i am max kaiser this is the kaiser report and you know it go all straight up to its

usual bag of tricks that back in 2008 global financial crisis and remember that movie the big short and remember i was obvious that everything was going to blow up and remember how the wall street people were you know conspiring and then it all blew up in a few people make billions and billions of dollars because they cooked the books and they grabbed all that cash and we had cars reports said you know what this exact same thing is going to happen again in 10 to 12 years and guess what here we are 12 years later and they said and it continues to happen the last time in the 2007 to 2008 financial crisis we had cd those collateralized debt obligations and mortgage backed securities and credit default swaps and these things and then lo and behold the global financial system collapsed and lo and behold our central banks that done with a lot of money that is now being dorf by the amount of money being printed for this go round but the bad stuff actually hasn't even happened yet this is what this

article is warning about and it's from frank portnoy who used to was working at morgan stanley at the time of the 2008 financial crisis and he's kind of warning that is going to happen this time but the new c.d.o. is called the c l o the collateralized loan obligation we have actually warned about this in the last few years a few times on the show nomi prins is often tweeting about this and saying this is going to be the big problem so here it comes again right the looming bank collapse not crisis collapse he says the banks are going to collapse the u.s. financial system could be on the cusp of calamity this time we might not be able to save it he goes on to point out that just as easy morgan. fueled economic growth in the 2000 cheap corporate debt has done so in the past decade and many companies have been done that right well you know to come back and talk about some of the concepts and ideas that we reference here on the kaiser report one of them being

that the wall street crimes never go away they're just repackaged and called something different so here the c d a collateralized debt obligation is been replaced with the c l o the collateralized loan obligation as if a loan a sum out different than a debt no in fact they're synonymous but by calling it something slightly different it fools the regulators the regulators are like oh my god what what is a c l o is it anything like a c o i found i can't comprehend it and by the way can you hire me or has funding to pay me $10000000000.00 a year at citadel or some other has fun because i'm a captured regulator and i work for the headphones yes you can so here you have a c l collateralized loan obligations and they are engaging once again in what we call back then and what we can call today as reverse drug dealing

a flashback flash forward what is reverse drug dealing well in drug dealing you start off with the product and then to try to make more money selling a product you mix it in with a lot of bogus products it's expanded you turn $1.00 ounce of product into 20 ounces of product ok on wall street has reversed drug dealing 1st they start off with the bogus product triple b. rated bonds triple c. rated bonds worthless bonds and then to sell those they add in a couple of aaa rated government securities they sprinkle that in then they package it all off. and they sell it as a collateralized loan obligation and some more fraud and it's going to happen with a similar outcome but 203040 times worse so as the clatter lies loan obligations are a bunch of loans packets to gether in various tiers the bottom ones default if the company defaults you lose everything the top tier is supposed to get some of it

back perhaps eventually and in the case of bankruptcy but just like the c.e.o.'s also did that they packaged up a whole bunch of mortgage backed securities these are just loans to companies and importantly about these loans by the c.e.o.'s bundled together so-called leveraged loans the subprime mortgages of the corporate world these are loans made to companies that have maxed out their borrowing in can no longer sell bonds directly to investors or qualify for a traditional bank loan so there are more than one trillion dollars worth of leveraged loans currently outstanding the majority are held in c l o's so so far these are just like the equivalent of the subprime mortgage borrowers but they're there 67 percent of these are rated be so as as he points out that you know you might think be sounds pretty good right it's close to a write well that might not sound bad but b. rated debt is lousy debt according to the rating agencies definition a b. rated borrow his ability to repay a loan is likely to be impaired in adverse business or economic conditions and

other words 2 thirds of those leverage loans are like little lose money in economic conditions like the ones we're presently experiencing according to fetch 15 percent of companies with leverage loans are rated lower still at triple c. or below these borrowers are on the cusp of default and remember jay powell at the fed came forward with 2.3 trillion dollars of march when there was a sell off in these bonds and these c.l.o. and then asked that he would use if necessary $2.00 trillion dollars to buy some of these see. her mind that the reason the these companies can't borrow anymore because there's on be companies. they the interest on the debt already on the books exceeds their profits and 20 percent of the s. and p. 500 qualify as zombie companies and that number is growing every single day and remember back in the 2008 crisis when light blankfein other bankers went to wall street to testify and blankfein said i believe was caught in the testimony where he made a reference in an e-mail saying we sell bags of. like he admitted that they were

