it's part of the volcker rule which is part of dog frank and surprise surprise lobbyists and big bank exacts have come out against it will break down what's really at stake here and u.s. president barack obama has been pushing in-sourcing with his jobs council just as a new report comes out showing at least one of the very corporations represented on that council are outsourcing more jobs and r. and d. to asia so what is the deal we're going to hash it out let's get to days capital account. so greece faces get another very large this time around fourteen point five billion euro bond repayment on march twentieth the problem is greece can't afford to

service this debt and has been desperately trying to forge some sort of agreement with its creditors that would allow further write downs and an extension of repayment times so basically let me break this down the greek government is desperately trying to avoid default trying to negotiate with its creditors to see a deal on debt relief that is going on right now that is the big news but what is really new here the seriousness of the situation in greece has been very clear or at least should have been very clear to everyone involved in these debt negotiations from the start so our european leaders just imposing a bankrupt ideology onto a bankrupt banking system playing the fiddle while the euro project burns at their feet well let's see what yanis varoufakis thinks he's professor of economics at the university of athens he's also author of this book you see there the global minute america the true origins of the financial crisis and the future of the world

economy professor verify because it's so great to have you on the show especially on this big day for greece presumably so let's get right to this because it really seems like greece is in default already it seems that the greek government is really just trying to renegotiate its debt in a rational way that would allow it to continue servicing its payments without going into a total depression it seems like creditors and like the troika investors are really trying trying to squeeze blood out of iraq here what am i missing but my job. is going to hold. but the whole point of this negotiation is how to find the euphemism which allows you to claim that this is not the fault of this defaulting it may sound cold but this is the state of play. europe has decided to that was back in october

in its wisdom to pose upon the banks a massive haircut on greek debt right now i don't know that since the banks are already being fed by the e.c.b. and you have been taxpayer the mother's word to get hit for this mess that the founders of that but the conundrum here is that. great and good european leaders decided that not only would they impose this haircut on the european banks but they will impose upon them that haircut should be voluntary so as the of the getting of the c.d.'s contracts that are floating around in the marketplace and that's a great point i want to get to those c.d.'s but i want to ask as you're saying basically they're they're playing at what sounds like a p.r. game here and we were back reporting on this when all this was happening when those voluntary haircuts were announced and we were going to one of the voluntary haircut come on you want to take that what do you think greece should do at this point in

there should it be for the long time ago we should have defaulted to years ago. well but the leave the never and what we should do we should call the bluff of the european union leadership and put an end to this vicious cycle of subterfuge of lies or. should i think it's because what. it took the short term in the other we are going to impose a heck of of the banks like stopping the successes from forgetting so it would force the banks looks out that this isn't what to do. but in doing so. inadvertently idiotically let me put it partially they've created a new field of global hedge funds because hedge funds that they are that little to sever the work that we started but i get a government bent with a very clear stratagem in their mind that we're going to say well you want us to be

important to note that we're not clear and bold so the banks can agree to this haircut if you force them to but we're not banks where the hedge funds. and you're going to be deemed the bonds of we just purchased what thirty five cents to the dollar of the europe. of the one percent if you don't if you want us to to play ball and not to force this in the us as to digger so this is what happens when you're trying to deny the island in the european leaders of being in guns and in others and. has begun insolvent two years ago and so have many of the european banks instead of accepting this situation and dealing with europe is trying to deny that the and to keep finding excuses for not facing it and because you bring up the c.d.'s and we don't know what these negotiations that are going on now if now the credit default swaps would be triggered you're talking a bit about the c.d.s. the role it's played longer term how is speculation in the c.d.r. as markets how is that affecting negotiations now. immensely look bigger hedge fund

that has that owns a number of c.d.'s is which are going if they trigger they give them plenty of money and at the same time this is what has fun and still there the purchased good government bonds in case they manage to convince the european union and the i.m.f. to deem those bonds to the fall to them so as not have this the esas figure now these hedge funds are going to play this game between pushing for the fold or accepting a haircut but they will demand their pound of flesh for it so europe has given the abundance of the. industry as well as the star the gems that have been utilized as a result of the silliness of you to be only that paper has fun so the driving seat

