they were holding lehman paper. lehman filed for bankruptcy and paper is not worth what it was before. it doesn't take a big difference, a big fall in value if you say, well this money market fund, they'll pay me a dollar. they have losses. maybe if i wait a week, i'll only get 99 cents. well take the dollar. why would you wait to get 9 the cents late -- 99 cents. what you get is a run on the money market fund. that is what you got. it's a big loss. they actually calculated, suppose the lehman brothers paper is worthless, how much our assets is worth. it was 97 cents on a dollar. it doesn't take very much. it's just like a bank, actually. if you think they might not have the money, you want to be first one in line. this is a picture from the depression that runs on banks, you want to be there early. you want get your money out the bank. you feel bad for them but it's not going to make you wait until after they get their money. the run on money market funds was like that. there were no lines like that. money market f

was it the lehman a moment? as in a lehman brothers? meltdown? >> no. not compare it. -- market was also >> basically everybody fled russia, it was a big deal. international customers and political tensions. 10%.ed the preferred investors haven't been changing according to our own opinions. because of the customers are quickly entering the hedge fund. focused on the local customers. rather in ading longer-term view. it is because changes of reform and our russian infrastructure and measures to protect the important customers. improving and upgrading the level of trust. >> i wanted to ask about of ruble. presumably it is because it is current neutral. you can buy russian stocks in place like london and hong kong and new york and you do not have their ruble exposure in terms of the share price when you buy it. where you do here. the ruble has fallen quite a bit of this year almost 10% year-over-year. have you seen people trading russian stocks more in london or new york when they do not have to deal with the fickle neighbor -- nature of the ruble? >> we d

lehman is gone. >> bear stearns. >> mf global is gone.down and the firms are getting smaller. the firms that are existing, sales and trading people used to make ain. lucky if they make 300,000 now. they have wives. they have kids. some have mistresses. what i'm saying here. they have expenses and when you put, all that together, that is the recipe for this. i think that is the story. adam: except, and there is, you can't ignore the cluster and the suicides. on the other hand we've had financial downturns, people who worked at lehman, lots of these same kind of people lost everything they owned when lehman went bankrupt. there wasn't a cluster of suicide. >> there was a cluster of suicides in the financial crisis. not as big as this one i would say but people committed suicide. gentleman from bear stearns. i don't know all the people at lehman. maybe somebody did or didn't. there were people, gentleman at bear stearns around the madoff stuff. adam: but we're talking. >> and others. adam: hundreds of millions of dollars he lost with his cli

>> lehman brothers. >> you go girl. >> lehman brothers by definition wasn't too big to fail. , girl,ea.you go >> i heard him. this kind of thing happens every day. lehman brothers wasn't too big to fail, wasn't saved, but nearly brought down the financial system. it wasn't a commercial bank dabbling in security underwriting. how does that fit in? >> that was the last financial crisis. >> but what is to stop another lehman brothers? not so big as bank of america or citigroup -- >> lehman brothers was not gambling -- >> yes, yes, in another self, enough to threaten the money market industry and jaw must bring the financial system to its knees because of the interrelationship. >> absolutely. it was a nontransparent financial institution that was huge and too big. now you have an transparent financial institutions that are even bigger and take deposits friendstomers like our come as civilians out on the streets. >> i do think inside these organizations, i think those who don't realizeors it. take the london whale. do you actually think he believed he was going to be putting the bank at t

lehman brothers is making a hefty payment to date to creditors. lehman will pay nearly $18 billion, bringing the total to more than $80 billion since its bankruptcy filing in 2008. lehamns initial $22.5 billion paid to creditors in 2012, was its largest. the next allotment is expected september 30. bailed-out auto lender ally financial among a few companies eyeing an ipo. the u-s treasury filed plans to sell shares at $25 to $28 dollars per share in a $3 billion dollar deal. it would trade under symbol "a-l- l-y" on the new york stock exchange. meanwhile music- streaming service spotify could add an ipo to its playlist. news site quartz says the company has talked to investment banks about going public, this fall. among ipo-s already in play...shares of trinet group jumped 19% in the first day of trading. the payroll services company opened on the new york stock exchange under the ticker: tnet. it's a healcare related stock that is getting a boost from obamacare. king digital the maker of candy crush contines to get slammed in the market. the stoc

