torture and then he said there will be chaos if i step down this is a classic technique that the new york fed the u.s. fed the banks for occupiers always claim there will be chaos if we leave the scene they tried they did in two thousand and eight famously with hank paulson in front of congress and they've done it every few months since the debt ceiling is another example in the middle of one right now you know there'll be chaos still be caseloads to give us more of your money and let us run roughshod over the political system and steal everything that's going to be chaos well let's look at how an idea can actually genuinely create revolution where you can change the system and not return to business as usual five hundred dollars. silver if you want it now many look at that and they think oh it's about the price it's about making money off of silver making fee out currency dollars issued by the new york fed and it's more than that it's a revolutionary idea because many people instinctively also say why would max want five hundred dollar silver does he know what the world would look like in fi

new york federal reserve bank into all the current administration leaves. to get somebody in there who's not let's say like a guy remember jim geiger put was it eight billion dollars of new york fed cast american dollars onto a plane air lifted to iraq and it promptly disappeared oh and by the way erik ainge of where erik prince of blackwater just happens to be now living the the big life there in the middle east i wonder where that money went well you're more likely to get the same exact sort of paradigm that played out in tire square which is remember what mubarak said at first first he met the people in a televised address saying oh make a few little changes that was basically our have a commission to investigate whether or not there's been any fraud or torture and then he said there will be chaos if i step down this is a classic technique that the new york fed the us bed and they start occupiers always claim there will be chaos if we leave the scene they did in two thousand and eight famously with hank paulson in front of congress and they've done it every few months since the debt ceiling is another example in the middle of one right now yeah you know there will be chaos the

bailing out they mentioned jamie dimon as benefiting from this clause sat on the board of the new york fed and bailed out j.p. morgan and then the the investigation also revealed that the fed outsourced most of its emergency lending programs to private contractors many of it which also were recipients of extremely low interest and then secret loans jamie diamond dropped on his head as a kid or what i mean here's a guy who's given billions of dollars total exemption from accountability and then he loses that but in a few more billion dollars he makes a few bucks ok that's true but compared to like a real player out there somebody like an oligarch in one of these other countries he's a pusher. the scope of the go must be a little move you know you're right you're buying his presentation this is remember it's theater max and the theater he's claiming to only make a few billion a year and he's just a poor schmuck who doesn't know what he's doing he's trying his hardest but in fact these guys own everything they've taken control of everything he could have he could be worth five trillion who kn

morgan chase served on the new york fed's board of directors at the same time that is bankruptcy for almost four hundred billion dollars in financial assistance from the thread william tapley now the new york fed president granted a way for to keep his investments in a.i.g. engine and general electric at the same time that they're given a bailout funds and the reason that the fed gave for not making this guy sell is holdings is because they did not want to create the appearance of a conflict and i mean so it's ok to have a conflict of interest you just don't want to create an appearance that the fed outsourced all almost all of its operations for these emergency lending programs to private contractors j.p. morgan chase morgan stanley wells fargo the usual suspects these guys all got trillions of dollars in federal loans at near zero interest rates and two thirds of these contracts were no bid contracts morgan stanley got a one hundred billion dollars to help manage the fed bailout of a.i.g. i mean frankly this is complete peak feeding shark attack profiting at the taxpayers' expense a

in the marketplace and if you pay even more you get spoon fed to you inside information from michael bloomberg who was there the mayor of new york who was of course overseeing the new york fed who of course is involved goldman j.p. morgan and the federal reserve bank in washington dispensing inside information he legally bloomberg is involved in legal conspiracy that's not conspiracy theory that's conspiracy fact it's all tied in to bloomberg bloomberg being of course now running for president supposedly law. i think things up where is he getting that money oh i get it it's inside information which he will of course try to legalize to cover his butt at the end of the article there's a quote it's going to be awfully tough to identify the source of the leak in this case because of course it's always awfully difficult to prove insider trading twenty eight nations were involved so a whole lot of people knew this ahead of time well these fifteen other regulators they don't have the money to pay for the subscription on bloomberg to show you who's trading on inside information they're bankrupt purposely on purpose so that they can poss

new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we can write sensible rules that will promote the broader economy. political connected unions and groups wer

new york. the new york fed supervisor responsibilities incf laok cest financial institution that received the largest t. wr qte t bailout. who was the new york fed president who failed to oversee our laragast banks and presides over the t.a.r.p. bailout? none other than our current treasury secretary, geithner wrote that regulators outlined major elements of reform to bring oversight transparency and greater stability to the $600 trillion derivatives market. republicans offered a derivative substitute amendment that accomplished all these goals n ability to hedge their business risks. loain street business had nothig to do with the financial crisis. edevertheless do. thes-fralic will iricose huge costs at a time thy least afford it. the secretary failed to mention that. he also said the obama admial bstration has started a process of, quote, winding down fannie mae and fre. thesme t mac. can you belme tve it? fannie and freddie's market shares increasing. they count for 70% of mortgage-backed securities. with other government pr.'rams inen uding the federal governmet now controls 97% of the market. h

