set on fire your yacht has been burnt to a crisp and you know you've just been discovered to have herpes and will be like well how does this affect my property. my house go up in value that's all i think about yes and if you ever have lived in los angeles like you and i have separately you know everybody there from your waiter to your doctor to everybody has a pitch they're selling they're selling some script they have some script they're working on some so i went into the three towns a one industry town the entire year living there separately by evidence operated we had met yet you were living in different time periods online was different time periods like a different era i was living there in the one nine hundred century we're living there and twentieth so let's turn to this headline here about the united kingdom because you know over the past week they did raise interest rates two point five percent from point two five percent interest rate rise to cause some pain says bank deputy the rise in u.k. interest rates will cause some pain for homeowners but should be kept in contact the bank of england deputy governor has said ben broadbent told the b.b.c.

that the rise announced last thursday was moderate and that interest payments on debt were still at record lows this is the. more interesting stuff is what comes in the context of the content of these stories because first of all they highlight that it's the first rate hike in ten years which is remarkable right it also says that only four million households. in the united kingdom face higher mortgage interest rates because it's only actually thirty percent of households have a mortgage on their property most people have that they own their property outright in the united kingdom after decades of living in it well the e.c.b. is not going to help. bail out these banks because they did albrecht's a thing so the e.c.b. is going to thumb their nose at mark carney bank of england and the u.k. and say you deal with the inflation that you now inherited because you're so

frickin stupid to vote out of the biggest trade bloc in the world and try to go it alone even though that sixteen percent of your g.d.p. depends on trade with e.u. versus like seven percent versus the u.k. they went to a gun fight now with a knife with a wet noodle i mean they got more went noodles and harvey weinstein a car wash and they are trying to get these interest rate policy sorted they'll never get the interest rate policies or because they kept a low they gauge of financial repression to keep barclays it just b.c. lloyds r.b.s. four insolvent banks four insolvent banks keep them from declaring insolvency because we're aristocrats and we don't cue to the law we don't need to participate in society because margaret thatcher so there is no society so we're for big banks in the u.k. and we don't have to obey the law and even though we're sitting on hundreds of billions of pounds of able to we just got the money from mark carney in the bank of

england who would like the free money and now they went breaks it and the e.u. will be like i did and now they're going to have to declare insolvency they're going to need i.m.f. money within five years in the u.k. i predict i predict within five years they're going to bail out because they're so stupid they've got a little a little georgie guy i am cured you. make him the chairman of the bank of england and you have the same results as having some dirtbag like mark carney. ok so they were markable things i'm going to talk to you about this was the first interest rate rise in ten years so ten years they khana me is still just struggling ten years they need the free money on top of this article from the b.b.c. points out savers will see a modest lift and their returns although barclays h.s.b.c. lloyds and lloyds are yet to announce they will pass the full rise i want to sell greece or face yeah there's a jimmy savile

a bank ok ok ok. ok so i was on pedophilia glory but that's just the truth so let's move on to the next headline because this is the headline so there they haven't announced whether or not they'll pass on the full rights to their customers we know of course they won't have to hear on the kaiser report that what matters most to the stability of the financial system is the rate of increase of debt in the household sector yes so this is an article from the guardian just a few days before interest rate cuts rise surgeon u.k. consumer borrowing fuels likely interest rate rise the pace of annual consentual bank as borrowing in credit cards overdrafts and unsecured when the annual growth rate of. almost zero tell them the truth thanks. alan thanks for. putting. her

thanks it hurt thank you. thank you thank you. get. the end. seemed wrong. but all just told. me to get to shape out just because the ticket and in detroit equals betrayal.

when so many find themselves worlds apart we choose to look for common ground. and it was going on in kim's only. does she don't think the single gel you've been talking to the whole jellyfish deal in the stand up on the person in that equal distances wasn't what it was this tells me. this would all be done to tell him to live with you without devotional putting in as a sign this is

a downside acid of all to the sitting on. the. welcome back to the kaiser report imax guys are time now to return to our guest if column is a professor at cornell university who writes

a yearly your review of pick prosperity in zero heads will get to that the moment they welcome back. thanks for having me back for a second segment they leave me at the curb their hot well dave we were chatting you have an interesting resume if combined you're interested in science organic chemistry or hard science you're also well known for your observations in the economics failed something of a soft science like psychology or sociology so my first question has to do when these two worlds collide for example going back to the long term capital management crisis you had a bunch of kwan's you know mathematicians of smart guys who took a very hard science approach to money matters right that they had figured out risk and they were absolutely going to beat the risks you know and they went to deliver these outsized returns and then of course they blew up spectacularly

