1
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channel-surfing accumulates in the u_k_

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we have depressed

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we keep being told

4
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that the way the super-rich create
wealth makes all of us

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well f_a_a_'s better off

6
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good jossy

7
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this time around debuts new fed differ
from actual techniques to enrich

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themselves

9
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and right now

10
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vanity winners

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he seemed to be done

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five david tell you how to use it for
rich bomb-making therefore choose and

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why we ask

14
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picking up the bill

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in a global agreed today

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in the past few years the city of london
financial services

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that contributed a friend of bold our
economic growth

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london's is the capital of capitals

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london for the international community
was a beautiful city

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unless the people in the end of the
uh... the clinton soon too

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start responses perhaps it's got the
blast

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fifty-something tells expenses

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that's a fix it real

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there's not going for it

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more than fifty billion as corporate and
higher

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lots of the nineteenth century evidence
socks opportunities for so many tonight

27
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quite so much money

28
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at least thirty thousand brits i'll have
more than half a billion pounds a year

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in two thousand six four thousand two
hundred city executives took up by the

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feminine or more

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i don't have funds allotted a hundred
and fifty people have been adding more

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than twenty million pounds a year

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the only other period we have seen
similar accumulation

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with during the industrial revolution in
the victorian age when the whole

35
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rafter victorian industrialists uh...

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make massive fortunes very quickly but
even that was over apparently of forty

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or fifty years

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this has been

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in the last ten

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when you're coming in with several
billion pounds

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we travel around and homeowners guarded
by people in the past two years the idea

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of the congestion charge is wonderful to
be dictates the road to the rest

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you can get out to a private airfield
quickly

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to get on your captain can see offline
operations popular and hot

45
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and they've created

46
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gestures of friday this week spence's
properties

47
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this house is not on that

48
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recently sold for fifty million pounds

49
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you were there will be spending

50
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probably another profession

51
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would be the most desirable house

52
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and just outside london is this a brand
new twenty six bedroom mansion

53
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eight on the market now over seventy
million pounds but if they're running

54
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costs of over a million a year

55
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that made any complicated as the

56
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for the vivien leigh

57
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even says the developer knows me on the
back yard

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tried his best replaced

59
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citizen private setting poses simply for
the end of the house of mexico's the end

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of the house wants to allows people to
use it

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on sweeps week

62
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why would you want

63
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itself i close effect except popat
ladies affect

64
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schools you genuinely needs like food

65
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this fall so there is about eight
hundred square foot putting it into

66
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perspective is about size of the average
two bedroom flat in london

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says it's not so

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to appease the postage is amazing

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together

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a n_f_l_ holidays in my head

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self-help all these people that got
distal five

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online last about finding the resources
or exploiting technology

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are life function

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and they work

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helped to become wealthy beyond anyone's
wildest dreams by a sharp fall in the

76
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cost of money but then at all of us
engineered by the u_s_

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deal with

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it sets interest rates for america

79
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and in a way

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for the world

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back here september day

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the american economy was already
faltering offer the best thing of the

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dot com bubble

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them then

85
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the world's most powerful central banker
alan greenspan feared the terrorist

86
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operation would further undermine the
confidence of businesses and consumers

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said he can't

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interest rates on

89
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usually lead

90
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american interest rates were tonight
cuts bhaiya hov of one percent the

91
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federal reserve base rate now stands
that's just one of the course of this is

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the lowest the forty one years

93
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off to the best thing of the dot com for
both

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at nine eleven

95
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greenspan's slashed rates for just one
percent

96
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and the supply of credits all physical
race exporting nations such as japan

97
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china as those of the middle east which
generated cost surface is fine lead

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much of a cash flow house in the west
for that is too low

99
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became cheap safari money anywhere

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for private individuals and especially
for businesses tycoons and financial

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institutions

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they went on the most friend mexican
borrowing three the world is c with so

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much money starting around half the
price of assets competi the houses to

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retire companies soldiers five thousand
pounds

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so people barroom more

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begins the inflated family without sets

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the valuation of property the valuation
of shares

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part

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jewelry

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et cetera was story

111
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and the central banks on the whole set
this is not our business

