gone and done it again almost blowing the greater fool i guess that's why the wealth of mom and pop investor is going the way of the mom and pop convenience store fricken extinct right stacey exactly max well there's a myth going around that this is an unloved bull market by mom and pop that they have not participated in this rally in the dow and the s. and p. well well mamma papa vespers blow it again data shows that the ordinary retail public mom and pop are back on wall street and have no according to the investment company institute the great american public has poured ninety two billion dollars into the stock market via stock mutual funds since the start of the year now if you put that into context last year at the in the beginning of the year they withdrew one hundred eighty billion dollars at it's low but the mom and pop investor are the average investor let's give you a visual demonstration of what happens to these poor people oh my goodness and if

that was my net worth i just went into that those fair you see they always come in at the top and they come in with borrowed money they come in with margin margin they should missed us are they get margin that is never been higher than it is right now same thing for the bond market stacy that's why the vast majority of it disasters were oh my god oh my goodness gracious that the vast majority of investors they came into this market in the bonds looking for yield and they topped take the three hundred year bond market top in britain and a two hundred forty year top in bond market and united states now both of those markets are set to contract they're set to crash the average investor the mom and pop is about to get a vis rated about the decapitated are going to be laid out on a slab and hammered a mercifully with a ball peen hammer between the eyes with an enormous sledge and it's going to hurt so much it's going to be painful again and again and again and they love it because they're sadist a masochist. american investors they're british investors they're losers. so let's

look at the last time that mom and pop did this the last time the investing public jumped into the wall street pooled both feet like this was in two thousand and seven and they are investing even more this time around and the first seven months of two thousand and seven they invested eighty five billion dollars and so sock funds so of course these people push this myth that somehow that ordinary investor missed out on this bull run and gosh darn those bear people who convince them to stay out of the market all market tops are reached all high prices are reached because the ordinary investor who is selling to them is the other question and that of course is the insiders and the likes of george soros well i remember back in the two thousand and eight two thousand and nine period wall street a federal reserve george soros warren buffett they engineered a crash in the stock market they took bank stocks like goldman stock goldman sachs citi group wells fargo h.s.b.c.

barclays they all dropped fifty sixty seventy percent value their member hank paulson who was the treasury psycho the time who called up buffett he called up the head of citi group b. called up the head of goldman sachs and j.p. morgan said that the government was going to bail out these institutions they were not going to quote unquote fail he passed that information along secretly without public disclosure if they all bought those stocks they may double triple quadruple now they want to get out so that sells c. and b. c. they found maria bartiromo to go on c.b.c. and say oh you poor individual investors aren't fully invested yet turn to buy in at the all time i use your margin to get a visceral this is what we want to do with your net worth maria this is notorious investment program to get all those zero well yeah exactly and hank paulson i believe met with a bunch of goldman sachs related hedge funds and he told them that in fact the u.s. government would bail out fannie mae and freddie mac. when he was telling publicly and he told congress and therefore the pup. of america

that they would not that they definitely definitely would not so they had insider information on that now let's look at this next headline soros is biggest holding a bearish call on the s. and p. five hundred now of course you would not know this list into the mainstream financial news because they just focused on his long position on apple and his selling g.l.d. the gold e.t.f. but soros fund management's biggest position is a put on the s. and p. five hundred e.t.f. s.p.y. sorest bought a put one million two hundred forty eight thousand six hundred forty three s.p.y. units in the quarter well the services make a huge negative bet and made him a billion dollars trashing the british pound he's made other multibillion dollar bets over the course of the years he's made billions of dollars taking the opposite of what c n b c will tell you to do and this is how he's made his money over the years and of course the apple computer story with carl icahn involved he got involved in the stock and some other has fund managers and don't forget they

