>> i said the financial breakdown was worse.economic consequences in the '30s was, of course, vastly greater. this time we knew how to respond as it were in the macro economy, but in dealing with the collapse, we responded with very powerful monetary and fiscal tools. that got the economy recovering, but the financial system wascd essentially completely taken over by the central banks. it was a total rescue of the system, which ceased to function. and if we hadn't acted in the way we did, all the governments together in october and november, december of 2008, i think the result would have been at least as bad as the great depression. >> what does your research say to you after these years now, as to how this happened and why this happened? >> well it is a gcomplicated story. it is two processes. the entry of china into the world, the emergence of huge savings surpluses coming from the emerging countries, into the developed countries, so u.s. running huge current account deficits, spending more than its income. the federal reserv

steve adubato you know during these very uncertain economic times many are facing extraordinary financial challenges here in the studio to help us get our finances under control we have michael drulis exeutive director of the new jersey coalition for financial education lourdes cortez president and chief executive officer of the north jersey federal credit union kim cole education outreach coordinator at novadebt and finally bill klinger associate professor of business at raritan valley community college i want to thank all of you for joining us we have to get our finances under control do we not? by the way throughout this program you're gonna see some very important websites that will help you get your finances under control. by the way how many americans do you think watching this show at least on the east coast watching us what percentage do you think do not have their finances under control? what do you think? i would say quite a few i don't know the exactly what that percentage... do you think it's close to half of people watching our segment? more than half no yeah i think so you t

designated terrorist financiers. they also have the laws and institutions in place to combat terrorist financing in kuwait. one thing we are particularly concerned about and two of the both wereignees raising funds through social media. through twitter appeals, in particular. they are raising funds not necessarily from within kuwait, but are also reaching out to others, including in saudi arabia to make appeals to raise funds. one of the areas where we are quite concerned is ensuring that in particular people who have been designated by the u.s. and the u.n. are disrupted and unable to continue their fundraising activities. as i stay, i think there is more work to do, both encoder -- in qatar and kuwait. we been deeply engaged with both countries for a number of years. we have seen others make really substantial progress in combating terrorist financing. we are going to continue to work as closely as possible with our partners in the gulf on this issue. >> how would you address critics of u.s. policy who say that thi

alley spoke about the crisis with the chief financial commentator of the "financial times," and the author of "the shifts and shock - what we learnt and are still to learn by the financial crisis." learnt? >> i think the most important thing we learnt is the fragility of the financial system, and the way it interacts with the economy, and the dangers of leave ridge and accumulating huge amounts of debt, in the financial sector and the household sector. repeat. >> we have a generation thinking debt is the fantastic, the well. >> it's exactly what they thought. for a generation, 30 years, that's how it seemed. the same thing is true. for the last six, seven years we reduced leverage, debt. there has been a lot of bankruptcy, corporate and more in households. it's painful on the other side of the debt machine. >> we have seen as credit is more available, as jobs get filled, people go back into the bad habits, do you think we have learnt? >> what we have still to learn. one of the things that worries me, if you look at where we are in the u.s. and the u.k., my own country, we may think about h

how could it trigger another financial crisis?rly we have seen historically that debt is an accelerator, and also an exaggerator of the normal business cycle. in good sometimes more money is loaned, and that leads to higher highs. but when we start to get into trouble, that same debt creates an additional vulnerability. but since that's the repeated pattern of 150 years, as we're deep in a financial recession cycle, we're now at the height of the kind of circumstance with the kind of success debt load that has generally pressaged a relatively tough period where that debt comes back to haunt us. >> robin that same report says the decrease in household debt are offset in a credit binge in asia. why such a rise in credit in asia, and how are markets accelerating the debt growth. >> i think everybody's reaction in the wake of 2008, you have theaters of war. you have the united states and federal reserve, and congress, and the obama administration's first 100 days with the fins of 2008. you had europe having to fight the failure of gre

