hello there i marinate and this is boom bust here are some of the stories we're tracking for you today. thirteen billion dollars that's the latest proposed settlement between j.p. morgan and the justice department to settle mortgage fraud claims criminal fines however they are still on the table so when we stack up j.p. morgan's recent losses and compare them with their two thousand a bailout we don't find much from mr diamond to be crying about no we do not and it's billed as the facebook of wall street i talked to the founder of some zero to see who likes his latest social media for a in the investment world and finally is the u.s. finally on the verge of energy independence america to use as a surprising answer in light of a recent report and let's get this show. has

some prime contagion more into a full fledged financial panic j.p. morgan snapped up bear stearns in march two thousand and eight then washington mutual later about september these were characterized by some as sweetheart deals at the time but jamie diamond it now has buyer's remorse that's partially because of the thirteen billion dollars settlement with the justice department over toxic mortgages issued from two thousand and five to two thousand and seven now the former former goldman sachs c.e.o. and treasury secretary hank paulson was recently interviewed by andrew ross sorkin about the bear stearns acquisition and whether the government. cover future losses

this is what he had to say. put it off that i'm a dick and damn if acacia. and jamie knew that at the time all i've got to say is this. who knows what all of their motives were how much they wanted to do what how much they didn't want to do it no one wants to make an acquisition under those circumstances that quickly all i can talk to. yet the deal was done and here we are and by we i'm including mr bob in english hello there thanks for including me now now when j.p. morgan they took over bear and subsequently there after you know what their motives were and there was some profit. no of course not of course not no it did actually get quite a bit of financial help from the government in taking over these these companies can you detail this for us sure to look at the big picture let's look at the smaller picture first because some of these losses and we have a graph here of this and these are the most traded most recent losses in terms of fines and fees we see the independent foreclosure review just approaching two

billion dollars we have the london whale fines just completed last week by the sea of one point two billion dollars the london whale trading loss itself of six point two billion dollars and then we have this most recent thirteen billion dollars settlement which doris all of them but then according to j.p. morgan's most recent ten q. filing were actually announcement earning their earnings announcement they have set aside an additional fifteen point seven billion dollars to cover future losses and like you said there are criminal charges remain pending here you know to put things in perspective we have a graph of actual bailouts during the crisis here and we have the same lines as before to put everything in perspective tarp twenty five billion dollars and then we have maiden lane loans that's twenty eight billion dollars that's regarding various sterns another forty billion dollars from the f.b.i. see finally from the federal reserve itself sixty eight billion dollars in september of two thousand and eight having it all together j.p.

morgan got at peak lending periods over one hundred sixty billion dollars from these various government agencies wow hundred sixty billion and i mean that's just tremendous so there's you know if you're looking for a motive. now it seems as though jamie dimon still seems to be operating under the assumption that he won't have to answer for bear stearns missteps when it comes to toxic mortgages on there who would have thought here's what he had to say in the most. earnings announcement for his company. we did ask the f.c.c. would they please agree not to take enforcement actions against j.p. morgan for things that happened at bear which of course they couldn't do outright but they did say they take into consideration the circumstances in which the transaction took place now bob what do you think about this i think what they were getting was a wink and a message that yes the f.c.c. is going to play ball everybody at the time love j.p. morgan diamond was going to the white house he was having dinner with the new york fed president he was beloved he was seen as the leader of the fortress balance

sheet that nobody else really had at the time so yes i think he was given under the table wink in understanding that yes we're not going to go after you but of course things turned don't they we didn't think we'd have five years observe and i'm sure jamie dimon didn't think he would be answering for bear stearns and washington mutual losses but hey fair is fair fair is fair is now shifting gears a little bit but still keeping with the same j.p. morgan theme the banks just sold its one chase manhattan plaza to the investment arm of china's biggest industrial group now the price tag was seven hundred twenty five million dollars it's quite a bit but what's more interesting is what's in the basement and that right bob thanks to zero hedge for doing most of the heavy digging here this is the vault in the but in the in the basement here is five stories deep and it is imbedded in the bedrock of manhattan with steel rods why would they do that because well guess what if there is a nuclear bomb that goes off in the bay it could send

