nothing really stop all right thanks for joining us. we have another star break when we come back you said i read it and then we keep going to europe is back from the brink but doesn't really matter when a zombie banks are still alive and well and we're looking. for you see it certainly. wasn't a top stories now this hour. grips the u.k. ahead of a possible tanker driver strike up with fuel cost escalation in london paris and washington consider releasing all reserves to push down prices. tens of thousands demand justice across spain as workers protest against a cut some labor reforms with anger boiling over in riots in boston the owner of come to tell you before the government is expected to announce more painful austerity measures. and the arab league backed the u.n.

sponsored peace plan saying it must be implemented immediately and completely some members were on the other side in the conflict would trigger a proxy war driven from. missouri main news stories this hour here on our back with more of those in detail in half an hour from now in the meantime it's back to washington d.c. and the a new machine. our guys it's time for you said it i read it take time to respond to my brilliance and engaging your comments on facebook twitter and you tube because we've got some to say listen now first i want to respond to one of our viewers that launched my interview with lawrence krauss on the largest atheist gathering in history really for a reason that he bridges comments on facebook one reason people dislike atheists like

this so much is their offensive use of put downs on religious people and their deeply held beliefs if they won't respect to cool it with the hateful language now i definitely understand where our viewers coming from here well atheists may be cutting and mocking they don't have the one thing that the religious right in this country has enough power i don't think there's any reason to put down those who are religious but i also don't think there's any reason for those in power many of whom are religious to press their beliefs onto the rest of us tolerance should be had on both sides and i think we've seen over the past several months that it's not the least the next i want to share some of our viewer comments on american youth turning away from cars blood sixty six commented on you tube next story america's use shining diamonds jets cruise ships mansions now wait they just can't afford a. tame sea giri comment that i do you do it cost so much to own operate a car that most young people see it as a burden and john bird comments are on you tube it would cost me thirty six hundred dollars a year to park in my own condo that i have to pay for parking wherever i go that's

probably another three thousand a year and parking over sixty six hundred a year just to park a car don't even get me on gas prices so i think of the take where is our earth pensive and expense that many of us right now just can't afford but i do think of the cultural shift that we discussed on last night's show are also part of this equation and now to round out the evening or respond to a viewer with a bevy of very important questions zero sixty five commented do they ever drink up those martinis or do they pour it back or is it just water. well i don't have to plead the fifth on this the mystery of the martini must remain and that there are deny that but for the night and i'll be back with more as usual next week. how many times on this show we've discussed how for profit universities have made a mark for themselves by scamming students particularly veterans keen on earning an education after putting their lives on the line corporate schools like kaplan divine the university of phoenix they've all pushed thirty degrees on veterans by using recruiters on military bases advertising on the armed forces networks and

slick web sites to make us think that they're flexible programs are the way forward now the marketing campaigns couldn't be any further from the truth according to be a and senate education committee data from two thousand and nine to two thousand and eleven eight for profit schools to receive the most g.i. benefits extraordinary high dropout rates just over fifty three percent of students who enrolled in bachelor's programs and just over sixty percent of students who were in associates programs dropped out of the schools now the university of texas on the other hand one of the largest public universities in the country they only have a twenty six percent rate of undergraduate dropouts by comparison and the university of maryland only thirteen percent of undergraduate struck out unsurprisingly student loan defaults are more also more likely have for profit colleges according to the department of education only twelve percent of students attend for profit colleges but the institutions are responsible for forty five percent of federal student loan defaults so for profit schools are failing both predator ins and

civilians and taxpayers are on the hook for a pretty penny two between two thousand and six and two thousand and ten the amount of military education benefits ending up at just twenty for profit colleges has increased from over sixty six million to over five hundred twenty million overall in two thousand and ten seventy cents out of every dollar of revenue it sixty three percent of accredited for profit colleges came from federal aid and the entire industry took in about twenty four billion dollars of taxpayer money in two thousand and eight alone that's according to the government education so if you thought that all the grifting of veterans and underprivileged and says that for profit colleges southern california is coming under fire for taking its scam to the lunatic fringe and surprise surprise the military industrial complex is at the heart of this shake now just take a look at this ad from the international career development college. sometimes eleventh two thousand and one. more than the nation it's called fight

