china for asians to rule today. good afternoon welcome to capital account i'm lauren lyster here in washington d.c. we have been warning on this show of possible american casualties of the eurozone debt crisis and now we have one sometimes in which people don't agree with you all the time. we tell you what's good for you. and the global as securities firm has now filed for bankruptcy after making big bets on european sovereign debt is c.e.o. was reportedly banking on government bailouts for these countries he never thought they'd be allowed to go down we asked how many other people are betting on continued government lifeline and keep in mind when you listen to the news on this

story according to the bankruptcy protection c n b c is one of m.f. global's largest unsecured creditors and could stand to lose more than eight hundred forty five thousand dollars and speaking of bailouts the u.s. government is still having trouble unloading its have to investments in bailouts during the financial crisis three years later the u.s. treasury department is still the largest shareholder in ai g. with this seventy seven percent stake in the insurance giant and reportedly is likely to put off its second sale of shares of the company because of an unfavorable market condition now meanwhile despite the market volatility american companies are beating wall street's profit estimates for the eleventh straight quarter meanwhile hiring of workers is expected to a slowdown this month in the u.s. as a jobs crisis continues we see outrage over this kind of disparity and the occupy wall street protests on behalf of the ninety nine percent today we'll hear from who's

become kind of an ambassador for the one percent that's got to capital account. as i mentioned we see the first casualty of the eurozone debt crisis with the bankruptcy of an f. global and as a result we are starting today show with a reality check because there is a good lesson in that old adage here don't believe everything you hear. sometimes english people don't agree with you all the time for the most global we tell you what's good for you. yeah they tell you what's good for you and today they filed for bankruptcy now the wall street firm is run by goldman sachs is former chair man john kors i'm and what it thought was good for its clients was evidently

a large bets on euro zone sovereign debt which didn't work out well for them given the euro zone debt crisis and that puts unsecured creditors on the line but one of those clients has been in the game in a different way take a look. by far the largest can morgan chase at one point two billion followed by several different units of goods or bank totaling about a billion dollars and we should also note full disclosure that the seventh largest on secured creditor is c. and b. c. we don't know the nature of the doubt but it is listed as a claim of eight hundred forty five thousand dollars. that's a little awkward it's just something to keep in mind as the business network reports on this story which i'm sure will continue to and just why did m.f. global bank on euro zone debt in the first place well john poor design was quoted in the wall street journal as saying this europe wouldn't let those countries go down so basically he was betting on government bailouts so what remains to be seen

whether this was just one guy or one firm taking a lot of risk or whether this is the thinking that's more pervasive and we're going to see a lot more fallout as a result but the unintended consequences of government bailouts were people are still betting on government life support is certainly a reality check we want to bring to you today. all right we are going to bring you that ambassador of the one percent too has been out speaking to occupy wall street and now is going to speak to us but first we're joined by a very special guest and honor of this hala when it's someone that is come upon

really tough times for a lot of new years that have continued and frankly he's broke and joining me in the studio. is a broken ankle same uncle sam how are you feeling today you're going to auction some treasuries for which you still own a seventy seven percent stake. why can't you sell those. it's been tough week. actually in this situation right now it's a shocking situation with them. having a hard time coming to grips with decentralize well. militarily. so yes it's difficult it's a crappy corporation it's the world's toxic assets. and i'm having a really hard time. coming to grips with the fact that i over fourteen trillion dollars fourteen trillion dollars a lot of debt and what some people would argue is

that you can't solve debt with more debt yet you see the united states you see you know basically you represent you uncle sam trying to come to some kind of deal on the debt the supercommittee is still having problems coming to that agreement where do you think the united states where do you think you are are really headed one brooke so. it's really hard for me to. concentration i fortunately i've got i've got bankers that. keep me going to life support for as long as possible but i have to keep rolling over the what do you mean you know bankers they keep you on life support i thought that uncle sam was actually keeping bankers on life support. well it's. actually don't have any freedom i don't actually own vi wall street wall street owns me and i have to promote through their bidding. and they kind of trade my debt as though it had value so i kind of pretend like i'm worth something. but i'm really actually worth

