Matt Taibbi talks the Grand Financial Illusion

it’s sts kid is a pleasure as always welcome uh… back to the
program matt maybe uh… rolling stone a magazine welcome are they going to have always go well
how are you doing good didn’t get export and it had to be
back on your show in wikipedia know about and uh… i know how you guys released
analyzing them we know what happens over that way or any idea uh… so head there are so there’s a
couple of things i want to uh… talk to you about let’s let’s start with um… this uh… audit the fed bill uh… that passed the house uh… we
both know that it’s not going to go anywhere of the senate’s not gonna pass
it but let’s just for a moment in and we should say that it it passed with uh… almost entirely republican support i think there was one
republican who joined of bout half of the democratic caucus in
voting against it um… let’s talk about the value of of this
week it was a one-time setup on it in the past yes uh… yeah right exactly dies the inspired by by ron paul and
then bernie centers and dumb i think aswell gracing the in
the house to was a great idea and that was a part of uh… dot frank
it was the one time uh… audit which was as far as i can tell not problematic not earth-shattering in
terms of you know uh… destabilizing error on are our monetary system uh… and it was was helpful to get a
sense of what they did during developments yet to be uh… via made me think about that that thing
was that even though they’re worth some pretty incredible revelations out of
that audit uh… proved not to be all that harmful to the fat because whether the media decreed in paying
attention to it so even though there was an incredible things like you know the fact that that
the fed id heather you’re giving that sixteen
trillion dollars in emergency landing uh… since development aid and have
been giving you-know-who and to everybody from banks
in the middle east to bow out you know the wives uh… c_e_o_’s of uh… big wall street banks um… yahoo a detective didn’t really
leave the stain on the phone the fed because nobody really covered it get that last one i had not even heard
until all uh… reading about uh… you know sort of stories around uh…
this uh… this bill with tell us that std gable owns two wives of of owners of banks to go out
and shop yeah uh… simple well not not begrudge
shop uh… but uh… they they were uh… it was
um… i actually wrote the story and i can’t even remember it would they would
be it was the wife of uh… and uh… the wilds of a couple of morgan stanley
executive and what they they had a hedge fund uh… who and they’ve been qualified or a program
called pal um… covered interestingly entitlement
in washington when this the starter circulating uh… the they were nicknamed patel milt that and uh… and uh… but they the
two women that uh… two hundred twenty million dollar uh… loan from the said uh… potentially acted middleman or uh… consider merle and then getting it a lot of its complicated or what the fed
really was dealing with a lot of these bela programs with giving free money to bank and asking them to stimulate the economy
by provide by using that money to uh… they don’t provide auto loan goes to
goan uh… so that people like this would get
the money of the role in the middle and that i thought for a car loan at you
know six or whatever and they’d make free money and polka some of the people
who are on the clips were uh… extraordinary uh… not not just a few
pallets wise but uh… it if you remember the name tena alberta that name ring a bell teo if you would tell you is the guy who
uh… who is check ended up in the account of the watergate burglars uh… here is the carrier character and
all the president mary he got a loan through this program that almost
everybody out of there were there was so many people who uh… i garland but
again it didn’t really make a dent on in the fed after all this came out and and and of course the theory was and
this has been sort of i mean this is almost certain of the the
paradigm the that uh… that we’ve seen since the beginning of
this crisis give free money to the banks uh… so that they can loan it out and
make money off it and of the problem with that is is that
when you have an economy that is uh… in the diksha centrally there’s people people don’t want to go
out and take out loans to buy crap because i uh… because they’re worried
about the debt that there are any carrying and they don’t they’re not if
they’re afraid that they’re not gonna be able to pay it off later so what happens
is the banks turnaround they say well and you know we could try and alone people for cars
that were for scissor what not but uh… uh… if the
demands out there and why take the risk but we can just turn around with this
free money by treasury bills essentially right and
uh… know that the the treasury’s going to pay it off and then we make our you know what i
guess three percent of the time or whatever it was uh… yeah yeah that that’s one thing
more than naturally what leverage up the money you know under two hundred arnd uh… and they make check eric leveraged
that on derivatives which can lead to these catastrophic losses i think that we just
saw with the j_p_ morgan anything the indicator outcome is bad if not what
intended i mean what contend it is that this post to stimulate the economy uh… and yet uh… just the opt for
that and so uh… you know i mean that’s something the people i think you know
uh… we need to make clear for for people is that the uh… the agenda erratically was not to justin rich in
the banks it was we’re going to help the economy of the
