the secretary of treasury from goldman sachs is john paulson goldman sachs coconspirator paulson andgoldman came up with the idea of selling mortgage securities to europe mainly to european pension funds and the reserve so that they would insurance on mortgage securities called collateralized debt obligations these are derivatives and the idea was that if the mortgage market improved in america and the economy picked up and they'd make a lot of money selling insurance on these mortgages what goldman and paulson didn't say is that in fact while they are selling these securities they were betting that the securities would turn into junk that the market would collapse and mortgages in america would that the mortgage market would implode and they would make billions that's what happened right after they sold several billion dollars in mortgage securities goldman and paulson. they were they lost ninety nine percent of their value in weeks they were complete total garbage and they didn't say that in fact they were the guys that were making the money selling these things so it was a complet

i'm ken paulson. back next week with another conversation about the first amendment and free expression. hope you can join us then for speaking freely. captioning provided by the freedom forum first amendment center captioning by captionmax www.captionmax.com ♪ >> i am so looking forward to the street fair tomorrow. >> it is in the mission, how are we going to get there? we are not driving. >> well what do you suggest? >> there are a lot of great transportation choices in the city and there is one place to find them all, sfnta.com. >> sfmta.com. >> it is the walking parking, and riding muni and it is all here in one place. >> sitting in front of my computer waiting transportation options that is not exactly how i want to spend my saturday night. >> the new sfmta.com is mobile friendly, it works great on a tablet, smart phone or a lap top, it is built to go wherever we go. >> cool. >> but, let's just take the same route tomorrow that we always take, okay? >> it might be much more fun to ride our bikes.

investors believe paulson was a long investor., jury finding ptourre guilty on six of the seven fraud counts against him. mary thompson is in the courtroom. she should be out shortly with the color on this and exactly what counts were and what was the one count he was found not liable for. and also, what the penalty is that he will now face. because again, we should point out that this is a civil fraud case. it is a big victory for the security and exchange commission which was trying here to demonstrate that it is on top of the events of the financial crisis in 2008. and this is really the first fraud case that directly is linked to it from the sec. main time, tourre went into the trial saying he was here to tell the truth and clear his name during three days of testimony. the jury got the case on wednesday. so lookes like they deliberated for a little bit more than a day. er with continuing to gather information from here and expect to have mary thompson in front of the camera as well. >> back to you. >> scott, give us some of t

just to set the table back, you know, this was the situation where john paulson, paulson and companyery heavily against the, you know, bundled-up mortgage-backed securities, and the argument by the sec was that, you know, goldman was selling and touting the product knowing full well that somebody was betting against it, and your point very well taken, david, which is if others are similarly doing that knowing that somebody is, you know, betting against it, so be it. now, goldman had settled, you remember, for $550 million, interestingly enough, on this same fact pattern. did not admit nor deny liability. there was a little bit of a dust up over that, and that's still pending legally. and then again, you know, this case went against mr.tourre individually. david: a lot of people remember, it was back in 2007 just when troubles in the subprime market were coming up. john paulson eventually made a billion dollars on abacus, partly paid by some of the people who, unfortunately, took the sucker bet from fabrice tourre. is john paulson wooried right now that they may be after him? >> well,

we turn to jim paulson, the chief investment officer at wells capital investment. good to have you. >> good to see you, suzy. >> a lot of negativity today in the markets. what is your take? >> i think a lot of it, suzy, we're digesting a number of big things after a huge market move. that's one of the things we're digesting. we made such a big move off last fall fall lows. in audition, we've had just a dramatic change in long-term interest rates. you're talking about mortgage rates going up, the ten-year treasury hitting 280 today. it was 160 not that long ago. of course, we'll face feds tapering or slowing down quantitative easing soon. these are big events and i think it led to a little market indigestion if you will. the market is in a trading range for the rest of the year, but i think we'll get through it and as we come out the other end, maybe at the end of this year, i think we'll be stronger for it. we'll find out that both the economy and the stock market can stand on it's own two feet without as much support from the fed and even in the face of higher yie

