>> in the first plac if somebody is known they wilbe bailed out, well, ey do excesse risk. because ey're doing it on the tax payers' llar. the whole syem is badly damaged en bailouts occur. it takes all of the accountability out othe syem. d the market system depends on aountability. so we have to degn a system sonybody in it can fail. >> reporter: d you run into thisn your... some of your past liv? or is this a new phemenon? >> oh, no. this is something that youee inate lot of settings. i've run into the sa problem before. long aut august or so of 1968 , a strike of the long shoremen sharts on the eastern gulf coast. presidenjohnson thinks that will creata national emergency. he enjoins the strike. that decision is aealed to the supreme court. fast track. the supreme court agre with the presidt. so the strikis stopped. it startin again somewhere around january 1or something of969. >> reporter: less than aeek later shultz was srn in as president nixon's secretary labor. >> so i nt to the president. i sa to him, mr. president, your pdecessor was wrong. and the preme court wa

street, not only do they not have that view th are pushing ck on any view tha would put real reform in plac>> porter: john cassidy, whatould you add to that. srt with a view ofall street a washington. i want to k you about changesn economic, among economyists later bustart with what andrewas talking about. >> i think andrewit the nail on the head tre when he talked aboutohn mack saying we can'do this by ourselves. given the incentives the guys face who run these ll street rms, the way they make moy is by lendi to people and taking riss. and comting against ach other. they are always going to lend more and ta more risks. if mebody from the outside doesn't come in and sayto these guys tre are limits on what you can do, we're going t inevitably geback to where we beg. the only person, nobody wall seet can do that by themselves. we ed the government to step in and set rules and regations for the firm. i think that is what john ack was driving at. said we need help. we can't do it by ourselv. the oama administraon has gone some way in tat direction proposing vaous lits on what the banks c . rain