welcome they want to show where the real headlines with none of the mersey were going to live in washington d.c. now tonight or to speak to william black about the m.f. global scandal federal regulators passed a new rule yesterday to limit some of the risky behavior and corazon has been subpoenaed but is any of that going to be enough then where will the libertarians go if their only options end up being newt gingrich and mitt romney and two or big government conservatives washington insiders so will the libertarians have to

choose the best out of two evils or is a third party candidate the only way to get their vote and the electronic frontier foundation is now asking the government to allow more jailbreaking on i pads and on video game console but companies like apple and sony aren't exactly fans so we're going to let trevor tim make the case for why jailbreaking actually helps us all but of all that more food i couldn't gets most of happy hour but first take a look what the mainstream media has decided to miss. so tonight in order to critique the mainstream media we actually need to go back to guest today for a minute you see over the weekend iran claim that it had in its possession a us our q one seventy seven all drone yesterday u.s. officials confirm that yes iran doesn't fact now have its hands on some of our most advanced technology and the media followed with the story. top secret u.s. technology is now in the hands of the iranians claiming that it shot down a u.s.

spy drone like this one over its airspace it is highly unlikely that iran shut down this drone that more likely there was a problem with the satellite connection or some other sort of mechanical malfunction military officials confirming tonight to fox news the slavic republic has indeed gotten a hold of a sentinel drone similar to this one that went missing last week and the only thing that the u.s. will confirm is that they lost a drone but they insist that they did not have one shot down by the iranians for the iranians to get this sort of technology could be harmful to the u.s. down the road the a rainy and could exploit the high tech cameras the the audio sensors perhaps even some of the stealth technology. now as i mentioned yesterday i found it slightly odd that suddenly every had woken up to the notion that hey we might already be waiting a covert war on iran suddenly they started putting the pieces together i remembering that a number of iranian nuclear scientists have been killed mysteriously and there was

that whole virus thing called stocks net and there was a massive blast on a missile testing site iran three weeks ago and when you start to think who's interested might be in to disrupt iran's nuclear military capabilities well kind of starts to make a little bit upset and i will even note here that most of the actual reporting that was able to put the pieces together well came from online publications yesterday not the cable media but they did at least give it a bit of a shot but if you ask me the most disturbing thing about this entire situation as it there is a covert type of war going on and yet nobody out there in the television world seems to want to ask under what authority all of this is happening i know that the president and congress never asked me i've never seen any public acknowledgement of the president even warn congress about it although that's right the mainstream media has dutifully reported that this was in fact a cia drone and since the c.i. . drone program is secret we're technically not supposed to know about it unless they've killed some bogeyman or had a real mess up like this one well they're just going to leave it at that and stop

asking any questions that's become very obvious with their coverage of this today which is zilch nada none at all they've completely moved on and go back to the back and forth what gingrich and romney are saying about each other what donald trump is planning to ask at this debate that he'll be hosting if yet another shadow war another nation's sovereignty that were violating and nobody cares they've forgotten all about it we have no idea where this could be headed iran's revolutionary guard isn't put on high alert and i'm pretty sure that somewhere in some back room here in washington john mccain and john bolton are just sitting together and grinning because war with iran what they've been wanting for so long just might be finally at their doorstep but honestly the last thing of this country need the last thing in this world needs is another war any type of military conflict whatsoever and yet instead of speaking that kind of truth our mainstream media just plays dumb they pretend like the massive blanket of secrecy under which all of this is happening is no big deal and they choose to miss.

