and staying there if you get your interest rate we talked about the really really. good afternoon and welcome the prime interests i'm harry i'm boring in washington d.c. and let's get to today's headline story. is goldman knight gary gensler is on the way out as chairman of the derivatives industry regulator the commodity futures trading commission this is after spending a three year implementing dodd frank recently suffering a losing battle with fellow commissioners and also after the office of inspector general released a damning report in may on his performance or lack thereof in the m.f. global debacle a front runner for his replacement is yet another ex goldman sachs employee and

mandarin tara though she spends most of her young career as a senate staffer but according to the huffington huffington post tara has a little experience and the actual financial regulation sounds like a perfect match. and insider trading is still illegal but according to a wall street journal article trading firms have been giving economic data ahead of everyone else for i have two feet for five thousand dollars a month was a one thousand and twenty five dollars connection fee waivers will give you broadly followed consumer sentiment reports two seconds of the public two seconds might not sound like a long time but is an eternity for high frequency trading strategies that can make millions of dollars by front running at the non premium subscribers and even public report is compiled by the university of michigan which says it relies. private

funding because it's not a governmental agency it's all perfectly legal but we do remind viewers of when the fat released a report to select group of bangs brokers and hedge funds by email a day early in april maybe the fed isn't a governmental agency either. and here is a listen you are prime interest. but credit rating agencies are an important piece of the financial industry and investors rely on them to assign ratings that reflects the risk associated with the security well there is a bit of

a cozy relationship between the government and the big three rating agencies s. and p. fitch and moody's the government relies on the rating agencies to rate sovereign debt what the same time the big three rely on the security and exchange commission to license them additionally private firms pay the big three to rate their securities as frank partnoy said it making them potentially beholden to the same people whose bonds they were raiding this is sort of like paying your teacher's assistant to grade your final exam but this isn't how the rating agencies always worked investors who relied on their data would purchase of subscription to their services and one license rating agencies still operates like this today now there's been a lot of controversy surrounding the industry says the two thousand and eight financial panic the big three basically rated triple a ball. junk securities take into the

financial system far earlier i spoke with financial analyst. and i asked him what was the fallout from this and has there been any reform and here's what he had to say. something struck me from the standpoint of the investor but there has been really any fallout also i mean beyond the politics of the issue there's still the standard racing agencies and the consul ratios of the banks and various financial institutions pension funds insurance companies still dependent on racing's all of these racing agencies so i don't see really any difference from the standpoint of retail investor or just well guarded freeing eliminated the ability of institutions to rely on rating agencies when valuing certain security is now has their relevance dissipated since the financial crisis or you don't see that i don't see rogers hole i mean look at the you're reporting on a simple use changing of the ratings of u.s.

government bonds i mean there seems to be followed as if it still mattered so i really don't see much of a difference it's all ok and there are different models for the rating agencies and the differences revolve around how they get paid can you explain the compensation structure for the three majors as n.p. fitch and moody's seems to me it's. pretty clear that since the nine hundred seventy s. the rating agencies. are paid by the very institutions that they rate so the banks you know all the government if they want you know if the banks want their bones. if they issue mortgage backed securities for example very paid the racing agencies to rates those bonds so that seems. problematic to say the least. right and one of our alternative compensation

structure is used by such as jones. i think you know it's for me or seems that there was some market process before the nine hundred seventy which was that the racing agencies were paid by investors so those who wanted to use. the racing agencies. you know. as independent research they paid for that research and that seems to me the real model the market model is to let the market pay for whatever services it wants no government regulatory agencies . control provide exactly the market power. they wouldn't otherwise have and now the s. and p. made headlines in two thousand and eleven when they downgraded u.s. braun's and this caused significant market turmoil and some have speculated that the lawsuit that followed this from the u.s. against the s. and p.

