auto finance subprime. if you compare that to prerecession, it was closer to 30, 35%. yes, we've been growing subprime but historically it's still at very low levels. >> so, of all of the auto loans out there, prime, subprime, whatever, .77 are delinquent, of all the subprime loans that are out there, as i understand it, what has got people concern is rising delinquencies among those that are then packaged off and sold as bonds. is the problem really concentrated in those loans, the ones that are packaged or in all subprime loans? >> well, unfortunately, i don't have much visibility to what would be packaged versus what would not be packaged. >> uh-huh. >> but, of course, where the delinquency customers, it's in the subprime population and there are higher rates of delinquency and we see those rates rising in subprime. we spend more time looking at the total market, the average lender that has a very broad spectrum portfolio and they balance the risks that they know is going to occur with subprime and havin

subprime auto, see mbs-- cmbs.ey are having to find other outlets where underwriting is a lot more loose. one example is subprime auto. always asksw alix you to do bond math. she's going to ask you to do balance sheet arbitrage math any second. david schawel, thanks a lot. alix: coming up, we look at what's next for all the oil being stored in floating vessels. is it ready to come back and flood the market? ♪ alix: i am alix steel. "what'd you miss?" a very big risks to the oil market, floating storage -- very big risk to the oil market, floating storage. you are looking at oil tankers that are storing oil in the middle east gulf. the idea is that the cost to store oil right now on sea is not very economic. it's cheaper now to release it into the market. deutsche bank says there may be an additional 31 million barrels of inventory that are currently floating that asld be drawn down, as much 330,000 barrels per day of incremental supply. you've got to flood the market. that's a risk. tracy: does that eventually end

. >>> early defaults on auto loans stoking new fears of subprime trouble. phil lebeau joins us with more. >> this is getting a lot of attention because we have seen a growth in the number of sales to those who have subprime credit ratings. some of the weakest consumers out there in terms of the ability to make their monthly auto payments. fitch is out with a new report saying in february, 60 day delinquencies of subprime loans that are in -- that have been packaged together in a bond, they're at 5.16%. the highest rate since 1996. by the way, february dlenk win delinquencies was up. fitch tracks auto loan bonds, bonds that are backed by auto loans where they package them together and sell them in a bond. 38% of those auto loan bonds are subprime, but here's the thing to keep in mind. that's just the bonds that are in -- where they're packaging these together. you look at overall auto loans, subprime borrowers make up 0.78% of all auto loans, that comes out to $7.8 billion worth of loans in a market of almost $1 trillion. the concern being, as we have seen a

[booing] >> and they reached that agreement because they were selling worthless packages of subprime mortgage loans. and they and the other wall street crooks were the people responsible for driving our economy into the worst recession since the great depression. now, here's a funny thing. some kid gets picked up for smoking marijuana in vermont or new york city. that kid gets a police record. but if you are an executive of a wall street firm, you don't get a criminal record for destroying this economy. you get a pay raise. [booing] together we will bring justice back to the criminal justice system. and equal justice under the law means that if you are rich or poor, you will pay the price if you break the law. that includes wall street. let me say a word or two about some of the differences that exist between secretary clinton and myself. when we began this campaign, we had to make a choice, and the choice was, would we do what every other campaign is doing and establish a super pac? we agreed with you. we decided, after about one tenth of a second, thinking, that we don't represent

our more subprime borrowers getting in now? doug: we are not seeing subprime in the housing sector.ers are widening out do acceptable underwriting as opposed to risky underwriting. you price risk in the same way a corporation can get financing, even if they are going into chapter 11. it is just a different rate than a aaa rated borrower. vonnie: where are they getting their money? are they packaging their loans? doug: they get it from securitizations. for from balance sheet lenders. -- or from balance sheet lenders. arehave companies that doing securitizations. you also have new startups who are doing things are friendly. analyzing credit based on your employment history or where you went to college. it makes it interesting for us. up 72% in theock past year. thank you. -- congratulations. thank you to doug lebda. powerful sec chair has power -- the chair, mary jo white, spoke earlier. mary jo: what you want the sec since its founding, is a very strong, independent agency. where you have not only expert career staff but commissioners dedicated to its mission. i have confidence that