homeland security which can't afford to let the stuff. i see see college you can make a difference with green homeland security i am strong as a reserve pretty sure i understand what it means to be committed to our country to protect the citizens of this great nation homeland security the reason i see d.c. college will prepare you for career. yes considering that marketing masterpiece complete with september eleventh exploitation chip star eric eric and cool sound effects who wouldn't want to attend i think. well according to a thirty million dollars class action lawsuit against the reported by the courthouse news service and school isn't quite so glamorous bride will help the lead plaintiff in a case alleges that i.c.c. is guilty of using unfair business practices false advertising intentional fraud negligence misrepresentation all violating the consumer legal remedies act and

unjust enrichment quite a list and in the real world says that most graduates quote little or no hope of working out the united states of our homeland security despite the fact of the third homeland security features prominently in two of their degrees it's fitting that the lawsuit also alleges the program has no quality control plaintiffs argued that school tricks students into a rolling because it fights postgraduate employment a rate of ninety five percent that's a gin up number that includes part time gig jobs that don't require a degree so in other words this program allegedly amounts to glorified security guard training. it's a lot of this matter in the grand scheme of things and we've discussed that many times and for on this show with a higher education budgets contracting or for profit colleges are increasingly being seen as an alternative and president obama has tried to regulate the industry and so-called gainful employment regulations are due to come out as here and i mean it's we've seen what sort of oversight he has to offer a lot of money challenger mitt romney and the president in january what people like

ryan will have expect that also to look. the rest of education is just going to go is there anything in your. it's interesting to. i happen to think that competition is a great. source of invention and improvement and and i i see the good of for profit institutions of higher learning which you know the president just supported the life i actually like the idea of competition and higher education. yeah if mitt romney is elected president desperate students can expect themselves to be taken for right presumably struck through the roof of a cart after all let's not forget that some of romney's major campaign donors such as full sail university c.e.o. bill have been or are so-called education entrepreneurs the sort of people are the sort who see people like bill him as little more than a source of revenue and as romney's list of number one of those expanding veterans

and underprivileged students looking to climb the national security state hierarchy and expect to end up at schools like i said you can see all these people and of having their rights protected let's not forget that mitt romney thinks that for profit schools are people too my friend. these days european leaders are signaling that the euro zone's crisis has been contained for the time prime minister mario monti said that the euro zone's woes are almost over german chancellor angela merkel said that the crisis is as big and here in the u.s. well thank you ben bernanke he did say that it's too early to declare victory in his usual cautious way of speaking he also pointed out improving signs the economy but as much as we'd like to talk about putting off crisis or look at weekly monthly economic indicators there's none of it matters long as we still have zombie banks well bailed out and propped up financial institutions still hurt us all in the long run and nobody wants to admit it joining me from our studio in new york is the allman neron senior writer bloomberg news and author of zombie banks how broken

banks and debtor nations are crippling the global economy thank you so much for joining us tonight. i know first of all what do you think of these statements right when you hear people like angela merkel or mario monti's say that hey guys we made it crisis averted what are your thoughts. well it's not the first time they're saying that if you remember two thousand and ten after the greek first greek bailout they said the same crisis was averted and ireland and portugal had to be bailed out after those early two thousand and eleven crisis was a good number everything was. rising. we went back to the drawing board and we had to bail out greece a second time as you know so every year around this time crisis seems to be overloaded but it keeps coming back and as you mentioned as my book explains as long as we have a financial system in europe and in the u.s. that is full of zombie banks that are bailed up we cannot fix the problems and

fundamentally without the problem being fixed the crisis will never go away all right so tell us in your words but exactly as the bank is when you write about it in your book you want to introduce the readers to go back to the epic of gilgamesh . yes i do and that's a five thousand year old epic poem it's you know we all love zombies they're the living among us and we're scared of them because they. think they might eat us as well in the epic actually they eat with us which means they eat the same food and you know when there's not enough food and leaving people that don't have enough it's the same with zombie banks they compete with healthy banks they should be dead but they're not because they've been rescued by their governments. then be they share the same resources they take the money away and they don't give it back to

the economy because of that they actually keep blocking the return of economic growth so that's why they're bad they don't need human beings but the money and that's that's just as harmful in an economy that's trying to recover. yeah they're hungry right because part of the problem that we still have is that you have these financial institutions that have a lot of cash and they continue to hoard it they're not exactly giving it out and lending it and then at the same time you have these banks that are just totally gaming the system gypping the taxpayers gypping the federal government if you look at some of the information that's coming out about the way that they're using these loan modification programs and you look at the foreclosure fraud settlement and so . what do you do about zombie banks because at this point there they've been propped up right we're past the original crisis what do you do with a zombie banks now. well what we need to do here in the u.s. and in europe is. to get rid of them to resolve them to take them or and want wind