a shockwave that would send this vault bursting to the surface they don't want that to happen that's how protected this vault is simply amazing and it's simply amazing and it makes you wonder what could be inside well we know from a filing with the chicago mercantile exchange which was supposed to be confidential about at least part of this vaults is housing gold silver and other metals bob can you draw any conclusions from this i mean sure we we can. point to a couple of facts here and let the readers draw their own conclusions yes this filing was done with the comics now owned by the c m e group and what that basically does is all these futures contracts on gold and silver and copper they have actual metal behind them or they used to. so this metal would be housed in vaults and j.p. morgan had to do a filing and give the specifications of this vault the very vault that was just sold to this chinese investment group so this is interesting i would put out there that when j.p. morgan bought various sterns and yes i'm going to go back there the inherited the

largest silver short position on the market and some have speculated that there is a degree of shenanigans that will involve that we're involved with that as well but like i said we'll let the viewers use their own imagination on this for their imagination of shenanigans and then again well there you have it and moving right along now to our very first interview of the day. now it's been described as facebook for investors some zero dot com aims to connect by side analysts in an effort to exchange investment ideas to be on the run for a c.e.o. and co-founder of some zero joins me now live from our new york studio to discuss a their debut idea and higher now i can you briefly tell us other than what i've just described as a. place for by side analysts to go on exchange information what is some zero.

yeah i thought your summary was actually quite good before some zero if you want to research it and as you know an investor you have to go to wall street you have to go to you know goldman sachs or j.p. morgan and accessories access essentially what's known as sell side research and we created some zero to really develop an alternative to that which is to say research coming from professional investors who unlike. analysts on the sell side have skin in the game and you know lack some of the conflicts of interest that we think. you know exist with wall street research. did not have to ask you where did the idea for this platform come from. well you know again it was to solve that problem of of wall street research you know you have these analysts that issue recommendations all the time but they don't have any skin in the game so if they're wrong about their recommendations they don't actually lose anything whereas you know professional vester is obviously they're compensated based on the performance of

their investments and before some zero they were never publishing their research and were starting to shed light on that whole pool of research that you know before didn't really exist i guess you kind of touched on it but the next question would obviously be why would analysts want to share their investment ideas in the first place sure that we get this question a lot there are numerous reasons so the entire site is predicated on reciprocity the given get model on our site you have to post research of your own and by doing so you get access to the research of some zeros members for a period of six months and they make it work there is that the bigger the database gets the more compelling it is to contribute to said today if somebody joins you know they apply to some zero and they join their accepted. and if they post there they're gaining access to thousands of pieces of research all at once over that you know for that six month period and then after that period they lose access until they repose so we you know we try to keep the database fresh that way we have other incentives in the in the system as well so one thing we have is

a job will where people can apply for jobs at other funds and the way that works is in addition to submitting a resume what we do is we require members to submit a rather. you know included investment ideas part of their applications about wait employer can evaluate the analysts not just on you know his pedigree but also how he thinks about specific investments and then finally we have. new cap intro platform on some zero where you know really our members are using some zero as a way to promote their own funds. by again leveraging their research so there are a lot of guys i think you know you think of the hedge fund industry as being dominated by you know the pulse of the world some the larger funds but in reality they're actually many many small funds out there that most people have never heard of where the managers are actually quite smart but you know again they have no exposure and we try to help them leverage their research to gain that exposure how

