we are still overleveraged in households, smes are overleveraged. governments don't have a lot of fiscal space. only one large country could spend more. that is it. if the next crisis were to come, who would buffer the economic shock? the banks can't at the moment. if you look at the u.s. economic shocks, for a very large part, are buffered by private investors and capital markets. we don't have that in europe and that is still very vulnerable. we need to develop that. technological elements can be helpful here. if you are worried about the role that banks play, i would say they need to be challenged even more. we need alternatives, and technology can help. john: you can fight back. min: over big banks like brian was saying, the capital requirement, the liquidity requirements, the last resort, capacity building, extra surcharges. the reason we see the big banking system is it is stronger and safer. that is also very important to understand. this is the backbone for the global financial system. this is very important. banking withdrawing from certain

you are the one who voted to deregulate swaps and derivatives in 2000 which contributed to the overleveraging of lehman brothers which was one of the culprits that brought down the economy. so i don't know, i don't -- i'm not impugning your motive because you voted to deregulate swaps and derivatives, people make mistakes and i'm certainly not saying you did it for any kind of financial advantage. >> i want to bring in msnbc hard ball host chris matthews. boy, somebody gave them both some red bull last night. >> it was one-on-one. one of them is going to be the nominee and one is not going to be the nominee and that's it and that's history. >> did we see any clarity on that last night? >> i thought secretary clinton was well prepared for a lot of the charges that bernie has made against her and some other people have and i thought she was ready on that definition of a progressive. she pointed out nobody masses muster with bernie, even the president or ted kennedy by his standards. i thought the answer that she is a moderate is that that's a bad word but in this crowd of voters you have -- >>

we are still overleveraged in households. governments still don't have a lot of fiscal space.re is only one large country that can spend more and that is it. if the next crisis were to come, who is going to buffer the economic shock? the banks can't at the moment. if you look at the u.s., economic shocks, for a very large part, are buffered by private investors and capital markets. we don't have that in europe and we need to develop that. that makes it very vulnerable. technological elements can be helpful here. if you are worried about the role that banks play, i would say they need to be challenged even more. we need alternatives, and i think technology can help. john: you can fight back. ,> after the financial crisis it dramatically enhanced over big banks with liquidity and the last ability for capacity building. i think that is the reason we see the whole banking system much of stronger. important.lly the commodity market is the one, currency is the one, and the banking becomes smaller. we need to understand the impact on the global risk, on global market and liquidity si

democracy.you're the one who voted to deregulate swaps and derivitives in 2000 which contributed to the overleveraging of lehman brothers which is one of the culprits who brought down the economy. so i don't know i'm not impuning your movtives because you voted to deregulate swaps and derivitives people make mistakes and i'm certainly not saying you did it for any kind of financial advantage. it was the republicans turn late saturday night. night.by that time -- the field of 12 that came through iowa was down to nine after three candidates dropped out -- and there was no undercard debate.carly fiorina lobbied the r-n-c to make sure she was included -- especially after doing well enough to pick up a delegate in iowa. she was left out -- so the group of men wanting to be president were asked about how they'd handle a situation unfolding right north korea was accused of launching a long-range missle. "the fact that we're seeing hte launch and we're seeing the launch from a nuclear north korea is the direct result of the first clinton administration.what they're trying to do is they're tyring to prolifera

you're the one who voted to deregulate swaps and derivatives in 2000 which contributed to the overleveraging of lehman brothers that brought down the economy. i'm not impugning the motive because you voted to deregulate the swaps and derivatives. i'm not saying you did it for a financial advantage. >> foreign policy has taken a back seat for the sanders campaign, but last night clinton and sanders went back and forth over a number of global issues. the two tried to define the issue as a question of experience versus judgment. >> secretary clinton who was secretary of state for four years has more experience, that's not arguable in foreign affairs. but experience is not the only point. judgment is. and once again, back in 2002 when we both looked at the same evidence about the wisdom of the war in iraq, one of us voted the right way and one of us didn't. >> when it comes to judgment having run a hard race against senator obama at the time, he turned to me to be secretary of state. and when it comes to the biggest counterterrorism issues that we faced in this administration, namely whether or

they are overleveraged in struggling to put -- to make interest payments. strong balance , and no debt, in a market with many companies are expected to sell assets. i'm very much looking forward to taking the regulations of our board in february. i was going to bring up the mine you just mentioned. the market with this project at the end of the month. and you had discussions will you be selling a stake in that project, even if it is a majority one? andrew: one of the nice things about the higher grade options that we are exploring at the moment is that we could fund the construction and operation of those scoping study options entirely from our cash balance and the cash flow it will generate over the coming years. we are in this position where we don't need a partner. having said that, we are always open and interested to see what people might want to do. but we would never sell any part or less than fair value. i think having a position we can develop ourselves gives us a lot of options going forward. rishaad: thank you very much for joining us. the chief

