fuzzy kind of flaky word that you know anyone can use you can call yourself a wealth creator lloyd blankfein the c.e.o. of goldman sachs one year after the crisis said that goldman sachs workers were the most productive in the world we as economists use to really debate and contest that word there's different theories of value and actually 1st we debated value and then that turned into a theory of price today we have basically an approach to the economy which is all about prices supply demand curves that determines price and that determines what. we value so the logic actually got reversed think of it the chain's shareholder value shared value and goldman sachs calling goldman sachs workers the most valuable but what does that actually mean and so when we don't actually have a way to distinguish value creation from value extraction it becomes much easier just to throw the word around in fact the reason i wrote the book believe it or not is that in the 2015 election when the labor party lost the analysis by labor members themselves by leaders in the labor party the next day was we lost becaus

become a very fuzzy kind of flaky word that anyone can use you can call yourself a wealth creator lloyd blankfein the c.e.o. of goldman sachs one year after the crisis said that goldman sachs workers were the most productive in the world we have economists used to really debate and contest that word there's different theories of value and actually 1st we debated value and then that turned into a theory of price today we have basically an approach to the economy which is all about prices supply and demand curves that determines price and that determines what we value so the logic actually got reversed think of it the chains shareholder value shared value and goldman sachs calling goldman sachs workers the most valuable but what does that actually mean and so when we don't actually have a way to distinguish value creation from value extraction it becomes much easier just to throw the word around in fact the reason i wrote the book believe it or not is that in the 2015 election when the labor party lost the analysis by labor members themselves by leaders in the labor party the next day was we lost b

david solomon and his predecessor lloyd blankfein since in february goldman's that board adopted a provision giving the ability to reduce some of their great packages depending on the outcome of their want to be best against. a giant squid indeed a st louis sorrow there in new york with us with some very graphic metaphors. and looking to markets elsewhere it's been a bad week for investors on pakistan's stock exchange the stock market there has marked its 4th straight day of falls thanks to the india pakistan tensions the kharaj the stock exchange plummeting 2000 points to its lowest in 5 years on tuesday india passed a controversial bill stripping the state owned of john moon and kashmir and dividing the region into 2 territories one of which will be governed directing by delhi. the flare up in tensions has sparked a mass flight of migrant workers india has shut down mobile networks across the region and banned public gatherings. a train platform in germany filled with laborers eager to leave a tense situation many say they were told to leave their jobs some report never receiving their sal

created and they confuse the word wealth creation with business because in the book you talk about lloyd blankfein fully of goldman sachs saying value or productiveness comes from organizations like goldman sachs it's like we're always told the city of london is a little wall street you know it's creates value yeah but what do you know what's interesting is that up until the 1970 s. the financial sector wasn't even included in g.d.p. it was actually seen as just a transfer of the existing value from one place to another kind of like you would include social security payments it's just a transfer and before that in fact the way we would talk about finance was also in terms of rent so the classical economist talked about in terms of unearned income it literally just moving stuff around which of course isn't true of all the finance but anyway there is this kind of skepticism of what is finance actually doing and so in the 1970 s. which is when deregulation and some other changes the size of the financial sector started to become larger where you had was that the people who were doing the systems of t

alix: i love and that picture, lloyd blankfein is just a dude.at that picture was taken and posted, david geffen has been taking various friends on his yacht every summer for years. but i've never seen a photo of the yacht. i'd love to know who took that photo and posted it. alix: that is a great point. it is something you don't want to do. david: you are not supposed to do that, normally. alix: this is not the 1% story you want to be telling right now in this world. we turn now to wall street beat. european banks see low rates as a threat. commerzbank and unicredit warn of weaker earnings. ok to jonc gives the corzine's application to register his hedge fund with some conditions. david: droning us is sonali basak best joining us is sonali basak -- joining us is sonali basak. about berkshire capital -- in burke for -- in burke for capital. burford is already fighting back, so they will fighting back, but it does have a blow immediately. david: burford says they have fight of itsrior work. to explain a little bit, this is one of these funds that i