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back alley entrance one great guest approval rating of michael burst out
michael's now actually of
is with the national journal
uh... michael are you
running their washington office would would
oh unachieved correspondent for the national journal that some of them
better
like that you can
well where where basin washington correctly
parole officer washington office of happiness
five so that un force that we get on your intro with the news we figured of
but i
fear
now mike's also read the book capital offense how life is wise men turn
america's future over a wall street
and of course i love the sport so rejected thank you from so yes i'd like
to us
that we've had paid about twenty percent is on the show who alltel mean
well wasn't deregulation
if we just got government of the business of checking in on wall street
at all
they'd be in great shape
we're delusional
still it is to ask this of course how long will it
uh...
i don't know what went wrong if you could possibly give me a while back to
put people to look a little bit of arguing that the movie twister preachy
spektr accepted heading straight out of touch with reality
uh... what you had over the last twenty years do you know what the wall street
particularly over the character evidence of market with perhaps
the only true locally fair market the arthur truly uncovered and uh... by
uh... play oversight uh... at all or recollections
uh... and we saw what the result was the result was ucla a titanic crash
such proportions as a result of the largest government intervention in the
markets
similar to rescue teams
i think the great depression
so we are those who argue that more deregulation would be better are simply
uh... smoking you know some kind of stuff that uh... it's it's it's
certainly better than i think i ever smoked
cecil another for solicitors
you know
you know extreme right-wingers uh... the guy who argue also argue that
condemnation
was take a blue who is now being nominated to be the head of the olympian
by president obama
he was with citigroup and when bernie sanders awsome he said although i've you
know i don't think deregulation was approximate cause and and i think these
problems existed
before deregulation and i just us is that it's a problem
also that well question of why is president obama continue to pray to god
or sold
monumentally wrong
well like i think it could probably go bomb akshay all again
it's nearly three years in office with that he did not
detailed entertainment as paul volcker want paradigm that that many people
thought he would be the middle of the road
he didn't know it somewhat conservative pragmatist
wid
certain longings to change the world and america
but if you look at what he does rather what he says uh... you know he's taking
very very conservative approach in that has included
picking people who were arrested in the old system women chief among them
larry summers you know it's cheap economic advisor and brightest which we
could help determine step down
uh... was part of this great big regulatory brigade in the nineties uh...
epic battle biologist didn't fully realized
how deep interest ethnic groups uh... this problem really was uh...
as one person told me uh... for the book uh... you know it run for president
victory because i think that's true
thuy n_f_l_ perhaps rather late in the game realizing that impact inspections
were
uh... you know we're pretty insubstantial police but not sufficient
to get
arafat is recession
release dispose recession dot in tokyo's slaughtering
uh... and uh...
and we're we're we're in a situation where there's not a lot of comments
uh... in washington since
the problem is i don't think
he's learned a lesson i mean
this and i say that they said okay towards peter ours a turns out hindsight
i didn't know was a fairly conservative guy comes out of alampi
and in his first call
arm says hey we should new tax cuts for the rich for the next two years which
blew me away so that his replacement jacob loot maybe more conserved
so dialer town which is finally got
with thank you
live but then the guy was a replace another saying it has to be
some sort of you know fortune five hundred soon
or something interceded is obama's to anti-business so what is it received
plenty of talk is advises deceitful intended
you by the right wing
issue just an establishment guy what's that
i think you can establish one guy
i think he's a consummate politician a pragmatist
clue thought he could win over my take command of the center went over some of
the right
uh... would over centrist democrats
many of the big old into wall street
are big business
and um... but you know it as it was good i'll pick you ever want to really uh...
