came to prominence as the federal reserve and treasury arranged for bailouts for some of the largest financial institutions. attempted to remedy this by creating the financial stability oversight council we call f. stock is composed of representatives by most u.s. regulators and is chaired by the treasury secretary jack lew is mission is to basically get rid of too big to fail by first identifying potential large for threats and then monitoring them along with the markets on an ongoing basis. it has already designated certain banks as the cynically important financial institutions or cities and if soc had them submit so-called living wills these are plans to wind down the financial firm should it become insolvent but it's not only banks that can be that as a native at fifty's and sure as companies clearing houses and others could potentially cause systemic risk as well and only recently three companies two insurers and one lender and now if they had been sent notice by av sock that they would be on this list till we're joined by kyle herring ten of harrington capital

management to discuss this and what's been going on recently in the markets thanks for joining. me for having me it's a pleasure and we recently saw that f. stock headed by the treasury department tentatively designated ai g. prudential financial and g.e. capital as systemically important or safeties what's the significance of this expression when it comes to new regulation of these entities well i'll tell you i you know i'm not a supporter of too big to fail i know that currently throughout wall street throughout the financial communities both insurance and big broker dealers we are going through a process of how to regulate better regulate these institutions and i support regulation what i don't support is over regulation and it seems as if they're going to designate some of these bigger players like a i.g.

like prudential and put them in an area where the federal they're regulated on a federal level so that we don't have what we had in two thousand and eight where taxpayers bailed out these major institutions like we've never seen before so if it's going to better regulate them so that we can prevent that i support it but what i don't want to have happen is that tend to loom swing so far to the regulation side that these businesses are not allowed to operate in a free market economy. are there any other non-bank financial companies that are speculated to be designated as a safety. hearing some of these others you know some other big insurance names like all state and maybe some other bigger financial institutions that are more on the brokerage side of the business as well i don't want to speculate necessarily but i am hearing that the umbrella may widen in terms of these moving from state

regulated entities to federal regulated entities ok well both a.i.g. and g.e. capital they were bailed out during the financial crisis. to the tune of one hundred thirty billion dollars given one hundred forty billion dollars is this if he does a nation really mean that the next time if there is one that they won't be bailed out i think that's you know that seems to be the insinuation here and i you know in that way if you if you listen to the g. c.e.o. he actually is he wasn't necessarily disagreeable with respect to the new designation for a g. so. i think that that's kind of what they're hinting to is that you know there's not going to be any more bailouts and you're not going to be too big to fail any longer so what we're going to do now is regulate you would a federal level maybe more stringently so in that way i think it would make sense let's just see how these how the regulations fall into place because you don't want to stifle the free markets and the economy with respect to these banks in the

nation is not final because there has to be a process. that is going to go through the final ruling will be made by treasury secretary jack lew when he makes that sign off because of this absolute itself did not reveal the company's names he left that up to the companies to voluntarily and now it's that to the markets. why do you think that they these companies that go ahead and do that. well i think you know it seems as if in today's world full disclosure and timely disclosure the market at least has the ability to digest in a lot of these c.e.o.'s now given some of the other issues with say lehman brothers for example or bear stearns you know disclosing something early on i think allows shareholders to feel some level of comfort. in the stock price and the future and so the i.g. chairman coming out disclosing that and then saying that he actually had there been

any relation between these two events and. again i don't i don't necessarily want to speculate but it does it does seem coincidental that these two things happen at once and oftentimes a lot of these bigger institutions if they're going to make announcements that are significant in nature maybe making them all at the same time you know makes a lot of sense so it does seem coincidental but you know i'm actually i'm for the disclosure and for these companies coming forward and if there's something that's immaterial events like this i think it's helpful for these bigger companies to do that and why have you here i want to talk about the markets in general and last month the fed made noises that it might be might begin tapering or slowly reversing the quantitative easing program perhaps as early as the end of this year and we've seen significant market correction since then what's your view on the markets now can we be entering a bear market anytime soon yeah you know it's interesting i've actually not off not