there was, in fact, a subprime private student loan market that really brought something different subprime mortgage lending, generally speaking no most of the land that is occurring is in the federal loan market where fortunately people have access to these income driven repayment plans. i think that understanding of the mortgage market unraveled is important but there are also important differences. and i think one of the important lessons is looking at servicing, you know, how in the old role of the cfpb we regulated both mortgage services and student loan services, and does quite struck particularly with a private student loan servicers at the same types of deficiencies. servicing is a tough business, but when it goes wrong for a borrower it can really be quite devastating. it can lead to some suffering. i really encourage that there's a lot of interest in doing more to improve that piece of the puzzle. >> so it sounds like both of you agree that this is not in the realm of mortgage crisis in that sense. however, perhaps in addition to concerns about the impact on individuals, there are

parallelectory of growth between subprime africa and china. correlationre is and causation in it.nk of what they are experiencing beyond china. about a year ago when things were good, there were very strong similarities between the status of sub-saharan key countries and southeast asia. now we are seeing a diversions on the economic side, southeast asia. policy reform, structural reform , in certain economies to reach back to -- for the ages and growth -- asian growth. >> do you see potential for stronger relations between the u.s. in terms of trade and africa? only about 1% of u.s. exports find their destination to sub-saharan africa. it is about 6% of the portfolio. that is not surprising that the capital markets are in his deep, less options. are a lot more opportunities here than u.s. companies have taken advantage of. we have been active in power, transportation, infrastructure. there are a lot more opportunities and every one of those areas. one of our goals for this trip is to encourage more u.s. companies to participate here and tap into it. i think the policy changes are

they were selling fraudulent and worthless packages of subprime mortgage loans. they reached a $5 billion settlement. point one. point number two, wall street firms like goldman sachs make huge contributions to candidates. so they put millions and millions of dollars into the political process to get the candidates beholden to them. point number three, the revolving door. you know what a resolving door is? people go from wall street to government back to wall street. last 25 year, goldman sachs itself has had two secretaries of the treasury as well as many other high ranking individuals. work from government go back to wall street. third of all, maybe the most painful. some kid from minnesota or vermont gets picked up for possessing marijuana. that kid gets a criminal record which stays with him for his entire life. but if you are an executive on wall street whose fraudulent behavior destroys the lives of millions of people, you know what happens to you? no, wrong. you get a salary increase. and then if you are the head of of eadman sax, you come goldman sachs yo

you see a reduction on auto sales and in a reduction to access for subprime autos it will weigh on theending component of gdp. >> there was a quote out a few months back about the duration of those loans and leases, that they should be extended to unheard of numbers, for the average lease tends to be up to 72 months and beyond. people will be driving these cars long after they become clunkers. that'sthat -- jason: right. this is one of those red flags that already out there. a warning from the occ and fdic about leveraged lending and oil and gas is part of the share national credit review. the warning signs are very clear. they put them out there. what's really disconcerting to me is -- and the fed was part of shared national credit review, you have seen no mention in any fed statement since the issue was warranted about the recession going on in the u.s. or the industrial recession. even if we do see a bump in the month of march, where we do expect it to be about 50, it could still just be a dead cat bounce because of seasonal factors. what about the housing market? we do still see so

everybody i talk to -- famous last words -- is less concerned about this than housing subprime.et that underlies it is not overvalued. one thing with subprime lending and housing is the asset went up, when they took the asset back, it was of diminished value. the underwriting still seems to be better. i take my cue from mike jackson of autonation, he's not worried yet. >> i appreciate you described what you see as bullish dynamics from a relatively low base. this is the week in which the ecb will come through with a judgment that may disappoint, as it disappointed back in december. the bank of international settlements has also come out with a report. for a long time the b.i.s. was worried abo worried. arguably you should take it with a pinch of salt, they say the confidence in central banks healings powers have for the first time been faltering. that's how they would sum up the beginning of the year. what is the precise advice for investors from what you see. >> the precise advice is first and foremost you have the ecb k very accommodative, the fed accommodative and the bank of

subprime mortgage lending. most of the lending that is occurring is in the federal loan where fortunately people have access to these income driven repayment plans. i think that understanding how the mortgage market unraveled is important but there are also important differences and i think an important lesson is looking at servicing. we regulated role both mortgage servicers and student loan servicers. i was quite struck particularly with the private student loan servicers at the same type of deficiencies. servicing is a tough business but when it goes wrong for a really be quite devastating and it can lead to some suffering. i really encourage that there is a lot of interest in doing more to improve that piece of the puzzle. it sounds like both of you actually agree that this is not in the realm of the mortgage crisis in that sense. however, perhaps in addition to concerns about the impact on are broader there economic impacts in terms of economic growth. certainly some of the things you you,uggesting come ea