a progressive and uh... you know i think that's one of the great artiste
that comment he made when he was campaigning castelli cut this bill
clinton said well we know the real transformational president ronald reagan
we change the you know change that u_s_ in a way that clinton ever did
uh... we have the irony of that is that we're now period when reaganism should
really be over or when the spirit which markets were simply allowed to run
pretty and i mean financial markets in particular
uh... i don't think necessarily deregulation on the market though is
that bad
but uh... but were in this period wouldn't you know that sort of reaganism
overreached and it needed to come to an end and oklahoma
turned out to be more like bill clinton that ronald reagan on the other side of
a turned out to be much more middle road guy
and uh... but i think that the president we've got you know uh... that juliet i
don't think he happy
everyone keeps a wondering you know what to do what it is progressive so i can i
show up i don't think you have a progressive
plop alright and and look at this point the evidence is clearly on your side so
let's broaden it out a little bit sat with and we're gonna michael hearses
correspondent for the
actual journal
any wrote the book capital offense how washington's weisman
for america's future over a wall street now what you write about is the last
thirty years still
what i have no washington in the last thirty years where we handed over the
wall street what seems system at one oh
they would have allusion is absolutely keeping the people eat understand about
the tragic crash in which you know every major firm working days you're going
under
every c_e_o_ of every wall street uh... firm did not know what was going on at
his own company
and this crash was titanic uh... like nothing we've seen
even including nineteen twenty nine i think
uh... in terms of its dimensions you know there's just didn't have to come in
and yet what have subsided subprime mortgage bubble it took a long time for
these kinds of products to develop a took a long time for these practices to
go so completely unmonitored
uh... that they grew into the trillion to trim two dollars
uh... an infected the whole system and that's exactly what i want to put a long
period of a few decades
in which to start with the reagan revolution which i think whether someone
with a judgment
uh... ill counterrevolution against the government
but that *** tend to over reach counterrevolution overreached
uh... and it got to the point where he could not say supervision o market she
couldn't talk about government about genetic ida became an act of courage to
do so
and that uh... and where the most dangerous thing began it was wouldn't
pick people forgot about the difference in financial markets are crazy financial
markets get
something we have learned in the great depression period
but with regard to bring the sort of free market fundamentalism
uh... blew out the last thirty years and of course was all turbo charge by the
end of the cold war
uh... which she entered the bomb with the idea that government to do anything
well ball
uh... i can't wait to get the collapse of the soviet bloc in the end all of
these uh... command economy
so it was just informed era
octane which hug free market to market thinking
came to have uh... the dominant voice
and where it wall street during this period in franchise by the stinking
began to gather whip and over our economy
and that's what you know that's what we have now we have an economy that is
completely in the parole board three terms of time arrivals for corporations
in terms of compensation structures
none of that has shaved with all of these recorded fixes and none of that
uh... structure has changed and i think that thrilled that you're going forward
so it looks like i have a single in nineteen seventeen ninety e we two
supreme court ceases
that allowed corporations that quote unquote excise that person and write spy
basically they're doing political
and i think that systematically eventually just to go over the system
and
an eventual e they bought the republican party and eventually bought the
democratic party eventually about the justices which was even more important
justice powell before i got on the bench said hey you the best thing to do is the
by the justice and i don't mean with obviously with direct bribes emi with
political contributions with jobs after they retire
etcetera etcetera and with all the money that flowed into the think tanks
that justify the rationalize this whole thing
right certainly that would partner
writes that at this point we get to the point where you
you just said
we didn't really have any change of the system when we had an opportunity to
change
so than those that lead to the conclusion
who were in for another crash that it's the scarring eventually i mean obviously
this is not crashing or early days in sugar cautioned china landing
directory and backup which is that they cannot process but they don't but i
think by intel makes most of its money
they would concede alike practices a all decide that's what you're really what
services are
uh... and not to uh... supplying ah... flows of capital to be held in ventures
new technologies which is what financial supposed to be doing
uh... but the other the caution of the questionnaire
uh... but my point is that without structural change that latch that's
embedded in the law
you know all the way you're going to put yourself in a situation five or ten or
fifteen years from now where this crashes long-forgotten
uh... and uh... the new media began turning one of the problems that we had
during this period
particular dollies quantities experiences who came to wall street
began to adapt these enormously complex product they had no memory of market
failure they had no memory of systemic failure
and um... and they're just grew to be decided to go or it would or doing
we're not going to tell pointed out we're not going to block the speed
companies big banks and they were just
composed this plate at some point you're going to get into that mentality data
where people are gonna carpenter forget
uh... the crash and they're going to forget how much taxpayer money went to
fix it and then that that's really you know the danger
and the danger also is what the u_s_ economy three generates off you know we
need our best how upset we are best minds
not going to manage what he really got to be doing real legendary i got to be
getting into new technologies that are going up
supplied and
company the new jobs
and not
yeah i just creating these crazy products we don't understand that uh...