many analysts do you have contributing to some zero today. so we have around nine thousand members some of them you know a good chunk of them post very long form you know very detailed pieces of research we have another type of data based on some zero called the quick idea database which is sort of a database of elevator pitch is. and you know that database alone i think we have around five thousand members contributing to and then we also have actually this may be even more relevant to our t.v. but to your viewers but we also have a newsletter that anyone can access that and there are about thirty four thousand people that are on our newsletter it's called some zero basic that's entirely free and what we do there is we take every week we summarize one of the ideas that was posted that we thought that we thought was interesting and we we featured on our newsletter ok now you said that some zero is a fully transparent community in which users can track and rate performance can you expand upon this a little yeah sure we wanted to create

a platform that was transparent because we wanted all of our members to be accountable for what they say which we think ultimately leads to higher quality content so if you go to other websites for example yahoo finance there's a message boards within yahoo finance but people can hide behind you know fake user names and screen names some zero your name is listed along with your approach with your posting. and everyone has a profile just like you would on say linked in and so people are using the site as a reputation building tools a track record building tool members can read each other's ideas which is you know meant to be kind of a forward looking metric that's also searchable in our site and then we also track returns so when you post an idea let's say you write about netflix you know we know what the price was when you posted the idea we can we can compare that to any user can compare that to your target price and also where it actually trades and so

retailers are something that are entirely searchable as well we got to have you back on the show to continue this thank you so much for joining us but we're running out of time promise you'll come back thanks for having me that was dinner under a c.e.o. and co-founder of some zero dot com. coming up with the help of what marin could to sub the casey research foundation bob explores the future of nuclear power in light of the fukushima daiichi disaster then what's the two big to fail banks with a cafeteria more sterile than its balance sheet ok we're setting the bar a bit lower there but stay tuned to find out it's all coming up.

we're not psyched to active camps long tunnel where patients are or spend the money for a massive first strike never turned the world's attention to the place that something gulag of our times. i've put. aside. i think corporation mind to. do and the bank. all the money and i'm actually sick for a politician write the laws and read the tax break. out. there just to flood threat is a side. up. british. market

. has come to. find out what's really happening to the global economy with mike's concert for a no holds barred look at the global financial headlines kaiser reports. mission. critical three. four charges three. three. three stooges free. download free broadcast quality video for your media projects free media. cries for energy independence are nothing new each president over the past forty

years has made a plea for it here's richard nixon during his one thousand nine hundred seventy four state of the union address. he will break the back of the energy price we will lay the foundation for our future capacity to meet america's energy needs from america's own resource. recently the international energy agency estimated that non opec oil producers such as the us canada and kazakhstan will add to supplies by the most since the one nine hundred seventy s. but it seems every source of energy brings its own sort of baggage whether it's nuclear energy natural gas fracking or even petroleum earlier i spoke with. chief energy investment strategist at casey research and i first asked him about his outlook on your rainy and nuclear power. really in one thousand nine hundred eighty america produced over thirty five million pounds a year rain they were back then the world's largest consumer of uranium today

america is still the largest consumer of uranium in the world but they produce about three and a half million pounds of uranium that's a big difference. because of three mile and because the show noble and because of fukushima the world doesn't like nuclear but the reality is it's part of your baseload energy matrix then you look at what happened to fukushima in two thousand and eleven and japan shut down forty nuclear reactors. which is why they're importing so much alan g. remember fifty percent of all the global alan g. come close to two countries japan and korea that's because they're not using their nuclear energy more shapin can't afford not to go back to nuclear and that's going to cause the big bull market in maybe not this year maybe not next year but when producers can't make the product for what it's selling for you know you're near the bottom interesting supposition there and the united states are is united states going to be exporting liquefied natural gas l. and g.