watch this video from tom lehman a kite surfer.hat's in the water. >> okay. >> he says hundreds of sharks. while he's out there kite surfing he's not strapped in. he doesn't have ankle supports strapped onto his board there, he said there were black fin sharks and bull sharks. there, look at that. see that moment there. reaching right out of the water and he's there among this kite surfing off of delray beach, florida, just with all these sharks all over the place. >>> you might remember we had another video from tom lehman last week where he was falling over a bunch and another kite surfer has to come over and rescue him, you do wipe out and end up in the water. notice his board, he's not strapped in, if he loses himself, who knows, now he's just swimming with the sharks literally. >> that must have been very horrifying, any wrong, false move and you're in the water with all those sharks. >> you're right. and even more horrifying because a friend of tom's named kurt hoffman was actually recently bit by a shark while he was out the

the other was ward lehman, lincoln's friend and self-appointed bodyguard. later on when the feud between the two of them had taken on real heat, lehman accused pinkerton of having fabricated the entire episode in baltimore to burnish his own reputation. most of the controversy about what happened in baltimore begins they are. and because pinkerton's operation was deeply flawed, there is much to criticize. a great deal of the information that handkerchief waved them all tomorrow is that it barrooms and in and other places where the telling of falsehoods and exaggerations were not in no. so if you're looking to pick apart the information he had gathered in the days leading up to this event, it wasn't hard to do so. but it's ridiculous to say as many others afterwards did that there was no danger of any kind in baltimore. of course there is danger. of course there is danger when abraham lincoln, the abolitionist minded president elect of the united states, the man who set a house divided against itself cannot stand set foot in a slaveholding state for the firs

so lehman brothers thinks it is better to do something differently he assumed he would be bailed out. and it turned out he was wrong and that was important but not fatal for writing it was a good thing and they should have let bear stearns fail and all of these firms fail because they were morally and ethically and financially bankrupt and the system should have been reformed but it didn't. why? because the said the everybody thinks is publicly controlled organization working for the people is not but owned by the banks. look cahill owns the bank the big banks' own the fed. that is exactly why they failed them out while there has been trillions of dollars pumped to as a top of the pyramid. why would she asked? >> this is not a surprise but the flooding and of capital into big banks but this is a golden age of wall street. why? it does not seem like it. they complain all the time. this is a golden age because after the crisis there is far less competition a lehman brothers are bear stearns nobody from goldman sachs that competes. jpmorgan chase paid $20 billion in fines and the ceo got

>> it is probably true they will not have anything like a lehman brothers moment because they don't haveal institutions and interconnectedness. it all goes back to the government, and the government can bail out whoever they want to. what they are doing is resetting expectations. a are leading some companies that deserve to fail, fail. to the pointget where credit is transparent and people understand what the rules are before they are able to open up the financial system to the rest of the world. >> would you agree? >> i would agree. i think the new group of seven that runs the company has already expressed what their priorities are. that is one of the reasons why we are big and health care there because this is one of the things there's going to be money spent on for sure, domestic. are you still cautious? what areas would you say that you have a lot of questions on in china? >> i suppose it will be mostly the ones where you still have very large government control of the company's -- companies. >> banks. >> writes of and i don't think -- and i don't think we need much of it for a while

islam, notice of all their ability and they started to use george soros diode techniques through lehmanbrothers, aig, citibank, gol dman sachs and the market it sounds like a conspiracy theory. the treasury secretary even came and said in his memoirs that if we don't all holdings now actually the russians did through the economic situation with the follow-up game plan. with the cybereconomic effect. not only through 20082009 but the chinese doctor in with the book called restricted warfare to senior kernels in 1999 said the best way to beat america at is the stock market crashed through the infrastructure or currency. saw not only looked at 2,008 but for word to what will happen in. i found the next diver wore we will face not shooting but cybereconomic in nature they don't want to take on the military we have now. that they will crash the american economy. it is not conjecture that is what vladimir putin said recently when he invaded the ukraine and said we will give sanctions he said you don't want to do that because i can crash your stock market and hack your financial system and dum