selling to their own customers toxic securities with guaranteed losses and then making bets against their customers so once the toxic stuff was discovered by the customer the customer would collapse they were made of bets on the collapse of their customer having sold them the toxic securities right so that was the trifecta of goldman sachs fraud 6 back in 2008 and now it's. the same banks whether j.p. morgan or goldman sachs the new guy mortgages they have a new guy now some new clown running the show right and this is obama the way what's the word that describes this as c.c. clayton powell what's this thing clayton powell i believe over there say clayton j. claim j. clayton here's the word jay it's 5 letters a star so what math are a you can you fill in the missing letter and you fill the missing whether oh that's right you're captured and they pay you to do overlook these things for your job

what do you write that's really great thanks for ruining our economy oh ok vanna white. let me move on to what some of this shows up because all of this debt is supposed to because of the financial crisis of 2007 to 2009 remember there was this dad frank act and they said this is going to prevent another crisis from happening or we're going to make sure that these banks are stable and they're not going to perhaps collapse well the same banks are involved in this story wells fargo citi group they all have these huge massive amounts of these c.l.o. on their books but this. time back in the last time member they created special purpose vehicles as this time you know they just change the word the name and they think somehow it's it's legal right because as you always pointed out banks operates you know they just commit the crime and figure they'll deal with it later if if you know congress could ever come after them well this time they're called

variable interest and titties and i guess they're mostly in the caribbean as well and they're used to hold off book all these positions that are could blow up and destabilize the financial system and one of the concerns right now is the c.l.o. zim you know they're like oh we own the top tranche only so we're going to be fine just like they said back in 2008 that they on these top tranches of the c.d.o. is now they say that we own the top tranche is that these c.l.o. those but there's a thing called default correlation a measure of the likelihood of loans defaulting at the same time of course if the bottom line starts to default and they are because a lot of these c.l.o. zar you know it was used by junk companies buying back their own debt so they haven't invested in the company meaning there's no future enterprise value then there is the factors that they never made money for the past 10 years that they kept piling on and then people got sick of lending to them so they had to go to the c.l.o. market and now we have a situation where he's saying like the here's

a banker a former banker and he's all worried that he said there will be a bank that's going to collapse because we're only at the beginning of this pandemic of the economic crisis that's happening and he said so what happens if a bank collapses and then sometime in the next year he says we will all stare into the financial abyss at that point we will be well beyond the scope of the previous recession and we will have either exhausted the remedies that spared the system last time or found that they won't work this time around what then what then matt cooper. vanna white for a member of the sub prime crisis the theory was that you would never have a housing collapse from coast to coast you know that was the theory and never happened ever in the past and it could never happen theoretically and the standard deviations away from the norm are so great that we're going to take the risk of doing the subprime lending across the coast to coast anyway and put all these packages in some defensive funds were all the toxic risk goes to die as we now and

of course you had a coast to coast collapse and you had some private crisis and yet it balla banks barack obama good job barack of the creditor and not the debtors and they engage in moral hazard by stoking the fires give a bigger credit line to make a bigger fraud and they now they call it something new what they call. well i've used terms a variable interest entity variable interest entity is just the latest in the fraud packaged in a new bottle so that the financial press if you do a search under like all the fraudulent behavior banks that term won't show up because it's just a it's a new it's a nilo jism created by wall street to hide the content put a vinnie here over there rampant arson and so the results are that the off balance sheet debt will simultaneously explode now which bank will be like lehman brothers member dick fuld at lehman brothers during

the 2008 crisis when they audited their books every quarter he would take huge portions of risk and move it around the special purpose vehicles that had special names we found out about it later and this is the latest version of that this is the dick fuld lehman brothers prime repeated. oh as you say are you asleep again this is the exact same thing full grown oh where's my checkbook can i write you a check and you can come entertain my birthday party you mean you're so corrupt your koan down bloody well it's you know the thing as is beyond we've already covered this over the last few episodes the system is corrupt the system is racist the system is sexist the system is corrupt and it favors you know it is like boss yes said it is when a group of men come together become corrupt they create a system that justifies it so we can talk about this all we want about like how corrupt jay powell is and he is like the help because the system is crap the fact that he is the the chairman of the federal reserve means that he is corrupt that is

the nature of the situation so as this guy here in the atlantic asked frank porton i asked what then what's going to happen when they can't rescue the system and we already have told you for the past 10 years here in kaiser report got gold got big claim these are the system we can you could try to fight this all you want but the fact is as we've just showed you it's the exact same set up the exact same thing that took down the global financial system in 2008 they just renamed it like as if like renaming it changes it well that's exactly correct. a exactly as we said would happen except it's going to pretend i'm sure gold is figuring this out as well as setting new highs all over the world when we come back much more coming your way don't go away.

