> narrator: what is life really like for bernie madoff behind bars? >> every time i saw him, he had a smile on his face, you know?

they're worried about the similarity is this, bernie madoff was flagged to regulators, they looked at, he was somebody that was around for a long time, because he was around for a long time they did not properly evaluate it. liz: we talked about this. charlie: herbalife as we found out, they did donate to the democratic ag association. the reason you get the attorney general's is there much more active. that is just what they do. they're much more activist in terms of how they prosecute, they are much more fair business work. liz: sometimes business doesn't work the way it should. >> and they get away with murder. i would say with this story, when you give money to an attorney general, it does have impact, that is my opinion. the fbi is an investigation, probe, they are looking at this thing into herbalife primarily because the ghost of bernie madoff, worried of missing something that was flagged to them. who knows what they told the justice department. if that is the situation. liz: thank you. we would love to have him. the closing bell ringing in about 30 minutes. we introduce you t

i think it can be embodied in two names michael lewis and bernie madoff.he best-selling author of financial books which kind of showed how some of the high-end is rigged against the individual investor. that is a little overstated. he scared investors the little guy cannot win on wall street. on the other end, bernie madoff of a medic of the corruption that went on. people lost their entire savings. the little guy might get a little scared saying can i compete with the big firms? is the system rigged against me? >> tom, i agree with that entirely, but the tragedy is if americans had reinvested their money in the stock market during the bottom of the crash, think how much wealthier americans would be. the irony is a small investor is the person harmed by this and the fear. the other point i would make quickly as interest rates are as low as they have been, are you going to make any money, are you going to get rich pudding your money in 3% bonds? tom: people are getting the 0.0 something percent on their bank account, but i kind of smile because there is the

bernie madoff was a ponzi scheme. @ñ >>> 11 stories tall, occupying half a city block in downtown cleveland, the cuyahoga county correction center houses 2200 men and women that present a wide range of security issues. some like charles evans. >> the broom was on the floor. he fell on the floor. >> present more issues than most. >> person of interest i want to talk a little bit about, who's a familiar name to all of us is mr. charles evans. mr. evans was placed in lockup and did extensive lockup time for assault on officer may. he was released from lockup and went down to general population. a couple of days ago he got involved in a verbal altercation with an inmate that led to also some verbal confrontation with staff. he was placed down in lockup. he's saying once again he's in fear for his life. >> he's been all through this once before with him and placed him in pc. we have acquiesced to every request he's tried to make and we've placed him all throughout this facility. >> he's been a problem since literally the d

wednesday's also the deadline for victims of bernie madoff to submit their claim.nd on friday, the big number of the week. the jobs report. one celebrity's new look caught twirt by storm this week. 51-year-old ronald mcdonald is ditching the jump suit for a blazer and bow tie. he's also got a second outfit for casual occasions. mcdonald'sç is redoing the efft to boost weak sales. the plans are to include him on social media. already trending on twitter, not loving it, pu tell us what you think. that's the show for today. i'm becky quick. thank you so much for joining me. next week, we'll be bringing you the show from omaha, nebraska, where families gather for their meeting which is hosted by warren buffett and charlie monger. i'll see you next weekend. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month

black the penultimate mark for the jews is bernie madoff. >> i'm glad he changed his name. [laughter] always think that cometh a story breaks and it is bad, that it is not a jew. of aure, if you hear shooting at a school -- tavis: don't let it be a black eye. >> and you know it's not going to be a black guy. black guys do not shoot up schools. schools in harlem do not get shot up. i think we have only had one black serial killer. and they had that sniper. tavis: back in d.c. >> the one thing the jews have had better than blacks is a pr system. the late gottfried cambridge told me once, man, he says, if a story breaks that's good, like they cured polio, the first thing i hear is jewish dr. cured polio. you get that before you hear the cure. whenever anything good happens. question, you big covered this many times in your career. what do you make of black-jewish relations in 2014. this is a story that has opened up all kinds of conversations. what is your take of what you make in the country now of the love relationship or lack thereof between blacks and jews? blackse was a t

bernie madoff, we should be really angry at him. he did something really terrible. but the on the much level of abuse -- optimum level of abuse is not zero. you talk to banks, well, they don't really say this, but it is sort of widely known that they just tolerate some level of embezzlement because the optimal amount of embezzlement reduction is not 100%. getting that last 10% is so much more expensive than getting the first 90%, it's like an ill moon system, you don't want an immune system that attacks anything because you'll die of autoimmune diseases. do i think there was moral hazard in the financial crisis? yes, i do. do i think that's why we had it? no. i tend to attribute it to a different phenomenon which i also discuss in this book which is the desire and the belief that you have engineered risk out of the system. there's nowhere as dangerous as safe. so when i started as an economics journalist in 2003, i was reporting on the great moderation. anybody remember those? this is great. whole careers -- i was talking to ken rogoff in 2008, and he just said, yea

bernie madoff going to jail doing voluntarily with the government requires all of us to do in their pyramidave to tell you, once again the balance of morality shifts in the direction of immorality as the government grows because government has great tolerance for immoral behavior among their own. charles: if people know the relationship between the federal reserve and treasury in the ponzi scheme that is, the maybe up in arms to your point. of all the agencies, and the irs, they are getting the bonus, the rays. my accountant told me how much i owe this year, literally i welled up a little bit. it is so much extra money that could have gone to a lot of different things beside the government coffers. you are a bigwig at the tea party, how do you guys, how do we change this? >> the tea party act is across the country, sincere commitment to good public policy. they could form the working cooperative relationship with the conventional orthodox party around their mutual commitment to public policy, i think they can be a powerful influence for change. but in order to do that you have to get the co

