tv [untitled] August 18, 2011 9:00pm-9:30pm EDT
oh i'm going to washington d.c. and here's what's coming up tonight on the big picture is going to want to hell of a roller coaster ride on wall street where e of the shakiness in the u.s. and european economies investors are pulling their cash causing the markets to plummet both up and down so is there any hope for the market stabilize also is the f.c.c. responsible for the cover up of hundreds of white collar crimes on wall street details of what republican senator chuck grassley is alleging against the securities and exchange commission.
you need to know this another day another wild ride on wall street the stock market slid down four hundred nineteen points in trading today as investors continue to an it go over economic conditions both in the united states and in europe this is just the latest day of chaos on wall street this month back in august on the august fourth the market plummeted five hundred twelve points then on august eighth after s. and p. downgraded our credit rating the market skidded out of control losing another six hundred thirty five points on august ninth volatility something market in the other direction surging talk four hundred thirty points then back down on august tenth with a five hundred twenty three point drop followed by the next day on august eleventh with a four hundred twenty three point gain on wall street and here we are today. day
wondering what the heck is going on after the market dropped more than four hundred one thousand points so what's the explanation here how long will the volatility on wall street last year for some answers i'm joined by economist richard roth professor of economics emeritus at the university of massachusetts amherst visiting professor at new school university as well as the author of numerous books including capitalism hits the fan it will economic meltdown and what to do about it richard welcome. thank you for inviting me great great to have you back with us sir why does a scene like the market always swings at least recently in the range of four to five hundred points is that by any chance just big enough for big investors to make the most amount of money without pushing the envelope so far that they're into dangerous areas of risk. well there's always some of that but i think something more fundamental is going on basically we've been in a crisis now since the middle of two thousand and seven between two thousand and
nine and earlier this year we had what we called a recovery but the truth of it is the only things that recovered were banks insurance companies big corporations and the stock market they dominate the government help all of them but the recovery bypassed the last majority of americans it was a modern version of what used to be called trickle down economics you help the top and you hope it trickles down to everybody else bottom line it never trickle the mass of people have high unemployment high foreclosures falling wages falling benefits at the job and the bottom line of what's happening in the stock market is if you don't help the mass of people if you don't change the economic situation at the base then eventually that will come back and do the recovery even for the people at the top and that's what we're seeing and it's terrifying investors around the world as they begin to recognize this is a serious long deep recession that may become
a depression if things don't get better soon are we facing a double dip recession or do you do you really think that there is a high probability or even a moderate probability of a second republican great depression. i think there's a significant chance of it and i think more and more people believe it if you look at the numbers of the rise in the price level which was part of today's fear if you look at the extent of the problems in europe if you look at the slowdown in china and japan everywhere you look the preponderance of signs for the future are negative and that's why you see this extreme anxiety of people pulling back scavengers coming in to buy stocks cheaply then being burnt and pulling back it's a time in which the recognition of the severity of this crisis which governments and people have wanted to avoid seeing is becoming no longer possible to not
see and everyone is scurrying for what to do wasn't there a very similar period of while volatility from october of one nine hundred twenty nine into early one nine hundred thirty. yes and then when there was a little bit of a recovery basically in the middle of the 1930's because roosevelt unlike obama produced government jobs eleven million of them to be exact but then the republicans again and conservative democrats donned this kick of holding back the government because they were frightened by its power and they pulled back and the economy double dip again and that's the fear of what we're doing again so it's sounds to me like what you're suggesting after wolf professor wolf is that the fundamentals were defective they were broken that basically thirty years or reaganomics and eight years of bush and omics reaganomics on steroids phil graham's
little handy work with graham which while it blowing up steam go on commodity futures modernization act creating all these weird to reveal all these other things that these fundamentals our trade fundamentals none of these things that thirty years ago provided for seventy years one hundred thirty five until reagan basically provided a sense of a measure of real stability none of these things which have been pulled out or smashed or thrown away have been replaced and until they are we're going to continue on this rollercoaster is that are a reasonable statement in english of how an economist would would say it. absolutely but add one thing for thirty years the real wages of american workers have not been raise average hour of work adjusted for the prices you pay gets you about what you got in one thousand seven hundred eight today if you create a working class that has no improvement for thirty years and which holds on to the american dream only by borrowing until they literally can't anymore you come to the