the oddest subprime market has been the area people questioned for now.art of the overall market. that's the only issue to throw when because you are right. the auto reminding us to worry spot, but it is small overall. >> i would be the canary so to speak. the subprime starts going stand-alone startup problems. >> in july 2007, bernanke gave testimony saying he was only at $90 billion problem. if you don't control it, it becomes contagious and look what happened. the $90 billion. in august of 2006, the month after home prices took two years to grow up. >> is a big difference. in addition to the size, you cannot leverage a car loan. we've got better n. better racers against the lindane. >> that could be a market mover. >> yes prices continue to go into retail sales. we think we will see it. they start to get long enough at the gas prices low enough that the consumers confident and ready to spend. maria: republican presidential front runner donald trump with the space-bar entrance are stacked in florida tomorrow after boasting he can win the hispanic vote.

they need to a few subprime borrowers.ten a downgrade to equal weight from overweight by the barclays analysts. 12% lower than the street consensus. jon: thank you very much. next on bloomberg , we count you down to the market open. ♪ alix: this is bloomberg . troicki of sky bridge capital is still with us. uncertainty plaguing global markets and beginning of the year. but you were bottom fishing a structured credit right now. in testing versus other things, especially if you assume we will not have recession and six to 12 month. it is hard to be excited about , but ifng on anything you look at the legacy subprime option arm, mortgage backed securities and loan obligations, they are basically pricing in a high probability of recession in the next few. months. liquidation took place at the end of last year into this year. we see very attractive cash flow about predictive power of how they will behave in the next six to 18 months. equities, the dollar, very hard to protect. we like in efficient markets and we like ca

one of the disparaging things that we have every couple of years is that service tos give lip the subprimeand qualifications but neither party is willing to accept the qualified people from the other party. we saw this when judge alito was up in 2005. aswas just as qualified judge garland is today. he was one of the leading judges ,n the country by temperament etc., but there were 25 democrats who would not give him the vote. fightrtain here that the here is political and everyone is appealing to the base of their perspective parties -- their respective parties. there are a lot of people in this country who go to work every day who tell their children that merit really matters in this country. we really strive to recognize people who have merit. he were confirmed, would that move the court to the center or centerleft kumal and with that replace your old boss, justice kennedy, as the swing vote? trada: perhaps, but it is very difficult to say things in a very general way, because even justice scalia was someone who was viewed as on the right of leadingt is one of the right of the constituti

look at subprime auto loans.hey are now at a delinquency rate higher than anything that we've seen in the last 10 years. we can go on and on. the markets trade in weeks and days based purely on sentiment and momentum. the little bounce that we have had since february 11 -- at least the fed has not instigated negative interest rates. do you think we are heading in that direction one-day? david: we are out and dry powder if we do not go to negative interest rates. if they even talk about it publicly, they are inviting a political firestorm in the united states. the millions of retirees that have been savaged by this will take up arms and they have a champion. i would not be surprised to see donald trump take up that issue the minute the fed even begins to other negative interest rates. what are negative interest rates? they are a confiscation of your savings. why would there not be a political reaction to negative interest rates? mark: there's always a big reaction in japan, which we will come to. we will come to d

we see things like clo's, subprime auto loans, another sector people think is problematic now. any one of those big enough to bring down the global economy? maybe not. they are not the size of the private nbs market. we saw oil markets cause a lot of financial disruption, and we believe many deletion is going up -- we believe the nuclear issue is going on in there. host: joe for massachusetts on the independent line. caller: thank you for taking my call. mr. stanley, as other callers have mentioned, i understand that banks are still too big to fail. but what i would like to focus on is the guarantee on the collateral on debt obligations and the financial impact that will have. ultimately, we become too dependent on wall street, which is why the smaller businesses cannot succeed. cdo market, one of the most notoriously complex of these securitized products -- the subprime cdo market before billionis was up to a 5 dollar market that lost 65% of its value, which is unbelievable . this is a multibillion dollar market which was rated investment grade by rating agencies. the rating a

campaign to make the same case, visiting with families who had been defrauded by mortgages, the subprime mortgages that put them and their homes at risk. >> thank you, secretary clinton. >> i called for those changes. i have been on the record and now i do have the toughest, most comprehensive plan to go after wall street and not just the big banks, all the other financial interests that pose a threat to our economy. and i have said no bank is too big to fail and no executive is too powerful to jail, and i will use the powers that have now been passed by the congress by president obama, who incidentally, took a lot of money from wall street, which didn't stop him from signing into law the toughest regulations on the financial industry since the great depression. [ applause ] >> look, clearly -- the secretary's words to wall street has really intimidated them, and that is why they have given her $15 million in campaign contributions. >> thank you. thank you. thank you, senator. >> now, what i believe is in fact that we have a corrupt campaign finance system. and it's not just wall street,

