morgan at the expense of equity holders michael hudson points out to the homeowners and corporate america on how in hock to the debt machine many corporations are effectively in negative equity or in and technically insolvent position headed by the financial sector by the banks themselves really sympathy for the demonstrators in the bill. i don't know if there's a lot of sympathy per se to their point of view i mean we were you know in a similar similar boat so to speak a similar boat perhaps only one life preservers the fact the government now is funneling money to a major bank and saying if you can do that with a bank why not do it with strapped homeowners facing foreclosure as democrats thank god was. crisis increases desperation. hutcheon says main street is leading the move on main street in a battle for survival we are seeing a second class war in this country such as you've never seen in the entire history of the united states a class and class war except in this case the class war isn't the kind of war the marxist some socialist talk about it's not between employers and employees

including the idea of increasing taxes on property ownership which guys like economists like michael hudson would put forth as one of the solutions that he's advocating yes i've looked into that a little bit i think the key point for me is having a way of funding the government that is transparent and a system where frankly everybody pays something we've got to the point now in the u.s. where fully half of americans don't pay. any income tax and then the vast majority of the tax burden is paid by those in the highest income tax brackets and it's getting to the point where it's just being conscious kotori to the point where capital is fleeing our shores and that goes for corporate as well as the as well as personal income tax rate so i think that the key difference between the value added tax and the fair tax is the value added tax is applied at every stage of production so it really is a tax on the creation of value throughout the economy the retail sales tax or the fair tax is the retail sales tax or consumption tax is just exactly it's just levied at the point of sale and it only applies

. >> colonel michael hudson was born in san francisco and graduated from san jose state and commands the 11th marine ex me divisionary doesn't out of camp pendleton. >> i remember coming up and watch the blues fly and seeing the ship come in. great time. >> visitors will get up close to the marine newest combat helicopters on the flight deck. the transport helicopters known as frogs, were the workhorses of vietnam. the purple fox squadron has been around ever since. lieutenant colonel edward jeep is commander of the aviation you want. >> every once in a while we'll have veterans from vietnam who will come and say hey, is that a museum or is that still -- >> no, that's still us. sometimes they will have emotional recollection of being brought out of the fire. >> macon island opens the doors to the public tomorrow morning. >> heather ishimaru, abc7 news. >> there is a full schedule of fleet week events posted at abc7news.com. under see it on tv. >> we celebrate fleet week we are reminded of the sacrifices men and women make in the military. this is the ninth anniversary to the war in a

. >> joining us now to talk about it is michael hudson.overs business and finance for the center for public integrity,which is a nonprofit journalism group. thanks for being here. the banks announcing they're freezing foreclosures in 23 states. so you've got jpmorgan, ally, bank of america, what did they do that's leading to this freeze? >> well, you had a situation where you had in a lot of states you had rocket dockets where the lenders were rushing to foreclose on people. and in many cases, the paperwork wasn't accurate, it wasn't done well. you have a former employee of gmac alley bank who was testifying he was signing off on 400 documents a day swearing the bank had the right to foreclose on family without reading documents or verifying the information in them. you've also had cases where it's been alleged that documents are being back dated. >> so is it -- is this just a matter of mistakes being made on these documents? or is there something really malicious going on? >> well, i don't know about malicious. but, you know, this is shoc