end of the rope you can't afford to buy what you need and you can't borrow any more and until that fundamental problem. it's changed in this country we're going to see a crisis that lasts and deepens and frustrates the efforts to get around it in some easy way we have to deal with a system that is broken politically as well as economically and until we do it's going to bite us and hurt us in ways that we have not experienced for decades in the united states so what should be those fixes that you're talking about what specifically should congress the present. first and foremost jobs you've got to take eight to nine million people that have no jobs the other ten to twenty million people that have part time when they want full time or have given up looking you
have got to put those people to work doing something useful earning a decent income so they can meet their mortgage payments so they can buy goods and services that give other people jobs if you don't do that deal with the wage problem deal with the unemployment problem the rest is going to be as ineffective in the future as it has been in the last four years so the first job of the president in the congress put the american people back to work and do it quickly because time is running out q e three that the fed by another half a trillion or trillion dollars in the bonds and creating you know pouring more liquidity into the market theory i suppose that's not going to do. the so we it didn't work in the last four years and now we have a bigger death and we did four years ago we have a rating agency standard and poor's which has said what everybody else knew already
that the united states is becoming a country it's dangerous to lend to because it is using too much of the tax revenue to pay off the banks rather than to provide public services for the people who pay the taxes you can't keep going this way when it doesn't work and so you're going to have to bite the bullet tax the rich the way they used to be tax the corporations the way we used to use the money to put americans back to work that is a reasonable way to proceed alternatives that were tried failed come on it's time and the country needs it more than ever so very well said professor world thank you so much for being with us tonight. thank you until congress there is pursuing economic policies that will seriously get us out of this recession as opposed wolf weighed out and doesn't just hand over more money to billionaires to play with on wall street our markets will continue to shed wealth i'll have more on this in tonight's daily take.
it's time for a daily poll your chance to tell us what you think here's the days question with one out of every five children in america living in poverty are we still in a recession or is this really a rule of full blown republican great depression your choices are yes we are clearly in a recession or yes we are stuck in the republican great depression or going to an army dot com let us know you think it will be open until tomorrow morning. crazy alert tinkerbell has been caught a lot of mexican man claims he found a real life fairy well picking fruit in guadalajara i was picking and i saw a twinkling and i thought it was a fur fly i picked it up and felt that it was moving and i looked at it i knew it was a fairy godmother so what did jose manuel longo do with the so called fairy godmother
paints a fairy jar for mel hide or if it was an actual real life fairy it would have probably suffocated now and on lotto is putting his discovery what appears to be a tiny human like corpse in this jar of formaldehyde on display for people to see for the charge of a few paces he's also selling photos and souvenirs of the so-called fairy is some of the blogosphere observed on the lawn those magical fairy looks extremely similar to a cheap plastic fairy toy available for sale in some mexican bazaars and the breaking news update we're getting word now that a little girl summer in guadalajara is missing her tinkerbell toy. next wondering why no bang stirs have gone to jail yet for the two thousand and eight crimes on wall street maybe it's because the regulators in charge of policing wall street are busy shredding the evidence more on this story after the break.
drives the world the fear mongering used by politicians to mates decision to break through get through it if you may who can you trust no one who hears you view with a global mission would see where we had a state controlled capitalism is called sasha's when nobody dares to ask we do our t. question more. for.
whose screwed us did the securities and exchange commission cover up as the crimes on wall street republican senator chuck grassley is alleging that the f.c.c. destroyed more than nine thousand documents related to investigations into some of america's top banks during the height of the financial crisis during bush's tenure in two thousand and eight and continuing in two thousand i among the documents destroyed were files related to the burning made off ponzi scheme miles on goldman sachs and the g.e. and other files looking into the behavior of big banks like bank of america citi group wells fargo and morgan stanley in a letter to the chairwoman of the f.c.c. senator grassley wrote it doesn't make sense that an agency responsible for investigations would want to get rid of potential evidence if these charges are true the agency needs to explain why it destroyed documents how many documents are
destroyed over what timeframe and to what extent its actions were consistent with the law it looks like this is another case of corporate capture of government regulators but even more troubling maybe the corporate capture of one of the most important committees in the house of representatives the house oversight and governmental reform committee currently chaired by former criminal and now republican congressman darrell issa who also just happens to be the richest man in congress and made much of his money outsourcing the manufacturer of his car alarms to asia for more on that story i'm joined by lee thought investigative journalist and blogger at think progress dot org we welcome back. a.j. i'm going to talk to you great to have you with us in your recent piece and think progress you write nysa has turned the house oversight committee into a bank lobbying firm with the power of to subpoena government regulators i don't pull that one off. well you know the oversight committee historically has served