we have john paulson doubling down on one of his big holdings.america macabre and gold. what is interesting about the trade today, we see gold for december delivery settling about $28. 1,361 or thereabouts. the physical market, the delivery there is really tight. it big asian demand, but what we want to return to is what is going on with the paper trades in the exchange-rate as products in gold, down about $58 billion so far this year. it has been on a rocket ride since december 2008. then it went up 71,894 in july and august of 2011. that starts coming back down this year. the cftc was really clear that the commodities futures trading commission has data on the long positions, the bullish bets on gold. they sort of mirror what is going on with a hedge fund guys. the bullish bets for the long positions have been cut by 70%. that is a big number. 70 percent cut again in the futures and options on the net loss position in gold futures delivery. want to give you one final newsbreak. breaking news coming out. forbes magazine is telling the math on jo

i'm ken paulson.t week with another conversation about the first amendment, the arts, and american culture on speaking freely. captioning provided by the freedom forum first amendment center. captioning by tate at captionmax www.captionmax.com take pictures of the view of the city that you soon went forgot. our first look out and at buena vista park san francisco heavily forested hill with couples and doing walkers it's as old as the near neighbor golden gate park and both have a coast live oak forest and fresh in retreat from urban life and meanders under a canopy of oaks yup lipid u.s. and chill out in this pleasant and quiet environment and you might see butter nice, and dandelion and is squirrels hundred dollaring for their next meal and buena vista park is 88

so well yeah exactly and hank paulson i believe met with a bunch of goldman sachs related hedge funds and he told them that in fact the u.s. government would bail out fannie mae and freddie mac. when he was telling publicly and he told congress and therefore the public of america that they would not that they definitely definitely would not so they had insider information on that now let's look at this next headline soros is biggest holding a bearish call on the s. and p. five hundred now of course you would not know this listen to the mainstream financial news because they just focused on his long position on apple and his selling of g.l.d. the gold e.t.f. but soros fund management's biggest position is a put on the s. and p. five hundred e.t.f. s.p.y. sorest bought a put one million two hundred forty eight thousand six hundred forty three s.p.y. units in the quarter well the services make a huge negative bet and made him a billion dollars trashing the british pound he's made other multibillion dollar bets over the course of the years he's made billions of dollars taking the opposite

barclays they all dropped fifty sixty seventy percent value their member hank paulson who was a treasure psyco the time called up buffett he called up the head of citi group he called up the head of goldman sachs and j.p. morgan said that the government was going to bail out these institutions they were not going to quote unquote fail he passed that information along secretly without public disclosure if they all bought those stocks they may double triple quadruple now they want to get out so it's so c. and b. c. they sound maria bartiromo to go on c.b.c. and say oh you poor individual investors aren't fully invested yet turn to buy in at the all time i use your margin to get a visceral this is what we want to do with your net worth maria this is notorious investment program to get all those zero well yeah exactly and hank paulson i believe met with a bunch of goldman sachs related hedge funds and he told them that in fact the u.s. government would bail out fannie mae and freddie mac. when he was telling publicly and he told congress and therefore the public of america that they would no

hank paulson didn't communicate that government always bailed out, they let lehman brothers go bankrupt on september 15th, 2008, and of course the rest is history. that is too big to fail. before it was an implicit assumption. now is the sort of regulatory policy. we have under dodd-frank systemically important financial institutions and that is your credit card--jargon for too big to be allowed to fail. certain institutions depending on size and assets are dumped important financial institutions. all the provisions aren't bad but simply doing that reinforces the idea of too big to fail. the other thing dodd-frank does is what i'm most concerned with, the consumer financial protection bureau, it sounds very nice. look at the logo, , what is not to like? it is about protecting consumers. just up here across the street from the old executive office building and i predict it will outgrow its space in a few years. consumer protection bureau is a sovereign entity unlike any bureaucracy that existed before. not under the control of congress but the fed chairman and board don't have a lot of c

