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uh... i just read and column by jeffrey sachs he's a professor of economics at
columbia university
and it is devastating it's game set match it's all the a_h_ despite me would
say it's all lock
of the consequence of plan
is nothing but highway robbery
and white uh... professor
black set on the show yesterday is exactly right
it will be the greatest looting of the american people
in history
continues down the fact that it's on and there is no indication that it is going
anywhere but that track
he explains that the some of the large banks might be allowed to participate
in the pot program
where people are buying their assets
in a way they would be buying their onassis
now it's possible that they could do this in a couple of different ways
of course the treasures you say hello citibank you can buy your own answers
otherwise with census program yet that spots right
but they could set up dummy corporations
where they can buy their assets
of their own bank
or naked strike deals with other banks that are in trouble u by my assets are
by your s
anything without
why does that lead to this thing being over
okay here's what
let's say you got a million dollars
and
they say well look this asset was worth a million dollars
we don't really know what it's worth now
and they go into this dating right
and uh... let's say citigroup
let's together as one of the banks
this i think we're set up
corporation v scan of a dummy corporation
they're gonna buy that asset for a million dollars and look at citi group
that is a million dollars back there in good shape
haha about groupie but since they're the same company in essence
well they gonna lose a million dollars right
wrong
is the american taxpayer is putting up mines in forty five thousand
ninety two and a half percent according to latest plant
live corporation be which does he really in that example is this what it could be
a real corporation all it was a seven and a half percent
so that when the citigroup if it had these on both these companies would lose
seventy five thousand dollars from company b
but would make and million dollars
from company yet
and who makes up the difference
you an idea american taxpayer
if these companies or in any way shape or form allowed to participate
in the program that's supposed to rescue them
they will have all this item in the world
the pay themselves
as high rate as possible
is that's real money coming from the american taxpayer
and if they lose their seven-and-a-half percent
but they put in for the toxic asset plan
who cares
they just made ninety two and a half percent
it was bad enough
when it was other private investors
that we're getting a free ride and getting a hundred amp percent who fifty
percent return
on seven and a half percent investment okay
but what is there
same companies
well then obviously they did a quick crank up the rates
and pay themselves exorbitant
fees for their own assets
now i know now
this is an
absolute
bank robbery
okay
and
nightmare and summer sink is a good idea and they're the ones who came up with it
so obviously they think it's a good idea
then
there on the wrong team and
they about if they can understand the does it involve any
most of what the american taxpayer
either they're really dumb
or they're just not on our side
they don't give a damn about the taxpayer
does their priority number one is protective banks
the banks are not the country
they are not the economy
the banks artist
and number of corporation is run by a certain number of initials though i know
i don't like your summers are friends with
and i just friends
summers me
five point two
million dollars last year for one of these headphones
shiite would he be interested in protecting the status quo residents
for the people receiving chocolate on the difference with the people receiving
far bank
he's received
hundreds of thousands of dollars
uh... in speech when he goes and gives a speech at goldman sachs hanan
over two hundred thousand dollars
does that create a perverse incentive system
angola's accesskeys genius of
larry summers of so much the will pay to three hundred thousand also thinks know
their buying and
okay
and now they're investing is paying off in states i'm not saying that your
summers are correct
but it is
at although that case can be made
given our much money summers is made off the system
but that aside
are are they invested in this system
and continue at as it is
actually undoubtedly
and that is exactly where there ought not to say this
for couple weeks now
and harry houdini road excellent article on is on her website have imposed
uh... saying basically the same thing
their priorities are wrong
they think the and all
it's she compared to
the oldest robbers were convinced
that there are sandra while they're on earth
so they had to
twisted stretching try to make every assumption
based on the central assumption
that everything goes on earth
bc the biggest it doesn't
thickness
here's the wrong assumption is
we have to preserve the beds no matter what
we don't have to preserve these banks
anukunta absolute robert taxpayer to do it now
that's one aspect of it and we'll try to get jeffrey sachs uh... on the show
to talk about it because insists
so painful
now speaking of getting jeffrey sachs on the show
that smile a question
i haven't seen the rivals
i thought of what was going to bring in all kinds of different venue
what the treasury department
there's nothing but the same opinion
guide has a sampling of some of the say the president
now they got axelrod talking like he's got the same opinion
is that in the treasury department
for a brief period of time is actually arguing in favor the taxpayer within all
bomb in the future
uh... the citations
uh... weekend he was out there look-alike i've got your summer school
whereas the diversity of opinion
you bring in somebody who actually has a
it's not like there isn't enough of that is that i did not qualified signals have
basically too little bells
herman has a nobel a bit black youths of on the s_ and l_ crisis
and an righted the ship broke
that american government-backed then why do you bring in william blacker
teams galbraith or statements or
it'll be
you kind of agrees with that your plan
has a slightly different opinion
what is definitely the treasury department
will make the same
while the head thing
and i've read other economists
the support nightmare
i don't think the even believe it get case makes
no sense
it is totally illogical
and at the bottom line even for those canisters
he had let me know the taxpayers gonna get rob
but it'll be worth it because we think that we hold if the banks are actually
all right
which is very beautiful sunset does not like that
if the banks are actually not insolvent
then the economy will recover
now that's not rational man
so caches one question
can all but i'm not quite
one economist
debris inside his administration
that disagrees with writers summers
is there and know what the whole country
because we've read at least three of them on the show
but i do believe ten others
is that no one did obama could find
in his team of rivals with a different opinion
this is how you know what maybe we should
fino receivership maybe we should go good bank bad back
but what we shouldn't do is this
home perfect bailout plan
where the american taxpayer gets rotblat
just so we can preserve the day and that
helmet on them
bahama decatur one separate
i feel like this is
before their raquo everybody's got groups think
and give
you know criminalistic let's organise or any of these guys they don't agree
knocked out throughout uh... there were their french
now we can't have it job chapter of the team eternity wave the flag wave the
flag right
hello i'm back in a way of the flight
and i'm i think this toxic asset plan of writers
is just as long as the rock war
i know they're at war had more devastating consequences because so many
people got killed so i'm not comparing it in that sense but i'm saying is
forced is a strategy right or wrong
iraq war as a strategy was a hundred percent lol
this toxic asset plan
is a hundred percent wrong
and they are smart people that are telling you that it's wrong if i'd
almost all of them a great
all the topic on this in the country
but the government won't listen
and a lot of cases the new york listen
on another subject
indonesia magazine i just read an article about how
of actors on the right track now
because after he announces plan
wall street loved it
really i wonder why
the finest companies felt much better about the plan
i bet they did
so that all of a sudden the major media is writing
guide is back on track
that there's a good guy
f date although dow went up a little bit
uh... ok watchers honesty
and even some republicans are present
as maurice i number one by the way
the debate
and so now
if u conventional wisdom
open up any major
magazine center
uh... whether it's newsweek or time of the major papers
and you'll see that the conventional wisdom is no guidance on the right track
when ironically he's now more on the wrong track
then he ever what's
so
here we go again
here we go again