was kind of been abused and also you can jones downgraded the u.s. just a month before the s. and p. did and a few months later they face an investigation by the c.c. have speculated that these events could be related do you think there's any merit to that absolutely i mean you know why except for goldman statements at face value look at the timing and so on. you know whether it comes to regulation of all these kinds of things people being prosecuted for. racing the government bomb so i think it's not too much of a stretch to assume that the government has extreme influence over how all these racing agencies of going to break. the government's gone. well and a more recent development the s. and p. upgraded the u.s. negative to stable they were cited economic reasons. it's in monetary credibility

now what do you think of all this well you know i'm sure the various market players and large market players are going to. you know. analyse yourself however they will from the standpoint of really just a regular retail investor or a consumer investor. i really don't see what difference it makes i mean government for example treasuries are still at the top in terms of capital requirements and you know in terms of capital ratios so. you know it's really a lot of crude oil that makes no difference there's still ray said far too high i mean the fact is the government is totally and solvent and any independent analysis will tell you that you know all of these programs social security the government's reco of deficits. and so forth no end in sight to the reality is the government is

bankrupt and it was like the markets agreed with you because they didn't move eve there but you know one of the provisions in the basel three framework is that. for banks the most government debt is considered risk free and this would improve what's called their risk weighted assets can you explain basel three and how that works well you know this and to me it is sort of the finer points of what makes a difference with regard to the banks and how they're going to. allocate their console ratios and so forth. from the standpoint of a retail investor it's really you know i don't see what difference any of that makes whatsoever i mean the plain fact is the government is bankrupt they're either going to default. all they're just simply going to print up the difference to the.

at some point and you know it could take a long time but there will be a currency crisis so with that reality in mind and with the reality in mind of the major banks essentially bankrupt our own federal reserve life supports you know possible three caps and ratios and so forth that certainly makes a difference. you know it's not clear that it makes that much of a difference now there's a bill before congress called brown better it would scrap basel three and get rid of risk weighted assets away and implications could this have on the demand for sovereign debt. to you know to me the key i don't think it's going to have much of a difference only make that much of a difference i mean the reality is the federal reserve is there to cover the government's deficits the government is going to try to increase taxes to cover as much of it as it once it's not going to cut spending on social forster. in the meantime the fed is going to cover whatever funding problems the government has so

you know various regulatory changes. you know all all these sorts of things that do not address the power of the federal reserve to simply monetize that debt. you know to me this is some rearranging deck chairs on the titanic and you've mentioned before that banks are subject to different account rules and then the other end of stories i can you explain you how this well for one thing there are a number of you know things that you could say for example of the assets of the banks. also in some sense it's liabilities you know if you look i mean for example let's say that the banks can. you know they don't have a reserve base on which they can create credit assuming there's market demand for that credit and so forth but the pope. suppose in the bronx lend. you know some

amounts of loans. and speaking of the commercial bank at any moment deposits are on the withdrawal money. you know as a loan so did not send the assets and liabilities are mixed together and then you have various things like we are in where the pledge someone else's assets as collateral. but in any other business i mean you can't sell someone's car for example and if you did it would be fraud and there would still belong to or. it would have to stop you here. really a very interesting accounting role that banks can to take advantage of this is he's a financial analyst. and stage next we're going to speak with the president and c.e.o. of the solar energy industry association of growing up to discuss the record growth

in the solar industry then prime interest producer bob inglis and i will be told over the stimulus policy. and how they are causing the women to hike up their skirts in japan facebook announced they're adding hashtags to their sites you won't want to miss this.

so. stream quality enjoy your favorite. if you're away from your television just doesn't matter now with your mobile device you can watch your t.v. anytime anywhere. the

solar industry is seeing a record of growth and it's one of the fastest growing industries in the u.s. according to the q one report from the solar energy industries association solar energy installations grew thirty three percent over last year with about one hundred nineteen thousand jobs in this space employment has increased a year over year for solar workers although installation and maintenance is still expensive for solar energy costs are following the average cost of a completed p.v. system decrease twenty four percent over the past year. according to the f.b.i. a now here to discuss the solar energy industry is the president and the c.e.o. of iran iraq thanks for coming thank you for having me terry can you please just quickly go over the mission. for the national trade association for the solar energy industry and in that capacity we do all the lobbying the market research the

communications work and broadly speaking we work with the fifty six hundred companies that make up the solar industry in the united states to try to expand the market for solar energy and alternative and has certainly grown significantly in the past couple years all the respect to solar what types of trends are we seeing right now but we've seen record growth over the last four years in large part because we've had stable policy and what that has allowed companies to do is to scale up their manufacturing develop new business models to attract new investors and so what we have been as an industry is an industry that's attracting more capital more venture capital and more actual development capital in almost any other in the united states and the reason why is because solar is a safe investment and so very quickly we have found that the solar industry can scale up both in the residential market the commercial market and the utility scale market here in the united states and how does that compare to other alternative energy energy such as wind well let me give you a perspective the first quarter of this year we installed seven hundred twenty

