the economy pays or the banks the banks position is save us not the economy so the government says ok we're going to do it we're going to treat america essential like the international monetary fund has treated third world countries for thirty years we're going to impose austerity the way of solving things the only way that the banks think is to treat america like greece to treat it like europe has treated italy to impose austerity and really tighten the screws nobody has found an alternative to impoverishing the economy to pay the banks something has to give so let's talk about what might give here i mean before the bust as asset prices were rising families were taking on more and more debt we've seen the leveraging since two thousand and eight what's in store for the average person not necessarily the. banks but in terms for the average person. well unemployment is still pretty high the average family is pretty debt ridden now you have student debt rising. a lot of families are drawing down living off credit cards to breakeven they're not able to get mortgage loans so they can't rai

the economy pays or the banks the banks position is save us not the economy so the government says ok we're going to do it we're going to treat america essential like the international monetary fund has created third world countries for thirty years we're going to impose austerity the way of solving things the only way that the banks think is to treat america like greece to treat it like europe has treated italy to impose austerity and really tighten the screws nobody has found an alternative to impoverishing the economy to pay the banks something has to give so let's talk about what might give here i mean before the bust as asset prices were rising families were taking on more and more debt and we've seen the leveraging since two thousand and eight what's in store for the average person not necessarily the. banks but in terms for the average person. well unemployment is still pretty high the average family is pretty debt ridden now you have student debt rising. a lot of families are drawing down living off credit cards to breakeven they're not able to get mortgage loans so they can't

is to pump money into the banking system the pretense is that the banks that are going to turn around and lend this money out to the economy but that's not what's been happening at all either the economy the banks have been speculating in foreign arbitrage currencies or foreign loans or they've been spending it within the financial sector none of the quantitative easing has really gone into the economy at large so whereas keynesian spending is the government is the employer of last resort in quantitative easing the government is the buyer of junk mortgages of last resort when there are no more german banks to buy there are no more pension funds to buy everybody knows that these mortgages are what's called toxic waste the government is the buyer of toxic waste of last resort and so what's what's going to happen i mean the federal reserve owns all this treasury securities but also all these m.b.'s you securities and they've changed their accounting manuals so they don't have to take capital losses but when interest rates rise there is still going to be paying interest on excess reserves

like the community banks the savings well you know the roofs and whatnot sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit right moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank rates that are as low as they have been are no

to operate right what about the big banks versus the smaller banks like the community banks the savings well you know the. sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit right moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank

bank the bullion banks are having to go out and pay a premium to buy bullion now given the fact there's no producer hedging going on of any song use which might explain. in some of that really what they were saying is they're actually coming out paying a premium buying the buying bullion to spray vi bullion to the market because there's a shortage of bullion there's two things going on here there's a shortage of bull and going on and a lot of drivers to that if phenomenon are happening on the central bank level the big macro level but there's something else going on here which is that what you're saying here technically speaking is that for traders they could sell their spot gold today and essentially buy it back and the three month contract for a locked in arbitrage profit but because they are so uncertain that they could buy it back in the future they're not even willing to pick up the free money that's being availed to them what does arbitrage that's backwardation that's completely abnormal that's a telltale sign of a market that's a distress just does does dress correct that's absol

>> the shareholders or the member banks. the other central banks. there's an annual general meeting every year where they discuss the way the bank is going and the governance of the bank to another thing which i should mention is also that the bank is still very eurocentric. you can see its heritage, that it was set up in 1930s a century by the europeans and buy america as well. after the collapse of communism although small countries like estonia, macedonia, slovakia, the new countries, they are all admitted and i added of the population, it was something like 16 million people in all of these small new countries. but in africa, only a jury in south africa are members. algeria is not a member of the bis. that's quite an amazing that one of the biggest economies in the world is not a member. pakistan is not a member. kazakhstan are not members. so in africa, in asia, in central asia, there's against it and i asked why, if they said well, the sympathetic has to meet certain standards of governance, economic transparency and the way the economy is run

