tax a lot of hazard and were huge on moral hazard the wind institution that was allowed to fail was lehman brothers and the reason why it was allowed to fail is because they were cousins and members of the bush family were very senior in lehman brothers and if they had bailed it out it would have been a political disaster and so i don't think so i just said it i think so yeah but oh ok so you're i mean this is an opinion and i take on it was the lehman brothers was allowed to fail because they were just the least powerful of the of the banks but they were saying that there were members of the bush family who were at that bank and so in a way it was their very connection to power i was talking about prescott i mean he was back when it was brown brothers harriman back i don't know even like their cousins and then you know the bushes the like the kennedys they're salted everywhere it's an interesting theory of mark your thoughts on i mean i i think my my impression too was that they had the least amount of power and they had the least amount of clout i mean in the there's a lot of despair tre

has to be revealed and that chaos was revealed for example has happened worldwide it was revealed lehman brothers but i don't want the pain but what i recognise is that the sooner we take the pain in the correction and the adjustment which is inevitable the sooner we'll get back to sustainable prosperity which is best way to to fight poverty surely the justification for bailouts is that they are a stabilizing mechanism. well people just desperately do not want pain and i include politicians and economists and that of course the public as well but really the whole economies right around the world has been painted into a corner you know we've had cheap interest rates artificially cheap interest rates and consequently a great flood of new money the choice now is going to continue having a flood of new money which you can see at the moment is the choice with q.e. although there are modest quantities either keep having new money and ultimately that will lead to inflation and probably accelerating inflation or you stop accelerating the supply of new money and you take a correction now neither

>> i tell my wife, we sell a million books, we'll break even on our lehman stocks.ter] david: all the focus is between the president and boehner, but you're looking at another negotiation that's happening between the vice president and eric cantor. tell us about that. >> well, if you think about 2010, there was a ton of political damage done to the president and to the speaker. they failed, and i think really they're trying to spread out the risk here. if you notice, the last ten days the vice president's been mysteriously quiet. keeping him quiet's a little bit like trying to quiet the arab spring, i might say. david: that's a good point. if the vice president is quiet, somebody's sitting on him. so he is negotiate withing now with cantor? are they coming up with deals that we haven't seen in the press yet? >> they have accomplished a lot more than we think or know in the press. i think what's happening now is as we saw in europe last year, the most dangerous thing for the markets is when politicians start communicating through the press. and investors watchings ri

i want to welcome jessica lehman to our community. she has been a leader in the alameda -- for many years. she's here totally on board with senior and disability action. it is huge. welcome. in the last survey we had from hsa, was an astounding percentage of seniors that get out of the rooms per month, 3-4 times a month, 60-70%. an amazing number. something a revelation to me. in 2005-06, i was on a panel in tenderloin. there was an elderly chinese woman in the room. the third person to speak with the police officer. he said, how many people in this room can understand what i am saying? four people raised their hand. we had been certain there for 25 minutes. people are polite. 40% of seniors will not hear what you're saying. just because we are communicating does not mean people are hearing. the last thing, i urge you to bring this to the long-term care coordinating council. housing is not on the five-year plan. we asked them to be on it. what are the priorities for seniors and people with disabilities? sro housing needs to be there.

so there's less global systemic risk, less lehman like risk.been acting poorly along with oil. so a lot of the economically sensitive under -- indicators are deteriorating pretty fast in the last month or so. >> guys, trades base on what he said? >> he mentioned systemic risk going down. i think central banks have done a good job of reducing systemic risks. my problem is the market here is earnings and revenues over the last two quarters have been weak. when you buy stocks you buy a stream of cash flows represented by earnings. i just don't see the bullishness putting all the fiscal cliff stuff aside from the corporate results. >> i completely agree. i think there is plenty of liquidity. what they did in europe was take pressure off banks. now you are seeing distressed assets get repurchased by their rightful buyers. the systemic risk thing is not things. thing is the earning recession or earnings cliff. i agree if you named the number one risk factor for u.s. stocks going into the year, the revenue growth game is over and it is really of it to

