think when bear stearns went down? >> i couldn't believe it. like, i thought the whole banking system was about to go down. >> narrator: it almost did. billions drained from the economy overnight. the party was over. >> ...in july and said everything was great, and off that a lot of people bought stock... >> bill o'reilly was having a temper tantrum on his show where he was going off about, you know, "why didn't i hear about this? why didn't somebody tell me about all this that was going on?" >> this industry... 90%... millions of dollars. >> and i almost threw my shoe through the television set. >> we just heard the words, look, stop the bs here. >> and i was screaming and yelling, "i did try to let you know!" 'cause he had been one of the ones that i had sent e-mails and never received any response. >> millions of american taxpayers are still wondering, how did we get ourselves into this economic mess, and is there someone truly to blame? >> hello, everybody. >> narrator: to help prosecute those who were to blame, pr

i would go as far as to say bear stearns would be compliant. >> banking still seems risky. what about taking a chance on the lottery? they dished out $260,000 to each winner, but the austerity measures mean they will pay 20% income tax. >> i was very nervous awhile ago, but i finally believe it. >> i have three sons, and they are unemployed, so i will help them. that is what makes me happy, to be able to help my dearest ones. >> time appears to be going -- to be running out in peru. the marine mammals are now close to extinction. >> it is known here as the largest mammal in the amazon. the manatee is also in danger of extinction. she is six months old, one of nine manatees at the rescue center in northeastern peru. she was saved a month ago from her captors and is surviving mainly on milk. the species lives mostly on rivers and lakes, but hunters are making life in the wild dangerous. >> it is so bad authorities cannot reach most of it. people continue to capture the manatees for human consumption. >> they consider the made explicit. it is a new tradition, and many -- consi

i had a trial and the bear stearns trial and life in new york city is a very dynamic judgeship because we are pretty much where the action bar. i've had cases you name it we haven't. >> how to use separate your professional and personal life? i'm guessing this is a consuming stomach i like to believe i have an integrated life. i'm a musician, i wrote this book at the age of 78. i never thought i would be doing that but the reason i did that is because i really believed that we need more transparency and out with a federal judge is doing and what we are all about. the public doesn't have a lot of awareness or understanding to get the whole trick is to be able to try to bridge that gap and a federal court judge that's not an academic book or a boring book but the sort of book that at the same time people will learn an awful lot about how we run the courts and how you become a federal court judge. there is such a need for that. >> you sat on the bench for a long time now. can you tell us one of the biggest cases? >> i've had a lot of them. of course they are all in the book. i had the tri

. >> host: lee terry is taking over for cliff stearns. on the energy and commerce committee, is that right? >> no, he is taking over the position that mary bono mack had and he will be the vice chair of the commerce committee. it will be interesting to see how and whether she tries to assert her authority. she has actually told me that she is interested in tackling something related to piracy. but i would agree that it's very unlikely. all members are extremely wary of trying to enact laws of technology that they perhaps have an expertise on. and that they don't understand all the ramifications. and i think with various lobbyists, nobody is interested in having a repeat of that. >> what about potential changes? >> guest: that is the big question. there was widespread speculation however, those plans have been placed on hold. no one knows what to think. his legacy is very uncertain at this place. it has passed that many of the it, the allies have either abandoned the commission in some fashion or arguing that they didn't go far enough in t

nobody has a job, bear stearns collapse, unemployment falls, but gas prices are low.l afford to drive. >> i suppose that is true. like i said, it is not just one thing. it is not just the other. certainly part of it is because unemployment still remains higher than where it was prerecession. obviously if you don't have a job you will not drives a much. high price as well. you cited thanksgiving prices were still through the roof. people have made permanent lifestyle changes and they're consuming less of the stuff. not only that, but they're driving more fuel efficient vehicle. prius sales topped a million. that is another factor besides. melissa: there you go. what do you think happens going forward? is there a danger to lower gasoline demand? are we going to see refineries doing less and drillers drilling less? we have the whole revolution where shale is creating so much more oil here in the u.s.. >> right. melissa: if demand goes down, do we back off on drilling and production and that makes prices go even higher? >> well, depends. oil prices are pretty low thanks t

