often isolated from the rest of the world. and so you're starting from such a low base there's tremendous opportunity there for everything from tourism they get about two hundred thousand. visits a year versus say thailand it's eight or nine million so there's plenty of opportunity for tourism there is they need hotels they need office space it's just they have tremendous amount of natural resources oil and gas in particular so there's a lot of opportunity there as they just sort of catch up to regional peers ok and i think it's interesting though like why is it fifteen hundred dollars for a studio and one of the cities that you visit that's what i paid for a studio apartment in one of the nicest areas of san francisco that was beautiful five years ago yes this is the real estate market is already just very quickly especially in yangon so apartments are very expensive for just a classy space you get outside the big gun prices and maybe haven't adjusted as much but that's the reason there's just no supply and you have to think about this

is a market where there's been no divot virtually no development for fifty years so again a lot of people make the comparison with thailand because this is a market that maybe sixty seventy eighty years ago is comparable to thailand now yes yeah there's a huge gap between between the two so the investment idea is if they just move a little bit towards thailand you get huge expansions in everything i mean there's you know the thailand uses forty three times as much fertilizers mean more and there's all kinds of statistics like this you could look at per capita incomes you could look at you know office space i mean there's one building in thailand that has more office space than the whole city of yangon. apartments in the same way i think there are there are very many apartments there are very many hotels so this this will happen as the market just but we're not there yet ok so where are we in the scale of. development very very very nice very very early very early just i mean this is all happened very recently. they've started to open up so and just for

people that might not know this story of myanmar i mean most people probably think of the nobel prize winning opposition leader right and was under house arrest for years but it was under military rule really for better than fifty years during one nine hundred sixty two until just very recently so but if you look historically myanmar if you go back to say as late as one thousand nine hundred one for example they were the fourteenth largest oil producer in the world most people or it was find the largest oil never to share in the world that is shocking and that actually plays into something you're writing about what you said this is a case in point as to why we are not on at peak oil and i want you to elaborate on that because sometimes the view that we come from is how are we not at peak oil when you have all of these wars and oil rich countries and you have oil companies digging deeper and deeper and deeper to get oil so so tell us what myanmar teaches us about well i mean more teaches you there are still vast untapped areas where. we will get future oil supplies to the moon mars is one to add to the long list of offshore exploration brazil we've had places open a box of africa. you know u.s.

oil production is rising now and so myanmar is going to be a big supplier of oil now what's interesting about myanmar also is the geo political consideration because what are there and especially because of the oil and natural gas and particularly already even though i mean more supplies thailand with twenty percent of its natural gas but they look at china for example they get most of the oil comes through the strait of malacca and the problem with that is that the u.s. seventh fleet patrols and so he's been sort of a strategic contention with the chinese so a way to get around that is to build pipelines to mean more which they're doing to go right into china province. so this is this is something that you can look at in terms of the china growth story because this is access to you know the chinese are putting a lot of money in their own chinese never had any sanctions on myanmar so they've continued to invest there the largest investor in the country now thailand's number two korean. they're big down there and this is what they're doing they're building

the building ports. to building pipelines to building highways and so all this i think this is exciting stuff in the oil companies come in they're going to have they're going to bring billions of dollars of investment they're going to have lots of workers and they're going the housing and there is just going be a lot of money flowing around and since you're starting at such a low base in miramar you've got a lot of have you figured out any investment opportunities for the average joe retail investor they're earning a little earlier what do you tell retail investors as well i'm working on some things now but it's not an easy place to invest as a retail investor i'm finding there's the me more stock exchange is very limited and there's a there's a company in singapore called which is already very expensive it is and has already made a big adjustment so there's some private equity stuff that i think will be more interesting funds that are opening up they will invest in businesses so that's what i'll be writing about soon but it's not and it's not an easy place not just a ticker symbol i could send you to buy one that's perfect that's not what the show

is about at all this is much more about talking about some of these big picture issues that that end of the story like oil that you're talking about and another one that i found interesting was what this says about currencies because here's a picture of a gold leaf shop where they're where they're making boldly that we have will bring it up in a moment so that's you know kind of interesting anecdotal i know i know they have a history of of gold back in the day however now their currency is the chat i hope i pronounced that right however when you were there you were needing to get your hands on as many very new clean us dollars to do commerce and so why is that and what does that say how does play into kind of pimco the cleanest dirty shirt yeah this well and mean more they don't have credit cards or your credit cards are practically useless so they go buy everything with cash and we travel throughout the country but hotel airfare in the country all by cash and they only take very.

