investors entered into to protect themselves in case their investments went bad, part of a huge unregulated multiplied the losses. they've already helped bring down three of the biggest firms on wall street and threatened the ones that are left. but before your eyes glaze over, michael greenberger, a law professor at the university of maryland and a former director of trading and markets for the commodities futures trading commission, says they're much simpler than they sound. what is a credit default swap? >> a credit default swap is a contract between two people, one of whom is giving insurance to the other that he will be paid in the event that a financial institution or a financial instrument fails. >> so it's an insurance contract? >> it is an insurance contract, but they've been very careful not to call it that, because if it were insurance, it would be regulated. so they use a magic substitute word called a "swap," which, by virtue of federal law, is deregulated. >> so anybody who was nervous about buying these mortgage-backed securities, these cdos, they would be sold a credit defau

our commitment has never been stronger. >> credit default swaps are private unregulated contracts that mortgage investors entered into to insure themselves against losses in the event their investments went bad. but as we reported in october 2008, when homeowners began defaulting on their mortgages, wall street's high-risk mortgage-backed securities also began to fail, and the big investment houses and insurance companies who sold the credit default swaps hadn't set aside enough money to insure all of those losses. bear stearns was the first to go under, selling itself to j.p. morgan for pennies on the dollar. then lehman brothers declared bankruptcy. and when aig, the nation's largest insurer, couldn't cover its bad debts, the government stepped in with an $85 billion rescue. what role did the credit default swaps play in this financial disaster? >> they were the centerpiece, really. that's why the banks lost all the money. they lost all the money based on those side bets based on mortgages. >> and the market's totally unregulated. >> and this market is almost entirely unregulated. >>

there is a link with the real world then of the already is can go there they can confiscate big unregulated they can intimidate and this is what happened with eagle for example it was very successful it was growing and in two thousand and five they had to close shop because the feds were all over there this is not possible with the big connect work all right to our demands turner you are living in argentina at the moment where capital controls were recently introduced to tell us how you are seen bitcoin used to circumvent capital controls in argentina there is very interesting and there was a surge in interest and bitcoin from the moment these capital because there's always been some capital controls in argentina but now i mean there really kicked in then the beginning of two thousand and twelve so there was a lot of. a lot of interest in this option. and so what i see today is that people are using it i've seen people who are foreigners who come into argentina and they buy their pesos. using the consul they sell bitcoin to buy pesos there's local argentinians are mad through who are saving

and is now worth more than sixty seven trillion dollars the shadow banking system is a largely unregulated debt based market for complex and for complex and often risky financial instruments since two thousand and two the shadow banking system has nearly tripled in size and is the day worth roughly half of all bank holdings in the world it's also bigger than the entire globe's g.d.p. and a twenty three trillion dollars the united states has the world's biggest shadow banking system this is what's replace good old manufacturing and the creation of actual wealth here in the united states we now have an economy dependent on banks toure's manipulating money. so what do we do about it richard asco joins me now he's a senior fellow at the campaign for america's future richard welcome back good to be back tom so what do we do how do we how do we rein in the shadow banking first of all let's define terms what is the shadow banking system where shadow banking is any form of financial transaction that isn't conducted by a bank using normal bank processes so it could be a hedge fund it could be an in

it is totally unregulated it's just a couple of bits and bytes on a on a computer to how is argentina doing overall we that country obviously was in dire straits not to long ago then it popped back to life and now it seems like it's going through some tough times again your thoughts the absolutely absolutely i mean there is. a regulated think tell you here that predict the crisis of two thousand and one they predicted the government default well right now they're saying it's going to happen again and it's going to happen within the next five years they predict are probably suspects going to be sooner. and looking from their perspective a bit i think it's really interesting for everybody to look at how big corn is used in argentina because if you want to test the system or in our case of currency then i mean you want to expose it to some brutal circumstance you want to throw it out there in the jungle and argentina really use the financial jungle today i mean there's capital controls more than you can dream of so to see how this currency can flourish in such a hostile environment i mea

