channel-surfing accumulates in the u_k_
we have depressed
we keep being told
that the way the super-rich create wealth makes all of us
well f_a_a_'s better off
good jossy
this time around debuts new fed differ from actual techniques to enrich
themselves
and right now
vanity winners
he seemed to be done
five david tell you how to use it for rich bomb-making therefore choose and
why we ask
picking up the bill
in a global agreed today
in the past few years the city of london financial services
that contributed a friend of bold our economic growth
london's is the capital of capitals
london for the international community was a beautiful city
unless the people in the end of the uh... the clinton soon too
start responses perhaps it's got the blast
fifty-something tells expenses
that's a fix it real
there's not going for it
more than fifty billion as corporate and higher
lots of the nineteenth century evidence socks opportunities for so many tonight
quite so much money
at least thirty thousand brits i'll have more than half a billion pounds a year
in two thousand six four thousand two hundred city executives took up by the
feminine or more
i don't have funds allotted a hundred and fifty people have been adding more
than twenty million pounds a year
the only other period we have seen similar accumulation
with during the industrial revolution in the victorian age when the whole
rafter victorian industrialists uh...
make massive fortunes very quickly but even that was over apparently of forty
or fifty years
this has been
in the last ten
when you're coming in with several billion pounds
we travel around and homeowners guarded by people in the past two years the idea
of the congestion charge is wonderful to be dictates the road to the rest
you can get out to a private airfield quickly
to get on your captain can see offline operations popular and hot
and they've created
gestures of friday this week spence's properties
this house is not on that
recently sold for fifty million pounds
you were there will be spending
probably another profession
would be the most desirable house
and just outside london is this a brand new twenty six bedroom mansion
eight on the market now over seventy million pounds but if they're running
costs of over a million a year
that made any complicated as the
for the vivien leigh
even says the developer knows me on the back yard
tried his best replaced
citizen private setting poses simply for the end of the house of mexico's the end
of the house wants to allows people to use it
on sweeps week
why would you want
itself i close effect except popat ladies affect
schools you genuinely needs like food
this fall so there is about eight hundred square foot putting it into
perspective is about size of the average two bedroom flat in london
says it's not so
to appease the postage is amazing
together
a n_f_l_ holidays in my head
self-help all these people that got distal five
online last about finding the resources or exploiting technology
are life function
and they work
helped to become wealthy beyond anyone's wildest dreams by a sharp fall in the
cost of money but then at all of us engineered by the u_s_
deal with
it sets interest rates for america
and in a way
for the world
back here september day
the american economy was already faltering offer the best thing of the
dot com bubble
them then
the world's most powerful central banker alan greenspan feared the terrorist
operation would further undermine the confidence of businesses and consumers
said he can't
interest rates on
usually lead
american interest rates were tonight cuts bhaiya hov of one percent the
federal reserve base rate now stands that's just one of the course of this is
the lowest the forty one years
off to the best thing of the dot com for both
at nine eleven
greenspan's slashed rates for just one percent
and the supply of credits all physical race exporting nations such as japan
china as those of the middle east which generated cost surface is fine lead
much of a cash flow house in the west for that is too low
became cheap safari money anywhere
for private individuals and especially for businesses tycoons and financial
institutions
they went on the most friend mexican borrowing three the world is c with so
much money starting around half the price of assets competi the houses to
retire companies soldiers five thousand pounds
so people barroom more
begins the inflated family without sets
the valuation of property the valuation of shares
part
jewelry
et cetera was story
and the central banks on the whole set this is not our business
we didn't manage
passes
we only manage price inflation
with all his life for involve some strength that smoke
rate tonight and it is unfortunate
it's all faxes kal using leverage
leverage is simply ball rolling to invest
you're not investing your own money
uh... or you investing part of your own money but you wore all to invest more
uh... so that's simply that's leverage is borrowing to invest
when we or all for a mortgage
we leverage
as simple as that
the power of the leverage to multiply profits is that
