good evening welcome to the capital account i'm lauren lyster here in washington d.c. now libyan leader moammar gadhafi has reportedly been killed we see the images today of people purportedly celebrating on the streets of tripoli but who may be really celebrating khadafi death from a far this photo should give you a hint and griese continues to burn with the anger of protests on the streets over austerity meanwhile any little rumor of a wrinkle in the plans for an euro zone deal this weekend seems to send markets haywire but is the real solution to the eurozone debt crisis and politically unthinkable one and as u.s. president barack obama is expected to sign three free trade agreements tomorrow as the u.s. solar panel makers plead for tariffs and as regulators go after city group appearing to hold wall street i count a bold are they going after the wrong guy and that has room to act people are reporting but are the fed's policies hurting the economy we ask is government the solution to u.s. economic problems or is it causing them all right let's get to the capital acc

all right good evening and welcome to the capital account i'm lauren lyster here in washington d.c. today police arrested occupy oakland protesters and cleared out as world wide protests continue over the global financial system and the occupy wall street protests began four continents proof for one economist that economic leaders have gotten it all wrong. you heard a man fresh from occupy sydney we'll hear from economist steve keen news coming to us from down under meanwhile u.s. housing is still in the doldrums and consumer confidence there with it home prices in twenty major cities ball more than predicted and consumer confidence slumps to its lowest level since the spring of two thousand and nine when mind you the u.s. was in a recession this as us president barack obama announces efforts to try to revive a sinking program that aims to help underwater mortgage borrowers and in response mortgage bonds plummet to a new six month low meanwhile european finance ministers cancel a meeting on the debt crisis scheduled for tomorrow casting doubt that a grand plan will come to weak u.s.

to the capital account i'm learning the story. all right welcome back so people are writing on the streets again and greece more than one hundred thousand people reportedly took to the streets today to protest new budget cuts take a look at this video. so you can see just how violent it is that i just ran by literally on fire so needless to say it's not just protesting i mean there are people getting hurt out there there are people getting. lit on fire so this is what's going on in the midst of greece trying to pass a budget cuts spain was downgraded two notches moody's is hinting that france's credit rating may be at risk a german bond auction failed europe ban credit default swap trading and hopes that the european union summit this weekend will deliver a plan to tackle the debt crisis and fears of contagion has certainly not been realized yet so it appears the euro zone debt crisis is nowhere near out of the woods and with some of europe's biggest banks on the line the question is could we be heading towards a banking crisis an

all right good afternoon welcome to the capital account i'm lauren lyster here in washington d.c. and today u.s. president barack obama announced all u.s. troops will be out of iraq by the end of the year saying the future of the two countries will move forward in a different way. this will be a strong enduring for sure with our diplomats and civilian advisers who believe will go along to shrink the institutions that are just representative of the trouble to build a new choice of trade for the farmers but if you want to talk trade and commerce which is a more effective way to achieve this war at a cost to taxpayers in iraq eight hundred billion to three trillion dollars depending on estimates and not of course not talking about that incalculable cost of lives or how about checkbook diplomacy which seems to be paying off for some other countries also federal reserve officials are out talking about more bed stimulus aimed at helping the lousy mortgage market the idea is to help struggling americans refinance or buy new homes good who is this really help underwater u.s. taxpayers or

all right let's get to the capital account. all right as i just said today europe is trying to save itself with the overhang of course of a sovereign debt crisis which could cause a banking crisis with contagion that could reach around the world to countries including of course the u.s. where i sit now european union leaders have been meeting today in brussels to try to figure out a solution the costs have already been high we've seen the effects of austerity across europe most evident in greece where we seen protests and strikes as a result which you see right there they've been violent so what are we going to see today are we going to see a grand bargain as mine even possible at this point and what lessons are there for the euro for europe and the u.s. joining me now from athens is yanis varoufakis he is professor of economics at the university of athens and also the author of this book the global going to tar america the true origen's of the financial crisis and the future of the world economy i should also mention he'll be