of the moment even if the size of this deal is struck between the official sect of the european union the on the one hand and the bankers on the other that this is not going to be the end of the story because even if this agreement is announced with good fun joy and around. then the days will not be learns that in the next few weeks there's going to be some very hefty bargaining between the hedge funds and the powers of be absolutely sure seems like getting you're saying greece had a defaulted a long time ago greece is going to default you've actually said that the press takes for granted that a greek default would mean that greece accepts the euro so there you go clear it up for us in the press eon is why wouldn't it. first the question is in the eurozone why would have come to get out of the euro zone firstly who is going to push it up so that it's the falls to market now how will it be forced out of the euro what is

a mechanism for doing that there's no legal mechanism it's a question of putting it to the vote amongst the rest of the eurozone that it maybe sixteen members saying ok let's have a vote let's get rid of these big guys they gotta do that there's no legal mechanism for doing this so there is no maybe it is for getting into greece what's cases in the you stuck there for everyone and even greece wanted to get out firstly it would have to get out not only of the unison but the european union this is what clearly stated in that if you release them and that will be suicidal for greece to do so greece wouldn't want to get out of the eurozone if they defaulted and the rest of the eurozone couldn't get rid of greece so what is let's talk about the guarding the equation between the before the next of the years and let me tell you what it is it's just an empty not credible threat on the part of the political. greece and outside of greece. it's a blackmail of the using against the greek people took two to have them accept.

irrational and then work up a bully so you are saying the greek people are blackmailed it's interesting you bring that up because it struck me today i was very early listening to the world economic forum's press conference about davos which is next week and angela merkel is going to deliver the opening remarks so she's presumably i'm guessing going to talk about some of these solutions that european leaders have come up with for the crisis to a room of the heads of state of some of the wealthiest and most powerful business elites in the world in a place that is literally and metaphorically very far removed from the actual people that have been most impacted by the policies of european leaders who is it more important for angela merkel to convince that these solutions are solutions or working those people in davos or the people all over europe who have been so impacted by austerity. neither members of parliament in berlin.

this is mobilise is feeling cheer trembling and the carpet being pulled from under her feet she's. one of the missions that is absolutely focused on the next few months next year or so leading the german exton german if she wants to preserve the coalition she's good she just she uses the german electorate of the group to look to that of the gov also business men and women. against which the project don't start but you put in meaning by one of the very. very interesting and you know let's broaden this out to a little bit because on monday we had an italian columnist on the show who writes for a financial paper in italy and we were talking about the l.t.r. oh because it was one of the things that was supposed to alleviate problems for italy and first spain banks were extended cheap can to buy sovereign debt how is

this working in your opinion because we've seen deposits at the e.c. be reach record highs. it goes it's going to go down in history. major of the buckle it has helped to some extent it is true that it is alleviated the crisis when it if you look at especially in spain and to some extent things short. pleasure bills in italy it has given europe a little bit of a breathing space and you all have done because we're talking about have the troops in europe now being effectively minted and dumped by the e.c.b. into the backs but since you saw them but only let me give an example. of something that it's quite widely known. banks like integrated and they got him back integrated it's astonishing what they did they were basically allowed by the city to collect

a very large sum of money with which to purchase it down the in bonds in order to reduce the pressure on the italian that and in the process to benefit from the kind of trade that is some of the difference in the interstate that those banks would be basically for the money that is being lent by the e.c.b. right and they think that they're charging that i am done right now but that was a view of what was that they were supposed to be doing so what is unique to another guy and banks and some portuguese banks and some spain spanish banks something astonishing in the annals of financial history they they created their own bombs they should new private bonds of their own backs which of course nobody wants to buy good these banks are insolvent. so what they did was they went to the government of the second of the recent one thing and they said prime minister we did of these bonds on our behalf mr monti said yes. interesting

and bustling really so that certainly there had bones that were going to buy that guardian state and then they took us bones their own bones but bones bones. both of them of that with a c b and therefore borrowed from basically using those bones that we're going to think by the italians state in order to get their hands on warm ashes meanwhile because of they done i'm good at these and these bombs they die liam public that group. it's an absurd process that you just don't understand how it's any kind of sustainable solution with everything we're talking about so here's the question there really remains for us the honest which is this maybe european leaders maybe bank executives some of these that you're talking about need psychotherapy because it's more than a write down that's needed ok you said that european leaders are in denial and if they're in denial that's