penny stock wasteland and this is the heart of what a lot of the bank let the banking system collapse was the new mindset of a pump and dump or scam or penny stock holder they treated their multibillion dollar companies like penny stock companies yeah you know as big come what you fear you know some philosopher once said in lehman brothers was notorious for pushing penny stocks or pushing stocks like penny stocks or pump and dump scams this was a lehman hallmarked of lehman brothers and and wall street leading up to the crash of two thousand and eight and dick fuld was he took that penny stock mentality and applied it to mortgage backed securities and that's how you got this mortgage backed security bubble inflated to multi-trillion dollar levels and then collapsing it was enough that they did the same thing in the savings and loan bubble and bust or the nasdaq bubble and bust they had do this with mortgage backed securities so dick fuld was the ring with the ringleader in that huge mortgage backed security pump and dump penny stock like collapse and it's poetic that he's now losing i

to work for the world bank. again, the second point i wanted to make which is key. what can you do about this? what you can do is spend your money better and stimulate innovation and r&d. you have to cater to the immediate needs of paying pensions. i am not worried about what can happen in the droid. -- detroit. the u.s. will never let down their people. no matter who is picking on whom, this is an issue. >> how you share the burden is the issue. we have been talking about how much should they carry the can. on facebook, we have a comment. we should not avail. the auto companies. we should not bail out detroit -- we should not have bailed out the auto companies. we should not bail out detroit. this issue of sharing the burden that has been talked about so much since the crisis. over the weekend, the german finance minister said when it came to the issue of debt burden, it is a matter of justice and fairness that multinational companies pay their fair contributions. it is not just about sharing the burden among t

bank of england and all the banks and the u.k. as financial terrorists by creating this term of capital as he hottest but of course he's misapplying about term the banks of course they would need capital reserve requirements to be functioning banks in a free market system you don't want banks involved in ponzi scheme economics like vince cable is proposing like vince cable is perpetrating like vince cable is supporting by saying no we don't want minimum capital requirements for banks we want financial terrorism so things cable now has become financial terrorist number one used to be george osborne but no vince cable your financial terrorist number one you love that right for stealing my material without actually beautician that right there is a copyright violation mark well he's comparing them to tap the taliban capital taliban. so basically here's the bank of england and you can look back for three hundred years of their interest rate policy their money their capital policies are looser than they ever been this is the equivalent

bank of england and all the banks and the u.k. as financial terrorists by creating this term of capital g. hottest but of course he's misapplying about term the banks of course they would need capital reserve requirements to be functioning banks in a free market system you don't want banks involved in ponzi scheme economics like vince cable is proposing like vince cable is perpetrating like vince cable is supporting by saying no we don't want minimum capital requirements for banks we want financial terrorism so that cable now has become financial terrorists number one they used to be george osborne but no vince cable your financial terrorist number one you love that right for stealing my material without attribution that right there is a copyright violation mark well he's comparing them to tap the taliban capital taliban so basically here's the bank of england and you can look back for three hundred years of their interest rate policy their money their capital policies are looser than they ever been this is the equivalent of a wom

bank of england and all the banks in the u.k. as financial terrorists by creating this term of capital is the hottest but of course he's misapplying about term the banks of course they would need capital reserve requirements to be functioning banks in a free market system you don't want banks involved in ponzi scheme economics like vince cable is proposing like vince cable is perpetrating like vince cable is supporting by saying no we don't want minimum capital requirements for banks we want financial terrorism so things cable now has become financial terrorist umber one used to be george osborne but no vince cable your financial terrorist number one you've earned that right for stealing my material without attribution that right there is a copyright violation smart well he's comparing them to tap the taliban capital taliban. so basically here's the bank of england and you can look back for three hundred years of their interest rate policy their money their capital policies are looser than they ever been this is the equivalent of

of the bank of the other one is partially owned by the public so you have publically owned banks that are taking free money from the bank of england instead of lending it out there putting it on deposit at the bank of england and getting a free rate of interest on that money and the debt pile by the way is increasing exponentially so the need to print more money and to continue this farce continues that's why i say something many would consider a radical lowering interest rates and keeping interest rates low causes deflation it doesn't ovoid deflation because that is not in the skull mark carney the pole dancing hockey puck braindamaged idiot who's now running the bank of england because spec more of the same so they also not only cut rates on their savings but they also cut across the bond all their fixed rate bonds other cuts applied to fixed rate bonds last week a four year bond paid two point three percent across all of the nationwide brands falling this week for new savers to one point nine percent the change represents a twenty one percent cut in returns and it's causing deflati