common experience from the end of it
japa house
if you put down a ten thousand pound of politics
when buying up
borrowed the other ninety thousand
on that house the
right
ten thousand pounds
new orleans has basset hounds
thousand-pound
hundred-percent profits
that magic and using the bank for money to finance minister the faxes
rising market memorial bharata
the goal of raising a profit
the level of death
available for details
became very very funny
and what was really on comfortable
was that not only was it a higher level of test
but every passing month if you could get more and more debt
with death sentence
dealmakers were borrowing
mindboggling amounts
to invest in financial markets
view property
having commodities
divided tire companies
thanks for coming to lend
multiples of treatment from
the pasts
five six years have been and treated and the contents of cheap
quite frankly
and have the benefits
benefit from that absolutely
you know illegality look you can put their effort i and so will take a bit of
what the school year with
and fixed on how to sell
britain was a pretty good place to create
because since nineteen ninety seven
labor has tried to make united kingdom thailand
for the new super rich
well i think first of all you've got
you've got to thank your lucky stars if you are an economy which has the vibrant
a successful industries too disappointed degree because their adopted generating
wealth but you can do something with so if they don't have the wealth generated
that you can do something with the most of the wealth generated tool
there was a time however
without prime minister was explicitly hostile to the side yes
factual should favor the super-rich
paratroopers
for most of the free for a millionaire
fees offshore season
through and refrigeration whether you're there for the state or preferably itself
but all of our changed his mind
said that the favorites favorite
if they have to pay the same by the fact that the rest of us
addict indictment of the statement of why i think i think i think this is all
right for the rest of us twelve fourteen thousand eva frightful of
for the benefits that by the crew
do you want the best people in the world
to come here because this panel from the clusters and
multiply the fake of
they're building businesses within our country is phenomenal
the final after this new world right here
we've had the extreme case they're all and people in my district
who've literally lived in the country of more than forty years
they claim to be normal missile went over a little touch
not seems to me both politically and he did indeed take some time to the world
morally
uh... from the repugnant
even some of the super-rich began to question whether it's
they should be taxed lower rates
the best sevens
there's lots of things but by industry i don't work
quite frankly
but i think that will be speaking of speaking personally now dot
for what it is the because the potential bidders pay lower
tax-rate on for a detailed
the uh... you know
basically their office as it is just palpably absurd
by the start of the twenty first century these two factors
the power of leverage unlike taxes for enterprise day up to a new set of
business income powers i'm on the part of private equity funds and borrow huge
sums of money to buy all companies
product which he has demonstrated that if you
going into uh... situations in the company sector
with clarity of purpose
strong drive determination a readiness to pay people incentives to do the
difficult things you can make big returns i can you make bigger shows
particularly when there's lots of cheap money run the place
under fire the the their success was
over amplified magnified by they've
uh... mockery with your heart of their operating in which uh... made them very
lucky
uh... unsound i suspect me so there is a strong jobs kicked test summer britain's
best-known businesses have been taken over and so loved by private equity tub
billions in profits
d_a_r_e_
socha
handbags
then travel lodge
the technique used by private party goodbye companies with borrowed money is
also employed by city cream
he has much to the british are straight
workings topshop
wallets heartland rejects
has a nice last days of real estate is a gradually over
republican excess of two hundred million
well went proceed
the equivalent of the page of fifty-four thousand british workers on average
earnings
and that would mean a tax preparer
because it was received by his tax exile life maybe three
extraordinary
if economic growth
and confident since this is the the critical factor sent
confidence was very high
the masters of the universe seemed to be getting it right they had been producing
extraordinary high profits
creek returns from a private confront
it happened
private equity making
millions out of our economic
did have a lot
profit live
the fact that money by cutting off
price for it
borrowed money and leverage to generate
take control of the company
neutron school
it's a very difficult reaches of companies
says that there is a very different uh...