designated terrorist financiers. they also have the laws and institutions in place to combat terrorist financing in kuwait, but one of the things we are particularly concerned about, and of the recent sidnees were raising funds throw all-star media, -- are reaching out to others, including, in saudi arabia to make appeals to raise funds. so one of the areas where we are quite concerned is ensuring that, in particular people designated by the u.s. and by the u.n., are disrupted and unable to continue their funding activities. i think there is more work to do, both in qatar and kuwait. we have been deeply engaged with both countries for a number of years. we have seen others make really substantial progress in combating terrorist financing, we're going to continue to work as closely as possible with our partners in the gulf on this issue. , how would you address critics of u.s. policy who said this is not america's fight and that should be better left to countries in the region and not the united states, and how do you

financial facilitators. running a terrorist organization, especially one that spans hundreds of miles, is both costly and bureaucratically challenging. in order keep track of all its revenues and costs, isil depends on complex measuring networks, with cfo like figures at the top. as we identify those individuals, we will expose and -- we have seen from our fight against isis and other organizations that can bring their -- that hampering their funds will make it harder for isil to conduct commercial and financial activities and clearly identifies for the international community who stands behind this evil organization. we've stepped up our designations of isil officials, those based in iraq and syria and their financial supporters outside the area. on september 24, treasury sanctioned two high-profile individuals associated with isil, a financial facilitator who arranged a $2 million donation from the gulf, and his senior military commander. both were in syria soliciting donations, from -- procuring military

that's what financial inclusion is about. not only about doing well, it is about doing well and doing good at the same time. most companies who benefit from it. if that's what you are try doing, i believe that cash is actually a hugely expensive medium of exchange, created hundreds of years ago and has a reason to exist in today's modern economy. that is printed and distributed and my colleagues from the bank are pick up with trucks with two people and if you have 1% of the truck cashed as a bill. you need people to check it. and then, all of the tax evasion. you are talking about taxes, you cannot pay taxes long-term without a large preponderance of tax in the economy. third, you can't have a great deal of activity without cash. if you kids go to college in this country, drugs are on campus. those drugs don't come in the shape of a city card credit card. >> i get it. i get it. so just think through the role of cash and through the trance parn sieve electronic payments and that is the idea of inclusion and what james was sayi

financial facilitators. running a terrorist organization, especially one that spans hundreds of miles, is both costly and bureaucratically challenging. in order keep track of all its revenues and costs, isil depends on complex measuring networks, with cfo like figures at the top. as we identify those individuals, we will expose and desecrate them. we have seen from our fight against isis and other organizations that can bring their -- that hampering their funds will make it harder for isil to conduct commercial and financial activities and clearly identifies for the international community who stands behind this evil organization. we've stepped up our designations of isil officials, those based in iraq and syria and their financial supporters outside the area. on september 24, treasury sanctioned two high-profile individuals associated with isil, a financial facilitator who arranged a $2 million donation from the gulf, and his senior military commander. both were in syria soliciting donations, from -- procur

the second category of clouds that we see, financial clouds.here is a concern that the financial sector excesses may be building up especially in advanced economies. asset valuations are at the highest. spreads and volatility in almost all sectors, not quite all but almost all are at their lowest. further worry is the migration of new markets and liquidity risks outside the banking sector in what we called the shadow banking sector. which is a nonregulated, non-bank sector which is growing rapidly in some countries. in the united states for instance the shadow banking sector isn't now considerably larger than the banking sector. in europe it is roughly half the size of the banking sector and in china about 25 to 35% of gdp, it is the fifth-largest in the world. so it's growing and it's not all bad. shadow banking can be just fine in some cases ended needed -- is needed in some economic space to actually finance economy growth but the problem about it is we don't know enough about it. when i say 25 to 35% it gives you the range of what we now bu

on one hand, there is an argument that as we make more lower cost financial aid available, federal financial aid available, students take that and therefor incur more indebtedness without having the conversation about is that something that really is in their long-term interest. on the other hand, obviously for students who need that financial aid, having it available and having it available at a low interest rate is a huge advantage for them going forward. so there's not really an easy answer to the right level of federal financial aid. i certainly am -- you might want to have some financial counseling involved to make sure that people are making good decisions about their ability to repay those future loans. >> the big ten tour, eric kalor is president of the university of minnesota. just under ten minutes left. let's hear from fred who's in lexington, kentucky. a student there, fred where do you go to school? >> caller: i go to eastern kentucky university. >> uh-huh. >> caller: my question to the president kind of concerns my question. the president had some proposals, different options a

