well i'm sorry washington d.c. and here's what's coming up tonight on the big picture remember when our lawmakers promised they would end too big to fail well they didn't and now too big to fail is even bigger shocking numbers are going to last for its wealth inequality coming up in just a moment also the more we learn about paul ryan's budget the worse it gets regardless it's headed to the floor of the house of representatives for a vote in enough to distant future so the republicans really vote for more corporate welfare for the top one percent while taking away health care from the

ninety nine percent and president obama caves into political pressure and gives part of the x.l. keystone pride klein project a green flag why do you do this is one of the political consequences of. the need to know this too big to fail is bigger than ever the federal reserve bank of dallas is out with its annual report on america's banking industry in the numbers are shocking currently only five banks control more than half of all the industry's assets that's right the top five banks in america owns fifty two percent of all the wealth in the financial sector to put that in perspective in one nine hundred seventy the top five banks control only seventeen percent of the industry's assets and i believe that the total wealth phoned by the top ten banks in the nation now equals half of america's total g.d.p. more than seven trillion. dollars of wealth in the hands of the top five wall

street giants he's startling numbers have prompted the president the dallas fed richard fisher to call for breaking up the big banks warning that they've become so large that not only threaten the federal reserve's ability to conduct monetary policy but also his words erode faith in american capitalism fisher also called for tough new financial reforms to strengthen the dog frank wall street reform law so what are the economic consequences of this concentration of wealth on wall street and how do we take the dallas fed presidents fischer's advice and break up the big banks here to offer his take on this as well as target target of a former investment banker goldman sachs and currently a senior fellow at demos walls welcome did i mangle your last name who did great thanks for having me it's great to be thanks for joining us how exactly is the too big to fail became even bigger well the concentration. one of things that happened was there in the financial crisis the concentration got even more severe

as certain banks just evaporated the other thing that's gone on is to sort of recognize that this isn't just something that's happened recently this is been something that's been going on for a period of thirty to forty years and so there's a certain inertia to it that has it's actually not as surprising as one might think if you really just sort of focused on what's been going on so we can we can track this back to one thousand eighty two when ronald reagan ordered the justice department basically stopped in force in the sherman antitrust act absolutely wave of merger and acquisition mania in the country absolutely and it not only is it too big to fail issue which of course it is. it also goes beyond too big to fail it goes to. because other things have been happening over that thirty forty year period of course asset concentration we talked about that but in a percentage of the g.d.p. but there are things that happen is that the profitability of the banks as compared

to the profitability of the entire corporate sector has grown and thirty three percent of all profitability is is financial services profitability which makes nothing. they manufacture nothing that's that's entirely ok so they made by they made bonuses which have also been going up right but by adam smith's definition they're not creating wealth i think that's a huge problem yes i think what it was because the other thing that's happened and there's been some good academic work on this recently is that the fundamental role of the financial system is to take money from savings and pension funds and put it into productive uses factories bridges airports that sort of thing. and while technology is boom and and you would think that that process would have gotten much more efficient in fact what they're thought what we're finding now is that's going the other direction getting money from people that have it to the to the productive sources actually as. gotten less efficient more costly so what that really means is

exactly what you're saying is that the financial services industry is actually siphoned off right from that flow think of as a pipeline from one place to other people tapping into it and pulling right working and you know while the creation of actual wealth is not off shored because of the changes in our trade policies since since the reagan era and so you know manufacturing the creation of real wealth is gone and financialization the moving around of money so that it can be skimmed off to the top as is running our country and they say how do we what we do about this and specifically what does dodd frank do about this that the president of the dallas fed was calling for and does a few things and and i does some things that are quite important and all of these things are being resisted vigorously by the big banks not a shock here. one of the major fact features of the dodd frank act is the vote so-called vocal rule which effectively prohibits banks from from doing proprietary

trading so not only is that cut down and also hedge fund investing but not always that cut down the risk that it reduces the business lines that the banks are or are actually engaging it and will cut down on a lot of the assets and profitability. that's got to be a reason actually being enforced or if it's not being enforced that was the rule was proposed. and. the over and over again dodd frank rules get proposed and then that's where this guerrilla war starts where the banks start trying to lay is that change these laws have to be legislated into existence as a slave there this is the executive branch that this is just. the volcker rule in particular is a number of different agencies the fed if the i c c c c c c f.t.c. every letter of all of those except the fed if the president said do it it would

get credit for it so why isn't it getting it's not getting done because. because there are a lot of pressures that are that are effectively brought to bear primarily via congress on these agencies for instance to see if he sees budget. their their their jurisdiction. triple quadruple. their creditors try to and they take care of derivatives right which is this three hundred just really want to start out exactly so you think maybe people that you did invest a couple bucks in in fact what's happened is congress has has squeezed them hard on their budget so there's this dynamic that goes on and it continues to go on which is a fight between the regulators in congress how do we get the american people to be the wind behind the back of the president and others who would like to resolve this problem when the even just you know. alphabet soup of acronyms.