yesterday the commodity futures trading commission voted unanimously to adopt what's now being called the m.f. global rule although that in the works since two thousand and ten the timing and the naming couldn't be more fitting with the recent bankruptcy of the brokerage firm m.f. global which is now missing about one point two billion dollars of their customer money now this new rules going to limit how the brokerage industry can invest customer money barring the firms from using client funds to buy foreign sovereign debt and preventing the types of transactions that allowed m.f. global to borrow money from its own customers but the thing is it was in fact john corazon himself that had lobbied heavily to have this rule postponed and all the details over exactly what happened m.f. global have yet to be entirely sorted out the. federal investigations congressional hearings we have to ask do we really think the core zine is going to be held

accountable and could these practices be more widespread than we think joining me to discuss is william black former federal banking regulator and associate professor of law and economics at the university of missouri kansas city he's also author of the book the best way to rob a bank is to own life well i want to thank you so much for joining us tonight and i want to get into a few specifics and some details with you but i guess overall when you start thinking about this m.f. global scandal what it's become one of the first thoughts that come to mind well what a perfect leader and it was to have a still drone. flying here which because they. didn't take. a course in the bible is old those to do with evil the light. now at this point i guess you could say that big bangs of easily become the national boogie men in the country that everybody has already had their mind made up when it comes to wall street or i guess not everybody right there so a lot of republicans out there that they choose to support them but in the public

perception with the occupy wall street movement we see banks as this bogeyman do you think that we should start paying attention to brokerage firms to could this be something that's more widespread that isn't just about m.f. global. all of these things are financial firms in the real distinction is financial firms in the old days people thought it was essential whether they had deposit insurance and supposedly we were only on the hook if we had deposit insurance you've seen that that was no longer true with the investment banks that had no deposit insurance so this whole stealth of banking system the shadow banking system is actually much bigger than the financial system and mother way it isn't just republicans the finance industry is the leading political contributor to both of the major parties in the united states and neither party has been willing to bring prosecutions of any of the only bankers. that is

a very very through point there now how do you think they're responding to this. federal investigation of lives. now we have this and that global rule that's been passed by regulators it's a little bit of a faster response and we saw with the financial crisis it is and it's the important thing that you can do far more by regulation far more quickly than anything that takes a legislative process so if we had a real regulatory leaders we would have had real responses to this crisis years ago instead we have people that cover up and indeed that are actively seeking to prevent prosecutions and i'm referring to treasury secretary geithner. we still have not yet to this day seen a single prosecution and so in that sense the fact that he's going to have to go to

capitol hill go speak in front of congress do you think that's at least a promising sign or a seeking to get off scot free the way that all the other bankers did when they were also called to capitol hill and they just got to mosey on out well i was for the from dick fuld the former head of lehman when he testified and i justified. i blasted the role of lehman brothers and not a single shops need to question those frauds from any member of the committee either on you know they were. so you're basically saying that you don't have very high hopes for what we're going to see on capitol hill this time around and so then what happens to all those people you can say to the traders to all the farmers that have been affected all those people have lost one point two billion dollars of money they just have to lose out. still and i do have high hopes

of my expectations are a lot lower and i've seen how effective we can be against these frauds and as you say a very large portion of the citizenry and it's not a partisan divide are absolutely disgusted with these and are demanding action it's only our political class that is making the excuses for the large banks so i have not given up hope at all that we will see the prosecutions but you'd know it going to know it's serious when geitner is removed and when attorney general holder are removed and the replaced by real regulators and prosecutors what you look at is what the president said today when he gave a speech in kansas sounds like he believes that some form of justice has been done and that regulations really have been put in place and take a listen all of this is being put in place as we speak now

unless you're a financial institution whose business model is built on breaking the law cheating customers and making risky risky bets that could damage the entire economy you should have nothing to fear from these new rules. but part of the deal was that we want to go back to business as usual and that's why last year we put in place new rules of the road that refocused the financial sector on what should be their core purpose getting capital to the entrepreneurs with the best ideas and financing millions of families who want to buy a home or send their kids to college. and we're not all the way there yet and the banks are fighting us every inch of the way. it's a way that having two clips there they were they were butted together so let's start with the second one where he's talking about what's going on in the banks

