Worst week ever on world markets

[investortownhall]

It was not the lack of regulation that caused this crisis - it was easy money and low interest rates combined with foolish lending practices. The Democrates wanted subprime lending to expanded and the Republican's used the expansion to tout growth in the economy. And investment bankers driven by money and political support to make foolish loans invented foolish investment practices to match foolish loans.

[zerosleep73]

Bravo Real News! You finally have an economist who knows his stuff. The last couple were not so good. You should bring him back on frequenty!

[krammitAll]

everyone please ignore "ColonialsimisEvil". He or she is either a troller or someone who should be promptly ignored. I almost posted a reply... but what good would that do?

Here is a saying i try to use as a rule for posting. "Do not wrestle with a pig. You end getting dirty, and the pig enjoys it."

[yay1912]

Thats stupid

[sollycardy98]

You obviously don't understand the history of governments with increased power and how that has effected the past. All that needs to be done is right there in black and white on the constitution: "Only gold and silver shall be legal tender"

[AlcasSin]

@sollycardy

when gold was a legal tender world got long depression from 1873-96; shock of 1893 and panic of 1907. Got that?

The cure you offer is just more pain.

[McOath]

well done. But, niether candidate is proposing a new deal type system and there is no money for a massive injection from the government the state is trillions of dollars in debt (the largest debt in US history). Also why should we think the government is any more accountable than the financiers? Banks will be moving into no better hands with nationalization. Banks should be massivily decentralized a la Muhammed Yunus, this is a chance to give the economy to the people!

[yay1912]

@ColonialismIsEvil you are a fucktard.

have a nice day :)

oh! an tell me again why the white race is evil.

[yay1912]

Dumb ass yer not making any sense ya know.

...Dumb ass

[kjpdqpb]

Does your guardian know your at the computer?

Sheesh, you are in for one rough life man.

If you are anything like the Indians that were here when white people started coming to the Americas, I can understand why they had to take over.

You are hateful, hatemongering, trouble, rabble rousing, genocidal, speaking of the eradication of an entire type of mankind.

You're as bad as the people that run the US government.

[kjpdqpb]

Seriously be quiet or i'll kiss you.

[kjpdqpb]

someone should suspend his account

[HugeJohn51]

Seriously...what are you talking about? Are you in some kind of mental institution because you should be. Boy the most insulting thing I get from that (and I am not clear on anything you are saying) is that I am a christian. Bite you tounge! Religion is for, well people that aren't into objective reality. Fuck I agreed with you you little cocksucker...I laugh at you fool, if you were infront of my face, believe me you wouldn't say any of these things whatever they are- get a life

[HugeJohn51]

Hey there buttsniff- how about gathering a cohesive thought? No one wants to read your crap. Colonialism is not a good thing, you're right, most people would agree with that, now talk/write clearly and maybe people will listen to you rather than thinking you are a total idiot, which apparently you are.

[turkeyjurker]

this is what happens when you convince everyone that paper is more valuable than the things it buys.

[gogetitdude]

If it's going to happen let's get it over already

[CescoPisicoli]

FINNNALY SOMEONE THAT ACTUALLY KNOWS WHAT HE'S TALKING ABOUT!

Y can't we have politicians and gov't bankers be this intelligent?

[bleunt]

People talking about what Sweden did in the early 90's? Naaaw! We rock. :p

[PersonalJesus348]

we sill haven't hit the bottom yet.

[unab84]

Very good clip

[Rikotistic]

My sister-in-law who works in a nursing home bought stocks from General Motors after raiding her penny jar.

[kjpdqpb]

what r u mad about? You get a free check in the mail every month. You American Indians can cry all you w ant. You don't even have to work man. I want to punch you in your ignorant fucking mouth. Sit on your ass and get free money from my taxes because some fucking politicians 100 years ago felt bad for you? Fuck you man. Thanks for NYC. Now 1get a fuckin job.

[blackiron60]

Isn't it interesting that economic hardship is one of the few things that causes these people to even start contemplating doing the right thing...

[DillonX]

Wait a minute -- I thought Bush & Cheney told us that if we just gave BILLIONS in tax cuts to the top 5% WE WOULD HAVE A HEAVENLY WORLD!

[kjpdqpb]

Bush and Cheney need to be held responsible for war crimes and betraying the Interests of the US among other things.

Unfortunately our other branches of government are feigning too weak and Unable to try them for anything. Its bullshit, all of it is bullshit. why can't we just be honest about it.