the public interest it's work to conduct investigations and some of the biggest corporate scandals in history as well as government scandals i mean this is been spared this a sense chairman isotope over in january he's been stocking his committee with corporate lobbyists and he's actually been reaching out to lobbyists on k. street asking them what do you need help with and if you look at what he's been investing in the past eight months he's been pushing the same lobbyist agenda so essentially lobbyists now instead of just begging politicians or bribing politicians to do their bidding they now have a man on the inside basically with the power to fight off government regulators on coal or oil companies and in this case big banks he said he reached out to lobbyists specifically explicitly yeah he did it in a pretty clever way you said you know what i want to figure out the best way to bind the worst regulations that we need to investigate so i'm going to open my
office up and ask the job creators to send me recommendations. that's you know a good press strategy but in reality some of the biggest lobbyist in the country then had an opening to go in and actually have formal meetings with them so help develop his agenda that's mind boggling now goldman sachs in your article you were talking about a fellow with a woman sachs who was a v.p. of woman's x. and then literally changed his name when he went to work for paralyzed i mean this is like something out of a bad novel tell us tell us a story about this. well since i published the story this morning there's been a few revelations basically this person. had gone from government agencies like the s.e.c. to goldman sachs and then in two thousand and eight changed his name from cheers to mony to peter holler then he went to
a lobbying firm and now he works for ice and that the crux of our story is that peter hollered at our peers i'm only whatever you want to call him i started working for i saw specifically on issues that affect his old employer goldman sachs he started drafting letters where i said basically challenging bank regulators to back off the new mandates from dodd frank that there are these big new rules particularly on derivatives that goldman sachs does not want to comply with and now isis helping him with the help of a former goldman v.p. peter holler to fight these make regulators of a name change the interesting because hollers sent a statement to talking points memo today saying that he chose to change his name in two thousand and eight to honor her grandfather who died in one thousand nine hundred four and his dying wish was for his grandchildren to take his name now i can not going to dispute any of peter's reasoning but it's not exactly clear why he
chose to change his name after leaving goldman sachs and waiting some seventy years after his grandfather's death yeah one would think. is this how unusual is this that somebody works for you know goldman sachs dow chemical whatever fill in the blanks on large transnational corporation or a bank and then ends up on the staff of a congressional committee or a congressman who has oversight over that particular industry or business or in one of the regulatory agencies as we were you know i suppose thing up with the s.e.c. and the big banks how unusual is that. it's not unusual at all and have figured it was just released i think today the super committee of the big bipartisan committee that's going to recommend as well massive cuts again as well. approximately one hundred former staffers two members on the super committee are now working for
corporate lobbyist. that's a pretty large number and you can show even more explosive examples all over government for example even for eissa you know we actually did a story pretty similar to the one today last month where another bank lobbyist was actually helping to write policy and investigations were terrorized to his name was treated or warrant and he actually got a bonus to leave his bank lobbying firm to go work for i sent and now i see it's tracking investigations that would benefit peter warren's boat lobbying parent and his lobby nothing to do with goldman sachs but just his wife are related to student loans he represents private lenders and of course i said has been the biggest to track here against the new regulatory body on student loans the consumer financial protection bureau so this is almost i would say this is like somehow trying to audit we didn't we need the rico laws on those and this is incredible let's move on
to what the chamber of commerce is up to on the internet i've noticed for years you know on my own message boards over thom hartmann dot com that people have been going to my message boards particularly around the time of elections and posting right wing propaganda i even had one guy admitted this was during the two thousand and eight election cycle after the election that he had been paid to post by conservative agencies organizations to do it but it appears that the chamber of commerce may be up to something much more nefarious using fake internet identities earlier this year i think progress obtained act e-mails from the defense contractor age be very federal that suggests that with the help of other security firms h.p. g.s. was working with the chamber of commerce to sabotage progressive organizations like think progress in the union as you it appears their strategy was to use fake on line personas complete with fake twitter facebook and linked. in accounts to infiltrate and gather private data and people who work for organizations critical
of the chamber of commerce for example meet holly webber born in one thousand nine hundred four attended reynolds high school worked for lockheed martin served time in the air force and is completely made up and holly webber is not real she's one of the fake online personas created by h.b. gary federal and it looks like the guy who created so called holly weber and executive h.b. gary federal air and bar apparently drew his inspiration for maxim magazine and this model whose name is actually holly weber and was actually born in one thousand nine hundred four so what's going on here at least one of you guys over the center for american progress found out about this. this is this is pretty wild you know as you accurately described there is this massive hacking plot that was exposed by anonymous a corporate hacking plot to go after progressive's. part of it was not just stealing information from computers using a computer virus or malware part of it was just hoping to fool people by creating