them down and dodd frank act actually has a resolution authority given to the f.d.i.c and that the government can use. the european countries have similar resolution powers that they gave to their regulators they should use those and take those banks and sell the good parts off them to other banks or other investors and take the bad assets on their books put it away and slowly sell those over years which has been done in sweden in the ninety's norway. countries it's been done in some asian countries in the past so it's doable and it should be done and that way the healthy banks actually will be getting the credit and they will be able to lend to consumers and companies and then the economy the world economy can actually. recover and go up as it should oh you make it sound so easy let's not forget there's

a lot of politics involved here and despite what dr frank that there's not a lot of willpower to actually enforce much of it and a lot of people still think that it didn't go far enough and so just lastly to you you know you mentioned the fact that if we look at the arab spring. or what's going on around the world people don't want to make this connection between monetary policy and what we actually see happening politically so tell us more about that. well of course you know there's so much money being sloshing around around the world not right now feds started printing money in two thousand and eight nine and printed about three trillion dollars and the e.c.b. has picked it up last year and this year and they printed about two trillion dollars and all that money is sloshing around it creates commodity inflation that's why the prices have been going up it creates food inflation in countries like the middle east and when people can't afford to buy their food then it creates rest and

and you know it's not only greece where the policies of the government are are causing unrest all these monetary policy is printing money and creating worldwide inflation is hurting people who are or is livelihood depends on buying cheap food and affordable gasoline we complain when it hits four dollars a gallon but in some countries that actually means people can't take care of sick the hospitals or you know that's why all these events around the world are connected to free money that central banks in the west are spreading around the world now i guess you know the more obvious you make that the people that made the actually notice the star try to look away to change the system thanks so much for joining us tonight. thank you for having me. all right time for our last break of the evening but when we return the brooklyn park slope co-ops voted down a ban on israeli food products last night and it got so heated that even it mayor

bloomberg chimed in and those comments went into night's tools i don't work and are happy our families are going into debt just to educate their children learning in kindergarten and elisa silverstone feeds her child like a bird all about making that. there hasn't been anything good on t.v. . used to get the maximum medical help. before the source material is what helps keep journalism although we. we want to present. something or. something to tell you what is happening on the streets know is the you know the altitude poitou for a very wild place and that's without however i totally disagree i don't even think

the parts you've got. we're still waiting for the actual resolution to help. british scientists. let. the market. find out what's really happening to the global economy with this month's cause or a no holds barred look at the global financial headlines kaiser reports. to get to go. our guys it's time for tonight's

tool time award and tonight once again go to new york city mayor michael bloomberg a man to really seems like bloomberg is trying to give santorum a run for his money and the battle for told times the privacy right but then i bloomberg has taken the time away from his own war on food to address someone else's parts local ops weren't going to be exact is he last night historic co-op which has been around and politically active since the seventy's they voted on whether or not to ban israeli food products from the co-op and protests of israel's treatment of palestinians and that's the minutes are that shoe thousand people attended the meeting last night and it took two hours for all of them to get inside the gym where this meeting was held so this video of the line well basically is so long you could play this entire segment and still not reach the end of it because of the vote on the issue became a national story cause so much controversy of the debate the vote also to become obese if it's a new york magazine writer chadwick matlin who attended this meeting mockingly wrote it has become about what park slope new brooklyn new york city you know

america thought about israeli politics palestinian politics itself well turns out because voted against a boycotting one thousand and five votes to six hundred fifty three zero per usual this is just couldn't be a discussion about how a certain organization in new york felt about the israeli palestinian conflict because as we've mentioned multiple times on the show as an american if you take any stance on israel that isn't explicit in unwavering support well you might as well be a terrorist on a plane with a box cutter and that's exactly where michael bloomberg enters the story seeing as this is all playing out in new york city bloomberg just had to weigh in on the matter both take a look at his take on the co-op vote. it's nothing to do with the food the issue is there are people who want israel to be trying to porridge and everybody to be massacred and america is not going to let that happen. wow so you got concerns over the treatment of palestinians who let's not forget are people too

then automatically you want all israelis to be massacred i mean really i already do they should consider is protesting israel in a peaceful way by simply not marshmallows and firmly they're calling for the now think of millions of people who want it who wouldn't jump to that conclusion right now i can't really get on board because of those ban either because let's be honest if you were to really be comprehensive that banning some countries where you think there are human rights violations whatever because it is your camp and you have been campaigning at the moment your diet would get pretty restricted pretty fast so boycotts of this nature they can get really out of control reaching a point of always being comedy and i think that most of you remember when france in back to us in the war in iraq and freedom fries were introduced to the congressional cafeteria. and always on the side order of freedom fries you can see the liberty cut your arteries but not anymore i guess because a few weeks ago the cafeteria at the u.s.

