a lot. good afternoon and welcome to capital account i'm laurin mr here in washington d.c. now as the euro zone debt crisis continues italy is on the brink of being an able to borrow and prime minister silvio berlusconi will reportedly resign one thing berlusconi has going for him though look at this at a cheap way out a low price airline is offering him fares for ninety nine euro a bigger picture though berlusconi's exit route aside does the example of italy show that markets rule policy and credit suisse will hand over the names of clients suspected of dodging u.s. taxes this is u.s.

authorities have been stepping up the pressure on swiss banks to turn over americans with hidden accounts something that's increased dramatically since the crisis of two thousand and eight is this just a warm up for capital controls also there's a measure of inequality that economists use sometimes when a reaches a certain threshold is believed to be a predictor of future social unrest well according to us census data for two thousand and ten the u.s. exceeds this threshold so what is this social unrest that we're seeing with the occupy wall street protests across the country we'll speak to a reporter who's been covering them from new york to oakland from the beginning she'll tell us what she thinks let's get to the capital account.

well first. we now see the second prime minister this week set to resign over the eurozone debt crisis italian prime minister silvio berlusconi confirmed today that he will step down jill do it after a budget law is approved that has to happen first now earlier today before that news came out we saw italian bond yields reach almost seven percent you can see the chart right there over a little bit of a longer period of time the thing about seven percent though is that this is the threshold the financial markets see is unsustainable and it could also result in a self-fulfilling solvency crisis possibly a bailout not to mention to see this type of volatility in developed economies government debt is not normal it is abnormal so here to talk about all of this is deputy editor the business insider joe wise and paul he is in our new york city studio i guess nice to see you thanks for having me absolutely so i want to bring

up italy's bond yields again because they've reached obviously joe this near seven percent territory which people consider many people in the bond market in financial markets consider unsustainable but if you look back just you know so let's say summer yields were well below five percent ok nothing in the economic picture has fundamentally changed about italy since summer so does this show really the power of fear and emotion in markets. yeah i think fear is a big part of it i think there are probably bunch of different factors one as you said fear there's the fact that europe hasn't been able to contain the greek greek crisis like they thought it would so for example if greece had been contained or solved maybe people would think that the other countries also wouldn't be that big of a deal but now people are worried about the greek situation the group dynamics are just going to play themselves out everywhere and i think the economy has deteriorated some more i think this summer people still weren't sure whether the

europe was going to go into recession now i think everyone believes that europe is basically in a recession right now there's a combination of factors and then the berlusconi thing and you know he's continued to lose credibility now if everyone and people haven't thought that with him in office and you reforms are possible so it's a big mess and at the end of the day any investor has to ask themselves why would i possibly own a tele and that is not a great reason to but that's kind of going to get and steals are exploding but you're talking about beliefs about political leaders you're talking about beliefs about what will go on more broadly in europe and these are fears and beliefs not fundamental changes in the italian economy. right i mean exactly markets are like that and they trade on expectations of what will happen and you know that everything is related to something else so people see what's happening in other countries and you know if you know something to think about is the fact that not only is greece not been solved by and the you know what they're trying but actually

what they have been trying is made the everything worse so the austerity that they've implemented in greece has actually made the economy worse and the deficits are growing wider people are looking at italy trying the same solution of they are going to ultimately just kill their economy but without anything to show for a shia psychology changes or risk profile changes change the economy changes yet and it's a very bad storm from italy quite obviously you talk about just this whole idea though of expectations and fear and sentiment on your website every day there's some headline you know they're freaking out about i'll bring one up about it because here's one that says how italy got to be the country that everyone is freaking out about so this shows that fear and that emotion so then is an illusion that policymakers have the actual ability to control markets and are they really out there just trying to give off the appearance that they're in control that they have a solution and that they can get this under control. yeah i think that's exactly right there is been you know i think the twenty six euro summit was