and that hasn't changed either
eyesight has a long-lasting you know it's not a micro cyril what's happening
offenses now with the national journal
the the big banks are back to the record profits and bonuses as the wrestler
connie continues to stagnate
so uh... i think part of a answer is this because they didn't nearly zero
percent interest rate
and air of finding a way to extract more
or the money while they saw the chance
but
as fire that may be the pages on
loaded a lot of their
hackney of their crap on a slap on the fed to that took about two trillion
dollars in toxic assets
unfairly mainframe act on xy
uh... but the question
is have they loaded enough
that they're okay 'cause somehow the theory
but they're still insolvent that if did they actually foreclose on all the
houses
the dow that would really crash although banks again
so that that crash like a lot sooner than we think
we have a sense of moves right about that
yeah i don't think anyone at the center of the house solvent noted the banks are
card
the moment
uh... clearly you know a lot of those securities on our bed uh...
but a number of them have worked out uh... the uh... the tarp
without the tarp money and uh... but you know i don't i don't think that that's a
great danger and i think the great danger is that
by the end of the economy remains
dominated a by a wall street way of thinking which prevents any kind of time
horizon so that the quarterly
and prevents the thing about long-term employees welfare
repentant thinking about the journey recreation the protection of middle
class
all those things are not possible unless you note you know
we shuffle off we shake or shake off the sort of wall street lamps that that's
really come to work
dominate our way of thinking
and they are some you know the solvency the banks is left of where you can mean
the fact that the bank
stole are running past
like the last political question and i mean desert as i look at
how this that change would come about
how we stopped being restarted extremists letting walsh you run things
what would it take for democrats who
whether it's president obama or anybody else
to actually go in that direction in several further for the ride that the
other thing a losing twenty ten their units
do the same thing to do been doing for thirty years all my god we mess that we
gotta go for the right
so what do you have a great impact on the other direction
well i mean with one thing you need to use person in there
*** level who's going to be utilizing
the right kind of advice i think you need
a progressive thinker likable holger um... in their preparation you know they
said that he doesn't have
unlike do think look i mean it's a foregone conclusion at this point that
the democrats don't like about it
if the republicans do take over the house uh... after november of you know
at least that will make invested in decisions that are made
one of the really i think
uh... you know pathological thing that's going on right now in the politics is
that the republicans are completely cut out of the power equation so i can say
anything they want
you know they can become simply obstruct invaded and they want because there's no
they're not going to be settled by the responsibility for what happened
um... so mad at the very least to take over the house uh... that a lot perhaps
begin the global responsibility
uh... and we may see some more dialogue about the time of what's going to happen
i'm just saying that the only uh... prospect
yeah consumables three miles a news synchronously melisa michael lindsay
and then after that what i was then then we got to rebuild and at that point
the country has the most momentous decision
we will have in our lifetime to me
are we going to go for the right or we're going to go back towards the
center and i don't mean that like a political thing isnt always cited i mean
it in there will be turns that you're talking about are we going to go
more radical extreme free-market lease a fair at center or do we realize the
government has a role and it's supposed to look out for a
yeah no i mean it isn't going to get one thing going right now spending huge
amounts of money on a warrant and cutting taxes at the same time
of what proved to be unsustainable of you know the last eight years uh... you
know certainly
uh... accelerated this product is toward the crash
uh... let's just hope that on the right when they can begin to grapple with you
know the real fallacies
of to blink of markets return travel
yup michael vs booths articles and saw a licensed wiseman turn america's over the
wall street
recheck it out thanks so much for doing us michael if they have represented
brought on it will be right back