of course within nine months bear stearns has collapsed and the federal reserve bailed it out.y: john, that is terrific. we're literally out of time. very quickly, does it give you concerned all the great brains more of them could not see what was coming down the pike? >> it is concerning. there was an element of group think. almost nobody in january 2007 who saw the financial system as being at risk. there was group think going on there. ashley: very good. jon hilsenrath, thank you so much, jon, for summarizing those more than a thousand pages worth of minutes. really appreciate it. >> okay. melissa: will go read that of a the show. start to finish, all weekend. ashley: a fun weekend ahead. research in motion shares climbing on the back of an upgrade in anticipation of its new blackberry 10. but not all great news. melissa: ever dream of living at 1600 pennsylvania avenue, the new zillow listing for the white house ahead? we can snap it up. put our dollars together and go get it. look at treasurys here as we head out to break. treasury yield slipping slightly, three basis poin

i would go as far as to say that bear stearns would have in compliance with these rules, for instance, what about taking a chance on the lottery? it has paid off for a couple of people in spain. winning ticket holders have seized more than $1 billion in the national lottery. they have been celebrating their luck. the top ticket was around $260,000. new austerity measures mean they will pay 20% income tax on their winnings. >> great, great, now i'm fine. i was very nervous a while ago, but now i finally believe it. , i have three sons and they are unemployed, so i will help them. this will make me happy, to be able to help my dearest ones. >> i'm very excited because i really needed this. now that i have one, i am very lucky. , orthodox christians are celebrating christmas. they gathered in bethlehem, the palestinian town believed to be the birthplace of jesus christ. hundreds of pilgrims walked to the church of the nativity, the oldest operating christian church in the world. thousands of worshipers gathered in russia's main cathedral for midnight mass. last year, the opposition criti

i usually -- the bear stearns trials bear stearns trials for the two had guys were escorted, and i've had sentenced a terrorist person to death. i've had a trial involving a drug case a nuke city, the drug club scene, and on and on and on. i look back in my life. i can't believe that i actually had all these trials. but i feel very blessed to have the opportunity to preside over the court. >> talking with frederic block, author of "disrobed." thanks so much. >> thanks a lot. it's a pleasure. >> booktv continues now with diana furchtgott-roth. she takes a critical look at president obama's green jobs initiatives and argues that it hurts the economy. this is about 40 minutes. >> good afternoon. i'm vice president for policy research at the ma

morgan buying bear stearns and then we sort of put the ailing banks on life support without making them write down their bad assets so we allowed bank of america and citi group to see. or limp along and what that is done is created a broken mortgage market now where j.p. morgan and wells fargo are making gouging price gouging profits they are profiteering in the mortgage market even though rates seem low they're not adequately low they're not low enough in the federal reserve is very frustrated so we have this broken banking system and that means monetary policies and or ok let's circle back to what you've been writing about recently stepped away from the macroeconomic issues for a second let's talk about the real estate market here because they had strong community which is and down with virtually unlimited credit lines at near zero percent interest rates were instrumental in the collapse of the sub prime market making bets against the housing market and making bets against the american economy now from what you're saying if i hear you correctly they've taken the other side of the trad

interest rates so much and on a sunday and the reason he did this was because of the collapse of bear stearns also gold to just hit the thousand dollar mark the first time ever so here max had an appointment with the biggest bank head of the gold department and the reason for it was we were investigating brown's bottom why he's. sold their gold at historic lows we wanted to find out why the buddhist bank kept their gold in order to understand the psychology of gordon brown lo and behold there was panic there was chaos and let's turn to the very last clip of that film of what happened when max went into the buddhist bank he was not allowed to speak to the head of gold but he did speak to another executive inside the building the fear is that the banking system itself is in peril. just a commission. member from germany to move or they don't know and she know you don't know what's going on to know i mean you don't know what's coming what's coming up the most fascinating thing i learned is that all the gold in germany. he's in new york now since then was the mainstay see central banks around the