[Bocbo]

Reagan, Bush, Shrub, they all said the same thing, called it "trickle down" the rest of us just called it getting pissed on.

[bbburton]

Let the financial banks fail. No more bail out by tax payers for the fraud the financial lenders perpetrated on borrowers. Fraud is already a crime. Congress allowed these shady dealers to run amok by tearing down the wall between banking and non banking financial lenders. If the gov takes over the banking industry I'll never put another penny in a bank. Shut down the Fed.

[strokedonce]

Gee u r smart.And creative.

[GeneralAntonioValero]

This problem could have been solved if the inequality of the system was FIXED! When you have middle class people with no higher wages an d a system that continues to increase its prices for food etc. How do you explain this functionally speaking? You increase the middle class and you pay better wages. You increase an provide social justice for the poor. This is what this free trade system is against. It runs on providing the Rich with tax breaks instead of the middle class!

[bennymcfarlane]

thanks realnews.

[kjpdqpb]

Stole what? America? Give me a break. White people are the reason you have a computer to sit at. But there are both bad and good white people. Pieces of shit come in every available color you know. So do me a favor you racial rabble rouser; look in the mirror and let me know what color you are representing.  Because you are CLEARLY a piece of shit.

END RACISM, UNITED WE STAND.

You fucking racists and religious just don't get that do you?

[BenjaminFranklin2u]

Well Said.

The truth is most of these loans were given when the banks knew they couldn't pay, yet gave it to them anyway.

Really who is not gonna take a mortgage the bank approves you for?

On top of that the banks often were deceptive about the loan rates and raised rates making it impossible for people to pay. Even if they could have payed the original rate.

Blaming poor people for a financial depression is ridiculous, not to mention simplifies the situation beyond the reality.

[tomasleeman]

This is the great unwinding of leverage. No matter what they do they can't fix humpty dumpty. As long as the value of home values drop and they will fall to the historic mean CDO's and credit swaps will emplode $62 trillion worth. The cause leverage, legislation and low interest rates. 1999 Gram Leach Bliley and the 2000 commodity futurers modernization act need to be repealed both directly responsible for unregulated Credit default swaps. Get ready for dow 5577 and oil at $56

[pongman]

We should forget about buying up the subprime mortgages and open up new federal banks and initiate loans. The new banks with the 700 Billion would give out shares to all 300 million Americans which can in turn be traded and bought. The new US Federal Bank would then be accountable to the shareholders (taxpayers). This would then bring true value to those homes in foreclosure and place a price tag on them with the new home loans given out.

[AvangionQ]

[1/2] I'd have to wholeheartedly agree on one point -- we need a new public works project to build the infrastructure for renewable energy ... our economy is currently in the state its in for two reasons -- the 1971 OPEC decision to have all international petroleum sales be made in U.S. Dollars causing the Federal Reserve to print an obscene amount of capital to cover these exchanges which is now flooding the market ... (more,)

[AvangionQ]

[2/2] and that we have become a non-sustainable debt based society, too used to inflation covering our debts, squandering our wealth ... since watt for watt, renewable energy sources such as solar and wind, have become less expensive than fossil fuels, petroleum that we are importing at a rate of 400 billion dollars a year, and exporting our wealth, all that is necessary to switch our economy over is a public works project -- it seems that the next step is clear ...

[iodyn]

"the mass psychosis of fear" :) or how to blame the little guy for the problem when he is not liking is live savings to go from 100 000$ to 50 000$ in a month.

[GeneralAntonioValero]

How can you compare the two system when your free trade system affects the world. As system which exploits the workers an pushes across imperil agenda. Where the "other" people are considered different. A system of global exploitation of IMF WTO that leave countries in debt. Free Market capatilism is a joke!

[iodyn]

you again.... what the hell ? stop meth now , save you teeth !

[delerium2k]

Kudos RealNews, great interview.

[AiresQX4]

If you really take the time and think of the

Problem,Reaction,Solution scenario and how it's been applied all throughout History you come to the amazing and simple conclusion of the power and manipulation of the small Elite

and the ENDGAME! It's all there to study and learn about if more would take the time to do the work..

[awaken69]

excellent interview!

[abilityoflove]

With the bailout, the architects of greed are trying to reboot the Matrix, but the time has come for real change.

This is simply the end of one paradigm - end of capitalism in which money is elevated into a false god. As Hegel said: History is a process of actualisation of Spirit. So here we are; we are witnessing these days History at work.

