simply proved too heavy we'll talk to an analyst who called the fall of bear stearns the fall of lehman brothers and now has his eyes set on b. of a and the man who gave b. of a five billion bucks in a vote of confidence is reportedly throwing his support behind us president barack obama warren buffett investor is set to speak at a chicago fundraiser for obama tonight as for the proposed buffett rule its fate is are less certain as the congressional debt reduction supercommittee remains at an impasse but is a deadline nears could the u.s. 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 i

he was the vice president of lehman brothers. wall street started to go under.kers, banking started to go under. so they asked and begged for additional help for the taxpayers. when john kasich, lehman brothers vice president decided between the time he was a congressman and the time he became our governor, he lost a lot of money and he came to the statehouse trying to pretend that that actually did not happen. that lehman brothers did not go under, millions and millions of dollars were lost on wall street and hurt main street. they're trying to move the discussion away from really what's happening. what they've done and destroyed many people's opportunity for the american dream. so many people's opportunity to get health care. they've moved the discussion away from the issues of jobs and they keep bringing up issues about attacking working people. this issue, too, in ohio, is extremely important. taking away the rights of police, firing teachers. that's what they're trying to do. they're moving the subject, moving the issue away from what they have done and the

well unfortunately just like in two thousand and eight just before the failure of lehman brothers about eighty percent of global academics and economists have been dead wrong about this soft patch it's been much more severe than people thought but what's more disturbing is credit default swaps on motty producing countries have been blowing out the last month and that hasn't happened since oh wait so in other words say countries like south africa countries that produce peru chile countries that produce commodities there paul protection on those countries is blowing that tells me this is much more severe than people think ok leo what's going on with operation twist i thought mr bernanke he had you know he has some extra tools at his toolkit there but it's that he has no impact whatsoever or maybe i'm wrong because it seems like the economy is on the downside it's just a question of to what degree. well or how much worse would it be were he not attempting to do that i mean he's in the situation of interest rates already good zero and he's trying to induce a longer term investment in a situ

failure of lehman brothers, and thinking this sounds familiar. as each month passed and as each phase of the financial crisis gave way to a new ominous one than the last, this crisis still moving in the face is now. i began to wonder if i was watching gerald ford's words? in our the 1976 start to play itself out. until that time it had occurred to me that modernization states could go bankrupt. individuals can be declared bankrupt by entire countries? it seemed unfathomable here but there we were, and there they were lined up in a row of dominoes about to fall onto each other. iceland, greece, ireland, portugal, spain and now italy are in trouble. i watched with fascination as financial instability claimed banks and corporations. and then as afford it spoke about in his meeting with zahedi, the social unrest began. there were riots in, governments were ousted in iceland, ireland, portugal and britain. and i remember thinking perhaps i could offer insights that i was in new zealand, recovering from spinal surgery and i thought what could i do, i'l

failed it was th lehman brothers was allowed to succeed. that the business was not more heavily regulated up front. >> rose: well, that's years before. >> but now lehman brothers failed and what do you do? in retrospect the big mistake was thinking that... think of the policy options, three big ones, you let nature take its course the way capitalists claim they want theworld to be a let these places fail. total social economic chaos. can't do that. second is nationalize them. wipe out the shareholders. >> rose: i bet we'll find out that that was a serious consideration in the white house and other places simply bause they want to say l the options are on the table and if you look at all the options, one is nationalization. paul krugman argued for this in his column! >> i think he's right. in retrospect that would have been a better option because you could have restructured the industry and the industry needed restructuring. what they did-- which seemedo be the soft... and i can see why they did it. but was we're going to basically subsidiz

economic sky was falling september 1, 2008. 15 days later, the lehman brothers collapse. we know what happened after that, a total near sky is falling moment. so how -- i guess i would say this, how do you reassure voters that despite all the experience you're running on in the business community, your time on the fed, you missed the housing bubble and you missed the economic collapse? >> well, it's real simple, chuck. i have economic advisers working with me now who spend time studying these various analyses. when i wrote those papers, i was only responding to reports that i like everybody else, was getting through the media. those kind of public reports. >> which turned out to be right, by the way. you were criticizing those reports, but they turned out to be right. >> well, yeah. but what i'm saying, is i'm going to have -- i will have people around me who are going to help me do deeper analyses on some of these things, okay. yeah, i missed some of these things. i'm not perfect. i'm very quick to say i made a mistake or i missed it. but i didn't have sophisticated anal