all right good evening and happy friday welcome to capital account i'm lauren lyster here in washington d.c. according to the united states treasury mars the big day the second anniversary of the u.s. getting out of recession and before you start cheering no we're going to give you five good reasons why there is nothing to celebrate and why the u.s. economy is nowhere near out of the woods protests on the streets are just one example of course and today the occupy wall street movement in new york took its message directly to too big to fail banks and after the bank stocks rallied yesterday on news of europe's debt deal more economists came out today saying this deal may not be enough to prevent a crisis also pressure off europe's deal u.s. president brought go bomb maker lee heading into the g twenty has suddenly saying all right let's please get a firewall now to prevent the crisis from writing he says the u.s. will do its part as an economy touting his jobs plan as key to u.s. road but attempts to pass it have failed so far so with washington really impotent and what does this mean fo

as a credit rating downgrade again i don't know let's get to the capital account. all right as i said european leaders reached a deal in the debt crisis that includes a voluntary haircut for fifty percent for private greek bond holders aiming to avoid of course a greek default it also includes more firepower for the euro zone's bailout fund stocks after the news so ored financial stocks in the u.s. especially so for the u.s. banks exposed to the euro zone does this mean they're in the clear they from contagion i don't know here to help us figure it out though is reggie middleton he's an investor an analyst he called the housing crash he called the collapse of bear stearns and lehman brothers and he has been harping on the crisis in the eurozone banking system for years now and he's how it is eyes on the problems of one u.s. bank in particular in relation to it he also writes it boom bust blog dot com which is very popular and he's here to tell us what he thinks so thanks for being on the show but it's nice to see you again. thank you very much the pleasure seeing g

good afternoon welcome to capital account i'm lauren lyster here in washington d.c. we have been warning on this show of possible american casualties of the eurozone debt crisis and now we have one sometimes in which people don't agree with you all the time. we tell you what's good for you. and the global as securities firm has now filed for bankruptcy after making big bets on european sovereign debt is c.e.o. was reportedly banking on government bailouts for these countries he never thought they'd be allowed to go down we asked how many other people are betting on continued government lifeline and keep in mind when you listen to the news on this story according to the bankruptcy protection c n b c is one of m.f. global's largest unsecured creditors and could stand to lose more than eight hundred forty five thousand dollars and speaking of bailouts the u.s. government is still having trouble unloading its have to investments in bailouts during the financial crisis three years later the u.s. treasury department is still the largest shareholder in ai g. with this seven

all right good evening and welcome to capital account here in washington d.c. i'm more in leicester and tonight european union crisis summits in brussels ended this weekend with the final solution proposed to the eurozone debt crisis to be continued this week a lot of possible outcomes here and with the threat of contagion just grew larger average u.s. investors at risk if european banks fail and did they have the federal reserve to thank for being exposed in the first place also switzerland the biggest haven for offshore wells or is it swiss banks are reportedly likely to pay billions of dollars and hand over the names of thousands of americans who have secret accounts there it's to settle a u.s. probe of overseas tax evasion is the u.s. getting desperate to fill its dwindling coffers just what's going on here and is the u.s. even going after the right people what about the huge corporations that pay zero taxes and you as president barack obama is expected to announce new terms for a program aiming to help struggling homeowners refinance past president though

but if you had in china an open capital account and the freely floating currency godnows what would happen because the financial system is not stable, money could flee the country as much as come into it. and you could see a collapse in the currency as you might see an appreciation of it. so i think china is quite unstable without strong controls and so it's not ju an attempt to get an economic advantage. i think it's a way that... it's one of the element it is communist party uses to manage the economy and then stay in power. >> liu: and then charl's interview with author robin wright. her new book is called "rock the casbah: rage and rebellion across the islamic world." >> i think what we're goi to see is something that confuses us in the west because it has two parts. one is this quest for political participation, accountability we're seeing in the trials, as in the hosni mubarak in egypt, the idea of justice and fairness. but it also has a desire to be islamic and these two things are going to confuse us. it's a different kind of islam. today islam is a means to an end not an end in se

more and asks whose interests are they acting in us so have much more on the on the capital account for now i'm christine for sound. culture is that so much a lot of people have hearing all their little words come to roughly fifteen hundred occupy protests occurring in eighty two countries worldwide this is a global protest movement was staying power to. get off sometimes you see a story and it seems so for life you think you understand it and then you've lived something else you fear see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture. we'll. bring you the latest in science and technology from around russia. we've gone to the future covered. the for.

on twitter at frowsy and be turned in to say it keep it right here on ars the up next in the capital account with more on the search will be delving into everything from how to solve the eurozone debt crisis to why you shouldn't get too excited when you read that people in the u.s. are holding wall street accountable for now and christine for exactly. wealthy british style. sometimes the tireless. markets finance scandal. 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 tune into kinds a report on r g. h.