you know, a lot of people imagine that during the 2008 crisis these government officials like hank paulson who made key decisions, geithner, actually knew something. all of the reports from the actual deliberations showed it was a pure crisis. they did not know anything. and their solution was to excerpt government power as a replacement for actual knowledge and the knowledge was out in the economy, but instead they sucked up all of the power into washington and actually perpetrated the very extended depression that they thought they were supporting. >> host: as we are taping this interview, the markets have hit pretty historic highs. how do you see the economy and the markets in a general sense? >> guest: a general sense, it depends on a program of deregulation to unleash the new companies on the frontiers of the economy. the big companies are doing fine. they have the power to the fight government regulators and lawyers to negotiate their way through the mazes. it is almost impossible to have the initial public offering today. and all economic growth ultimately derives -- not all, but vi

he serves as the vice president of paulson electric, a fourth- generation family business with offices cedar rapids, waterloo and -- prior to going to paulson electric, tyler practiced law with the firm of bradley and riley with offices in cedar rapids and iowa city. he is the representative of district 65 in cedar rapids. forr has led the fight early childhood education and affordable healthcare for iowa. as well as the new prosperity for iowans. born and raised in cedar

and i want to come to jim paulson. all right. very distinguished wall street economist and strategist. jim paulson, i'll give you one number. jobless claims. okay? they're low. and they look good. on the other hand, retail sales mediocre and same-store sales lousy. manufacturing falling. business equipment flat. housing starts falling. consumer confidence falling. i don't see where this great second half recovery's going to come from. and it sure isn't going to come from the policies. we have two tax hikes in there. i'm not even talking payroll tax. january 1st with the bush tax cuts were repealed at the top end and now the obama care tax hikes kick into place for investors. so where is this stimulus that's going to give us a great second half economy? >> well, i don't think it's really the government that's driving it, larry. i'd say it's more the private economy. i'm giving up on waiting for the government to do something to help us out. but i do see -- i agree that growth rate's slow. but i'll tell you what is different. it's

paulson is uping shares in freeport-mcmoran and raising it 70%.what is going on in gold it is interesting. get this in december of '08. $752 an ounce. boy those are the days. it doubled as the fed ramped up its balance theet by two trillion between 08 and june 2011. so that is what is going on with the paper trades in gold, right? we want to look at too, there's another story. there's a bigger story too if you want to think about what is going on with the world gold council report. we're talking about worldwide demand in gold. wow!. china's demand in gold up 54%. india tracking 51%. mideast, 33. turkey, double digits. there is still demand for physical gold, right? ashley: yeah. >> what we're talking about with the hedge fund guys, these are paper trades again. these are trades in and out of gold miners and etfs. so central banks too, must be noted 10th straight quarter biling gold this past quarter. there are different storylines with gold. do not listen to media pundits who try to put a floor in gold. warning, hhbc tried that last april. said 15

that john paulson hedge fund. he cherry pick the assets for this deal and that shorted it.ll of that allegedly hid from investors. your going to see in that jury question, they're saying they want the exhibit, they want more permission. get this, breaking news. he wanted to get a job at the john paulson hedge fund, again intent to mislead investors for its own personal endorsement. discover the next question. this is a foreman of the jury. asking the judge for direction on whether not they can get a liability charge against for greece. the liability finding. for just one piece of the deal. this is a multi card deal. different churches. the judge did say yes, you can find them liable. another breaking news story, the jurors sent a thank-you note to the judge for moving the case along quickly. this means that possibly the jury is nearing a verdict. again, high-profile sec case from the fallout of the financial crisis. liz: those will be watching in the second there is a virgin will jump in and let us know exactly what is going on. good that she pointed out the reason that the

thank you (clapping) >> tim paulson joins us as it's executive director in 2004 so he's been on this journalist with the city to rebuild the shipyard. the san francisco labor council is the center of the labor in san francisco it's comprised of 1 hundred and 50 local unions representing 1 hundred thousand working men and women in this city. it's to promote social justice for all. please welcome tim to say a few words (clapping) >> thank you pam. so on behalf of the san francisco labor council i want to acknowledge what the previous leaders talked about. we were involved in a complexed process. and i'm proud of our partners that actually sat down and did the agreement that's he hopefully b will be the strongest in the country. i want to acknowledge my partner and all the building trades that are repealed just stand up real quickly (clapping) >> thanks for what's going on. i also want to acknowledge connie ford who's been working diligently with the community whether or not it is with the pact or the other partners we're proud of the work. but one out of 3 households has a member in it

