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| TIME | SPEAKER | TEXT |
|---|---|---|
| 00:00:10 |
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THAT IS TONIGHT AT ON C- SPAN2. |
| 00:00:15 |
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JOINING US WHEN NOW IS LUIGI ZINGALES HERE TO TALK ABOUT TESTIMONY THAT YOU WILL BEGINNING LATER ON... |
| 00:00:29 |
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WE WANT TO TRY TO UNDERSTAND WHAT WENT WRONG WITH LEHMAN BROTHERS, BY ONE OF THE MOST FAMOUS AND RELIABLE... |
| 00:00:45 |
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THIS IS THE "NEW YORK TIMES." IT POINTS TO ALL OF THE DIFFERENT AGENCIES THAT HAS SOME REGULATION... |
| 00:01:12 |
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I THINK IT WAS BAD REGULATION. REGULATION THAT WAS NOT USEFUL. FANNIE MAE AND FREDDIE MAC REGULATORS... |
| 00:02:02 |
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SOME PEOPLE POINT TO THAT AS A PROBLEM IN THIS SITUATION. DO YOU AGREE WITH THAT? |
| 00:02:09 |
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IT IS MORE REALLY ABOUT THE TRANSMISSION OF THIS. NO REASON WE ARE WORRIED ABOUT ONE COMPANY GOING... |
| 00:02:34 |
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CREDIT DEFAULTS SOUND COMPLICATED. WHAT EXACTLY ARE THEY? MAYBE IT IS BETTER TO EXPLAIN HOW THEY WORK.... |
| 00:02:44 |
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IT IS BASICALLY AN INSURANCE. IS AN INSURANCE WITH A FUNNY NAME BECAUSE IT DOES NOT WANT TO BE REGULATED.... |
| 00:03:00 |
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SO IT IS NOT INSURANCE -- |
| 00:03:04 |
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SO IS IT IS INSURANCE BUT IT IS NOT REGULATED, SO IT IS CALLED SWAPS. |
| 00:03:15 |
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THE BEST WAY TO PUT IT -- LET US SAY THAT ON AND J.P. MORGAN. I MAKE A LOAN TO GENERAL MOTORS. I REALLY... |
| 00:05:26 |
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WHEN CREDIT -- WHEN COMPANIES WENT TO GET THE CREDIT, IT WAS NOT THERE. THERE WAS NOT ENOUGH CAPITAL... |
| 00:05:36 |
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IN THE INSURANCE MARKET, BECAUSE IT IS NOT REGULATED, WE ADD SOME THINGS TO MAKE SURE THAT THEY STAY... |
| 00:06:15 |
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SO INSTEAD OF REGULATION, BUT DO YOU THINK THAT THEY WENT UNDER BECAUSE OF RUMORS? |
| 00:06:23 |
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NOT EXACTLY. THE SITUATION WE ARE IN RIGHT NOW IS THAT THE WORLD LOST IN THE SUBPRIME MARKET. IT... |
| 00:07:21 |
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WHAT WILL YOU TELL LAWMAKERS WHEN YOU TESTIFIED AGAINST REGULATION? |
| 00:07:29 |
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I THINK THE CAUSE OF THE CRISIS IS THAT REGULATION, LACK OF TRANSPARENCY, AND MARKET CAN'T -- COMPLACENCY.... |
| 00:07:55 |
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THIS IS THE COVER OF THE "FINANCIAL TIMES." WE WILL HAVE LIVE COVERAGE OF LEHMAN BROTHERS TESTIFYING... |
| 00:09:06 |
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AS I MENTIONED, PRESSURE FROM CONGRESS AND GOVERNMENT TO PROMOTE COKEHOME OWNERSHIP, MORTGAGES TO... |
| 00:10:37 |
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TAKE A LOOK AT THIS LEGISLATION THAT THE PRESIDENT SIGNED. $700 BILLION TO PURCHASE DEVALUED ASSETS.... |
| 00:11:11 |
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I HAVE BEEN ON RECORD CRITICIZING THIS PLAN. THE IDEA OF A PLAN IS VERY SOUND. AS I MENTIONED, NOW... |
| 00:12:13 |
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WHAT IS THE ALTERNATIVE? |
| 00:12:19 |
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AND THERE IS A COMPLICATED PLAN THAT I WILL TRY TO SIMPLIFY. THE REASON WE HAVE A PROBLEM NOW IS... |
| 00:13:29 |
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HOW DO YOU TURN DEBT INTO EQUITY? |
| 00:13:34 |