how do you reduce this to a bumper stickers of something can get done because it seems like that's the only way to get anything done you know in terms of rousing public opinion well i got a thought about that if you if you think about the pipeline and tapping into it and drawing the wealth off into the financial services industry into bonuses and the houses in the hamptons and how unproductive that is that it's not that hard to connect that up to issues like why is it so hard to. to get jobs back in the place where they should be after recessions why or why is it a shock that income disparity has grown i think it's important to sort of draw the connection but as this sort of what elizabeth warren has been saying right now the economy isn't coming back because the banks are holding it back that's right and government can play a role in making them behave like they used to write are absolutely and that i have and i think that's an important the important thing which is to start articulating why is it that in the deregulated world the effect is all these bad things the

banks would have you believe that the chamber of commerce we have you believe the regulator take regulation off and things will be completely efficient and business will work wonderfully well in fact it didn't happen that way. brought us this disaster yes well this we're out of time thank you so much for dr appreciate your great media thank you in his eight hundred eighty eight state of the union address then president grover cleveland told the nation that was then under the control the robber barons corporations should be carefully restrained creatures of the law the servants of the people are fast becoming the people's masters here we are again today with all of us slaves to wall street let's look at the bigger picture here though how do you know the question how did these banks get so big it really began as as walsh's point out with ronald reagan in one thousand nine hundred two stopping the justice department from the force of the sherman turn and i trust act which led to a frenzy of mergers and acquisitions the big getting bigger the monarch at least

for me in every major industry this isn't just banking the m.n.a. an l.b.o. mania of the early eighties people like michael milken and karl i count the prover two hundred years in america every town and every shopping mall had its own unique character stores and manufacturing companies were family owned and passed down for generations but today she got on an airplane and jumped out of fifty thousand feet and landed in anyway and in part of america you have no idea where you were you just see this exact same handful of fast food joints of the same handful retail stores and the same banks that you see in every mall in every downtown across america. so today a handful of banks control most of america's wealth and wherever you go in america you see the same banks because no president since reagan has undone reaganomics the last presidents to enforce the sherman act were jerry ford and jimmy carter who broke up a t.n.t. which since reagan has reassembled itself so now just like

a handful of big banks we only have a handful of cell phone companies and landline phone companies the same way we have a handful of big ad companies that control most of our food supply the same way we have a handful of big media companies that control more than ninety percent of everything you see hear or read on t.v. the internet radio and over fourteen thousand newspapers and magazines fewer than a dozen companies the same way a handful of oil companies control the oil and gas market the same way a handful of automakers make all our cars the same way a handful of drug companies make most of our drugs the same way and full of retail you've started to notice that i am here and full of bodies own most of america's retail sales of pharmaceuticals food toys clothing you name it there is a concentration the same way a handful of entertainment companies own most of our movies the supreme court has given them control over our elections after starting with reagan with

a series of presidents so allowed them to get bigger and bigger and bigger and bigger it becoming like you know the giant squid as it's called what it really is is monopoly that game was invented back in the one nine hundred teens or nine hundred twenty s. to tell americans to warn americans about the dangers of monopoly which brought us down in one thousand nine hundred ninety. and you know we need to understand this again that monopoly like this corporatocracy this was. really triumphantly i mean having two three four five companies basically control an entire industry in the case of the oil industry everything from from pumping you know out of the ground all the way to pumping into your car is destructive to competition it's alternately destructive to capitalism until that lock on this is broken things aren't going to get any better coming up after the break paul ryan released his corporate friendly budget yesterday liar mr ryan and his colleagues so out of touch with the american people why are they proposing a budget that would do more damage already fragile economy.

if we just put a picture of the need for those like nine years old so she told the truth. i think i am going to get a sense that i was driving that bus and. it was kind of the gesture. i'm very proud of the will the belgian see its place.

you know sometimes you see a story and it seems so silly you think you understand it and then you glimpse something else you hear see some other part of it and realized everything you thought you knew you don't know i'm sorry for the big picture.