washington and regulators allowed lehman brothers to go bankrupt. right? lot of money market accounts that held bonds from lehman brothers. bear stearns reserved money market account primary reserve, not a dollar per share. those bonds are worthless. gerri: great job explaining. the whole industry went crazy. years later the federal government says will institute rules here, we will allow lot of people a way around the rules. the industry happy as clams, not other people. this is important, the aarp believes it would radically impact a money market fund. not just them. using a floating option would be burdensome. and then coming off the chamber of commerce, companies like boeing, craft, safeway make it less efficient, more costly. nobody likes this except the industry as well. >> the industry hates it. the sec wants the right. gerri: but they like the exception. >> the sec says let it flow. the industry is saying we want an exemption, we do not want this floating rate. it will be turmoil. the quotes you just read, you're going to create havoc. not a guaran

my name is janet lehman, and i'm a behavioral therapist and a mom. i know what it's like when the child that you love becomes a defiant, out-of-control child who disrespects you. that's why my husband james and i created the total transformation, the program that tens of thousands of moms are now using to turn around

. >> and this has just happened in the last couple of years will stop >> just in the post-lehman brothersousing crisis, we have seen that shift. if you had to pick the five boroughs of new york city, brooklyn by far is the most robust in terms of the sales market and rental market. >> if you were an investor looking to buy some investment property you are going to rent out, would you be looking to >> right now,-- if you look at the towers going up, and manhattan it is luxury condo. it is predominately luxury rental. the numbers in manhattan don't really work for new development. it's on the condo side. the question is is there too much new development going on and my guess, given the chronic shortage of supply and low vacancy, i think there is plenty of room to go. fact that rents are stabilizing right now, does that come as a surprise? we got a report today that the average wall street bonuses up 15% and it seems like the banking community is back on stable footing. with that correspond to higher rents? >> right now, you have a sales market competing with the rental market. 2013her words

a former lehman brothers investigator has been hired by general motors. jenner & block chairman anton valukas is leading a team of lawyers in a probe of the gm recall of 1.6 million vehicles gm is accused of knowing about the recall for 10 years before taking action. a faulty ignition switch is being blamed for 13 deaths. c-e-o marry barra is overseeing the process. the sec reportedly is investigating possible market manipulation by currency traders. bloomberg news says regulators want to know if currency traders at the world's biggest banks distorted prices for options and exchange traded funds by rigging key foreign- exchange rates. the sec and cftc declined to comment. failed bitcoin exchange "mt gox" is filing for bankruptcy. the move will shield the exchange from class action lawsuits in the short term, and allow the operator to protect its remaining assets. in february, hackers stole nearly 400 million dollars of the virtual currency, and mt gox caused a panic for customers when the site unexpectedly went offline. it's currently facing at least two

>> the biggest range of -- ateral heated byt has been the lehman brothers and we need to have the marketop simple, clear transparent things. -- enabling investors to look at the loan by loan composition of --. i think the framework exists. we need to develop that. with majorn working banks. we are trying to set up a new --e of >> talk to me about that. you have been at the vanguard of trying to push securitize a ation. how close are we to that? >> the technical work has been finished. we set up the framework. it is largely based on the characteristic that we are more developed in france and other countries, that is the rating of loans by the central bank. there is the basis to know what quality.erage asset everything is technically prepared. we need a few banks to start up the market and they are planning that of the coming weeks. we hope to see that develop at the end of this month. >> you have done a great deal of work on this model. >> it could become a major type of asset developing in the area. system stepelp the into the market. >> the benchmark that you use is 136 in terms of guid