office max got caught up in the terrible lehman bankruptcy. they had bonds backed by lehman connected to the sale of certain timber assets. the bankruptcy courts resolved this in september. office max debt was reduced by about $735 million. big deal considering it's only an $860 million company. two weeks ago we learned about the ipo of boise cascade. what a great old name. a private company that made paper, corrugated containers, wood products and building materials bcc. used to be a big position of mine in an old hedge fund of mine. i was able to swing around a couple of them. 100 mill. office maximum owns 20% of this company. ipo will unlock hidden value by putting a hard value on that investment. office max is supporting the sale of its crocksley business in new zealand which is a wholesaler that does some manufacturing. we should hear about when the company reports its fourth quarter. that won't be until early next year. impending boise cascade ipo, new zealand business, it became apparent that office max was worth more than people had th

recognition if this bank was allowed to lick quick date, you would have the lehman style of effect. but the amount of money and care that has been taken in order to stop it from happening is immense. there has been something like 50 billion worth of you'reoes pumped into the bank. parts of the bank have been sold off. one which went to china,, so hopefully problem solved. >> we hall see. tanya, thanks for the explanation. thank you for watching "bbc world news." we've got a lot more to come, including, well it's odd isn't it? nowhere for muslims of athens to pray. why the greek capitol still doesn't have a mosque. at least six people have been killed by a tropical storm in philippines. that was just weeks after a typhoon hit the country leaving more than a thousand people dead. torrential rain and flooding continued to hit the area the charity reports. >> another devastating tropical storm in the philippines just weeks after a deadly typhoon killed over a thousand people in the south. residents of the central eye lands are grappling with heavy rain and flooding. in another pro vens,

. >>> college hoops, jake layman goes in for the jam and it's a slam dunk, lehman with 10 points tonightter another freshman, seth allen. gets the rebound, up court and he sees his man, nice lefty bounce past to dez wells and dez wells up ended, kind of a scary moment, but wells pops back up and part of an antwon play, terps just playing with the hawks tonight. nick faust for the alley-oop, maryland a blowout, 100-68. next up south carolina state saturday. >>> virginia hosting tennessee. 1st half kevin jones drives, nifty pass underneath, for the easy buckets, cavaliers by 10. jones very much excited and has every reason to be. 2nd half joe harris inside, mitchell twisting lay-in. mitchell and harris led the cavs with 13 points. virginia defeats tennessee 46- 38 to improve to 7-2. >>> finally the nhl and players association met and exchanged proposals today. commissioner gary bettman says he's pleased with the process. we are now in month three of the lockout. brian is back to wrap up the edge right after this. >>> hi. wire the cantrells -- hi. we're the cantrells from spain. we'd like t

and successful firms included fannie mae and freddie mac, bear stearns, lehman, merrill lynch, citigroup, wachovia, ubs, aig, and wamu. with variations they exhibited similar shortcomings in organization, governance and management. many of these institutions had become so unwieldy that they were virtually impossible to manage. managers may have profited from organizations of $1 trillion or more, it is not clear that this massive size benefited marketed the efficiency or the financial system or firms that failed their shareholders. we forget how large our financial conglomerate actually are. in 2008, citigroup with 350,000 employees and 20,000 subsidiaries the complex financial institution. aig, stronger than most of the major firms comprise 223 companies that operate in 130 countries and 116,000 employees and in my book i try to share with the reader exactly how complex these firms are and the aig chart, they are really small compared to our large complex financial institutions, take the four pages of fine print and a huge number of organizational boxes. we -- governance, compound and or

capital which is quite a substantial amount and it's all come about because of what happened with the lehman brothers back in two thousand and eight they don't want another catastrophic disaster to happen and we know it's still rumbling on now in terms of the financial crisis is to avoid up once again but it seems like it's not working to make. basically the system is failing before actually even launched yes holker start really is and the concerning thing is that the result is the european banks that are the most vulnerable and that's because on their balance sheet they simply have more lives than american banks also if you consider in the european union you've got twenty seven figureheads finance ministers all trying to get their policies across and they haven't managed to come to a unanimous decision on how they're going to enforce these rules the logistics the the practical notion of it all right so where does the leave the struggling banks and what can be done well the problem is the smaller bangs there's a fear that they will be eaten and that's because there's going to be consolidatio

