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so let's let's get to the issues here first of all
ludlow rhetorical today saying that you're very courage by how things
develop in finance reform
you know i'm fifty fifty with you so tell me why you're encouraged
and you know i office every article that patricia to be getting along route
but what's what's happened is that
that security exchange commission
filed suit against goldberg
and the whole golden story coming to the media for about a week
ordinary people started figuring out what was going on in what was going on
was goldman's business plan
if you create job so that your hedge fund clients confetti against it
and then you sellecca ordinary folks it if it was good stuff
you know people started getting it and what happened was
wall street became kind of radioactive
so you had republican starting to vote for reform this this republican wall
against any cutter for start breaking down
because even republicans don't want to seem like a shells for wall street
and as a result
you know you had a bunch of amendments that were not given any chance of
passage
that made it to the deal
vel franklin
comes out of nowhere with an amendment that cleans up credit rating agencies
and there's a much tougher amendment now onto revisions
this is not going to be uh... over with this legislation at the roosevelt seven
years
to put some constraints on wall street but public opinion is starting to turn
to have as you were saying regarding the demonstrations
against the package
what is also really a pleasure to see if it's a key parties are no longer
monopolizing
public indignation
progress which is starting to articulate
protest and it's about time still you made a good point about one republican
seem a little spooked at this point because you're right i mean it
i was surprises that about ten of 'em joined frank is amendment which is a
very positive
bernie sanders amendment passes ninety six the nothing to all of the fed
hyderabad largely i'll take it lenin ron
i and and that adds to a bob bennett so tell us what why bob bennett plays into
the city
welp bob bennett
usurping all traditional conservative republican senator from utah
hub in all the way
when no then treasury secretary hank paulson pushes treasury secretary comes
before congress and said role is coming to an end
unless we bail out the big bags with no conditions no questions asked
with the so-called tarp legislation
dental trick art
and so uh... in the nominating convention but really working with that
wall street's not real popular at utah
and he came in uh... search so he does need to get a place on the ballot
so it's very interesting i mean here's bernie sanders the most lefty member of
the senate
garbage bill was originally not given a snowball's chance
and then they realized he had the votes and they persuaded to tone it down a
little bit
uh... so that was a one time allotted
uh... and it was good
well i think is a really important thing to oregon and that is
who's the head is bailing out i mean the fed's conduct of monetary policy that
should not be politicized
but when the ferry spilling out despondent got that one in
you don't know what the terms are
that needs to be audited ninety-eight trip
really impressive
and i tell you that the tide is trying to track
what was disappointing was that you can really see the precedent lead very much
and a couple of these things uh... tighter
his treasury secretary was on the wrong side
so we got a lot where the gulf but it's moving to the right direction white so
order i would rather use co-founder co-editor of american prospect in his
new book is a presidency in peril
i would be the some of the downside is so it now as things are going forward
uh... we also take couple steps back it turns out that that major
uh... during his reform as a need johnnie loophole it'd which is that all
by the way you don't actually after porter swaps and
if you don't there's actually no penalty and in fact people get to decide whether
you should or shouldn't is this group called a futures commissions merchant
and they are on by the largest banks so well their goes riveted reform and then
the endeavor to dorgan was put on a madman there i'm not sure how it's doing
this week we're gonna find out
this is hey you know what no naked credit default swaps these alongside
bats
and it we're not sure it's even going to get an error
there's a big fight over over which amendments come to the poor and you got
a kick and scream ill a frank hinted to get your amendment
so we had a check
this is uh... content is not the uh...
uh... become pretty trick shots
did not take the act it's not even the beginning of the end but it's clear to
the beginning
and uh... we're making a lot but it was your into something of interest
uh...
