all right, larry mcdonald, what are they going to do to attract private capital that will ultimately government and the taxpayers the hell out of the mortgage finance market? >> well, larry, it's an absolute outrage that almost five years after lehman we still haven't addressed the most important part of the financial crisis. that's our housing system and fannie and freddie. the current bill, the corker bill, can be massively improved. the corker bill was kind of floated a couple weeks ago. the first key is do no harm. make sure we do no harm to the existing mortgage market in the united states. in other words, we don't want to create a peeviece of legislatio that increases mortgage rates because it wasn't thought through. we want to max shiz shareholder value. uncle sam owns 80% of fannie and freddie eequity so maximize shareholder value. free market capitalism, protect the capital structure of fannie and freddie, and not only that, companies around the world, especially the united states. >> i'm not sure i agree with you on that last point. losses have been taken, certainly by the

ashley: larry mcdonald joins us. we have lots of pictures of icebergs before you got here.rend worries you the most. >> you think about society. everybody looking at the fed. everybody looking at dual mandate. 90% investors couple weeks ago we would not see raise in rates. until you get 2% inflation and 6.5% unemployment. so it is universal conventional wisdom, very dangerous. because, i think socially, destructive side-effects, essentially going to push the fed out of this dual mandate before they reach that dual mandate. liz: i hyped you up. we just said, he sees some trend that a lot of people don't right now. what is it that you see that is disconcerting to you right now. volatility in traditionally, what should be safe investments. so, my whole career on wall street i never seen from 1980 to say, 2,000 i never saw utilities lead a market downturn that was significant. utilities, typically market downturns. liz: larry is one of the smart people at lehman brothers. you witnessed things that other people didn't see. you're waving your arms, saying watch out folks. you see

. >> larry mcdonald will tell you we have asset bubbles already in the market.it gets really nasty. my point is this, at some point the economy has to rest on its own. what the market is saying, it is going to sell. the markets are off of their lows. all i know is it well -- connell: why don't you telllus your eric schneiderman story. he is like elliott spitzer on steroids. executives are kind of lobbying to get some sort of congressional allegation against schneiderman. listen, investigate the investigator. the problem with this guy, he is completely political. he does not go after john corzine. that is essentially what is happening right now. i think it is 5050. i think he will send some sort of informational e-mail or letter to corzine at some point. his spokesman said nothing is in the works right now. this is kind of interesting. if you ask anybody, wall street hated elliott spitzer. dagen: he was a jerk. >> you try to get me fired like four times. what they feel is, well, at least spitzer went after everybody evenly. this was republicans and democrats. it

we have michael mcdonald, kirk weiland, gerald albright, peter white, brian culbertson. we have 40 headline artists. larryaham central station. it goes on and on. and incredible ports of call. there are no strangers on the ship. tavis: time goes too fast. we are out of time. you cannot come on and not pay me out with something. let me say goodbye. >> i want to quiz you. tell me if you can recognize. ♪ [singing along] different one. ♪ [singing along] ♪ [laughter] tavis: i got it. one more? >> let's see. ♪ got it. [laughter] you did not stump me. >> you are an encyclopedia. to hear allant these dave koz and more, the new project from dave koz -- the new project from dave koz is called summer horns. catch them sometime this summer. if you are on the cruise you may very well see me. i may come sing with you. >> you said that on television. invite myselfust on stage? >> yes you did. we will give you your own show. tavis: dave, i love you man. have a good night. thanks for watching. as always, keep the faith. onfor more information today's show, visit tavis smiley at pbs.org. join me next time with a conversati

mcdonald from the nice conversations lines. the fact. i would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.t. question more. the earth of the. three communities all over the world face a variety of different types of possible disaster scenarios floods droughts economic collapse all facts of life the twenty first century is the climate continues to warm and we remain attached to chaotic financial systems all probably become more common to make matters worse our society as it's currently structured is rather brittle and unprepared to handle such threats the big challenge of our time when confronted with climate change and economic chaos then is to create communities that are strong enough to endure disasters and sustainable enough to prevent them from tonight's conversations the great minds i'm joined by one of those people working hard to ensure that our communities are adequately prepared for the dangers ahead dr michael mcdonald chairman of global reason resilience initiatives executive director of health initiatives foundation inc ordinator of the global resilien