a very much about putting the genie back in the bottle or you know this idea that we can just you know that sentiment was getting out of control so if we can just rebuild the facade of confidence and sound structure then everything will be ok but greece kind of blew that up because right after the euro zone some of them pop and came out and said you know before we implement this we're going to reform and wait maybe we won't even be in the euro a few weeks from now we have to decide on that and then you know that has ripped off any confidence that they had suddenly the whole thing was exposed to be as kind of very frail union that anyone could maybe leave whenever they wanted that reforms that are agreed to by everyone don't have to be stuck with you never known vs days this thing like so you can have all these leaders get together and say we've agreed to implement these reforms or whatever but if the next day when they when a prime minister can come back to his country and say wait we're actually going to vote on what we just thought we had agreed to and how can you trust anything anyone

says then to this. that leader is more broadly are losing its p.r. battle with these examples or getting a brief that evidently. yeah i think you know it is a p.r. battle but it's also just the sort of inherent tension between domestic politics and international politics so you have these summits where they get together and they can all agree some sort of reform plan you know new scheme to bail everyone out but then and you know that works when they're all in common and sitting around a table and they're all elites but then they come back to their country and they have to explain it and they have to face voters and they have members of their own party who you know have to face reelection and suddenly it's not that simple so and also is fundamentally at odds because of what's in the interest of the world's biggest banks which is stability in the solvency of all these countries may not be in the interest of the people who are suffering under austerity and the measures that continue to make their economies worse and so it's

a fundamental tension that is very difficult to reconcile right the bigger picture are they losing the p.r. battle globally because obviously we're seeing italy's bond yields spike and this isn't because guess people and italy are going green with and measures they say e.u. wanted to implement so globally our political leaders are losing our battle within that. absolute the world looks at europe and left and they see these people coming together trying to end with a fundamental inability to do anything it's not like they haven't had a long time in the recent sort of greece became an issue in the first really got on people's radar in late two thousand and nine certainly about two years know of this and getting absolutely nowhere right now and so the world looks at it and say you and says you can't solve your own problems and. investors call the bluff of europe very fast so the going up is us of the idea of a step but what about the u.s. because the u.s. has pretty much one hundred percent that the g.d.p. what's protecting the u.s.

we've seen you know the whole debt ceiling debate a credit rating downgrade again what's what's differentiating outlets protecting them. the big difference is that the u.s. for all its debt and political problems is fundamental is structurally much more stable and it's not it's not really even a popular thing because if you think about it people don't have a lot of confidence in u.s. politics but it's a much better system where we control our own you know we you know we control or make sort of big difference that is actually the game that is everything that is there long as we're borrowing in the money that we control really we don't have much risk of it blow up and it's these countries where they borrow and other people's currencies and essentially that's what's happening greece is borrowing in a currency that it doesn't control italy as well all these countries and that should make such a big difference and so that you can't even really compare the dynamics between a country like italy and a country like us even if the debt to g.d.p. appears to be at some level well as you said the exorbitant privilege of the u.s.

is what allows its exorbitant borrowing to these levels and more importantly this is something i really want to touch on with you because berlusconi of course it will resign we know this and you know he has a really good offer to get out of the country ryan care a low price airline and if we can bring up this ad they've been running an ad offering a cheap flight of ninety nine euro they would they have berlusconi on the right this is a scapegoat and not only does it have berlusconi this offer but also there are beautiful girls on a calendar on the ryanair calendar on the same line now we know that berlusconi. is leaving we also know that he likes women reportedly beautiful ones so is this a good deal for him and also are we going to see other european leaders being made these offers the airlines. i think it will ryanair you know history in whole areas marketing the another company that does stunts like this a lot of it does weird things like charge people to go to the bathroom but they're