the important thing about
the uh... provisions
client blanche lincoln kind of the bill
is that he has basically said look
if you want to play this jury of his game
you play with your own money you don't play it with uh... taxpayer guaranteed
deposits you don't get to be a pack
but as f_d_i_c_ insurance
and also get too
traded derivatives
so even though there are a few loopholes in it
the idea that has pushed the taxpayer risk that's that's gonna submit this
passage
so i'll be delighted to be plus i think it's pretty good
but it's so much but
than where we were two weeks ago that's what's a little bit encouraging it
i think this is someone who has written
blistering elite critical book
about how obama has been much too much in the pocket wall street
and again the leadership here is coming from people like dorgan franken
and lincoln and uh... progressive members of congress
obama
uh... to the extent that guy can't speak for him on the wrong side part of the
time he's got a cartoon character
who's seen the light
the chief commodity that you know the chief derivatives regulator
so the administration's wilbert split on this
obd but it's moving to the right direction and it damn well better
because you could touch him
the key parties are going to articulate all the economic anxiety all countries
gotta move to the right
had which has been a roosevelt moment for progressive reform of the msc
watered
and the democrats will just
taketh chopped this fault so
the stakes could not be higher
before we get the deaths of his i think that's very important who also wrote
about that
and is a shell game being played out what one last note of pessimism for me
ap i'd think that if we find out
what to do remiss bats actually are
and we say oh i will now you've got a part of the capital for those bats
off i think the entire banking system is going to collapse
so they're not going to allow that
and so that's why i'm alternately pessimistic
because they don't have they leveraged opt for the help states all
lol bulk it's on the
make a credit default swaps they're not they don't actually have the money
so hopefully if these legislation passes
that's real reform
i think it whole thing caves in on itself because it's going to any point
is just a matter of when he gets revealed so that's why i don't think the
powers that be target allow that to happen
well i a career a quote unquote
uh... but what's interesting
in terms of what you just said
you know thirty years ago highs banks make money
people deposited savings
and they got x_ amount of interest and then the banks looked around for who was
uh... reliable credit risk
and a chart was about interest on the loan
and does the property when it is a banker's pocket was a distraction why
system was never put at risk and backers were careful about leland
with a lot of money to
along come the wiseguy
and they decide they don't want to be like hedge funds that although one of
the like edward
but you know
if we can get the banking system back to what it was
thirty years ago it was almost like a public utility that they used to joke
there was three six three rules you know
you paid favors
three percent you know that the money at six percent you're on the golf course by
three
we needed to rest its implication of the banking system so that
if you want to gamble kota las vegas but don't gamble with taxpayers' money
and if you do that
the banking system of serve the rest of the economy
impeccable make a decent living they won't make an exorbitant living
so i think it's possible that the banking system
*** viable have served the rest of the economy
but that doesn't play these gambling games i think it's doubly basel my lease
is i think it's going to happen
after the card banking system collapsed scheme so we'll see how that turns out
carpeting or a car accident only propped up accidentally taxpayer
that's exactly right that's almost but that's what our disgraceful about the
way the administration plane ticket
back in in your dog
when the whole banking system was dependent on their heads
the government had the leverage to pass real reform
and the government said that i will do reform later where or what will do now
is a problem up
and when it when it really
hambone
you know where they want him
that's when they should have insisted on reform that would not have dared to send
a lobbyist adam
watch them try in that defeated
i could buy couldn't possibly agree more so real quick alas this year
this deficit commission their seo don't worry we gotta get a budget under
control and we well and that and that should be priority number one you know i
i want to leave the priority in the jobs bill aside for a second as we have
limited time or talk about what the doubts a commission might do and why you
think it's okay
electronic
uh... talk about putting the cart before the course
you know we don't have a recovery that we get ten percent unemployment
we've got
six million homes are likely going to for closure this year
and he talked about balancing the budget uh... talking about cutting social
security
they're talking about and evaluate tax back in the middle class
i mean it's almost like they want to commit political suicide as well as
economic suicide
get a recovery going first
spend enough public money
to put people back to work
and then you get the economy growing again you get a revenues coming in again
balancing the budget won't be so difficult to if she said everybody
debtor's prison
you're going to balance the budget at a lower level of economic output
and and the whole thing is more arduous so
it you know on the one hand the administration's been captured by the
bankers on the other hand it could captured by the capital rocks
a lot of innocent people like pete peterson
and if if they get whacked in november
because we don't have a job so recovery if their own fault for embracing this
kind of garbage answerable to none of us you know before him on this right i mean
they are nahi
year raise taxes cut social security
i think and the negative our guests right
welder trip and i can try commercial
republicans and democrats had a secret plan
to cut your social security and raise your taxes
the republicans are not going to find out of this anyway but in the meantime
at the effective paralyze the administration's ability to it needs to
be done which is to spend more money and jobs
yeah yeah the robert kuttner co-founder and uh... editor of the americas liked
and author of a presidency in peril
and so much for your starry