power grab others sold a deliberate creation of the crisis to push through a corporate agenda and troll the media enough to ensure that the public will not notice that this bailout will and get them for generations what was unique was the refusal of congress to hear any testimony from expert witnesses or to have eric billion dollar bailout for wall street is being driven by fear not fact this is too much money into short a time going to too few people while too many questions remain unanswered why aren't we asking wall street to clean up its own mess when we passing new laws that stop the speculation which triggered this why aren't we putting up new regulatory structures to protect the investors how do we even value the seven hundred billion in toxic assets why are we directly helping homeowners with their debt burden why

aren't we helping american families faced with bankruptcy why are we reducing debts for main street instead of wall street isn't it time for fundamental change. that our debt based monetary system so we can free ourselves from the net ration of the federal reserve by the federal reserve in the banks is this the united states congress or the board of directors of goldman sachs congressman kusin it's his remarks were not widely reported either they were still refusing to make new loans the oversight of paulson's program was criticized because millions could not be accounted for fraud is to seat and the essence of fraud is i create trust in you and then i betray that trust and get you to give me something of value and as a result there is no more effective acid against trust and fraud especially fraud by top elites and that's what we have although all the facts are not in about who

got how much and under what terms many in the public see the bailouts as a way to loot taxpayers as fraudulent as the problems they were addressing. yeah we're all over the capitol hill but the summer of two thousand and nine the crisis had not abated unemployment continued to climb foreclosures to mount bankruptcies to grow markets to shrink firms to fold and tensions to tear apart families and communities i think you will see a bunch of people get died it gets up first senses more importantly at the bigger question to me is will we see a structural change we go through a blog bad recession while we waste our money struggling to rebuild that odd sustainable system that should have never been erected in the first place because new regulations were beginning to be put in place trillions had been spent by government on stimulus programs these measures were clearly not enough so-called

reforms often pump money into the very institutions that caused the problems the bailouts benefited the wealthy deficits and debt grew by the trillions it became clear that the structure of our economy has yet to be transformed to go from the first start. in june two thousand and nine president obama announced new financial reforms saying the crisis was caused by mistakes. minute recognizing the government's inability to police wall street investor jim channels says his reforms are doomed to fail and it's a little bit tough because the guys who are the bad guys are one step ahead of the cops on the beat every single day for starters we need a full investigation like the one that followed the great crash of one thousand nine hundred twenty nine we need to know who benefited from one of the most insidious crimes in history how did wall street's wizards engineer distance esther

and who is complicit with them who the big fish ever be prosecuted the media too has to wake up to shift the debate to include the need for. a deeper change and a crackdown on white collar crime since this is my film i get the last word this financial crisis will not be turned off like a light switch millions are struggling to survive as conditions get worse. for you to get you the payoff ultimately. it's everything. to the same people so patrick. created there was all lot of partying there was a lot of back slapping there was a lot of extract a lot of extraction should lead to a major reaction. blunder in an age of major structural change. have to be an age of protest and pitchforks first.

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death by itself prime. time taken on it. on the company to time. is a kind of. toxic assets and. toxic.

wealthy british style. markets why not come to. find out what's really happening to the global economy with max keiser for a no holds barred look at the global financial headlines tune into kinds a report on our cheek. to go as you update here on. the future covered.