banks will ’em you know where we are going to be incentivize in some way to
help the economy rather than for instance in the original tarp just
going and um… uh… paying money uh… or or you know loaning money yet
zero percent interest and if you’re gonna do it for the banks why not do it
for homeowners and very off the banks that way uh… and and make sure that money goes
to the use that ostensibly right above federal wants it
to go towards uh… deal averaging people in some way and yet maria thumbing their well
prepared to do that would be well the government could never administer all
these alone you know we didn’t need to contract out without and find all these
people delay and do so we should get a card and that that
does make some kind of fence but the problem is we didn’t know we didn’t
impose any condition that all and we could be programs we’ve missed a uh… you put your money for student
loans but you know you could only charge etc uh… so right you know we give the
money for nothing image or didn’t you know full market raped and into the you
know that that’s the problem i think you know i haven’t read the book yet but i
think there’s a lot of uh… uh… in brodsky’s book uh… a lot of
that comes out where they’re sort of there seems to be i don’t know if some type of naive
attain or just sort of like uh… you know which is not that we don’t
wanna in any way impinge upon bankers uh… you know uh… rights you know freedoms with our money red uh… inside for
uh… because that would be you know anti-american uh… reckless to infringe upon their
and then what do you think like you know one of the things that i’ve seen uh…
end and let me ask you this in terms of helping the economy um… people disagree as to whether or not the
fed actually has anymore ability to to help the economy um… the the arguments that the they do have
the ability uh… center around doing as far as i can tell two big
things one is setting a higher inflation target and to his instead of you know you
getting these uh… here you know you’re talking about
opening up the uh… discount window again for banks why not open it up for or cities and states um… who need to borrow money and need
to uh… you know in you when you book when you left that
money to the states you know they’re going to spend it on stuff that’s going to stimulate the
economy and sometimes uh… because they don’t have the ability to go in and by derivatives sir right here in america
and just be the business that there and uh… give me your sense of the what
what’s your take on top and what the fed theoretically could do if you think they
could do anything at this point well told some of the people of above my
pay grade i mean i think uh… we’ve actually had a dinner last night was a
worldwide and while st the economist who were kind of heatedly
disgusting that’s very topic of what is the fed’s roll in you know that the general confessed
entrances that we’re in a situation right now where
there’s really only two with this so much dead um… do that is being held by all the
major industrialized countries uh… that there is really only the long weekend outcomes and that could i could possibly solved the
problem with that problem one of the fault in the other one is uh… inflation and in the meantime the way that were so they’re moving if the problem into the future not having to deal with
the right now is by three and mostly creating money uh… through central
banking mechanistic like the fed and just we’re pumping into the fragile
blood dream to to continually stave off the debt
problem uh… and you know that we could put the
date could be at over whether that’s appropriate or a mere uh… again
i think this is a little bit above my my uh… mike my pay grade your what what happens if the if the fed
totally stopped uh… you know the pumping money into
the economy and and and we are but i have a default is that a good outcome uh… but is that we’ve got a good
outcome for them to continue to do this as well because that that eventually get
a little inflationary mess i don’t know i don’t know the answer to
that question the clear clearly the one thing is audiences that it’s all
being held together by cheap money from defendant by a grant from federal bank
now when they say about that when you say debt in this context you’re
talking about private debt private and public that i mean the um… both thing for me now if you if you look
at uh… look specially private debt i mean if
you if you look at the the the biggest banks in america the
department or the big too big to fail bags um… they probably have he took the
american one they probably have three hundred and fifty or four hundred
trillion dollars of with uh… wrapped up in derivative not
backed up by uh… you know only about seven or eight trillion dollars in deposit so um… the real backing for all of
that is is at the federal bag i mean the food
seem to be the idea and put to leave that up any of those banks collapses that will
be built up by the fed is sorter what keeps everybody
from panicking and running for the exit that i guess it was with my what my
understanding of the issue but uh… clearly you know we had
quantitative easing juan we had quite the leading to whereas everybody expects
that there’s going to be quietly and another another round of hwy uh… coming maybe the stroller this
winter um… and that is what patching the the whole and
and and preventing uh… the debt problem for me coming
overwhelming and uh… the uh… the the ad i know the i think the the notion that mean the the
the thing that pattern the thing that strikes me as a sort of this notion that