that often but then this time i've been i think spot on with this market you know i thought that all along it's gotten ahead of itself i want to address the fact that we are on our way to seventeen trillion in national debt we have a sluggish g.d.p. our employment marketplace still seems to be over seven and a half percent nationally and so i expected there to be a sell off now with the. fed talking through the notion of not buying back. and getting involved in the treasury market as much as it has over the last year i kind of sense that people might be a little bit hesitant to put capital at work especially after a dow jones and s. and p. that's run up significantly in the year of two thousand and thirteen so we remain very patient and i think we're going to continue to do that we're going to investigate names that we think may be and have continued to be out of favor and

are reasonably valued and start taking position in those names but we're not going to rush to put any cash on the sidelines into this market at a at a fast pace well what have the recent market moves been doing to trading firms that engage in trend following strategy. well you know i think that you know if you look at the overseas markets in japan for example i think that that's an in over inflated marketplace and so the short term traders have gotten a lot more active in watching trends that are taking place and looking at the monthly numbers that come out like the jobless claims number or like consumer sentiment consumer confidence and so for the short term traders they're paying a lot more attention to trends and getting in and out of positions. as they see trends start to you know unfold and right now we're seeing a trend although the market closed up i think the dow eighty points today but it

was it had sold off for most of the day so that was a sign of a little bit of confidence that maybe at this fifteen thousand level for the dow jones there is a there's a floor and the japanese markets have been extremely volatile both yawned and stocks the nikkei was first up sixty five percent this year and then it was down one thousand percent from that high you do you think that the massive stimulus program over there had been a failure. i think that it is hyper inflated over inflated whatever word you'd like the market significantly i think we saw we have that here as well we have historically low interest rates people are not really interested in the bond markets because there's no real rate of return in fact you know that when you look at a ten year treasury it doesn't even touch the rate of inflation if you look at say a three percent inflation rate i think the same as happened in japan i think what

needs to happen in order for a healthy marketplace in this free economy to take place in both japan and in the united states is a real deep examination of the expense side of the income statement that the united states government has and that means looking at entitlements that leo that means looking at expenses that we can trim in order to really get this deficit in a better place or at least paint a picture going forward that we have a grip on our expenses as a country and then also the the employment marketplace needs to pick up and i think the way you do that in is to really get a hold on what taxes are going to be loosening some regulations at the entrepreneurial level in these banks starting to lend again and i think everybody's cautious so i doubt that's why i believe the market has got it gotten ahead of itself in both japan and the united states and you know i would say be cautious get with someone that you trust as an advisor and and really build

a plan that you think is is it takes advantage of what's going on in the market right now and now you work for a number of large banks and brokers before you start your own firm or with merrill lynch doing to bank what goldman sachs what is the difference in the corporate culture is after those firms does of there's you know people realize there is a big difference in a lot of those firms and and some of them are good some of them not good some of them good for me not good for me i started my own firm quite frankly to build my own corporate culture and. you know at a goldman sachs it's i think i can just specify that it's a lot more about teamwork and at some of the other places it's more about more the individual so. they're very different in nature they're all successful in what they're successful at and the negatives you know they you know

there's a lot more regular regulatory scrutiny now and i think some of those cultures are more conservative in nature and some of the more not so conservative right now i think in order to succeed with regulatory environment being what it is you have to be. a lot more cautious very well thank you so much for joining us this is kyle harrington herrington capital management thank you so much. and stay tuned because up next we dig into the final print of money market reform what's in store for this two point five billion dollar industry that nearly imploded in the last financial crisis when a prime interest producer bob inglis and i though doc weren't the over the five a college major that are best or worst suited for the financial industry.

