this this and not this texas investor is kyle bass kyle bass is the one that ended up collapsing bear stearns which was handed to j.p. morgan which was then delivered all of those shorts on the silver market so kyle bass remember he was the one that was speaking to c.m.d. c. and told them that he started the rumor that he couldn't get the payoff on his credit default swap on bear stearns but in fact the next morning it was paid off so he's inside manipulating markets he's a financial terrorist causing human misery death and deprivation but cameron and obama are on their knees telling him he's a god that they worship and meanwhile want to expose that some low level people are doing the same thing oh my god above can we survive with those yeah if you're not taking the. banks in order to hand them to j.p. morgan for pennies on the dollar then you're the bad guy now i want to look at some more you brought up precious metals some more propaganda against the population pairs from the f.t. it's an opinion piece gold bugs beware the bubble is finally bursting this is from a professor at boston univer

mortgages and sovereign debt 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 he

he started the rumor that he couldn't get the pay off when they cut his credit default swap on bear stearns but in fact the next morning it was paid off so he's inside manipulating markets he's a financial terrorist causing human misery death and deprivation but cameron and obama are on their knees telling him he's the god that they worship and meanwhile want to expose that some low level people are doing the same thing oh my god well can we survive with those yeah if you're not taking down. banks in order to hand them to j.p. morgan for pennies on the dollar then you're the bad guy now i want to look at some more you brought up precious metals some more propaganda against the population pairs from the f.t. it's an opinion piece gold bugs be where the bubble is finally bursting this is from a professor at boston university and he says gold's recent volatility is spook ing investors and destroying demand he claims even though imports to turkey up six hundred forty four percent imports to india the biggest consumer of gold in the world up many many times over so where is this guy he's just pu

were two protests one that was held on wall street the original protest against the bailout of bear stearns and then a second one that was held in washington d.c. that we called the toilet bowl protest because it featured a toilet bowl in which people could deposit their collateral for the federal reserve and those were very small bets there were thirty forty fifty people there we hold out a lot of those you know a lot of signs and in and out some theaters of flyers of course stickers and d.v.d.'s and things like this and then everybody went home and the problem with protests and the political process is that it's very easy no matter how big the protest is to it for the politicians to simply wait until the people go home and then they can ignore you well occupy wall street was a little different and back in two thousand and eight i wrote that when we will actually see changes when the people call they set up camp and they refused to go whole that appears to be happening now and there is of course you're going to expect people to try to co-opt what's going on but that is a very dangerous pro

if you are an institution like jpmorgan chase, then it was bear stearns. in march 2008, it was the absurd -- government subsidized. we are still paying for that deal. of course, the inflated ego of jamie dimon rose along with it. did the ego, 1st or did the entitlement come first when they rose in their position? i do not know what the conversation -- what the combination is. i know a lot of these men and i know that their egos are phenomenal. they really do think that they are the american economy and a day are the financial system. they don't really care about the people on the ground outside their offices. tavis: if you have a historical novel "black tuesday" and there are some interesting parallels. i wonder in real life would part of the comparison, what part of the parallel most concerns you, especially now that we are on the press as a perhaps a double dip recession? >> what concerns me is how much today we are subsidizing the failure and fraudulent and criminal activities of wall street. back then, what happens that in 1933 -- it did take a while f

as president of the federal reserve bank of new york, orchestrated, cheered on beginning with bear-stearns and then aig, the various government intervention. so for him to try and jump ahead of this parade is just beyond weird, but-- >> go ahead, james. >> i was going to say, listen to the president, he keeps saying this is not class warfare, this is just not. you look at what's going on in downtown manhattan. that's class warfare, these guys do want war. >> paul: could it really be that this is going to be the beginning of a populous left wing movement comparable to what we saw in the conservative populism of tea party and actually become a major political force that has influence not us just over democratic politics, but over policy? >> i would say no, because the tea party is a-- was it reaction among people, small business owners voters, thought the government was spending too much and was too big. the crowd that this group is playing to is extremely small. this is not the typical american voter. this is not the mainstream independent in those swing states. so, i think it's fundamental

groups the protest is causing serious concern with the government continuing to implement the bear stearns he measured in a bid to receive cash pensions looks set to keep escalating i think. it's easy to explain the performance so it was. the first reaction in. my. experience. of the. impact of the financial crisis is being played out play by play well some tightness where there are now fears that the financial crisis turned into an economic recession going into high gear is a look just to greet people today any. party. chris is our natural process is being worsened by the admission right about its budget targets economic analyst martin hannett he thinks the only way for greece to survive is to default and start fresh. if they default it may actually not be the thing and not just greed i would think if it really falls it may also not be the same because then they are after they can start again dead free they don't have to increase taxes they can devalue their currencies have a lot of says become more competitive again so. that may actually be potentially the best solution on the other hand

number five the banking system too big to fail banks three years later by the people that predicted bear stearns and lehman brothers 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 a

it's almost a carbon copy of what happened in 2008 with the likes of bear stearns and lehman brothers smaller scale, perhaps, but basically what we are seeing is banks refusing to engage in the normal money market activities with anybody that they feel might go under. nobody wants to be holding the baby in this particular case. >> so it seems like an awful lot is being done to make sure dexia is secure. why this bank? why wouldn't this be an institution that would be allowed to fall by the wayside as a result of its troubles and why is so much being done to save it? >> good question. and simply put, because it's a big bank across france, belgium and luxemburg. it's a retail bank, the equivalent of a chase or a bank of america or a wells fargo. it actually has branchs with people that go in to do banking. so what they've done is they've taken those parts of the bank and they are going to sell them off and put them into government ownership or nationalize them. depositors will be safe. the ordinary men and women are okay. you take the investment bank. what you don't want, you really don