a long way away from acceptance there are about seven stages of grief if i'm correct and dials on one and acceptances all the way down on the other what do you think. this is why i have been campaigning now for a few days. but intensely in the last few days in favor of any media good fold and an end to the b. side and that was asians because this will be the slump that the but. i was about to start. but it could have been having the really big and been effectively silencing what was done now a greek default would be exceeding. beneficial for europe as a whole it will be a wake up call it will be an opportunity for the first. all right leader beyond if you're are you still your audio is breaking up but what i'm hearing you say is that a greek default would be just a slap on the face that europe needs i appreciate you bringing us that analysis

straight from athens greece we always appreciated that was author and professor yanis varoufakis. and still ahead it's been a top story all over the wiki pedia blackout protesting against online piracy laws but how much of a protest is it when you can push a button for business as usual we'll give you our three cents but first a close in market numbers. you just put a picture of me when i was like nine years old i just you know look truth. i confess and i am a total get of friends that i love driving hip hop music and for.

that it was kind of the jester day. i'm very proud of the role without you she has played. my. guitar sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you hear see some other part of it and realize that everything you thought you knew you don't know i'm sorry welcome as a big issue. what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made who can you trust no one who is you know view

with a global missionary see where we had a state controlled capitalism is call. sessions when nobody dares to ask we do our t.v. question more. all right and time now for word of the day when we break down a financial term or concept for our very smart viewers but just perhaps not the financial expert and to the u.s. now today it is proprietary trading why well for one it was the center of a heated debate over regulation at a hearing on capitol hill this morning witness some of the headlines that came out of that regulators defend volcker rule ban on proprietary trade there it is right there and at the same time volcker rule shredded by republicans wrote another

headline if we could bring that up and it pointed out again that the volcker rule asked the government to distinguish between banned proprietary trading and legitimate market making so what does that mean exactly what is proprietary trading let's see the definition is here it is when a firm trades for directing instead of commission dollars essentially the firm has decided to profit from the market rather than from commissions from processing trades so a bank is betting for its own account as opposed to executing trades on behalf of its customers that's really the distinction so why is banning banks that received government backstops from trading their own account part of the volcker rule while it's supposed to reel in risk at some of those too big to fail banks that were you know reasons for the financial crisis now the idea is banks have been using their taxpayer provided safety net of deposit insurance to make riskier bets the ban on proprietary trading would allow banks still to continue short term trades for

market making or for hedging. but it's really that proprietary trading using its own money that is at stake here and it could put banks like goldman sachs and j.p. morgan chase at a competitive disadvantage of according to some which is why banks are complaining about this and the comptroller of currency john walsh at the hearing today said banks without u.s. operations could benefit because foreign jurisdictions have not adopted a similar ban now of course as i said big banks are worried about losing money they are lobbying against this according to the lobbyist three hundred fifty billion dollars for companies and investors is the claim of what they could lose that of the cost now this is obviously by some economists and analysts disputed but nonetheless banks are fighting through lobbyist against the proposal with of course a little help from their friends. close was your jamie dom and this is psychology he talked about and i don't think it's going to every trader is going to need

a shark shark our troops to a lawyer to bring in the psychiatrists and lawyers because anyone watching this show is a little suspicious of anybody who's quoting jamie dimon as the expert on whether this regulation should be effective or not that was chairman of house financial services committee at the hearing today saying that now the volcker rule is part of dog frank regulation and it is supposed to be in place by july twenty first now we've already seen the comment period extended because of some of the lobbying and interest that we've talked about so we'll see where it goes but now you know what is at the center of this debate is proprietary trading.

all right let's end with some loose change we're going to give you are three cents on some of these stories coming out that affect the financial and business world as our producer is here to help me out so is shannon donahoe in the control room holding down the fort we start with some issues for the president of the united states so yesterday president obama met with his jobs council saying you know i'm really proud of the action we've taken on a majority of the council's recommendations on issues ranging from insourcing to clean energy and we've seen this push recently from obama's speeches about insourcing now of course the jobs commission is headed by g.e.'s jeff immelt the chair of g.e. now in the same breath literally yesterday report comes out the wall street journal reports on it today basically saying the national science board has reported the u.s. is rapidly losing high tech jobs as american companies expand r. and d.