very good at this and you know i mean it is funny because you know berlusconi is all kinds of legal issues in italy in addition reggae's about to be out and the fact that he was the prime minister was kind of insulating him from all of these so you know you kind of wonder whether he's going to pull the move of an african dictator and just totally leave the country and never be show up again probably have gadhafi were still in power he would have gone to libya since they were old pals but that's fall apart for him so i don't know where he's going to go but you know just a role in the world but it's been a terrible year for incumbent leaders so it would be curious to see where he goes next and if he takes a cheap way out just real quickly we're almost out of time but if you had to predict what leader would appear on an airline to get it cheap offer out of the country would it be. who may be cozy and somewhat known i think he's probably probably whoever's the next what ingres i don't know who the success sort of proper draw is going to be just as much of

a mess. pop and dry as so that's why it doesn't i guess flights from greece the next that big ad we're going to be talking about on the show all right thanks dan it's great to see you that's joe biden he's deputy editor of the business insider. and still ahead on the capital account the gini coefficient it's a measure of inequality that economists use and when a reaches a certain threshold it's believed to be a predictor of future social unrest so could this explain what's going on with occupy wall street we'll speak to the our t.v. producer who's been following the protests from new york to oakland to washington d.c. on the ground to find out that first there closing stock numbers. above .

you just put a picture of me when i was like nine years old i just you know lived through. i confess and i am a total get over friends that i love rap and hip hop music i'm pretty sure. that it was kind of the just pretty. much. i'm very proud of the role without you she has played. oh oh. oh. you know sometimes you see a story and it seems so pleasing to understand it and then you glimpse something else here's some other part of it and realize that everything you thought you knew you don't know i'm charged welcomes a big picture of. what

drives the world the fear mongering used by politicians who makes decisions completely break through that sort. who can you trust no one will is your own view and with the global machinery see where are we heading state controlled capitalism is called sessions when nobody dares to ask we do our t. question more. subdued. welcome back we've talked a lot about income inequality on this show and one measure that economists and analysts use to gauge it is called the gini coefficient and once a country reaches a threshold it is considered by some to predict social unrest as

a result of it now the scale is from zero to one and the threshold is point four and one is a more unequal society the united states according to a two thousand and ten census data is point four six nine so what's past this threshold it has been so this is a predictor of social unrest lots of economists have predicted social unrest as a result of inequality the question is is this what we're seeing with the occupy wall street protests all across the country now the other thing i should mention is that some people dispute the income inequality has exploded and they point out that income inequality has been rising for decades so then the question becomes why now for these protests and if not about income inequality what really has driven people onto the streets across the country and are they united in one goal one complaint well we've heard a lot of different reports but we have not heard yet on our set recently from

someone who has covered really so many of the important movements she was covering occupy wall street pretty much from the beginning every day i don't think she slept at all. and she also just most recently was covering occupy oakland let's show a little bit of her reporting. still reporting from the vocal entrance as you can hear behind me loud explosions possibly tear gas from the police officers there are these. so she's been in all sorts of situations in various occupy wall street protests and she's here to help us really figure out what this movement is lucy i'm so glad to have you in studio on the show after all of your travels and all of your covering of the sudden the terror i know i know you've been running around so my first question for you of course there's all these different protests all these different movements and you've been in new york you've been open you've been in d.c. you've also covered a number of other events from afar. is this one movement they can be united by

common goals common grievances common tactics or is it different and very much kind of talk i think it's kind of both i mean the factors that i think unite people and coming out to the streets are very similar whether you're in oakland new york or missouri i'm not sure if there's not a missouri movement there but if it's people sort of protesting against the perceived unfairness that has taken over this country the fact that banks seem to get bailed out while regular homeowners for example suffer in their mortgages suffer and there. are foreclosed upon the piling rise in student etc etc it's all i think all these economic factors do give it this. being one unified movement but of course it has sort of local flavors as evidenced by for example what we've seen in oakland versus new york city so yeah but i also think that a lot of people make the mistake of trying to paint this movement as some static thing that you know has a beginning and it's something that's developing as we speak history being made

