morgan the new enron yes it is will lose one hundred fifty six billion in capitalization yes it will is that a good thing of course it is you don't want financial terrorists in the system terrorism is bad so again this idea of harir square how the arab spring has spread around the world and in each place it spreads and this is the thing about free culture and free copyright is ideas are allowed to germinate and take their own form wherever it goes televisa of tent city erected in protest against high house prices so israelis are taking to the streets they're setting up tent cities and they don't want to back down until high prices decrease now of course netanyahu came out with the old paradigm and essentially it's all about war and land grabs because he's saying health the problem is not about inflation it's not about money printing white house prices are so high or around the world it's about the fact that there are too many regulations against building houses which is not something you really think of when you think of a. well you know my reading of the old testament is that you be

it did not work with enron. it is not going to work with anyone else. thank you.ommissioner kim: thank you. >> good morning. my name is kay walker, seiu. the west bay chapter of retirees have decided to oppose both amendments, at this point. we will do this publicly. this amendment could change, so it is not written in stone. however, here is my suggestion, in terms of being competitive with adachi, which kind of seems to be the m.o. here. if you remove the governance of the board, retirees will not fight that issue. we are bound and determined, most of us, to oppose this thing as it is now because of that item. a lot of seiu people, even though they do not come up and say this, are looking at adachi having a better deal for actives, in that there is a better sliding scale going on with contributions. this amendment does not. some of the people that are active and employed will go to adachi's amendment because of this. this is happening in seiu, a lot of infighting. you may not hear it, but you will see it eventually in the campaign unless q adopt his scheme and p

i got to tell you, it is the same thing you saw with enron, tyco, health south, and so on.ou know what they miss? they miss that they can be prosecuted for not knowing. they can be prosecuted for something called willful blindness. that's where you should know, you see it happening, there's so much constructive information around you that you should know your company is creating a criminal type organization, and then you just ignore it. so no matter what he tried to do, if you take and distill what he did, put it next to a criminal defense textbook, it's going to look like exactly that textbook. >> and james murdoch said this about his father's company today during the hearing. listen to this. >> the end of the day, we have to have a set of standards we believe in, we have to have titles and journalists that operate to the highest possible standard and we have to make sure when they don't live up to that that they are held to account. >> so what kind of standards are they living up to over at fox news? what am i missing here? >> well, the standards that this committee was a

brilliant until they come back house of cards comes falling down like it did with for example ken lay and enron but that's not a scandal of that kind of proportions i don't think trickling down it's more of a question of his legitimacy so from here on out he's probably going to be completely inhibited in terms of pursuing business. it is harming the reputation of the press new green absolutely. and general journalism. but i mean i don't think papers for example like the financial times will suffer. hopefully not but now let's switch to two to two to world peace in the middle east leaders world is changing and has changes started there with an established were non fly zone over libya and now to go into war offensive operations in the region but the war in libya in its current form is not it was not sanctioned by the united nations doesn't mean that what the nato is doing in libya is illegitimate you know i mean i would say that apart from the french dropping weapons. by and large needs who is fighting with its hands tied behind its back it's it's almost crippled in its execution of hostilities t

. >> do you remember the phase willful blindness in connection with enron crimes? >> yes. it's looking the other way. >> do you think -- willful blindness will obtain in the case of prosecuting and perhaps convicting rupert? >> they may try. >> and his son. >> they may try. >> willful blind sentence. >> i don't think rupert has any -- hold it. i don't think rupert, as of now has any kind of criminal liability whatsoever. the people have a problem are below him. >> when you have a hot story, the editor, the people above say, how did you get that? it's diagnose to be very difficult to insulate the people at the top if these allegations prove true. >> let's see if we can >> thank you columbia, challenger, discovery, endeavour, and our ship atlantis. thank you for protecting us and bringing this program to such a fitting end. >> before daylight thursday morning, atlantis, the u.s. space shuttle, returned to earth. this landing brings the curtain down on the nasa space shuttle, a 30-year program. it began with nasa's first shuttle launch april 12th, 1981, 30 years ago. last yea