because they didn't understand the psychology of markets it's not a fair to leverage it up so much they became the market at some level and same thing happened with the you know if you remember the old janice tax funds where they were owning you know thirty percent of. all they could liquidate their positions if they wanted to and so actually i think this year the topic is your is to talk about indexing is now become an example and have very little downside because the stories coming out of guys like jesse for growth companies that's not a bad price. what do management points out what others have pointed out is that the way they get to an average of twenty three is they take any stock above forty and they round it down to forty any any stock with an earnings. that are negative. around forty and then bragman does this great math reeses if you take the whole market cap and all the earnings of the triple q. you get at eighty seven which means which means that you're being lied to so

that's a pretty bad you ation if you use various tobin's q and you know market to g.d.p. the price of g.d.p. is a point that were approximately two fold over ballyhooed in my opinion and if we regress to the mean that will cause damage that will destroy pensions and all the strong retirements if we were rushed through the mean which my understanding him asset is you've got to spend half your time below the mean it'll be it'll be a come to jesus moment firm most investors refresh my memory triple kill again is that's the end of the tech in next hundred hundred big tech stocks and the p.s. reported by the parent company whose name escapes me right now but but so they basically commit what looks like from a physical science perspective was fraud they're just making it up as they go once again dave we have a problem with the federal reserve bank that is allowing corp the so borrow at virtually no money whatsoever and make this is acquisitions or buy back their own

stock and boost earnings artificially a practice i used to be illegal for obvious reasons that's now been legal say and the mergers and acquisitions are a bit out of control so a company like amazon can buy a whole thing and it's a creative cost as zero for funds a zero it goes immediately to the bottom line they pay the market cap of the company goes up more than the acquisition price so you've got this inversion of the capitalist tenants where the risk seems to be borne by entirely by one segment of society and then you've got folks like jeff bezos is it has no exposure to risk whatsoever is printing money essentially at this point and becoming an out of control old gaap list your thoughts. well you know for those like trivia it turns out the share buyback for enable dramatically back by a decision made in eighty four that excluded buybacks from a rule and said you're not allowed to manipulate it by the creditors and some point

the creditors on the whole company and they're in the it's a basically a financial engineering to make everything look good the to keep your job as a c.e.o. and so. this will come to an end right earnings are actually going down when you step out the effects of share repurchases so those p. e. ratios are wildly understated so now dave you've. that was not necessarily a great timing on that what's that what's occurred feeling. my current feeling is that people who are pessimistic near the end of a market cycle look like idiots and ned the closer you get to the end the harder it is on those who are passing us. i absolutely passed this to and in zero nine was warranted if if if if you look at the valuations and no nine we regress to but not

through the mean and that's thanks to an estimated twenty to thirty trillion dollars of backstop by central banks that i've asked many many smart people did anyone predict that level of intervention a lot of people predicted the crisis no one saw that level of intervention coming and so right now i think we bears will be cat called to the point and sanity until a war right now and then ironically once we're right it will be so much blood on the street that. they be able to get between twenty and thirty trillion dollars held offshore not being taxed. and for this reason you have all and it's all coming out the scandals of the paradise papers the panama papers so in other words how can we reap the inflation growth employment when two times america's g.d.p. in these spectacular games again on tax day. well you know if you look at america

if you call it america's g.d.p. the question i would ask is then if it is a an american donna sly old company american based company i would argue that the nationals are not available to the end of it that are making a mockery of it which is why trans president right everyone said screw it. i'm going against the system it was a bipartisan throw the bums out moment for electing trying right now to talk about trump and talk about the fed looks like he'll be in a position to appoint up to five f o m c such a banking member soon how do you see that playing out we've got about twenty seconds you'll blow in what way will you know bill will put a bunch of money printers in the. oh ok so stout jones forty thousand and list all right dave thanks so much for being on the kaiser report. thank you all. all right well that's going to do it for this edition of the cause report with me

max kaiser states everybody's like our guest dave hall is a professor at cornell he's got great videos on you tube check them out if you want to catch us on. it too of ourselves us guys report and bio. about your sudden passing i've only just learned you were yourself and taken your last wrong turn. to us we all knew it would i tell you i'm sorry i could so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each day. but then my feeling started to change you talked about more like it was again still some are fond of you those that didn't like to question are are. there secretly

promised to never be like it's one does not leave a funeral the same as one enters the mind it's consumed with this one to. speak to us there are no other takers. lamed that mainstream media has met its maker.

according to the department of justice r t the channel you're watching now is an agent of before and even hostile power all the while the d.o.j. refuses to explain why this is the case critics warn r.t. is a test case for a wider campaign of media suppression. a play for many clubs over the years so i know the game inside. the ball isn't only about what happens on the pitch for the final school it's about the passion for spending student twenty million. it's an experience like nothing else i want to because i want to share what i think what i know about the beautiful game great so

well with. the base this minute. i'm not. public but. i. know. she is forced to register as a foreign agent in america under pressure from the u.s. justice department we take a look at what this means for the.