paulson and company going to be buying steinway musical instruments $40 a share. on a steinway. >> macy's earnings weaker than expected. >> the consumers stop blaming the -- start to manage a bit more. >> the stock is under pressure. >> listen, i don't believe the government's calculations. there. i said it. >> because you have better number, rick. >> oh no i don't have better numbers. i have common sense. i don't like substitution. if i like my big mac, i'm not going to substitute dairy queen for it. if i want to buy a -- >> because you're -- >> because you'll buy more expensive -- that doesn't make any sense, rick. >> oh, give me a break. >> stock's got a nice bump and now, there's a belief, david we talked about this earlier, that at least at this point, has put a floor on apple. >> apple is back at 500 for just a second there. it hasn't closed at 500 or above since way back in january. so, it has been a -- >> before you can point. the so-called whale of jpmorgan chase has cut a deal a nonprosecution agreement with the u.s. justice department, which means he is

those products were created together with the hedge fund led by john paulson.n the basis of the verdict, the u.s. district court is expected to impose a civil penalty on toure. sec officials said they were gratified by the jury's finding. goldman sachs settled the case in 2010 by agreeing to pay $550 million to investors. it reached that settlement without admitting any wrong doing. >>> indonesia's steady economic growth may be coming to an end. the latest statistics show the expansion stayed at the 5% level. that hasn't happened in nearly three years. spokespersons with indonesia's statistics bureau said gdp grew 5.8% in the latest quarter from a year earlier. that's the first 5% level growth since the third quarter of 2010. the spokespersons say domestic demand remains solid. but they point out experts of commodities such as coal, slowed down. analysts are concerned about the indonesian economy. they say the country's currency has been weakening, pushing up the index 8.6% in july. >>> a singer in china is spreading our music through modern technology. she dra

first we are going to steve paulson. he knows about our

ktvu meteorologist steve paulson will be here with more on what you can expect this weekend. >> reporter: six cars destroyed, two others damaged. but no one was hurt in this carport fire. why did one man end up going to the hospital in an ambulance? ♪ ♪ but did you know we've also mastered three incredibly craveable pastas? sizzler's new incredibly craveable combos for just $10.99, right now. ♪ ♪ >>> the u.s. state department issued a travel alert that said al qaeda may be planning terrorist attacks soon in the middle east and north africa. as a precaution, the u.s. is closing 21 embassies and consulates in 17 countries on sunday. officials say they have credible information about a possible attack. first word of the concern came yesterday during the daily state department briefing. >> the department has been apprised out of an abundant of caution, indicates we should institute these precautionary steps. >> the closed embassies include those in iraq, egypt, libya, saudi arabia, afghanistan, yemen and 11 other countries as well as consulates in iraq, saudi arabia and united arab emirates.

>> to me the fact that john paulson was not a big name when this deal was put together.e argument is, the investor, this aca, should have been told that john paulson worked or his point man, his point person worked on putting this deal together and they were shorting this deal. to me it should have made a difference. wasn't a big name back then. they would have probably done the deal anyway. melissa: how does everyone feel about the fact this happened? what does it change going forward? what is the gossip? >> the big problem with the sec's enforcement being the market cop there has been nobody put in jail because of financial collapse, because of derivatives built on rotten subprime loans. the thing is -- melissa: does anybody deserve to be in jail for that? >> yeah, because there was huge amount of greed and accounting fraud. i'll tell you something, this is the biggest accounting fraud that got away, the subprime collapse. here is the problem. fabrice tourre is junior cog in the machine, lower level vice president, one of thousands. he was the deal captain on this deal

steve paulson will tell us all about the weather. but it's a nice look. it's monday morning, august 26th thank you for joining us i'm pam cook. >> and good morning, i'm dave clark. let's check weather and traffic. steve is over there. steve, can you find sun for us today? >> yes, i can but not right now. li