basically you look at recent history, enron, worldcom. mortgage-backed securities during the financial crisis, lehman brothers, these were all highly rated instruments by the ratings agencies. until the moment when investors realized they were wrong. >> they were highly rated until they weren't. >> exactly. so what we have to worry about, i think as mary said, what investors think and are they satisfied that the u.s. is going to pay its debts and it's still the greatest credit in the world and a judgment much bigger and important than the ratings agency said. >> this is a structural problem, it's not something you paper over. >> that's how we like greece. >> we're not like greece yet and as kim said this is going to take time. the question the markets will be looking at. is there any capacity for the political system to face the structural problem? and i think that will depend a lot how this is handled politically by the republicans. >> steve, treasury secretary geithner should be right in the middle of this. is he? >> well, you know, i t

surrounding the multi-billion dollar deal to be revealed as well allow them to evaluate the damages the enron staff failed to strike the deal this spring as b.p. shareholders claims b.p.'s russian joint venture should be the primary vehicle for exploration in the arctic. the board members nominated by b.p. didn't make it clear there was an opportunity for corp which they should have done as a result didn't get to participate in this partnership and dance might have had lawsuits as. well lawyers for minority shareholders say they could claim from five to ten billion dollars in losses however in ivory from goals to appeal people leave that too much. this can be very hard for them to really establish that there's been something that's been done that's wrong and that's led to that sort of sort of a financial loss my suspicion is this is all part of a commercial negotiation trying to get something that's the purpose of the decision of the siberian court is that they've now got the permission to get further evidence. because of the markets now crude has seen a very bored day and it has charged over

have come in handy but at that time there was no point in it and stand it you don't want to blame enron but at that moment it was already too late and should have brackets there in there with he would have to hold the ship lower a boat but we were already approaching the site in our ship like i already have boats afloat and advancing towards the site and his boat could it to we were actually beginning to collect the people from the water once again i'm not trying to accuse you of i don't know his vessels mass and inertia characteristics maybe he needed much more time to stop his ship and lower a boat i wouldn't rule out actually i was just assessing the situation realistically at that moment and i think or that there was no use for his boat there at the time you see what was supposed to be a odors in that situation or not of course i'm the captain of one ship he is a captain of another ship i couldn't give him any orders or instructions because he didn't report to me and now some people in the press are already twisting the story saying i ordered him not to stop it had been rice cursor

and marines lives in afghanistan and iraq there are a few interesting details if you talk about the enron that also shows how incompetent and broken our entire system is i hear that basically they were allowed to write their own contract they told the pentagon what to do so the contractor that handles that is a company called se i see it's one of the large defense and intelligence contractors and they were sending people in iraq and afghanistan to literally oversee the government personnel who were supposed to be in charge of them and they just came out this week that they were actually reprimanding and disciplining those government personnel which is very illegal and more importantly they were the ones who are in charge of writing the rebid when the government wants to go out and award a contract that has already been awarded you know it's a five year period after that five years they have to read it out will the s.a.i.c. people are the ones who actually wrote the refit and then were the ones who advised the government on who they should pick to ultimately when they surprise it right now

rapid ratings had enron at below investment in the mid '90s. rerating things on a quarterly basis is an accurate perspective of the credit quality as it changes. companies do not maintain one single quite -- credit quality for decades at a time. and one of the fundamental tenets of the traditional ratings process from the big three is the concept of reading through this cycle, rating for the cycle is essentially putting the rating on the security and having it be good for some period of time that is undefined and indefinite. and the concept is that it's fine and do we say otherwise. the problem is that's been proven to be incorrect over and over again. >> can't guy, congressman, my former company ran enron in bankruptcy for four years and we studied every single fraudulent act in that company. going back historically with all the legal liabilities. what we are doing with structured projects, something that moody's and standard & poor's fail to do, which is a key part of this crisis. they stop doing something called surveillance in a structured