and how much do you know in a management internship with a ten billion dollars
introns arnold
now and financial system
there's a lot of them
and they manage a great deal of money
and they're not regulated by lunch there are usually not sure distinctions where
they are not regulated
why would uh... say that the top three trading institutions in the u_s_
treasury market which is the largest securities market will
horrified hedge funds than the banks
the only serious risk for a hedge fund
visited the consistently loses money
their backers will take their funds back
you can do was mommy
you're about to make a mistake once but if it's a bad one your you you've gone
it's a very franchise i mean you're there is a high return in-depth industry
yes but uh... you could dorsal very quickly moves to the appetite
for risk of that confident you or the interest of clients
so it's a very serious easier very
not think it's taken for granted because you are about to meet with cake i mean
who hair
at management lineup
now we have uh... roamed
four-point to billion dollars
using funds from wealthy investors and huge amounts of colored cash
lawful force you to be the cumulative by hedge fund managers
didn't see it doesn't and six an estimated ten of them and more than five
hundred million dollars each
five evolved to a child's is more than nine hundred million dollars him as a
single year
they included george soros consistent winner who famously medicating when he
sold the problem a colossal scale and help before stepping out of european
exchange rate mechanism in nineteen ninety two
the average persons ignacio
much benefit from the boom
the super bowl
in the last twenty years hideously didi
at the plank needy
to who have really either earned the enormous amounts of of money
lack
really
dispirited h can beat captured it starts
said perhaps this is the symbol of all that jet fuel financial excess
damien hirst for the love of god
the glittering death's head
in crusted with eight thousand six hundred one diamonds is said to be
insulted investment consortium for fifty million pounds
details of its sale are shrouded in secrecy has also many of the
transactions of the new super rich
what's it's intrinsic value
it's quite an argument about that
who actually owns it
new ones seems quite sure
many ways
linklater antique and acuity seems to be captured
perfectly the spirits of the safety of the easy money
one reason why so much cash with pouring into the pockets
for the start of the new financial industries wisdom a structure
leg designs
values wrote the rules of this weekend so they could
ladies
so it turned out that most of us
the money making skills
private equity and had fun stuff
incidents at rather impressionist but there are a lot of talk that backers of
the listing phase
visa newsreader fund managers
performing extremely well thank god
said it you gave them
opinion optus
and if they can't two billion was that's a big impromptu office
they'd take twenty percent of that
at first success fee
exhibition
admitting to take off of the city is the fact is money for managing it
of private equity index fund stars and lots more
and basically it is the cynthia on all funds under management past twenty
percent of all profits
this with jack watch capitalism
salon is on your age structure consists of certain it's impressive attributed to
one like that
if it makes a great deal of money manhattan gets is twenty percent
possible uh... if it is my this news
uh... passing want to go up and that leads to an teams in some cases and
literally hundreds of millions of dollars in the hands of individuals
they're unlikely to change if you don't have a lot to do it for a billion
chauffeur billion mahatma half-a-billion
he got a twenty percent karen tricia longer brilliant
he published telling so to forty million out of it and fees
recent private equity
judges what i consider to be high levels of fees is the relatively few people in
the private equity
world and the relatively few new entrance into that world it's going to
read combination of of skittles
and the results of financial results votes of the industry is able to
delivered to its investors means that the investors a continuing to pay those
fees
not only with award massive but um... that with wildlife
using part money but taking twenty percent of the gangs but legal
all the losses for the original investor
of what the gas about it right now
wasn't pretty
do you think we got the better some people in that period
islanders create i think it might have been busy as a
uh... and uh... i think in every cycle it always works the same
people who are doing something to do it more and more of it
they lose uh... a little of of their grounded
uh... in terms of the amount of risk uh... that they're taking
the cultural war going off of from hedge funds and private equity firms worth i
huge
the big bags so much of that time of the facts about
so the banks say you had to offer them off the maximum creating employees the
opportunity to pop in around twenty percent of the games
individual bank does not have the opportunity to play the green gave their
organizations money
these particular respond when you get back to the central point
the main things which have driven people's ability to learn that
remuneration not every single case but the majority of cases have been two
things
above-market
and access to the next capital
this on their own interesting
what's a minimum do you think in the last two or three years
who fear the mediocre middle ranking trader or investment banker