the rate of payments 90 days late for subprime car loans at the highest level in 20 years. and talk about a pot of gold for the economy. a new report predicting folks will spend nearly 4.5 billion bucks this st. patrick's day. if you're wondering where that cash is going going? check out your local pub, because 13 million-pints of guinness are expected to be consumed worldwide. cheers. that's business. >> here are today's winning florida lottery numbers. the cash 3 continue, 742, a play four flubs, 8568, and then 1374. before we go here. taylor hicks returning to the stage that made him famous. florida and coming ba fog the -- back for the "american idol" finale. it's been ten years. the fifth season "idol" winner. he is invited to return for the final farewell. catch the event april 5th, 6th and 7th.{ >> and sarah wayne calle is returning to prison break. prison break premiered in 2005 to critical acclaim and ran through 2009. the new season of prison break will premiere later during the 2016-2017 season right here. one of my personal favorites. >>> time now for the fox 13

she did go to wall street in the days before the financial crash and said subprime mortgages. cut it out as she has put it. bernie sanders has tried to paint her as too cozy to wall street. he is the guy to fix the system that's rigged against the little guy. he continued to hammer on that last night, eric. >> he did. you know, part of why this is so effective for him is bernie sanders' position is not complicated. hillary clinton's is. she does leave room for compromise. he doesn't. this is something that has been a problem for her for months. these wall street speeches. he has been saying look, release the transcripts. show an increasing willingness to attack her on the debate stage over it. clinton still doesn't have a good answer. she doesn't have a good explanation for why she won't release them. she says, well, i'll do it when the republicans release all their speeches and when bernie sanders releases his. sanders has a great comeback to that. he throws his hands up and says here are my wall street speeches. there are none. this is something that has continued to hamper

what's going to happen in the future, nobody knows that, but we do know in 2007 she did warm of the subprimeger to the economy and she did call for a moratorium and freeze. on adjustable interest rates. so her claim about all of that is true. if you want to find out more about how we reached these verdicts and more of the things we checked from the debate tonight go to cnn.com/reality check. >> tom, thanks very much. let talk about where the race goes from here. this continues. john? >> it goes to some pretty big contests because of the demographics here in florida, hillary clinton is favored. bernie sanders had a big upset last night. it was an upset of the century as he sachld it's not enough to change the strategic arc of the race but gives him an opening to do that. >> does it raise questions about ohio? >> the next step ohio and illinois. if he can win one or both of those industrial areas -- she is from illinois by the way. if he can win one or both of those, say michigan, ohio, illinois, that makes a huge statement about economics. challenging economics, and challenging on the known b

landed with quite a firm bought after an international adventure which took it into the vortex of the subprime financial crisis of the european debt crisis here it -- crisis. we have seen a lot of retrenching under martin blessing. we have seen the resumption of .he dividend it was a firm step forward. this is a bank that is in a recovery mode, but still not quite out of the woods yet. the choice of martin's olga is one that speaks to continuity continuingity -- blessings strategy and focusing on private customers and on business. hans: angela, thank you very much. angela cullen, joining us this morning. eu leaders are meeting in brussels for an emergency summit . at least 135 thousand people have made their way into europe so far this year. that is from turkey to greece. eu members are divided on how best to tackled the backlog of the silent speakers. let's go live to brussels. ryan chilcote is there. what is the eu looking to accomplish? in a nutshell, what they want to encompass is find a european resolution to the refugee crisis which is something they have try to do before. as you pointed

fines that have been levied against the banks for all of the various action that took place in the subprimeh. iceland took a different approach. they pursued criminal charges against individuals. that is a striking that they did that. they succeeded in winning convictions. many of those atop a are facing pretty serious terms, between four to 4.5 years. job manywent for a years ago. i got off with a job. it was a very sexy office. it was opulent, white walled, it was vote gertie. i loved it did -- it was while garrity -- vulgarity. they are having a different experience at the moment. edward: they had that whole jets set, parties and monte carlo. it came to an abrupt end in 2008. they let the banks fail so the government did not try and bail him out. -- bail them out. possible.no bailout they let the old banks go bankrupt. they started new successor banks, recapitalized them. by wiping the slate clean, they have been able to move on the faster then we have seen with european lenders. what are the bankers doing now? is this hardship duty? are the outstanding license plates? edward: it is a mi