the more multi-millionaire congressman paul ryan's budget proposal is scrutinized the more americans realize how screwed they are if it's ever been acted on wednesday night ryan's budget narrowly passed out of his committee by just one vote that means the entire republican controlled house of a chance to vote on ryan's a vision for america at least forty eight million more americans without health care and make the top one percent three trillion dollars richer and now there's another little gem in ryan's plan coming to light the sell off of america's pot with lands the ryan budget proposes selling off more than three million acres of

public lands the longer we the people in states like arizona colorado new mexico several others and the land would be sold to the highest corporate or billionaire better at a. fraction of its real value at the same time ryan's budget preserves forty billion dollars in taxpayer subsidies for trans national oil corporations over the next decade and industry the just last year rated one hundred thirty seven billion dollars in profits this is corporate welfare at its most extreme and it will instead of a corporatocracy republican party is dragging us all toward so buyer paul ryan republicans so out of touch with the american people and why are they proposing a budget that would do incredible damage to our economy here offer to take on this is rebecca ras media outreach director for americans for limited government and a columnist at net right daily dot com rebecca welcome thank you for having me glad to have you with us here. first of all do you disagree with my premise that this is a destructive budget actually we tend to not for pork his budget just because we

don't think it goes far enough on from issues yanks that they don't even think he throws you know disabled kids off the bus he throws old people off the bus he throws the middle class off the bus he has three trillion dollars to rich people what more would you want from my perspective on what i've done more study on and the welfare part of last year which is now we need to get the poor people of achievement definitely not i firmly believe that there needs to be a safety net but it should be looked at as there are some of the welfare programs in the u.s. today and no one has ever left to how they interact with each other very much if you're over pollution allowance. yeah the different their means welfare so they're the kind that phase off for like earning i'm not i'm trying to add or corporate welfare yes well actually it does it does close a lot of those loopholes for my benefit so about nothing for the well for. so why is john rice why do we have you know we have these welfare great society welfare

programs is a i'm assuming what you're talking about johnson called poverty in the united states in five years and in cutting poverty in half in the united states he created a launching pad for african-american middle class that has become vibrant in those sixty years since that fifty years since then and and and also in a lot of poor white people and particularly rural areas. bill clinton took a meat axe to the bill clinton and newt gingrich and converted it to tamp for your welfare to work program which seemed like a great idea when we have this wonderful bubble economy but now that we're in a recession a lot of these people are just. they have so little that they can't afford food or medicine. why would you want to squeeze them but it's interesting you bring that up because i personally do not think these people want to have to live off the government i think they want to be on the net the basics are of course what happens is these welfare programs there's no interaction with me don't measure how they

interact there's been no study done so what happens is if someone is on say example i use a single mom living in virginia with two children and say she makes one thousand dollars a year if she somehow gets a raise you know it's fast enough to be able to raise she might all of a sudden at one dollar more lose her health. care and lose her child support you know so that was the reason she has the government welfare programs right and the food stamps but she made a chased off does not correspond with how the income rises so it actually hurts these people more and it hits them on it so what i would like to see instead. well you wasted all these programs to see how they interact in that way we can invest taxpayer money in the ones we know work you know i agree with you paul the ones that do not agree with you back in the sixty's at the at the minimum wage or the poverty level a person could actually more or less survive now they can't because the wages have

been flat for thirty years thirty years reaganomics flat wages and all in all this money is going to top one percent two hundred seventy three percent increase in wealth but not the average person so why don't we just raise the minimum wage to that interest because then that relationship would be they would actually be stepping in to if they got that one dollar raise the person would be stepping into a wage where it didn't matter that it was their fruits thoughts brain other study that i looked into was and it's basically a was from zero to forty thousand dollars if you include money you make in the government. so it's kind of a loss to their florida so again a new gas kind of new way to get us so if you look at that hourly rate i think it's a little bit less than twenty dollars an hour and that would be enough a far cry from minimum wage and honestly when make spending ways on marketing dollars and services yeah i don't want to make sense here i mean if you raise about mutts you know mcdonald's will. start charging eight ten dollars an hour no you

know they are going to trade his ice cream will be fit for an economy and i. hope it will have to continue this conversation as it will becky thanks so much for being with us tonight. speaking of giveaways to big oil president obama was in oklahoma today where he reversed his position on the keystone x.l. pipeline and is fast tracking approval of the southern portion of that pipeline to take canadian tar sands from canada down the shipping lanes and exits i mean let me just show you this the current pipeline runs from canada to cushing oklahoma and as you can see right here and the full proposed pipeline not supported by the president would have crossed the border the u.s. border in montana going down to cushing in the gulf coast and part of the president announced today that he will support runs from cushing oklahoma down the gulf coast so why did the president reverse course here and give in to most of the demands of big oil and what are the political consequences of such