capitol went back to calling them french fries i can't believe they didn't last right but the reality is if people want to discuss a boycott of something they should be able to discuss it vote on it without michael bloomberg calling them de facto mass murderers so for making an absurd jump from a vote in a local co-op to the mass murder of all israelis talk about fear mongering i call bloomberg is tonight's told time where. i got the time for happy hour frankly this evening archie producer jenny churchill and derek thompson senior editor at the atlantic. i got. all right let's take a look i received a lot of people wearing hoodies. and solidarity with trayvon martin lately and so representative bobby rush trying to do this on the house floor to look.

there's no room. this is. going to. be. so basically what happened is he had to be escorted off the house floor because he broke the rules which is that you can't wear a hat on the floor this is ridiculous i mean it is it's just too bad because this is a really serious issue the trayvon martin issue serious and times like this just make us talk about this stuff and i look at it looked so you think that him wearing a hoodie is ridiculous you know the fact we kicked him out i mean i know he broke a law in order to get people to talk about the fact that he's breaking the law to a certain extent broke the law if you really. are i don't really like to make a political thing but i just make a political statement is going to be true i mean i've got of course i'm sensitive to his end goal here i just feel like it's going about in a very distracting from the major issue i actually agree with there and i think

that this whole where the hoodie thing has gotten completely out of control and i just i think that it's important that we keep in mind here that there is a child who is dead and that his family is seeking just better than me and i'm just yes very sure but i mean also some stupid rules like he were had on the house floor because he was there is some of the product baby on the house floor when he was you know and they were debating i'm sure with the care that's there to take her there actually to get a baby camera hat. i don't need the rules so you know everybody peter siddle them well maybe you should tell the city you were implying that you held the city for a baby and i thought he possibly i don't know that might have worked well all right . next. you know schools can get very expensive these days obviously student loan debt past a trillion dollars is no bigger than credit card debt by student loans are also on the rise for for for other schools to. dozens of parents are probably

a little groggy today after spending the night camped out in wellington all to secure their kids a spot in preschool some waited in line at st peter's united methodist church for nearly twenty four hours. all right so let me backtrack a little bit the point is that it's getting so crazy that you have parents getting in line trying to get their kids into preschools and kindergartens and now with student loans or even on the rise. you know on the one hand i agree with you that i think it's crazy it least it seems crazy it is unique and unusual but at the same time we stand in line for lots of things that are stupid we stand in line for smartphones we stand in line for i pad you know you should actually no i mean that's exactly what education is actually extremely important every piece of evidence that exists so that education from the k. to twelve level and after improves lifetime earnings so why not try to get your perspective because you know the risk and i are going to you but i don't think that the education that you pay for is always the best education and i think that kids

that are in public schools can you just as well and better than people in private schools if their parents are involved and engaged and if they're not you know really putting their kids to do things and i don't know you're all about. that is shanley's are making a decision and they're saying you know given what we know about the public schools in our area versus the private schools we think that it's so important our kid gets into this private school that we're willing to stand in line just as we would for an i phone i actually don't think that's so crazy i think which which more crazy actually is the fact that we haven't found ways to smartly control education costs and that's what's behind all the student loan debt that's what's behind the college student loan debt and increasingly in somewhat bizarrely categorically that i think ok good monckton college and student loan debt for people sending their kids to private schools in elementary school and high school is completely different really yeah i do i think i think they're very close i think it's along a spectrum it's investing in the human capital of your child or investing in your own human capital and from what we know in a modern globalized technologically driven economy human capital is all there is so

i agree with you i think. so you need to do a lot of it at last other countries are economies i guess you could say that the entire country right tries to invest in this so that you don't have to do that it was really you know we didn't have to stand in line because we all just had great schools to go to depend on where you live and the quality of the education you receive depend on your socioeconomic status it was pretty what a great story would be if people in nigeria egypt in sri lanka were standing in line for their kids to get into the schools we would celebrate this is underdeveloped countries realize that education is the ticket i cannot advance. all right i think we're going to have to leave it. very passionate about this. thanks so much for joining me tonight that they're going to have so thanks for tuning in admission to come back tomorrow sarah jaffe from alter net going to be on to talk about the life of her workers after the destruction of collective bargaining rights in the meantime don't forget to become a fan of me alone a show on facebook and follow us on twitter if you missed any of tonight's show or any other night's naturally you tube dot com slash the a lot of show and coming up next.

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