one of the big houses would have expected to take a m you're probably
talking about the million dollar-plus
and the circumstances
but how hard figure
there isn't any limit
as the grief
game intensified
other professionals to early days
they were a_t_f_ to facilitate the fields which would bring
rather than ours
or quick questions about
all back
with being a tell the system
everybody else children
the investment banks who was selling companies
uh... the attempt to ensure increasingly doing less and less work
to make deals happen quicker and easier
lawyers who are finding their way through difficult areas
uh... by pretending there were no everybody contributed it was a big
and people made a lot of money believes many deals as big a deal as quickly as
they could
if you are on wall street investment banker making three million dollars
you were on top of the world u_n_ master of the universe suddenly that banker
making three million dollars is looking at the hedge fund i who used to work
with
making three billion dollars or maybe one billion dollars
eight-year
so it's created this big class warfare and andy between when i call the hands
and a half morris
many of the have more dealer visceral design protested very artsy evidently a
hazard
so there's quite an interesting catering to their needs for those little extras
jaldi to provide what they want however eccentrics
typically use to you first of all settled for them
polly's one essays are sometimes patients
to pay for this time
dot net
graduated or anyone else that i a satisfaction from what the f_a_a_ or a
quarter of a texan accent
with a price on it which is clearly the son of gopac equity particular extensive
off aswell
also on my b_b_c_ sardar anyway
catholic press souls
natural gas
have there's something else that each of the state
place and definitely difference going to be found at the capitol records of the
cost of privatizing a
one of our lands for last week
and hostile for headsets feist
attached
flightstats 'cause it has enormous yes socialized nobody can tell you know
minds and hearts we just have cost asap
we have to come up with more more
who experiences whether it be living with a truck in the sahara for six weeks
to challenge yourself from the mental state uh... streets a unite reclining
climbing everest
we have a valentine's day extreme event where you can have sapo wife
on my square
in the office
to walk onto bill
spinoff time votes probably is in the great description investors
that off larger than most homes that have been into
that are two hundred feet long
that can only go into limited ports because they'll need to be ports can
handle them
to walk into state with the fact that you think you were in the palace of the
seidel buckingham palace or the white house
is pretty amazing in every time i walk onto one of these these boats and have
the opportunity to tour the mic continues to take my breath away
with such a bill
in full swing by two thousand six it looked like nothing could stand in the
white of the players in the very day
and yet very methods they use to make all that money contain falls with
stumble them
derail the world's biggest economy and calls mayhem for the bags on which way
it all depends
low-interest rates didn't just make it cheap to borrow
they gave me a little incentive to say
this had significant consequences for the banks was needed to raise money to
me inexhaustible appetite allowance
the first thing is that we have to significant decline in savings rates
and so the deposits
uh... fail
the banks could not necessarily provide all the funding for the products they
they they got the amount for simply from deposits
obsolete had to look for other forms of funding
and one of the forms of funding wall street package some of the assets they
have
sell them onto the market
get cash for that because their trust in the assets away
in in this way they have no more cash and we can start lending again
is there an american
wall street bags started by setting
good quality leads to raise money and
that looked at what else could be sold
there was this machine
wall street created which was really remarkable
and they kept on pressing this technology
to the point where
uh... they said well
primary disrupt work
how about
we extend this technology to include last credit worthy
homebuyers
with no income verification
no bank statements
no tax returns
and which is known to humans regional green-line financial services gives you
the killings
individuals often those with the words to credit histories when given the
opportunity tomorrow merrimack cherished param
may win that it has some prime borrowers and they would surely frantic attempts
to lend to the
ads would be you know
literally
just released from prison
never happened john
can't document that we will review the nervous system
please come down we would like but more would you
in cleveland ohio
the mortgage brokers wouldn't let any opportunity delicate missions slip away
they came out of my job that was a snowy day
and i was told by one of the house i had decided there on the spot so i just
signed hurriedly i was looking up to a place for my children and myself and i
was like the design if you don't have a home so i just signed
them mortgage brokers which supplied sub-prime loans into the likes of elena
hall
is didn't keep those words all of that have books
big capital for the israelis came from banks on wall street
off to the lambs have been made say with
sold by the bags
out of profit
to investors who might be
thousands of miles away in europe
or asia