a decision here to offer his take on this is karl frisch syndicated columnist and parker who thought strategies karl welcome back thanks for every background great to have you here so what happens today. president gave a speech you know i wasn't surprised as many people were i mean when the president came out and said that he wasn't going to allow the full pipeline to be though he did say that he supported the southern part of the pipeline to be built that being said i think is a lot of different dynamics here i think what it shows because this is really a compromise with the right what it shows is that the right is more interested in investing in a canadian company then it is investing in our own roads our own bridges our own schools and crumbling infrastructure instead of talking about moving people fast in the country great high speed rail we're talking about moving oil fast canadian oil great down to the gulf of mexico we can be exported to insure and i mean we have to be cleared the attacks from the president from the right when it comes to oil and

energy production. and alternative energy and fuels are completely baseless there's been more rigs approved in our coastal areas than any president i think the last eight years there's been more drilling than we've had or more oil being produced out of our own resources than ever in the past sixteen in real numbers and if the right wing talking point was true that more drilling would lower the price of gas we would have seen it by now in fact there's there are study i think the a.p. had a story out recently that showed that over a thirty six year period there is no correlation between the oil that we're producing as a country and the cost of gasoline there is drill baby drill is a nonsense copper so it's shrill davy shrill is what it is private from right wingers who play to an american populace that is worried about putting food on the table not paying attention to the finer point isn't it isn't what we saw today the president taking away a proper sticker from the right wing as he goes into the election well the mistake

would be saying that that's enough for them to take away the bumper sticker. give them everything they want and they'd and they'd still be yelling for so so why give them anything if if if that's the case war is are is what we're seeing right now the consequence of citizens united that you had jacked or are. we american petroleum institute president famously came out and said when president first just before he announced he said there's going to be a political price if he says no keystone x.l. shirt i mean this if anything what this is going to do is it's going to divert oil it's being refined in the midwest down to the actual sell gas which will raise the price exactly so it could it could it be that basically he's he's just looking at this time on the oil companies will take me out with their. super pacs well the big threat of citizens united is not necessarily people spending money right it's the threat of people spending money. a smart wealthy man will not write

a check for. five hundred million dollars to make something political happen well threaten it so they don't have to do it. you know and there are there's every reason to believe based on the numbers that we're seeing candidates fund raising that this president will be well outspent by corporate interests seven out of ten republican dollars raised in this election cycle have been corporate moneys from citizens united this president has a lot to be worried about i will say that the notion that the president has much to do with the price of gas you want to know where this president has made strides in fighting the impact of gas the price of gas is the one with the auto industry to make gas cars more fuel efficient that saves you know people a significant amount of money based on the fueling of their car and it also has a good impact in terms of climate change so those are things that he should be trumpeting more i think the biggest problem is the mystery has ever had is that it doesn't take victory laps when he saved there was no victory lap until months later

when health care passed there was no victory lap you know when he has these it comes to lie on the right he said you should get out of that and third drilling for oil personally but an aircraft carrier in lake michigan here to talk about what he's like on i mean people need to know what the president's record is so that politicians like newt gingrich can't go out there and say i have a magic wand and i can make gas to fifty a gallon overnight it's not true don't think that as we actually get into the campaign season you're going to start seeing that kind of pushback that if he was to be doing that loudly and a lot of it right now might he might burn through political capitalism or create the impression of him as just a just a politician and not as the president and so much of the political option right now is still for some reason going on in the republican primary my favorite reality show and i think that he has every reason to believe that it's really going to heat up when that is settled when that's settled we don't know very spiritual that being said i think that these are. looking candidates are opening themselves wide on this

issue you know if they want to bomb iran then they'd better be looking at you know the increase of gas prices oh i think that's why they want to bomb iran well is because it'll throw the united states in only into a great depression sure you know just before november. you want to affect gas prices that's one way you can do it really quick there you go thanks a lot for being with us the analysis the keystone pipeline project estimates that it will create only four thousand temporary jobs and will actually raise gas prices much money twenty cents and that's an analysis from the company trans canada that's building the pipeline unfortunately in today's political climate the slanted media outlets and super pac negative ads the president can't tell the american people what's really going on and that plastic a big well this is partly the president's fault but mostly an indictment of our political system that's been so badly broken our supreme court. after the break you all believe the republicans in tennessee are trying to do with the public school system so all about the latest battle in the right wing war on science and just

a moment. for. five. you know sometimes you see a story saying so you think you understand it and then something else here sees some other part of it and realize that everything is all. part of the big picture.

mr.