in order to close the massive short fall, perry went to enron-style accounting, for instance, delayedo schools by one day, the budget also predicts a flat increase in the number of school children in the state, even though texas is one of the fastest-growing states in the country. and even more audacious, the legislator instructed the state's accountants to increase their projection of future property increases so as to predict a full $800 million in more property tax revenue, and that's just on the one budget. as for perry's social conservative stance, let me bring in someone familiar with that. joining me now, terry hall. terry, thanks so much for joining me tonight. >> thanks, chris, good to be here. >> terry, you and i have spoken before a number of times, and you describe yourself as a pro-life, christian conservative, based on what we're reading today and what's been reported, i would say you're in the demographic cheering on a rick perry presidential run, but why is that not the case? >> i actually am in that demographic, i should be in his demographic and should be very much i

>> it is a term that came up in the enron scandal, and willfuled blindness is a legal term. it states if there's knowledge you could have had and should have had but chose not to have, you are still responsible. >> do you have a question? >> the question was whether you were aware -- >> i'm not aware of that particular phrase. >> rebekah brooks, murdoch's former new york chief as appeared. she resigned on friday. brooks denies responsibility for the alleged hack being at the newspaper she once ran and insists she was shocked and disgusted when she heard reports about murdered school girls' phone being tapped. >> of course i have regrets. the idea that millie's phone was accessed by someone being paid by "news of the world" is abhorrent to me as it is to everyone in this room. and this is an ultimate regret that the speed in which we have found out and tried to find out the bottom of this investigation has been too slow. >> it's not clear if rupert murdoch helped or hurt his cause with his testimony. many observers felt that he looked old even foggy at times. this tweet from

>> it was a term that came up in the enron scandal. willful blindness is a legal term. it states that if there is knowledge you could have had and should have had but chose not to have you are still responsible. >> mr. sanders, do you have a question respectfully? i don't know what you'd like me to say. >> i'm asking whether you are aware. >> i'm not aware of that particular phrase. >> reporter: it was now the time for rebekah brooks. >> we have paid police in the time for past. i have never knowingly sanctioned a payment to a police officer. i was referring to -- if you saw at the time of the home affairs select committee recently that you had various crime editors from fleet street discussing that in the past payments have been made to police officers. i was referring to that wide held belief, not widespread practice. in fact, in my experience in dealing with police, the information they comes to newspapers comes free of charge. >> reporter: the scandal has come at an incredible cost to news international. a year ago the name murdoch put fear into the hearts of many b

>> it came up in the enron scandal. it's a legal term.you should have had or could have had but chose not to have, you're still responsible. >> mr. sanders, do you have a question? respectab respectfully, i just -- >> the question was, were you aware -- >> i'm not aware of that particular phrase. >> now you are aware of that particular term because now you've heard it. >> we were not ever guilty of that. >> thank you. >> we have been very clear that serious wrongdoing allegations have been levied at "news of the world." and we believe that the actions of some reporters and some people some years ago have fundamentally tarnished the trust "news of the world" had with its readers. and this is a matter of huge and sincere regret. my, my father's and the company's. >> just a couple of minutes ago, i talked to have cnn's richard quest who's been watching the testimony play out today about the chances that rupert murdoch's testimony will hurt him professionally. you know what richard quest did? he chuckled. watch. >> it's a really foolish perso

legal ramifications wait for a question to come up and willful blindness is a term that came from the enron case and before the question ended rupert murdoch said i'm familiar with the term. nothing like that ha happened h and you can see him stirring. that's why i feel he got better as he got closer to being who h was and james provided the coverage of that. >> and got around the issue of look there are a lot of ben fits to the competitive cross and you're not acknowledged that we're part of a transparent free and open society we provide a lot of information and went on a counter-offensive that's hearing went on and more or less came to defe newspapers in general as an important part of the common. >> and let it be sd roger cohen one of the coluists in the new york times rather bravely last week went to bat for rupert murdoch on the good he has done and not to excuse for one minute the perfectly ghastly things the news of the world a possibly some of the tabloid stalstalemates has done is untry'semocracy may have been remarkably poorer in the last 40 years if not for the murdh influence an