the economy pays or the banks the banks position is save us not the economy so the government says ok we're going to do it we're going to treat america essential like the international monetary fund has treated third world countries for thirty years we're going to impose austerity the way of solving things the only way that the banks think is to treat america like greece to treat it like europe has treated italy to impose austerity and really tighten the screws nobody has found an alternative to impoverishing the economy to pay the banks something has to give so let's talk about what might give here i mean before the bust as asset prices were rising families were taking on more and more debt and we've seen the leveraging since two thousand and eight what's in store for the average person not necessarily the. banks but in terms for the average person. well unemployment is still pretty high the average family is pretty debt ridden now you have student debt rising. a lot of families are drawing down living off credit cards to breakeven they're not able to get mortgage loans so they can't

the bis is the only real foreign bank of -- branch of the bank. who is running the bis during the war? this is where the story gets interesting. the president of the bank from 1940 to 1946 was aman thomas. thomas was an american. an american banker in london, was secialtly, as far as i can see was chosen by them to take over the bank. he arrived in 1940. and the manager of the bank was frenchman, and the deputy manager of the bank was a german called -- -- with the nazi party the general secretary was italian and the economic adviser was a weed. it was in neutral switzerland. it became the main venue for the covert channel between the allies and the nazi about planning. for example, 1942 the bank economic adviser went to america to have meetings. obviously the thinking was we have to set up a new financial system. he comes back, what does he do? go to we berlin to tell them everything he's learned. we must think that it was predictable he was going to do that. he was knew neutral. he has a connection to the germans. it's known that thomas was and

jet so you know what the bank with the bank cap rules say is if you hold cities debt you have told one fourth of you have found that with one for the capital that you have to fund i.b.m. staff that just makes no sense whatsoever so the capitals give banks incentives to invest one another which that needs to be changed so there's a lot of work we do at the capital we need to up the dead ever since we need to reduce interconnectedness but you know that is in process. the rules have been proposed most of them but they have been finalized as a lot of industry lobbying to stop that pushback and the industry can't have it both ways they want to say oh well too big to fail so over it we're fine and don't worry about us on the other hand the regulatory measures that will really into big to fail they fight tooth and so that i think it's very frustrating and so what about proposals like breaking up the big banks do you see that as a reasonable way to go about it i would i would like to see the market drive that i really think that if we can convince the market the too big to fail is over forced

is to pump money into the banking system the pretense is that the banks that are going to turn around and lend this money out to the economy but that's not what's been happening at all either the economy the banks have been speculating in foreign arbitrage currencies or foreign loans or they've been spending it within the financial sector none of the quantitative easing has really gone into the economy at large so whereas keynesian spending is the government is the employer of last resort in quantitative easing the government is the buyer of junk mortgages of last resort when there are no more german banks to buy there are no more pension funds to buy everybody knows that these mortgages are what's called toxic waste the government is the buyer of toxic waste of last resort and so what's what's going to happen i mean the federal reserve owns all this treasury securities but also all these m.b.'s securities and they've changed their accounting manuals so they don't have to take capital losses but when interest rates rise there is still going to be paying interest on excess reserves one

have to compete they become what are called zombie banks like the big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the kaiser report thank you max stay tuned for the second half a whole lot more. i am going and i am. playing at. the end i. do we speak your language i mean come on they will not advance. news programs and documentaries and spanish what matters to you breaking news a little turn it if angles couldn't stories here. are you here with fists to ensure they all teach spanish find out more visit i to allahabad all tito is calm. live. if. you. live. welcome back to the report imax guys are time now to target paul somervell the c.e.o. of somerville advisory market welcome to the kaiser report i'm max all right paul somervell let's talk about hashtags angle which has been sweeping twitter now first we've got a major reveal coming because you've done some investigative work on this but first let's remind the audience of the story thus far sure it's supposed to start off with the story about a bank it's not a story by one rog

compete they become what are called zombie banks like the big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the report thank you max stay tuned for the second half a whole lot more. so basically when the saudis or the iraqis will do the turn of the companies when they provide the shooting the promoting for the regime that the d.n.a. their cousins if you share a language to share a a faith to share a culture and tradition now what you're saying is that because you are an arab because you are a muslim you for some reason have the same right to protecting the syrian people but to me it sounds just as you know condescending as the bushes claim or you know supposedly car responsibility here. choose your language. kill it oh if they still some of. the concerns get a. chance to opinions that invigorating good. clues to stories that in life choose access to offer to. play. because leakage. welcome back to the kaiser report imax guys are time now to target paul somervell the c.e.o. of somerville advisory market welcome to the kais