[wcarlpdrysdale]

chuck baldwin will end the F.E.D ;~}

[enderwigginsx]

i think banks and the problems that come with them are too big.

they should be smaller and localized only.

that way problems in the market could be dealt with on a much smaller scale.

[MasterMark123]

this man really seems to know what he's talking about. Thanks for the interview in this time of Capitalism gone wild !

[wcarlpdrysdale]

this a hole dose NOT know what he is talking about ===== @ 1:00 ether you DO or DO NOT have the money!!! it's not a mater for debate and stop acting in denial. @5:28 ((NOT)) a free market WHEN A FORE PROFIT COMPANY "THE f.e.d." can raise and lower interest rates and print counterfit money and confiscate gold HOW DARE YOU CALL THIS A FREE MARKET

the F.E.D.'s purpose is to own every thing in this country the asshole can't tell you who owns the fed. and no one else can ether,,, by law.

[FreakishDonQuixote]

freiwirtschaft solves.

[btigtime2]

The real reason for this fallout is Gobalism its been a complete failure... since Babble, Gobalism is an impossiable unrealistic goal... We need to take our boarders back and let each country take care of their own...

Our Wages in America have almost stopped since "NEW WORLD ORDER" went through Bush the first's lips and wages came to a stop when Clinton said "NAFFTA", Then Bush openned his mouth and said anything.

If wages would have increase, ARM morrages could have been doable.

[boots920]

Paper or Fiat money is flawed, the problem isn't the amount of "paper" available, the problem is "value" of that paper.

IN the material world paper is only as good as governments.

At least there will be no shortage of toilet paper.

[momerath42]

I hate this false dichotomy. Our two options are not central banks with boards made up of commercial bank reps or central banks with boards made up of political appointees! It would amount to the same thing given the current level of power that special interests wield. Let's hear some discussion of Statism vs Voluntarism rather than more of this very-unhelpful Corporatism vs Socialism song and dance.

[qizalia]

The fat cats have already made the silent run on the banks, little cats hurry there's 2000 for each of you.

[XulChris]

Oh please. Government and the Federal Reserve *are* the problems. They will deregulate (Financial Services Modernization Act) *and* regulate (Community Reinvestment Act) us into a depression. The system is broken, no amount of regulation is going to help. We have to go back to free market capitalism, what we have now is crony corporatism.

[TVParkdale]

Oh, *NOW* Bush asks for global advice.

He should have done that 10 minutes after he took office.

I'm taking my last $5 and getting plastered...

[truthspeaker969]

how about nationalising the kike banks who

own the FED...should be a good start

[TVParkdale]

I can't believe that mental defective Harper just sank 25 billion into this mess when we were barely going to get a blip on the economic radar.

Then he's selling us that it won't come out of taxes. So his 2 billion deficit is now 27 billion.

Ontarians are changing their vote to conservative. Has Ontario put a senility drug in the water supply? Every conservative gov't, federal and provincial has resulted in economic disaster here.

/epic face palm

[HugeJohn51]

I think it is because he looks like an average S. Ontarian, and speaks somewhat like one as well, while Dion looks funny and talks like one of them frenchies. I think that is the level of Cdn. politics today.

[TVParkdale]

HugeJohn51:

I wonder if we have lost our ability to discern thoughtfulness.

Harper has no media interviews unless he vets the questions. Dion does his best to answer, even when he's struggling or has to think it through first.

It's sad if we're going to vote on punditry and sound bites instead of substance. I like the NDP but not Jack. I can live with the liberals if necessary.

That's a thought-out position.

What's happening to us?:(

[HugeJohn51]

What's Happening? Harper is goin all Neo Con on us and it is working! Scary. I live in Alberta and am surrounded by these bastards. It is awful! I actually kind of like Jack, he just about makes some sense. We vote green to protest the Conservative landslide we have here in Ab.

[TVParkdale]

I get it HugeJohn51--I SO get it:(

My sister lived in both Alberta and Saskatchewan.

We're Metis [not the western sort]. She had red hair so she kept it a big secret from everyone she met. Pretty pitiful.

Harper wants the west for the resources. He'll destroy us here in Ontario.

Yet the poverty problems are happening there, too:(

[hasatum]

Oh goody. First we get railroaded into letting the bankers confiscate all our wealth and now that the bankers (as opposed to the "insolvent" banks)have carefully hidden away all the cash, the government gets turned loose to do what it likes.