clean crisp dollars so. dollars rejected because they had small tears or because they were older because the c.b. in the serial serial number. so we're constantly sort of shuffling dollars around but they'll take dollars they take dollars fine and chat. also take a chat you know the country of course and the exchange rate is something like eight hundred to one. hundred. dollars ok so how this plays then i mean i think the way the interesting thing about me and more to the way they. sort of put their savings into place is mainly they don't use the banks at all i think two or three percent of the population for example uses banks but they buy property they buy gold those are the things that you see i mean is it big enough that there would be any impact on gold prices or no i mean you know i don't think that anyway but maybe down the road they could be big buyers ok interesting and i want to bring up a picture to. the apartments that i didn't get to earlier because you can see kind

of what looks like you know some more rundown apartments but then it looks like those white buildings that's quite a bit of money has been put into writing those is that kind of an example of some of the development that's going on there yes you know when you that's downtown yangon and again there's. just walking around you see a lot of very old colonial buildings buildings that have been untouched for fifty years so. it's just it's a very it's almost like i call the bottom of the east because it's sort of like a frozen in time kind of place but that shows you the kind of opportunity that meant of work to do you still have to do it renovating properties and getting them up to western standards as tourists come in and so do you think there will be opportunities for back to the retail investor will there be opportunities for those folks there is this going to be a case of the big multinationals that get all of the opportunities to go in and pillage this poor country and that's when i think it kind of depends on the sector i think. the oil and gas is going to be it's going to be

a game for the mean here so i don't know that you'll have much chance there but. now that i am finally man is innocent and that because you have sort of in the spotlight that's where all the attention is going to be i think more interesting is the look at some of the small businesses and things so. like i say will mostly be the private side so we'll see funds where you know you'll have the opportunity to do that ok and quickly one thing i wanted to circle back on to before we go to break you mentioned sanctions and i think it's interesting you noticed some impact of kind of a case study on what happens with western sanctions in some places what was it that you found to be the impact looking at a country like me and my well i mean more you know because they don't have because india china and thailand which are all around them did not have those sanctions did not have as big an impact as you would think i mean one of the things that struck me about myanmar was that it was not as poor as you would expect or it was and it wasn't like i've traveled to india and there's desperate poverty there you're

you know you're you have beggars come up to you on the street and it wasn't the case in yangon you see prosperous shops i mean they're poor but it's not it's a different kind of poverty so i would say at least on the surface they. are better off than the story that you hear at least with. official g.d.p. statistics and things like that ok and you attribute that to the fact that they've still had a normal economic relationship which many of their neighbors actually telling me here in china especially in those two special yeah it's interesting things to know we will have much more after the break we're switch gears come back to the us talk about some interesting insights here will have chris mayer author and managing editor for capital in crisis in just a minute still ahead bernie he defends his policies at the latest i.m.f. forum in tokyo we'll tell you why developing economies may not approve of the fed chairman's recent action in tonight's loose change but first your closing market numbers.

the for. the commission free accreditation free in-store charge is free

to make amends free. free studio time free. dumb old free blogs just plug in video for your media projects and free media and dog the r t v dot com. world. science technology innovation all the list of elements from around russia we've got the future covered. eaves. it's easy to. see.

what will change when america picks its president amid muslim rage walking the iran tightrope pushing china and russia as occupy anger spreads can two parties still dictate will their challenge to a selection come close guard every monday on r t beginning of solar twenty second. the. motion would be soon which brightened if you knew no bounds to move from phones to impressions. nice for instance on t.v. dot com. it was the strangest attempt of a military takeover of. the us president trying to overthrow

a foreign country's government but his strategic games must. under merica recognized its defeat. the. question is if cuba managed to cope with its victory all don't talk all politics for god may i leave you think you are you go but the rajab either live via the cuban missile crisis games and reality on our team. welcome back so let's switch gears let's come back to the us james gorman is the c.e.o. of morgan stanley and there's been some press recently about his efforts to change the shape of the firm and bring leverage down low risk we're not very optimistic about too big to fail bank reform and way more interesting to us and compelling is a bank that our guest has been writing about is kind of

a case study in conservative nyla banking it stayed that way during the boom despite temptation and is one of the best capitalized banks in the us today so we're genuinely interested not in hearing about morgan stanley but hearing about the third federal savings and loan as a case study of sorts why and how this bank resisted the temptations of financial innovation and lived to tell about it so chris mayer author and managing editor of capital in crisis tell us how did they survive and thrive through this boom with with resisting the temptation of financial in innovation well some of that is they they learned say no so they were they didn't get involved in the a lot of the crazy mortgage lending that went on and so it cost them market share and in the short term but long term course they were able to get through the financial crisis without as much trouble but it is an interesting case study and like you say there's there are other banks like this there are there are dozens and i recommend least a handful of them to my readers but basically these are smaller banks they've got