to operate right what about the big banks versus the smaller banks like the community banks the savings well you know the. sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that for the moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank r

to operate right what about the big banks versus the smaller banks like the community banks the savings well you know the. sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does a moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank rates that a

to operate right what about the big banks versus the smaller banks like the community banks the savings well you know the roofs and whatnot sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to go in let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit in right moderate interest rates i don't think you can call moderate interest rates and zero interest ra

banks, the central bank's. there is an annual general meeting every year where they discuss where the bank is going. but another thing that we should mention is also the bank is still very eurocentric. you can see their heritage after the collapse of communism of the small countries, the new countries, they are all admitted the population is something like 16 million people. the small new countries. but in africa only algerienne south africa. not a member of the dis. that is quite amazing. pakistan is not a member. kazakhstan is not a member. so in africa, in asia, in central asia, there are big gaps. asked why. well, the central bank has to make sense. governance. economic transparency in the way the economy is run. have questions about economic in russia and china and other places. it is changing, but slowly. >> we have seen a similar dynamic to the imf for some of the country's that are not the usual suspects are being much more vocal, particularly ptl and the big brick countries. >> well, all i have heard i

bank of england and all the banks and the u.k. as financial terrorists by creating this term of capital g. hottest but of course he's misapplying about term the banks of course they would need capital reserve requirements to be functioning banks in a free market system you don't want banks involved in ponzi scheme economics like vince cable is proposing like vince cable is perpetrating like vince cable is supporting by saying no we don't want minimum capital requirements for banks we want financial terrorism so this cable now has become financial terrorists number one they used to be george osborne but no vince cable your financial terrorist number one you've earned that right for stealing my material without actually beautician that right there is a copyright violation mark well he's comparing them to tap the taliban capital taliban. so basically here's the bank of england and you can look back for three hundred years of their interest rate policy their money their capital policies are looser than they ever been this is the equiv

to operate right what about the big banks versus the smaller banks like the community banks the savings well you know the. sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to have their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to go in let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit right moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interba

these are the banks that are dealing directly with the fed the government to make markets or to be the interface between fed policy or central bank policy and how those interest rates are played out in this commercial banking system so what you would be charged on a mortgage or what kind of interest rate you get on the certificate of deposit for example so these guild market makers these gems i guess are the u.k. equivalent but yes so they've been caught now a front running the fed or the bank of england and pocketing illicit games just like we found the exact. same thing in america the primary dealers are have been caught front running with the fed are in cahoots with the fed and you are right david cameron knows this information and yet he had a bald face lie to the public he stood up in the house of commons he pounded the dispatch box and he lied through his teeth and said there's nothing wrong with the banking system. and there's george osborne's there like. that not only he can't he can't stop them so from lying so the article no this is following on the heels of libel rigging and

the bank of england decision. for the time being, i'll send it back to you. >> we'll check in with you in a bit. let's return to the stories on markets, portugal in particular, ten-year yield now 7.2%. the retreat about 100 on basis points in the 24-hour period. significant improvement about the way investors are feeling around borrowing costs in portugal. joining us is laurent franzlo from barclay's. we saw that spike in yields yesterday, an extraordinary move across the curve. why do you think investors have reversed positions so quickly in such a short time frame now? >> the question is whether investors have really reversed positions or not. let's keep in mind in particular portugal -- portugal and greece are very small markets, very fairly ill liquid markets especially in terms of prizes. so it is not that there is a lot of volume that is going through at these levels. that's why you've got jumps up and down of 30, 50 basis points on a daily basis. so clearly there is more reprising of the risk premium on por