debt ceiling imbroglio in august of two thousand and eleven the dollar actually strengthened when lehman brothers failed in september two thousand and eight the dollar actually strengthened its safe haven currency and when there is a crisis. even if we caused it ourselves in the united states there tends to be like toward the dollar rather than away and that could happen again at the beginning of next year if indeed we go off the fiscal cliff in the longer run. all that chaos surrounding u.s. fiscal policy and questions about whether we can get our house in order. that's not going to be good for the dollar. looking out over a longer period i do think feeling. aggressive our fiscal problems would be dollar negative ok so then let's talk more about this because we could add to what you point out is the strengthening of the u.s. dollar after these events that you would imagine would negatively impact it add to that that we've seen three years of quantitative easing and we haven't seen a dollar collapse there the dollar crisis that some predicted when they were seeing the fed issue all of th

for the most part people who enge in this are really severe lehman tally ill -- mentally ill or a severee disorder, there is a sexual component. that when you are eating somebody like in case of police officer who was looki for -- the new york city, roast for thanksgiving there was a sexua component. it can feel erotical most like an orgasm. i am good, you are evil, i am eating you, i am putting you out of your misery. >> possessing their life force, possessing their psychology, that is pa of that, but also look at what is happening on the streets with those scenes of cannibalism, people are taking the bath salts that are psycho stistatement rattle that there deuces strength that is why police cannot subdue some of these people, that is part of the process too. lou: let's turn, i think the saying goes, i have had quite enough of that. >> talk about finances. lou: in a way, turning to fisca cliff, watching joh john boehned president obama, play out on a national stage, a game that i'm not sure that media gets or perhaps they. as astute as they are. this is risking everything for a lot of

>> post lehmans, it was bumpy and it was the deepest, longest downturn we've seen in the history of thendustry. but we actually saw in certainly 10, 11 and 12 is some pretty good growth. what we did see, which was interesting, was leisure travel, even in '09 which is that terrible year. demand for leisure room nights went up in our business. and i think it just shows that travel is part of everybody's life today, whether it's for business and we know all about that or even in personal travel. somewhere in the mass low's hierarchy of needs, travel has gone up. >> what's revenue per room, where does that stand in comparison to before lehman's? >> it's hard to answer that because it varies by market. we saw significant growth in asia, particularly in china, double digit growth even though supply was growing fast. what we saw in europe and the u.s., we saw supply growth was restrained because there wasn't bank finance and there still isn't which means rev par is growing 6%, 7%, 8%. so it's been quite a strong market and total revenues have grown, as well. demand has grown, we've seen a robu

that is when lehman brothers was 31-1. is when lehman brothers and bear stearns are in better financial shape you know disasters ahead. tracy: gerri willis talking about this tonight. gerri: we are going to be talking about a chicken tonight on the show that is endangered because of drilling. you will want to hear about it. [talking over each other] ashley: grilled or barbecued. [talking over each other] tracy: watch the willis report at 6:00 eastern on the fox business network. ashley: a very small code. not that expensive. [talking over each other] tracy: on deck, oil below $87 a barrel. how low will lay go? live from the cme next. ashley: planet earth, spectacular new photos taken from space. that is next. as we do every day we look at those 10 and 30 year treasuries. we will be right back. want to try to crack it? yeah, that's the way to do it! now we need a little bit more... [ male announcer ] at humana, we understand the value of quality time and personal attention. which is why we are proud to partner with health c

top of that we have a debt ceiling crisis, we're going to leash an economic hell that will be like lehman. >> my reaction, the sense of this, it is why i'm relaxed going off the curb because i never believed we would hit the month and month and a half. and now if i'm wrong, you and i are both staying up nights. but my sense is that all capitol hill needs is being off the cliff for a day or two. and those people that are preventing boehner from getting something done now will all sit in the right corner and allow boehner to put together the right vote package to get something done in the first week that we're off the curb. >> i think you're probably right. and i think the market thinks you're right. that is why you're not seeing huge panic. but the only thing that makes me worry, is boehner's recent travails, if he gets weaker, but i don't expect that to be bad. it should not be horrible. >> ezra, i think you should sleep at least the first three days, off the cliff, and then we can start to get nervous. ezra klein, thank you very much. >> you're welcome. >>> coming up, a republican will t