up next is the capital account with more and we'll start. the official g.o.p. cation your money so you called touch from the. lights on the. video and demand. the money will come. in the registry now with the goal of your. mission is free. education free. storage free arrangement free. free. free. the old free blog video for your media project free media gone to our t.v. dot com. ily ily. ily ily. ily at. union. was.

and that's going to do it for now up next to the capital account with warren lester worldwide protests against global financial system continues and economists say they fail more and will speak to one from down under i want to thank you so much for joining us we will be back in a half hour i'm christine. wealthy british style. that's not on the tireless. market finance. find out what's really happening to the global economy which might scholars or for a no holds barred look at the global financial headlines tune into cars a report on r g. if. the kids leave the. city. to. see. it.

the clear lauren let's talk lauren lyster will dive into all of this and more up next on the capital account and that does it for now for us but for more on the stories we covered go r.t. dot com slash usa check out our you tube page youtube dot com slash r.t. america you can also follow me on twitter i'm at i'm christine freeze out again the capital counters up next and we'll be back after that. more news today violence is once again flared up. these are the images the world seeing from the streets and chatted after. trying to call for a shelter all day.

i know convertibility and capital account reforms and an open -- and a more open financial system aren't popular in china. many in beijing believe these reforms will make china more, not less vulnerable to future crisis, but china can play defense or it can play offense, or if you prefer, china can continue its single-mined focus on it five year plan, slowly unrolling reforms, when it needs reforms today that into give beijing the tools to effectively respond to future crisis. in the fall of 2008, chain had just one tool to deal with a crisis. massive spending to support growth. and while, yes, that helped cushion the impact of the slower expects as global trade shrank, china's response would be years if it hat the full suite of financial poll skis that ultimately requires convertible currency. i realize currency value is a political issue in both countries and it's an important trade issue, too but i have always believed that all to turnery value is a contributor to trade def circuit it's just one. we have a trade deficit with the world. it's a necessary part of reducing the economic di

i know convertibility and capital account reforms and an open -- and a more open financial system aren't popular in china. many in beijing believe these reforms will make china more, not less vulnerable to future crisis, but china can play defense or it can play offense, or if you prefer, china can continue its single-mined focus on it five year plan, slowly unrolling reforms, when it needs reforms today that into give beijing the tools to effectively respond to future crisis. in the fall of 2008, chain had just one tool to deal with a crisis. massive spending to support growth. and while, yes, that helped cushion the impact of the slower expects as global trade shrank, china's response would be years if it hat the full suite of financial poll skis that ultimately requires convertible currency. i realize currency value is a political issue in both countries and it's an important trade issue, too but i have always believed that all to turnery value is a contributor to trade def circuit it's just one. we have a trade deficit with the world. it's a necessary part of reducing the economic di

with lauren live third tell us a little bit about that so you know the show is called capital account with a long list or i'm producing the show hosting it and. it's basically finest economic show we have some light hearted fun stuff as well as some really great guest coming out in our first few weeks so really excited about it worked out for the past few weeks and i think people should definitely in grade one is the kick up they got is the one thing you know a program next wednesday four thirty should be air shows like the show airs live all right something to look forward to all that was a blogger and r t contributor and you could help it us. and stay with us up next we'll show you more of just how bad things are in the e.u. this time a look at how people's basic ingredients are being taken away. new website which twenty four seven wives three news tells us what to do about the ongoing financial hardship unlimited free high quality videos for download. and stories you never find news. of the political. question more on our team lunch today. europe's social welfare programs which has

at wall street for a reason because we are what we want to hold big bad banks and financial capital accountable for what they've done to our country and what they've done to our world and just you know in the united states the inequality gap is one of the highest in the entire industrialized world and it's banned exasperated since the financial crisis and what we've seen with people losing their homes and their jobs and what these c.e.o.'s getting these huge bonuses these corporations corporations make a. record profits and this huge bailout is a massive transfer of wealth from the middle class and the port directly to the top one percent of people we don't feel we live in a democracy that we can participate anymore and so that's why people are out there on wall street operating in a democratic way to try to create some sort of alternative on a small scale and hopefully we can build and grow from there most of us all the people the do agree with you around the world the do listen to what you're going to say but of course it's white house wall street you really want to get listening to going abo