112
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we didn't manage

113
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passes

114
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we only manage price inflation

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with all his life for involve some
strength that smoke

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rate tonight and it is unfortunate

117
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it's all faxes kal using leverage

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leverage is simply ball rolling to
invest

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you're not investing your own money

120
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uh... or you investing part of your own
money but you wore all to invest more

121
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uh... so that's simply that's leverage
is borrowing to invest

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when we or all for a mortgage

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we leverage

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as simple as that

125
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the power of the leverage to multiply
profits is that

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common experience from the end of it

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japa house

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if you put down a ten thousand pound of
politics

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when buying up

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borrowed the other ninety thousand

131
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on that house the

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right

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ten thousand pounds

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new orleans has basset hounds

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thousand-pound

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hundred-percent profits

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that magic and using the bank for money
to finance minister the faxes

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rising market memorial bharata

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the goal of raising a profit

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the level of death

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available for details

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became very very funny

143
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and what was really on comfortable

144
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was that not only was it a higher level
of test

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but every passing month if you could get
more and more debt

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with death sentence

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dealmakers were borrowing

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mindboggling amounts

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to invest in financial markets

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view property

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having commodities

152
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divided tire companies

153
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thanks for coming to lend

154
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multiples of treatment from

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the pasts

156
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five six years have been and treated and
the contents of cheap

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quite frankly

158
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and have the benefits

159
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benefit from that absolutely

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you know illegality look you can put
their effort i and so will take a bit of

161
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what the school year with

162
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and fixed on how to sell

163
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britain was a pretty good place to
create

164
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because since nineteen ninety seven

165
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labor has tried to make united kingdom
thailand

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for the new super rich

167
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well i think first of all you've got

168
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you've got to thank your lucky stars if
you are an economy which has the vibrant

169
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a successful industries too disappointed
degree because their adopted generating

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wealth but you can do something with so
if they don't have the wealth generated

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that you can do something with the most
of the wealth generated tool

172
00:10:03,190 --> 00:10:04,750
there was a time however

173
00:10:04,750 --> 00:10:08,740
without prime minister was explicitly
hostile to the side yes

174
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factual should favor the super-rich

175
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paratroopers

176
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for most of the free for a millionaire

177
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fees offshore season

178
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through and refrigeration whether you're
there for the state or preferably itself

179
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but all of our changed his mind

180
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said that the favorites favorite

181
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if they have to pay the same by the fact
that the rest of us

182
00:10:34,489 --> 00:10:38,329
addict indictment of the statement of
why i think i think i think this is all

183
00:10:38,329 --> 00:10:42,620
right for the rest of us twelve fourteen
thousand eva frightful of

184
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for the benefits that by the crew

185
00:10:46,290 --> 00:10:48,890
do you want the best people in the world

186
00:10:48,890 --> 00:10:52,390
to come here because this panel from the
clusters and

187
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multiply the fake of

188
00:10:54,340 --> 00:10:58,110
they're building businesses within our
country is phenomenal

189
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the final after this new world right
here

190
00:11:01,140 --> 00:11:05,150
we've had the extreme case they're all
and people in my district

191
00:11:05,150 --> 00:11:08,860
who've literally lived in the country of
more than forty years

192
00:11:08,860 --> 00:11:12,010
they claim to be normal missile went
over a little touch

193
00:11:12,010 --> 00:11:16,330
not seems to me both politically and he
did indeed take some time to the world

194
00:11:16,330 --> 00:11:17,590
morally

195
00:11:17,590 --> 00:11:24,590
uh... from the repugnant

196
00:11:25,350 --> 00:11:29,590
even some of the super-rich began to
question whether it's

197
00:11:29,590 --> 00:11:32,029
they should be taxed lower rates

198
00:11:32,029 --> 00:11:36,220
the best sevens

199
00:11:36,220 --> 00:11:38,430
there's lots of things but by industry i
don't work

200
00:11:38,430 --> 00:11:39,400
quite frankly

201
00:11:39,400 --> 00:11:42,760
but i think that will be speaking of
speaking personally now dot

202
00:11:42,760 --> 00:11:46,140
for what it is the because the potential
bidders pay lower

