to pay back with the service provided to a stranger these services are advertised on the international time bank site. it was moved to the. troops anyone can open an account in our bank post and you can see some of them on the board. money is an old obstruction. it creates the impression that you can buy anything you like with it. when i pay you money for something i'm quite oblivious to the fact that you're a human being. once i've paid the money i'm no longer responsible for anything as far as you're concerned. nor do you have any claims on me. but i'm always mindful of the fact that i'm dealing with a human being that's where we exchange something apart from money or. time food restaurant is a temporary art installation but for some the concept of bartering has become key to survival in the midst of a global economic crisis. this big. english teacher talking on the show is of the ip customer of the time bank she earns an average of twenty five hours a month by teaching english to private students and they can exchange those hours for any of the services listed in the bank's database. among ot

not going to compete with the international banks and deutsch banks who will be the large institutions. but let me get your take on what's going on in terms of the masses. time and time again we hear an argument that depositors do not want their money used to take risk. you said they're not too complex to manage. so talk to us. why do people think then that deposit money is being used to take on huge risk when the depositors don't know what that risk is. >> if you really did believe that argument, and broke up the banks into what they used to look like, they would like like chemical bank or s and l's that were deposit guarantee. these banks took on a lot of risk, we all did. you have not eliminated the problem but doing any of this. the taxpayer is still on the hook if something goes wrong, and i'm not sure that's the lugs. -- solution. >> so what happens then if something goes young and the bank needs a bailout? >> the big banks talked about it and they have not filed a plan as i understand it, for a way to resolve through a bankruptcy top process, an orderly liquidation. i think there is a way to do that, but i think the main thing is that we have to be ca

times. second of all what caused this crisis? there is internal e-mails professor rose, from the banks saying let's make more money off of these areas to red line them. instead, they called them ghetto loans, that way we can rake more money from them. then they turn around and blame the guys that they hoodwinked in the first place. >> i mean, cenk, you got it 100% right. this is really a constant reversal. it's like saying any time there is a chance to create a fair and level playing field the so-called democracy that is being touted, they get up upset and say they're at a disadvantage. when you look at communities black, brown homeowners, find their property just by their location to be valued less historically and to the present day no matter the loan. when you add the loan discrimination many a merges and single black women in particular were given subprime loans even though they qualified for regular loans. this is a practice of targeted vulnerable communities, the banks knowing that they themselves would never have to pay for them and destroying whole communities, the long-term effect we haven't even gun to see. >> cenk: thank

instinct at a bank when there's a crisis is let's try to deal with this internally let's try to fix it and during that time regulators don't know about it shareholders don't know about it and they often get slapped with sort of a larger tsunami of you know information and crisis because that information has been hidden by the bank for so long and you didn't see it coming right and just in terms of you know you saying this is a relatively small settlement for shareholders is it material to bank of america i know they said with some other things they expect earnings to be lowered twenty cents or something is this something that is material from the bank i mean you know they'll easily overcome it i mean it's material enough that they'll be they'll have to announce it in earnings but it's i mean they can easily overcome something like that if you think about the fact that just for the bad mortgages that bank of america has they're paying two billion dollars every quarter just to service those bad mortgages you know this one point six billion dollars charge that they're going to end up taking is you know really

time ask out are saying by all. to a minimum. i . am. banks under rated the drugs were running its position in the international arena after posting a summit of the doubling of the nations of the international atomic watchdog piles up pressure on the country for stepping up and you get activity. as a zero bells its war rhetoric against terror ron we'll look at how a military in the pit is helping these really. population prepare for. a time. the triumph of the paralympics in london is overshadowed by a major sponsor accused of humility aging the vulnerable and forcing people of that . international news live from moscow this is the with me here thanks for joining us first to iran's taken steps to change its image as an international outcast one hundred nations have offered their support of its controversial nuclear program the final declaration of the summit of known alliance states hosted by tiran banks the right for all countries to develop and use nuclear energy for peaceful purposes while the gathering was being held at the you are a new global stock released its latest report accusing iran of increasing your brain richmond on a findin