on one hand, there is an argument that as we make more lower cost financial aid available, federal financial aid available, students take that and therefor incur more indebtedness without having the conversation about is that something that really is in their long-term interest. on the other hand, obviously for students who need that financial aid, having it available and having it available at a low interest rate is a huge advantage for them going forward. so there's not really an easy answer to the right level of federal financial aid. i certainly am -- you might want to have some financial counseling involved to make sure that people are making good decisions about their ability to repay those future loans. >> it's the first stop on our cspan bus tour. just under ten minutes left, again, are a parent. for students 202-585-3882. and for minnesota residents 202-585-3883. a student. >> caller: i go to eastern kentucky university. my question to the president concerns immigration. there were some proposals. as the president of a university i was wondering what kind of insight you would kind o

apparently modern financial regulators are vastly more sophisticated than we were as financial regulators years ago. because we had never figured out that the key to financial stability was leaving felons in charge of the largest financial institutions in the world. >> but they do claim with a straight face that they can't prosecute. >> they make it sound like the only choice we have is to prosecute banks as opposed to bankers. and that's nuts, right? we've always prosecuted bankers. we prosecuted successfully over 1,000 bankers in the savings and loan and bank crises. and those are just the major cases and such. and it -- of course, it greatly enhanced financial stability instead of the other way around. indeed, none of the people in that era came back in this crisis and were able to lead frauds. and they couldn't because they had criminal records. but in the next crisis, these folks have no criminal records. they'll easily be able to come back. in fact, if you want to create the next crisis and make it vastly worse, leave the people in charge who led the frauds in the senior ranks at th

is similar to the financial system we have before the crisis. in some ways, it's even more concentrated, even more reliant on a limited number of institutions which really remain too big to fail. i think that criticism stands. so the fundamental fragility of the financial system remains, in particular the institutions are extraordinarily highly leveraged. they are just insanely leveraged than before the crisis and we depend very heavily on what has come to be called, horrible jargon, macro credential policy. what does that mean? it means the central banks and regulatory authorities ability to recognize risks in time, and to diffuse them by regulatory changes. and i think that is extraordinarily optimistic given the past. we need a much more robust financial sector and less leverage in our economies. and we have done very little about that. >> rose: and how would we have done that? >> well, this is a long-term proposition. and we would have had to take the view that were we got to in the years running up to the crisis is a mistake. but i think th

how are you guys working with financial institutions to bring people into the financial the stream and help finance shifting immigration status? >> financial empowerment is essential. we are he framework that working with, there has to be a financial empowerment component because we can talk to her blue the face about poverty and financial equity and so forth. see, especially in california, is that immigrants come with a very strong entrepreneurial spirit. of hink it is a matter survival as well. when my mom came here, she -- ld sell you anything avon, shoes -- so i wondered how we capture that spirit. tamales on e selling the corner, how do you build that to make that into the best tamale maker in california. so we are working with a lot of the financial institutions, the in california and nationally, it behooves of them as well. they see it as a new market, especially in california. so they are part of the discussion. well, the r banks, as community banks are on the table as well, having how we encourage them. including bank on movements, incorporating immigrants into the institution

you then have to get financial records. and cooperation i think has improved tremendously over the past few years but we still have issues in terms of sharing financial records, getting financial records that can then be admitted in court. i think with the rise of some of the data privacy laws that we've seen around the floeglobe, that actually made it more difficult. they have valuable assets, but they make it very difficult oftentimes to get the financial information that we need to prosecute these cases. then you have to put it all together and convince a judge that these are valid cases to be brought and should result in forfeiture judgment. then you've got some of the politics around it. people question whether forfeitures are useful tools or not. for me, i would say yes, it's one of the most valuable tools we have to attack corruption and criminal conduct. all of that is a long way of saying that the recognition, we couldn't do this in the u.s. with people doing it part-time. we had a lot of prosecutors that were doin