203
00:11:46,140 --> 00:11:48,160
tax-rate on for a detailed

204
00:11:48,160 --> 00:11:49,770
the uh... you know

205
00:11:49,770 --> 00:11:55,980
basically their office as it is just
palpably absurd

206
00:11:55,980 --> 00:11:59,550
by the start of the twenty first century
these two factors

207
00:11:59,550 --> 00:12:04,750
the power of leverage unlike taxes for
enterprise day up to a new set of

208
00:12:04,750 --> 00:12:09,550
business income powers i'm on the part
of private equity funds and borrow huge

209
00:12:09,550 --> 00:12:13,050
sums of money to buy all companies

210
00:12:13,050 --> 00:12:15,700
product which he has demonstrated that
if you

211
00:12:15,700 --> 00:12:20,180
going into uh... situations in the
company sector

212
00:12:20,180 --> 00:12:23,050
with clarity of purpose

213
00:12:23,050 --> 00:12:27,370
strong drive determination a readiness
to pay people incentives to do the

214
00:12:27,370 --> 00:12:31,840
difficult things you can make big
returns i can you make bigger shows

215
00:12:31,840 --> 00:12:34,870
particularly when there's lots of cheap
money run the place

216
00:12:34,870 --> 00:12:37,810
under fire the the their success was

217
00:12:37,810 --> 00:12:41,180
over amplified magnified by they've

218
00:12:41,180 --> 00:12:45,870
uh... mockery with your heart of their
operating in which uh... made them very

219
00:12:45,870 --> 00:12:46,920
lucky

220
00:12:46,920 --> 00:12:53,350
uh... unsound i suspect me so there is a
strong jobs kicked test summer britain's

221
00:12:53,350 --> 00:12:58,160
best-known businesses have been taken
over and so loved by private equity tub

222
00:12:58,160 --> 00:13:01,540
billions in profits

223
00:13:01,540 --> 00:13:02,949
d_a_r_e_

224
00:13:02,950 --> 00:13:04,140
socha

225
00:13:04,140 --> 00:13:05,380
handbags

226
00:13:05,380 --> 00:13:08,650
then travel lodge

227
00:13:08,650 --> 00:13:13,449
the technique used by private party
goodbye companies with borrowed money is

228
00:13:13,450 --> 00:13:15,980
also employed by city cream

229
00:13:15,980 --> 00:13:21,860
he has much to the british are straight

230
00:13:21,860 --> 00:13:23,400
workings topshop

231
00:13:23,400 --> 00:13:25,940
wallets heartland rejects

232
00:13:25,940 --> 00:13:29,330
has a nice last days of real estate is a
gradually over

233
00:13:29,330 --> 00:13:32,410
republican excess of two hundred million

234
00:13:32,410 --> 00:13:38,089
well went proceed

235
00:13:38,090 --> 00:13:42,130
the equivalent of the page of fifty-four
thousand british workers on average

236
00:13:42,130 --> 00:13:43,670
earnings

237
00:13:43,670 --> 00:13:46,350
and that would mean a tax preparer

238
00:13:46,350 --> 00:13:52,770
because it was received by his tax exile
life maybe three

239
00:13:52,770 --> 00:13:53,959
extraordinary

240
00:13:53,959 --> 00:13:55,820
if economic growth

241
00:13:55,820 --> 00:14:00,219
and confident since this is the the
critical factor sent

242
00:14:00,219 --> 00:14:02,260
confidence was very high

243
00:14:02,260 --> 00:14:07,350
the masters of the universe seemed to be
getting it right they had been producing

244
00:14:07,350 --> 00:14:09,630
extraordinary high profits

245
00:14:09,630 --> 00:14:16,160
creek returns from a private confront

246
00:14:16,160 --> 00:14:17,640
it happened

247
00:14:17,640 --> 00:14:19,110
private equity making

248
00:14:19,110 --> 00:14:20,970
millions out of our economic

249
00:14:20,970 --> 00:14:24,350
did have a lot

250
00:14:24,350 --> 00:14:25,810
profit live

251
00:14:25,810 --> 00:14:27,519
the fact that money by cutting off

252
00:14:27,519 --> 00:14:34,519
price for it

253
00:14:34,780 --> 00:14:41,780
borrowed money and leverage to generate

254
00:14:42,610 --> 00:14:44,940
take control of the company

255
00:14:44,940 --> 00:14:47,440
neutron school

256
00:14:47,440 --> 00:14:49,750
it's a very difficult reaches of
companies

257
00:14:49,750 --> 00:14:52,730
says that there is a very different
uh...