of 2008, or in the beginning of 2008 when they first extraordinary measure they took was with bear stearns part of 2008. >> rose: and j.p. morgan -- guaranteed it. >> facilitatin the j.p. morgan takeover, yes. >> rose: there is under way in this cntry, in this city, an around the world this developing protest, what do you make of it what do you -- >> what i make of it is that people are unhappy. the protest itself doesn't seem to be totally coherent, expressed more forcibly before, the distribution of income, which has changed very radically in the last ten or fifteen years, and you have a situation in the united states where there has been almost no growth in real income for the average family for ten or fifteen years, but way at the upper end of the income distribution there has been an enormous increase, of the kind that didn't take place in myifetime or even in your lifetime. >> rose: it is unbelievable. >> yes. it seems almost unbelievable, the only thing that came close to it is 1928, 1929, because you look at what happened in 1930s. >> rose: yes. >> but -- >> rose: does that worry y

number four, dick folde who ran lehman brothers, and number five, jimmy kaine, who ran bear stearns. there's one person missing from the study because this person sold his share after leaving the company come so was not disclosed and the same way, but this sixth person is hank paulson, who built goldman sachs up. goldman sachs was one of the world's best investment banks by the way in 1998. it was a 200 billion-dollar bank, 280 billion in today's money. when it failed, sorry, was saved from a failure by you, the american taxpayer commence a tender, to those in need, allowed by the federal reserve to convert to a bank holding company and therefore have access to the discount window. at that moment it was a $1.1 trillion bank, and i think the question is what did you get. what is the society get from the nonfinancial sector debt, what did anybody get from that increase in size from 1998 to 2008? we know what hank paulson got. it was hundreds of millions of dollars including a very nice tuck >> because he sold after he became treasury secretary. so five people get $2 billion. what's the

remember, he refused to bail out bear stearns at first. david koch, a longtime libertarian who believes in drastically lower taxes and limited social services. john paulson, he's a hedge fund manager. again, we're looking live again as this protest moves to the upper east side in manhattan. john paulson, a hedge fund manager who made billions betting against subprime mortgages, howard philistine who invested heavily in banks and hotels. the protesters were suppose today host a news conference earlier, it never materialized. all they said is they are simply trying to get their message out. tomorrow, seiu will protest for better jobs, megyn. megyn: trace gallagher, thank you. >>> and a fox news alert from the campaign trail. there is breaking news now in the race for the white house. our own campaign carl cameron confirming a big development with the gop field. carl? >> reporter: hi, megyn. well, there's a big debate tonight of the republican candidates, and there will be somebody making news beforehand. the current governor of new jersey, c

number four, dick folde who ran lehman brothers, and number five, jimmy kaine, who ran bear stearns. there's one person missing from the study because this person sold his share after leaving the company come so was not disclosed and the same way, but this sixth person is hank paulson, who built goldman sachs up. goldman sachs was one of the world's best investment banks by the way in 1998. it was a 200 billion-dollar bank, 280 billion in today's money. when it failed, sorry, was saved from a failure by you, the american taxpayer commence a tender, to those in need, allowed by the federal reserve to convert to a bank holding company and therefore have access to the discount window. at that moment it was a $1.1 trillion bank, and i think the question is what did you get. what is the society get from the nonfinancial sector debt, what did anybody get from that increase in size from 1998 to 2008? we know what hank paulson got. it was hundreds of millions of dollars including a very nice tuck >> because he sold after he became treasury secretary. so five people get $2 billion. what's the

we were doing business with bear stearns for 80 years.ith lehman brothers and we lost not a penny. only a few people, like goldman sachs, were really out the risks. that whole systems risk argument is an interesting argument. a couple of other thoughts about the crisis. there is an interesting myth is the the banking industry was deregulated during the bush era. absolutely not true. we're not deregulated, we were missed regulated. -- misregulated. regulations increased exponentially. there was a huge focus on two things. the patriot act. sarbanes obsolete -- oxley. we are behind one back from the early 1990's. the patriot act was bare spots to keep -- catch terrorists. do you know what the probability of us catching a terrorist is close to zero. if there are that dumb, they will get caught anyway. if we caught a terrorists, -- the only significant conviction of the patriot act is eliot spitzer. he was convicted of soliciting prostitution. in some ways, that is humorous and in some ways, that is poetic justice. in other ways, it should sca

especially aig, bear stearns, fannie mae and freddie mac. in 1913, congressmen envisioned federal reserve would be the lender of last resort during a financial crises. part of the federal reserve is never articulate as the lender of last resort. as allen membership cher observed, the absence of a lender of last resort policy has three unfortunate consequences. first, uncertainty increase. no one knows what we'd done. second, troubled firms have a stronger incentive to seek a political solution. they ask congress or the administration for support or to pressure the federal reserve or other agencies to save them from failure and third, repeated rescues encourage banks to take greater risk and increased leverage this is the well-known moral hazard problem, end of quote. if the federal reserve were to promulgate a clear statement about its lender of last resort policy it would go far to diminish uncertainty, reduce the likelihood of political interventions and mitigate the moral hazard problem. finally, many years congress ago congress gave the