market was basically flood and autonation down 2.5, upticks on subprime autos, sell this one. >> chairwomanlked two weeks ago about wynn, steve wynn, made some huge purchases and came out with great earnings. more room to run. pete has been all over it, guy, too. excellent call, wynn. >> you're a buyer of wynn, wow. >> happy pi day. happy birthday tim adami and whole foods markets. lots happening in the space, wfm. >> all right. i'm melissa lee. thanks so much for watching. see you back here tomorrow at 5:00 for more >>> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. there is always something brewing underneath. even when a seemingly sedate day when the dow edged up 16, s&p

we've seen the subprime loans. delinquency starting to climb and auto i want to stay completely away from. there was one name and you want tonight contrarian and contrarians here. it was a name they didn't like. valm ho nt, vmi. i make all the polles and lights and everything for infrastructure, so what i'll say is if we see some kind of infrastructure spending here in the u.s., you want to buy valmont. >> being contrarian being a contrarian. >> consensus. i'm confused. >> they are saying that their view and you're saying you're not with the contrarian. >> i hate that. i don't want to be contrarian just to be contrarian. >> yes. >> just against my nature. >> just to jump back into this whole thing, that makes no sense. they are losing and losing back to visa and mastercard, end of story. >> citi is shipping out costco cards. remember when american express started to turn. >> a little over year ago. >> costco. >> you're positive on amex. >> no, no. >> they have got an underperform on the stock. >> i'm so confused. >

they sold subprime mortgage packages that were worthless.ou may have noticed that just last month, a goldman sachs paid a $5 billion fine to the united states government and other banks did that as well. so what i want to give you a warning, all right? if i'm elected president, what i've said is i think when three out of the four largest banks today are bigger than they were when we bailed them out when they were too big to fail, i believe we should break them up. i also believe we should establish a glass steeg al piece of legislation. i think it's poent for the american people to understand that the six largest financial institutions have assets of almost 60% of the gdp of this country. they issue two-thirds of the credit cards and about one-third of the mortgages. you tell me, if teddy roosevelt were alive today, what would he say. i think he would say they have too much power, too much concentration of power and they should be broken up. i think they're a danger to this country, i really do. politically they have paid billions of dollars

they sold subprime mortgage packages that were worthless.noticed that just last month, a goldman sachs paid a $5 billion fine to the united states government and other banks did that as well. so what i want to give you a warning, all right? if i'm elected president, what i've said is i think when three out of the four largest banks today are bigger than they were when we bailed them out when they were too big to fail, i believe we should break them up. i also believe we should establish a glass steeg al piece of legislation. i think it's poent for the american people to understand that the six largest financial institutions have assets of almost 60% of the gdp of this country. they issue two-thirds of the credit cards and about one-third of the mortgages. you tell me, if teddy roosevelt were alive today, what would he say. i think he would say they have too much power, too much concentration of power and they should be broken up. i think they're a danger to this country, i really do. politically they have paid billions of dollars to deregula

settlement with the federal government for $5 billion because they were selling worthless packages of subprime mortgages. $5 billion settlement. you know how many people, executives on wall street have gone to jail? if you're a kid caught with marijuana in michigan, you get a police record. if you're an executive on wall street that destroys the american economy, you pay a $5 billion fine and no police record. if i'm elected president, we will bring justice back to a broken criminal justice system. [ applause ] >> secretary clinton? >> well, i think we are in vigorous agreement on this. i have said repeatedly, no bank is too big to fail, no executive too powerful to jail, and i have said i would use the tools in the dodd-frank regulations, that if any bank posed a systemic risk to the economy, they would be broken up. because we now have tools, laws that we didn't have before. and i am very happy we did. because there does need to be accountability, including criminal accountability if it is called for. >> senator sanders, i just want to show the audience, you sent a tweet -- i want to return

they paid that fine because they were selling worthless packages of subprime mortgage loans. fine. now all of you know that eight years ago, this country was plunged into the worst economic downturn since the great depression. as a result of wall street greed and illegal behavior, we lost millions of jobs. people lost their life savings. people lost their homes. that took place because of the greed and illegal behavior on wall street. today, this is the broken criminal justice system. today, some person in arizona or vermont gets picked up with a small amount of marijuana. that person has a police record for the rest of their life. [crowd booing] bernie sanders: but if you are a ceo or an executive on wall street whose illegal behavior destroyed the economy, you get a salary increase -- not a police record. [crowd booing] bernie sanders: what we have got to do, it is not going to be easy but we will do it. we are going to restore justice to a broken criminal justice system. [cheers and applause] bernie sanders: what america is supposed to be about is justice, equal justice un