258
00:14:52,730 --> 00:14:57,130
and how much do you know in a management
internship with a ten billion dollars

259
00:14:57,130 --> 00:14:58,749
introns arnold

260
00:14:58,749 --> 00:15:00,330
now and financial system

261
00:15:00,330 --> 00:15:01,580
there's a lot of them

262
00:15:01,580 --> 00:15:04,100
and they manage a great deal of money

263
00:15:04,100 --> 00:15:07,770
and they're not regulated by lunch there
are usually not sure distinctions where

264
00:15:07,770 --> 00:15:09,430
they are not regulated

265
00:15:09,430 --> 00:15:13,300
why would uh... say that the top three
trading institutions in the u_s_

266
00:15:13,300 --> 00:15:16,370
treasury market which is the largest
securities market will

267
00:15:16,370 --> 00:15:19,580
horrified hedge funds than the banks

268
00:15:19,580 --> 00:15:22,219
the only serious risk for a hedge fund

269
00:15:22,219 --> 00:15:24,690
visited the consistently loses money

270
00:15:24,690 --> 00:15:30,750
their backers will take their funds back

271
00:15:30,750 --> 00:15:32,720
you can do was mommy

272
00:15:32,720 --> 00:15:38,470
you're about to make a mistake once but
if it's a bad one your you you've gone

273
00:15:38,470 --> 00:15:42,990
it's a very franchise i mean you're
there is a high return in-depth industry

274
00:15:42,990 --> 00:15:49,040
yes but uh... you could dorsal very
quickly moves to the appetite

275
00:15:49,040 --> 00:15:53,120
for risk of that confident you or the
interest of clients

276
00:15:53,120 --> 00:15:58,070
so it's a very serious easier very

277
00:15:58,070 --> 00:16:02,320
not think it's taken for granted because
you are about to meet with cake i mean

278
00:16:02,320 --> 00:16:03,910
who hair

279
00:16:03,910 --> 00:16:05,870
at management lineup

280
00:16:05,870 --> 00:16:08,520
now we have uh... roamed

281
00:16:08,520 --> 00:16:14,079
four-point to billion dollars

282
00:16:14,080 --> 00:16:19,280
using funds from wealthy investors and
huge amounts of colored cash

283
00:16:19,280 --> 00:16:26,280
lawful force you to be the cumulative by
hedge fund managers

284
00:16:26,730 --> 00:16:30,590
didn't see it doesn't and six an
estimated ten of them and more than five

285
00:16:30,590 --> 00:16:32,440
hundred million dollars each

286
00:16:32,440 --> 00:16:36,950
five evolved to a child's is more than
nine hundred million dollars him as a

287
00:16:36,950 --> 00:16:39,480
single year

288
00:16:39,480 --> 00:16:44,820
they included george soros consistent
winner who famously medicating when he

289
00:16:44,820 --> 00:16:49,940
sold the problem a colossal scale and
help before stepping out of european

290
00:16:49,940 --> 00:16:53,920
exchange rate mechanism in nineteen
ninety two

291
00:16:53,920 --> 00:16:57,220
the average persons ignacio

292
00:16:57,220 --> 00:16:59,430
much benefit from the boom

293
00:16:59,430 --> 00:17:00,950
the super bowl

294
00:17:00,950 --> 00:17:05,209
in the last twenty years hideously didi

295
00:17:05,209 --> 00:17:06,900
at the plank needy

296
00:17:06,900 --> 00:17:13,900
to who have really either earned the
enormous amounts of of money

297
00:17:21,030 --> 00:17:24,210
lack

298
00:17:24,210 --> 00:17:26,870
really

299
00:17:26,870 --> 00:17:30,020
dispirited h can beat captured it starts

300
00:17:30,020 --> 00:17:35,230
said perhaps this is the symbol of all
that jet fuel financial excess