have been fighting all the way and you know what do you what do you think of the president there because i feel like he sounds like they think they've been doing a good job. well he's back in campaign mode and they think this is a better issue. he can't even in campaign mode bring himself to use the f. word the fraud word so he talks only about risk and has almost nothing to do with this crisis fraud is a sure thing and that's why they gauged in fraud as opposed to desperate risk ways and they'd be walked away incredibly rich because of it in the c.e.o. ranks he was wrong about the regulations being in place the statute was adopted it doesn't do very much but it can only be affected through regulation and the administration is correct that the republicans are trying desperately to delay the regulations but what he hasn't told you is that he too has ordered delays in

a number of the use regulations and this m.f. global shows you what happens when you delay regulation you get one disaster after another only about eight percent of the regulations required out of the dot frank bill are actually adopted so overwhelmingly it is business as before and so now let's go back to that first guy that we played i think was basically telling the banks that if you know if you are if your business is being run in a fair and invest matter if you have nothing to hide than these regulations at least you know the few of them that have been put into place shouldn't fear scarier and this is something in writing about before you know if there are some some good bankers out there then where are they why are they leading the charge against those that have been breaking the law. yes that's what i would have to advise to improve

upon it that's a defensive the positive tone is the only way to protect honest bankers so that they are not driven out of the marketplace by the frauds is to have effective regulators and then means of active regulatory cops on the beat and of course president obama has not been appointing affective regulators who stick failed ones like geithner and like bernanke he and either promoted them or reappointed them but at least yes it's true if you will focus on putting the right people in charge we can clean this place up right now it's a real sewer i guess it makes it difficult to imagine to how you put the right people in charge considering that there is always so much opposition if anybody seems like they are going to play the game that it's always been played and that you know even president obama gets labeled as anti-business all the time and has to

then make up the wall street even though i can't really see anything of his down that's been anti-business and so many of the people that are from wall is very are in his very own cabinet so i think that you know it's good that there is hope out there but sometimes it just feels like such a frustrating road because it's all this massive revolving door well i'm i have to wrap it up but i want to thank you so much for joining us tonight thank you. are just ahead on tonight's show the occupy movement is taking on new forms after a wave across the country now support trying to help those that have been kicked out of their own homes and how the libertarian scale about the upcoming election is out the possibility of gingrich and romney getting nathan. let's just say that they're not feeling so good. internally or military mechanisms to do the work to bring justice or accountability . i have every right to know what my government should do if you want to know

why i pay taxes. i would characterize obama as a charismatic version of american exceptionalism. you know sometimes you see a story and it seems so silly you think you understand it and then you. hear or see some other part of it and realize that everything is. i'm trying hard look at the big picture.

mr. it is the police corruption. but what a protester nobody seems to know. but never a pepper sprayed the face but part of the argument that they're being overly dramatic. movement has taken a new turn as organizers and nationwide have shifted their actions from protesting

the big banks on wall street to defending those that are being harmed by the big banks december six has been declared occupy our homes day or occupiers and their supporters are going to try and help those facing foreclosure and they promise to stand up against fraudulent lending practices and what they view as illegal evictions by the banks and one of the organizers maximo explains of the goal is not only force the banks to allow the family to stay in the home but also then force policy changes that would help thousands of other people for whom we're not doing in fiction defense it's now just by the way of foreclosures we've seen the past few years since the financial crisis a new study from the mortgage bank association says of the foreclosure crisis is only fifty percent over and the question of behavior by banks and mortgage lenders which led to the crisis is still prevalent in fact just yesterday the state's attorney out of adam filed three more complaints against signers of the occupier homes campaign hopes to further expose the damage done by the banks who knowingly sold faulty loans to families who would have had the most trouble making the

payments. i'm not. sorry. you know. i want to. keep my. leg and make my house before. i moved here i want to stay. there. i just need. a place so that if. it's with a prison. now the banks knew the loans couldn't be repaid and as a result millions of people are now being kicked out of their homes and they were told they could afford the campaign also points out the millions of americans have lost their homes their illegal foreclosure practices and now banks while mortgage payments made based on the price of their homes before the collapse so today people are teaming up in more than twenty five cities including new york chicago philadelphia atlanta san francisco and portland to stop the banks from taking away the homes the protests will include taking back. abandon or invicta houses the banks are leaving vacant and creating a home defense to stop banks from foreclosing new york citizen radio co-host alison