this is what we seeing in europe right now, fears that overleveraged banks may struggle to meet theirancial obligations. think of deutsche bank. alix: since they did not do that back in 2008 like u.s. days. scarlet: you can see all of these on twitter. alix: the founder of crossing wall street, a newsletter that is focused on the stock market, with a good read on investor sentiment and what is happening right now. scarlet: i know the temptation for a lot of people in the markets is to talk about the market as if it is one giant entity. but you say there are major under it's going on. see the rotation out of the financials and into the utilities. is it financials, and that is a ratio. it shows the underperformance, whereas utilities have outperformed the broader market. what is driving this? is all the changing outlook of the federal reserve. we all we were going to get for ur rate increases this year, and nobody believes that anymore. even talking about going into negative rates. that is very premature. what is interesting today, we saw that hold trade online, with financials up hugel

you're the one who voted to deregulate swaps and derivatives in 2000, which contributed to the overleveraging of lehman brothers which was one of the culprits that brought down the economy. i'm not impugning your motive because you voted to deregulate swaps and derivatives. i'm in the saying you did it for any financial advantage. what we've got to do as democrats is to be united to actually solve these problems and what i believe is i have a better track record and a better opportunity to actually get that job done. that's what this election should be about. [ cheers and applause ] >> 30 seconds and then we're going to move on. >> i think as secretary clinton knows, there's nobody who fought harder -- i was on the house financial committee at that point -- i heard the arguments coming from democrats and republicans. robert ruben, alan greenspan about how great an idea would be if we did away with glass steelgal and allowed investor banks to merge. go to youtube today. look up greenspan-sanders. i helped lead the effort against deregulation. unfortunately, we lost that. the result is, was, th

you're the one who voted to deregulate swaps and derivatives in 2000, which contributed to the overleveraging of lehman brothers which was one of the culprits that brought down the economy. i'm not impugning your motive because you voted to deregulate swaps and derivatives. i'm in the saying you did it for any financial advantage. what we've got to do as democrats is to be united to actually solve these problems and what i believe is i have a better track record and a better opportunity to actually get that job done. that's what this election should be about. [ cheers and applause ] >> 30 seconds and then we're going to move on. >> i think as secretary clinton knows, there's nobody who fought harder -- i was on the house financial committee at that point -- i heard the arguments coming from democrats and republicans. robert ruben, alan greenspan about how great an idea would be if we did away with glass steelgal and allowed investor banks to merge. go to youtube today. look up greenspan-sanders. i helped lead the effort against deregulation. unfortunately, we lost that. the result is, was, th

you're the one who voted to deregulate swaps and derivatives in 2000 which contributed to the overleveraging of lehman brothers which was one of the culprits that brought down the economy. >> reporter: and it's true. sanders did vote yes on a commodity bill in 2000 that prevented regulation of credit default swaps. sanders continued his blows to the banks. >> when you have three out of the four largest banks in america today bigger than they were -- significantly bigger than when we bailed them out. >> reporter: that claim is true. if you just look at bank assets. jp morgan chase, bank of america and wells fargo have grown by trillions. but the risk to taxpayers now is much lower than it was in 2008. thanks to the passage of dodd frank. banks now have to keep higher reserves and can't invest in risky ventures like hedge funds. plus the fed conducted a stress test last year and found the top 31 banks not just the biggest three or four could withstand a 2008-level recession without needing a bailout. for reality check, i'm sam brock. >>> all right. let's turn things over to jeff. janelle wants

votes, you're the one who voted to deregulate swaps and derivatives in 2000 which contributed to overleveraging of lehman brothers which is one of the culprits that brought down the economy. i don't know, i'm not impugning your motive to because -- people mistakes and i'm not saying you did iter any financial advantage. what we've got to do as democrats, what we've got do do as democrats to be united to solve these problems and what i believe is that i have a better track record and a better opportunity to actually get that job done. that's what this election should be about. >> 30 seconds and then we'll go to a break. >> i think as secretary clinton knows, there is nobody who fought harder -- i was on the house financial committee at that time -- i heard the arguments coming from democrats and republicans, robert rubin, alan greenspan, about how great an idea it would be if we did away with glass-steagall and if we allowed investor banks and commercial banks and big insurance companies to merge. go to youtube today, look at up greenspan/sanders. listen to what i told them then. i helped lead t