fact the need to have bought off the banks gets reduced in value. so cite is don't lose what you actually basically doing is re setting the system to have more money and listed it created money because we a lot of thought to much debt created money to be made by the banks but doesn't this just in the in general more moral hazard in other words people understand that there's going to be this true believe in they'll just be and they'll just be more likely to take on more debt in the future will hold that it will be explicit out of control how much banks can lend how do you that's again. the property income limited leverage for real estate. is that the share market or controlling margin debt to make dividends rather than by some share prices you have to force the banks to limit their lending to the income earning capacity of whatever spain went for who gets to be in charge of forcing these banks and this is they're not just part enough to do this the judge is the best because a simple little rule says you can't lend will intent on the rental income of

s the bank of international settlements the central banks of central banks go holy smoke we have a problem we cannot afford to have a bullion bank go down if there's a run now immediately you've got one default what's going to happen everyone is going to do you know the wrong thing norden or the wrong thing and wind up i want my bullion that would collapse the three major bullion banks in london which would collapse the entire global banking system as we pull in banking this remains really banks are allowed imagine three of the four biggest banks right just basically j.p. morgan goldman sachs i mean it's not just the u.s. it's the three biggest billion banks in london and london from both sides in atlanta and bearing in mind there are six billion banks clear. c.l. which is the london clearing bank system which is basically six billion banks pretty much all of those control what's going on they clear everything in london every day but basically so you've got now or this run so what happens is the fed steps in and says look we rather than expose this whole collapse and that and also on top o

to operate right what about the big banks versus the smaller banks like the community banks the savings well you know the. sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can stay in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of a talk. we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit right moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank

barclays royal bank of scotland lloyds to take out a loan if i want to the bank of england and i was one of these banks and i borrowed a million dollars i borrowed a million dollars it wouldn't cost me any interest rate of all at all at one go they charge me five thousand percent at the bank of england they pay me two percent they pay me to borrow money that's the difference does any aspect of wires or those huge wealth and income gap in the u.k. and around the world well because if you're on the inside you get paid to borrow money if you're on the outside of the interest rate apartheid wall then you get charged five thousand percent to borrow money is it any wonder the entire world is all rising so that they conclude this thought experiment is saying that basically they won't be able to unwind without threatening the entire financial stability of the store soon if i put a gun here and said you know you're loaded and then you on the b.b.c. and say wait i'm going to think one of them but i love my mother didn't they got to look at the do the do the detainees efficient markets theory e

banks is apostle and we also had moral hazard the government also build out a number of banks during these financial panic i would say what the federal reserve does it's simply institutionalize moral hazard in fractional reserve which already existed certainly that i think the fed reserve has done a lot of that on the greenspan right now it's gone astronomical on on the institutional moral hazard the moral hazard always just in banking because banks profit by creating debt and that can persuade us to borrow borrow money by. buying into the mississippi scheme or anything like that long before you can talk about clearing houses for banks right i'll do it and that's what the naive view is of people you know the austrians at one extreme you yeah that the other side it's all the fault of the government sector without the government everybody gets that naso in the section of supply and demand and nothing goes wrong with that that works with that vision it's got some sort of sense not a lot but some sense in a production world banks that have surprised constraints of supply and demand banks

well the banks you know again this is the but the banks pretty much run things in cahoots with the with the federal government. you know we read really america's become a soft fascist society it's a fascist economy mousseline you define fascism as the combination of corporate power and state power and you know that's that's what we have so there are certain big corporations that in cahoots with the federal government are running running the rest of us. can't last however it is going to come down. again when that happens you know i don't know but we ought to remember who's to blame it's the banks the fractional reserve banks it's the federal reserve it's the congress it's the entire government we certainly see a lot of parasites on the rest of us we certainly see a lot of revolving door especially in the financial sector but even at the e.p.a. apple just hired somebody who used to be the head of the e.p.a. so it looks like everybody has to make their payola in order to protect themselves from the fed but getting back to the for. the reserve itself it looks like bernanke he's leaving town

the part of the borrower dishonesty on the part of the banks some of the people that work for the banks that were in charge of making sure people wrote loans and made loans to people yeah. because the bank had very little liability even though that bank made that loan that they knew was very risky where they may be lending one hundred percent of the value where they may be lending it to a person with bad credit where they may be lending it to a person who they haven't even verified their income they were turning around and within thirty days selling that loan to an investor taking away their liability so they made all their fees and their money upfront in originating the loan but then had very little at risk because they were able to package all these loans sell it to investors. and that's that's the reason why they made them that's the reason why the thing went wild during that period and you know it's it's the big mortgages and i'm not not mortgage but the big institutional banks that package the soul of the international investors europe was definitely in impacted by buying these. wh