i wouldn't say it was an exaggeration that bear stearns was largely done in by the extreme mismatch in assets and liabilities. the book discusses the strategy of goldman. it ended up being more stable. the book discussed today, why some firms try and others fail is fundamentally about why different firms made correct decisions while others did not. it is particularly appropriate that the book forum is being held at hayak auditorium and although the authors does not directly say that, the court issue identified the book as one that is essential to his work, the use of knowledge. at the risk of overgeneralization was separated successful firms from failures was how well management utilize the first information within both their firms and the marketplace, firms that failed were largely those where management was insulated and dependent exclusively on their own knowledge. firms that succeeded were those where management harnessed information within their firm by creating effective feedback mechanisms. the author, tom stenson will provide us with homeland which firms were able to utilize th

stearn ag is very positive on the whole thing. stearn agee and cantor fitzgerald. they think this is a great opportunity. back to you. tracy: shibani, forgive me, it is a big ol' dating system. lori: apple setting its sights on china. the ways iphone maker plans to make inroads there. tracy: lake levels in michigan are low. this translates to higher prices on store shelves across the nation. we'll talk more about that. we'll talk more about that and let's look at some winners and losers on the nasdaq. we'll be right back. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ lori: more bearish calls on apple today but the stock is resisting. shibani joshi tells us why. >> yeah, would think the stock is down considering how pessimistic people have been on apple shares. shares are not down today but down over the last three months or so, dow

again, marshall stearns. >> a white professor, western mass. >> he brought the langston hughes up.de an automatic connection. i was not a professional pianist. i was not a professional musician. to make a long story short, he knew my interest in africa and african culture. as it turns out in 1961, their very first summit of african americans going to africa was in nigeria. and langston was part of that movement. and then later on with a great melba, i asked langston if he would write a freedom poem for me. the african country was just getting independence in 17 african countries got their independence in 1960. i wanted to create a work of music, this freedom of africa. langston wrote a freedom of home for me and also wrote the words to song i call "african lady, a close third dedicated to our mothers, sisters, the african women who were always in the background, who always support us. and finally -- >> can you play a little? which one? "african lady"? sure. ♪ >> you mentioned the freedom poland. do you remember it? >> what we did was this. as a boy, i was always upset in movies. th

stearns are going to go out of business and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to educate, but i'm entertaining, coaching and teaching tonight. so call me 1-800-743-cnbc. does the market not understand the gravity of a u.s. government shutdown? does it not comprehend it's not merely the nation's credit rating that's at risk from the debt ceiling debacle? but the full faith and credit of the republic itself? how long can we shrug off this grand canyon plunge that's coming? as we did again with another benign day, dow tipped 29 points, and nasdaq advance advanced .22%. this is behavior. is the market actually smarter than you and i think? i'm starting to believe the latter and tonight i'm going to tell you why. first, i don't necessarily want to invest in a country if it doesn't pay its bills. dead beat country, bu

stearns are going to go out of business and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job not just to entertain, put it in context, teach and educate. call me 1-800-743-cnbc. all right. sometimes you just have to don the old bear costume, put yourself in yogi's hat or even boo-boo's paws to understand this market. the dow roaring 85 points, and nasdaq climbing .59%, happy days here again. it's one of those days. see, we're always trying to understand the coloration of the market. but sometimes we literally can't do so unless we go to jelly stone national park and get all ersine about it. when you own a stock and something terrific happens but the stock goes down anyway. what goes through your mind? perhaps you say maybe the news isn't as good as we thought. or perhaps i got to do more homework. maybe this news was already baked int

stearns are going to go out of business, and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it hey, i'm cramer. welcome to "mad money" to cramerica. other people want to make friends. my job isn't on just to entertain, but to teach and educate. call me at 1-800-743-cnbc. after a ho-hum session, s & p finishing flat, nasdaq advancing, we're about to head into the one four most exciting, but least lucrative weeks of the year. thanks to the coming jumble of earnings. the reports are coming. you know the rules. and let's just try to learn. as i told you not that long ago. not impossible to make money until after we've seen earnings. i did five years worth of work on these weeks. i spent the last -- last three weeks ago, i went through every single earnings week and we are just as right as we are wrong. and we have a real parade, stop flipping coins and start listening. here is your game plan. first monday, we play real close attention, to ppg reports. and you have heard michelle bunch on

