s. the collapse of the lehman brothers bank tipped world financial markets into almost terminal crisis.the u.s. economy tanked along with the rest of the world. there's no doubt that barack obama's presidency can boast many successes on the economic front, an unprecedented $800 billion stimulus bill pulled the economy out of the worst slump since the great depression. obama and his team saved the teetering auto industry and bailed out failing mega-banks. however, there were blemishes, not the least, foreclosures. they hit record levels as the sub prime mortgage crisis tore through housing markets like a hurricane, plunging millions of homeowners into bankruptcy and homelessness. freddie mac and fannie mae had to be bailed out. on the plus side, the budget deficit has fallen steadily during obama's time in office. helped by the economic recovery, expiration of bush era tax cuts and reined in government spending. it's now 2.5% of g.d.p. in real terms, that's a trillion dollars less per year than it was when obama took office. the overall national debt has increased partly due to the stimu

lehman brothers. we were willing to bailout aig and citigroup. had we not done that, we would be in the 1930's.eed to take a lesson and realize there are times when you must nationalize and monetize. they need to do that now. if they do not, we will have a surprise one morning. ellen, thank you so much. she will continue with us on radio. robert doll, thank you so much. whalen, we will see you in doubt 20,000. 20,000.w this is bloomberg. ♪ jonathan: goldman due to report earnings within the hour. viewedconnection loss shares of netflix plunging after subscribership felt away three-year low, fueling concerns about their future growth. alix: veronica trump -- melania trump tells the world about her husband but did she use her own words? jonathan: for our viewers worldwide, from new york city, i am jonathan ferro alongside david westin and alix steel. the action happens after markets closed. alix: a little bit before. quite a night in cleveland at the republican national convention. we do have earnings from netflix, ibm, and yahoo!. david: johnson & johnson just came out with their quarterly resul

lehman brothers, aig fell in the banks did not. before the repeal of glass-steagall in the early 1990's as entities started trading collateralized debtthe banks got into that that number swelled because banks threw money at those investments, and that is what toppled those other non-bank entities. i think you need to realize that in other words, before the banks got into it, the big banks were allowed to get into investment banking, they were trading those assets and it was not until the banks got into it that it ballooned and swelled those investments to the points where those other entities when everything finally hit the dust and could not hold up, that is what knocked them out. for you to say the banks did not have a problem an act like they were not connected with this and did not need to be bailed out the lies the fact that citibank would have gone under without the federal government shoving money into the tarp program. saying is thatm the problems showed up elsewhere first in the banking system. if glass-steagall where the problem you would have expected the problem to show up in the banks that have it. insurance --erally ins

lehman brothers, aig fell in the banks did not. before the repeal of glass-steagall in the early 1990's as entities started trading collateralized debtrations. when the banks got into that that number swelled because banks threw money at those investments, and that is what toppled those other non-bank entities. i think you need to realize that in other words, before the banks got into it, the big banks were allowed to get into investment banking, they were trading those assets and it was not until the banks got into it that it ballooned and swelled those investments to the points where those other entities when everything finally hit the dust and could not hold up, that is what knocked them out. for you to say the banks did not have a problem an act like they were not connected with this and did not need to be bailed out the lies the fact that citibank would have gone under without the federal government shoving money into the tarp program. saying is thatm the problems showed up elsewhere first in the banking system. if glass-steagall where the problem you would have expected the problem to show up in the banks that have it. insuranc