somehow the the federal just you know i mean it’s like the the uh… as if it’s sir div div the fed
doesn’t is is certified isb of blind to certain
the things that are happening in the economy and that i think i ha ha i said i’d certainly believe
that we could uh… due for some inflation and there’s no reason i can
see why the fed wouldn’t uh… loan to cities and states at this point uh…
because you know what if you think it’s going to do it in the banks uh… why not yet know i got a complete
i completely agree if we’re prepared to do this if recovered a bit more we’ve you create money in and your own uh… put it out into the economy ivan ality
any uh… any reason why a we have to have wall street middleman taking the bulk of it uh… at
the kite and her friend and turn interning at the profit which is the
most wasteful waited too deal with that money and it doesn’t make
any time for all of a duplicate the way we uh… handle uh… our own sovereign
debt you know we we lend money to banks at zero and then they go ahead uh…
turn around and by people that three percent or whatever and that sport just giving money the bank to what
we could just be landing straight from the fed to the federal
government exposed but uh… if it doesn’t make a defense you’re
right and a more we talk about those leverage
when that type of leverage this a good again was uh… one of the uh… sort of
the i guess one of the things that people
really crying for was just there’s a way to sort of control all a beast too big to fail banks from
uh… leveraging uh… the from leveraging that their the the capital they have atm or whatever thirty to one ratios and
that is the same usually do a twelve to one and in the body amazing thing is uh… sandy of well he dismisses the head while yet uh… comes out yesterday yaar was a two days ago and says yeah that’s what we should def we should
do uh… asking byron scott i thought i would having apoplectic when
i found that i i really did when and where you’re prepared well he d
basically created too big to fail uh… by milk recreating the uh… the citigroup
merger back in the nineties which is gay people don’t remember he he
actively did this before with a legal they they did that for the merger uh… before glass legal have been
repealed um… at a glass legal prevented the merger of insurance
companies investment banker and commercial bank uh… and they went ahead and they’ve paid took citigroup in travelers and solomon
smith barney emerged in any way uh… and then got an act of congress too to ratify it sort of a you know
retroactively uh… and that we took a rare thing it bad for america and we can
break up the biblical but look at what do people here you dinner last night have to say about
that and they do people edges ras ignores them and the littlest them anymore i mean
what what what they said o’leary birmingham people were rolling
with laughter over the whole thing in fact gradacac who have a couple people
were pulling up where i plugged into the cuing it up and watching it over and
over again prepare prepare for comic value within the funny thing about that clip
if you watch it he’s being interviewed by p nbsp p anything that whole thing about uh… we
have to break up to be to fill baghdad for everybody and and uh… you know you
can’t c_n_b_c_ the interviewers is would like a really done you know did look at
the time you create too big to fail in ineed totally deprived by that question
mike he hadn’t even anticipated it and i any he basically said that um… he didn’t have any responsibility
for that that uh… that the barriers between commercial banking and
investment banking have been broken long before uh… he did that merger and so what has
problem implied that that stuff though the funnier part of a right they
so diluted i mean he i think i i i read somewhere that in his
memoirs you said it should be the uh… what was that uh… the gramm leach was
that was that was a big grant ramming through wirral and uh… i mean i guess you know i i’ll talk to
people who say that uh… glass steagle was sort of the lastly msc and of of that and that the
had been solely compromised over the years that were then but uh… uh… i bet that’s pretty it’s pretty
stunning just sort of how divorced uh… from that reality odd there was a a comic in boston twenty years ago at a joke to effective
like it installing some story about the rolling
stones where uh… keith richards you know had to tell some
of his uh… rolling stone by these two uh… calm down and then the punch line
was when keith richards tells you to to back off you know you got a problem
at this event at the letter i think of when i saw that uh… that that that he’d come out said
that a big in and he’s bright with we do have a tremendous problems but um… let so i want to talk about
his eyes and saw you uh… you wrote about uh… octopus and um… anytime a
of friend of gays in he been telling me this story that he was writing uh… di was on the program a couple
weeks ago couple fridays ago are talking about the
book and actually while i was interviewing him sam israel emailed him having seen him
on uh… on c_b_s_ this morning from prison and i was like to do a great i think
that uh… uh… started off it was funny cuz you started
your your uh… you post about it saying that our courses can be made into a
movie and i was the first thing i said to be acid how can i insert myself
between you know in hollywood right now uh… regarding the killing off of this
uh… because this thing is uh… it really is an amazing story and uh… it’s funny because there are basically two parts to this to