301
00:17:35,230 --> 00:17:38,580
damien hirst for the love of god

302
00:17:38,580 --> 00:17:40,520
the glittering death's head

303
00:17:40,520 --> 00:17:45,040
in crusted with eight thousand six
hundred one diamonds is said to be

304
00:17:45,040 --> 00:17:49,990
insulted investment consortium for fifty
million pounds

305
00:17:49,990 --> 00:17:54,799
details of its sale are shrouded in
secrecy has also many of the

306
00:17:54,799 --> 00:17:57,440
transactions of the new super rich

307
00:17:57,440 --> 00:17:59,430
what's it's intrinsic value

308
00:17:59,430 --> 00:18:01,550
it's quite an argument about that

309
00:18:01,550 --> 00:18:03,110
who actually owns it

310
00:18:03,110 --> 00:18:06,240
new ones seems quite sure

311
00:18:06,240 --> 00:18:07,429
many ways

312
00:18:07,429 --> 00:18:10,860
linklater antique and acuity seems to be
captured

313
00:18:10,860 --> 00:18:17,380
perfectly the spirits of the safety of
the easy money

314
00:18:17,380 --> 00:18:21,919
one reason why so much cash with pouring
into the pockets

315
00:18:21,919 --> 00:18:26,140
for the start of the new financial
industries wisdom a structure

316
00:18:26,140 --> 00:18:28,190
leg designs

317
00:18:28,190 --> 00:18:31,180
values wrote the rules of this weekend
so they could

318
00:18:31,180 --> 00:18:32,120
ladies

319
00:18:32,120 --> 00:18:36,120
so it turned out that most of us

320
00:18:36,120 --> 00:18:37,840
the money making skills

321
00:18:37,840 --> 00:18:39,970
private equity and had fun stuff

322
00:18:39,970 --> 00:18:44,570
incidents at rather impressionist but
there are a lot of talk that backers of

323
00:18:44,570 --> 00:18:47,460
the listing phase

324
00:18:47,460 --> 00:18:52,060
visa newsreader fund managers

325
00:18:52,060 --> 00:18:55,750
performing extremely well thank god

326
00:18:55,750 --> 00:18:58,330
said it you gave them

327
00:18:58,330 --> 00:19:00,570
opinion optus

328
00:19:00,570 --> 00:19:05,850
and if they can't two billion was that's
a big impromptu office

329
00:19:05,850 --> 00:19:08,270
they'd take twenty percent of that

330
00:19:08,270 --> 00:19:13,020
at first success fee

331
00:19:13,020 --> 00:19:13,930
exhibition

332
00:19:13,930 --> 00:19:18,410
admitting to take off of the city is the
fact is money for managing it

333
00:19:18,410 --> 00:19:21,190
of private equity index fund stars and
lots more

334
00:19:21,190 --> 00:19:25,049
and basically it is the cynthia on all
funds under management past twenty

335
00:19:25,049 --> 00:19:26,710
percent of all profits

336
00:19:26,710 --> 00:19:32,540
this with jack watch capitalism

337
00:19:32,540 --> 00:19:36,770
salon is on your age structure consists
of certain it's impressive attributed to

338
00:19:36,770 --> 00:19:37,790
one like that

339
00:19:37,790 --> 00:19:40,430
if it makes a great deal of money
manhattan gets is twenty percent

340
00:19:40,430 --> 00:19:43,600
possible uh... if it is my this news

341
00:19:43,600 --> 00:19:47,720
uh... passing want to go up and that
leads to an teams in some cases and

342
00:19:47,720 --> 00:19:50,830
literally hundreds of millions of
dollars in the hands of individuals

343
00:19:50,830 --> 00:19:54,770
they're unlikely to change if you don't
have a lot to do it for a billion

344
00:19:54,770 --> 00:19:57,510
chauffeur billion mahatma half-a-billion

345
00:19:57,510 --> 00:20:00,879
he got a twenty percent karen tricia
longer brilliant

346
00:20:00,880 --> 00:20:04,850
he published telling so to forty million
out of it and fees

347
00:20:04,850 --> 00:20:06,690
recent private equity

348
00:20:06,690 --> 00:20:10,730
judges what i consider to be high levels
of fees is the relatively few people in