three megawatts and we hear a lot about win a lot about natural gas but in the first quarter of this year the solar industry was forty eight percent of all new electric generation installed in the u.s. so fully half of all of the new electric capacity that's going into the u.s. is solar so right now we are competing very aggressively with wind as well as the natural gas industries and the trend over the past several years is that nonresidential or commercial is higher and that's a venture all we have seen is on this graph that we compiled from some data that we got from that. but in california it's interesting because the trend reversed residential was hired. and california also receives a thirty percent federal investment tax and this may be part of the reason why you know. you have insight into what's going on in california sure so first of all there is an investment tax credit it's a thirty percent investment tax credit that's available for residential commercial

or utility scale projects so everybody receives that tax credit regardless of what business model it is or where you are in the country but what's happened in california as well as a lot of other states is that there are new kind of innovative business models that allow you to lease a solar system rather than actually purchase a solar system so if a system was typically twenty five thousand dollars that's a lot of money to pay upfront but a lease allows you to do is to put solar on your roof with no upfront cost and to save somewhere between ten and twenty percent off your electricity bill from day one so that business model has really developed and come out of california and now represents more than ninety percent of all the residential installations in the states of california and arizona so it's become very popular very quickly and he also talked about the the solar investment tax credit and this is a role in the solar industry so in two thousand and six the first solar investment tax credit was put in place for the first time in literally a generation and since then we have seen a compound annual growth rate of seventy seven percent which is just absolutely

remarkable for any industry to see that kind of growth and the reason why is not because solar receives a huge amount of subsidies that subsidy is actually comparable to what's been enjoyed by the oil and gas industry since one thousand nine hundred sixty mm the coal industry since the thirty's the nuclear industry since the fifty's but what it really is is it shows that people want to employ technology that's clean they want to employ technology that they can put up on the roof or they can put it in their neighborhoods they want to put a kind of advanced twenty first century technology so we've seen the rapid growth rate due in large part to the stimulus that's occurred from the investment tax credit and sense people seem to be a favor. ball because it's clean do you think that we would have seen this type of growth eventually without the tax credit eventually but as a country we have always invested in our energy infrastructure as i was pointing out we've been investing since one thousand nine hundred sixteen in our oil and gas industry but what's important is that we have parity that we have good policies

that support all of the energy technologies that we build our infrastructure using the greatest resources that we have and i think that is an important point to make is that we have more so we're energy than any developed country in the world yet today solar still represents less than one percent of our electricity generation so the ability for this industry to scale up and tap into our vast domestic resource is there but how do manufacturing standards and the u.s. compare to those of broad i've heard stories of companies abroad that have a guarantee for twenty five years but after two years the panels have to be replaced well almost all panels you buy today photovoltaic panels come warranty for performance for twenty five years that's a warranty for performance so if it starts to fail either the amount of electricity coming out of it decreases or it actually completely fails they are going to honor that warranty and replace it now the big question is do you want to get in a situation that has a panel that is going to have to be replaced and the answer is absolutely not as there's been global competition and manufacturing is scaled up there are companies

who have started to take a couple of shortcuts using cheaper materials perhaps less quality materials and so it's really incumbent upon the industry to be careful about what you're installing make sure every single panel is tested before it's put in place to make sure you're buying from a company that has a good balance sheet and a good warranty or at least an insurance policy that will make sure that they can replace those panels if they ever do have any problems and we have just under a minute now where do you see the future of solar going well it's very bright what we installed this last year was about three point three gigawatts we expect to be installing ten gigawatts on an annual basis by nine hundred fifty by two twenty fifty and i think what's really important is that we are. getting jobs in this country and we're going to see more and more jobs created that are putting people back to work in the construction industry these are electricians roofers and you can see more companies really employing solar like wal-mart and google and apple really the icons of american business and finally what you also see is the military