collude they talk to each other we know that from steve cohen and as they see. capital management that they all engage in fraudulent insider trading so that's an easy greenmail what they call blackmail for these guys so here we have the mainstream financial media telling mom and pop don't listen to the bears you have lost all participate in this huge bull run in the s. and p. five hundred well bully on baron in this article is quoted and he says soros reportedly made one billion dollars betting against the british pound in one thousand nine hundred two we heard rumors of soros making a one billion dollar bet against the australian dollar a position that has done well if true we heard when he made a one billion dollar betting against the yen but where are the headlines for his one point two five billion dollar bet against the stock market because it's part of the cathedral of fraud known as the new york stock exchange where the vatican of corruption is worshipped by the apostles of the most a general priest. of accounting manipulation and stock manipulation the jamie

diamond so don't report it in america that would be like going into the vatican and you know doing so it would be quite bad i thought of something just now but i'm not going to say if they because you know there are limits so here you have george soros betting against the market you have mom and pop betting going long out of whatever wealth remains from the last crash here's a tweet barron's company insiders and early august sold five hundred twenty four billion dollars worth of shares and bought less than fifteen billion according to thomson reuters data so again either mama papa right or george soros and the company insiders are right only one of those guys could be right with the credit markets hitting new all time low margin debt high that borrowed money which is always a sign of a top it's also been in a quote unquote bull market for a number of weeks that corresponds to the average length of a move in the market so that's rolling over and at the same time you've got now the

bond market has peaked in the last twelve months the yields it those incredible lows yields are starting to move up and rising ills of course are the headwind the stocks cannot overcome and that looks like it's to increase well you talk about record margin yields on the market well over in the housing market remember where we're hearing the propaganda that housing in america is in a recovery and it's all because of mom and pop the ordinary investor is able to participate homes are now affordable thanks to the zero rates from the federal reserve well the actual reality the facts on the ground are quite different reports how of all homes are being purchased with cash in fact this is a little more than half a closer to sixty percent according to goldman sachs are being purchased with all cash that comparison to twenty percent in two thousand and seven before two thousand and seven before the crash so. most of the money is coming from investors

foreign buyers and rich people but it's mostly investors private equity and hedge funds who have access to large pools of capital hundreds of billions of dollars and they're deploying this around the united states buying all cash these properties thus driving the housing market is driven at the margin because not very many homes are ever for sale of the total pool so they're driving up the prices they're there for mom and pop of course once soros is betting the s. and p. pays off when it crashes they'll say well you should participate in the housing market and of course private equity and the same head trends like soros will be there to sell them these properties at inflated prices so long as the subprime crime crisis it was illegal loans made by banks. were ninja loans or other types of loans that were illegally made that they were fraudulent they made they lost the deeds they lost the mortgages they caused a huge crisis many people lost their homes the black population america had the largest confiscation of wealth going back to slave days and now suddenly groups

like black rock who can borrow from the fed at zero percent can buy up all these properties for a song after they essentially vick did hundreds of thousands and probably more close to a couple of million now they come in with cash and they get paid on the money they borrow to flip the houses they don't actually need to own the mortgages or need to participate in any upside in the housing market they'll be long gone now except for another crash after they made another huge profit floating more fraudulent securities well so let's look at these two charts here these are from provided by dr housing bubble looking at this data from the wall street journal story about all cash buying of houses so the first one is from goldman sachs and this is the cash transactions by counts so the dark blue line is the cash transactions and the dollar amount is the light blue line as you see there's a rising amount of cash buying but on the other side here is from zero ahead this is existing home sales as in orange mortgage applications and. lack and that's

plunged since the beginning of two thousand and thirteen as mom and pop are piling into the stock market their actual mortgage applications are plunging and in fact purchased mortgage origination volumes have fallen from about one point five trillion dollars in two thousand and five when the housing market peaked to around five hundred billion in each of the last two years so once of course that leverage starts piling on again you're saying this is what mom and pop is assigned them on the pop are piling into the market and are about to lose it all to the private equity and hedge fund cash buyers oh sure obama will announce a program where i don't double or triple the food stamps or what they call electronic benefit transfer current snap snap snap out yeah good luck multitude stamps they're going to quadruple the food stamp program and then you can use those to buy more you buy a house the food stamps quadrupled the food stamps and use those to buy a house you see them saying it's own it up it goes j.p. morgan will float the food stamps they'll float the faulty mortgages they'll refuse