best performers on the banking space and the banks reporting today. deutsche bank reported a miss on the second quarter pretax profit, bringing in 792 million euros. analysts were expecting a number in the region of 1.3 billion. results were hit by a 630 million euro hike in litigation provisions, and you can see the share price taking a knock as a result. we have a bigger slide in barclays and right at the bottom of the ftse today, barclays posted a 17% dip in its second quarter pretax profit from a year ago. the bank also announced a leverage plan. it aims to raid 5.8 billion pounds by a rights issue, more expected. there was enormous speculation yesterday, down 4.6% on the stock. elsewhere in spain, santander posted a it t29% rise in profit compared to a year earlier th. bp's second quarter results missed expectations, but it adjusted net profit coming in at $2.7 billion compared to forecasts of $3.4 billion. the oil giant increased its 2010 oil spill net provisions to $42.2 billion, and the share price is down 2.7%. >>> this is the overall tone on

the part of the borrower dishonesty on the part of the banks and the people that work for the banks that were in charge of making sure people wrote loans and made loans to people yeah. because the bank had very little liability even though that bank made that loan that they knew was very risky where they may be lending one hundred percent of the value where they may be lending it to a person with bad credit where they may be lending it to a person who they haven't even verified their income they were turning around and within thirty days selling that loan to an investor taking away their liability so they made all their fees and their money upfront in originating the loan but then had very little at risk because they were able to package all these loans sell it to investors. and that's that's the reason why they made them that's the reason why the thing went wild during that period and you know it's it's the big mortgages and i'm not not mortgage but the big institutional banks that package the soul of the international investors europe was definitely in impacted by buying these. what we

jpmorgan is the bank? >> no, you want to look at the totality of the businesses, certain businesses are going to slow down with mortgage rates going higher, but as jamie dimon said, other businesses will do quite well and when you take it in the totality, earnings will grow very nicely and we agree with everything that charlie just said and jamie just said, it's good for jpmorgan and it's good for the banking group and it's also very good for the economy. so, our takeaway from today is very upbeat about banks for the remainder of the year and we feel okay about the economy as we progress over the next 6 to 12 months. >> charlie, go ahead. >> the refinancing business in mortgages is going to shrink, but we think new home construction is going to be higher next year and not lower and a bank actually makes more money on a mortgage on a new home than they do on a refinancing. >> charlie, cramer point-blank asked him if wells fargo who shares more significantly today was outmortgages jpmorgan and jamie said yes

billion banks clear the c.l. which is the london clearing bank system which is very serious six billion banks pretty much all of those control what's going on they clear everything in london every day. but basically so you've gotten out of this run so what happens is the fed steps in and says look we rather than expose this whole collapse and an also on top of the whole fear fear of system being in collapse what we'll do is withdraw the provide bullion to the market so borrow it and we're happy to continue to read hypothecate what we've got which is already leverage as you say people are asking for their billion back is already a problem so what they do is they see backwardation they go the only solution that we can see short term is to dump the futures price in other words they provide so much synthetic supply into the paper markets of the comics paper markets that we drop four hundred dollars well here we go full circle four hundred dollars lower where are we again we're exactly at the point where we were when

of the bank of the other one is partially owned by the public so you have publicly owned banks that are taking free money from the bank of england and stead of lending it out there putting it on the positive at the bank of england and getting a free rate of interest on that money and the debt pile by the way is increasing exponentially so the need to print more money and to continue this farce continues best why i say something many would consider a radical lowering interest rates and keeping interest rates low causes deflation it doesn't ovoid deflation because that is not in the skull mark carney the pole dancing hockey puck braindamaged idiot who's now running the bank of england respect more of the same so they also not only cut rates on their savings but they also cut across the bond all their fixed rate bonds other cuts applied to fixed rate bonds last week a four year bond paid two point three percent across all of nationwide brands falling this week for new savers to one point nine percent the change represents a twenty one percent cut in returns and it's causing deflation t