steve paulson will be here with what we can expect into the weekend. >>> one man is dead, one is fighting for his life after both were shot on this busy antioch roadway. we'll tell you what we've learned about the victim and the suspect vehicle. >>> gunfire erupted on a busy antioch street. investigators worked through the night as they collected evidence and conducted interviews. claudine wong explains how the violence unfolded in this report. >> reporter: investigators today are still trying to figure out what led to this deadly shooting in antioch just after 7:45 last night. the back window of this car shattered by the bullets that left one man dead and another critically injured. >> everybody was staring. there were cars parked around. the police were trying to detour everybody around to delta fair and it was -- was a pretty crazy scene. >> reporter: that is what only one of two crime scenes. this scene is about a half-mile away. that's where police shay the shots were fired as the two victims were in their car driving down the road. police believe someone in a cold-colored four-door

shares hit a high note on word the company agreed to be purchased by hedge fund paulson & company for $40 dollars a share. shares shot up 7% before closing the day at 41 dollars.earlier this summer-- the kohlberg company made a 35 dollar a share offer.steinway is now paying kohlberg a 6 million dollar fee to terminate that deal.the buyout is expected to close in september. debt is on the decline in america. house hold debt including mortgages, credit cards, and auto loans fell $78 billion in the second quarter to $11.15 trillion. sounds like a lot but it's the lowest level since 2006. debt is dwindling as the housing market improves giving americans the opportunity to sell homes they cannot afford. europe is also making steps in the right direction as it emerges from recession.gdp has increased three-tenths of a percent--- with germany and france reporting in solid gains. the data beat many economists' expectations. however, critics are saying the region is not in the clear just yet. on september fourth, the g-d-p numbers released this week will be revised -- which could indicate more

tell us about how crews are preparing in a moment but first, we begin our team coverage with steve paulson who explains the weather conditions outside. >>> well, it's a tale of three different forecasts. if you are near the coast, fog or sun. if you are south bay or parts of the peninsula, it's mostly sunny. although there's one little band of clouds going through the south bay. north bay and parts of the east bay. a lot of clouds, mostly cloudy. it's cool, warm, hot, muggy. a little low off central california is producing a lot of cloud cover and it will be with us through thursday morning. i think a bert opportunity for showers is tuesday. the red flag warning is out for lightning, for causing fires. it's very dry and hot. already 93 in livermore. yesterday they were 102. san francisco is 61. half moon bay, also 61. a huge difference. watch the clouds streaming in. you can see they are definitely taking aim more towards the east and north bay. some of that looks like it wants to produce rain. not too much. anything reported. but as you go up to the sierra. there's lot spinning off the sp

first to steve paulson. >> thank you. good morning, on this friday. a little fog. very warm clouds. lows are simply not cooling off. water temps are very, very warm. just really you are taking yesterday's lows and carry them over. more 60s and 50s. by noon 60s and 70s and 80s. and still i think there will be a couple little 90s coming in there. signs of a slight drop in some of the inland temps not too much. san francisco forecast kind of stuck in a pattern here which is near average for this time

. >> i had a conversation with ken paulson, he didn't indicate that he had a chance to speak with miss malcolm. she and i did have a chance to speak directly earlier last month but i haven't had a call since then. the simplest way to put this, the one thing i heard -- >> i think you answered the question. as we move forward what i'm proposed is not a delay. 2-3 weeks is not going to destroy the planet. if there is no common ground, i get that and then i'm ready to vote. >> i this i the answer is there is opportunities for everybody to look at this as a job and environmental benefit. i don't think that recs even in the short-term accomplish that. thank you. >> just a question, commissioner term with your dialoguewith labor here, >> former commissioner, sir >> but not a witness. >> if we were actually to continue a program that didn't include recs, is that mean there would be more labor support? >> look, the one thing that i did here that was positive that i considered to be very positive is the possibility of using hedgeey power, it's by local members. we absolutely support that. we sup