the new model
says hi megan
in packaging dot please send it on to somebody else it's gone it's quickly as
possible
and
there is new
on the daily milk viewing
involvement or relationship or responsibility
on behalf of the nineteen ninety
every time a mortgage was given
the break that to the commission
everytime there's no reason to sold all by the banks the extended the credits
the bags but the profits up because the banks and sold the risk of that meant
going back to someone else there was a little proper incentive to impose
prophets checks what the borrowers rarely have the means to repay that debt
sub-prime you go from four times a week ago eight times lincoln
you go from jack in the interest in not checking the income
from doing proper valuation sheet to using google as and postcodes to value
hashish
which was done
undeserved review was driven fall too far you now
killer market
yeah
it
there was a florence of cash for sub-prime loans
thanks to wolf banking breakthroughs called structured finally
which turned into risky loans it supposedly say investments
this artwork
here off for a way to be some private borrowers
affair and that's usually by investments created from
that religious
why invest a lot less
one white
and i love that
taking risks
normally manjula sub-prime borrowers
dot is a great innovation in the structured finance which persuades the
leader risk investment consultant tendons
cement towards some parlors
i don't have a bag of popcorn protect alex these story
is that the other and clear
renew investment opportunities
that was the name
hasn't done that yet
i promise that he'll get bus did on one
and i can see if you save uh... basically borrowers
and because he's getting first dibs on the couch he thinks the money he's
investing or let me get this site this can be
at least a lady in red the investment banker five promise that he'll get the
second life
and i'm not progress who runs the headstock
she'll get what embers left at that
is unlikely event
although i've always been a long time
the foreign investors all the very nice day
one of our identity difficulties
most of us feel that what happened to my message was still pretty happy
and all of them trying
their whole facing lawsuits company assets especially has to know
many hundreds of billions of dollars
of nerve quality sub-prime loans which transformed in this way influence
and they were sold to investors
all over the world
there was a worldwide for mobile
this for us
really was taken out of
foster
okay massachusetts
release rentals analyze that the finest around the world
and what was the motivation best-selling quite so much debt
faces the street
uh... quickly frankly
but by repackaged into these words out of people's we could
that yet again
folklore the fees are accused of support for today is
but the sofa interest being moved forward in this process the market was
booming so if you go back to two thousand six abt you're probably talking
one point seven one point deep trillion
of market volume
uh... not only
my bank but
many banks
talking about the overall market
that's a significant amount
bugs so everything is falls ative borders uh... weighs five going on
silky overall market potential
most of the world's big bags
from citigroup and merrill lynch in the u_s_
royal bank of scotland and boxes with that he needed to make profits by
turning risky sub-prime loans
vividly high quality investments
a situation where a guy who's organizing bank draft
to take home a bonus quite literally forty times his salary
uh... dust biased behavior
the guys wanted to do jails
everybody has to get on board
for you
they couldn't do the fuse to play
because if they did today wouldn't have been bankers the banks would have
lost clients and so the markets come to help
they have to go to access itself
overall where euphoria and despair
but that quality of the investments with
not what the bankers thought it was
because of more of a bar was good
vaulted the bags back to you
is ready for this
that moves the third is that this is the
goddard
master degree minimum twelve injections a week now we're getting ninety
goes julia that
meters
novelist is april problems
within weeks of each other literally
sub-prime borrowers in the millions and think you know manages bisexual leather
and he's the rains
midnight tomorrow and orlando worrying about the problem what happened with the
letter raids came to an engine
bronwen raids roads and well but many default was inevitable
original tree offer
mattimoe holes monthly payments and went down by a painful seventy five in the
sense in
miles and impression that i have fixed rate at six twenty five amount
i had no idea that i had variable rate that would escalating every three to six
months
mortgage went from six hundred and twenty five dollars a month
to one thousand ninety eight dollars a month you good borrower under two cents
of of of the debt without any questions asked and in the that these iterate
that with that really quite deceptive
the regulatory p zero he angry
used again waiting
the essence of good banking firm and let me have been the lender is supposed to
jiang whether the borrower can actually removed her name
there'd be no
when i grow up and i looked back and uh... i was in nineteen eighty
what used to have would you went to see a bank manager department and delayed
money and make sure the anti-tobacco fortunately paid back
as soon as you can force those two things you're in trouble
invest stampede to do deals
ranking alexander's could be done