it is all about financial market. i don't think they want to upset financial markets.are going to be really slow and wait for inflation. >> we are out of time. i'm sorry, i just think it is not the right course when everything is benchmarked at things like markets. but markets can throw hissy fit but when we are not giving ourselves time to simmer post to crisis. >> speaking of which, oil slides still this morning. brent near 27 month lows. more on crude. >> we got numbers from the imf on projections for growth. we've just gotten them this morning from the energy information energy, the government's agency. eia is now projected lower demand for 2014 and 15 and higher production, particularly here in the u.s. lower price, lower the price of crude they see for 2014 and 2015. interesting number though, if you look at for 2014 they are forecasting u.s. production will be just over 8 and a half million barrels a day. that is slightly up. for 2015, they are lowering their production forecast from 9.53 million barrels a day to 9.5 million barrels a day based on lower output i

he's got to continue to restore and maintain financial stability and rebuild our financial institutionss another crisis. there will be another crisis. he asked to make markets work for society and for the real economy. >> juncker has been clear on the priority. i've heard juncker talk more about the capital markets union that i have heard him talk about the banking union. in some ways, london will benefit. when you look at the biggest pool of liquidity in europe, london could benefit. some people in london are looking at this from the wrong end of the telescope. how big a challenge? you look at the pension industry, how big a challenge is it to get the markets to function more efficiently? the regulatory story until now has been very rearview mirror stuff. we're going to fix the problems that cost the last crisis. how easy is it going to be to look forward? juncker is talking about growth. >> he has an opportunity to do that. regulation to address the crisis has largely been done. now, the way is clear for the tocker commission and hill go for the growth and investment agenda. that is s

to the financial institution and the financial institution has tagged their information appropriately. essentially it can read from a computer computer to computer the threat information. that's something which is a significant initiative within the financial services industry. it's going to migrate to others as well and it's become the standard and i think that it makes sense for that to be the one standard that you were talking about earlier. from machine to machine so that we can spend more te doing the analytics and the mitigation and what part of the threat really impacts our environment, so. and in the course of the last three years it's going for them when you from when you have information or get information from the institution by you already have so much information that you actually have to figure out ways to automate more effectively for the meaning and then also by the way working with the government partners and building the products so the joint products out of the bureau and the fbi of words have been coming out of associated with various types of attacks against the s

they are primarily the financial district connecting with the regional transit providers for commuters. it's the goal in the program was to provide a transit option for the last mile of your transit connection from cal trans to the financial district. but i have invited mta and bay area air quality management district to expand the programs into neighborhoods. >> thank you. good afternoon commissioners. my name is maddox for the program in san francisco and planner with sf mta. you asked about other stations in the system right now. there are a total of 35 stations in san francisco, part of the initial pilot roll out and they are spread out between our offices at market and van ness and the wo water front extending north and south of market street and soma and the financial district. we have plans and initially the project was supposed to have launched with 50 stations in san francisco and we have been founded for a year now and initially the plan was to distribute those areas i just described and when we are able to make the purchase we'll expand beyond market street as far as castro

enagage with us. e financial noise financial noise financial noise financial noise >>> protecting yourvacy on your phone and online, companies like apple and google are at the epicenter. both companies said they may be doing privacy too well. the fbi is worried about the they they encrypt their phones. both apple and google want your trust. that means throwing bashes. his company is the real leader in security. >> is apple doing privacy better than google? they made comments about selling search history to make money. >> someone didn't brief him correctly on google policies. it's unfortunate for him and we have been the leader in security and enkrips. ours are far more secure than others including apple. aside from the fact that we show as in gmail as we have done and used the information for nothing, all the other thingses implied we don't know. >> how about them saying the business model is the nsa. >> julianne needs to do more research from the safety of the embassy. they do not have a business model. they are funded by the u.s. government. second, the nsa does not collaborate in an

synchrony financial.ge with us. >>> seasonally, nourth quarter usually good for retail stocks, so that's amazon and ebay, although ebay may have just had its catalysts, in terms of the stocks a holden you we think of the setup the next three months, looking for stocks that have if got still relatively large material, new growth drivers ahead of them and with that as a screen, it's kind of hard not to look at netflix and facebook. facebook with these video ads and instagram mon tiz zblagsz, kick in around the turn of the year and netflix with the european market launches. >> stick with what's working, netflix, up about 20% year-to-date, facebook up 32% or year-to-date. same time, you have got buys on some of the others, amazon, priceline, google, and they are not -- they are not working. so, why -- why is it that you're saying stick with what's working and also stick with what's not working? i'm just trying to understand what the rationale is. >> we have talked about this in terms of maybe you want four cs