less and. kind of owned by the banks but when you yourself admit that you're worthless and yet you see that you know u.s. treasuries for example so have very low yields other people don't seem to think you're worthless so are they just denial yeah there's actually a huge. psychological effect of the knowledge here collective illusion that my debt has value and that i have value but i really don't actually there's nothing actually backing up any of my claims or liabilities it's just promises that i can actually repay and i think it's kind of funny that people. think that. that's actually worth something i think it's pretty funny when you think that this is all going to come crashing down because you know i hate to point out the obvious but you print the reserve currency that the world uses as its reserve currency for you know i thought of a long time ago really i'm going to am you thought a long time ago that it was going to come to an end and especially when bernie got

got snagged burning a second cousins i was really concerned because he was one of the second biggest ponzi scheme in the world when bernie got snagged bernie bernie made all you guys are buddies were second cousins. and so i thought i thought that maybe for bernie got snagged that i might be on the hook next but so far one figured out the big. for so security and so many different ones evan identified the big bubble in my pocketbook and some people are worrying that perhaps where that's going to happen we're going to see that a's with a failed bond auction with foreign creditors because obviously you got a lot of money from china. you get a lot of money from japan what happens if they stop buying here. you know that's i have a lot of anxiety i actually see a therapist about that i'm on multiple forms of. certain who have taken hitters and other forms of. anxiety lowering medications

a blood pressure because i sort of from a lot of anxiety that i might have action. which i think he's may not continue to roll over my that so i have a lot of things i'm working through that as best as i can do the thing to do i mean so much that right now i can do is just hope that idea of reckoning never comes some kind of in in the i mean the i should say in the long term of kane's is economic long term i'm actually there are no so kind of worried i thought i'd never actually get there but i'm very now so i'm kind of concerned about sort of working through those problems as the end is near and you're depressed like a lot of americans many of which are unemployed and you know this week we find out that bloomberg reports that the s. and p. companies that are purported their earnings three out of the three hundred of them that have it shows that they are at their eleventh straight order of beating boss three profits and at the same time we see that more americans are not getting hired it's likely that hiring has actually slowed for october and there's

a jobs report out this week you know it will confirm or deny this but when you see news about great corporate profits and americans not being able to find jobs as uncle sam how does that make you feel makes me feel depressed because i remember you know if you look back at the cartoons of me especially during the spanish-american war and with a back to the war you know there was the world war two was me growing up my sleeves got rid of beat up the germans and and now it's just it's just sad the pictures of uncle sam begging around the world looking for money going to the chinese who would have thought you know we used to run the opium wars over there with the brits. were over begging them for money so it's the pressing it it bothers me. like i said it's something that i'm trying to work through. maybe some sort of. loose monetary policy but this is something that i'm hoping could kind of ease that pain sort of make it a lot easier for me to finance going forward and working on those options and we

don't know yet what the federal reserve is going to do but you're right i mean your picture certainly has changed and you went from a good looking guy that represented this country to someone who looks quite disheveled and homeless as you said you know you're broke so times are tough you're down and out we appreciate you coming on the show this halloween to talk about it that was a very depressed and broken homeless uncle sam. all right time now for the word of the day this is the fun part where i break down a financial term or concept for our very smart of your but maybe not the financial experts so where is starts with the word that. it's over in the solicitor how are you good it's a wonderful you know this is well thank you what are you just. typical business

guys will do yeah not that i can think of anything because you look pretty good for a newsroom now well thank you thank you very much in fact follow with your thoughts you know you will get us up to it yeah it works all right but your business casual all right thank you for being here to tell us the word of the day which is open market operations and this matters because it has to do with the news we're seeing today with m.f. global let me give you one example today and the global filed for bankruptcy on monday morning in new york after the federal reserve bank of new york suspended dealings with the grocer dealer this followed it suspension as a primary dealer by the new york fed so what does that mean well as one. of twenty two designated primary dealers of u.s. treasury securities and that global serves as a counter party to the federal reserve bank of new york in open market operations so what exactly are open market operations so the definition this is the buying and

selling of government securities in the open market in order to expand or contract the amount of money in the banking system purchases inject money into the banking system and stimulate growth while sales of securities do the opposite so in doing this open market operations are the fed's tool to control the key interest rate which is the fed funds rate so the fed targets an interest rate and goes to the market every day and extract money or injects money by buying or selling treasuries so maybe interest rates are going crazy and then the fed will go into the market and it will buy or sell an order to get it to be more where it's targeted to get it at the level that it wants it to so this is how it does it and it does it through a primary dealer like m.f. global was and it uses what's known as repo or repurchase agreements but that is to hold only for another day because that is just one other complex term but now you know open market operations are. and still go ahead don't go away

we have a very special guest for you and calling segment that you are not going to want to miss and first here are your closing stock numbers. mr.