this book maybe one-third two-thirds one-third inserting ups and israel has
he earns about wall street and then the who may be the second half
of the book is how he gets sort of in nashville in this incredible i don’t uh… i thought it was all condo
or or con man was being confidence self and it was like uh… thrice over um… and you really are i love that uh… the the part about the
con just because i uh… spent so much time
responding to nigerian four one nine now uh… let you know uh… you know scams uh… right and and that’s what this
uphold thing was into some type of massive scale but that was you had a great point about the first
part about talk about that because you hit the nail on the head as to why
sam israel fell for this greater con yeah i didn’t hear the story really
would put a three ac play recon you you you worked on wall three annual aren’t
out all word then he decided you want to become big darman co incredible book background we become
prohibit make pretty made up because c you start the hedge fund and the
experience a huge losses and you decide to lie about them that lead in but creating upon beef team where he continually inventing return uh… that don’t really exist in that
attract more customers in before you know you’ve got a quarter million dollar
hedge fund buddy fleck incredibly underwater and
applauded a blow-up mentally uh… but than the last part of it if you’ve got
that he thought he was one of the apartment on wall street uh… and what the couple but that he himself get sucked into this world where a bunch of conspiracy
theorist convention that there is the uh… that uh… bond market for the
utila rocked out in the building birds or whoever uh… who are you know it
reading in bed fifty percent coupon bonds something
like that where they they’re making basically free money hand over fifty but they also mean that with those
profits they also very scrupulously divert i guess certain percentage of
those profits to uh… like n dot world hunger and
alienated urinary futher with the u_s_ i doubt it in saying that it’s it’s crazy
and then put the but what the whole area at the voters it the resentment that israel follow through this because he
grew up on wall three and he thought that basically all paltry there’s one china inflation
trading in front-running factory uh… uh… ever be he was working for was was gaming the system in one way or
another uh… and and i think that that the thing that really turned in flaky
was when he won the crash a beefed-up happened and wall street should have
been wiped out and instead the fed jump in between
backstop um… all wall three an all-out everybody that kind of borrow
their way out of their problems and he he in his mind what he what he what he
created with the food that situation where uh… you have a whole group of people
criminal from the one hand who are just routinely on a day-to-day basis stealing doreen potter trading and
that’s all enabled by the federal government and so why do why wouldn’t there be secret cobol of conspiratorial to our you know it dealing in the secret bond market and
that that that the procrastinating keith you wouldn’t have believed in the story
of it hadn’t even gotten to be a lot of evidence hidden that that made it plausible you know that that that i have
a little of that part of it that you had that part is is just to stunning and and then the that there’s a there’s another sort
of concurrent it’s not quite a scam but it really does
speak to and and i was reading that book at the same time i was reading at hays
his book and the twilight of the elites was talking about how the elites uh… how are corrupting
themself als and while you’ve got this going on there is a sort of a third player in
this which is john ellis george bush’s cousin who has got his own v_c_ e uh… company in east looking worries
the start-ups in easley he’s basically leached onto sam israel
who is living in donald trump house like a twenty five thousand dollar-a-month
house annie’s list onto this guy because uh… israel is like a huge t uh… surf
feeding money into these saving any actually carries messages from sam israel more less to the white
house uh… thirty holding to that guy’s money
doesn’t want to say at one point like you’re completely back craft crazy uh… fiftieth it excessive eighties i’d it’s just a such as scary
sort of view into what is actually going on and in these quarters and i don’t
know that it was really that much of an anomaly note with a bit again the area that that
will cool amazing about the whole saying is that everywhere you look at what you just saw
people acting in a predatory matter anybody anybody but any kind information
with trading against it instantaneously and one e song leave the behavior of that too big to fail bank you know in the crisis uh… you know
the in the crisis here’s or and also in the in the internet stock bubble years uh… he knew that uh… now these big
companies illegal man from the in the morning family that they were
effectively gigantic info trading front-running
operation jeff whiteley he would have been thinking that the
duration uh… uh… it equiped spelled out in input and obvious way in the book
that but the whole places corrupt um… that i think it would be that that
that’s the part that i think there would be really shocking for most people i
mean the story its up with a creepy part with it so unbelievably it’s incredible and
it’ll be really entertaining for people but that part of it and is communion in
part cried i mean i you know i remember uh… was sometime after maybe wasn’t it sells them uh… had gone to uh… i was at a