. >> treasury was already meeting officials in new york, new york fed officials previously scheduled meeting with stake holders. now it's obviously got a different agenda. we're told they are in listening mode and they're not going to detail their priority plans. it's pretty career from what you've said that they're going to pay the bondholders and order judgments about what checks go out and what don't. the president said they don't have too many options here. >> there's two drastic options. one is the president invokes the 14th amendment. the 14th amendment we have to pay our bills. >> they keep saying they're not going to do that. >> all this debate, i have heard nothing but nonsense. everyone told me we're not going to default. don't worry about the downgrade. everybody i've heard from washington is phony. i've got to tell you, every assurance that they've given us on every single side has been completely wrong. i think anything's off the table including selling the gold in fort knox. i am not kidding. >> how crazy would that be. you just had your peter finch moment. i think that

>> the new york fed and the sec were living at lehman brothers in the last few months. do we understand the risks that arise in this kind of leverage? do we know who will be impacted? we don't know. there is no determination on this. these risks are huge on the impact of the rest of the economy and they come from excess of leverage particularly in our biggest financial institutions. >> there are capital structures that are in place right now. we have not gotten into the transition period we should be considering but what kind of time. do you think we should be looking at as far as the transition pace of tax reform? >> that would be determined in part by the kind of change you make and whether it is incremental or whether it is more comprehensive. even incremental change needs some transition period. >> this mainly has to do with debt and the incentives for increased debt and the tax code today. >> it depends on how radical you want to be. if the changes are incremental, they could be phased in more quickly but radical changes would take a longer time. >> benigno back to

congress will raise the debt ceiling soon, officials from the treasury, federal reserve board and the new york fed met today to discuss the implications for the u.s. economy if congress fails to act. and the u.s. senate has struck down a bill that would add a u.s. amendment to the constitution. >> this step now allows the process to move forward. >> president obama held a town hall a short time ago at the university of maryland where he said that republicans aren't compromising. >> we can't just close our deficit with spending cuts alone. if we are going to reduce the deficit, then the wealthiest americans and the biggest corporations should do their part as well. >> right now, august 2nd is the big date, and the hard deadline or the u.s. default defaults on the $14.3 trillion debt. the white house says that lawmakers need a basic plan in place by today if they are going to be able to craft a bill in time to avert a default. nbc's kristen welker is following all of this for us live at the white house. kristen, good afternoon. where do we go from here? what is the bottom line? a lot of talking from

reports of meetings with treasury secretary geithner, fed chairman bern apgy and new york fed president dudley suggest the contingency plans certainly are in the works. yet as the ranking member of the senate finance committee, the administration has provided me with no information on what those plans might be in spite of my responsibility yo for oversight of debt and cash operations at treasury. i wish i could say i was surprised but the fact is the promise of the most open, deliberative and rational administration in history has given way to a highly secretive and partisan operation that denies the people of this country the leadership they are owed. perhaps i'm supposed to wait as in the past for news reports on sunday afternoon before the opening of financial markets in asia to find out what we would do if an economic catastrophe in fact unfolds. mr. president, it is an unsatisfactory and unacceptable state of affairs that the american people and members of congress do not have updated and sufficient information about treasury's cash flows and liquid assets or the contingency plans

we are hearing and getting wind what happened today at the new york fed when officials were meeting with so-called government primary dealers. there are about 20 of them alisyn. without sounding arcane and getting too much into gobbledygook. these are folks responsible for trading treasury securities, marking them up, getting them out in the market so chinese, japanese, canadians, germans can buy this stuff. they are the responsible are the go-between if you will for selling our treasury debt to anyone who wants it. that is the big question whether they will be able to do that. we're told at this meeting they explained the mechanics what would happen in the event of a shutdown. we are also told that they have been assured that there will not be a shutdown or that bondholders will not be honored, probably news of relief to them because they would be stuck holding bad paper, bad promises and that would just be bad period. so, the other details as to what we the public will get to know might be released from the treasury department itself after the market closes, even though that is not nec

new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we can write sensible rules that will promote the broader economy. political connected unions and groups wer

the new york fed is one of the investors in this deal. some have questioned if the deal is favorable to b of a and conflict of interest. does the federal reserve bank of new york have a conflict of interest, how can they both be the regulator and a party to exact the settlement of a lawsuit? the $8.5 billion settlement is for $174 billion in mortgages. this amounts to a 5% rate. given that independent investigation suggested that two thirds of the loans had representation at 8.5 billion mistakes awfully low. can you explain that? >> bank of america is not regulated by the bank of new york but bank of richmond. the bank of new york led this lawsuit in order to recoup as much as possible for the taxpayer. that is the objective of that. >> that is all they could get? >> we went through all we could. >> $1 billion in mortgages? >> this was a collective suits with many participants and this is what this court said was willing to award. >> thank you very much, mr. chairman. >> let me compliment you on your testimony. and your answers to our que

