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tv   [untitled]    May 24, 2011 3:30am-4:00am EDT

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just to teach you the earth could build a measurable heard from a renaissance photo ok rules we try to preface if your children result. in israel blue cheese available in some of the children of various someone who killed your recent. welcome back you're watching aren't you going to live from moscow these are the top stories israeli prime minister reiterates televisa refusal to reach a peace agreement with the palestinians based on the nine hundred sixty seven borders which the u.s. is pushing for venom and that video claims such borders will be indefensible. drop obama comes to the u.k. to pressure london into closer cooperation on security and the war on terror david cameron is expected to seek support for his government's spending cuts. have a georgian opposition gathers for a fourth day of protests against the president promising to shelbyville saakashvili
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the door by wednesday. plus is back on solid ground for three space travelers who've spent six months in zero gravity aboard the international space station. so our lines to kaiser report is next. to. max kaiser welcome to the kaiser report lars von trier the danish filmmaker is in the news razor lay down a cannes film festival and making some highly controversial remarks regarding nazis germans. but check this out let's look at some of these other stories that are circulating then tell me whether or not this seems a bit odd to you stacey or tells i think you're referring to my first headline here
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munich re says prostitutes attended reward party and that's not the shocking thing ok this is munich re the big insurance company they had a little division called ergo and they held a reward party to reward the insurance high performing agents and there were one hundred executives that attended and twenty prostitutes but kept this women wore color coded bands with red for hostesses yellow for those available for sexual favors and white for women reserved for executives and top agents after each trip to beds set up near the thermal baths a woman would receive a stamp on her forearm and someone got the stray munich re financial terrorist responsible for creating ghettos financially disadvantaged folks who are on the short end of the ghetto for cation of the financial terrorist games of gen re are forced to wear yellow armbands and be sex slaves four of
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their german. hosts yes and then be stamped on their own arms afterward to prove that they were used and let's not forget the year the the little serial code stamped on the wrist as part of the package but max the story here is that this goes from the very bottom these are just agents going door to door selling insurance products in the financial services industry the top of the pyramid of banking. establishment is the many extra con because this is the culture is a dumb extremist kind of part of the banking culture where there is damage trust gone lloyd blankfein jamie diamond despite candid over its citibank the c.e.o. just paid him some forty two million dollars for stealing four hundred twenty million dollars they have a culture of predatory or behavior where once you like
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a serial killer you know once you steal money from people with mortgage fraud or with banking fees that are illegitimate or with collateralized debt obligations get a taste for the serial financial killing you just go you graduate to these higher crimes and you become adamic strauss kahn or a lloyd blankfein or or jamie diamond where serial financial murder is part of your day to day life that's the culture you live in and well speaking of color coded max let's move on to the next headline because this does have color coded threat warnings in this story financial repression coming to america el erian so this is mohammad ali arion one of the heads of pimco the largest bond fund in the world and he was commenting on the global debt problems and signal and noted that there are some countries already signalling red like greece ireland and portugal he said then quote others are flashing orange like the u.s. and already require future sacrifices most likely through a combination of higher inflation austerity and importantly financial repression l.
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arion classifies financial repression is seeking to impose negative real rates of returns on savers right oh yeah it's a good story to follow up on financial repression or wealth confiscation again the ghetto model from the thirty's and forty's people had their wealth confiscated by the surgeon of the democratic process by the national socialist party and they were put in ghettos and they were eventually killed i mean here now we're seeing the same process in europe in greece and ireland and what this gentleman is referring to is the same thing coming to the united states and the key there is negative rates for savers we've said all along that the global cons. it is not ideological it's not religious it's savers versus speculators people who should get three or four or five percent on savings because they work hard and they save money are are subsidizing other being penalized by the speculators who are at the point of a gun guy ben bernanke and the e.c.b. to keep rates near zero to finance their speculation this is the true conflict is
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engulfing the war and the true reason why you've got people in cairo in wisconsin in tunisia and now in madrid it's savers versus speculators it's financial repression in old pressuring yeah and i might add though of course we are being held hostage all the savers of the world on the workers of the world by those very guys who were with prostitutes and yellow armbands you know this is the say were as a speculator or one of the developed a as i said it's a serial killer once you start to just steal locked only without any accountability and they call it moral hazard i mean i mean do you call a serial killer you know he's his problem is judges go moral hazard he murdered thirty seven people this offer is from moral hazard that's a euphemism for serial financial murder well if you're looking for an end to this financial repression max the next headline does not supposed well inflation jumps again but was born tells king to keep rates low so this is
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george osborne the chancellor of the exchequer in the u.k. and mervyn king the head of the bank of england inflation jumped to four point five percent and is due to hit five percent by the end of the year but despite this they're saying i don't raise the rates at this exact what i'm talking about inflation is rising the price of food and energy is rising but they won't let interest rates or wages rise because they want to keep rates near zero to finance their speculation and whenever they make a bad bet of course they get bailed out by the taxpayer who the. it has to suffer austerity measures to pay off these does it is financial repression it's using the globalized financial networks to impose what i call the casino good leg model of economics and mervyn king is being again like others in the system he's got to go and do it said osborne the tory from the u.k. is a financial serial murderer we remember the big bang started in the u.k.
