| 00:00:15 |
HOST, -
IT IS AN AGENCY THAT IS LICENSED BY THE SEC AND MAKES VALUATIONS OF THE QUALITY OF INVESTMENTS, CORPORATE BONDS, MUNICIPAL BONDS, SOVEREIGN DEBT. THEY...
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| 00:00:37 |
GUEST, -
THE HIGHEST GRADE, AAA. THAT IS CONSIDERED A SOLID INVESTMENT. THE RATINGS GO DOWN THE LETTERS. THREE MAJOR AGENCIES USE SLIGHTLY DIFFERENT LETTERING....
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| 00:02:31 |
HOST, -
BANK WE'RE TRYING TO SELL THESE PRIME INVESTMENTS. THEY
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| 00:02:35 |
GUEST, -
USE THE EXACT SAME RATING SYSTEM FOR THESE INVESTMENTS THAT THEY USE FOR HIGHLY STATE BONDS. THEY MADE A DECISION THAT THE STATE THIS OF THESE INVESTMENTS...
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| 00:04:16 |
HOST, -
RATINGS, WHICH OF THE LISTENERS KNOW INDICATES
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| 00:04:22 |
GUEST, -
A VERY SAFE INVESTMENT. THE AGENCY SAID, YOU DO NOT UNDERSTAND. THIS WAS TRIPLE A FOR ITS SUB- PRIME MORTGAGE OR A MORTGAGE MAY TO SOMEBODY WHO MAY NOT...
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| 00:07:13 |
GUEST, -
INTO THE ECONOMY. MANY BOUGHT THESE THINKING THEY WERE BUYING GOLD PLATED INVESTMENTS. IT WAS NOTHING MORE THAN JUNK. IN 2007, 91% OF THESE SUB-PRIME...
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| 00:07:55 |
HOST, -
TO THE MELTDOWN. ONE IS, IT DOES NOT MATTER HOW MUCH A PERSON WHO GETS A MORTGAGE GETS PAID. THE APPRECIATING VALUE OF THE HOUSE WILL SKYROCKET. THAT...
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| 00:08:13 |
GUEST, -
THERE WAS NO RISK. THE CREDIT RATING AGENCIES WERE INITIALLY PART OF THAT. THERE WAS NO RISK. EVEN IF YOU CANNOT AFFORD YOUR HOME, IT WOULD APPRECIATE...
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| 00:11:02 |
HOST, -
A BOND RATING. HE SAID I
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| 00:11:09 |
CALLER, -
CANNOT COME UP WITH THIS UNABLE TO DO IT. HE HAD BEEN IN THE BUSINESS FOR AGES. SOME SAY HE CANNOT GENERATE REVENUE FOR THE RATINGS ON. THE CREDIT AGENCIES...
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| 00:12:11 |
GUEST, -
RATING AGENCIES AND NOT BE IN A POSITION TO BE FIRED. THERE WERE TONS OF EMAILS WITHIN THE COMPANY'S EMPLOYEES SAID, THIS IS NOT WORKING. WE ARE NOT...
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| 00:13:44 |
HOST, -
MAPPED IN THIS ENVIRONMENT. THE HOUSE HAS A SIMILAR PROVISION. SENATOR CARDEN IS GOING TO OFFER AN AMENDMENT THAT WILL PROTECT
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| 00:13:55 |
GUEST, -
PEOPLE SO THEY DO NOT GET FIRED THAT THE THIS IS SOMETHING VERY DANGEROUS TO THE ECONOMY. WE TALK ABOUT THE GREAT RECESSION, THE MILK DOWN, THE BAILOUT,...
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| 00:14:38 |
HOST, -
EVALUATIONS THE AGENCIES MADE. PAULSON DID HIS OWN INVESTIGATION AND BET AGAINST THEM. FINDING SOMEONE TO TAKE THE OPPOSITE END OF THE DEBT. THOSE TRANSACTIONS...
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| 00:14:53 |
GUEST, -
A FORMAL TRANSPARENT EXCHANGE WITH ALL OF THIS INFORMATION GOING TO REGULATORS. THEY HAVE THE ABILITY TO SAY, WHAT IS THIS ALL ABOUT? THIS HAS NOTHING...
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| 00:16:10 |
CALLER, -
LEAVE YOUR GOVERNMENT POSITION? ANOTHER IS ELLIOTT SPITZER. WE NEED PEOPLE LIKE THIS AT THE TOP WHO WILL WATCH OUT FOR PUBLIC INTEREST. GUEST: BACK IN...
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| 00:16:51 |
GUEST, -
WORLDWIDE, 10 TIMES THE WORLD IN GDP AND THERE IS NO MEANINGFUL REGULATION. THESE DERIVATIVES. THESE ARE THE THINGS RAIDED BY THE CREDIT AGENCIES. THE...
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| 00:18:33 |
HOST, -
EVEN THAT WAS NOT RECEIVED WELL. GUEST: THERE IS A PBS FRONTLINE DOCUMENTED IN -- DOCUMENTARY THE DETAILS THIS ENTIRE EXPERIENCE. I AM SURE IT IS ON...
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| 00:18:59 |
GUEST, -
WAS $27 TRILLION. WE SAW THIS MARKET HAD NO TRANSPARENCY. IT DID NOT HAVE CAPITAL BEEN BROUGHT TO THE TABLE. PEOPLE WERE MAKING BILLIONS OF DOLLARS WITH...