lots of capital and they stuck to this to the old plain vanilla business of just taking deposits and making the simple mortgage loans great right and i want to get more into that but first i want to look at this case study for one more moment because you mentioned that they lost significant market share ok they had a market share of thirty percent in northeastern ohio that declined to eleven percent by i think two thousand and ten or eleven so they lost significant market share this is a publicly traded company so this is a c.e.o. that has to answer to shareholders in my experience and you know there's a lot of pressure quarterly to deliver so how does a c.e.o. whether that. and be able to stick to his well there's really one very important thing and that is that the management team has a significant stake in the business they can get they can do do that kind of thing so one of the things i found is that when you have these financial institutions where the executives are only with options and you don't have a lot of personally invested. online they behave very differently than

a group that maybe has twenty or thirty percent of the stock and so that group is much more likely to be careful with capital and less and take less gambles so so more of this banks have their executives more of their compensation you know that they and their investment banking long history is the family runs to the current c.e.o. as parents started the great depression so you know that's see examples of the kind of bank i think you will look look for which is the ones that didn't take part in that whole boom and then have these more conservative principles and where the people running them have a stake in the business so that is very interesting because we often talk about how to make bankers accountable and no amount of regulation arguably is going to do that until there are some people some would argue and i tend to agree until there is personal responsibility you're worried about losing your capital that's the best

way you want to have somebody behaving in a prudent manner you make them have their skin in the game yeah so then looking because i mean the last several years we've just seen a huge uptick in bank failures you know going from just a handful two thousand to two thousand and seven that we saw one hundred fifty a year you know now it's down less than that i think it's you know forty something year to date but if there is to be an expansion of the kind of model you're talking about of these kind of small vanilla banks that they stick to that even when they're under pressure with their stock price or shareholders. would there need to be a change and regulation or in the business model to make that more by. do you think it's a complicated question i don't know how you reinvent the banking industry so that they don't make bad loans i think that's part of the business and it's going to happen but you can i think the best way to make banks safe is that is to make them have more capital. and so this particular bank as a numerous amount of capital compared to what's required any one percent right and

you know there is a six percent to six wired yeah exactly so there are banks like that where you have significant insider ownership and they have a lot of capital and two things are somewhat related but if i were to reform banking somehow that would be the first way that i would do it is to require the banks to have a lot more capital not be able to leverage up so much and that makes them able to withstand the inevitable waves of bad loans and they're going to me then riddle me this why is it that the big banks that passed bernanke you stress test too much criticism from naysayers that said hey these banks have plenty of risk to the mortgage market bad mortgages litigation and yet they got the green light to raise their dividends but little third federal savings and loan that has done a good job and has been you know very diligent in managing themselves they can't pay a dividend like that yeah they're operating and know you right now. a member memorandum of understanding and that's kind of a complicated technical thing i don't want to get too much into baghdad no that's

fine but you know there would be i think that will get lifted and they'll be able to pay their dividends some point but you're right the big banks get away with a lot but what i always tell people is if you think about the federal reserve bank of the banking cartel then a lot of things they do make more sense i mean the federal reserve exists to help the banks especially the big banks and they're not going to do anything to harm that they can help and here's a pretty good example of that you know that's a pretty different scenario in front of tremendous pressure right now because all the increased regulation is a lot of cost to their business models and so the banks that are able to pay the giant banks and the ones that are against please the little community banks like. this which i've read about before is i think that the community banks could be on their own on the road to extinction and we could eventually see a lot of these smaller banks bought out consolidate into larger banks so they can meet the high costs high cost regulatory environment right so perhaps we are going to see too many more of these third federal savings and loans popping up maybe there are

a dying breed really quickly before we go and tell us why you're optimistic about real estate i want to bring up the indicator that's one major reason why that you were writing about if we could bring up that graph it's the spread between the cap rate and ten year treasury yield so what does this tell you about real estate that that's bullish right well for one thing you know borrowing costs are pretty low so you've got low bar and costs and he called the yield of the cap rate that you get for being the owner of the building is here and the borrowing rates here so that gap is as wise has been since two thousand and two really and when you look at two thousand to happen in two thousand and two the index almost tripled from that point so it's really a good time to own real estate now and i know that the low costs barring borrowing costs that we see are something of a call for smile because you know federal reserve is not doing interest but there's a way to let us from some walking a ten year rate i mean i just refinance my mortgage fifteen years that two point