. is that process underway right now given the new discoveries that we've seen sure it has started so the americans have started towards the process but i want to remind people a few things in the early seventy's america banned exports of crude oil unless you got a special exemption for the government certain areas in canada and that so just ten years ago every banker and analyst was talking about how america is going to bring seventy percent of their energy is going to be imported and they were to become a major importer of oil and now they're talking about becoming a major exporter so a few problems with that you're competing with australia which has massive resources and is about five years ahead of the americans you're also competing to the russians who have massive resources and are about five years ahead you're also competing with qatar who have massive the largest elegy terminal in the world as a guitar so america's a bit behind the eight ball so for them to become a major global player they have to start getting their act together what i think is

going to happen is just like in any potential endeavor it's not going to be as prevailing as we expect i think mexico's going to become probably the biggest importer of us natural gas interesting and given all this supply is it possible that will happen over and can. gas prices go lower from here and will they remain at suppressed levels i think you know what natural gas has been the. as a whole these companies have been so successful that they're the victims of their own success and yes it can go a lot lower because when you produce these shale if you get gas with gas means you get some of these. methanol ethanol you get propane you get all these different butane with it so you get these liquid rich and natural gas liquids and that's what is commonly called versus the side product so yes natural gas can go lower depending on the weather season so what needs to happen to create a baseline is if gas goes too high the the utilities will switch back to coal so

there's a competition now between coal and gas so what the gas sector is really trying to push is like what t. boone pickens plan of creating more c. and g. vehicles to take that overhang and there will be compressed natural gas correct and what you see the future in the energy sector at least that you cover in the next five to ten years i think one of the biggest compelling arguments that i see that nobody is talking about is america has been very successful on using unconventional technologies whereas five years ago they were producing five and a half million barrels that at the end of next year they're going to be around just under eight million barrels so the dependence of america on foreign oil in the middle east is the. because of america's foreign geopolitics agenda the benefactor was a europe of the middle u.s. military so inadvertently america and americans have been subsidizing europeans

energy imports because the big americans would go protect the oil fields so who's at the biggest risk right now if there's more political instability in the middle east is the europeans twenty five percent that was a cheap energy investment strategist at casey research now let's get to today's big deal. you're a big deal. also big deal they machines they can pretty much do anything from drive a car to bomb a country to win it jeopardy and now machines can help businesses predict their next store employee a handful of tech companies are developing video game software and online questionnaires to measure one's ability while on the job this is all these patterns of how a company's best performers responded to they are assessments the software than

estimates a new candidates ability to handle the job as well and it works from everything from staffing an assembly line in a factory to hiring a best new analyst at a bank bob and i now discuss being hired by r two d two and how this may affect your next job really is here as we can get a little. software for hiring the host. they've only ever only know the technology it's only sparking a reaction good and bad on both sides positive negative how do you feel about it bob what do you think are pretty positive in all this yeah i think it's just it's inevitable that computers are creeping into our lives and more look more ways than perhaps we'd like to and given moore's law that's the one nine hundred seventy s. era law that says computer speeds and processing power roughly doubles every eighteen months it's only inevitable that people will be modeling other people's brains in the future. will be obsolete. that's what we've got to milk this what we can here that you know you know you've got to you've got to question the fact it's

impossible to truly replace the interview process no that's in the present time yes in the present or in but eighteen months things can change that's every eighteen months. so just wait two years and you know we'll all be in a different place you know it you know you know you might want to say do you think this technology is a better judge of things like one's educational background which has a lot more to do when. not all the time but sometimes with your socioeconomic place in the world opposed you know your ability at the job should that be weighed as much you might see the yellow headline and get excited when this person might not be the best candidate and it seems like this technology now there are a number of interesting dynamics or i think when you you when you model a lot of data when you have that at your disposal you come to know and intuitive conclusions and a lot of people who have been in the hiring industry for a long time they probably have very good instincts and they have their own intuition they maybe can't put it on paper but they can instantly tell when certain people are just not qualified for the job in similar ways yes i think there is