that for years the danger was ignored because bulldozed orgy legs had been
converted into investments that had a should bombay you're eighteen which in
the positing the always meant
that they will not just saying
when something is rated
new financial community triple-a
the assumption of everyone
is that he just didn't go along
linda mullenix in finance which is
now get in
p close to forty years
uh... i'd never seen a triple-a
uh... default
uh... triple a_'s
don't default
triple a_'s
or like exxon and royal dutch shell uh... they're very few triple a_'s and
and they do not
but just how impartial where the agency's middle warranties triple-a
ratings
after all they would be great by the bags which wanted to sell the
investments as double a
novelist would hide the fact that uh... paid by the issues of the bombs
and
doesn't create a potential conflict of interest
uh... what we would point out though is that
we have a number of ways of managing the conflict to insure the integrity of the
work that we do
but when you get in the journal a brazen debate uses didn't
actually getting back to the sub-prime borrowers and schecter they'd be able to
repay their loans
we did not do underline divisions within one month missions given to us
the invested community was aware of that rabin with papa and five
eventually
the simplest oldest financial lodging in the reassert itself
defend people forget about borrowing money did you go to pay it back
because it'll be without me and my father's a fifth
and some believe the bikes going to come see have the money back
and a_b_c_ although it was a nice house
which isn't quite file used for the people who have been there for a need to
say look different
you know couple
on inches
the fact that the rating agencies have been soon
clever for their own good
they've got a spectacle a ratings on historical data they look at how many
sub-prime loans have gone back in the market was tiny and use that information
to try to make how many would default as the market grew andrew andrew
it's turned out to be a catastrophic era
the red line to ours
november sixth
here you go
which included first dates for the very procedure petty people who have bartlett
of the first time in six months after boring underpaying
the first interest that's pretty significant
but first a defollets peace treaty was one-and-a-half percent one to two
percent
in a matter of fame on such figure jumped five six percent
that was a key aside when you have the burden of debt and that they should be
worried
default rates web
brown's arise sub-prime loans shut off from being what it every fifteen u_s_
mortgages in two thousand one to one in every
old by two thousand six
these days is known as the kids in general
money was transferred to my daughter
that was the end of the problem down but i had to do everything that you
mentioned and control because i really didn't want them to know what was
actually being
done
and the whole wide
thousands of others and comp adding that has been may have missed blow ever see
myself a little another home
but just don't see that don't trust them i was looking over my shoulder
people are going to have my best interesting was only on four dollars
he has already shown the bankers
sub-prime loans would getting bad
faster than many other kind of lonely bina cody unprecedented way
be in the past decades usable was the case that digital population would be
fourth and everything else
in order to keep their hospital quite possible contact
note by the french to default on upon only uh... collins
and then finally before coming
the keeping the credit card currents and the defaulting on their mortgage first
this is never been seen before
web us terrible losses from solve problems could no longer be ignored
the whole of the war was separate investments made out of some primaries
horrible awakening
the forecast two thousand and seven th fabric french bag
b_n_p_ about a balanced budget global financial panic
waited announced that it could rally with holdings of investments created
from some primaries
when b_n_p_ camera knew this was a move saying extendable children deported to
lebanon
factory came
locked into the lead to each other because they've left shoulder which if
it were holding the sub-prime poison
and what they would have i guess that money back
them multi threaded into all of money markets have found up in the global
economy fees down
the speed at which it happened
the way in which institution actually she shouldn't stress you know withdrew
from the market because they were worried
i think that was unprecedented
and it surprised uh... politicians is apprised regulators uncertain surprised
the banks
so while children that fishes circle
lack of confidence that lack of trust like it you know you don't know who's
holding the problem
everybody then like lemmings run for cover
once people got scared
they they started
being less happy tooling to each other
this has been in the city to to work with each other and a gain
that itself with the tools of threat to peace
specifically
the securities gained entrance was that possess
fear of shallow
if you ever responded that that uh... this is a theoretical
okay should i say yes the fact that people did not know the full exposure to
soft money real or to see very whatever his support if you don't do something
defeat was rationed
once the river of money still flowing with banks and financial institutions
like the lead to each other
there was a very high profile casualty in britain
one of britain's biggest mortgage lenders needs emergency support from the