labs in china and other places in asia companies such as three am caterpillar and can you guess the other one named in this report to me three. g. ding ding ding ding ding ok so come on is this another big loss for obama this is just ridiculous that people don't see through this how does anybody think that a council on jobs and competitiveness that is outsourcing is going to help obama's insourcing initiative i mean obama's a joke now with a conservative i don't think anyone i mean there are some people that are suckers i think obama seriously are going to be one of those people i said i voted for obama to give money never again a marketable for mitt romney but i certainly will for brought here but come on shannon you don't think that there are people in all over america that when they see this report obama has a jobs council he's working on jobs on insourcing that they don't buy that he's actually doing something for jobs. i think some of them buy it but others are a little more skeptical do you buy it i don't think he's doing anything all right you know ok we all agree one last for obama then we got news that obama will accept

the democratic nomination at the bank of america stadium and charlotte north carolina couldn't they have figured out a better place that doesn't have an optic that like literally says wall street owns washington i mean literally there is washington and wall street together in that shot i'm sure when i heard it was a competition between between bank of america stadium and citi field where the mets play in new york. yeah i make out i make meadow. become a target for exactly this amount of point is the competition who is the bankers competing with each other for who's going to have more influence in obama's ear but the fact that the financial sector overwhelmingly supports and i think they've given more money than mitt romney they've given more money to the ira way yeah i mean the wall street owns the administration and the stadiums and even even even. delving in financial derivatives so i mean even the firms that are supposed to be financial powerhouses though in finance and for the national powerhouses to top it

all off let's just leave you with this story a nonprofit company in iran wants to send obama some gifts they want to send him miniature size drones after asking iran to return u.s. drone remember that crashed there now this area's i guess playing with his toy drones in the bathtub but this is actually the one place he is winning because obama does follow through when it comes to killing people drone attacks is about a civil liberties in the name of the war on terror so i mean this is you know so almost a laugh here like politically right bush certainly like laid out the carpet he did a lot he moved he created the structure the static energy to get the block moving but obama said no problem just go in killing people continue wars. the war in libya he loves war no problem he enjoys it i mean he ran at that war that's the. platform but he's a big a warmonger and you can get i mean the bush years worth of bush said he wanted to

kill people he was going to love freedom and obama wins in the battle with the drones just not against wall street wall street is more powerful than our rights let's switch gears because there was a pizza place that opened in d.c. today and we thought that it was worth seeing what happened because steel pizza said that they were going to give the first fifty customers free food for a year we figured time's a really tough it be interesting to see what kind of a turnout this gets you can see the opening there we sent john called by our photographer out there to check it out he caught up with one lucky lady who is forty eight in line for free pizza and thought much like we a couple account did when we found out about the story watch this. i'm surprised i didn't see you know i thought about the homeless maybe you know actually be more homeless people out here trying to get to be. that's exactly what i thought i thought there was going to be a long long lines of homeless people you know forty six million people are on food stamps a record number in this country not the case that turns out because only people have learned to fend for themselves this point they don't want free food because i

heard i heard most of the people that you've heard most people in these three want to starve for the pizza i've heard that they want to know what they're waistlines know was a good thing this is pure storage crap actually to be fair i did see a business insider article about food in homes could be very hard carbonneau gave way but that's not a point i've heard of the vast overwhelming majority of people in this year laughers intolerance so that might explain why they were there you go really quickly before we go this is a big day for blackouts over so stop online piracy act those so-called laws really quickly we were looking at this morning as up at five am watching a press conference i was checking out google. i was tweeting about how the week of pedia blackout was going on. and what do you know someone tweets me saying there's a way around it you can just had escaped it to not have the blackout so whatever protest is that if you can just get around the blackout it would i think a lot of the the the you got her right here is her cancer go go take it from me so

just you're going to check it out you let us know what you think about a true protest that allows you to get around because that's all we have time for thanks for tuning in and i'm lauren lyster you can follow me on twitter at lauren lester give us feedback at youtube dot com slash capital account and come back tomorrow for another step. closer is that so much to know there's a huge music history lesson on the mark went on featuring a wide range of issues the standoff between iran and western powers has branched into them is the west preparing for a military confrontation. 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. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm sorry welcome to the big picture.

to. defeat not legislation but there won't be much innovation if the so-called sopa bill passed without congress that according to opponents who warn that the government is on the verge of censoring even of breaking the internet so what does the hollywood back to anti-piracy legislation actually do what details up ahead. and as the biggest websites take on congress so is the occupy wall street movement protesters took their fight to capitol hill yesterday the question is was anyone listening but hear from one of mixed.