with lauren lyster tell us a little bit about that so your show is called capital account with lauren lyster i'm producing the show lawrence hosting it and. it's it's basically find its economic show we have some light hearted fun stuff as well as some really great guests coming out in our first few weeks so i'm really excited about it we're working on it for the past few weeks and i think people should definitely going to grade one is because they're here if it isn't one thousand dollars over an extra going today for thirty there should be air shows while the show airs live i read something to look forward to you know well that was at canonical blogger at our a team contributor and we take a look at. all that doesn't for now for more on the stories we covered go to ours you dot com slash usa and check out our youth to page if youtube dot com slash r c america there you can catch my interview with the independent filmmaker oriole divvy he made a short film called i am not moving about the occupy wall street protests and.

up next is the capital account lauren less earth today she'll be talking about europe as europe tries to save itself will u.s. taxpayers end up footing the bill plus there's a really heat up in italy as a fist fight breaks out in parliament that's all new coming up next but for now i'm liz wahl. the. guitar sometimes you see a story and it seems so please give things you understand it and then even something else you hear or see some other part of it and realize everything you thought you knew you don't touch i'm tom hartman welcome to the big picture. world to. bring you the latest in science and technology from around russia. we've done the future coverage.

should also follow me on twitter i'm the but be sure to take a right here on r t up next is the capital account with more or less start and you won't want to miss this special how we bear market lauren will interview peter schiff as well as broke uncle sam is going to be a packed fun show i but for now i am christine. this is nature and discover is buzy. needs to be communicated with the wyoming. test yourself and become free to. see what nature can give you the. wealthy british scientists are. spot on. market why not 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 tune into cars a report on our cheap. download the official and see how to make a show job on the phone called touch from the i choose option. one john c. from my on the go. video on demand the tease mine comes and says feeds now in the palm of your. question. dot com. for. more news today violence is once again fled up the phone these are the images. from the streets of chatter that.

producer jenny churchill and laura mr host of the upcoming show capital accounts here on our teeth a little bit more of a given where we get to the other stories give everyone a quick little you know ok a lot of g ok latino are very hot but launching monday we're going to get a new show at the half hour show it'll air four thirty daily it will be focused on the economy and finance and kind of taking what we do on news but bringing it to its own platform where we can do a little bit more in-depth alternative financial analysis and reporting we're all very much looking forward to it so now let's get into the political world and some of the things that we have out there we have a lot of presidential candidates on today's happy hour in the stupid things they say you do let's start with herman cain. i've written for the gotcha courses and they are already sort of a car where they ask me who is the president of the becky becky because stansted i'm going to say you know i don't know you know i mean i'm going to three hundred that's going to create one job. i just love that i know he was obv

and we've entered a new time at four thirty with a new show called the capital account that we will start on the seventeenth focused on the economy because all the protests may be going on wall street but at the center trust me decisions are made right here so please watch and have a great night. wealthy british scientists are. sometimes slightly. right that. markets find. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune into cars report. the sequel. bringing you the latest in some instance or religion from around the world. we've got the future covered. more news today violence is once again flared up first so these are the images the world has been seeing from the streets of canada asked such corporations to rule today. the official g.o.p. keisha johnson called talk from the. video. on the. on the cars report the war continues and financial war we called it we predicted it and it states are next kaiser yes this financial war is being played out in not only the propaganda being perpetrated by the m

or unless there is up next with capital account. it also gives you a story and it seems so you think you understand it and then you glimpse something else hears you some other part of it and realized everything you thought you knew you don't. target welcome to the big picture.

i know convertibility and capital account reforms and an open -- and a more open financial system aren't popular in china. many in beijing believe these reforms will make china more, not less vulnerable to future crisis, but china can play defense or it can play offense, or if you prefer, china can continue its single-mined focus on it five year plan, slowly unrolling reforms, when it needs reforms today that into give beijing the tools to effectively respond to future crisis. in the fall of 2008, chain had just one tool to deal with a crisis. massive spending to support growth. and while, yes, that helped cushion the impact of the slower expects as global trade shrank, china's response would be years if it hat the full suite of financial poll skis that ultimately requires convertible currency. i realize currency value is a political issue in both countries and it's an important trade issue, too but i have always believed that all to turnery value is a contributor to trade def circuit it's just one. we have a trade deficit with the world. it's a necessary part of reducing the economic di