lehman brothers is the same thing. with lehman, i have read administrative costs or it exceeded $2 billion now. now what is up with? cannot blame the bankruptcy. i think they do a great job. consider all the things they have to put up with. but i think what taxes is because the process takes so long, what i call the real creditors, dig it out and sell pennies on the dollar. and the scavenger funds currently pay anything for it. so it's really litigation takes and it just really creates a quite unpleasant situation and one that does not serve creditors well because it takes so long for the money to be paid out. most of them get out by selling very, very steep discounts. out of this part of this come in the congress to take another look at bankruptcy because it soper track did inexpensive and the treatment is so disruptive i think it's going to be difficult here if they want non-banks, they really need to make some changes to the bankruptcy code. that is something that has not been looked at as much as it should be a i ho

and what i think is really important to think about in this moment is europe makes lehman brothers look like nothing. we're talking about the entire european union, potentially falling part, freezing up the economy and i hate to say this, but a global recession of a much larger order. >> mitchell: we hope that doesn't happen. >> we sure they get to a plan. >> mitchell: jill schlesinger, as always, thank you very much. >> great to be here. >> mitchell: and jump-starting the u.s. economy will again be on the front burner in washington. the senate will soon vote on a $60 billion bill to rebuild aging infrastructure. the democrats second try to pass the president's jobs bill piece by piece. here is nancy cordes. >> reporter: the democrats next attempt aims to spur construction hiring with a $50 billion bill to build and repair u.s. highways, railways and airports. plus another ten billion to create an independent bank designed to attract private investment for infrastructure projects. >> my plan says let's hire construction workers and put them back to work rebuilding roads and bridges and

lehman brothers collapse they're out saying things like this. crazy the words were very close to. worthless kubica failed banks like bank of america worthless insolvent and you remember how much of a mess the banking crisis got the us into back in two thousand a. specially on a friday but now at least you know what a recession is and also many u.s. economists say the u.s. is still headed for one. and still ahead right here on the capital account don't go away he took from the rich and gave to the poor so could robin hood rescue the ninety nine percent i don't know but we will take you to the latest march of occupy wall street and first the closing stock numbers. we just put a picture of me when i was like nine years old i like to tell the truth. i'm a princess and i am a total ghetto friends that i love rap and hip hop music the manuscript. but it was kind of a big yesterday. i'm very proud of the world without you it's a place. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and

we are bound to the situation we had after the fall of lehman brothers. >> in markets around the world, there is a contagion. >> market uncertainty about the resolution of the great situation, the broader resolution of both sovereign debt issues and european banking issues has created an enormous amount of uncertainty and volatility in the financial markets. one of the reasons are recovery has been slower this year is that we faced a lot of financial volatility. some of that is coming from the european situation. >> there is a recognition by a european government that the banks must be strengthened. it is unclear whether they will did not fast enough to prevent a financial crisis becoming an economic recession. >> you are watching meredith kercher -- "newsday." >> 10 years after british troops were deployed to afghanistan, we find out what has changed. >> angelina jolie urges the international community to do more for refugees in the horn of africa. >> archbishop desmond tutu has compared the south african government to the apartheid regime because of its treatment of the dali lama. he

. >> no one can say whether this is going to be as bad as it was with lehman brothers. we are doing everything we can to avoid a repetition of that. >> the meeting also focused on the ongoing sovereign debt crisis. the word was that private creditors, the banks, might be called on to a foot more of the bill. but facing the media, they were keen to give reassurances about the eurozone's future. >> there is no doubt that greece wants to remain in the eurozone. there is absolutely no doubt about it. >> and one piece of good news on tuesday. athens had enough cash to cover its obligations to mid november. >> germany's chancellor has spoken out against a restructuring of sovereign debt. a regional congress for the christian democrat party, she told her listeners that solidarity with struggling nations was the only way out of the crisis. >> i firmly believe that we must solve our problems in europe together that there can only be solidarity for countries in difficulties if the countries do their homework. solidarity is cheaper than going alone and facing the same problems tha