campaign to make the same case, visiting with families who had been defrauded by mortgages, the subprime risk. >> thank you, secretary clinton. >> i called for those changes. i have been on the record and now i do have the toughest, most comprehensive plan to go after wall street and not just the big banks, all the other financial interests that pose a threat to our economy. and i have said no bank is too big to fail and no executive is too powerful to jail, and i will use the powers that have now been passed by the congress by president obama, who incidentally, took a lot of money from wall street, which didn't stop him from signing into law the toughest regulations on the financial industry since the great depression. [ applause ] >> look, clearly -- the secretary's words to wall street has really intimidated them, and that is why they have given her $15 million in campaign contributions. >> thank you. thank you. thank you, senator. >> now, what i believe is in fact that we have a corrupt campaign finance system. and it's not just wall street, it's the drug companies, who receive milli

she plains subprime mortgages. margot also drank on the set of 2013's "wolf of wall street." the blonde bombshell went to less extreme measures while playing will smith's love interest in the dark comedy "focus." the pair set to hit the big screen this summer have a 22-year age difference. in real life, her beau is much closer to her age. margot's a long way from the days when she had to keep three jobs to make ends meet. houses, worked at a surf shop and made sandwiches at subway. now margot has no trouble paying the bills. margot can easily afford to shell out such mega generous gifts. her net worth is a whooping $8 million. that's margot robbie by the numbers. >>> from the city sightseeing celebrity bus in the heart of new york city, i'm sonia isabel. thanks so much for watching. we'll see you next time. >> "ok!">> reporter: the highest paid female athlete on our planet, a model, entrepreneur and olympic medalist in a los angeles hotel, a bombshell from maria sharapova. letter from the itf that i had failed a drug test at the australian open. i take full responsibility for

we certainly saw that during the subprime crisis. i think this was portrayed with the big short.e smarter than the other guy and can get out first. they are saying they will not even have hearings. it worked in 80's for bob dole. they had disagreements. they were tried to find middle ground. i don't know anything about the nominee or the merit, but i think there is a prospect -- process that should be respected. they do not like the nominee, they should vote them down as opposed to delaying it internally. , then i ask you about this efforts of european banks to raise capital and put the financial crisis of seven or eight years behind them. that seems to be a disparity in the ability to raise effort. what can the european banking sector learned from the efforts clean up the.s. to crisis?er the >> they needed to move more quickly. the economy has struggled more and the -- in europe and has in the u.s.. more quickly. the economy has struggled more and the -- in europe and has in the u.s.. i think they are really glacial by comparison. i think they did miss an opportunity. we didn't

subprime crisis, and then it changed. european banks discovered they had challenges, too.olivier blanchard. professor, banking is such an important part of our confidence. lawrence summers has talked about that and others. how fragile our european banking -- banks right now? don't think there fragile, but have a very complicated job to do. i think banks in general in the world, made be more european banks -- may be more european banks, have to handle things they are not used to. policy has big effects on the prices of assets. one of the ways banks use to make money was by playing the yield curve, lending long, buying short. that is more or less gone as a source of profit. then you have the negative rates that eat into profits. you have regulation, which is forces them to have more capital while there asked to lend more. to liquidity ratios, which increase the amount of maturity they can do. technology.rmous on your screen was something that relates to that, closing a number of its offices. latercompeting with much structures. -- lighter structures. i think they're not very

button or so americans over half a decade, describing how their lives are affected by things at subprimeindustrialization, and a host of other factors. the common theme is the cheapening and delegitimization of representative politics. between the rich and the poor, hollowing out of the middle class, and despite best efforts. i thought this not to make it digg it would be cheap, but because this book could have been written about any country in europe, including my own. and i hope that it will be. the problems he describes our problems we are going to have to deal with. for the first time asthma -- in my life as a foreign security analyst, i spent time thinking about external security and i have come to understand our essential preconditions and limitations on the ability of governments to make an effective foreign and security policy. this is where we are at and it is deeply serious. people thinking deeply about the internal affairs of the country's where the policy people are coming together. in fact, i would -- let me give you another avenue. somewhatof belgium is, the context of the