. >> this isn't a bernie madoff situation. a product, you want to sell it, you don't have to sell it. you know, some people have gotten rich, some people haven't. you want to take the chance, you take the chance. bill ackman says the crime is that most people are distributers rather than actual users. liz: false hopes that don't make a lot make a lot of money. >> thus, it's a pyramid scheme. the people that are suing are not saying -- excuse me, making the complaints to the state attorney generals are saying there's false hope here, we're not really selling it. but it's all sort of the same. i will say this, though, and here's the thing that we pointed out in mid march, and i will say it every day, this is going to to be in the short term at the very least -- and when i say short term, next year -- very, very volatile stock. we do know that herbalife and major investors like carl icahn -- liz: who like it. carl icahn's long, bill ackman's short. >> they were not surprised by this, but be they expect more to come. if you're in

really think that small investors are getting ripped off in the way that they got ripped off by bernie madoffrlie, it's much worse. >> this is -- liz: chinese water drip torture. it is something. >> you know what? this is a speck. this is a speck -- liz: yes, and over time a peck makes -- >> over time, by the way -- why, wait a minute, why -- >> liquidity of the markets makes -- liz: go ahead. >> i mean, why -- 90% of these orders are canceled within a millisecond because in the opinion of the markets, they're doing it because that's how they're ripping off the institutional investors in the meantime. >> they call that market making nowadays. market making is entering, ordering, canceling in a microsecond. >> but les no intent to trade. >> a market makeup back in the day, let's again go back to the florida, it was a different beast. today most of these firms have no clients. that's okay. i don't have a problem with that. but don't claim to be this holy person who's going to supply liquidity -- >> of course not. but here's where i've got a problem with you guys and michael lewis. you're making

rigging energy prices in a couple states to being bernie madoff's banker. they were everywhere. and we are -- it's now essentially the law of the land, the collateral consequences is what we're going to do when we deal with companies this size. >> at the other end of the justice system, we have a justice system that does an amazing job of taking people and making them criminals. >> right. essentially what we do is we throw a net over low-income and especially minority neighborhoods, and we -- especially with policies like stop and frisk. we bring in everybody, but we're looking for our guns and warrants, and if they don't have those, we're supposed to throw them back, but we often don't. we often proceed with ridiculous charges. i mean, i have a guy in this book who i interviewed who is arrested repeatedly for what they called obstructing pedestrian traffic, which is just being black on a tuesday night. that's all it was. >> on a street in which, as the details are born out in your reporting, on a street in which no one was walking at that hour. zblf it was 1:00 in the morning.

they were accused of extraordinary array of things, everything from being bernie madoff's banker andising flags are early enough, to manipulating energy crisis in michigan and california, to failing to disclose to investors extent of losses in the london quayle episode, to abuses during the subprime mortgage period of some of their subsidiaries. the list of things goes on and on and on. translated into common criminal law, this is sort of replacing hundreds of years in prison for many different people. >> absolutely. i made a point where there was another case involving a company called general reinsurance where executives were charged with stock fraud, that that amount of fraud that year was more than the total value of all the cars stolen in the american northeast that same year. you think about everybody doing time for stolen car that year, and these guys ultimately got off on a technicality. chase, they paid $20 billion in fines and with the government always says in response to the question of, why aren't these guys in jail, they would say, we don't have enough evidence in these

they said it was something that bernie madoff would even be proud of yet the democrats forced it into the health care law in spite of warnings against. and then our final report was called "warning, side effects." that was released in 2012 and we started talking about the side effects of the health care law. we warned that the law includes hundreds of billions of dollars of tax hikes. well, that has been confirmed when all one has to do is looking at the list of new taxes brought on by the health care law. it goes on and on and on with one new tax after another, and these are taxes on real people that get passed on to others if they're applied to a business, and totaling a trillion dollars in gross tax increases over the next ten years. a trillion dollars from 2013 to 2022. we warn the new insurance cooperatives would waste taxpayer dollars, and that's exactly what this report confirms, and it goes state by state where we see significant wasting of money as reported in "the washington post" and in "usa today." we warn the medical device tax would stifle innovation, and that original d

and each time there's something like the bernie madoff case, i'm afraid it will.his may simply be a feature of an unfortunate fact that i'm older than you are. >> i have to ask both the libertarians about this morning's news. the supreme court heard the most important free speech case. year, the hobby lobby case involving the question of whether a religiously motivated owner of an sandarts crafts store called hobby lobby could refuse to provide the contraceptive coverage required by the affordable care act, also known as obamacare, because of his religious motivations. the supreme court went from protecting the first amendment rights of individuals to those of corporations on free speech grounds, and it may now extend it to religious rights, a corporation as well. you were skeptical of the american libber reign nism our earlier discussion. did the court go too far and should it not extend this right to hobby lobby? >> i think it did. i think this is a good counterpart to jonathan's argument, which is that the first amendment as it's actually practiced in the unite