it's very important that financial policies keep these financial excesses from becoming too large.could ultimately threaten financial stability. you have many assets which are not as liquid during stressed market conditions. --estors >> how far away are we from that point? >> we see that risks are building up. a are far away from having financial crisis or anything like that, but it's very important to call attention to ese risks that are building up so that action can be taken. >> you and the imf are hardly alone in drawing attention to these risks and calling for macro prudential regulation. janet yellen and other members of the fomc have done so several times, including in some recent speeches. our investo -- our investors to complacent? >> they are complacent. this is reflected in the valuations. when you have investors complacent, the authorities need to reinforce their policies in order to make sure that this disappears and this does not cause damage to systemic initial stability. this is why having strong micro-prudential policies and macro prudential policies which insured

we increased our financial capacity. we're now able to provide a state-of-the-art solutions, not just data and analysis, but solutions from all over the world. we are now a global knowledge organization as opposed to a regional or country-based knowledge base in the past. but we have to step up. i think you heard on a previous panel, jeff imle said very clearly what we need are very straightforward things. so, we will step forward and much more aggressively provide the kind of risk capital that will be needed to get projects moving. secondly, we will use our 70 years of experience to take the lead on project preparation of what we know are many, many bankable projects in africa. you know, for me, having now had the chance to travel many times to africa, and specifically as the world group bank president, i can't help but think of my own life which started in 1959 in south korea. i was born in a country that recently had gone through a war. it was one of the poorest countries in the world with a gdp per capita at that tim

we have given over $70 million in financial aid. we have been going out to our friends and alumni trying to raise tuition. because the tough region, probably four or five regions, that students accept our invitation. so we realize this completely. the major problem is the decrease in state funding over the last many years for institutions like ours, so it behooves us, the leaders of institutions like ours is to really go out and to make the case to the country, to the state that education is top priority, education higher education. for is country, especially higher education is critical to making a country abundant in terms of human productivity, social environment of the country. so a major issue for us is making sure we have financial aid for students so we can bring everybody under the spectrum to the university of illinois. >> the annual budget for the university of illinois, $2 billion. endowments you get about $2.8 billion and alumni bringing in $108,000. >>> and the conversation on the role of national security administratio

effort to cut financial support for isil. the one key thing about syria and iraq is that they're leadership have a couples. they're government have a couples. >> i think that's such an important point that people really miss. this is the military thing. we'll solve it with troops or bombs, or it's this sort of thing. we'll solve it with the ideology. lots of this is about governance. if the governance cannot deliver to its people over the government, then you're creating spaces where it can grow. >> you heard my conversation with david cohen. you know david. you and him have talked about his efforts in iran. look, we don't know how iran is going to end up working out. but if it did work out that iran respects its agreements and peace comes to that part of the world, it will have been a very different situation than what the u.s. treasury is trying to accomplish with isil. iran, for whatever you think of it is a member of the world community, banks through the world banking systems. needs dollars to sell its oil through market

that's what financial inclusion is about. not only about doing well, it is about doing well and doing good at the same time. most companies who benefit from it. if that's what you are try doing, i believe that cash is actually a hugely expensive medium of exchange, created hundreds of years ago and has a reason to exist in today's modern economy. that is printed and distributed and my colleagues from the bank are pick up with trucks with two people and if you have 1% of the truck cashed as a bill. you need people to check it. and then, all of the tax evasion. you are talking about taxes, you cannot pay taxes long-term without a large preponderance of tax in the economy. third, you can't have a great deal of activity without cash. if you kids go to college in this country, drugs are on campus. those drugs don't come in the shape of a city card credit card. >> i get it. i get it. so just think through the role of cash and through the trance parn sieve electronic payments and that is the idea of inclusion and what james was sayi

like any good financier, but if i do this on a much larger scale? so he makes a few phone calls, finds eight investors to give him $14 million to do it while run. the thinking is et continue with his $14 million what he's done with his own money, 300% returns and what not, then he will do it even bigger for the 14,000,014,000,000, a second round with 40 million bigger and bigger. the problem is that, there are severasober problems, one of whe great recession occurs, and then encounters many problems along the way including the theft of some of this paper, which i chronicled in the book. >> host: so basically before that o are while that's happenig he is in a hole. these out some about. he's got investors on the other side, they want their money back. you visited a couple of these investors. what was their stake in this and how much were they pressuring him and how much was it a portion of their own money? how much do they even care about what happened really? >> guest: it's funny because i did want to meet some of his investors and get a sense for w