let's not forget that we had an apartheid regime right or luck led i think barack obama is beatable and funny well. whenever the

government says liberal keep him safe get ready because you get a little care freedom. he has put a picture of me when i was like nine years old i just tell the truth. i confess and i am a total get a friend that i love rap and hip hop is second hand pretty. he was kind of a bit yesterday. i'm very proud of the role with algeria she plays. the to. play. you know

sometimes you see a story and it seems so for like sleep you think you understand it and then a glimpse something else you hear or see some other part of it and realize that everything is ok you don't know i'm sorry look i'm the big picture. what drives the world. the fear mongering used by politicians who makes decisions through. who can you trust no one will soon view you with a global machinery to see where are we heading state controlled capitalism is called sections when nobody dares to ask we do our tea question more.

all right well we talk to uncle sam earlier but we thought that because he's so broke and despair and we should probably bring him back and you know it is hollow wein so we had to partake a little bit. i don't know if you guess what i am dimitri. i don't look like a mouse because janet what i look like a very gentle donahoe she's our producer start there. i think you are my twin you are a fair market i am the yen to your yang shannon. i am shannon shannon it's me terry. hubert. you're one of. the panels. yeah doe i don't think pandemic uses of all market. she's a bull market corner gave it points over far didn't. choose

a bull market and your birds. are doing. and you know boards are kind of hard to find so. maybe just rights to your creative that's true in your market so i don't know if we should fight to see who is going to win but what would your prediction be blue for six. we could have a twenty percent correction. of the trends through i'm so sorry. i don't have to go with you as other bits of call we're in a secular bear market sort of thing for. brains our eyes and everything else or they're in the control room i don't know shit shannon he's banking on me would you would you agree with that how do you feel about that i'm not sure i mean they're angry bull market opposed to a bear market like a bull scares me way more than they're. going to i think they're far more deadly but speaking of deadly don't hang yourself like bankers are now doing on the i

ninety five take a look at this we have a picture there you see it now obviously this isn't real otherwise we wouldn't be laughing about it in this callous way but a graffiti artist has been working on a giant mural in miami on the ninety five that shows this banker hanging at the sign below it reads if you get wall street bankers and us rope they will hang themselves he will hang themselves i think that this is kind of a sign of the times that really kind of public discourse and even art is now kind of riding on this backlash against bankers and i think yeah i mean i think it's more. i think it's our proposal. to the occasion for the occasion i mean i think. people at that point remember during the french revolution. it's had its uses and i think perhaps the modern equivalent is the. the new for the bunker over the only five in miami it's hot down there in my.

film in the second or third version of his crops movie so maybe he's going to the bankers as time goes on there we'll see who you know shannon do you want to take bets on how many calls to the police this gets for looking very very real over the highway that was exactly what i was going to say like those cars in the background like i'd. like. especially because traffic in florida i think is really bad i think it's similar to the california science that everybody kind of drives a lot of you are going to see this i don't know maybe hollowing is the one thing i'm going for i'm moving on though. dead bankers to those who maybe would like to see their profits die there is a lot of talk now about pulling your money out of banks specifically b. of a not so easy blog about this and nomi prins came out with a list of ten good reasons why you should pull your pull your scuse me for a concert or your money out of bank of america and this is kind of

a whole new method of pull out method that's being endorsed for the banks i guess the question which is time old is it going to work well i think that what a lot of hard money advocates have been advocating for for score some time has been a way to curb loan growth where we've had a lot of loan growth. and part of that is the result of having a lot of fertility in the banking system so if we want to deal with contraceptive and i think the pull out method. could be transferred from you know. the bedroom as it works remember with us theme is a position of the sumerians above alone is the kind of the pull out my foot as a way of preventing unnecessary unwanted children through periods of excessive use of baby boom and so poor method or money out the bother to pull money out of the banks prevents the expansion of loans contracts and the supply and that could