stearns, for five minutes. mr. stearns: thank you, mr. speaker. i ask unanimous consent that after my five minutes the balance of what i have here can be part of that speech. the speaker pro tempore: without objection, so ordered. mr. stearns: mr. speaker, good morning. we have had a very good session of the 112th congress, and we got through it last night, and i think all of us are -- regardless how you voted, feel a certain relief that we can move on in this country and start to tackle the huge amount of deficit we have. this is going to be my last speech on the floor. i had the opportunity yesterday to put a speech in dealing with what i felt were some of the problems in this country dealing with deficits and i quoted a lot from thomas jefferson who aptly realized how troublesome and serious the amount of borrowing by this congress and past congress could do to this country. and he inherited similar situation when he became president, and how he solved it is one of the reasons that i felt it important to put in the record his acute sense of urg

the fed bailed out bear stearns. lehman could have sold itself to the creative development bank.hey pulled back the fed was opening up all the amazing windows. primary dealer credit facility. for people at home, bottom line the fed was giving lehman all this new liquidity. so they didn't have to sell. liz: would you short spanish bonds? >> i would short spanish bonds here. end of the first quarter and next 90 days spain is the big risk point i think for the u.s. if spain can't fund itself, they have to sell 150 billion of bond. plus their three biggest banks have to sell about $140 billion worth of bond in the next year-and-a-half, two years. david: the good news is from larry mcdonald bad news is coming? short until then, when bad news comes everybody runs for the exits that's when you put your money in? >> absolutely. play the market long. get ready for volatility in 2011 and 2012. we had dramatic mid-year selloffs european induced. david: great to see you, larry. love the coat. liz: long the vix. did you listen to him back in 2008 when he said investors should take advantage t

fed on top of all of the money they were getting through the tarp bailout, to the bailout of bear stearnsother facilities. apparently, they did not need that $100 billion or whatever it was they got from the federal government, they were just taking it because they were being polite and asked to run the federal government. this fiction that they did not need the money, that they were healthy all the time, the government -- when not only give them money, but we vouched for them. now we're stuck of vouching for them basically fever. that is the ongoing bailout that has become the real problem. >> i want to ask william black, in the deal the obama administration reached on taxes recently with the house republicans, there is stopping a lot of attention to the issue of what happened -- there has not been a lot of attention to what happened with carried interest. the hedge fund moguls of the world were most concerned about that. having their payments as capital gains instead of actual fees and salaries. can you talk about what the obama administration did there? >> let me mention one thing, tho

and just recently, we've seen the new york attorney general file a lawsuit against jpmorgan, bear stearns for fraud. they didn't name individuals. they didn't target individuals. and it's a civil case. but the attorney general, eric schneiderman, thinks that perhaps there could be in the future some criminal charges brought. but we haven't seen it yet. >> this could be the tip of the iceberg, this documentary. it's going to be an eye-opener to a lot of people. a lot of people will be wondering why no one is in jail. martin smith, we'll have you back after this plays a few times. i think you'll get a loft lot of reaction out of it. that's "the ed show." "the rachel maddow show" starts right now. >> good evening, my friend. it was really fun to cover the inauguration in washington with you. >> yes, it was. but my legs were getting sore sitting there for five hours. >> i didn't put my microphone on my belt like i normally do. at the end of six hours, i had to crawl out of the booth. >> i needed assistance myself. >> it was a lot of fun. thanks a lot. >> yes, it was. thanks. and thanks to you

operations desk said we have done quite a bit of work trying to identify questions surrounding bear stearnsountry wide and commercial paper programs. there is some strange but so far looking as if nothing is imminent in those areas. both institutions go on to have serious trouble and fail. this is days before an emergency meeting called it address the financial crisis. one of the more interesting threads is the transformation of fed chairman ben bernanke. from hawk to dove. my own feeling is that we should resist a rate cut until it is clear from economic data and other information that is needed. i prefer to avoid giving the impression after bail-out or put if we can by december he was saying, in proposing the liquidity measures there are usual hazards and so on in my view at this point the imperative of helping markets function more normally and support economic functioning is stronger. putting more hazard decide there. it is clear from transcript, to be fair, response spo tot crisis of decades, doing policy one certain way. they today throw out the old rule back and once they did it, loo