wedding and uh… with someone i knew ignite into a family
with just a tremendous amount of wealth and so being completely ah… uh… sir without any sort of uh… financial
savvy whatsoever i had an apartment at that time from back my sitcom days and uh… i was like you know talking to people are saying that you
know if there’s soma goes into macy’s at that time it
was you know certainly uh… were concerns and businesses blows
themselves up uh… min won’t every uh… va apartment two and and in new york ny worthless and all these people sitting have hitting
the several government never let all that wealth disappear housing haha anyway
we’re talking about so referenced understanding that is the that the wealthy losing their wealth is
completely back stop by the government whereas of um… being completely ravaged uh… i
sat on a panel with the chris hedges last night we were talking uh… about
his book where he goes into these sort of what he calls sacrifice owns four of
the most sort of destitute places in the country one of
them being camden new jersey uh… not far from where you are now and it’s
just the those places have just been
completely obliterated and sprayed uh… there’s no there’s no one coming to their rescue of
course and uh… so uh… i i i found the whole
thing just sort of stunning is your i mean when you sit down with these uh… wall
street types id are very what is there a sense about that the whole thing is read them and we
saw story that came out i think a couple days after uh… of the octopus came out about front-running that was happening with uh… hedge funds denning sort of awaken in i dot from
institutional analysts uh… as to whether or not they’re going
to revise their uh… their analysts reports upper deck on you
know was all sort of like heyy any surprises that we should be uh… you
know don’t tell me anything uh… you know specific but n_e_a_’s surprises cough once wrote pop coughed twice for down and where exactly anger a picnic uh…
during a bear market bhagat barrett no i i think most people on wall three
have no lucien about the the systematically about a macro
level people think that there’s still are some real that inmate you know if
you do in a you know to you by gold to buy
treasuries you didn’t do that but uh… certainly you know stocks inequities union even
interest rate changes in the fed every needed if you’ll notice too though is
like a flurry of activity just before uh… interest rate changes are
announced you notice the word of getting out somehow uh… empathy for trading
again that i’ve had people call me i work for um… little brokerages inmates say that you
know a big bank will call them uh… at the end of the trading day and fail we
wanna buy floridians or we’d or corner whatever and little placed the order for
the bank and then two minutes later a billion dollars whole of that will
bubble you know go on the market because that same bank just made it executed a
trade order for you know a pension fund in california or whatever it is there’d
be another fire anger on quiet but if it is rampant any everybody knows
that it’s completely dirty uh… and he’ll pick ticket in the the
regulators were so poorly over maps with the stuff they’re just are enough of
them and the schemes are just too clever for them attached uh… it’s crazy solutions is or is it
simply like you know this is just the lynch pin of
society and its at its heart uh… our financial system is you know all this
sort of but if enough people just sort of play
along with it that’s the way it functions i mean is that certainly isn’t
like the lion born yeah i mean is is there a do they all does it mean everybody just says like a
lucky you know this is the way that humanness interact with each other you
know uh… when two people sit down at a table they look across he’s just
basically to projections of reality that a meeting each other said don’t
necessarily have anything to do with the the realities that are actually sitting
there yet uh… i i i i think that that the argument that you get from a
lot of these companies whenever they’re cute of wrongdoing either the term
sophisticated investors a lot which is is it’s basically a code four the people that we deal with no there
were output screw them you know uh… soho um… when we did
screw them we couldn’t eh… we shouldn’t be you know accuse of any
wrongdoing because everybody in this world have their eyes wide open and we
all know that we’re all trying to stab each other in the back and that’s gotta
be added to the wall street now did that you know uh… would goldman for example
and goldman was privately trashing and uh… it you know directed more to bacteria that
is uh… in two thousand nine that they
were tried on load on everybody uh… uh… and then they were turning around
and you know writing failed booklets saying how great they
were uh… when it when they got caught for that they were elected haley
and with what you what do you expect world growing up here hey kiddo uh…
the average what do you think we’re trying to be here not make money and and
that that can be added to the eradicated
narcotics stop until this is nothing you can regulate away at the past you did it changes the attitude of people for that
took no longer honorable to do that uh… uh… but that had to put it up
happening i mean that’s just got to come or culturally right i mean you exactly i mean why why
don’t you mona weighty you do don’t i mean it’s not going to get the law
horror you’re gonna get carded you just don’t do it patent-pending and
that’s what’s gonna happen with these people they got it they got a recap
point interesting and uh… agree and lastly you know i know you