lehman says it would repay competitors an additional $9.7 million next week. after that money is returned, lehman's critters will have been paid more than $80 billion. that represents a $15 billion increase from the bank's initial estimates of how much would be returned to competitors. the collapse was the largest bankruptcy in history. i don't know what that is -- i'm guessing there still might be a hole. >> it was important that they -- you know, they said we have to do this in an orderly fashion. people are mad that some of the same employees that have been there before are going to be compensated to unwind everything -- >> the body and -- >> exactly. >> let's get a check on the currency markets. managing director at pk asset management, boris, what's interesting to you today when you look around at currencies? >> well, i think the big stories this week and next week will be will the euro finally crack? what we're seeing in the market right now is basically all the major central banks towards a more normalized policy while the ecb is clearly mired in a deep

she abandoned the life of a lehman brothers banker to go back to the land as a chef.ame pay, not so much. at a restaurant she is preaching the gospel of natural eating, which includes killing your own food. she is out with a new book, "modern pioneering," then she is with us. tell us about modern pioneering. >> this is about manual literacy, things that our grandmother knew how to do, and making this more accessible. deking fresh mozzarella from scratch on the weekends, or picking up the red line at the of a bottle at a party in turning this into a popsicle or bad therapy, things like this and having fun in the process. >> what made you change from financial banking to being a coleman there -- culinary pioneer in t? >> i wanted to get things -- get to things that were more real and lasting rather than the manufactured virtual-reality we all seem to live in these days. for me it was using my hands again, and really getting back in touch. >> who is your target audience? >> it is like me, modern women who go on adventure getaways, they are busy professionals. they are do

it is a situation where we have known let's say post-lehman brothers, too big to fail, etc., so the bankse under a terminus amount of looking at each and everything. one thing you have to look at, is it a question of, are they keeping the capital and not lending it? therefore, their capital base goes up never want complaints about banks not lending. at least two of the banks has a "readjustment." submit their documentation police two or three times to see if it is a situation. lend ratherob is to than just to keep the money. that is what they been doing. >> are not going to have the same problem in europe? we're just months away from the aqr. we need much more lending in europe. it is very fragile. >> anybody from the bank of england down and u.k. says, yes, we are having a nice recovery. but it is not a consumer-led recovery. the simple fact is, if you're starting to worry about our interest rates going up, and i think we have 11.2 mean people in the u.k. that of mortgages. if interest rates start going up, are they going to be having to spend 200, 300, 500 pounds more? if we are going h

the lawyer who probed lehman brothers back in 2008.rafficonal highway safety administration has given them until april 3 to explain the decade-long delay. the company culture of slow information from the engineering ranks to the corner office. gm began investigating reports of faulty switches on in 2004. on march 4, the ceo said she didn't learn the situation until "of you weeks ago." industry experts explained it this way. at the old gm, people didn't push bad news up the chain. here is jeff green. >> ever since they emerged from bankruptcy, that is what they are trying to do. change the way they are thinking, speed things up. toyota had to look at the same thing after their recall. there is a lot of bureaucracy in automakers. engineers like to look at data. they like to think about things. they like to study and act once they know all the facts. in this case, it took them too long to know all the facts. we have to figure out why. has tohe top, barra change the culture of the company. in engineering, they just have to change the seats

noticed our vulnerability economically and they started using george soros style techniques to target lehman brothers, aig, citibank, goldman sacks, and they actually started using manipulative techniques in the market with the ins -- intent of crashing our stock market. sounds like a conspiracy theory but it's not. hank paulson, former treasury secretary even came out and said in his memoirs, the russians approached the chinese and said if we don't all of our holdings of american dead now we can krater the american economy. and in fact the russians did. the chinese did not, but the russians did and worsen our economic situation substantially >> you have a follow-up. game plan, how to protect yourself from the coming cyber economic attack. >> a part of my research i not only did what happened in 2008-9 but i got into the chinese doctor which is written in the book called unrestricted warfare published by the people's liberation army of china said. two senior colonels and the pla wrote this. in 1999 they said the best way to beat america is a single man may stock-market crash. cyber attacks o