that's one of the largest acquisitions in history and you are talking about a pillar of the financial world and they are basically saying we don't have this paperwork so the mistakes that are being made are not just happening at the very autumn of the food chain where you have the street hustlers in buffalo. there's easy there is easy to become every reason to believe it's happening and my assumption going into this is the banks aren't good to make mistakes like this isn't a safe assumption to make. >> host: one of the reasons i think it is so clear you are coming at it not from the of the ground up from this underworld and the individuals and how people are impacted. the stories that surround washington mutual trace merger and everything happening during the financial crisis of 2008 has come into focus being this sort of thing happening with mortgages. with attachments to mortgage loans being lost. you bring up that this is and has been going on not just in the mortgages but throughout this entire credit spectrum of the credit cards and other types of data as well. >> guest: i think

synchrony financial.nagage with us. >>> heading into earnings week, so far this quarter, analysts have cut outlooks in the s&p 1500 and next guest says negative sentiment is good for the market. let's bring in paul hickey. nice to see you. analysts are a contrarian indicator? >> yeah. the worse. analysts haven't been this bearish into an earnings season since q2 2012 reporting period, over two years. what you find is looking back at the quarters, revisions, the's been 15 quarters where negative revisions have exceeded positive revisions and s&p 500 in earnings season through walmart's report up 80% of the time. average gain over 2%. median over 4%. conversely with seven quarters where sentiment more positive revisions than negative revisions the market is only up in earnings season three of those seven times with an average decline of 1.5% so when you -- you know, may not feel good the negative sentiment but for a bull better to be going it alone than analysts at your side. >> this extends to individual s

in the financial industry.eaking of the financial crisis, the u.s. and britain are playing financial war games this week, participants in washington are simulating a financial meltdown like the one we saw in 2008. they are going to plot out the best way to communicate in case an institution that is too big to fail, well, you know, fails. with new regulations in place since the crisis, regulators are trying to insure any future response can avoid hitting up taxpayers for a bail out. now, the simulation will test how well top financial regulators in the u.k. and the united states can handle the collapse of a multi-national bank. now take the case of aig. not quite a bank but required a $184 billion government bail out in 2008. it was a london-based financial services unit of aig that was largely to blame for igniting the worst of the financial crisis, its financial services unit sold unregulated bets on debt obligations that ended up declining in value crippling what was then the largest insurer. that one case he

a failing financial company rescued by taxpayer dollars, our money during the financial crisis. want $40 billion more in basic bailout money. former congressman barney frank will join us to break it all down, but first we also have breaking news back on regular old wall street. hampton pearson has the cnbc market wrap. >> ari, yeah. we had the markets really getting hammered today. the biggest one-day drop in the dow this year. more concerns about the economic slowdown in europe with help expected by the european central bank. the dow mruplunging. 3535 poi 335 points and the the nasdaq closing down 90 points. that's the latest from cnbc. than i'm equipped for, because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. ready to plan for your future? we'll help you get there. sweet charmin!!!softness... take a closer look at charmin ultra soft and you'll love what y

. >> announcer: this is america's number one financial news program. "on the money." >> here's a look at what's making news as we head into a new week on the money. >>> america's unemployment rate stands at a six-year low. the jobs report show that the economy added 248,000 new jobs. that was better than expected. the unemployment rate is at 5.9%, the lowest levels since 2008. that set stocks off to an open after a rough start. correction territory this week falling 10% from its recent highs. imves investors in the u.s. were disappointed after the european central bank didn't do as much as it hoped. the bank will start buying private sector bonds later this month. but there was speculation that there would be an even more aggressive policy. >>> imagine this, your net worth is somewhere between 1.1 and 2 2 $.3 million. you make a hefty payday every time you give a speech. you think you'd have no trouble at all refinancing a mortgage. well, not the case. bernanke told that story during a speech this week and get this, he said it wasn't a joke. it illustr