securitized the hedge funds knowing that they're going to explode they commit fraud five different ways to sunday and of course i'll count that as g.d.p. growth. well dr housing bubble concludes that the data shows the charge so that this delusional dream played into the fantasy that this housing market is naturally rising because of overall household demand when in reality it is being driven by investors leveraging the artificially low rates created by the fed mom and pop are being this or it all right state senator thanks so much for being on the kaiser report. what defines a country's success. faceless figures of economic growth. for a factual standard of living.

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welcome back to the kaiser report imax geyser time out of turn to alan jones author of jabs the demonization of the working class alan is currently working on his next book about the british establishment and all of course is most famously known in this country as a columnist for the independent on jones welcome to the guys ready to see you are you there all right on jones guy been here now. i want to talk to you first about a couple of data points that we've talked about on the steps george osborne's well for welfare reforms will see eleven play billion pounds taken from housing benefits while at the same time itself devised game grants twelve billion in subsidies roughly the same out for housing speculation so what does this tell us about the government's prejudice perhaps i think he says quiet low and surprisingly even if you look at those riots of only skate. the makings of an absolute disaster you know the whole sustainable bubble when you've got real wages at the mill you've been going through the biggest squeeze since the seventy's and by the seventy's we mean

the eighteen seventy's where you have a situation where you and i was building is at record lows record lows since records began in the nineteen twenty s. and then you try to inflate yes a new. house price bubble well you know this is something which will come down crashing on this as i have previously with previous disasters but more important of course that will again make housing even more accessible particularly for the next generation as these house prices continue to soar when there's a lack of affordable housing if you flip are you looking at these co-ops these cuts for the welfare state now when we talk about housing benefit is really in a time span as are every reason to be furious about the amount being spent on housing benefit is going to see billion into this government is now to borrow twenty four billion pounds every single year but the point is is subsidizing private long lords charging extortionate rents is not lining. pockets of these tenants the reason housing benefit the bill has just exploded inside them to new

labor on the tories is because successive governments have refused to let councils build housing to replace the stock that was sold off in the eighties huge amounts of hundreds of thousands of council homes were sold off and not replaced forcing people into the private rented sector where rents a much higher line will charge extortionate rents expects you know the time spent to step in and subsidize them so instead of cutting housing benefit which of the day will end up hitting the tenant because it will simply be passed on to the tenant in that way what we should be doing is letting councils build housing let them borrow which would create jobs stimulate the economy pay for itself as they get a stream of rent coming in and bring down housing benefit even that looney left the bowler's joins the conservative maryland and has supported that sort of approach so what this shows is just an absolute disastrous approach to housing policy when we

do have a huge housing crisis in this country five million people who are storch of social housing waiting lists where you have the number of families forced into the private rented sector which is regulated in secure high rents the number of families has doubled in just five years we have homelessness figures already soaring these measures are going to make these problems a whole lot worse and one day allows him benefit problem if you like which is why it will show a lot about the prejudices of this government because they're not willing to support if you like some of the poorest people in society but will create another one sustainable bubble to help try to bribe people basically in advance of the next election ok i want to take every single word they just said to condense it into one word borrow now borrow for a second you are saying oh let's increase council housing let's allow for borrowing to take place and of course the government will say already. stretched on the borrowing front we have too much debt already however when it comes to bailing out