bank of england and all the banks and the u.k. as financial terrorists by trading this term of capital as he hottest but of course he's misapplying that term the banks of course they would need capital reserve requirements to be functioning banks in a free market system you don't want banks involved in ponzi scheme economics like vince cable is proposing like vince cable is perpetrating like vince cable is supporting by saying no we don't want minimum capital requirements for banks we want financial terrorism so this cable now has become financial terrorist umber one used to be george osborne but no vince cable your financial terrorist number one you love that right for stealing my material without attribution that right there is a copyright violation smart well he's comparing them to tap the taliban capital taliban . so basically here's the bank of england and you can look back for three hundred years of their interest rate policy their money their capital policies are looser than they ever been this is the equivalent of a woman

and the british banks and swisher banks. it's a very free flowing market. that they on thursday -- that day on thursday, august 9, 2007, they had to decide what to do but. gathered executive order take on a conference call going. the european habit of taking long august vacations made it tricky to be born different villas and resorts in greece and italy and switzerland. but they were able to get everybody on the phone. they had to decide what to do. they said with a lender of last resort. when banks will not lend to each other we will step in and be the source of funding. essentially what the bank of england did in 1866 for modern age. they decided to great a facility and say we will offer you all the money you want, fixed rate, full allotment. if you need money, coming get it. 49 banks to 49 billion euros that day. same day. across the english channel in london, mervyn king, the bank of england was on vacation. he was going to watch cricket at the kennington oval in south london. he told his staff, don't call me unless it's

barclays royal bank of scotland and the other for the banking criminality and they've all explode in their face so yeah detroit is america's gaza basically and look for that trend to continue they're going to wall that city and just start everyone to death and try to make a few bucks as a prison operator well speaking of the counterfeiting however these are this was counterfeiting payments to the pension fund because it wasn't real it's just debt they were just conjuring up debt putting it into the pension fund and saying they had met their obligations but then what happened is they got into a cycle of having to ever go back and repackage and borrow more money from wall street accumulating c.f. to feed they've paid over five hundred million dollars in the last few years in just fees to wall street for underwriting these new bonds to pay back the old bonds that they have almost defaulted on so they're in a cycle of ever winding bad debts right there like don't want to look at this guy larry summers should run along in the u.k. which is the charge five thousand percent interest rate th

the part of the borrower dishonesty on the part of the banks and the people that work for the banks that were in charge of making sure people wrote loans and made loans to people yeah. because the bank had very little liability even though that bank made that loan that they knew was very risky where they may be lending one hundred percent of the value where they may be lending it to a person with bad credit where they may be lending it to a person who they haven't even verified their income they were turning around and within thirty days selling that loan to an investor taking away their liability so they made all their fees and their money upfront in originating the loan but then had very little at risk because they were able to package all these loans sell it to investors. and that's that's the reason why they made them that's the reason why the thing went wild during that period and you know it's it's the big mortgage not not mortgage but the big institutional banks that package the soul of the international investors europe was definitely impacted by buying these . what were supposed

six billion banks clear the c.l. which is the london clearing bank system which is basically six billion banks pretty much all of those control what's going on they clear everything in london every day but basically so you've got now or this run so what happens is the fed steps in and says look we rather than expose this whole collapse and that and also on top of it the whole fear fear system being in collapse what will do is withdraw the provide bullion to the market so borrow it and we're happy to continue to read hypothecate what we've got which is already leverage as you say people are asking for their bullion bank is already a problem so what they do is they see backwardation they go the only solution that we can see short term is to dump the futures price in other words they provide so much synthetic supply into the paper markets of the comix paper markets that we drop four hundred dollars well here we go full circle four hundred dollars lower where are we again where exactly at the point where we were when a.b

the economy pays or the banks the banks position is save us not the economy so the government says ok we're going to do it we're going to treat america essential like the international monetary fund has treated third world countries for thirty years we're going to impose austerity the way of solving things the only way that the banks think is to treat america like greece to treat it like europe is treated italy to impose austerity and really tighten the screws nobody has found an alternative to impoverishing the economy to pay the banks something has to give so let's talk about what might give here i mean before the bust as asset prices were rising families were taking on more and more debt and we've seen the leveraging since two thousand and eight what's in store for the average person not necessarily the. banks but in terms for the average person. well unemployment is still pretty high the average family is pretty debt ridden now you have student debt rising. a lot of families are drawing down living off credit cards to breakeven they're not able to get mortgage loans so they can't