and i worked in these projects during what is referred to as the decade of death, when crack and unregulatedvailability laid waste to communities of color. in los angeles during the late 1980's and early 1990's, there were 1000 homicides per year in the city of los angeles, not the county, the city. now, we have between 203 hundred homicides per year. people talk about the gang problem having been addressed. i want to share with you, what i experienced, what i have learned, i am not a typical academic. i will not quote statistics to you or talk about theories. i will talk with you about practicality. pragmatic approaches, and i will talk about reality. san francisco, like los angeles learned, will never saw or deal with its gang problems effectively unless there is true collaboration. i will talk to you about what this looks like and feels like. i will speak to you about the lessons that we have learned as law enforcement had to come off of the high perch, in los angeles, law enforcement learned, to their great fortune, that collaboration is the answer. i am going to talk to you about some o

. >> it's a reminder for us, for a -- that human nature is what it is and unregulated. many people will be damaged by it. maybe there's a call for a higher definition of capitalism, a definition of responsible capitalism that does not feed off the backs of others. that's what i would like to see us head. that's where i would like to see us go. >> that was well put. >> well, thank you. >> you're welcome. >> reporter: for "nightline," i'm cynthia mcfadden in new york. >> great piece, cynthia. thanks. and "killing them softly" opens this friday. >>> coming up next, in a country flush with millionaires, no surprise that the bodyguard business is booming, but wait until you see what kind of bodyguard has become the ultimate chinese status symbol. bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel ame

raising and spending of that size of money was not designed by the voters to be something that went unregulated. so the commission directed the staff to put together some provisions that would, as i said, regulate committed are designed to draft, particularly those that raise tangible sums of money. the reason for that is that a citywide campaign aimed at a single person still reaches people citywide, and would conceivably impact their decisions at the polling place based on the fact that you get someone to run for office by extolling their virtues. so these rectally simple to follow will treat under our law, such campaigns, such committees, excuse me, as primarily formed campaigns and therefore, report their activities to the voters. >> they are divided into two diction points. does the commissioners have any questions with regards to decision point 1? i have a question and it has to do with our definition of "support." i have some concern that it's maybe a little too restrictive, because i could imagine someone simply spending money to advocate that someone be elected without "encouraging or

it's perfectly legal and unregulated.bs 5's allen martin shows us how 3-d printers are being used to make plastic guns that will be able to fire real and deadly bullets. [ sound of gunshots ] >> reporter: they come in all shapes and sizes. and now there's a whole new way that a piece can be produced. >> it's a project that developed an idea. >> reporter: the brain child of a university of texas law student has become a reality, thanks to something called a 3- d printer. the machine actually looks like a photocopier and usually generates models like these. but the group is looking to make a real gun. here's how it works. the design of the gun is programmed into a 3-d printer. the printer then shapes a piece of hard plastic into a fireable weapon. the process takes hours. the group is collecting designs from contributors around the world. the final schematics will be distributed online. then anyone with a 3-d printer and a computer will be able to print a gun at home. >> we've now crossed the threshold. we're there. we will

their shadow derivatives and shadow banking system and they commit all manner of fraud is totally unregulated in the shadow banking system as just big as the banking system and it's the primary source of the fraud that's destroying the global economy and yet it's growing by leaps and bounds that's the very definition of financial accounts it is where all fraud goes to hide a lot of it is something like repurchased agreements the repo one hundred five that took down lehman brothers they had fifty billion for example hidden in these repo one hundred five repurchase agreements out there in the dark pools the dark matter which sucks in all of the real wealth the real activity of our economy is sucked into this thing so the fs to be a global financial policy group comprised of regulators and central bankers found that shadow banking grew by forty one trillion dollars. between two thousand and two and twenty eleven the share of activity based in the u.s. has declined from forty four percent in two thousand and five to thirty five percent in two thousand and eleven moving to the u.k. and the rest of