at one point, one third to 40% to fannie and freddie's mortgage portfolio are the subprime loans.nd not even having to prove their income. basically, ripping off the system. and then freddie and sandy got a massive bailout. who decides which mortgages for given? who gets to decide who gets up into does not. underwater. it has gone up remarkably. you could argue. slowly, but surely, the equity is building up in their homes. just made them whole. >> that is exactly right. >> a have to be really clear. you know, it is interesting. many people were under law. the 11 million at one point. then there was that other debate also. somebody underwater because of their debt. is this the cheapest way. doing principal. the other thing, you know, the government slashed finds. 60% of those went to federal and state government. neil: those that were underwater dramatically declining. you can save from her height, underwater and negligible. a good chunk of that was government intervention. forcibly making bad debt disappeared. >> keeping the housing market going up. these people are so underwater

a lot of them were using the equivalent of subprime loans. >> easy money always leads to easy lendingsses try to prop up and keep strong sales going. you basically see the lowering of the bar. that was a big one. this one right now was not a big one. it can grow. it is also going on in housing right now. all we need to see if housing prices come down. >> in other words, one out of 10 of these is a 10 days or so. does that mean what could happen on the homefront? they call them more flexible loans. >> i itself, it does not mean it needs to happen in housing. you have to remember, businesses are so strong. the highest ever. last month leasing was that the highest month ever. trying to keep the numbers up. that is where trouble happens. all of these loans, unfortunately. a lot of these folks have very low fica scores. then you begin to wonder what that means. >> being dropped off at the auto dealerships. people bought homes and did not have the second mortgage payment. same thing happens with certain extent in autos. going to far to get people in that probably should not be getting the p

or so americans over half a decade and describes how their lives are affected by things like the subprimeortgage crisis, deindustrialization and a host of other factors. the common theme of all their lives is the cheapening of representative institutions and politics, the widening gap between the rich and the four individuals losing control over their livelihood in lives despite their best efforts. this could have been written about any country in europe, including my own and i hope that it will be. the problem that packer describes our problems we are going to have to deal with, and that for the first time in my life as a foreign and security policy analyst, not as a constitutional lawyer, but my life thinking about external security and foreign policy, i have come to understand our essential preconditions and limitations on the ability of government to make ineffective foreign policy. this is where we are at and it is deeply serious. it is the first time really for people that think about the paternal -- internal affairs of the country are coming together. fact, let me give you another

or so americans over a half decade, and describes how their lives are affected by things like the subprime mortgage crisis and a host of other factors. the common theme of all their lives is the legitimization of institutions, and the politics. the widening between the rich and the poor, the hollowing out of the middle class, and the individuals losing control of their livelihood in their lives, despite their best efforts. i cite this not to take a cheap dig at america, but because i believe this book could be written about any country in europe, including my own. and i hope that it will be. because the problems described our problems we will have to deal with. and for the first time in my life, as a security and foreign-policy analyst, i have come to understand our essential preconditions and limitations on the ability of governments to foreign andctive national security policy. that is where we're at, and it is deeply serious. is the first time people are thinking about this. in fact, i would give you another avenue at this. the case of belgium is uncomfortably like the case of greece. t

settlement with the federal government for $5 billion because they were selling worthless packages of subprime mortgages. $5 billion settlement. you know how many executives on wall street have gone to jail? if you are a kid caught with marijuana in michigan, you get a police record. if you are an executive on wall street that destroys the american economy, you pay a $5 billion fine and no police record. if i am elected president, we will bring justice back to a broken criminal justice system. [ applause ] >> secretary clinton? >> i think we are in vigorous agreement on this. i said repeatedly no bank is too big to fail and no executive too powerful to jail and i said i would use the tools in the dodd frank regulations that if any bank posed a systemic risk to the economy, they would be broken up. we have tools, laws that we didn't have before. i am very happy we did. there does need to be accountability including criminal accountability if it is called for. >> you sent a tweet on thursday and this is the tweet. i am showing the viewers. the people of detroit know the costs of hillary clinton'