bank of england
norman rockwell has problems raising money because of the crisis in the
financial markets
capsule indicators no suggestion
the discoveries businesses fundamentally past but me anyone in out of money in
this way uh... for a package extraordinary singers
the company was very successful
because it was taking a tremendous amount of risk
northern rocker went to the brink of insolvency
because it's a business was dependent on raising money by selling its mortgages
to international investors
and when investors were burned by losses on sub-prime
fuse to bite anymore which is
northern rocks
or anyone else's
they were actually
possessed owners capital to survive approximately along
shut down from the capital markets
banks across the world
germany
switzerland and the u_s_
tens of billions of dollars and i've had to be bailed out by governments or by
investors would
pockets
just west bank you me and says it's something too much maybe along his than
anticipated
because of its exposure to the sub-prime mortgage market in the united states
died barclays said intergroup multi one point six billion pounds of risky
investments
related to u_s_ mortgages level credit crisis has deepened with americans
fifty largest investment bank on-scene from nineteen c funding
their stance which has been hit by the u_s_ housing market slump has been
bailed out by now the bank and the federal reserve
some of the bank is responsible for the financial losses
cut into their jobs
bonuses
of investment bankers have been a full drastically now that you're discovering
that a lot of the banks investment banks that they can billions of dollars worth
of write-offs and these people are getting kicked out unceremoniously out
of that helps
cash for those companies for five private equity
what it takes about two months debts bad experience difficulties which would be
bad news for the investors
uh... employees
there are some clear examples of loans which part looking dreadful now
some of the leveraged buyouts time font face the return of countrywide estate
agent
the loans on those companies are being dealt with regularly now
at discounts of a quart role more to the face value
so clearly there are some problems out there
but many of the cigarettes
creative unsustainable do acidification
there are a lot of people have made
enormous amounts of money created great by him
hummed i'm afraid they're not going to get hurt greatly by what's happening now
hands there is so i understand at the moment for example
quotation or should should uh... car and
uh... hotel rooms and the caravan
uh... mauritius and similar places and
these people are not available in with a lot of money
having traveled so much the super-rich apparently have a problem
many of us would lower
very thought that people very liquid
over the loss of money
the last ten years
in fact probably find it quite difficult to spend the money they for
malta and and that's why companies like us something that's for a successful
because we open so in the morning
dashed thanked me for companies that have to decent submitted quantities of
these very expensive products
today trotman factions within the disneyworld for us the profit pizza
launched last year
if you would walk into the world's most people today people not to use would
maybe get one two years
and through the whole time in this half truths and sentences that changing
anytime soon
and amount for the most expensive motoring experience on earth
doesn't seem to rebecca rated
the car is he not only the most expensive
processed car on the planet
but it's also one of the most usable cox
the customer
campaigns one point one million meals
plus tax index consciously second to none
but which have been
the best you in market and they still are the best to united
family
the second to the u_s_
uh... outfits dealership in the world
passing on the list of the world is checked back in london
david a simple art in the street
price cutting isn't on the agenda
for one million dollars
cannot be affected bynoe quite
the extreme
mainstreamed setting
at the one
daewoo bullets
always been
demand for what dot i want
that is for sure
and if you want to do
what's left
and you want to go see
starts with one new york
for first place
that your thing
the reason the super-rich could feel safe
is that the gavel safe a complete about people's money that these says he used
to the authorities
prevails about four of the damage to the rest of us could face chrysler's
these people who operate in the financial markets
best mart they know it
that they ought to big to fail
they know who that bill participle right to their rescue
everywhere all
long the line
barrel one-way acts
this means
but you are incentivize
to take the risks
you'll reedy
the bigger the risk you take
the bigger profits yourself
and it's been stepped back to me
almost
not all problem you'll problem you pick up the mess
this semester and added all of us they are
the losses incurred five bags
hedge funds insurers artifacts or businesses which could reach three
trillion dollars
coverage used their willingness till end two any of us paddling damage the global
financial system it's as though the mechanism for injecting few it into the
economy has broken down and when that happens
week old stuff up
i think it's a mistake for the within easy then stood up like today and that
they don't have any sub-prime mortgages or cut front debt obligations or even
equity so it was about to that
and if it was all
and the that the credit creation process is at the heart of everything and uh...