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| 00:24:24 |
CALLER, -
ONES GAVE FORD AND GENERAL MOTORS JUNK BOND STATUS. AT THE TIME IT DIDN'T SEEM GOOD BUT IT SEEMED FAIR. IN HINDSIGHT, IT'S TOTALLY NOT FAIR BECAUSE...
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| 00:26:33 |
HOST, -
A VERY PROMINENT PROFESSOR AT THE STERN
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| 00:26:36 |
Unidentified Speaker, -
SCHOOL OF BUSINESS AT N.Y.U. LAWRENCE WRIGHT WHO HAS SAID FORGET ABOUT CERTIFYING THESE PEOPLE AS BEING SOMEHOW KNOWING ALL. LET'S GET A LOT OF COMPETITION...
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| 00:27:38 |
HOST, -
MARKETERS THAT YOU DON'T WANT TO REGULATE, YOU KNOW, YOU DON'T WANT TO REFORM, YOU JUST WANT THE
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| 00:27:43 |
CALLER, -
FREE MARKET TO DO WHATEVER IT IS GOING TO DO. WHAT ARE THE CHANCES OF REAL REFORM AND REAL REGULATION GETTING THROUGH, SAY, THE SENATE, WHERE THINGS...
|
| 00:28:17 |
GUEST, -
WHO CARE ABOUT THIS, THEY SHOULD READ ABOUT IT. MY OWN PERSONAL VIEW IS THAT SENATORS SHOULD BE TOLD THE TIME HAS COME TO REIN IN THE CASINO AND START...
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| 00:29:20 |
HOST, -
GET 1/10 OF THE INFORMATION THIS GUY JUST GAVE PEOPLE
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| 00:29:23 |
CALLER, -
BECAUSE IT'S JUST SO STUPID, BUT THESE GAMBLING -- SO MANY PEOPLE IN THE NEWS MEDIA GO ALONG AND SAY THIS WAS ALL A SET PRICE. THE TRUTH IS IF YOU TOOK...
|
| 00:30:36 |
HOST, -
HAVE THE BETTING AND THE AMERICAN TAXPAYER HAVING TO BE THE
|
| 00:30:40 |
GUEST, -
LENDER OF LAST RESORT TO THE CASINOS LIKE A.I.G.'S AND MERRILL LYNCHES WHO HAD TO BE BOUGHT BY BANK OF AMERICA, IF WE DIDN'T HAVE THE BETTING, THIS...
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| 00:31:17 |
Unidentified Speaker, -
SOCIAL SECURITY. I USED TO HAVE AN EXTREMELY
|
| 00:31:21 |
HOST, -
HIGH CREDIT SCORE. THROUGH SOME
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| 00:31:23 |
CALLER, -
BAD DEALINGS AND A LOSS OF A HOME AND A FIRE, ET CETERA, MY CREDIT SCORE IS NOW IN THE LOW 500'S. I USED TO RECEIVE CREDIT CARD OFFERS FROM EVERY BANK...
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| 00:32:26 |
Unidentified Speaker, -
SUBJECT REALLY FOR ANOTHER DAY, BUT THE POINT I THINK THAT YOU RAISE IS A GOOD ONE. WE HAVE BEEN TALKING ABOUT SUBPRIME MORTGAGES AND THE GAMBLING...
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| 00:34:42 |
HOST, -
FROM THE DEFAULTS ON
|
| 00:34:45 |
CALLER, -
THESE LOANS, ARE THEY COUNTING OUT, LIKE, IF YOU BORROW 30 GRAND FOR A HOUSE AND YOU PAY IT BACK IN 30 YEARS YOU PAY BACK 150 GRAND. DO THESE PEOPLE...
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| 00:35:27 |
GUEST, -
COLLAPSE. THEY WON THE BET. THE PAUL SONS AND GOLDMANS, ET CETERA. WE PAID THAT BET OFF 100 SCENTS ON THE DOLLAR. GOLDMAN SACHS GOT AT LEAST $12.9...
|
| 00:36:50 |
HOST, -
THAT IT HAS TAKEN IN, IS LOOKING TO OTHER SOURCES OF INTELLIGENT EVALUATION, INVESTMENT ADVISORY SERVICES, ECONOMISTS AND I THINK THERE IS A MARKET...
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| 00:37:01 |
GUEST, -
FOR PEOPLE WHO CAN PROVIDE INTELLIGENCE, SOPHISTICATED AND COMMON SENSE EVALUATION OF INVESTMENTS. HOST: MICHAEL GREENBERGER, THANK YOU VERY MUCH. GUEST:...
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| 00:37:32 |
HOST, -
BUT FIRST A NEWS UPDATE FROM C-SPAN RADIO. >>
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| 00:37:36 |
GUEST, -
IT'S 19 --
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| 00:37:37 |
HOST, -
IT'S 9:17 IN WASHINGTON, D.C. IN THE HEADLINES, A LAW ENFORCEMENT OFFICIAL IN NEW YORK CITY SAYS THE MAN ACCUSED OF DRIVING THAT BOMB-LADEN S.U.V. ...
|
| 00:37:58 |
Unidentified Speaker, -
AIRPORT. HE ALSO SAYS INVESTIGATORS DON'T HAVE ANY EVIDENCE THAT MR. SHAHZAD IS CONNECTED TO THE PAKISTANI TALIBAN OR ANY FOREIGN TERROR GROUPS. ...
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| 00:40:01 |
HOST, -
WITH C-SPAN A NUMBER OF
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.