for the most part people who engage in this are really severe lehman tally ill -- mentally ill or a severe that when you are eatin officer who was looking- f the neving there was. can feel e an orgasm. i am good, you are evil, i am eating you, i am putting you out of your misery. >> possessing their life force, possessing their psychology, that is part of that, but also look at what is happening on the streets with those scenes of cannibalism, people are taking the bath salts that are psycho stistatement rattle that there deuces strength that is why police cannot subdue some of these people, that is part of th goes, i have had quite enough of that. >> talk about finances. lou: in a way, turning to fiscal cliff, watching joh national stage, a game that i'm not sure that media gets or perhaps they. as astute as they are. this is risking everything for a lot of people. what do you make of it? and their attitudes, their demeanor? >> it sounds like everybody is trying to be right, that is interfering with negotiating that needs to happen for what is best for our country and the people who live

chris adams is chairman and ceo of sharely lehman. thanks very much. >>> straight after the break, we take a look at whether chinese companies are helping iran break u.s. trade embargoes. details when we come back. >>> welcome back to "worldwide exchange." i'm kelly evans. the show is from thshg this morning and these are your headlines. with the hours ticking down towards the fiscal cliff deadline, china's manufacturing activity hits its fastest pay in a year and a half. and as we head towards the end of the year, global markets hook up some decent returns. outperformers this year include german, japanese and hong kong shares. >>> if you're just tuning in, thanks for joining us this morning. we'll give you a look at how mblths are faring ahead of the open. the do i jouns is poised to shed about 70 points for the open, 10 for the s&p 500 and 13 for the nasdaq. these figures are off the lows that we saw friday evening and even over the weekend as the first sense of fiscal cliff failure negotiations are becoming a reality. germany is cl

no question it is stressed but keep in mind that, you know, lehman brothers failed. freddie mac and fannie mae failed to the tune of $150 billion. fha has been actually a source of purchase money, transactions for the american homebuyer. but to your point, melissa, you're absolutely right in terms of past years. in 2006, 7 and 8, lenders took advantage of the fha. they drove fico scores, credit scores very low. there were bad programs were allowed in the fund. melissa: wait, they took advantage of the fha? how do you do that? >> well, you take advantage of the lowest credit scores that the program allows and you don't put any overlays in it. melissa: but whose fault is that? yeah, raise the credit scores. >> right. melissa: the problem is shaky lending on all fronts and you know maybe if this were a private company that had to answer to share hold or was at risk of going out of business they would think more carefully about the kind of loans they were backing? >> i think you're making an excellent point. it is reflection what happened in the broadly in the housing fi

in 2008, when lehman brothers broke down, and the others followed and had to be bailed out by you, what happened was the united states of america lost its capacity to utilize its trade deficit in order to recycle other people's profits. if you look at the data analysis, and i am doing so in the context of the second edition of this book, you'll find an astonishing empirical datum. the united states is producing 30% less demand for the world's manufacturers than it was in 2007. 30% is a big reduction. at the same time, remember recycling? the rest of the world -- whereas in 2007 they were financing the united states corporations to the tune of $500 billion a year, and now they are taking out $50 billion. so, america is not producing demand for foreign manufacturers and foreign manufacturers are not sending their profits to united states. 56% reduction in assets held by non-u.s. residents in the united states since 2008. so, that loop that operated so magnificently has broken down. the reason why europe is in such a shambles and the reason why the dragon is angst-ridden in china is we hav