fake identities to infiltrate their organizations creating fake linked in facebook identities interacting with real people and getting them to give away sensitive information and they actually used a very powerful software to tool one of them called pal and here which allows a single person at a defense contractor to manipulate hundreds thousands maybe even tens of thousands of fake identities at the same time so you could have an entire community of hundreds of people online interacting with each other discussing different topics together but none of them were real and it's fascinating because these military contractors were pitching this to the u.s. chamber which is a big business lobbying group for corporations but they had actually sold this technology and were in discussions that deal this technology to the u.s. government they were offering it to different u.s. intelligence agencies presumably to deal with jihadi threats but you know you never
know exactly what the end goal is so are there other examples of corporate america using this. sure we actually did not precisely this tactic but we caught the company koch industries hiring a firm in alexandria virginia called new media strategies and what new media strategies would do was have their staffers create numerous comment section. identities. identities and handles on wikipedia to basically set the frame of the debate write comments to news stories scrub. stories they didn't write off we could p.t.o. that sort of thing that's absolutely extraordinary and you know we've been saying this for so long here and i've been yelling about it for some time it's it's great to see. you guys at the center for american progress and others finally nailing it down leave thanks so much for joining us tonight. thanks for covering this issue
it's very hard to to find people that are really ok i get attention so i appreciate it i think it's i think it's one of those important things going on late thanks again thanks again it's time to slam shut the revolving door on capitol hill bolted closed and call out corrupt congressman right there allies and the call of the right wing organizations that are using billion dollars to do everything they can like writing our legislation infiltrating our facebook pages and rewriting wicked pedia in the name of corporate profits. this is just. it's the good the bad in the very very petty a kill of the weekly ugly good karl rove i'm not really. really karl rove said something good it doesn't mean he is good he just said something good and that's worth noting suppose it interview on fox so-called news
rove went after the idea that america is a christian nation. but we're based on the judeo christian ethic we derive a lot from it away if you say we're christian nation what about them what about the jews what about the muslims what about the nonbelievers of you want to great things about our country is the first amendment guarantees you the right to believe or not to believe as you choose while off the reasonable coming from bush's brain karl rove sounds reasonable you know for a fact today's republican party is totally whacked out but bad. republic middle school back in two thousand and nine a seventh grade special needs student at the school and this is in springfield missouri reported that she was raped by another student but the school didn't report the incident to the authorities and instead accuse the girl of line and convinced her the rape never happened she was then forced to write an apology letter to its backers before she was expelled for the remainder of the school year when she came back to school the next year the same student great again this time
police got involved in a rape kit proved that the rape did in fact occur because a middle school is now being sued the school district however is sticking to their guns saying the special needs student quote failed any elected to use reasonable means to protect herself and quote. it's about time for some people fired. and a very very ugly who else senator tom coburn a republican from oklahoma had some disturbing words for his colleagues in the senate tell touring around oklahoma yesterday coburn call is fellow senators career elitists and cowards and. it's just a good thing i can't pack or go out on the senate floor while i guess the one man filibuster tom coburn so often employs to stop arrested legislation or any legislation for that matter that doesn't like isn't good enough for him anymore now he wants to dictate the senate's agenda down the barrel of
a gun now we have armed republican hostage takers and that's very very eyes. get it out there's a disturbing increase in the number of children living in poverty in america all at the same time republicans are working feverishly to cut programs aimed to help those very same needy children so what happened to so-called compassionate conservatism. that drives the world the fear mongering used by politicians who makes decisions to break through to be made who can you trust no one who is in view with the global machinery to see where we had a state controlled capitalism is called satchels when nobody dares to ask we do our tea question more. fun.
for. welcome back to the big picture i'm tom hartman coming up in this half hour as we move closer to the ten year anniversary of the september eleventh attacks residents of the big apple are planning to commemorate the lives of the victims and their families but not the people who put their lives on the lied to save others so why are the first responders of this tragic event being
a. plus republicans are turning a blind eye to a very serious problem in america child poverty and the growing. number of children going to bed hungry why are the right wingers fighting for him and or why are they not fighting for it for the spreading of the doubt and as more and more families descend into poverty the need for food assistance rises but believe it or not that's exactly what stimulating our weak economy i'll tell you the important role of government food assistance is plain in our economic recovery in tonight's really take. in other words and more signs this isn't not that's not right. hang on just a second. it is right ok a new study by the anneke casey foundation shows a significant decline in the well being of american children over the last.