the point on that is they were so hideously overleveraged that a bad thing happened.ore than $13 trillion of debt, mortgage, credit card debt on the consumer . it is still 180% of wage and salary income. so we are still way out in the woods. most consumers. at the top 10%. the bottom 90% of households are living hand to mouth. 60% of them don't have cash savings. all.have not unlettered at this idea the consumer is so healthy is wall street propaganda. that was david stockman, former director of the office of management and budget. releasessident obama 2017 budget proposal just a few hours ago but most budget proposals are dead on arrival. republicans voice their disapproval with the plan before it was even released. our bloomberg reporter joins us now from washington with the details. if release this budget everyone is going to say it is dead on arrival? present a vision as far as laying out proposals democrats think should be implemented in the coming years. as a policy document, it does make sense. on the smaller details, whether it is the request for a moonshot on

if i see margin compression or slow or returns of unproductive assets, if i see overleverage, i don't it. i don't care what the story s we'll have to get back to that kind of investing where in cash we trust. and the ability to generate on the consistent basis why you are rewarded by owning stock as they used to invest in the 50s, you couldn't even get people to buy companies that didn't produce huge dividend yields of 5 to 7%. >> i must have had three cups of coffee. i apologize. how many screen for that criteria you just stated and what was it like six months ago versus now? >> six months ago 156, today 138. i happen to own the companies in usa, outperforming by 9%, it's a whole new generation of saying i'm going to be disciplined and put rules on my investing and not going to move. no style drift. i don't own apple although i use the products because in september its balance sheet began to deteriorate and got kicked out. >> you got a column on cnbc pro where you can find yield in the market. >> if it is not something you want to take right now, there are parts of the market that ar

don't think we are going into a recession and i think oil to the front page because everybody is overleveragedone thought we would get to the levels and if we stay here -- tom: i want to go to a financial one on one that cory text on. -- touched upon. we waitingraged, are for a quintuple leveraged fund? this is out of control. cory: the leveraged etf's have been away for -- then a way for investors -- tom: i am in the double leverage cash fund. i wanted to pull up a correlation chart. see how well correlated oil is right now to the s&p but corymost half, said it was the most it's ever been. see howrs ago, you can correlated we were back in 2012. stephanie: we have to take a quick break. they are demanding you return to radio. renee is staying with us and because cory is here and don't throws,the man of three steph curry, nba m.v.p.. golden state warriors took on the washington wizards, he started the game and scored 51 points in under 36 minutes. cory: he had 11 free throws. stephanie: i remind you, i made my first basket and he missed his. we stick with four-week eyes on drug concerns. we get

they will overleveraged. over capitulate. stuart: european banks are sinking. down 15% today alone.understand the question. can't you. >> certainly can understand the question. there are parallels. some of the same people saying by the banks. margins are expanding. it changes really quickly. someone else is buying it. american banks. way, way down. loading $100 to a european government. they only give me back $99. that is a negative interest rate did banks cannot make money in that environment. it is a very serious situation for the world financial situation. you are telling me that you are not sure? >> giving me high quality merchandise that i can talk to you about how far can prices. stuart: you told me that you would buy boeing, exxon and walmart. you buy them today. >> absolutely. it is one of two. i do not take so. they control the skies. paying a dividend. it will yield this year. 3.7%. stuart: i do not have time to go into it. i love it. come back soon. how about tesla. a bright spot today. the stock is up. look at that. tesla is up. $10 a share. >> they say that they will be

david stockman: i think the point on that is a were so hideously overleveraged into 2008 that a bad thing$13ere is more trillion debt on the consumer and there is 180% of wage and salary income. historically, it was 80%, so we await out in the woods. about top 10% of the consumers go to macy's but now they are not, but the bottom 90% of households are living hand to mouth, 60% to not have cash savings. they haven't uncovered at all, so the idea is that the consumer is so healthy but it is just wall street propaganda. stephanie: the consumer is unhappy and you can see that playing out in the presidential donald trump aee bernie sanders doing well. when you said a moment ago that banks did not see this coming, why would we think they are seeing it now? do banks realize the junk they have on their books? from deutsche bank ceo saying, we are really good, rocksolid, we heard that from hank greenberg two days before they got kicked, so how bad are the banks in terms of their own balance sheets? david stockman: it is hard to know because they don't disclose. i know deutsche bank has a 2 trillio

you're the one who voted to deregulate swaps and derivatives in 2000, which contributed to the overleveraging of lehman brothers which was one of the culprits that brought down the economy. so i don't know, i'm not impugning your motive because you voted to deregulate swaps and derivative, people make mistakes and i'm certainly not saying you did it for any kind of financial advantage. >> i think as secretary clinton knows, there is nobody who fought harder -- i was on the house financial committee at that point. i heard the arguments coming from democrats and republicans, robert rubin, alan greenspan, about how great an idea it would be if we did away with glass-steagall and if we allowed investor banks and commercial banks and big insurance companies to merge. go to youtube today, look up "greenspan, sanders." listen to what i told them then. i helped lead the effort against deregulation. unfortunately, we lost that. the result is, was, the worst financial disaster since the great depression. >> all right. so much to go through here. i thought hillary clinton was amazing. she was unbelievab