way into the calculus of china's policies growth or slowdown and multiple outlets are reporting john corazon met with officials from the department of justice last week this is close to a year after m.f. global failed we're not letting this news get drowned out by the fed we'll talk about it let's get to today's capital account. ben bernanke you gotta hand it to me announced essentially a q e until further notice policy today now with two trillion dollars of balance sheet expansion in recent years but still more than eight percent unemployment in this country and with the free market or at least the price mechanism a casualty of fed policy you may ask more combinations for what ben bernanke you made it pretty clear today when he said it was to affect asset prices. so house prices is one vehicle stock prices many people own stocks directly or indirectly the issue here is whether or not improving asset prices generally will make people more willing to spend. oh yeah perhaps we will have to see if that makes people feel richer dr bernanke you but we do sure know that the market has been addicte

hopefully there will be criminal charges a case something to at least try to bring justice to this put john corazon on the stand i want to see that but let's move on because i'm going to be seen because there is a new game in japan that's combining the virtual world with real life through food and farming take a look. at the quick beat it's a virtual farming game player. purchased tools and fertilizers and tend their virtual form what be aside from all the other games ritual farmers who receive real fruits from their daily work. so in the us there's farmville where you can do some kind of virtual farming but this is a virtual farming game where you actually receive the crops that you have virtually farmed in real life what do you think is the significance of this can you actually like her stories this is in japan because further north korea the long ago there was a korean woman the north korean woman who. call for memories she sure had a baby and she was busy on farmville feeding her virtual baby as she will but if you are a virtual baby in growing virtual vegetable that she forgot to feed her anal

whatsoever no public outrage whatsoever even though segregated customer accounts were stolen by john corazon and jamie diamond absolutely no prosecution whatsoever but i want to ask you about two thousand and eight for a second because back in two thousand and eight the total global financial system came to the precipice of annihilation but was pulled back when hank paulson went before congress and extorted close to a trillion dollars worth of dollars and what we found out in two thousand and eight is that the world needs dollars because this seven hundred trillion dollars worth of derivatives that are floating around the global banking system are priced in dollars and that any unwinding that happens. is requirement to require dollars to make that happen so there's just a demand for dollars and how do you square that circle john because as long as the situation is a teetering on the extinction they'll be a demand for dollars to on why the derivatives contracts that are causing the problem yes part of what is keeping dollars as strong now is that debt in dollar terms creates a demand for doll

they were before because they didn't have the interest rate structure to support them and they john corazon recognize this opportunity in the european dead and through a financial accounting gimmick he was able to book profits with this debt that he bought and sold to another entity and it was a kind of a way for him to boost his own revenues that of m.f. global well the come. he was really sinking and eventually the mark to market losses caught up with him as did a number of other you know a lot of other things but so in the neurosurgeon environment that we have firms can use the shadow banking market with accounting gimmicks to kind of produce revenue for them right right and sometimes profits leak out from the shadow banking system to the real economy right out of that work ok well let's consider how let's say you have a hedge fund how do investors get their money back you can have maybe dividends but that's not common but you have shareholder redemptions and so all the money that the hedge fund has booked and they have a lot of stuff that's probably maybe accounted for in dubious ways n

john lennon. >>> pobre. ♪. ♪. ♪. ♪ ni loca que estuviera. ♪ no te darÍa mi corazÓn ni por amor♪. ♪ no te creo ni lo que rezas. ♪ ni♪ no hay que con quÉ pagues por comprarte mi amor♪. ♪ no eres santo de mi

john lennon. >>> pobre. ♪. ♪. ♪. ♪ ni loca que estuviera. ♪ no te darÍa mi corazÓn ni por amor♪. ♪ no te creo ni lo que rezas. ♪ ni