literally right before our eyes and i think it's changing tactics and learning from its own tactics and sort of developing as a whole as it continues but i do i do think it's it's united by the same concerns i guess but i wouldn't say that it is one movement where you know a decision that's made in oakland with guaranteed be replicated in new york and you see it manifest in different ways and have kind of different kinds of protests i know in new york you know the horrible stereotype of a bunch of hippies which i know is not representative at all but then in oakland you know you saw what seemed like from your reporting kind of more of a militant atmosphere i want to give our viewers just a little bit of a. glimpse of that if they haven't seen this interpreting. keep shooting catching the shooting shoot shoot me shoot me there for their shoot she's been there shooting. we're standing on sixteenth street and telegraph or police officers just shots some sort of a warning shot that does not look like it was actually tear gas but protesters that

got a little bit too close to to the line of police officers as you can see if we can pan to that right now they are lined up here waiting to see what situation develops for now very probably should use a different word in the shooting or you know what that was the good bye and obviously that was from the police but earlier we saw some other stuff kind of exploding behind you in your other stand up was it more militant in oakland or how absolutely absolutely both the police response and the people i mean the thing is the area opened especially has a very strong history in sort of rioting and coming out and mass and a lot more sort of tension and better tension between the citizens and the police i think the prelude for those kinds of clashes were already there not something that for example exists in new york as much where the police brutality was sort of one off instances that i think really shocked everyone but yeah i mean in terms of you know when you talk to the protesters themselves for example in new york you know you ask people about capitalism and they would say ok well the problem isn't

capitalism it's you know x.y.z. issues surrounding how capitalism is implemented and opened you know capitalism is the problem and we want to overthrow the system no ifs and buts about it obviously you have a different range of perspectives but there's a lot more people who are comfortable sort of not scaring off middle america and whatever media journalist that may be covering the scene that's really interesting i'm curious out of all of the protests that you've covered if you feel like this is social unrest that economists have been predicting it would come from income inequality that's that's the tricky thing i don't think i would say that this is social unrest i would say it's maybe the seeds for what you were talking about in the lead up to your intro because social unrest would be for example what we saw midnight and what i was just reporting what the. viewers all across the country right now is sort of an organized peaceful group of movements all across the country it hasn't really view it into you know window smashing and you know anarchists walking around and throwing things at people so i wouldn't really say it's that i definitely think it has the root cause of that because again you know

what's changed in this country we've always had income inequality that's you know some people could argue that's been invented in our history from the founding of america but i think the perception that the rule of law another american ideal doesn't equally apply to all is something that sort of spurred people to come out to the streets and just quickly i need a quick answer but is it about social mobility because in emerging countries that may be poor you see this sense of people coming out of poverty of a way that they can move up in the country and the united states that doesn't seem to be the case and back support that do you think that plays oh absolutely i mean it's the destruction of the narrative of the american dream we used to think that if you work really hard at it you can achieve whatever you want no longer is the case the financial crisis has destroyed that i think that's been the biggest push in getting people to turn out they don't feel like their hard work is going to be rewarded they don't feel like you know the rule of law is going to be on their side they feel like i'm going to be on the side of the big corporations i think that's the difference factor and that's what made this movement happen now and not for example in the one nine hundred eighty s. all right well we certainly appreciate you coming on and connecting the dots for us

from everything you've been doing in the field i bring it here this you are doing such a good job that was lucy cavanagh she is the producer really reporter who's been covering the occupy protests really from the beginning all of the country. all right so we've gone through some of the very serious financial news of the day now let's lighten it up a little. but actually our stories today are about light but we're going to give you a little bit of something more happy to end on so we're joined in the studio by dimitri craftiness our producer and shannon donahoe are the producer who's multitasking in the control room so we know times are tough and push for space

a spanish cemetery has begun placing stickers on thousands of burial sites whose leases are up you heard me leases are up as a warning to relatives or caretakers to pay up or pace face possible addiction now the city's municipal graveyard have removed remains from some four hundred twenty crips in recent months into a common burial ground so. i mean is this what it's come to work foreclosing on gravesites remember spain this is actually spain spain have a huge property bubble of the two thousand and they had about six years of excess inventory. and this is what happens when you don't allow the market to reset they had about maybe a twenty percent price drop but not really or for kind of the leveraging the spanish real estate market and now people can't even afford their or their gravesites anymore so even though people are being evicted nobody literally. will and the death doesn't excuse you i mean death you don't get out of your debts you