com uh...
without but you cannot get normal functioning and uh... i think the uh...
the damage is being done to the is duclh managed assistant sub
we talk about the average home
uh... around and uh... worker in the and its impact on them
they probably will find a bit more which cost more
and whatever the absolute level of interest rates if they're unlucky they
made fun of the jobs affected by this is well i think there are some some very
severe rule will be effects on people's ability to to borrow how banks have less
money so enjoy smoking that challenging role for what they were oleg
marketing the falls in housing probably prices resurrects osteo aura
and west creating a missions and our with borrowed as we spend less and the
economy slows down distant translate that into have
what it means for
ordinary people arab if people
borrowing less
saving more
that'll translate into
slow growth does it does it translates into a serious recession in your view
i don't expect it worldwide
resection
i do expect intersection in the united states
the separate coverage
cannot be predicted
as a result of recent
budget changes
the british tax system may no longer be places favorable to the d_c_ bridge
visit walence
the water fountain
slightly income and wealth gap between the cigarettes from the rest of us
florio the world circulated
if well secure related out of people growing company successfully
hospice generally code it's hard to come up with a real negative on that
it on the other hand it's some guy his made all of his money out of making two
or three huge financial batch
then the social implications of much wider
because those but will the role as well as right
and when they are and will be a lot of victims of the guys who was uh... social
and political issues
so that the deluged with a hundred million hamptons
and being the promote uh... over leverage structures
that's a political issues cause a lot of donations go very rich i think it uh...
an economy which is characterized
by extremes of wealth
is not a secure
and safe economy anymore then one economy versus another economy
extremes of well-spent income
people are starting to very serious
moral risks
that might not match the if we could be confident that lessons are being learned
from the crisis
always see is that america's central bank the federal reserve is once it gets
passing interest rates and pumping cash into the system
out there
stopped the whole point of this process
you happy
boom-bust process similar to
many that we have had in the last
decades
combat v_'s also the end
alva suburban
that has lasted since the end of the second world war
from time to time
marcus don't correct themselves we have a crisis
and then the authorities have to defeat
and injected d_d_t_ and be allowed to feeling institutions
and and activities and this system of
a symmetric
uh... incentives where
delighting courage
the to leverage
but in fifteen zero or wrong
theories vividly
that is in charge of the system
cop there were a lot of all the times that way
absolves the basic played a great day but actually meant ads
safety incentivize to take
davis rests
other people's money and the hot
also holds
date eleven eighty ext
article itself
if you set up a have basically mean racial structure where people get paid
to twenty percent of the gains from playing with other people's money animal
partial will possibly they prepare to make them than anything from the and he
was just need to change the structure that susan and get their attention
and losing the jury that structure doesn't really want a group of people
have attained can change any structure like that and i think that's the others
uh... this is a matter of uh... so long as people are willing to be shareholders
in banks where traders are allowed to play with the banks capital and walk off
with twenty points at its end of the of the games on it and none of the losses
am i'm wicked winter invested private equity hedge funds it'll have the same
thing to occur people come up
if you're a hedge fund or a private equity firm
there are fantastic opportunities to profit from the turmoil
number of hedge funds have already made
betting that always self-pride investments were overvalued
and some of them very nicely them speculating the share prices of our
leading banks would tumble
as for private equity whatever session would be just a minute
loneliest time to buy businesses knock down prices
is it's actually a period of tremendous opportunity for for my yes it's it's
really it's uh... it's if it's gonna be a great opportunity
the the the real golden age comes when you have a mess
uh... you have a common means that our on their back
uh... you know um... capital are
uh... inadequate
uh... and and when you start buying business isn't that partner cycle that
you would have to bleed do extremely well unless you too early by and and
uh... right now it's a little bit too early uh... but but as you wait uh...
and this develops it'll be a great time
uh... to be buying businesses
so there is still plenty of opportunities for the new civil rights
to increase their fortunes
even though the global financial system is in intensive care
out prosperity is threatened
when the lieutenant still being placed
if we are not well enough but it is again
into being with them