gm plans to conduct its own investigation led by anton the lehman probed brothers downfall.he national highway traffic administration is giving gm until april 3 two explained the decade-long delay. company culture of slow information from the engineering ranks to the corner office may be at issue. tm investigated faulty switches in 2004 but on march 4, the new did noty barra says she learn of the situation until a few weeks ago. that goes for the other top executives but industry experts explain it this way -- at the old gm, people did not push that is up the chain. here is the detroit euro cheap. >> ever since they emerged from bankruptcy, that is what they were trying to do is to cut through this culture and change the way they are thinking and speed things up an. there is a lot of bureaucracy in automakers. look at datae to and think about things for they like to study them and then they'd like to act once they know the facts. in this case, it took them too long to know all the facts. barra has top, change the culture of the company but down in, they have to change the se

. >> is there a possibility we could see a lehman's style crisis or bear stearns style crisis in china>> that has long before the concern. we are watching the way the rest of the world watches china. housing has long been a concern. especially household buying apartments, buying houses just for investment purposes. and i could see as capital markets are liberalized in china, you might get a healthier situation where people have somewhere to put their savings other than speculating on land and apartments around the country. so we'll see how that develops over the next couple of years. you know, it is no secret that people are concerned about the housing market in china. >> absolutely. we're speaking with david lee, a member of -- a former member of the people's bank of china who i'm sure you know very well. one of the reasons he is not as concerned about the crisis is that china has a high savings rate. not just among individuals but corporates and banks and all areas of economy. would you agree with that? >> yeah. they definitely have a high savings rate. that is certainly a good facto

>> they did not believe that until the lehman collapse.t wasn't until that weekend when ben bernanke and tim geithner got word this was a powder cake that would spread systemic risk. what is interesting here is you have to ask yourself you had no idea what aig at that point, why they didn't know that was a big thing if they were going to implode. that is what they were saying in these depositions. addressing some other aspects of this as the financial crisis rolled, tim geithner essentially from what i understand contradicts the line coming out of goldman sachs from lloyd playing fine that what the post financial crisis and the post-bailout narrative of goldman sachs was, we did not have to bailout. he says people inside goldman were essentially going nuts, cannot believe their company was in jeopardy for insolvency and the only thing stopping it from being insolvency, they were worried if morgan stanley went, they were next to go so they were clearly in the crosshairs. we should point out both morgan stanley and goldman sachs after tim ge

my name is janet lehman, and i'm a behavioral therapist and a mom. i know what it's like when the child that you love becomes a defiant, out-of-control child who disrespects you. that's why my husband james and i created the total transformation, the program that tens of thousands of moms are now using to turn around their child's behavior. if you've heard about the total transformation and wondered if it will work for you, now you can try it for free. i'm willing to give away a thousand programs today

this speech where he gave ka lacalam warning about risk taking that we saw before the crisis, before lehmaners collapsed both in house holds and in the marketplace. so that's got a lot of kind of caps among the pigeons this morning. and to be honest, we're standing here on college green waiting for carney's boss, george osborne, to unveil his budget. but really, the carney carnage has taken precedent. one thing we've seen from the treasury this morning is this brand new one-pound coin which will be in speculation from 2017. this is in order to make sure that counterfeiting comes down. but this coin has gone from being round to having as many sides almost as the bank of england has new deputy govern governors. i'm not sure if the chancellor can remove that kind of market moving change in terms of the budget, but we'll watch that. back to you, julia. >> thanks so much, helia. we'll catch up with you later on in the show. >>> janet yellen will wrap up her first fed meeting since becoming chairman later today. the fomc will likely change guidance for when it may start raising rates back to that

