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one of the largest credit markets in the u.s. might have a bite taken out of it yesterday that as you see release a proposal for major reforms to the money market fund industry which is causing a bit of controversy for dell of a one of the largest money market fund groups claimed that these changes would destroy money market funds that sounds a bit scary because money markets are eight point six trillion dollar industry so let's take a look at exactly what is going on with this now that as you see the proposal is intended to prevent massive runs on money market funds like those seen in two thousand and eight during the crisis the reserve primary fine took major wasis on

trades with lehman brothers it could have maintained the inspector expected one dollar per share price in other words it broke the buck this prompted a run on the farm and subsequently it triggered a run on the entire industry money markets are a major source of short term funding for companies and eventually the government stepped in the backstop was no small feat. sales are emerging today about a secretive treasury department program backing nearly q. and a half trillion dollars in money market mutual funds here's the kicker congress never authorized it a lot of. the f.c.c. plan comes after a year of internal disagreement over how to draft the new rules now earlier this year we asked as the sea and her own chairwoman walter about the proposal. we are working very hard internally on putting together a proposal to put it down for comment i would much prefer to see

a proposal be put out by the f.c.c. than by the sun. and it was this proposal that was finally released yesterday so what is it well as the rules stand now is the mutual funds a net asset value is point nine nine five rather than a dollar the final round up and report that everything is valued at a dollar however the proposed rules require a net asset value to stay closer to a dollar specifically within one. a penny a drop in value below this would cause the firm to break the buck however according to the f.c.c. rules they would provide exemptions to the floating net asset value requirements for government and retail money market funds now the f.c.c. reasons that because retail investors can't withdraw more than one million dollars from a fund per day there is a reduced risk for a run so given the tendencies of retail investors to continue to hold money market

fund shares in times of market stress and it pears to be unnecessary to impose a floating net asset value requirement on retail funds but how nice of the s.t.c. to expect retail investors to want their money back in a survey conducted by a treasury strategies of money market funds were required to use floating net net asset value twenty one percent of respondents would continue using funds at the same level while seventy nine percent were either decrease or stop using that money market funds all together and the f.c.c. is well aware of the potential damage stating that it could result in contraction and in the prime money market fund industry but attention hammering the ability of money market funds to compete in several respects affected by your proposal. seems perfectly all right with reducing the size of a money market fund industry even suggesting a list of alternative investments public comment on the proposal will last ninety

days so make sure you get your thoughts into the f.c.c. . time for the daily duel with involving good. good to have a job here at r t isn't it perry absolutely things are joining us so a recent harvard university study revealed that only fifteen percent of the graduating class plans to go and find this is down from forty nine per hour forty seven percent since before the financial crisis of two thousand and eight last year only nine percent of the graduating class actually ended up in finance but if you are a harvard student where if you ask them where they would like to be working in ten

years only five percent said fine here and that's that's kind of a big change because we we saw the industry was clamoring for these harvard grads before and now they're just laying people off so what's what's up with this i mean we're really starting to see what i mean jen rogers is famous for saying which is that finance and banking a dying industry and that if you really want to be successful and now you know our age range too you study something else he says agriculture ok it's kind of like the dinosaurs they got really really big and they just they were. they were not too big to five hundred words and jim rogers. well i think it's just you know important i understand there's other places to go to finance and things like you know well maybe they could come right here to k. street which is the regulatory street that's famous in washington d.c. do you think about that while there is definitely plenty of money to be on the k. street washington d.c. is expanding every day both on the lobbying side and on the other side which is in

the actual regulatory agencies and we see we talk about that revolving door all the time you know a lot of interest and the government sector is growing every day. it's good industry in washington d.c. here and georgetown university they collected data on the education workforce forbes compiled a list of the ten worst college majors at the top of that list was anthropology and archaeology which has an unemployment rate. ten point five percent way above average the national average and among recent grads the median earning is twenty eight thousand dollars very much a living wage and those are important industries but when we see the finance industry and deutsche bank particularly laying off thirty five hundred you know employees at a time where are they going to go i mean they have to this has to do with the whole reemployment thing and the student loan bubble that we're seeing when the government guarantees student loans to universities have the ability to price