we go to work so you straight home. secrets prisons are not usually what comes to mind when thinking about europe however even the most prosperous can be deceived within the 0 zone there were 2 view houses were allowed to leave those prison was located only cia people had access to the story for investigators she held a uncovered the darkest dealings of the secret services but i mean the not so new

in 5th grade nor been taught or not some years they are still sort of cocky see maybe a sore knee is on the phone. crying for justice on ati. i know to no crowd. no shots no. action and dealt. with drag no arrests were. points your thirst for action. welcome back to the kaiser report imax keyser time now to go to the show rene she is the founder and c.e.o.

of informative services she is the creator of the largest block chain aspire global wealth summit for people of color in the chicago land area michelle welcome to the kaiser report thank you for having me max appreciate it all right well looking forward to this conversation now in 2018 if founded informative services your motto is economic parity through education so a lab arrayed on this tell us about your mission good information to police to get education and i saw a deficiency end there. with anything we make decisions so to have a big impact we must have good information to have options available to us good options and as you may know we're living in uncertain times so my vision is to level the playing field good information at least a good education which impacts us economically and socially some would argue that

the system is rigged and that people of color is even what great information and great education are facing a bit of a rigged system and part of that reg system has to do with the way money is created and distributed because you also get into this very i did you say to succeed we must not only learn the monetary system but also on learn archaic and dangerous methodology so tell us about some of the archaic and dangerous methodology is. and how we see them well as you may know over 2008 financial crisis that we're learning lesson i feel in many areas we checked all the boxes we were productive members of society we invested in one case we did all of these things to be debt and guess what most of us was

on the shore end of the stick well transferred to another entity and it just evaporated and we're still trying to pick up the pieces with that so even just on that level. just having information and doing the status quo has had her tremendous sense just to review in 2008 i know but down in new orleans in particular and also during their hurricane disaster when there was flooding. people of color and in that area who were really victimized by banks to fraud to the lady made loans to them or refinancing on their homes to them and then when it was discovered that the banks had made these fraudulent lungs the government bailed out the banks right so this is the 1st time in history that instead of bailing out the debtors who were the victimized by the

smarmy lenders but impel they bailed out the lenders so once again as you point out there's a huge wealth transfer black mary huge wealth was moved out of that community another really reprehensible chapter in. you know the the the bankers in this country who seem to. you know there's no law they don't want to break but. the what what what's the what's what's the reaction that you get i mean this is his education and information is that is that we're going to be quieter yes i definitely believe it will be the equalizer why this in for a lot of good information is centralized and it doesn't trickle down and if it does trickle down we the people normally don't reap the benefit as

those who are in the know. so interim good information is key and like i said before in 2008 those who knew get out or those who knew knew how to transfer their wealth so they can have more wealth and with if anything we have many problems one on many situation they have can take to the light but the thing is in order to cut or 1 have the impact that i believe that we need yes we do need to make people income and comfortable but yes you have to attack the money supply. and that's when you really see people come into a wellness or are based simply say ok well maybe there is an issue maybe we do need to change some things so a lot of collectively collectively need to be to be handle and need to occur but learning a monetary system getting negative information essential out that we need in order to make decisions we need to have absence not just any action thrown at us

or the has tag black dollars matter so labrat on us a little bit well we are one of the number one consumers so therefore. if things need to change and we need to know if something ngs of course money dollars are power period point point and even even in a lot of my readings and things in n.h. even if history of the federal reserve been all those things and even down to son of some of our historic presidents they believe that a lot of the power that the power remains with those who what manage the money supply so that best the ultimate goal that should be the ultimate goal well one of the ultimate goals some just think i'm you know part of the history that there was a black wall street and told oklahoma this was pretty much dismantled you know