really help put a curb on the type of fraud do in practice that we've seen at places like bank of america so i think. there's a result something there i predict that for all of the calls to bring down banks this way call me an eternal pessimist but i just i don't think they went out time of the month for them to report earnings bank of america is going to miss a beat and if they do because they have had a lot of trouble it's not going to be because depositors' lot their money is going to be for you know all of their derivatives or their exposure to you know countrywide and all these foreclosures jan and what you think of the pull out method is this the wave of the future for bank backlash i mean honestly if i were a bank of america customer. they did that to me i don't think i would pull out. if i i mean i just don't want to be charged like if you were going to emerge would you let them pull out is the question a lot of what pull out their deposits. i don't know. they really have

a choice like that like a want to commit money at stake do they really have a choice i don't think they do but the one thing that we have learned through this whole occupy wall street all of these protests is that if you are going to pull your money out and be a protester evidently you have to choose one because if you go in trying to do both you usually end up arrested which is a whole other issue. i mean i think you're saying no there with girls i'm just saying no i think the bank of america to suggest oh no no no we don't want to because it's we want to keep women and there's no there's no you know one hundred percent safe contraceptive is maybe their position for protecting your money so the best to do it moving on speaking of protecting your money came crashing in is doing a really good job of doing that most people hear about her for you know things like getting married but did you know how much money she is racked in from her divorce

she just piled divorce papers she reportedly made seventeen point nine million dollars from her wedding that boils down to ten thousand dollars per hour actually a lot more than that i just didn't want to bother with those details is this a brilliant business model this is i think the new business model going forward i think. for the rich and rich or famous or whatever you want to call it rich and famous famous is rich marrying using the proceeds of the marriage and the kind of sure on reality t.v. to generate revenue and the merge off of the recycle who's probably got marriage reproach. and just you could just kind of rule all these marriages over again i think it would work really well for someone like liz taylor who's a lot of them and she never think invention or monetize her marriage we're going to know that you know you don't know her but i'm sure monetize it in this manner you know in the conventional sense of the you mary are you saying that kim kurt. like

did this on purpose just get more money but i think that remains to be seen of if you were in fact the business woman inside a business woman and i believe she may be but in fact this could be the case in which case she's a pioneer i think really and a trailblazer in some of the she looked up to as far as new revenue streams in this age of television i think you never really know but i do think that it's fair to say that this is maybe a more profitable way to capitalize on stacks. of pull out that we last talked about. yeah because the pool method is it's very kind of forceful. we're going to get into details are right but basically she's taken her divorce all the way to the bank usually women are in a far more dire financial situation when they get a divorce but now also for her his record and speaking of raking it in walmart is a retailer that has continued to do so despite tough economic times there obviously

a very large company and in order to continue to do that they want to start charging their employees more money for their insurance premiums if they smoke and if they're fat that is one example of companies that are doing this i don't know i kind of think that if you're overweight or if you smoke it's fair to pay the price but i do think it gets into gray area because why would you need to tell that your employer that sounds invasive or southwest airlines is for the pioneer of this with their policy couldn't. buy two tickets so i think wal-mart what they're saying is look if you want to light it up if you want to do a bit extra you're going to pay the price and interest. only through the policy i don't think you should be smoking and they're going to. get it's like it's wal-mart by saks essentially they're imposing their own taxes that's a powerful corporation and that is our powerful. show for you that's it for our show thanks so much for tuning in please follow me on twitter out lauren lyster

also give us feedback on the show it you tube dot com slash capital account i'm lauren lester from everyone here until tomorrow happy halloween and have a good night. which was that she must. be a lot of people here you know this is the world populated as the world reaches still another hot. elation benchmark the debate continues as to whether the planning. sometimes you see a story and it seems so for you think you understand it and then you've lived something else here sees some other part of it and realized everything is ok. i'm sorry welcome to the big picture.

a very warm welcome to you this is your news today protesters on the wall street free to play at. least in canceling your chance to choose things to get the status of the human experiments good. business rap music and what it goes to the military trying to make sense of local economies and it's all changed things as financial templates the research to maintain confidence in monkeys and. wants to be seems way to balance his recession looks to be the nation's close to collapsing it's close to home for. some fails to pull a box again feel like things the us crash. feeling is a play call to.