kilkenny and guest here on the show has been live tweeting everything that's been going on she explained there's a tour of the homes that are facing foreclosure and that people are teaming up standing our dogs on doorsteps sometimes even linking armed arm to keep homeowners from being a victim check out this video of protesters in chicago chanting the everybody has a right to a home. right now organizers plan to continue their fight against the banks after the coordinated action we saw across the country today on the occupier homes website you can sign a pledge that says that you will support homeowners resisting a wrongful foreclosure evictions resist any attempt by the bank to take your home and if the banks do show up at your doorstep you pledge that you're not leaving so this is just one side of the occupy movement is starting to use other tactics than

just campsites and i say that's a positive step. now as we get closer to the primaries and look at who just might be the g.o.p. nominee for a lot about who the republican establishment does or doesn't want we've heard a lot about who the christian conservative base does or doesn't want but at the end of the day in these respects the establishment candidates can all kind of fit the bill but what are the libertarians going to do at the moment ron paul gary johnson they're both still in the race pozen fact doing very well in the polls as he always does coming in second and i were tied with romney and gingrich is actually leading the field but what happens if you are mitt end up being the final or only options libertarians really vote for either of those big government establishment conservatives or discuss with me is j.p. fair senior communications strategist with new media strategies j.p. thanks so much for being here tonight thanks for having me so let's as i mentioned ron paul at the moment is doing pretty damn well as he always does in the polls and he's tied with mitt romney at eighteen percent in iowa for second place but what do

you think realistically be honest the chances are that ron paul is going to be the nominee for the g.o.p. oh i don't even think i first i think ron paul supporters genuinely believe that he will probably be the nominee and i do i am asking what do you know but and the reason the reason that they believe that is the same reason i don't think so which is that it's just not realistic to think about it in those terms and further i think that it's very problematic that you have this large group of libertarians with whom i agree on a lot of policy issues that are really willing to fight for their policy proposals by which i mean they are not willing to make the compromises necessary to make sure that those policy proposals are heard by administration or romney administer what do you mean elaborate how are they supposed to why would being rich or romney necessarily listen if you need let's talk about newt gingrich let's talk about mitt romney and who these guys are these are i call them big government conservatives because we have a lot of them in our government that have no problem with tons of government spending if it's for the things that they like including defense including endless

wars when it comes to health care but i most guys have a little bit of a. marcie well basically that's all we're in right now right we need newt gingrich is the guy that said that we have to be scared for the rest of our lives at the last g.o.p. debate seems a little and less if you ask me. well i would say that what it means to fight for their policy ideas are to show and make noise on the right in order to make sure that gingrich and romney feel like they have to pay attention to these to this group i mean they have to basically pull the center further to the right or further towards libertarianism then they would if they were simply to bolt and to go for a third party candidacy and the fact is that ron paul has set himself up in such a way that he could run as a third party candidate if he decides at which point then the election goes to obama. yeah that's probably you think will happen is that the election automatically obama i don't think anything on the ron paul might take away obama supporters the same time right because you can say that there is

a faction of the left that is incredibly disappointed with obama when it comes to specifically his civil liberties records i'm sure it's also very strong libertarians sure i mean i think i think that that's fine but i don't think that it's going to be enough to prevent an incumbent president who already has an advantage from staying in office i mean the real issue is that libertarians are willing to participate in a program with which they don't agree on every point right i mean you know gingrich is a flawed candidate no question romney is a flawed candidate but every single candidate under a libertarian rubric that you know through a lens of a libertarian is going to be flawed unless they are ron paul the question is how do they figure out how to deal with so what do you think they should do do you think they should just suck it up and half that she was one of these candidates in their minds or they should you know that can help that ron paul does run a third party ticket so they can just vote for that for him and feel good about themselves you know i mean is barack obama so much worse than one of these incredibly flawed g.o.p. candidates i mean one of the things that i think is really great about libertarianism is that it deals with real problems and in what should be a real way which is looking at the incentives looking at the economics and it's