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now one of the largest credit markets in the u.s. might have a bite taken out of it yesterday the s.e.c. release a proposal for major reforms to the money market fund industry which is causing a bit of controversy for dell of the one of the largest money market fund groups claimed that these changes would destroy money market funds this 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 couldn't maintain the inspect it 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 steps in the back. it was no small feat. pills 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 plan comes after a year of internal disagreement over how to draft the new rules now earlier this year we asked s.c.c. and our own chairwoman walter about the proposal. we're working very far in internally on putting together proposal to put it. i would much prefer to see a proposal be put out by the f.c.c.

. 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 zero point nine nine five rather than a dollar fine round up and report that everything is valued at at all or however the proposed rules require a funds a net asset value to stay closer to a dollar specifically within one two hundredth of 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 money market funds see 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 necessary to impose

a floating net asset value requirement on retail funds how nice of the s.e.c. to expect retail investors to want their money back in a survey conducted by a treasury strategies as money market funds were required to use net asset value. twenty one percent of respondents would continue using funds at the same level while seventy nine percent would either decrease or stop using that money market funds all together and the f.c.c. is well aware of the potential damage saving that it could result in contraction and in the prime money market fund industry but tenderly hammering the ability of money market funds to compete in several respects affected by or proposal. as the scene seems perfectly all right with reducing the size of the 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 it's 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 into finding 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 i think we're really starting to see what i mean jen rogers is famous for saying which is that finance and. thinking of a dying industry and that if you really want to be successful and now you know our age range to 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. what do you think about that while there is definitely plenty of money to be in 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 kind of interest and the government sector is growing every day leaps and bounds 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 of ten point five percent way above average the national average and among recent grads the median earning is twenty eight thousand dollars a 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 far. to drive tractors we need. there's plenty of other job that i think are going to be shocked the world always needs ditch diggers that'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 the financial industry number five is epic to become a successful in finance you should a lack compassion or emotion and always be open to a good write well i think that's a little bit harsh maybe i mean there are there are some honest 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 as high

a groat 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 worse i mean i sure hope you're right but we've seen a lot of amazing scandals going to mean you know central banks and the primary dealers. certainly. moving on 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 well what 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 you kind of 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 and that is. theatre 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 slow they'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 so that's what the bankers of the bankers seem to be dealing with all of 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. it's been a day of disclosure and of security on prime n.g.o.s we first looked at mario jargons public announcement that the e.c.b. would hold steady would 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 or william fortress balance sheet such abilities a whole designer once reserved for goldman now proudly purchased on top of the house of morgan easily swallowed in 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 bell farms are gathering under the bed and i'm proud thanks for joining us harry and boring at prime interest have a great night. the u.s. government versus private first class bradley manning what is this trial all about

protecting state and military secrets for a show trial scapegoating one individual says this trial sent a chilling warning to would be whistleblowers and to journalists and what does aiding the enemy need in the age of the internet. the civilized world produces more foods that it needs. well people die of hunger in other countries. millions of victims every year. where a meal is the most about nutrition. is flood or droughts to blame. it was a bad year without a trained we couldn't plods anything with the water. there was great hunger. as it did help comes too late and without good intentions.

charity diplomacy and business to. nobody chooses to be homeless no one chooses to be a mass sorrow. isidro's for the show to. get in the six pm get out six b six. they were in. school they. had to be the class people. against course. it's tough to think about all of them comes to. an end to know that many may not have only been the last to choose won't should never be but they're also due to foreclosures that never should have.

wealthy british style. that's not on the title of. markets why not come to. find out what's really happening to the global economy with mike's cause or for a no holds barred look at the global financial headlines tune into kinds a report on our. kids he. just needs. sixty.

washington to fans of sweeping surveillance of millions of internet users over seven years saying only spied on foreigners outside the country. american china ready for an informal meeting in california amid finger pointing

over its cyber attacks and flaring tension over washington's military build up in china's backyard. and president putin is set to become officially single after he and his wife announce the marriage is over in what they called an amicable split after thirty years of being together.