morgan's balance remember lehman brothers famously did the repo one hundred five scandal where they took the debts and they put it next door to the bank they didn't tell the regulators about the regulators would leave they put it back in the lehman books well that's right and it was fraud because they pretended to sell it to someone else but to believe they were still responsible for citigroup all of those off balance sheet vehicles came rolling back when the investors didn't want them anymore and suddenly they had to put capital into neat them right so that was the definition of the fraud is that they were what the definition between a sale was not a sale was so the house or go into the minutia of the details it's a republic that's right and it's not really a cell but it's maybe it's. well this guy's maybe holding in the collateral right there where we talk about this in our book we get into the ancient in a season so this louis brandeis the great supreme court justice who really define this and in the mid one nine hundred twenty s. nobody thinks about this anymore but we're going to ta

marcus lehman is a graduate engineer at the university california berkeley. a device known as the sea floor carpet designed to harness the power of waves. >> you can clearly see that the carpet follows the wave motion. and this motion of the carpet then drives the pumps underneath. >> it's a scaled down version of what could ultimately be a reliable energy system with the potential to provide other benefits, as well. the professor who leads the team says the idea is based loosely on the physics of mud which lies on the sea floor absorbing much of the turbulence created by waves before they crash on to the shorelines. >> it came to my mind if mark can do such a good job. if we place the carpet on the seabed that responds to the action of overpassing waves, the same way responds, then to be able to take out the same amount. >> reporter: as seen in this animation provided by the lab, the action of the hydraulic pumps forces sea water through a single line which creates a high pressure flow that can be used to produce electricity onshore. but in addition to drivi

they were more worried about lehman. the headlines were blacker and more difficult in the israeli press than in the united states. and panic descended. system shape was. no relationship to what actually happened. the fact that you could have a confidence based on what you saw and go out and speak to people and avoid the sort of trick that is journalists play governor, can yo u guaranty us there will never be a bank failure? that sort of thing. you have to, you have to give people, without exaggerating. >> right. >> i never would -- >> one final question you had mentioned to me that in one instance you had to as head of the israel bank, bank of israel, go after one of the major financial families in israel for wrongdoing and one of them ended up spending time in jail. could you tell people a little aboutna that. i know you don't, you may want to talk about that. you're grimacing here. >> that incident happened. it was not pleasant and it happened in the middle after global crisis which made it very delicate. it involved t

. >> remember, the banking system now has $23 trillion versus when lehman failed, it was less than 10nking systems are leveraged to those captions. i think big, planned economies, it's like trying to land a very, very big plane on to a very small airport. they could do it. but if they do something wrong, it sets up a problem where you have the united states economy, which is now 18% of our earnings are exposed to emerging markets. >> before you go, what's the line in the sand in terms of pain? what level does the yuan hit where it becomes much more -- >> i think 620. or 605. overall, the real -- i think the real value now is -- are in some of the -- look at the rsx today. 32 million shares of the etf outstanding. and 25 million traded today. the money is just piled out of the e.m. and all piled into the developed markets. >> larry good to see you. larry mcdonald, newedge. worries about ukraine causing food prices to spike. will restaurant stocks feel the pressure? when you see wheat spike, you have to wonder how it's going to trickle down the chain. >> a lot of things, particularly wi

russia noticed our vulnerability, economic ama started using church service style techniques to target lehman brothers. aig, citibank, goldman sachs. and they started using manipulative techniques in the markets with the intent of crushing our stock rocket. tzatziki conspiracy theory, but it's not. hank paulson, former treasury secretary came out in his memoirs and said the russians approached the chinese and said if we dump all of our holdings of american dead now, we can cratered the american economy. in fact, the russians did the chinese did not. but the russians did in that worse in dire substantially. >> you've got a follow-up, "self-help messiah: dale carnegie and success in modern america." >> cybereconomic. and not only did what happen in 2008, 2009, but a guide to the chinese doctrine, which was written in a book called unrestricted warfare by the kernel parties and the pla wrote this. the best way to impede america is the stock market crash. cyberattacks on the infrastructure ruined in the currency. so i'm not a limit to what happened in 2008, 2009, but i looked forward to what coul