a shame that. they don't really apply this rubric to the politics i mean if they do work to support ron paul for a third party candidacy i mean they know that they're not going to get president ron paul instead are going to get more of the same that they've been getting and they won't have made any inroads into the republican party i mean the way that the libertarians should be going about this is by taking over local republican parties and making it so that it's oriented not towards a candidate i mean not just towards ron paul but towards the policies that they advocate and if they can achieve this on a on a on a local level if they genuinely believe in federalism and they want to see the states have more power they need to empower those states to actually take on these policy ideas and i don't know if so then in that case let's talk about the difference between you want to talk about going local do you think that there's a difference between some of the tea party activists and libertarians you might see in other parts of the u.s. forces i guess you could say the the think tank the libertarians that there are so many have here in washington d.c. that are at reason that are at the cato institute that feel like there might be

some divide there there might be a bit of a divide but i do think that the washington d.c. libertarian think tank said would do well to at least show that there is there is a way to work within this kind of compromise because there are people to whose expertise a lot of local activists might rely on or they might say you know i can listen to this person arguing this point of view i think that there's an opportunity that they're missing when they're saying look all these people are flawed i'm not going to vote for a single one of them you know they're not realistic i just want my person well i mean if we all believed in unicorns that would also work but you know it just it just doesn't work and i want to work in the unicorn's reference ok so so if you have to work with a certain person though right let's say that you have it romney or newt gingrich and then you're trying to get people on the local level to please try to shift the conversation which i think ron paul has really greatly done even just with his presence at the debates this far then which one would it be you know i think that there are merits on both of them right so i mean newt gingrich is more likely to take on some harebrained kind of crazy scheme what the mainstream might thing.

harebrained i'm crazy like. i don't know nothing is coming to mind immediately and i don't want to have a. brain lapse but you know newt gingrich might be more likely to grab something that libertarians might go you know this is great as a bit of romney congress or you could say the new gay marriage is the kind of guy that is very very stylish right here in washington these are the guys been around forever and i was like that special interests influencing somebody right if you want to talk about somebody who is willing to give up their civil liberties for for war on terror policies newt gingrich is that guy yeah and again i mean you know we're talking about compromise here so whereas you know mitt romney can be the kind of guy where you can influence him because he does tend to go back on on promises he does tend to go back and forth on various ideas i mean we've shown we've seen that with abortion we've seen that with with health care i mean now he's talking about repealing obamacare and talking about you know he's still kind of middling on romney care in massachusetts in other words both of these people can fall under the influence of

a vocal and involved libertarian group the question is whether they want to be involved well it sounds like both of these people have proven themselves they can be flip floppers when it's convenient for them right or politician talks about their politicians but so in that case i'm not really convinced that let's say that libertarians feel that they're finally getting mitt romney or newt gingrich to start speaking in their direction what is that supposed to me and right it's probably all going to be a crock because they just say what they need to when they need to in order to get elected yeah but sometimes you get the people to say what they need to say in order to stay in power and they get the thing done that you need them to get done so it sometimes it works that way ok so you say it's completely unrealistic that ron paul is going to be the nominee i i think that he's been doing really well in the polls i certain places but i don't see him ultimately getting the nomination and i think that libertarians have to think hard about what they're going to do is the next step are they just going to go for a third party or are they going to hold out hope for the next four years or are they going to try to create change now ok and do you think that he will run. on a third party on a third party take on writing then i really hope i hope ok and. misting r j p

thanks so much for joining us tonight thank you. well coming up next we have tonight's show intel and then pakistan modifying game systems as a result i wonder if they want to change the rules against jailbreaking and they say because actually in the end after its benefit it's plain for. me. to believe the rest. think. what a protest nobody seems to know. but never a pepper spray to face quite a lot of the argument that they're being overly dramatic.