but we begin our team coverage with steve paulson who tells us about the red flag warning in effect right now. >> that's correct. things are quiet and cooler. we seem to be getting a lot of dry air coming in here. it's sunny to mostly sunny unless you are on parts of the coast. so far we're keeping an eye on clouds. the low is still spinning off there. it's not moving but it will by tonight and tomorrow. tomorrow it will be on tom of us -- on top of us. suffice it to say, it's cooler. bewe had temperatures -- we had temperatures near 90. also some of that fog 207b the coast is keeping temperatures very cool there. sea breeze is really ramped up. more of a westerly wind. even gusts to about 30. yesterday it was almost calm conditions. we had very hot weather. today you can see the low still spinning. it's far away. there's not a lot coming off the sierra, the rain line continues to move north but we're not done yet. the main issue, there's a lot of fog. tonight, tomorrow could be more in line for another round of lightning but things look a lot quieter today. >>> as we mentioned, people ac

i'm ken paulson, executive director of the first amendment center, and this is a special edition of then of banned books week. it features three very special guests. they include judy blume, one of this country's most popular and most frequently censored authors, carolivia herron, whose critically-acclaimed book, nappy hair, was challenged in a brooklyn school, and cammie mannino, a bookseller who took a stand against censorship. welcome to all of you. i have to begin with judy. you know, there are these lists every year about the most banned books. each and every year, you're in the top five.

in the second quarter, george soros got out of position in the gold etf and paulson cut in half his massive stake in the gld, may sound like bad news but mean's ton of overhead supply no longer weighs on the market. second reason for the move higher, mandy, physical demand. gold purchases by chinese and indian consumers jumping 71% and 87% compared to last year a lot of the buyers appear to be bargain hunters. the technicians through the think the consumers could be right here, at least in the near term that bring us to the third reason. that's the speeds of this move. gold may have simply fall toon far too fast as bank of america, merrill lynch's mcneil curry point out to me own futures now, said "this trend has gotten way too stretched, like a rubber band and now, we are snapping back." so, how much higher can we go from here? well, according to curry, this move could take gold to 1450 in the near term that's almost another 100 bucks from here, man kim. >> thank you very much for that, jackie deangeles. i want to get more on this now with mike. what do you think about gold? go higher from

staff to continue the discussions that they have had with ibw and not just them, i did speak with paulson the director of labor council and we had a number of conversations about this and what we both agreed that irrespective of what happens today regarding rates that it's important for those discussions to continue. it's important for us to take those concerns into consideration and i know that they want to work with the puc, with lafco. again, i do believe that i'm a half glass full kind of person. i think that we have to continue those discussions and i think there is an opportunity for us especially given where the market is to figure out how we expand this program to make it look like something that everyone can buy into. >> thank you, commissioner campos. >> i would like to hear public comment as well and i would like to go on record with my sense of urgency in more of sort of a global perspective of this community choice program because i don't really think i mentioned that from a big picture perspective and i just hope that even if the motion does not get seconded or this vote doe

paulson & co to buy steinway. learned to play the piano on a steinway.berg and company agreed to buy steinway but says it won't match the paulson offer. they will pay a termination fee of $6 opinion 7 million. there was a 45-day go shop on that transaction. the original price, $35 a share. mr. paulson's typically a hedge fund, so kind of interesting that he wants to buy a piano-maker. >> all right. deere reporting earnings this morning. joining us right now on the "squawk" "newsline" is jpmorgan's u.s. machinery analyst. looking at these numbers, they were much stronger than had been expected, and the company itself says because the farm sector in north and south america is much better -- it doing incredibly well. how much of a surprise did this come to you, just how strong these numbers were? >> you know, honestly, becky, it wasn't really about the quarter. investors knew that the season is going pretty well this year, but because a lot of farmers had placed orders for equipment last year when corn was still $7, i think the key that investors will be fo

i'm ken paulson, executive director of the first amendment center.one of the most powerful and provocative songs of the past century. the song is strange fruit, and it's the subject of a new book by our guest, david margolick. welcome. thank you, ken.