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THE BANKRUPTCY CODE ALLOWS THAT. THIS IS OFTEN ALLOWED IN CHAPTER 11. THE PROBLEM IS IF WE ARE TO... |
| 00:13:58 |
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NEXT PHONE CALL, LEBANON, MISSOURI. CALLER: THANK YOU FOR TAKING MY CALL. WE ARE TALKING ABOUT THE... |
| 00:14:43 |
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I THINK THERE IS NO QUESTION THAT THERE WERE MISTAKES DONE BY SOME PEOPLE. THE QUESTION IS NOW TO... |
| 00:16:44 |
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TREASURY ANNOUNCES PLAN TO INCREASE DEBT AUCTION TO HANDLE A BAILOUT ON -- OPTION. WHAT IS THE DEBT... |
| 00:16:55 |
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IF THERE ARE TALKING ABOUT THE TREASURY AUCTION, THAT IS BUYING UP TDEBT FROM THE TREASURY. MAYBE... |
| 00:17:14 |
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VIRGINIA. IT INDEPENDENT -- INDEPENDENT LINE. CALLER: IT IS VERY ENLIGHTENING TO HEAR YOU AND I AM... |
| 00:19:24 |
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I NEED YOU TO GET TO YOUR QUESTION, PLEASE. |
| 00:19:31 |
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WHAT WOULD HAPPEN IF THE STATES STAYED OUT OF THIS? |
| 00:19:38 |
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YOU SAY THAT THE BAILOUT SHOULD NOT HAVE HAPPENED AND YOU POINT TO THE MARKET, SAYING THAT YOU WERE... |
| 00:19:47 |
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YES NOT SAYING THAT THIS WAS WRONG IS NOT SAYING THAT THE GOVERNMENT SHOULD NOT BE IN THERE. WE ARE... |
| 00:20:11 |
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WHY DO YOU THINK THE MARKETS ARE RIGHT ON THIS? |
| 00:20:16 |
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THE MARKETS AND EUROPE ARE GOING DOWN RIGHT NOW. PEOPLE ARE NOT SURE THAT THIS IS GOING TO WORK. |
| 00:20:28 |
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FLORIDA, REPUBLICAN LINE. CALLER: I HAVE A COMMENT AND QUESTION. FIRST, YOUR PLAN IS BRILLIANT AND... |
| 00:20:52 |
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WHEN IT COMES TO THE ECONOMY, I PRESUME. |
| 00:20:59 |
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I AM NOT TESTIFYING ON THE BAILOUT PLAN, I AM TESTIFYING ON THE LEHMAN BANKRUPTCY. I WILL BE HAPPY... |
| 00:22:15 |
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SOME ARE CALLING ON CANDIDATES TO NAME THEIR PROSPECTIVE TREASURE PROTECT -- TREASURY SECRETARY. ... |
| 00:22:30 |
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IT WOULD BE USEFUL TO HAVE A SPECIFIC PLAN AND I AM NOT TURN IT THIS NAME IS HELPFUL. THE KNEE-JERK... |
| 00:23:13 |
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MICHIGAN. GOOD MORNING. CALLER: I THINK YOU ARE ONE OF THE FIRST PEOPLE WHO SAID THAT DEREGULATION... |
| 00:24:10 |
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I AM NOT SURE IF I SAID REGULATION WOULD NOT HAVE PREVENTED THE PROBLEM. I JUST SAY THAT THE SOURCE... |
| 00:25:07 |
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1 IS AN EXAMPLE OF THAT REGULATION? |
| 00:25:13 |
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PERHAPS INDUCING FANNIE MAE AND FREDDIE MAC TO BUY INTO THE SUBPRIME LOAN MARKET. |
| 00:25:19 |
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TAMPA BAY. INDEPENDENT LINE. CALLER: IS NOT THE CAUSE OF THIS PROBLEM ALAN GREENSPAN TELLING US THAT... |
| 00:25:41 |
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FINANCIAL INNOVATION -- IN THE BEGINNING OF THE AUTOMOBILES, PEOPLE WERE BLAMING THEM FOR ACCIDENTS.... |
| 00:27:02 |
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IF THIS BILL IS NOT LARGE ENOUGH, WHAT HAPPENS? |
| 00:27:07 |
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MY FORECAST IS WE WILL BE GOING BACK TO THE DRAWING BOARD PRETTY SOON ONE WAY OF THINKING IS TO DIRECTLY... |
| 00:27:51 |
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WE WILL LISTEN TO YOU TODAY WHEN YOU TESTIFY BEFORE THE HOUSE OVERSIGHT COMMITTEE. 10:00 EASTERN TIME.... |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