fraud probably the first time in its you know multi hundred year history as the bank of england mervyn king went so horribly discredited doesn't the end even the back of international settlements the central bank of central banks is waving their finger at these other central banks and saying you guys need to stop committing the fraud isn't that worrying john oh yes it's all fraud governments lie all the major statistics that it really is you know in the us obviously everybody knows about them or unemployment inflation numbers being distort and interest rates of the same thing you know that they're they're lying to us about the fundamental reality of the economy in order to be able to keep interest rates lower than they would be otherwise because you know the bond markets actually understood what was happening you'd see interest rates spike around the world. just because they are in the peripheral euro zone countries you know people are figuring out that spain and italy can't pay their bills but we in the u.s. are just as bad a shape except we've been able to to maintain the fiction. that we're in better shape than a lot of these other countries and you know basical

weakening of the international competition and russia as you see the russian banks started to be more active in other parts of the world in europe in asia so i think that's a good time for us and banks to expand and that's what we should be doing now. now let's take a look at the markets will start with europe which right now is literally in that slice minute of the trade in session we see that it's still going higher mining firms that particularly well in the trading session today announced this five five as we got data that showed that magnitude one factor inside the trunk more than expected for the month of august in the rules are but as we can see there by the numbers it had no effect on investors in the few months ago about currencies closing figures for the group or there was a girl which is now gaining against the u.s. dollar when it comes to the ruble a mixed picture as you can see there at the end of the trading session now let's take a look at the russian markets there were employees the territory and they and that they're both the r.t.s. and the my cigs gained over one percent despite the volatility in the oil prices and now if we focus on the asia pacifi

weakening of the international competition in garage and as you see the russian banks start to be more active in other parts of the world in europe in asia so i think that's a good time for russian banks to expand and that's what we're. doing. well let's continue with the global markets and see what's happening in europe which is still trading right now coming into the end of the trading session we have the footsie and the bags both adding the footsie are over half a percent not all of us is despite the fact that we had some data that showed that basically manufacturing in the euro zone the strong by more than anticipated for the month of august having said as i said mining firms are doing particularly well there and it would take a look at currencies was that the euro still flat against the u.s. dollar when it comes to the russian ruble it's losing against both major currencies i mentioned the ruble so might as well take a look at the russian markets not the spine it's something in the oil price we see that russia investors are taking this all very well both the r.t.s. and the my six this hour again and over one percent but mainly investors here are focusing on the

weakening of the international competition and russia and as you see the russian banks started to be more active in other parts of the world in europe and the so i think that's a good timefor us and banks to expand and that's what we need to be doing. all right that's it from us here at the business that's for now back to you tabby. right thanks marina for that update joe we'll see you tomorrow yes you will ok right up with our top stories in just a couple of minutes you're watching our stay with us. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm trying hard welcome to the big picture. wealthy british style none of us no time to write in. markets why not.

weakening or the international competition and russia as you see the russian banks started to be more active in other parts of the world and we were up in the year so i think that's a good time for us and banks to expand and the thwarts me to be your doing. and that's what i have for you this hour is happy well thanks marina it will be interesting to see how bulgaria actually in the ural strengthened exactly and exactly but i don't blame them i have to say i'll be back with the top stories in just a couple of minutes stay with us. well . technology innovation all the developments around russia we've got the future. we're watching our t. here's a recap of the headlines single currency step back from the e.u. is most economically vulnerable nation bulgaria joins a growing chorus against the euro and dumps its long held plans to what dumped it. she of the world's largest armies those of india and china unveiled plans to work more closely leaving west some countries on the edge over they going influence in the pacific. and moscow threatens london with diplomatic repercussions if it confirms its move to ban dozens of russian official. from entering the u.k. over they alleged role

weakening of the international competition in the us and as you see the russian banks started to be more active in other parts of the world in europe in the us so i think that's a good time for us and banks to expand and therefore to me to be doing. that of course the main focus of this week will be the apec summit and we'll have lots of interviews live coverage from there coming up in the days ahead but for now about see it's happy well we look forward to that thanks for that update marina. right now with our top stories in just a couple of minutes you're watching our team stay with us. culture is that so much about mayors and i mean to say me it means a lot of people an area forward to a bottom up on the eve of the meeting of the asia pacific economic cooperation regional to what degree is the global economy now. download the official. cell phone language stream quality and enjoy your favorites. t.v. is not required to.