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when margaret thatcher leashed this model upon us and one of the very first assets transferred from the public domain to the private banking class was the public transport system and i want to know one thing about the public transport system in these inflation numbers public transport fares rose by five point three percent in the month of april and by twenty two point three percent on the year so remember we're told that we could transfer this to the private sector because they're so much more efficient and lower prices for us on the services that we'll hand to them but that was a scam government is good at running stuff like transportation and co-operative networks that's what they're good at economies of scale they get the best price private sector is good for introducing stuff like apple computers and computer gadgets and stuff like that but you can't want the same people who are competing
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selling sort of running the transportation sector already end up with exactly this problem rampant inflation high prices they walk away from it and look it up in the fukushima there's a private contractor tepco it blew up and where are they hiding in their beds at least have the decency to put a sort of yard commit certain model simple core well speaking of killing yourself max that's in the next headline the very same guys that blew up our global financial economy with financial weapons of mass destruction that exploded probably while they had some prostitute wearing a yellow armband. that's to rivet is emerged from long term pretty risky the long devaney risk is that you and i in people watching might live too long goldman sachs to wait to bag and j.p. morgan chase which bundled and sold billions of dollars of mortgage loans and now want to help investors bet on people's deaths. i've often said
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as i've said on the show if auschwitz was listed on the new york stock exchange today they would have never invaded germany or try to put an end to world war two because too many americans and british people would be profiting off the business model of auschwitz this is the final solution for the derivatives model is to exterminate millions of people using financial oppression now what don't you understand about that well. bust up go go i go to your bed again you frickin it is well the article of bloomberg points out that the closest thing to this is the synthetic c.d.o. is that blew up the financial economy because you're betting on the outcome of something that is not associates not you taking out life insurance on your own life it's goldman sachs j.p. morgan into your bank taking out an insurance on your life well again this is all made possible by interest rates being at near zero percent you can you can create
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these huge ponzi schemes that are self-referential that are tied to indexes that are created out of the anal orifice of some kuantan wall street who is the only guy not getting laid and then you try to market that to hedge funds and pension funds and you make huge fees but at the end of the day you're not talking about anything that would qualify as economics this is the casino goulet financial oppression in action and it's killing you. well it is tied to also the financial repression of attacking savers because these guys have to steal the savings of people who have savings and they are marketing this product to these derivatives towards the pension funds are sitting on more than twenty three trillion of assets that's another form of austerity and they don't all of the unsustainable risk in the pension funds and then they say oh the pension funds are losing money and by the
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way you have no pension why because they stole it these visas backdoor thing using the rhythms as financial death derivatives put the final nail in the coffin of our western economies we're moving into a new world order apparently according to this next headline china's central bank lays it down new i.m.f. leadership should reflect new world order so this is a quote from the chinese central bank governor who wants somebody to head the i.m.f. who's from china or brazil or a developing nation. so i want to look at one final headline here to see what this new world order might be and whether it might not look a whole lot like the old old world order excluding watermelons put spotlight on chinese farming practices fields of watermelons exploded when a farmer and other agricultural workers in eastern china mistakenly applied for coal or for nor on a growth exactly raters everything is just over high ground it's over stimulated
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and it's all blowing up so well maybe they might take this growth accelerator and now apply it to their own economy and i think they might just be ready to take on the world financial system right where we left off. that's what we need more artificial growth stimulation good. taste you're right thanks so much for being on the kaiser report thank you rex don't go away much more coming your way so stay there. twenty years ago in the largest country. this.