. >> the stakes are very high because if we don't solve the problem, like it was after lehman brothers, it will be worse because we are weakened by the financial crisis and we did not know what would happen when an investment bank went down. we don't know if a sovereign goes down, especially within the monetary union. >> here is the treatment markets are asking for. that relief. new capital to strengthen europe's's banks. and a revamped rescue fund with enough firepower to help governments like italy. some say one trillion, some say double that. progresses' moving slower than that because there are differences that run deep. the germans want to see a bigger reduction in greek that, even if it looks like a formal the fault. the french worry that it will scare the markets and caused some unpleasant losses. the issue causing the most attention is that rescue fund. whether you can make it strong enough without using the european central bank. the german economist understand why germans don't like the idea of a central bank helping government in trouble. only has enough money to stand behin

lehman brothers was exclusively an investment bank and its collapse spark a global crisis. >> in britain, -- soared to a 3- year high. in the increase was due to sharply higher energy prices. the bank of england expects this to ease as the global economy cools off. the average inflation rate is about 3% for the european union. >> thank you. at least four people have died in a suicide bomb attack in mogadishu. the blast occurred near the foreign ministry where two members of the kenyan government had a right to attend a meeting. this came hours after rebels promised a campaign of attacks after canyon troops crossed the border into somalia. -- kenyan troops crossed the border into somalia. nairobi blames al-shabab for a recent rash of kidnappings. nairobi believes that they are being held by al-shabab in somalia. german media reports that the country's defense ministry is planning bigger spending cuts than originally announced. an internal document says that the cuts should be completed by 2017. the ministry is also planning big cuts for spending on military equipment. the air force will g

of global slowdown have combined to create the worst financial climate since the collapse of lehman brothers. germany's leading lender has reported a decline in profit, but did manage to beat forecasts. deutche bank faces huge charges in connection with its u.s. operations. >> josef smiling, but has reason for concern. he has seen hopes for record profits in 2011 slipped through his hands. it has been especially hard in the investment banking sector this year. just one year ago, germany's top bank earned a little over 1 billion euros in the third quarter. in 2011, pretax profit fell to 70 million, a result of the eurozone crisis. the troubling numbers will have an impact on employees. the bank plans to slash 1500 jobs in investment banking next month. the company has picked up in other sectors. growth in retail banking and asset management have helped them offs. there is some relief in greece. the country has already written off f its vestments in greek bonds at losses of 50%, so its exposure is limited at this point. akerman leave the country without record profits, but the bank will likely

people are going to watch this, is this lehman brothers, goldman sachs, what is this?> it was a mashup. i wanted this to be as universal as possible. it's not lehman brothers, you know, that's sort of out there right now, but prafrankly, in m mind, this bank's still in business and still doing what they do. which is the sort of, you know, kind of intense thing about this film. is they were the first ones to see this coming and they got out. >> yeah, zach, what is it that they do. >> what is it they do in the fi film? >> yes. >> they sell everything. they sell everything they possibly can before it is valueless. so they act very scrupulously -- not so much. but the intention of the movie is not to drag people through the coals or -- >> it's not heroes and villains. >> exactly. >> it's about a system. >> exactly. and it's about the impact that system has in the people who participate in it either wittingly or unwittingly. >> and what would you say that is? i agree with your narrative, in that we have a breach of principles that we're suffering in this country. we don't h

but that's the fewest since september 2008, the same month lehman brothers collapsed. meantime, mortgage rates edged lower, keeping borrowing costs close to the lowest level on record as the housing market remains weak. the average rate for a 30-year fixed loan is at 4.1%, according to freddie mac. and delaware is suing the mortgage electronic registration system, also known as "mers." it's an electronic registry of mortgages used by the banking industry. delaware accuses the firm of deceptive practices and wants $10,000 per violation. new york's attorney general has subpoenaed mers, looking for information about how five major mortgage companies are using the system. it was a big day of buying for stocks and commodities, while the dollar and u.s. bonds fell hard. here's tonight's "market focus." earnings, the economy and europe all conspired to push up stock prices. the breadth of the buying was significant. on the new york stock exchange, more than 1,800 stocks are at higher prices tonight compared to last night. only 117 fell today. on the nasdaq, more than 2,000 st