it took this failure of lehman brothers and a collapse to really deal with what we were dealing with2008. look. markets aren't perfect predictors but they're telling us something. >> neil, you wrote something that i found interesting. a point i didn't hear anyone else made. from the column, what's going on right now is kabuki theater but they're actors in the play, as well. not just the audience. their role is to be a sort of forcing mechanism of their own only when they start to panic will there be pressure on lawmakers to take some hard votes. so interesting take. i sort of agree with that but does that indicate we would be in a better place if the markets were freaking out? >> i think the negotiation would be further along. we are in the stage of proposal and counterproposal. there may be things behind the scenes we are not aware of in ç public, at least, this is a very early stage and considering it's three weeks away. we don't have time. christmas holiday in there. >> you are saying the markets still could freak out? >> absolutely. i mean, getting to the end of december and no

it was the day that lehman brothers collapsed. that morning, though, i woke up and got the newspaper and it said "black monday." and i just went, oh, well, we're done. and people say to me "you're so smart." i said it's not smart. i was like whoo. so close. it could have been so wrong. >> rose: so what do you do with all the money?. >> i've bought a lot of art. >> rose: have you really. >> i've got -- >> rose: what do you collect? >> i bought bacon who's a great friend of mine, francis bacon. >> rose: you knew him well. >> i was around him but i never really spoke to him. >> rose: lucian freud, did you know him well? >> i got to know him more. >> rose: i once had lunch with lucian and talked about bacon. it was the most amazing conversation i ever had with an artist. >> rose: >> he's such a great guy, lucian. when i first met him i did the fly piece and he said to me "damien, i think you may have started with the final act." >> rose: (laughs) >> you're never going to make a good piece after. that. >> rose: speaking of final act, t

. >> is this any way to solve the biggest threat to the economy since lehman brothers? "fast money" starts right now. >>> live from the nasdaq market site in new york city's times square, i'm melissa lee. back from the brink. from b of a to yahoo! stocks, are suddenly the comeback kids of the fourth quarter. we're separating winners from losers. >>> plus, sell signal. if insiders are heading for the exits, should you be, too? >>> and we're talking real estate and the fiscal cliff with dolly lens. but first, let's get straight to our top story, and that is the haggling in washington, d.c. president obama's meeting with house speaker john boehner this hour. john, what should we expect? >> we expect the meeting to last something less than an hour between the speaker and the president of the united states. a republican leadership aide told me the meeting is taking place because a shakeup is required in budget talks, given the inflexibility of the white house. question is going to be, what is that shakeup? the speaker wants and republicans have been the demanding more detail

cult of equity because people are getting older, because they are conservative, because of 2008 and lehman brothers, all that suggests that investors these days are more conservative. do i regret that? no, because that's exactly what's happened. we have not suggested that stocks won't do well. we have suggested that people who have been invested in as many stocks as they have in the past. >> bill, enjoyed the conversation as always. have a happy and healthy one. >> thank you. you too. >> bill gross. wise? >>> first of all, how do you not like the guy and respect his thought process. he's outperformed with just a massive amount of assets under management, but what i would like to know is what is the variable, you sort of got to the question in terms of what would make him more positive on stocks, i think the low return environment is the expectation and if the economies improve, and i see them improving in the back half of the year, we'll get the flood from bonds into stocks. >> ahead on "halftime," he's one of the most accurate forecasters. why jpmorgan's tom lee believes the bulls will ta

you see it in a kind of industries, be at lehman brothers, be it large corp. delivering a service that is multinational. when the administrators lose touch with the front-line folks, that is when bad things start to happen and that is when the accountability becomes a problem because there is no transparency and that was really the impetus for writing "unaccountable." >> guest: as a hospital president and my struck by the fact that if you want to know where the issues are ugoda the front-line and you go to the operating rooms. but why do you think that we, and many hospitals, perhaps there has been a separate differentiation are defied if you will between administration, doctors, and does it have anything to do with incentives. we talked a little earlier about this so what do you think? >> guest: i have seen both extremes in the united states and the talk about both extremes in the book. i recently learned an emergency room that was built that was freestanding with no hospital attached to it. can you imagine if you had a heart attack and you go to the emergenc

