did that the notion of glass steagall going away allowed investment banks to find a way and push away in washington to be able to leverage to be able to borrow to be able to do whatever it was they wanted. to do to create profits in a very risky way and there's a lot of argument that says last you've got nothing to do with a company like goldman sachs making profits but the fact is it spurred a company like goldman sachs to go and create leverage and find leverage and lobby for leverage and create all these risky products so there was a direct result between the repeal of that act and investment banks like goldman sachs doing what it is they do the problem though because of that is that there was never a return to the idea of what's the difference between a market maker and this is lloyd blankfein argument and a company an investment house that's creating securities on behalf of its clients so from the perspective of goldman from the spread of the legal poorly regulated investment banking system and banking system the company is allowed to do what it calls the market making to be sure

an awful lot of sins and it's course is the problem on wall street with the elimination of glass steagall and other regulations is that you have groups like goldman sachs claiming that they're making a market of course it's not their job is it but the fact that they can claim they're making the market gives them a gives them a blank check they can say almost anything and they get away with murder is not correct goes i mean goldman's profits were predicated eighty percent on their trading revenues and not distinguishing those trading revenues from market making revenues in which they're taking positions they could be buying for one client they could be selling for another client and what the decimation of glass steagall did. the notion of of lasting going away allowed investment banks to find a way and push away in washington to be able to leverage to be able to borrow to be able to do whatever it was they wanted. to do to create profits in a very risky way and there's a lot of argument that says glass to go nothing to do with a company like goldman sachs making profits but the fact is it

legislation the commodity futures modernization act and grimly split which which blew up the glass steagall act which broke up the you know kept the investment banks from real banking and throw them out let's let's just undo these things there was actually legislation that the dancing close to get through the house to undo these things that the republicans stopped in the sun in the last legislative session it's not going to come out of the house this time because crazy republicans it's time to throw the money changers out of the temple of commerce. our public education system is under siege by republicans all around the country republican governors are pillaging their state's education budgets siphoning off hundreds of millions of dollars from public education and moving them money this is where gets really interesting moving that money into private or charter school voucher programs that includes religious schools there's a giant wall that prevents government money from funny religious schools but republicans have figured out a way to tunnel underneath that wall and fund them anyway throug

you combine that with glass- steagall, it seems like it is a party out of control. we dould not -- shouldn't something about all the speculation in the oil market? there are 50 million federal employees out there. -- 15 million men federal employees out there. -- 15 million federal employees out there. guest: i do think that we have to deal with, very aggressively, with speculation. goldman sachs has let its investors know that the price of a barrel of oil is $26 higher as a result of the speculation that is going on. the dodd-frank bill empowers the futures trading commission to crack down on excessive speculation. i am organizing a letter among my colleagues to go to the chairman of the cftc to urge him to use that authority to intervene in the case of excessive speculation. yesterday, the price of oil went down almost $10 a barrel without any external factors at play. this is about speculation, and we need to get it under some form of control. host: you are on the air. caller: thank you for giving me the opportunity to speak. i am so concerned. and i love this co

caller: i would like to speak to the possible reinstatement the glass-steagall act.in, this is the origination of the disaster essentially in our times. also, i wanted you to comment on the angelides commission because they apparently only had $6 million to use to do their investigation whereas during the clinton administration, the congress allotted $60 million for them to investigate the lewinsky scandal. that is scandalous in and of itself. guest: the fdic did have a limited resources. and what they really had was limited time. they had a due date for their report and with these complex cases, it could be that they did not figure this out loud report -- this all out. back then, there were hearings about the 1929 crash and what had gone on in the banking back then. those hearings had a deadline. the commissioner is just kept going, and going, and hammering, and investigating until the got to the bottom of it. the fdic certainly had a shortage of time and that may have been an issue. host: we are talking about prosecutions in the post- financial meltdown with louise

when we look at the repeal of the glass-steagall act, we had a clear delineation line between the investmentking and commercial banking. when we looked at the security chasm of mortgages, that led to the economic collapse. i think we need to look at our overall economic policy as well as our monetary policy. i am very concerned about the q.e.2 program. host: as a member of the tea party caucus, which you support the chairwoman michele bachmann? guest: i cannot tell her what to do and what not to do. right now, it is an open field. we will see who the front runner is. every 1 weeks to go out and present themselves and show a planned for the united states of america. they are lukewarm. i am not going to kid. what we have to look at is -- as we go into the presidential election cycle, the cycles are starting to mirror "american idol." it requires people with persona and an ability to convey the message of this country as we go forward. host: who would you like to see a jump in? if michele bachmann called you up for support, would you give it? guest: i would have to sit down and talk to her. you

you combine that with glass- steagall, it seems like it is a party out of control.dould not -- shouldn't something about all the speculation in the oil market? there are 50 million federal employees out there. -- 15 million men federal employees out there. -- 15 million federal employees out there. guest: i do think that we have to deal with, very aggressively, with speculation. goldman sachs has let its investors know that the price of a barrel of oil is $26 higher as a result of the speculation that is going on. the dodd-frank bill empowers the futures trading commission to crack down on excessive speculation. i am organizing a letter among my colleagues to go to the chairman of the cftc to urge him to use that authority to intervene in the case of excessive speculation. yesterday, the price of oil went down almost $10 a barrel without any external factors at play. this is about speculation, and we need to get it under some form of control. host: you are on the air. caller: thank you for giving me the opportunity to speak. i am so concerned. and i love this countr