. >> like subprime. that was a joke. that was sarcasm. the fifth stock is casey's general stores.o casey's. >>> all right, here we go. oil up, crude close is coming up. pig left us 19 years ago today. >>announcer: straight talk brought by wisdom tree. to learn more, visit wisdom tree.com. . >>> hello everyone, welcome back to "power lunch," i'm sue herrera and here is the cnbc news update. the white house is aware and reviewing iranian ballistic missile tests and determine an appropriate response. they said it won't be a surprise if there are additional missile launches over the next several days. democratic presidential candidate hillary clinton, though, says she was deeply concerned about the iranian missile launches, and the country should face sarnnctions for its actions. the threats toward israel will not be tolerated. >>> ted cruz meeting in miami after receiving the endorsement of carly fiorina. the republican contest is now a two man race. >> it is now clear as we've got some 361 delegates, there are only two candidates that have a credible path to the nomination, a credib

campaign to make the same case, visiting with families who had been defrauded by mortgages, the subprime at risk. >> thank you, secretary clinton. >> i called for those changes. i have been on the record and now i do have the toughest, most comprehensive plan to go after wall street and not just the big banks, all the other financial interests that pose a threat to our economy. and i have said no bank is too big to fail and no executive is too powerful to jail, and i will use the powers that have now been passed by the congress by president obama, who incidentally, took a lot of money from wall street, which didn't stop him from signing into law the toughest regulations on the financial industry since the great depression. [ applause ] >> look, clearly -- the secretary's words to wall street has really intimidated them, and that is why they have given her $15 million in campaign contributions. >> thank you. thank you. thank you, senator. >> now, what i believe is in fact that we have a corrupt campaign finance system. and it's not just wall street, it's the drug companies, who receive mi

listening to bill and talking about central bankers, remember, it was ben bernanke that told us that the subprimetained crisis. it was alan greenspan who told us that there was no bubble in the stock market, right? central bankers are notorious essentially for getting it wrong. and i think it is because, you know, being exposed to them a lot, they get into a group think academic kind of world. but the question i have and i would like to hear what bill thinks about this is, you know, if we're now going to tolerate higher levels of inflation, for the sake of lower unemployment, that sounds like the kind of philip curve trade-off we were doing in the 1960s and 1970s and granted, you know, inflation is not high today, but if you perpetuate this policy over the long run, you start to see price increases build over the course of a decade or two, which is another form of attacks on people who save. >> i wouldn't disagree with that. but i think that the fed and other central banks have a problem. what they're really pointing towards is inflation, yes, plus real economic growth and we have a sense and the

it is like allowing subprime borrowers to buy houses. mohamed: we have seen this movie over and over again. this is the movie we have seen since 2010 in the u.s. and since 2015 in europe. we have seen it over and over again, which is you get this impact based on policies, and then fundamentals assert themselves. -- ie process, you start made you cough. banks do not want to be doing this, but they have no choice. it is -- they got one of that yesterday. they did not get the second half. the other point to make is that you look at that particular chart there, and at the bottom it is debt. deutsche bank, commerzbank, the spanish, german banks need it to come down because the rate is at 20 basis points. isn't that good news? mohamed: it is good news that there is some support for the banks, but ultimately the support for the banks have to come from the balance sheet side and their assets being worth more because the credit risk has come down. you only get that through other policies. go back to the g-20. it is about fiscal monitoring and str

some of his employees were the highest people inside financial institutions during subprime.because they were doing so well on that specific trade. >> he totally says there were tons of that apples out there. -- dad apples out there. stephanie: in his defense, every business has had apples. it's not just banking's. . >> we wanted an overarching look at his career on wall street. years in as ceo of j.p. morgan and has been doing this for three decades we asked him what the scope of his career is. one thing he came back to was the idea that when he started out, this is a completely different world. he said finance was a small place in this comes down to the growth of the world well. stephanie: you have to give him the financial crisis, the loyalty within jpmorgan and the corporate pride in that organization compared to its banking peers. idea or you to speak to other bankers and traders at other banks what sentiment has been an jamie dimon has been clear since the crisis. you're going to get paid less and it's a new normal, get used to it. truthfully, you have seen that play ou

they paid that fine because they were selling worthless packages of subprime mortgage loans.ll of you know that eight years ago, this country was plunged into the worst economic downturn since the great depression. as a result of wall street greed and illegal behavior, we lost millions of jobs. people lost their life savings. people lost their homes. that took place because of the greed and illegal behavior on wall street. today, this is the broken criminal justice system. today, some person in arizona or vermont gets picked up with a small amount of marijuana. that person has a police record for the rest of their life. [crowd booing] bernie sanders: but if you are a c.e.o. or an executive on wall street whose illegal behavior you get athe economy, salary increase -- not a police record. [crowd booing] bernie sanders: what we have got to do, it is not going to be easy but we will do it. we are going to restore justice to a broken criminal justice system. [cheers and applause] bernie sanders: what america is supposed to be about is justice, equal justice under the law. your po