it was a deal that ultimately saved the creditors to bear stearns by forcing it into j.p. morgan at the expense of equity holders michael hudson points out to the homeowners and corporate america on how in hock to the debt machine many corporations are effectively in negative equity or in technically insolvent position headed by the financial sector by the banks themselves really sympathy for the demonstrators in the bill. i don't know if there's a lot of sympathy per se to their point of view i mean we were you know in a similar similar boat so to speak a similar boat perhaps only one has life preservers the fact the government now is funneling money to a major bank and saying if you can do that with a bank why not do it with strapped homeowners facing foreclosure as democrats thanking god was. crisis increases desperation. minds hudson says main street is leading the move on main street in a battle for survival we are seeing a second class war in this country such as you've never seen in the entire history of the united states a class a class war except in this case the

default swaps and they are just still alive you know and she didn't go out didn't go the way of bear stearns and lehman brothers a.i.g. the spawn of the devil's. putrid she d.s. . len arm is still active with the devils and lloyd blankfein to the room i'm sorry what do you think some of the e-mail right now guys are reported on t.v. are you should we waterboard or decapitated. blank line. next show based on the emails coming from you i want to get my box cutter ready for the decapitation i mean if it took down the twin towers it can certainly take down lloyd blankfein so some e-mail cards are reported r t t v dot ru next year we should bring you many rocks thank you not even texan to do the waterboarding or the decapitation oh this is going to grow so what is going on you know the g twenty met this weekend they did nothing to sort out the banking crisis and now let's look in the u.k. where they're introducing massive austerity measures to finance the bailout four of the bankers cable looks to avoid confrontation as he sets out banking vision so this is the business secretary of the coalition

to happen would bear stearns lehman brothers washing which would settle the issue with the problems of two thousand and eight or the exact same problems we have right now in the fourth quarter of two thousand and ten except for the fact that the government has almost perfected a lot of its liquidity injection methods measures and as i explained in illustrate a little earlier with j.p. morgan the liquidity injection measures stopped much of the fall but did absolutely nothing to cure the problem and the only way to cure a problem is the pricing the proper pricing of the assets is sitting on bank and real estate and other companies balance sheets so finally as we look ahead to this this announcement this quantitative easing announcement forthcoming so basically based on what you're saying here is that if the idea is to get rid of the oligarchs and to return to some economic. system that is at least nominally democratic that number should be as close to zero as possible is that a fair statement i don't believe in a totally free market system because it's very difficult to maintain the set

and in new york when bear stearns first failed so the movement and i was always fundamentally at the core been about the corruption of the government process and the use of taxpayer money to rescue failed institutions. the reality is the establishment on both the left and the right really like that system because they get a lot of political power from the campaign contributions and everything goes along with along with the revolving door that goes between wall street in washington so it was not all that surprising that they came in and attempted to co-opt it i was more than a little surprised that they were successful but there you know this is what happened this week in a political system that is based on free speech it tends to get messy sometimes wiring as a private a success on the do you think this is going to stay just a small portion of the people eventually obviously someone's going to throw money at it some politicians especially in a midterm or you know when midterms are coming up when there is a democrat in office the republicans need some kind of ammo could ensure that ex

bear stearns and goldman sachs this is the most expensive take out the biggest crime in world history we're talking about a crime we can't even quantify we're talking double digit trillions of dollars into this film will explore this scale of monies missing written off last ripped off in these various scams and in the case of the bailout funds unaccounted for. graydon carter editor of vanity fair may have summed it up best when he wrote it can fairly be said that the chain of catastrophic bets made over the past decade by a few hundred bankers me will turn out to be the greatest nonviolent crime against humanity in history they brought the world's economy to its knees lost tens of millions of people their jobs and homes and trashed the retirement plans of a generation and they could drive an estimated two hundred million people worldwide into dire poverty in other words never before have so few known so much to so many and when experts estimate the total money last may reach a hundred ninety six point seven trillion dollars and that could be low like millions of americans i've lost th

reason why the new york fed owns these mortgages is that they acquired this debt when they rescued bear stearns and right so you see their plans ping pong game back and forth with each other and the fed is supposed to be a lender of last resort or have some function in the economy but what happens is they buy all these bad debts and they sell them back to the research your ties them and they put some of that off the balance sheet and then the commercial banks will look at that for a while they don't want to have to deal with it so they repackage it and sell it back to the fed and this goes on and on and on to the point now where nobody knows who owns what and there's no way to have any accountability whatsoever so the only solution is the atomic weapon solution of quantitative easing and let's keep interest rates near zero which as we've pointed out all the savers and all the pensioners and anyone who wants to get a decent wage for the hours that they're working are being penalized so there are some citizen the savers are subsidizing the speculators the savers the workers the pensioners are sub

the windows out every window north south east west is a is a major bail out company there's the bear stearns building this citi group there's g.e. there's u.b.s. there's j.p. morgan and i know behind j.p. morgan is lehman brothers in the distance i see mcgraw hill building which holds s. and p. the new bank of america building is do east from us and on one of the windows if we look at all the way downtown to the world trade center. and you need a binocular to do it you can see the merrill lynch building and we also have can see christ will building which has nothing to do with chrysler other than the name but it was pretty pretty fascinating that we were right there in part on the word ground zero of bailouts the new york city economy has surprised people with how well it's done but throw a couple of hundred billion dollars at the headquarters of broken companies and that trickles down to the rest of the economy right now so they've got these enormous ballots that have gone these banks and lot of a lot of banks around in the in new york as you point out you can see them right out of you when