some people are talking about bear stearns or even lehman moments. is that over-the-top? >> we have had billionaire draw parallels with what is happening in china and what is happening in the u.s. in the lead up to the global financial crisis. that comparison is not overblown. it is not just the solar companies that are at risk year. ande are other companies inustries that are operating sectors with a lot of overcapacity. some of these companies have bonds trading at levels that indicate they are also in distress. the question on everyone's lips is which company will be the next company to default. which will be the next tyra's solar. there was a government advisor in china turn these companies zombie companies. .ith the debt to times equity these walking dead companies, their ranks are growing. they are feeling this is not the first onshore default we are seeing. a lot of commentators saying this is a positive development because it also means that the government is trying to play by market rules. >> this is just a $14 million payment. this is quite a small company and c

>> the bear stearns, the lehman brothers, the companies leveraged 30-1, you don't have that in china.s a simple financial system. we see that it's simple loans. you don't have security products. very few derivatives. from that perspective, from a liquidity perspective, you're not concerned about a deleveraging event. >> bill is short on chinese banks. what is he seeing? and what are you seeing? where is the disconnect here? it seems like those are two big calls. >> absolutely. the chinese banks, what he's most concerned about is growth in credit. especially from 2009 and 2010. we saw debt to gdp go 140% in 2008. today, it's 210%. a lot of that occurred outside of the banking sector. and the concern is what type of contagion are we going to see between the shadow banking system and the banking sector. i contend that the linkages aren't that strong. he's making contention that the banks are going to be asked to mop up the mess. >> you say outside the banking system. you say, for instance, in real estate. there's a real estate developer that's on the verge of collapse. it's giving a lot

lehman, welcome to "mad money." thank you. have a seat. >> thank you for having me. >> i was an original investor in one of the -- in cosmo. that was part of a partnership. i put money in it. it surprised me because they had inventory which is the bane of everything. you have no inventory whatsoever. right? >> no, we like to treat the city as our inventory. you know, we have the saying internally, let's understand the inventory in the city the same way amazon understands the inventory in one of their warehouses. >> wow. okay. but you do have a network of people who are -- i guess they're private contractors. you don't pay the insurance of any courier and you don't have to do anything. they're part of lake an uber network for you? >> it's very much like an uber network, around 2,500 postmates in the five cities we're operating in. >> now, the ratio is still maybe too much food for your taste? meaning that -- i always fear that someone can come in and change the food equation. maybe at amazon. but you're -- it's 15% that's not,

. >> why did we have all of this derivative stuff and credit default swaps and lehman brothers falling and why did the sec miss that? >> i would not say the sec missed that. no agency can prevent every financial crisis. we certainly have more tools under the dodd-frank legislation. one piece in this -- neither the sec, nor the cftc was permitted to regulate the derivatives market. we are now, thanks to dodd-frank. we now have those tools. and it is good we have those tools. >> how much greed have you seen in your life up there in new york city? >> there is a lot of greed everywhere. there's a lot of greed everywhere. you see the petty greed factor, too. even with the high and mighty who make money of money. all of a sudden a little tiny piece of something they've done dishonestly to get just a little bit more money and you go, why? why is this happening? you have to be present everywhere, appear to be present everywhere, and when you have cases that send messages, make sure everybody is hearing those messages so they are not tempted to do that. >> what is the one thing you want to say

. >> is it a lehman moment or bear stearns? >> bear stearns. the early part of the crisis. other thing -- >> solyndra moment. >> right. analysts are saying this could be a good thing. you can't keep bailing everybody out. people have to learn when they invest, it could fail. >> that's the way capitalism works. they have a blended system there. >> nice way to put it. >> steve, let's talk about the weather, who doesn't like to talk about the weather. you've got new data indicating what? about how the weather is affecting the economy? >> indicating that we really, really hope it was the weather because it was a big drop in the service sector report today from the institute for supply and management. take a look at the chart. what you see is this steady weakness that happened over the winter crashing down to that 51 level there, 50 indicates growth in the service sector and in the economy. but it's getting close and i want to show you what happened to the employment component of this. we follow this on this show. take a look. that's the second -- >> like my ekg. >> let's hope n