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was how did. you get your. where did it take to. welcome back to the kaiser a part time now to go to los angeles speak with nomi prins now me is a former senior executive at both goldman sachs and bear stearns she's the author of it takes a pellet you know me welcome back to the kaiser report thanks max. now me i want to touch on this. article for rolling stone the people versus goldman
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sachs of course you worked goldman sachs as a managing director and i also want to bring into this whole discussion some comments made by a wall street bucket shop that goes by the name of stone street advisors. in the in the story about me that stoned street advisors is takes exception to one of the things they bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin of lying before congress and lying to its clients your thoughts on carl levin's accusation the lloyd blankfein was lying to his clients and was he lying to congress with respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals one for example was hudson
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where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so the hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars position in that deal and because of that that was one of the sort of carrots the bait to bring clients into the deal and as the documents show and as the article mentions it turned out that woman had a two billion dollars short position against the deal so it's sort of like there was this little teeny carrot and then there was this whole dumping of sludge on the other side and the clients who came in were caught in between and there was a number of deals for which that was the case and different in different ways so the legal aspect of that is whether or not you know goldman has to indicate everything. also it's doing to the clients that it's trying to get into these deals into which they're also sticking really bad securities toxic assets things that are
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just. stuff they want to get off their books because they don't want to deal with that which is the crux of all of these c.d.o. is that were created around the later part of zero six and zero seven they were they were stuff that almost trying to jump away from its books so we could get first flat and then short and it was significantly short which brings us to work work life i was saying in front of carl levin in the committee they weren't significantly short well they they were so so that on its face is is a is a bold faced lie they were short they were short against the deals they were sure in general against the market but the legal question than anything else would be hard to prove is whether or not not that he lied because he was short but what assured me and it's that sort of clinton asked what is is is what blankfein comes back with is that he is making or goldman sachs are making a market and within the phrase making
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a market you can hide an awful lot of sins and of course is the problem on wall street with the elimination of glass steagall and other regulations that you have groups like goldman sachs claiming that they're making a market of course it's not their job is it but the fact that they can claim they're making a market gives them a gives on a blank check they can say almost anything and they get away with murder is that correct pose i mean goldman's profits were predicated eighty percent on their trading revenues and not the same wishing those trading revenues from market making revenues in which they are taking positions they can be buying for one client they could be selling for another client and what would the decimation of glass steagall did their notion of lasting going away allowed investment banks to find a way and push away in washington to be able to leverage to be able to borrow to be able to do whatever it was they wanted. to do to create profits in a very risky way and there's a lot of argument that says glass to god the thing to do with
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a company like goldman sachs making profits but the fact is it spurred a company like goldman sachs to go and create leverage and find leverage and lobby for leverage and create all these risky products and so there was a direct result between the repeal of that act and investment banks like goldman sachs doing what it is they do the problem though because of that is that there was never a return to the idea of what's the difference between a market maker and this is lloyd blankfein is argument and a company an investment house that's creating securities on behalf of its clients so from the perspective of gold and from the spread of the legal poorly regulated investment banking system and banking system the company is allowed to do what it calls market making to be sure to be long to do whatever it needs to do and how this responsibility to its shareholders to itself be a profitable company which they also hide behind and to create these securities it used to be the issuers and this was it was like the world class siegel was created in some ways to to delineate issuers were technically on the side of their clients
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if they issued debt for a company if they brought clients along into that debt issuance they were supposed to have some notion that that company was going to do well but when you get into something as complex as a c.d.o. we're throwing in all of this we're throwing in the deals that you have on your books that you don't want where you're trying to stuff them away as quickly as you can the notion of what's good and what's bad and what was what's responsible and what's ethical is completely mirka by now there's another problem with this making a market argument that they take a side from the gross. miscarriage of everything that would pertain to being competitive of course this is completely empty competitive and that's why so many of these competitors are being destroyed because of their being gobbled up by a few main behaves like goldman but there's another problem if they're making no more. it seems to me that when it suits them they can go in front of congress and they can effectively threaten to close the market if they don't get their way they
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have this kind of power now to put a gun figuratively to congress and said as we saw in two thousand and eight with paulson and other wall street types if you don't give us what we want because we are quote unquote market makers we are the market we can just close the market and they threaten financial armageddon is that so much of a spin on it or is that correct now and you have to take it from from from the bottom up and because it's not just the spin it's really the whole mechanism from creating the securities to creating the market part of part of matz article part of what happened to the investigation was that there was a deal for example timberwolf which is one of the c.d.o. deals where our company bought an investment within it and then wanted to get out and it couldn't get out goldman wouldn't make the market to basically take back the they had just sold and instead try to extract from this company more money more margin because they were going to be more losses in the deal they had just sold so on the one hand they can stop