corrupt bankers bailing out h.s.b.c. called money laundering it for drug terrorists or bailing out barclays or lloyds or r.b.s. there is an unlimited amount of money available to be borrowed at one half of one percent so my question to you since you're such a keen observer of these things and i use some metaphors occasionally i want your thoughts on this to me i would equate this to interest rate apartheid where if you're an insider in the city you can borrow money to half a percent and speculate all day long creating housing that you in turn becomes the property of greedy landlords but if you're on the other side of the coin if you're out there actually working for a living and you're short a few bob at the end of the month you go to wanda and you pay five thousand percent annualized rates of return is this idea of interest rate apartheid between these two elements of society is that an appropriate metaphor or is that too hard your thoughts when it is just

a foosball of your question just to knock the boring point on the head when it comes to councils the whole loan given age that you lift the cap on councils being able to borrow then you've changed our accountancy view so then lowing with all the western european countries we're borrowing by local authorities isn't included in the net national public sector boeing figures again but which johnson has made this point abundantly clear but the point you're making about interest rate upon sight if you like i think is a really good one and it boils down so they say life just becomes far cheaper the rich that you are and we have a situation where one million families have now be forced into the arms of these illegal. who are exploiting the fact we're going to see the biggest squeeze in living standards as i say on rec hold we have time for million people in the seventh richest country on earth forced to rely on food banks where you have. charity show like save the children people having to choose between heating

a hug and feeding their children again one of the richest countries that has ever been on the face of the m then in order just to make ends meet to pay bills to pay rent to pay a mortgage let these people in was that they constantly cover that and again also when people climbing housing benefit now new clients people in with the current afford to pay their rent the full since the onset of these legal and shocks then if you look longer ly one being the most famous example you've got the money shop and a whole range of different companies sprinting out going to some of the poorest neighborhoods in this country and you'll see streets lined with lead to large chunks but then you get these buying these bankers and you can basically fiddle around with money at these extortion is ridiculous the low sorry interest rates i don't know so i just don't know it's extraordinary there's an extraordinary element to it because when they get in trouble they put a gun to the state said and they said i to give us another huge bailout are going

to crash this economy by using our massive influence on the way markets work and market manipulations to create a crisis so they are putting a gun to the head of the state of the state appeases what i call these financial terrorist but only ask a question here because they are poor in this country are told to pick themselves up by their bootstraps and work harder but they're being asked to do so in an environment where you've got these financial predators circling around the interstate apartheid ghetto at what point does rhetoric become outright scapegoating because i notice in this country the poor now are being increasingly scapegoated as the reason for all of the country's ills economically going forward that is the poorest fault and we've seen this movie before back in the 1930's over in europe where suddenly one group of people is scapegoated as the reason for all these troubles and then we know where it goes from. it again am i being too. over

the top there or is that something you observed lots of very good point in just the time those two elements together if we look at the label scandal absolute power right fraud being the part of the american audience i would call that the library of all as i get so today there is a right in which people have trouble speaking american at the somalia is from a northern english rule of a fight apologize for your political agenda not cowardly that the point about these only war scandal is no one got sent to prison for that but if you commit even the smallest bit of benefit fraud in this country you get state benefits and maybe get ten pounds cash in hand you get the police knocking on your door in your face criminal challenges is one rule for them and one of all for everybody else i'm not scapegoating we've had in this country where you've had a conscious effort to read direct people's growing and legitimate anger at the fact that living standards are falling year on year away from those you cause the mess we're in the crisis that's people tonight is down the streets so if your in

a low paid job you're struggling to make ends meet your tax credits are being slashed by the government who do they get you to turn on the all employed work shy scroungers down the road if you will so in the private sector where pensions have just been absolutely decimated over the last she is who do they want you to turn on the nurse next door his pension is still intact we have it with immigrants now increasingly the argument is always the same we've moved so why should we kill less deserving neighbor and this is a brilliant way of deflecting blame away from those who are well literally laughing all the way to the bank the bank is to continue to pay be paid huge bonuses who have been bailed out by the states one of the most outrageous examples of socialism for the rich that has ever been seen in human history while most people are getting poorer right across the board there's a conscious effort by the government and the media people who are so-called journalists who end up being the. sickly propagandists and are wrong ideas for the