time these giants fall take out much of planet earth itself this is the danger of raw unfettered unregulated laissez faire capitalism this is where the demands for higher and higher quarterly profits take down the company the economy eventually companies begin devouring each other sucking whatever wealth they can from each other this is made easier by deregulation policies and in the one nine hundred eighty s. reagan has tripped off the deregulation mania the michael milken and all these amman a artists all the stuff and free trade policies in the ninety's under bill clinton when he signed the general agreement on tariffs and trades created the world trade organization signed nafta it all opened up the game board for these transnational corporations to feast on even more industries both in the united states and abroad . out of this the few strong survive and have norman's power to fix prices for consumers the inventors of monopoly were right about what happens when one person ends up owning all the railroads or all the utilities or all the apartment buildings prices go up and to secure even

about how to regulate the press when a simple search on google can result in the unadulterated unregulated findings let's take a listen to what some of the members of the media think about it right now the trouble is freedom of speech is that it's not like any other industry it's not like estate agents or lawyers and what you can drop regulations it's a fundamental thing that we all have and it's a it's a natural right. so it's not something you can just sort of tinker with ok so it sounds like there are going to new regulations but what is the report recommending . well what lord leveson recommends is an independent watchdog by the press for the press but it should be underpinned by legislation that all sounds very vague at the moment and it's up to the government to decide how that should actually work in practice. footage of him with sanity laced performance which of course an international outcry may soon be banned from the internet in russia most don't see the party dot com to find out why the country's authorities decided to block access to video clips of the notorious punk band puss

sell off debt they actually get tax incentives to do so and then you know there's this sort of unregulated very complicated somewhat mysterious shadowy debt market. and that's where people's you know debts get traded and so we're dealing with debts at the moment that we can buy in that market but we're definitely looking into two other other tactics the really. didn't really realize how it works and when i found out about religiously i was like that's brilliant how are these debt collectors going to going to handle this when you continue to do what you're doing speaking of the grassroots i mean you recently launched a some sort of kit for debt reactions can you talk about what that is sure so it's called the resisters operations can and you know part of our we're doing this because this is designed deliberately to people you know keep people in the dark you know we really want to empower people so rolling jubilee is a tactic and it's part of it's just a component of this larger you know political movement that we're trying to get together with strike day so up on our website strike that do

more worryingly, 38% said they had used protein supplements, which are unregulated, not well researched and potentially dangerous and 6% said they tried steroids which can because withdrawal, rage and even in the case of 16-year-old high school baseball player taylor hooton have been linked to suicide. >> his mom found him hanging on the bedroom door after committing suicide. >> reporter: what's driving this? experts say the ideal male body type has changed as typified by celebrities like mike "the situation" sorrentin ochlt from mtv's "jersey shore" and increases male must cue late in children's action toys which researchers says has driven up rates of body dissatisfaction among boys and the girls are getting in on the bulking trend showing twice as many are using steroids than before. >> there's a lot in that piece. but you see the first figure nine out of ten doing more strength training and i think that's a good thing. >> right, that's an excellent point, and we're in the middle of a childhood obesity clinic. of course, kids should be encouraged to get fit but parents have to talk t

free market unregulated economy? >> that is my fantasy. i can't believe it. that we are in agreement on protecting the environment. if the people don't want it, they won't do it. anyway, tyson, thank you. dan mitchell, thank you. now let's talk about california with crashing production and a 13% top state income tax rate. no kidding. no surprise. companies are fleeing the state. but where will they end up? we are about to show you. those little things still get you. for you, life's about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do

have to work if they're there is a free market that is free market this out of it's out of it's unregulated market is not a free market the government is regular market and there is regulations that are unnecessary but it's still absurd to say that there is not a free market totally now now you sound like now you felt like a free market as a part or economy of free market is by want to wash your car or vice versa that's a free market but you know once you say ok we're going to have some rules about this market we're have courts to enforce those rules we're going to have a currency that's held stable we're going to have a banking system and we're going to make sure that it doesn't you know mess with people that's no longer a free market make it that's. regularly does not actually make it not a free market i would say that or less of a free market than i'd prefer but i'm going to make it here nationally lightly mark if we're saying if we're going to say that if you incorporate all of a sudden you know your lunch that you buy as long as you're sitting with some of that you do business with and