the fact that you cannot have an open capital account and have an independent monetary policy. latin america has tried to go against the trinity and it has always failed. latin america has many characteristics that are important for dealing with the crisis. the first one is it is the most financially open region among the developing countries. its capital flows come and go and there are some controls in brazil. most of the rest of the country does not have many restrictions. the second one, you cannot issue hard currency. i would like to stress this one. this makes the difference between advanced economies. nothing else makes a difference. at the end of the day, you need internationally traded liquidity. that is the u.s. dollar. when your in this situation and your a bank facing those things and you recognize this is where you are, then you know what you have to do with your system. you want to have flexibility. you do not want to be trapped. the house to an account because you cannot issue hard currency. that is what these countries did. it served them well. at the time of the

. >> heather: lack of regulatory transparency, currency misalignment and closed capital account.ights. they can -- they have no wage standards. there are no unions essentially. they can work workers as long as they want. and they can continue to do that. >> heather: what is happening now? the senate have adopted this currency bill which would address some of the issues that you talked about. >> weç can jawbone. the president can say you've got to raise the currency. they've been very timid about doing this. they want to keep china as a friend in many ways. >> heather: that is also what keeps us giving them aid when they are one of the world's richest countries. >> that's a noel other topic. >> heather: -- thank you brenda. >> gregg: president obama announcing the pull-out of all-american troops from iraq by the end of the year. critics are weighing in, ,pamerica's best interests? new fears about the future of iraq and the influence of iran. the new spark card from capital one. spark miles gives me the most rewards of any small business credit card. spathe spark card me earns dou

lessons is the central banks learned what in economics is called -- the fact that you can -- open capital account, had independent monetary policy. in the past latin america have tried hardly to go is important and it always fail. latin america has to correct, has many of course, but two very important for dealing with crisis. the first one is the most financially open region among developing countries in the world. okay? it capital flows come and go, and some restrictions a some capital controls in brazil but they are little. most of the rest of the countries, of the latin countries don't have the many restrictions. so very financially open. and the second one, cannot issue hard currency. i would like to stress this one very much because this is what makes difference between american market and develop, advance economy. nothing else make a difference. the fact is at the end of the day, when you need liquidity you need internationally traded liquidity and that is called these days u.s. dollars. okay, so when you're in this situation and you're a central bank facing those two things, you finally r

intellectual prproperty rights, capital account that is controlled to that manipulation of the raw export materials. all those are barriers that have a much greater impact on our trade deficit. my concern is this will be counterproductive and it will not be productive and will make it harderto tear down the broader range of trade barriers. i am pleased that speaker boehner made the point that we need to look at china in a broader relationship. he is exactly right. host: potomac, maryland, this is -- tell me your name please? potomac? caller: mary. i was going to make a comment about the congressman said about taxing the entrepreneurs. that is not what -- host: you still there? finish your thought. caller: i am calling to say that mr. obama is not asking to taxi entrepreneurs, who are creatin jobs. but individuals who are making easy money on wall street, by influence and people like hedge fund managers. there are lots who are making over $1 million who are not creating any jobs. they are making personal gains and wondering whetr to buy a bigger boat or a small boat, and those people to fl

intellectual prproperty rights, capital account that is controlled to that manipulation of the raw export materials. all of those are barriers that have a much greater impact on our trade deficit. my concern is this will be counterproductive and it will not be productive and will make it harder to tear down the broader range of trade barriers. i am pleased that speaker boehner made the point that we need to look at china in a broader relationship. he is exactly right. host: potomac, maryland, this is -- tell me your name please? potomac? caller: mary. i was going to make a comment about the congressman said about taxing the entrepreneurs. that is not what -- host: you still there? finish your thought. caller: i am calling to say that mr. obama is not asking to taxi entrepreneurs, who are creating jobs. but individuals who are making easy money on wall street, by influence and people like hedge fund managers. there are lots who are making over $1 million who are not creating any jobs. they are making personal gains and wondering whether to buy a bigger boat or a small boat, and those peopl

long-term funding of banks while also requiring banks to hold a significantly higher capital ratio after taking account of sovereign debt. the commission will continue to work hand in hand with european banking authority, the e.c.b., and they will implement these measures to a fully coordinated approach at european union level. i am also pleased that italy has given its strong commitment for the sake to further the reforms. this is confirmed not only in a letter that the president of the counts council of minister of italy sent to the president and myself, but also in the very clear conclusion endorsed by all heads of state and government of euro area. it is now imperative that italy implement its commitments fully and according to a clear time table. the commission is interested in the responsibility to monitor these efforts. honorable members, this is where we stand on the most urgent issues. i believe the decisions gives us a solid platform from which to continue our work. i'm also pleased that the summit conclusions highlight the role of the community matters and of the commission in economic gover