international bonds. i like for the first time in years bank debt type of funds where they invest in floating rate senior bonds which look relatively attractive versus traditional junk bonds. of course mortgage-backed securities around the edges that we're so expert in and finally, really safe dividend paying stocks and i mean really safe. i don't mean technology companies. i mean consumer product companies, cam pelz soup, craft. >> whats my expected return the next three to five years if i follow that strategy? what is my expected return? >> i think if you're a buy and hold person, will you be disappointed. you will end up with something around 5% or so at best case. this is a market where buy and hold unfortunately is completely out the door. this is unfortunately because of all of these policy manipulations and these wind towers of risk and the u.s. deficit and the european situation, people have to be more active than ever before which is really difficult for individual investors. you need to move to active funds. they're doing it for you or else you need help and an advisor that will help you. >> i

international banking system, so the obama administration. >> that's not true. >> they would say let's give them more time to work and see what happens. >> morea u.n. sanction in in two and a half years and passed one in four years. the bush administration for all the cowboy diplomacy had five resolutions. we have had sanctions since 2006. president obama and his team only decided to put oil sanctions in july 1st. guess what they did after that? they gave the 20 top oil producer buyers of iranian oil waivers. india is still buying iranian oil and the obama administration promised the indians a permanent seat on the u.n. security council, the u.s. support for that, so i just don't see that it is credible to say that the obama administration is trying to ratchet up the sanctions when after two-and-a-half years they are done nothing but decide to do last minute oil sanctions with waivers starting july 1st. the media needs to start looking at policies not just lip service from the president. >> i think they want mitt romney's policy. what new sanction would mitt romney put into place? >> no sanctions. we have enough sanctions. >> short of militar

time, not over here. if you're an international consumer packaged goods company, a far flung industrial, a global financial company or worldwide tech company you care about europe as much as the u.s. the european central bank'snified position among germany and the weaker countries, i'm calling it most heartening. your sales might rise, your earnings might gain. especially because a weak euro is hurting your profits when they translate to strong dollars. just the opposite might soon occur if this euro rally we're having right now has staying power. i'm not minimizing the nonfarm payroll employment tomorrow. it will play a role in how stocks trade. in fact, it might already be playing a role because we had precursors today. weekly jobless claim figures. they're all pointing to a decent number tomorrow. there is an intersection between plux and business right there that can matter to both politicians and traders. but investors? if you wanted some of the biggest gains these last four years, you'd invest in retailers and retail suppliers which have been terrific as you'll hear from calvin klein and tommy hilfiger parent pvh later tonight. if you looked at the friday numbers at the beginning of the month they miss

it's very exciting because it's the right time for this ipo because the country is very well perceived by investors. our bank very well received by the internationalnity. very successful. >> better this than the alternative, absolutely. how do you convince investors -- you have a new president elect that takes office in november. there are still worries about the social climate. how do you get investors past those worries? >> transition has been very good one. and it's going to happen -- some of the reform has to load better. seems to me the probability is much better than in the past. everybody is very optimistic about the country because of that. >> when investing in mexico, a lot of people think it's very dependent on how the u.s. is doing since mexico and the u.s. have such a tight economic relationship. so in terms of the business, what is the core of the business there and are you independent of what happens in the united states as a bank? >> yes, we are focused on the market. even though we have a bank operation, and asset management business, too. and insurance, too. retail banking is the most important at the moment. >> your parent compan

banks. .. fiscal adjustments needed for us to get back. equally, it may be tailored to the needs of individual countries. and to ensure a fair burden. at the same time from the internationalcommunity must recognize the huge efforts being made by these countries and provide them with the support they need, including financing. we favorably consider that this be done in a timely unfixable manner in order to ensure success. the last thing we want is for programs to be off-track. so how do we do that? well, we slow the pace of physical adjustments. it is certainly an issue that is in relation to portugal and spain as well. and we have our views about greece. second, by focusing on measures rather than targets -- when circumstances are such that the targets will not be reached. not because the country is lax about it, but it cannot be reached making sure that the measures are implemented. above all, in addition to slowing the pace of needed, in addition to focusing on measures, certainly what we are mindful of is that we should be clearly focus on growth as well. because we believe that the two are not mutually exclusive. in the programs can be tailored in such a way that some

time today. >> thank you. >> dan yergin. >>> up next an emotional win for the baltimore ravens, highlights of that game and others around the envelope. >>> international security breaches at two major banksate america on highlight. the ceo of reputation.com talks about keeping businesses safe. >>> and he's known for his reputation as a media and talent spotter, yahoo! board member and founder of activate, michael wolf will join us, then at the top of the hour, tim pawlenty, t. paw discusses his new gig as head of the financial services roundtable. 8:15 eastern, walter isaacson and former intel chairman craig barrett help kick off the education nation initiative. "squawk box" will be right back. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local curren