attack of politics that i've seen in my 33 years of politics and that's superpacs, these people are unregulatedns on these things and left wingers do the same thing. >> a pox on both of them. i think we do away from them and do away with that whole supreme court, that would be a great start. get rid of the supreme court and approve that ridiculous law, i mean-- >> okay, and get this, if you're on the east coast from 11 you get the reruns and if you're on the east coast, it's 2 a.m. you'll have three hours of me, five, and then o'reilly, five, red eye and o'reilly and three it's a total eclipse. >> greg, put your book up, we haven't promoted it enough "the joy of hate." . >> number eight on amazon. >> made you the happiest. >> we haven't heard about this much. >> and dana did a

more worrying, 38% said they used protein supplements, which are unregulated, not well researched, andous. 6% said they tried steroids, which can cause withdrawal, rage, and in the case of 16-year-old high school baseball player taylor have been linked to suicide. >> his mom found him hanging on the bedroom door after committing suicide. >> reporter: what is driving this? experts say the ideal male body type has changed in recent decades. as typified by celebrities by mike the situation from mtv's "jersey shore." studies show increased male muscularity in everything from advertisements to children's action toys, which researchers say has driven up rates of body dissatisfaction among boys. and even the girls are now getting in on the bulking trend. the study showed that twice as many are using steroids than before. dan harris, abc news, new york. >> whew, scary. that is a situation. mm, man. that's why i don't exercise. >>> all right. coming up, justin bieber makes a scene far from the concert stage. >> we still need to get you some running shoes or tennis shoes. >> always say that. sam

it's perfectly legal unregulated. tonight how 3-d printers are being used to make plastic guns that will be able to fire real and deadly bullets. [ gunfire ] >> reporter: they come in all shapes and sizes. and now there's a whole new way that a piece can be produced. >> developed an idea we are calling -- >> reporter: the brainchild of a university of texas law student has become a reality thanks to something called a 3- d printer. the machine actually looks like a photocopier and usually generates models like these. >> developed two prototypes. >> reporter: but the group defense distributed is looking to make a real gun. here's how it works. the design of the gun is programmed into a 3-d printer. the printer then shapes the piece of hard plastic into a fireable weapon. the process takes hours. the group is collecting designs from contributors around the world. and the final schematics will be distributed online. then anyone with a 3-d printer and a computer will be able to print a gun at home. >> now crossed the thre

operating from the shadows, spending as much money as they wanted to spend to influence campaigns, unregulated that's what it told me as commissioner of political practices. is that they were selling illegal practice, essentially. >> ryssdal: "no bureaucrat and no radical environmentalist will ever know that you helped make this program possible. you can just sit back on election night and see what a difference you've made." does that sound like campaign activity to you? >> uh, however you want to characterize it. the statement's true because this is part of a larger debate that's going on on the national level. >> ryssdal: that debate he's talking about is the old "eight magic words" defense. by avoiding phrases like "vote for" and "elect," groups like wtp say they're not campaigning at all. juey al'r t astngkiboute issues. >> and it is permissible, both under federal law and, most importantly, under constitutional principles, first amendment principles, that if you engage in discussing issues, you do not have to disclose who your donors are and you do not have to register your activities wit

. >> and all of the incentives in wall street's largely unregulated bond market were geared toward keeping the subprime money machine humming. wall street's most influential investment bank convinced the financial products division of insurance giant a.i.g. to join the party, a decision that would destroy the company. >> they insured tens of billions of dollars of subprime mortgage loans without even knowing they were doing it. goldman sachs persuaded them to insure these piles of loans without them ever investigating what was in the pile. so there's an additional level of incompetence. they didn't even know the mistake that they were making. >> over a period of just a few months in 2005, goldman sachs got a.i.g. to insure $20-billion worth of subprime mortgage securities that the rating agencies had graded aaa. but in fact, lewis says, the pools contained some of the worst "drek" on the market. do you think the big banks like goldman sachs played a.i.g. for a patsy? >> that's exactly what they did. >> lewis calls the goldman sachs-a.i.g. deal one of the original sins of the looming financ