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a market almost immediately after creating it and on the other hand you take that up to a larger conclusion and they can basically be in and out of markets at will on a larger scale and it goes back to the fact that we don't have a banking system and we don't have the appropriate regulations to dissect companies that are merely there to take sides and yes they can hedge some sides but hedging is not taking a thirteen billion dollar position which is what will mean ultimately took it was fifty four percent of their overall risk at one time which is indicated in some of those documents that were in the report that that's not a little position that's a market making position that's a betting position there's nothing legally in regulatory to keep them from betting there is nothing beyond ethics to keep them from betting against certain clients when they want to get with other clients depending on where they feel they're going to make the most money so yes it all goes into the definition of. what's a market maker versus what's. classic investment bank that is that is creating
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a situation whereby customers can access funds and investors can come in and supply those funds and those are two very different things yet in our loosely regulated banking environment they fall into one place like goldman the bigger more powerful companies as you mentioned take more and more of this role and that is stabilize the entire financial system and yet after everything we saw after all the bailouts after all of the pain that is still going on there is no change being discussed in that regulatory structure to keep this stuff from occurring or becoming an even bigger problem in the future which therefore it will i know we prince and former managing director of goldman sachs you are familiar with the culture of wall street your professional career starting out was tied to the highest echelons of wall street now what do you make of this statement. coming out of the stone street
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advisor group they say basically they're attacking this meditated piece and one of the things mentioned here is that well maybe goldman lied to congress because everyone lies to congress so these legitimising institutional kind of disregard for the law and this goes in print and there's no outcry about this and it's and given the what we saw with the adamic stress stress con that i amassed behavior recently and this is part and parcel of the culture of wall street of lawlessness of transgression of any any rules or regulations and it seems as though you've got a culture that's gone just from. law breaking to being predatory almost collegial like kalid you like calculus they're going absolutely wrong. down there what is that how you lived in the culture what is that's going on with these people whoever is able to sort of you know discard. central morality and
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in in a lot of ethics and in just you know basic human kindness tends to rise in in these firms and to run them and if you take that outside of the wall street arena into you know what the i.m.f. is doing with with peripheral weaker countries in europe versus the poor countries of the i.m.f. you're represents even though it's supposedly you know a body that represents one hundred eighty seven nations it doesn't it basically represents the stronger nations the wall street firms represent their stronger selves the people that rise in these companies are the people they want the power and influence to maintain what they have engine grow what they have and unfortunately this kind of power begets more power in the more influence that's concentrated within a few banks that operate globally the more influence that's concentrated it you know some of the members of the i.m.f. some of the member countries that hurts some of the others the more power that's concentrated at the fed that they bails out a banking system and then and then moans about the fact that the united states has
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to raise its debt cap which is only representative of debt that was created to float the banking system and take that away from public programs which is which is the i.m.f. m.o. as well you know that creates a situation where the weaker countries the weaker people the individual mortgage holders you know howard as you look at it we have a level throughout the globe continue to get hurt at the hands of people who really just want power and influence which continues to. manifest itself into more power and more influence right now only friends you have one minute left just i'm reading something you wrote just this week talking about the i.m.f. and the austerity measures and what's going on in europe and the basic deal that they offer there it's swapping debt for austerity we've got about really less than a minute left just walk us through their modus operandi oh it's again. what the i.m.f. does it looks a double digit in unemployment and tremendously weak indebted nations that became
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indebted because their banks either own money to the core banks or because they opened their doors as they were said to have to do by the e.u. by the i.m.f. to international capital international capital left leaving them with with with just a junky economy and in poverty and unemployment people and the solution the i.m.f. is putting upon this is to say are all do more of that you know continue to impoverish continue to reduce your social programs continue to create austerity measures so that we can loan you money so that you can float whatever international capital whatever mistakes of the banking system within your country private banks are extremely banks have made and we will continue in that manner to make your economy worse while we try to float these investors as long as we can all right the only brands thanks so much once again for being on the kaiser report thank you all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest nomi prins author of it takes a pillage if you want to send me an email please do so because the report at r t t
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v are you until next time this is nice guys are saying but you know.
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