you use the amount kinds of industries, via lehman brothers, be it a large corporation delivering a service that's multinational. when the administrators is touch with front-line folks, that is impacting starts happening. that's in the accountability becomes a problem because there's no transparency and that was the impetus for writing "unaccountable." >> host: at a hospital president, i'm always struck by the fact that if you want to know where the issues are as you describe, you go to the front-line. go to the operating nurses. but why do you think in many hospitals, perhaps to become a separate differentiation or divide if you will between administrations about and does it have anything to do with incentives? you talked earlier about misaligned incentives if you will. so what do you think? >> guest: i've seen both extremes in the united states and talked about both extremes of the book. i recently learned of an emergency room of his coat is freestanding with the hospital attached to. can you imagine if a heart attack in the emergency room and they don't have a house of achieving. they ha

and a white coat, she was in touch with the front line providers you see in all kind of industries lehman brothers the large corporation delivering a service that is multinational call when the administrators lose touch with the front line folks that when bad things start to happen and that is when the accountability becomes a problem because there is no transparency and that is the impetus for writing that accountable i was struck by the fact that if you want to know you go to the front line you talk to those providers, you go to the operating room in many hospitals there's been a separate differentiation or divide the administration's doctors and does it have anything to do with incentives to talk a little earlier about misaligned incentives both extremes in the united states and i talk about both extremes in the book i was in an emergency room that was built that is free standing with the hospital attached to its can you imagine you have a heart attack patient you across a floating bridge because that is this is the it possible that the at and patient at this happens this isn't right w

and you see in all kinds of industries, be it lehman brothers, a large corporation that is delivering a service that's multinational. when the administrators lose touch with the frontline folks, that's when bad things start to happen. that's when the k accountability becomes a problem, because there's no transparency, and that was the impetus for writing my book. >> host: i'm struck by the fact if you want to know where the issues are, as you describe, you go to the frontline and talk to the providers, go to the ed, go to the operating room nurses. why do you think that we've -- in many hospitals, perhaps become -- there's been a separate differentiation or divide, if you will, between administrations, doctors, and does it have anything to do with innocent? if you talked earlier about -- anything to do with incentives? what do you think? >> guest: i have seen both extremes in the united states, and i talk about both extremes in the book. i recently learned of an emergency room that was built -- that was free standing with no hospital attached to it. can you imagine, having a heart att

. >> at that point, mf global was different than lehman, it was different than aig or any of the firmsailed. because, at this point, customer money was missing. >> the core rule of this business was this thing known as customer segregation of assets, meaning that the firm kept its money in assets and its customers' money in assets separate. they weren't supposed to get mixed up. well, guess what? they did. >> smith: what we hear from some people close to mf global is that the... we don't know what happened to the customer money because the last days were too chaotic, too much confusion. do you buy that? >> no, in our industry, putting your hands on customer funds takes some deliberate actions. you have to make an active decision to convert those funds. and i think that's what happened. >> smith: how much money is still missing? >> i think it's a little over $1.5 billion. and it's not missing, it's at j.p. morgan. i mean, we know where the money is. >> narrator: j.p. morgan was mf global's banker. investigators are now trying to determine if, in those last desperate days, mf global exec

equities strategist tom lehman and predictions for the new year. welcome back. >> thanks, bill, thanks, mannedy. >> what are you looking for in 2013? >> it's a continuation of the bull market, so, you know, we see s&p reaching 1580, but i think there's going to be some variations to this year. you know, the first is i think the economy will really surprise us both on housing starts hitting close to 1 million and credit finally easing, some of the things jamie dimon talked about this morning. the second is i think timing will be tricky. i think the first half will be potentially a period where the stocks could see a big selloff >> you like the second half a lot better. why? >> i think the second half is when the economy really strengthens, that you start to see the credit outperformance and the valuation gap closing, and i think we get much more conviction about a china recovery and europe exiting recession so those really support stocks. >> what are you basing it on when you say we'll see a recovery in the second half? what's going to spur that? >>