don't get out of the price you're paying for these economic situations and it's not limited to space we've seen people in l.a. or when i was a porter there the board was overflowing because they couldn't pick up audience i think the same thing obviously happened injured trait we've covered that what you think i mean i think we need to give props to the cemetery for actually putting little notices because i mean obviously it was or it was seen throughout the u.s. from cemeteries just take bodies integrate. that was there was a new. that was something. ok let's move on basically i think it's crazy that you can we've gotten to a place where grades are least because you're going to be dead forever all right switching gears someone was at the airport forever not forever but eight days she slept there because when she arrived at san francisco international airport who was she was hoping to start a new life in idaho she had nothing but an airline ticket to bags and thirty dollars to her name this was not enough to pay for baggage fees so she didn't know

what to do she stated airports then she missed her flight couldn't get another flight because she had to pay for it and didn't have the money finally the airport church raised two hundred ten dollars so that she could board a new flight because that's what it came to does this really show how heartless airline companies are and how they have a monopoly on ruining your life there's no escaping this but i figured she was actually a bigger story that you're missing because. of the church the church said you know what we're going to want to stay here we're intervene and we're going to buy this woman a plan to go home and so we're going to try to get our power back again soon because the church is very powerful to middle ages and now this is kind of but who's visiting us here who's a stay here because this is the church versus the airline company and companies are but with the government of the government doesn't want to for nine eleven they've been an oligopoly for a long time for the church saying you know we're going to come back more and take

back our authority share and we think. honestly i think the airlines are just being literally pains of the book for charging all of these things i think i think the worst thing about it is how unapologetic they are us airways issued a statement and i unfortunately don't have a verbatim but they were basically saying we're really sorry that this woman had a bad experience but sorry she agreed to the terms and conditions so it just shows there's really no getting out of it i feel like this airline industry is the biggest racket in the world today switching gears we've been talking about austerity faced with the difficult task. of balancing a budget in these austere times officials and new york's suffolk county said on friday they had no choice they have to sack santa the county executive said he couldn't justify carving out six hundred sixty. sand is not that expensive six hundred sixty dollars to pay for santa this is sad this is the. fantasy for children come on. so you get used to thinking.

you know this is this is you know i mean i understand why they got a person obviously if you're going to be santa is super for you i mean what the hell's the point of being santa if you have to get paid for who i'm going to disappoint to you i love you lauren here on the right you can see lauren she's very supportive clearly. of course as always and pure at heart is her heart is being wrecked by the absence of santa i think i think that they're like those kids aren't going to go there santa at the end of their trade if he didn't have a great you know what they're getting their parents out of a tough situation if their parents really can't afford us can't afford to have santa. won't have to be you know seeing him in the mall every weekend this is the problem with char liberal laws we should allow the works on the children of the strength of this workshop and then they can pay for santa to this is a business you know you will write to me if you will let you know county executive

in suffolk county you know that he thinks you should put children i would said i can't stand as a lot to work to pay for and that's it that's all the time we have but thank you so much for watching and come back tomorrow for a new show from everyone here i'm going to. los angeles to chicago to birmingham twenty traumas. centers have closed since two thousand supermodel has not enough in-patient beds not on the third emergency department beds and not enough nurses commandos there to take care of all the people who are here the only real health care system that we have in the city of los angeles is the los angeles fire department in fact when i started my venture is a firefighter i didn't want to ask i started out i want to just do firefighting it's about eighty two percent of what we do the fire department is medical but they

had a rescue a couple weeks ago waited four hours for big i've waited sometimes three hours i was at sea say frances in lynnwood for four hours and fifty minutes staring at the wall in the face and we have a federal law that mandates that if you can't turn no one away who seeks care in an emergency room. we have the most expensive health care system in the world and it's probably valued the least.