probably some bias in the hiring process but what we're seeing with this technology and so far i don't think it's used for top level people it's mainly on the hour release scale but i think we're helping people discover new insights into human personalities that can be judged over a very short length of time and be applied to the hiring decision now given that the symbology it's only been around since two thousand and seven give or take that seems like too small of a sample size from two thousand and seven to today to really say oh this thing is the best get rid of all h.r. managers. it could be the sample size is an admittedly small and some of the tests that these the these prospective employees are given are very short in duration maybe only ten minutes so somebody could be having a bad day they could have been having a great day if somebody is going to be going through a divorce during their period of an employment you know are they going to be the same employee that they were at the beginning things the software is probably not going to be able to figure out and i would add that some of the software predictions by visa and master card just looking at your credit card purchases they

can tell if you're going to get a divorce six to nine months ahead of travel and how can they tell bob how do they know i don't know by looking at flower purchases or lack thereof more purchases of their purchases. big you know about a ruthless efficiency i want to get to this let's talk about goldman sachs. now goldman's cafeteria has been described as something out of a size five film. about a utopian future where quote nothing is ever dirty broken or unintentionally asymmetrical colvin's a love in for lunch time he even has administered a clever policy designed to engineer economically efficient lunch consumption i am not joking it is literally designed that way between the hours of eleven thirty am and one thirty pm lunch is twenty five percent more expensive than any other time during the day people are capital equipment obviously and a company who has an idea like this they obviously don't want folks standing in line at the lunch line for you know their chops sell if they want them back at their desk you think it's brilliant or despicable i think it's par for the course

for goldman it makes sense given their culture i'm sure the employees don't want to be seen standing at the line during these peak peak rates for sandwiches and whatnot you know that goldman sachs is somewhat out of the business now they're in the sandwich stuffing on the eleventh of thirteen million i don't live with. goldman sachs they're in battery park city which is i mean a pretty clinical place to be a better place for a new office building yes no and here we have a map here this is a courtesy the new york times do you think it helps when it comes to capital efficiency being in such a clinical environment i think they're just getting ahead of the trend here there are some other major players that are coming into the area and it's good to see the general area of reviving since the horror that took place over a decade ago now as it turns out goldman folks there especially attuned to economic incentives like you were mentioning before and some goldman employees apparently a pride themselves on never having inside the cost penalty when do you think it was i don't know when you know throwing that out there but apparently it does it's does exist it does and do you think that other companies would be smart to kind of adopt

a similar incentive to keep their keep their employees at their desk oh i think so i mean i'd love to see trading firms do something similar or know that the trading firms they're famous for getting their employees lunch at their desks or on the same floor as the trading so they don't even have to leave their during that critical noon time hour but in terms i mean what would you expect to have fed ex or some other business going into this i don't. i think i think it's an interesting trend and one of the things you don't want as you know goldman sachs employees to ever be known for paying more than you need needed to ever being like out price so it seems like it's it's intelligent to keep people at their desk and intelligent as these guys are these folks are incentive based when it comes to definitely and if it affects their bonus at the end of the year they're not going to pay an extra dollars for a sandwich store in the middle of the week when they could afford to hundreds of thousand dollars of their bottom line at the end of the year or in january but next year heck no but that is all for now however you can see all segments featured in

today's show on you tube at youtube dot com slash boom bust r.t. we also love love hearing from you so please check out our facebook page at facebook dot com slash boom bust our teeth from all of us here a boom bust thank you for watching must see you tomorrow by. old. technology innovation all the developments around russia. the future covered.

we're not psyched to have active camp at guantanamo where patients are forced that this comes after a mouse or strike never turned the world's attention to the place that some gulag of our time. wealthy british style sun. sometimes. markets. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune in to conjure reports .

russia mourns the victims of a suicide bus bombing and attack the took the lives of six people with witnesses describing a scene of carnage there on our t.v. report on the condition from volgograd a city in shock also at least some cases they've clearly killed civilians and some of these cases it will croak i'm going to see international america's drone war in pakistan condemning the regular civilian casualties is nothing short of crimes against humanity. washington falls out with age old ally frauds the historic friendship undermined by the latest n.s.a. spy scandal suggesting that millions of french had their phones topped plus. this.