deploying more and more solar and they're doing it to keep the troops safe overseas and they're also doing it to lower their energy costs here in the united states so i think very quickly you're going to see solar energy ubiquitous on the roofs in the united states well thank you so much this is rations the president and the c.e.o. of the se i thank you for having me i think. it's time for the daily deal with bob. let's not make a hash of this well facebook is going to because facebook adopted clickable house tags into their social media sites the company said it's one of the many features they'll be employed mentoring hashtags are said to be fully implemented in just a couple weeks worldwide now if this seems familiar it's because twitter invented

hashtags or at least brought them to prominence and do you think facebook is just kind of piggybacking on something in their company is starving for revenue now that they've lost some of these social media games i mean what are they trying to do here but i think facebook is just facing competition which is a good thing because now they have to upgrade their systems facebook will finally catch up with twitter and will be easier to use site we can use it for more things like hopefully and i hope everybody follows us on facebook but i just don't see it as being i don't see it as being a real time forum where you're tracking events and you have people able to interact the way they think it's going to be but i'll let mark zuckerberg figure that one out well see where it goes. you know their stock price is not doing well so when i called the i.p.o. the faceplant so it's down maybe forty percent now and that's why investors are suing but. company look they're going to be ok in the long run i think they'll figure this one. doing fine but over in japan that there is

a new girl band has caught our attention and they change their outfits in response to the nikkei stock market when the market is up and so are there. so the loose economic policies. are just about scandalous as the girls deciding to go completely skirt lace with their interview at the new japan times the day the nikkei was thirteen thousand just to pull a few quotes from this because it is a japanese they're saying monetary easing construction bonds let's just revise the bank of japan law let's aim for three percent growth let's go this sounds pretty motivational well market shadow has a very bullish near term target target of fifteen thousand for the nikkei and if the nikkei reaches this the girls will take all of their good intentions to the streets of tokyo and deliver cakes to the public so they even put this target on a t. shirt i would love to have. the group on prime interest. i'm

sure some i think their fans ninety five percent male between the age of eighteen and fifty ok well here is the deal if the dow hits twenty thousand dollars i'll take off my tie but that's that's about it but what do you think about what do you think about this trend coming to america i mean in japan they have these pop groups that are kind of very neat and they sent around a particular idea what would you think would happen if we had a pop group in the u.s. talking about chairman bernanke at the fed i think would be more of it and i think that's part of the reason why we talk about him so much here because not enough people are so good p.r. especially when you're talking about the federal reserve that just kind of flies under the. a lot of times well that's what some people say i don't know if all all that is what donald trump says is all present good of president stuff or bad press which is still good press so i think you know whatever we can do is i've heard speak. francisco's like it is confuse everybody and then it was speaking of confusing everybody i just want to say we have an epilepsy announcement next week

and we're looking forward to covering that and i will be at the new york stock exchange that day and delivering the hit that will be watching at some point and we also want to have another announcement larry king has a new show politicking appears tonight at nine pm. eastern time right so we're excited larry king is finally joining the family yes here with prime interest the news and oh yes. and thanks for watching if you want to follow us on facebook we're at facebook dot com slash prime interest and you can follow bob on twitter. and you can follow me at perry and r t bob thanks for joining a gym. and

it has been a day of movement and prime interest gary gensler is itching to leave the sea of teen sea and his replacement is set to sail through the senate the economy sure move the markets but we learn for a price you can get the private ones at u.h.f. seconds early and stodgy about service on a tour of the ratings agency and it wasn't the scenery that guide our attention the road rash explained how those photons traveling at the speed of light are powering like a never before finally bob inglis and i took the bullet train to tokyo. to find some stimulus loving singer is thanks for watching it make sure you come back tomorrow and don't forget to check out larry king's a new show called speaking tonight at nine pm eastern from everyone at prime interest imperium boring have a great. little

. money and technology innovation is developments from around rush hour we've got the future covered. more news today. games. these are the images of world has been seeing from the streets of canada. trying to corporations rule the day.

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lethal decision the u.s. is said to provide military aid to the syrian rebels off the claiming it now has high confidence that the small scale use of chemical weapons by assad's. soldiers government stepping up the pressure on protesters with another crack down on a rallying cry. while the prime minister issues his final ultimatum. that the audience go to the polls to choose a new leader we look at the man spending his last days in office has reviewed the controversial legacy of president with an agenda.