increase the price of tuition and that's exactly what we've seen so we have a lot of people coming out of college and maybe not all of them should college just throwing that out there well i actually do agree with you on that i think you know not everybody is meant for academia they're just not i mean i can i mean there's plenty of other industries that people can be involved in i mean we need we need farmers need people to drive tractors we need. there's plenty of other job that i think are going to shock the world always needs to it's terrible. all right well bob and i have decided to hire our own list of the five words college majors to become a central planner regulator of the financial industry number five is ethics to become a successful in finance you should a lack compassion or emotion and always be open to a good bright well i think that's a little bit harsh maybe i mean there are there are some on his people on the regulatory side but i think when you get to the very top structure yes there is a certain amount of ambition that goes with the position and has higher growth you

know the cream does not rise to the top when it comes to these state sponsored jobs in the central planning you time you tend to get the worst i mean i sure hope you're right but we've seen a lot of amazing scandals. you know central banks and the primary dealers. certainly. moving on to number four is the logic that's because you can see in central planning response to just about everything has been completely illogical based on the simple but flawed premise. that debt and monetary inflation beget wealth when you think about that i think you need some logic to be a central planner i mean after all you're dealing with the world economy and yes it's rational at times but there have been times where it's been stable as well yes and that's all the models that we have that are kind of guiding you know the bernanke use of the world are based on maybe fifty or sixty years worth of history of debt and what they fail to take into consideration even though bernanke he was

an expert so-called on the great depression i don't think that those lessons are incorporated into the modern economic yukon and metric models and that was one of the failures that we saw during the financial crisis and what came out of the great depression was the great moderation but eventually yes up to walk after world war two definitely so number three is history because this time is different of course well and different because as i was saying you know they're not taking into consideration this generational super cycle that we have that we're also seeing the debt supercycle in the markets right now and we've got to get to number two and one real quick. there are because all the world is a stage and practice makes perfect but that doesn't necessarily mean that doing the same thing over and over is going to work. i mean i think to be a central planner you definitely need to have some type of speaking ability yet to get out and get from the market again from the world and for trey whatever ok we're going to have to suppose you're going to have to skip number one here but i think

we do have some one of the worst major to study is in finances science because there is no central planning that actually works you're better off studying magic and that's what the bankers of the bankers seem to be doing with all the money printing so thanks for joining wagner do if you want to follow us on facebook we're at facebook dot com slash prime interest follow baba english p.r.i. and you can follow me at hereon r t on twitter. and then a day of disclosure and obscurity on prime n.g.o.s we first looked at mario jargons public announcement that the e.c.b. would hold steady would hold steady there price inflation and super power ups for

you to asia and santander then we peered into the athlete named world of dark pools after a couple of laps in the deep end we concluded that we'd rather do the heavy swimming and another day another one point six billion dollars down for the orwellian fortress balance sheet such abilities a whole designer once reserved for goldman now proudly purchase on top of the house of morgan easily swallow than a dragon deer jamie shined a light on money market reform only to find values not jiving with not assets and our conversation with kyle harrington and more then a little when they did the way to. big to fail farms are gathering under the bed and i'm proud thanks for joining us harry and boring at prime interest have a great night. seals are born to write on the ice fields of the white sea. throughout the

twentieth century the pulp sure hunted for their snow white fur as. russia imposed a ban on this trade and hunters have since been replaced by tourists but will these pups stay safe forever. saving seals on r t. nobody chooses to be homeless no one chooses to me and now sorrow. is the world for the show to. get in the six pm get out six b six. they were. doing things for the. man not to me the class people and. there's no word against poor. it's tough to think about all of them comes to us and to know that

many may not have only been the last two won't have never been me but they're also due to for closures that never should have. live. please. please please.

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washington defends its three piece of millions of internet users i have a seven a yes a saying it only spied on foreign as outside the country. america and china are ready for a new formal meeting in california amid finger pointing over signed by tags and flaring tensions over washington's military buildup in china's backyard. and a president putin is about to become especially single off the he and his wife announced their marriage as a and what they called an amicable split. being together.