commented on friedman’s piece uh… yes they which was sort of really a uh… a tort of arts
entirely different methods uh… for for a living ’cause that was uh… and i don’t know if you’ve
listened to that uh… that podcast that going greenwald seem to find it from the
uh… an interview that he did he know in march jeanette and new zealand and it’s really it’s its uh… i would check it out he’s got
opposes lani really is uh… unbelievable because first off you’ve got this new zealand woman who sounds like she’s
in her seventies uh… and cheese maybe sixties which is a older woman very sort of like it benign sounded black she’s dogging him
and friedman is losing and uh… bluff by the end he has to say like i don’t know what neoliberal economics
is it’s not or word that i use and she’s and she says why not everybody else does uh… benefit and he’s actually at the point
where he use trying to she’s she sort of like boxes in the main over the course of a
of a thirty five minutes forty minute interview him in the last
like ten minutes she sort of closes in the walls he feels a calming the whole
time so he’s incredibly paranoid as to where she’s leaving him uh… and he’s at one point saying like well outlook i if we have to raise the
retirement age for so stay ready from sixty to two sixty two and a half i
don’t see the big deal about it to you realize i can’t here’s this guy is lying knowingly lying to this new
zealand you know radio host and then there must
be you know her listenership how many thousands of people could there
be you know they listen to her way and hughes knowingly lying about what the
retirement age is so they can sort of get off the phone
and pizza at pet and then she asked about his wealth and
he gets all halsey it was it was really fantastic tested here because first off i don’t know anywhere in uh… american media where you would
have friedman on for forty five minutes into having to be and knowing the defendant wealth and
hold you and then aside from that anybody who ever could get him on the
phone forty five minutes with never challenge him because well uh… he will come back and then
the whole raft of other people will come back this woman was just like i’m never gonna talk to thomas friedman
again assad breath under the dry you know this is i don’t care unenthusiastic date all and uh… uh… that was uh… it’s it’s a
beautiful weather not going to come around dot com approved and uh… you
group to interview him but the purple partner practical iraq cheerleading suck on this is uh… but now i think it’s going to keep them
mellowed and uh… the to me he’s just funny uh… at wikia he came to be a guy who’s just making an
enormous amount of money being of you know essentially a puff lewin and
economy joining and felt the need to get that much that everything else so if you think it is that’s going to
take a look at really for life i mean the and i i i bet pat would advocate of the public ip two
cubic at a rating the column thirty-month
noticed make military call and then n collecting in enormous from uh… from
money for doing it uh… practicing with the public to me
and i don’t know i mean its help but that is daddy that he’s married to a
billionaire est uh… and right that syria and sell i
think you know i think it’s more about for him i think
he’s just not nearly as bright as uh… he’s given credit for uh… and i probably uh… and i think
he’s just a bumbling fool well ’em you know for him i get i’d get there’s a lot more white
knuckle sir quality to thomas friedman and i have always
been picked up from this guy that he is sort of constantly riding this wave of being afraid of being
exposed knowing on some level that if he loses
his gig as a new york times uh… op ed calmness and sort of this
chief opine air of the uh… establishment class that his wife may
just go item you know uh… here kinda chubby and
uh… he said if there are a vital totally agree with you and i i i think
that that here is what drew me to be even
immediately was back in the early bush years but the halliday concurrent
completely computerized where you realize is that we’ve already did expose and nobody cares and he’d go deaf to get
all the money and depicted you know in and completely happy listen to this interview because he is
still does not exist it clearly he’ll be here off and i want
to i had uh… one of the one of the the highlights of my uh… personal punditry career was sitting a
tad bit dylan rat again show with him and add a note you know i do that day
that he was gonna be on and i worked in the phrase uh… into a question to him sitting
across the table sucked on this ads like that the uh… look on his face for the rest
of the show as he was just sort of glaring at me looking to see if i did
that on purpose was of one of my abuse the favorite
moments i’ve has i think that perhaps and i think he’s in the past ten years
uh… u_n_ and i think he’s a pretty angry guy head down below because i
think he’s a he’s he’s i think he’s always afraid of being
exposed but uh… uh… i’ve heard that he’s just gone off
on people like just odd full-on swearing tirade and uh… book at a party to wouldn’t mind being a
purple like doctor so i don’t know that they’re it but i i did come by dragging
a pretty program director unchartered not aruna m_g_m_ getting
older i get from uh… and not bothered you losing your edge buddy guy down
there in allentown to coming here worked well of satire well and nevertheless is still
pleasure to talk to you oppose them have but if the predicted yes our item at a b
folks of rolling stone dot com thank you so much