we've done quite a bit of work trying to identify some of the funding questions surrounding bear stearnscountrywide and there's been some strain but looks like there's nothing imminent in those areas. to be fair, dudley would eventually become a leading advocate of extraordinary fed policies. both of those institutions we mentioned there would ultimately fail. what the transcripts showed was a minimizing of the fallout to one that eventually embraces the gravity of the situation and pulls out all the stops. why is it important now? because the market is asked the question will the market see the next threat to stave it off? at an august meeting ben bernanke says he doesn't really want to cut rates to give the impression of a bailout. by december he says, quote in, proposing liquidity measures there are the usual moral hazard issues, in my view, at this point, the imperative trying to help markets function and normalize is the stronger. to be fair, the fed's ultimate response to the crisis reversed decades of doing policy one specific way. they really had to throw out the rule book, and t

. >> pre-bear stearns and pre-lehman brothers. will it last? still facing the budget battle in washington. the fed may pull the plug on qe sooner than expected. let's get right to it. with us is tim sprice and brian jacobson and jeff lieberthal of hightower and cnbc market trader gordon charlotte just fin inishing up trading. what do you think, jeff, going to keep going on from the five-year highs that we're seeing in the s&p 500 right now? >> happy friday to you. i think the unemployment report this morning is telling us a lot, that we still have an economy that's muddling along. it's our view, even with the deal that came early this week in congress, that we still have a drag on gdp of maybe 1%, 1.5%, and we're looking at 2% gdp growth in 2012. is that a yes or no, pushes the markets higher? >> yes. we think stocks will have a good year in 2013. >> tim, you agree, i guess, because you liked the jobs report this morning as well? >> i do. added 2 million jobs in each of the last two years and the fiscal cliff legislation behind us. the only thi

. -- bear stearns. bank of america. goldman sachs. goldman sachs. everywhere i looked, it was someone from goldman sachs. and i realized they had brought that wall street ideology to government and that one of the reasons why we saw this incredibly deferential bailout on such generous terms to the very institutions that had brought down our economy. and i realized that my focus was going to have to be on more than just law enforcement, but that i was going to have to be an advocate for the taxpayer to try to protect this program not just from the banks, but from the treasury officials who seemed to be indifferent to the advantages they were giving to those banks over everyone else. and i think, you know, over the course of years we had a mixed bag of success. i think we did a good job in limiting the losses to fraud. as a law enforcement agency, we locked up or have criminal charges against more than a hundred individuals for trying to criminally profit off t.a.r.p.. we put one ceo behind bars for more than 30 years, and i think our recommendations

paulson and they took great or completely surrounded himself with people from goldman sachs, bear stearns, merrill lynch, that an outside perspective, especially one sensitive to issues of fraud and abuse, that came from a background, but that's a valid boost a year. even a few disagree and think it was his song, it is still valid to get that input. if it's something to pierce the eco-chamber of the pro-wall street centric voices. c-span: what is tim geithner's motive in this? is not going to continue secretary of treasury no matter what. >> guest: i don't want to speculate on his motives, but i can comment on his ideology and it reflects the wall street ideology, the sense that what is best for the banks is best for the country. so when banks told the more transparency would be dangerous, i heard things like an account for how they spent the money could be easy to kane can be dangerous, taken the banking system. he accepted this was his from wall street without questioning them. i was trying to get them counter arguments only have examples of how these things could get done. it's complet

required to do to be fair, and that's the lawsuit, and so, for example, one would ask if -- if bear stearnsort lehman was allowed to go bankrupt, aig was asked to provide all of this value to the federal reserve for its loan, but then soon therefore others were given an opportunity to become bank holding companies and have access to the fed window, why didn't aig have the same opportunity and so this is about fairness. this is about in hapg's mind that you took an enormous amount of the company. why did you do that? we think it's not fair. we think it's aggressive and don't have a right to do that. that's the argument. as far as we look at the situation. it's a crisis. the government had to act. it acted, and aig is here because we needed liquidity and this is a liquidity issue for asignificant, not a solvency issue and we needed liquidity. this is the deal the government cut and we've been able to pay that all back with a profit. we're moving forward. hank is going back and saying the shareholders paid way too much for that loan right and the government's response would be you wouldn't be