wilmington north carolina had a huge but really black commerce area which led to a coup the only coup in american history now other than all possibility of black commerce was destroyed right so yes you know this is this is a tough go now i don't know if you've read jackson's book bitcoin of black america or heard about this book but it is offering something new on the horizon michel your what's the so what are your thoughts here oh yes definitely it's up to something and that's why i had said jack jackson speak at my global wealth summit. so i definitely had him there because with anything x. let's be honest when a person has a conversation a conversation with another individual normally we're looking for commonality we're looking for something that we can be familiar with and with and even with people of color such as myself. sometimes with the information that's coming from us and by

us and also having an a or really agendas that's going to make a positive impact as a jackson death he has done that in big one in black america and in providing that information and what i'd do is apply his book with my be with. my b.f. he may remember so they can have something tangible that they can we can identify with so definitely yes well i mean it's a remarkable chapter here and history money history of american politics history from american monetary policy and the history of america and race relations now you know i've been watching civil rights movement for you know just about 60 years of my life and it's it's disheartening to a lot of people myself included that there is always that point when there

are the justice is not served and equality never arrives you know when our women when they have a point like to queen which is on confiscate a ball i mean this would seem to be a very big selling point to the black community after having so much wealth stolen you know systematically by the system for a long long long time with pickling be unconscious capable isn't that would that be a major selling point if you get what i mean definitely will be a major selling point because you get if you have the power in your hand and i'm going back to get information least a good education did call it can be amazing but the thing is even in our own traditional system most of us just know how to use the at currency is exchange of good and service not to really get on the other side of well with big oil is definitely provide it's a well tool. but we need to go

a little bit further to understand how big quinn works in a monetary system and how we can you be calling to not just you know maybe easing can be but to to make old us who are wealthy and who are dollars the same time and lastly protect their like in tulsa things occur out well must be protected we just can't just live in our homes and leave the doors wide open and windows windows and then hope no one comes then we have to understand what i understand would become anything but black change technology is how we can you describe bandage and manipulate it eagle so we can be on the other side well and maintain our well endure solid and protect right ro us to you know write about black dollars matter black yet economy is a huge part of the american economy if a it's a black economy were to secede essentially from the american economy and go for

bitcoin i mean this would be a tremendous and dynamic shift in the politics enough it would be a political issue anymore it would be a panic over there at the central bank in washington d.c. because you've got. a challenge to their paper slavery yes there is a challenge yes yes and the thing is understanding how the monetary system works getting good information at least a good education teaching our children because our school system is deficient in that and people still say well how do we help how do we help people in poverty a lot of money have been thrown into a community that i grew up in under certain units and it seems as though the impact hasn't been there because and went to my experience we need to do information to keep going on and proceeding to have good well and knowledge. so we can throw

money at staying in reference to other star communities but it all goes back to get information if you have. and what we have also done is we have developing a curriculum so it can be implemented it into our high schools and colleges because again max you know that this is good information reference in a monetary system how it works is not being implemented in our school systems and i believe it strategically done for reason to keep us at a certain level so we can depend on the m.b.a. gives us back if we don't it used the correct way and understanding that in order for big points of being a possess you need to have you know have you see phrases and as you may know banks are getting into this is and so do we want them custody in our because or not saying not to because you don't but understand if there are options that's one

option but we also have another option will we can hold it. right exactly and so anyway we're out of time so i got a psycho bob michel renai thanks so much for being on the kaiser report i appreciate you and i hope to see you again mr kaiser found absolutely have a on one yourselves happy to drop by to talk because i'm all right and that's going to do it for this edition of the kaiser report with may max kaiser and stacy herbert want to thank our guest michelle renee over there informative services if you want to catch us on twitter it's kaiser report the next time. nuclear power plants of become a battleground in the u.s. in the moment people are demanding the shut down of a local plant. yankee is right now my focus because it's

a very dangerous oh no clare power plant the owner is attempting to run the reactor beyond its operational limit this case just sort of puts a magnifying glass on where's the power in this country where's it going is it moving more towards corporate interests or is it more in the idea of a traditional just. power lie with the people this case demonstrates that struggle in very real ways a struggle. the world is driven by shaped by one person.

the day or thinks. we dare to ask. runs his much anticipated tracing app is used to send just 14 of the 3 weeks that is half a 1000000 people delete it from their phones we search the streets of paris to find somebody in choosing. that's no no no no no no we took the 5th america's reputation in europe meanwhile he's dealt a big blow by its handling of the coronavirus and pulp suggest just the us hits an all time high of cases talking up $40000.00 on 1st day alone found more companies join a boycott of facebook for its failure to remove hate speech and its reluctance to take down some of donald trump small controversy.