Recall that FDR not only presided over the Depression but also ushered in WW2. If you're going to fight a major war against other nations or peoples, the government needs a warchest. Handing over the keys to the Fed and the banks will do just that.

[Plutonwolf]

Try this on for size:

Those who fail to learn history are doomed to repeat it, but those who fail to learn history CORRECTLY, why they are merely doomed.

Herbert Hoover was the President, a Republican, during the run up to and the first 2 years of the Great Depression.

And as far as I do remember from my actual study of history, Mr Hitler, Mr Mussolini and Mr Tojo sort of ushered in WWII. It's a damn sight more complex than that, but I get the sense your not interested in complex.

[hasatum]

Please read my post again. I did not say FDR was president at the start of the Depression. For that matter, the next president won't be either. FDR did not start WW2, but he certainly got America involved and was, despite his rhetoric, anxious to do so from the beginning.

Don't forget: FDR had banker friends too and readily admitted that it was the financial interests who were largely running the show.

I agree that there will be hard times for those who misunderstand history.

[Ariji86]

I tell you all, what is wrong.

The interest. I disagree with the interest system.

There should be better idea.

[carlfinkle]

Watch his eyes he's reading it and he very scared

[kjpdqpb]

Let me get this straight.

OUR GOVERNMENT IN THE US FORCED THESE BANKS TO OFFER SUB PRIME LOANS.

Ok I get that part.

OUR GOVERNMENT IS NOW CLAIMING THAT THESE BANKS ARE IRRESPONSIBLE AND FALLIBLE AND TAKING THEM OVER.

Ok I get that part too.

So what part of OUR GOVERNMENT IS TO BLAME are people not getting?

Our government has an element that actively seeks its own empowerment and preservation. The problem with this is that it is a fallible system built by fallible people to operate supremely.

[wildclaw2]

The subprime market is such a minor part of the crisis. The fact is that the whole house market has been overvalued for a long time, and in the last few years it has gotten insane.

Note especially that lending companies not affected by the regulation has been even more crazy than the regulated companies to lending out money.

The house lending regulations are responsible for at most 10% of the problems today. The rest is pure simply free market bubble idiocy.

[JackNeedles]

You do not know what you're talking about. First of all, we never had a true free market since the establishment of the Federal reserve system and the housing bubble was created by the Federal Reserve, not the free market. The media and government/Fed caused this mess and want their little brainwashed sheeple to believe that it was the 'free market.' Learn to think for yourself.

[AlcasSin]

Instead of reading Mises read Roubini.

So the "tulip bubble" in 17th century was also created by the government? Who caused this mess?

Panic of 1907 was also caused by non-existant Federal Reserve.

Give me break.

[JackNeedles]

No, the panic of 1907 was caused by JP Morgan because it lead to important reforms such as the formation of the Federal Reserve system. That is why it was caused.

[AlcasSin]

It's a Conspiracy Theory.

It was clearly caused by the run on banks durig a period of recession. If JP Morgan engineered run on bank then he was god.

JP Morgan stepped in to bail-out the financial system which was in the eve of systemic meltdown. Of course he profited from this. However 1907 panic was another run on bank before WWI. The panic of 1893 ended in 5 year depression.

Overextension of the financial system of unregulated banking system leads to this point. Every time.

[JackNeedles]

Conspiracy, maybe. Theory, no. The panic of 1907 eventually lead to the formation of the National Monetary Commission which was then the commission in 1913 that recommended the formation of the Federal Reserve Bank through the Federal Reserve Act. The same thing is happening today to bring in a new financial order. the big fish eat up the small fish and become more powerful. JP Morgan also engineered the Bear Stearns collapse.

[ragman2008]

welcome to the new world order

[jakob0815]

go team neoliberalism!^^

[navtel]

this whole mirage is fading into the distance.

henry paulson, ben bernanke and george bush are dumb as posts.. they know shit and are stumbling around looking for restablization of the financial system.. we are finished. nothing short of devine intervention will save this miserable society we live in.

[odin422]

the Government and the Banking system are a REVOLVING DOOR!

what a fool that Professor is

[ragman2008]

they don't say that

even the news readers know it

but they just don't talk about nwo!

cuz it seems awkward.. although all these shit is true

[odin422]

The Credit system was corrput and should NEVER be allowed again.

[lordblazer]

the shit has hit the fucking fan. Cheers!!