seven five so. you know companies that do you have to and they're buying commercial real estate and right so it's a forced smile but if you're well capitalized to take advantage of it you can get the last laugh that we got to leave it there today but thanks so much chris mayer author of managing editor for capital in crisis. or at least wrap up with loose change to make your coffee and joins me in the hot seat to talk about who else he was in tokyo to for the i.m.f. meeting where he fought back against the criticism that came with his latest round of q.e. in the u. s. central bankers and other developing economies you know i know they often complain

that the fed's actions are hurting their economies by pushing them pushing their currencies to appreciate but ben bernanke you fought back saying the following he said that in some emerging markets policy makers have chosen to systematically resist currency appreciation as a means of promoting exports and domestic growth however the perceived benefits of currency management inevitably come with costs including reduced monetary independence and consequent susceptibility to imported inflation in other words he's chastising other countries for doing exactly what he does with monetary policy in the us is this just the kind of thing you can get away with when you're dubbed as the hero by some yeah it's like the same thing you know the guy who's the guy is this middle east scholar he was a professor at columbia you're a good muslim bad muslim and you used the phrase others have one man's terrorist is another man's freedom fighter so like ben bernanke is a freedom fighter for america. these emerging market economies is

a piece of financial current financial terror and which is where before we use that term to give you props where credit is the right yeah so anyway i think it's a funny thing about about been brought about ben bernanke and he's he's basically terrorizing the emerging market economies by generating all this liquidity buying up so many assets pumping so much money into the global economy these guys are running around the chinese central bank the brazilians are bike and they're printing money to soak up the dollars so you can keep their currencies at a competitive level so the this can buy their entire industry so let me ask you this do you think ben bernanke he just believes in his heart of hearts like do as i say not. i do and that's appropriate because for whatever reason or do you think he's really clueless and doesn't get the on hearing me. talk i mean. he definitely he definitely is i don't think he i mean. i think he's just above it all he just doesn't think that the rules apply to him so i don't think he kind of i don't think you see that as hypocritical for him but i think if someone else that he'd soon as

it were just like is above it that's the kind of comes with we when you're when you have a sense of when you're the hero and you're saving the day you know you can do whatever you want really more all right that's an old magazine cover by the way we just thought it was appropriate let's move on to another financial heavyweight german finance minister wolfgang schauble he emphasized recently that the e.u. should not focus on greece leaving the euro because he thinks that their membership in the e.u. is greece's best interest but is that really are we seeing a trend where creditors are fighting to reinstate feudalism. it. appears to be a group fired by people. i know. so greece is going to run out of money again in november it's another deadline with creditors and wolfgang schauble is saying they cannot default so we thought it was a good opportunity to look back

a little bit more broadly to debt serfdom because ancient greece is an interesting well i mean for getting into greece feudalism is back to hard core middle ages a feudalism ok if it was a read. it was that it's a great book or you can't remember your corner or the three can do it now it's this book you know no one cares just anyway there's not a point for it is that we're back to feudalism or right and feudalism of the serfdom where you basically the creditor is able to say ok you you don't have the money you'll never have it because it's been so high you're much slaves now yeah and we evolved over the years of bankruptcy laws so that creditors wouldn't have that sort of power over the debt but now we're back to that case in europe in the case of nation states and eventually this in the us bush did it with two thousand and five consumer bankruptcy protection act whatever those protect anybody it's called the protection act but just to refresh everybody before we go it basically made it more difficult to declare bankruptcy so that's the whole point yeah well if i could you know for them yeah because even in ancient greece debt slavery was limited to pull out all your money by far that's the book the world the only one

home to me there you go go read because we're out of time with you so much for watching be sure to come back tomorrow and in the meantime you know you can follow me on twitter at warren list or you can like our facebook page right there and give us feedback catch any shows you missed you tube dot com and also on hulu and have a great night. more news today is once again flared up. these are the images girls world has been seeing from the streets of canada. trying to look for asians to 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 everything you thought you knew you don't know i'm tom harpur welcome to the big picture. the music sigrid laboratory to mccurry was able to build a new world most sophisticated robots which on fortunately doesn't give a darn about anything tunes mission to teach music creation why it should care about humans in the world this is why you should care only on the dot com. gold fever. trends thousands into slaves. my father but also among brothers involved in the monsoon and since i started working in the mine i stated. to

multinationals. to cash cows to be milked dry and if i think that in this country gold medal logie as an environmental cost which is unacceptable to local business was labelled illegal and controlled by criminals you know in order to protect our lives our families and to work in peace. we are forced to pay protection to illegal groups prices colombia going to pay. the price of the modest effect on our t.v. . admission and frisk equity taishan free transport charges free. range mentioned free tickets free to skew tide free. download free broadcast quality video for

your media projects and free media oh god r.t. dot com. so.