  1. Matt & Sam: Why don't either of you ever get down to the nitty-gritty of MONEY AS DEBT??
    Why the F*CK do we BORROW our entire money supply from private banks at interest??
    Of all people, I would expect you two to be trumpeting this from the mountaintops. Don't you get it?

  2. 3:55 I wish when Taibbi and others like him would clarify that what they mean they say the Fed gave 'free money' to the banks is that the Fed gave the money free of interest. In other words, the banks still had to return the money back to the Fed, but they didn't have to pay interest to the Fed. Essentially, the Fed gave zero-interest loans to these banks, which then lent the money out at interest to their customers.

  3. There is a series of on-line explanation at the khanacademy that does an outstanding job of explaining some of the schemes that were used (under the Finance section called Bailout 1-15).

    Given Khan's background before getting into on-line education, I trust most of it is accurate.

  4. They are trumpeting this. Sam stated and Matt agreed that the Fed should just lend to small businesses and cities at zero percent. Eliminate the too-big-to-fail middle man.

  5. They are nibbling at the edges, but not seeing the big picture. The Fed should not exist at all. It is a privately owned bank, empowered by Congress to issue our currency. That power should be returned to the government. All of our money is created as interest bearing debt. watch?v=PlxKtDOkEj4 That is the root cause of all these problems. watch?v=swkq2E8mswI

  6. Was just going to post the same, More regulation & tougher punishment is required – instead of paying fines, the punishment should be handing over a % of the company eg 20%. That way the punishment is dealt directly to the shareholders and will force all shareholders to be more diligent in the future.

  7. The population of Iceland said that the banks debt was not the icelandic´s government debt. They did not refuse to pay any debt incurre by normal government spendingjust the assumption of the losses of the big Icelabdic banks as national debt.

  8. So you mean the $700B TARP bailout for bankers? or any of these Quantitative easings that are happening? $40B MBS a month just in this last round?

    Guess who has to buy those MBS back from the federal reserve? And guess what happens if we default?

    This is a massive land grab by the banksters.

  9. With that I agree with you. The option presented at the time was bail out the banks or you will have bank runs and credit will dry up from one day to the other absolutely nothing was asked from the baied out banks. Iceland nationalised its banks, guaranteed national deposits and payed off mortgage debt above 110% of income for its citizens avoiding reposessions.
    And why do we have to pay interest to a private bank (the fed) for inventing money the governement could invent on its own for free?

  10. Rofl, the discussion on Friedman is funny as hell. "He got a mustache and all", lol

    Edit: What doesnt Matt Taibbi think is funny? Hes talking about criminal banks with a smile on his face etc, all the god damn time 🙂

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