. >> the new york fed is one of the investor selling in this deal. some have questioned whether it is very favorable and about conflicts of interest. does the fed had a conflict of interest? how can they both be the regulator for a party trying to exact a fair settlement? the $8.5 billion settlement is for $174 billion in mortgages. this allows for a mortgage rate. 2/3 of the loans have representation. this seems awfully low. can you find that? >> id is not regulated by the federal bank of new york. it is the federal bank of new england. that is what the objective was. >> that is all they could get that > we? >> we went for all we could. this is what they said we were moving toward. >> bossy but very much. >> chairman bernanke, let me congratulate you on our testimony. one thing that i do want to say, you have always stressed and i agree with you, is that long- term structural changes, a long- term structural changes in our program in our tax policy will bear short-term benefit. i think you agree that if we do not make those longtime structural chang

new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we can write sensible rules that will promote the broader economy. political connected unions and groups wer

the new york fed's got a tri-party repo commission.there was an understanding that there's a concentration of risk at certain aspects of the structure. the way repos are actually affected over the course of the day. of so there's a group that's been working on greater transparency, removing that intraday risk, understanding how the confirmation process works so there's better understand anything the tri-party repo market. there's also work to create different liquidity sources in the case there are issues within the repo market. so there's definitely work on the way to strengthen the way the repo market operates. if your observation is that there is an investment decision made every day by money market funds and others to participate in the repo market, that's certainly true. cash that needs to be invested overnight, there are securities available for this market. and that is something that is important to the way the markets operate today. >> well, i think, actually, the concern by the critics of the repo market is that they were not

new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we can write sensible rules that will promote the broader economy. political connected unions and groups wer

especially as of this concert the conflicts of interest to we saw some of the people that were at the fed in new york they also had their own investments in certain companies that they were choosing to bail out do you think we're going to see any of that change or is the new regulations at least if we are in that situation again i'm actually a pretty big defender of the dodd frank bill so i think the tools are in place assuming that regulators choose to use them to avoid that situation again but the way the bill is structured you really don't know until it happens if the next treasury secretary federal reserve chairman who is there at that time isn't willing to pull the trigger and say all right that's it this bank's going down it's going to disappear. well that's good to know maybe if they choose to use the tools then perhaps something can be averted and same thing if congress chooses to use the tools they have now to avert a financial disaster and not allow us to default on our dad's the maybe everything that thanks so much for joining us i think. well still to come tonight you know the meaning of.

new york came back after gerald ford told them to drotch dead. it was new york city that told them to get up on their feet after the feds dismissed it you didn't survive and revive because of washington. we did it on ouron. that is the key here. >> bear in mind there is a 12-year gap between the ford at the same time and guiliani . you better believe that guiliani used federal money as well. >> but the point is. and the point is. >> washington really want to help cities and going to have federal enterprise zones and you will see the come back again. remove them and entrepreneurs will do it >> i will give you a chance after viktor yampt we come back to the key that local people know how to use the resources better than the feds do. >>> and telling people locally how to navigate the washington money maze. this makes no sense. on a level, the states are increasingly dependent on debt financing on a national level to fund their own programs. it is around 30 percent of the state budgets are now coming from federal funding and that is a problem. that can't go on. >> very quickly. go ahead, mark. >> it is interesting my friends on both coast. move to the mid

fed. >> reporter: here on new york's busy 5th avenue, it may be hard to imagine the economy is treading water. not only are the streets buzzing with tourists, but stores are brimming with shoppers. still, on main streets across the country, it's been nervous consumers that are holding the economy back. economist julia coronado blamed the lack of supply from japan due to the earthquake, as well as higher food and gas prices in the u.s. >> we also saw weakness in retail spending and spending on other services, because consumers have been hit by very high inflation in the first half of the year and it really took its toll and consumer spending essentially ground to a halt. >> reporter: so what does the latest snapshot of economic growth mean for the next six months? many economists predict we'll get a modest acceleration in growth. >> we should have some catch-up in the third quarter. the u.s. economy is extremely sluggish, best we can look for is 2.5% to 3% growth, and that's awfully slow for a cyclical recovery. >> i do have a reasonably decent 3% growth forecast for the second half of t

to get bac feds who still don't recognize same- se marriage. >> fears and tears across new york as hundreds of gay couples get married. how gay couples plan to get back at the feds who still don't recognize same-sex marriage. >> jim bernard here in the cbs 25 weather center, warning, low clouds for the escape from alcatraz ramirez, we have a warmup coming towards the end of the week. i'll have the details womaning up in just a few minutes. >>> "eyewitness news" is brought to you by xfinity. ,, man: everybody knows you should save for retirement, but what happens when you're about to retire? woman: how do you go from saving to spending? fidelity helped us get to this point, and now we're talking about what comes next. man: we worked together to create a plan to help our money last. woman: so we can have the kind of retirement we want. now, you know how this works. just stay on the line. oh, yeah. fidelity investments. turn here. cheering, applause the weddings and celebrations >>> same-sex weddings take place all over new york, opponents of gay marriage are protesting. state to allow same se