if you get laid off or let's say you worked for lehman brothers and you had one of these plans, you would actually not get paid at all because they went bankrupt in september. you're taking the credit risk. >> i think there is a broader legal issue. if i leave in september and can't collect that money that's due, that payment, that's money i have earned. the company has promised me. i think there is a legitimate legal question around this. >> and it does weird things to the market because all of a sudden instead of money coming in throughout the year, you're getting a giant influx of money that has to be invested in some way all at once. it's very strange. >> bob, ibm is just one company, albeit a large one. but if other companies went along with this and made a year-end deposit into accounts, what kind of liquidity boom would you see at the end of the year for stocks? >> you might see some kind of liquidity boom, yeah, i would agree with that. but let me tell you something -- they're a market leader in this area. ibm led the way a few years ago when they eliminated the pensions for new e

. >> the executives at aig, lehman brothers, bank of america, countrywide mortgage had nothing to do with this. this was all the government's fault. >> the government created the conditions where they did what they did, and if the government had kept a stable dollar you never would have needed this currency trading, default swaps and the like, so when you have a bad environment, people try to adjust to it, and the crazy things happen. in the 1970s, ail went from $3 to $40 a barrel and when we conquered the inflation and went back down, and we should do the same thing today. stable dollar, like 60 minutes an hour, thinking that changing minutes in an hour will help stimulate the economy, no. we need stability. >> gentlemen, you have very sufficiently filled eight minutes and i'm sure you could have filled 18 had we given them to you. >> two smart guys with two very different opinions. >> good to see you both. >> thanks. >> see you later. >> thanks for joining us. manpower survey shows businesses will continue to hire in the first quarter of next year with the fiscal cliff looming larg

and, of course, the most recently, most recently by the lehman brothers and bear stearns.other times when i think of her under what circumstances did bailouts make sense of? >> too big to fail or what to do about it, this is a more important, and even the volcker rule. i know we are in the heart of things. [inaudible] because they feel protected they take the risk. there's no doubt that they were protected on a grand scale during the crisis. even stockholders were being protected. very few cases were stockholders wipeout. so this is a big problem everyone is concerned about. and what do you do about it? and there hasn't been enough attention on this. dodd-frank bill has a section that says in the future no failing significant financial institution will be saved in the sense of the management and the stockholders remaining, particularly -- [inaudible] be put at risk. but how they going to do that? you have to override the normal bankruptcy laws, and they said the government, in this case the united states, which they already do for small banks, can step in. they will if the

a i g the government bailed them out out of lehman's. >> this was altered the all occupy wall streetas our occupy bailout? the treasury can claim victory. and the aig can also be cleared of toxic assets. it did not make any sense it was going to be a disaster but i do not know how the united states pulled out a profit but i would say congratulations. >> thank you, rob. you can catch rob black on our off go to our new channel. comcast 193 for the latest news, weather and traffic updates and on digital 4.2. and in the morning. >>jacqueline: he has been a chilly day today. will get even colder for the rainfall moving into the bay area. most of the rain is concentrated well into the north. with an increasing cloud coverage. let us take a look if the weather headlines. it is going to be chilly. not quite as it will as what we saw. but scattered showers today. dry conditions with the rainfall returning this weekend. let us take a look at futurecast. the rainfall over fairfield and the north bay coast. as we move towards 10:00, of vallejo and also towards the san mateo coast. as we go towar

ma and so i think congress included 722 to ensure that risk didn't blowback as it did in aig and lehman and bear stearns and others. but what we said is for those offshore guaranteed affiliates, substitute compliance can be the way to move forward. foreign regulators that are comparable and consistent, that's okay with us. and we are also saying we are not going to have any of those rules coming for some time. the only rules to coming on january 1 is if the dealer is dealing with u.s. persons which is more of a territorial u.s. person, not the guaranteed affiliates. and we're saying until next summer, let's continue to work with the other overseas regulators to sort through. so, narrow u.s. person will come into place early, say january 1, a guaranteed affiliates, we are dealing that, face compliance as well as substituted compliance. >> thank you. mr. cook, can you weigh in on the question also? >> sure, thank you. the commission has not yet issued its cross-border guidance. it's in the front of the 10 a force in terms of implementation of title vii. i do believe that what the task at