and chief level strategist for europe if it capital again peter schiff. all right it's time now for word of the day where we break down a financial term or concept for our very smart viewer just maybe not the financial expert in the audience and today it is bank run and given that this happened in latvia over the weekend take a look latvian authorities monday said that a run on swedish banks in latvia was started by false rumors and destabilizing the country and that its police forces were investigating the matter now latvians if you didn't see this story withdrew large sums of cash from swedish bank machines reportedly after rumors that they were in trouble which circulated on social media like twitter oh the power of twitter that aside it is also the anniversary today of this headline from one nine hundred thirty let's take a look at the bank of us closes its doors state takes over affairs aid offered to depositors why did this happen because a bank run so what is a bank run exactly it is this a situation in which numerous bank customers twi or withdraw

global were securities firm rather than a futurist firm peter schiff asked her well what's the difference i have to explain the search what that means is is that in a security firm bankruptcy the debtors or the creditors of the company go to the front of the line and the customers go to the end of the line in a commodity brokerage bankruptcy the customers needless to say go to the front of the line and that cuomo has less than four hundred security council and i believe they had more than forty thousand futures accounts so this was willful that up to you screw the customers and put specifically j.p. morgan at the front of the line once again the guy at the bank j.p. morgan gets congress to change laws on the fly to their name as a predatory terrorist. bad thing i would think so hey let's call the white house. notice all of the white house this guy is out golfing but going forward max it doesn't matter who the president is it could be ron paul it could be sarah pail and it could be hellary clinton who ever is in that position whoever replaces ben bernanke whoever replaces timothy geitner t

before two thousand and eight and something that's interesting to me because yesterday we had peter schiff on the show who you know on one hand thinks we were speaking about occupy wall street and i think that a lot of the anger towards wall street and itself towards the finance sector as well as government and this revolving door that you know that goes on is that nothing is regulated fraud is rampant because everything is corrupt and then there's just money that goes around and yet peter is part of this one percent that seems. you want to fight back and so i wonder what you think about this fact that now we see people like him and we see others saying going after us and we're the producers well this thing is a productive one right with all that saying is peter thinks that government is the problem he wouldn't disagree with you that it's a problem that banks got bailed out or that there's all this exciting they're going to blame banks either because he thinks that it starts with the government that it's the government's fault that the government is bailing them out and i'm not going to sp

one percent but this is an attack on the very productive but what exactly the bankers produce peter schiff is going to join us for that one then the media is in a frenzy over racist newsletters from the past coming from ron paul now he says he didn't write them or read them but the response has been a little bit muddled but now that he's getting this front runner media treatment will this be enough to damage and invalidate his campaign or to speak to james fallows and new statistics came out this week showing that nearly one in three americans are rested by age twenty three so what's the bottom of it and could the lack of answers be because the government hasn't been keeping the proper statistics on the programs that they themselves create radley balko is going to listen we have all that and more free tonight including a dose of happy hour but first let's take a look at the mainstream media has decided to miss. all right so the payroll tax cut has yet to be extended and the entire battle seems nowhere close to being resolved in washington at the moment if in a matter of days they still don

steve can speak about economists not seeing the crisis coming you mean mainstream right because peter schiff saw it marc fab or saw the austrian school of economics saw it and ron paul saw worn yelled wrote bills trying to stop it since zero three and before to answer your question yes we are talking about the mainstream conventional wisdom that inspired articles like this one this two thousand and nine article by paul krugman was entitled how did economists get it so wrong and it goes on to point out few economists saw our current crisis coming more important was the profession's blindness to the very possibility of catastrophic failures in a market economy now as our viewer points out people did see this coming and our viewer mentioned ron paul and looking back to september two thousand and three you can see an example where he warned of the housing bubble and crisis he said in the house financial services committee despite the long term damage to the economy inflicted by the government's interference in the housing market the government's policy of diverting capital to other uses creates

one percent but this is an attack on the very productive but what exactly the bankers produce peter schiff is going to join us for that one then the media is in a frenzy over racist newsletters from the past coming from ron paul now he says he didn't write them or read them.

of euro pacific capital peter schiff if that's true so stay tuned for that i'll be right back here at seven. welcome to the future new year's wishes on technology updates next generation places made from super strong cultural lightweight building material.

points out there but the question is what i think is going to buy it joining me to discuss it is peter schiff c.e.o. of euro pacific capital peter thanks so much for joining us tonight and i guess i want to start you know you when you went down to occupy wall street as a county park you had a little sign i am the one percent you said somebody has got to do it and do you feel like you have some company now well of course there are a lot of people in the one percent but unfortunately i think that particular bloomberg story focused on the wrong portion of the one percent they interviewed a lot of bankers a lot of people who benefited from the wall street bailouts and so they were giving the rest of us in the one percent the ninety nine percent of the one percent a bad name and in that way this story played right into you know the playbook of the occupy wall street movement because they're trying to paint everybody with this brush they're trying to say that the one percent is getting all this bailout money and getting special tax breaks and paying lower taxes than the school the school teachers i