number of trade barriers we fates in -- we face in china from theft of int property rights, closed capital account and rare export materials, on and on, choosing of national champions, on and on. if congress is to tackle our trade deficit with china, isn't it more important that we look at the whole range of trade barriers that restrict our sales into that growing market? >> on our currency, congressman, the dollar is about the same place it was in the summer of 2008. it's going up and down with flows of flight to safety. but not -- hasn't really been on a trend. on your question, absolutely. i've been involved in the strategic and economic dialogue since its inception and we talk every time with the chinese about all these issues and i think continued pressure discussion with them about these trade barriers and these related issues i think is very important. very constructive. >> thank you, chairman. >> thank you vice chair brady and, senator sanders. >> thank you, mr. chairman. mr. chairman, as you know, there are people demonstrating against wall street in new york city and other cities around

would trigger the conversion of the debt automatically to equity and automatically refill the capital account and having that already issued in place would be a way of handling the problem in a countercyclical fashion without having to go to the market at a critical point in time when you can't solve stuff. >> back there? >> i would like to ask charlie a follow-up question. when you are talking about augmenting capital, the assumption behind that is the model, business model for the banking industry and use that capital effectively, if on the other hand the model has been so badly broken that any capital that is raised is going to be destroyed in the process of what banks do, that is not going to work. so i am asking what the you thought about that and the sort of benchmark might be the maiden speech, when gene ludwig gained control of the currency he said that the banking industry has been in secular decline since the end of world war ii and then said we can't allow the natural erosion of this industry to proceed. that would set the stage for the intervention we have seen the last 30 years.

account. that's not capitalism. t wasn't guaranteeing bank accounts, banks would be a lot more responsible because the depositors would care what the banks did with their money but the government told the depositors not to care. it doesn't matter because the government bails you out. >> professor? >> no. no, no, no. we need guarantees because the level of insecurity in uncertainty was so pervasive in the 1930s that you could not get a financial system off the ground. so you had to -- >> that's not true. that's not true. that's just not true. >> it was going on in the 1920s. didn't require some kind of government intervention to allow some stability? are you denying that? >> no. it was -- >> are you denying that? >> it was the federal reserve -- i'm denying that. it was too loose and had a stock market bubble in the 1920s. we had a depression because roosevelt and hoover didn't let the free market work. they tried to prop everything up artificially. they interfered with the free market. we didn't get out of the depres

the european top regulator is asking that banks keep capital from 9%-10% of their lending. taking account for a fall in markets, loans to highly indebted countries like greece, italy, spain, portugal, and ireland. that should give the banks and of capital to absorb losses in the event that they cannot pay back what they owe. it would mean that banks across the eurozone will probably have to raise 200 billion euros from investors and from taxpayers. about time, says a former chancellor, who funneled lots of british pounds in two u.k. banks. >> we recapitalize them and now they are in a stronger position than some of their counterparts. we did was necessary and we did it decisively. that is what europe should have done long before now. >> banks are resisting the plan to force them to build their reserves and there is a warning that raising capital, they might hit the targets by lending less. >> the preference for banks right now is not to go raise capital. doing this is expensive. we should have earnings in the real economy. >> slovakia became the last country to sanction more resources for

account. that's not capitalism. wasn't guaranteeing bank accounts, banks would be a lot more responsible, because the depositors would actually care what the banks did with their money. but the government has told the depositors not to care. it doesn't matter what the banks do, because the government's going to bail you out. >> professor? >> no, no, no. we need a governmental guarantee, because the level of insecurity and uncertainty was so pervasive in the 1930s that you could not get a financial system off the ground. so you had to have some -- >> that's not true. >> you had to have some basis -- >> that's just not true. >> the free marketeering that was going on in the 1920s didn't require some kind of government intervention to allow some stability? are you denying that? >> no! >> are you denying that? >> no, it was the federal reserve -- yeah, i am denying that. it was the federal reserve in the 1920s that was too loose. that's why we had a stock market bubble in the 1920s. we had a depression because roosevelt