government he's trying to flush. out people's neighbors on the basis that they haven't been kicked hard enough and you'll get in kate's and you'll notice. speaking of scroungers like george osborne yemen situation where the housing market crashed essentially in two thousand and two thousand i was part of the credit crunch the scroungers in this case would be the big banks in this country and the housing developers who were sitting on bonds that were collateralized by the mortgages they were sold. hundreds of billions of pounds worth of these mortgage backed securities are sitting on their balance sheets if these mortgages were allowed to trade at the fair market price based on true supply and demand then all four of the big banks this country would have been insolvent the government they want scrounging to the government and saying you we need you to take all of our should crap mortgages and put it on the balance sheet of the bank of england in exchange for fresh pounds that will put on our balance sheet and we'll say we're

solvent so in other words the option of the aristocratic class is to simply take all their bad day whenever they make a mistake swap it for good stuff at the bank of england and then declare themselves solvent so if the same option were available to council estates around britain using the same technique they would be able to take all their wanted debt and they could go to george osborne they could go to mark karr you know bank of england and say you take my i want to get very low yeah you take my long good debt i want a fresh path to turn a treasury bill in pounds why is it again this is interest rate apartheid why did the scroungers in the city of london get to have this option of money at a half a percent whereas everyone else is paying these extraordinary rates and they don't have their relation was the bank of england only serving a few people why isn't serving the country as a whole what exactly what we go with the whole buying bejar is we nationalized the debts and privatized the profits as a safe seats are the socialism for the rate to its corporate welfare which are

everywhere you put it but when ordinary people get into a situation of working people or people who are employed or disabled people have hope that benefits taken away when they are fools into such a state where they can no longer afford to pay the bills with rents which are out of control and if you prices food prices which are above even the rate of inflation in this country then of course they can go cap in hand to the government and be expected to buy over our instead they have to go to an unregulated. legal loan shark sector to make ends meet and face interest rates which are absolutely astronomical but this comes down to the nature of modern capitalism in the free market which has become frankly a fraud it's all subsidized by the state buying stuff being bailed out low wages which bosses pay and then expect the government to step in by paying tax credits londoners each are objects torching that rents and then expect the state to step in and subsidize them with housing benefit trains which we now subsidize so the tune

of four times more wealth than when they were publicly owned we have a whole range of companies now in the n.h.s. and other public services subsidized by the taxpayer so we have a situation where we have this class of people who are so whose wealth depends on state law jess on the public sector on the taxpayer whilst ordinary people are expected to live with capitalism red in tooth and claw they have to live by the rules of the market sink or swim but the people at the top don't the state will come in to rescue them if they have a hit if they hit the buffet own just domiciled in a planet x. must ring on it as required is legit. all right that's all the time we have for this edition of the kaiser report with me max geyser and stacy herbert i'd like to thank our guest alan jones author journalist and columnist i imagine that at the end of planet a now is a radio show l b c if you like to get in touch tweet us at kaiser report until next time ask either saying.

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anymore i mean it just doesn't happen really. in the course of interrogation why because there's been this is like meant no because the psychological techniques are more effective in obtaining confessions than physical abuse and they were off taking they could get what they wanted they can say what they wanted and there was no evidence of what they did or what they said. he. put it under full arm and a lot of these college face i think you know. a pleasure to have you with us here on t.v. today i'm sure.

tonight the british government goes all out to block revelations all mussed surveillance the paper the first published the snowden leaks says it's being forced to destroy its trove of data i've come in about coming up. scandals continue to unfold around the u.s. national security agency and its surveillance practices we look at how. responsible for making code breaking has become so powerful. to claims he's got evidence that israel was behind the coup in egypt where the resulting chaos is played almost a thousand lives and crippled vital industry. also a human tide of desperation the tens of thousands of kurdish refugees fleeing across the iraqi border as their homes in syria retire.