349
00:20:10,730 --> 00:20:12,280
the private equity

350
00:20:12,280 --> 00:20:16,920
world and the relatively few new
entrance into that world it's going to

351
00:20:16,920 --> 00:20:19,610
read combination of of skittles

352
00:20:19,610 --> 00:20:24,230
and the results of financial results
votes of the industry is able to

353
00:20:24,230 --> 00:20:27,930
delivered to its investors means that
the investors a continuing to pay those

354
00:20:27,930 --> 00:20:29,530
fees

355
00:20:29,530 --> 00:20:35,149
not only with award massive but um...
that with wildlife

356
00:20:35,150 --> 00:20:39,269
using part money but taking twenty
percent of the gangs but legal

357
00:20:39,269 --> 00:20:41,679
all the losses for the original investor

358
00:20:41,679 --> 00:20:43,780
of what the gas about it right now

359
00:20:43,780 --> 00:20:45,920
wasn't pretty

360
00:20:45,920 --> 00:20:48,590
do you think we got the better some
people in that period

361
00:20:48,590 --> 00:20:51,309
islanders create i think it might have
been busy as a

362
00:20:51,309 --> 00:20:55,330
uh... and uh... i think in every cycle
it always works the same

363
00:20:55,330 --> 00:20:58,710
people who are doing something to do it
more and more of it

364
00:20:58,710 --> 00:21:02,520
they lose uh... a little of of their
grounded

365
00:21:02,520 --> 00:21:09,160
uh... in terms of the amount of risk
uh... that they're taking

366
00:21:09,160 --> 00:21:13,299
the cultural war going off of from hedge
funds and private equity firms worth i

367
00:21:13,299 --> 00:21:14,620
huge

368
00:21:14,620 --> 00:21:17,910
the big bags so much of that time of the
facts about

369
00:21:17,910 --> 00:21:22,320
so the banks say you had to offer them
off the maximum creating employees the

370
00:21:22,320 --> 00:21:25,960
opportunity to pop in around twenty
percent of the games

371
00:21:25,960 --> 00:21:29,700
individual bank does not have the
opportunity to play the green gave their

372
00:21:29,700 --> 00:21:32,320
organizations money

373
00:21:32,320 --> 00:21:36,720
these particular respond when you get
back to the central point

374
00:21:36,720 --> 00:21:39,680
the main things which have driven
people's ability to learn that

375
00:21:39,680 --> 00:21:42,950
remuneration not every single case but
the majority of cases have been two

376
00:21:42,950 --> 00:21:43,940
things

377
00:21:43,940 --> 00:21:45,100
above-market

378
00:21:45,100 --> 00:21:47,179
and access to the next capital

379
00:21:47,179 --> 00:21:48,880
this on their own interesting

380
00:21:48,880 --> 00:21:51,960
what's a minimum do you think in the
last two or three years

381
00:21:51,960 --> 00:21:57,840
who fear the mediocre middle ranking
trader or investment banker

382
00:21:57,840 --> 00:22:01,350
one of the big houses would have
expected to take a m you're probably

383
00:22:01,350 --> 00:22:04,140
talking about the million dollar-plus

384
00:22:04,140 --> 00:22:05,429
and the circumstances

385
00:22:05,429 --> 00:22:07,390
but how hard figure

386
00:22:07,390 --> 00:22:10,880
there isn't any limit

387
00:22:10,880 --> 00:22:11,700
as the grief

388
00:22:11,700 --> 00:22:13,429
game intensified

389
00:22:13,429 --> 00:22:15,929
other professionals to early days

390
00:22:15,929 --> 00:22:19,820
they were a_t_f_ to facilitate the
fields which would bring

391
00:22:19,820 --> 00:22:20,979
rather than ours

392
00:22:20,979 --> 00:22:22,539
or quick questions about

393
00:22:22,539 --> 00:22:24,149
all back

394
00:22:24,149 --> 00:22:27,000
with being a tell the system

395
00:22:27,000 --> 00:22:28,870
everybody else children

396
00:22:28,870 --> 00:22:31,990
the investment banks who was selling
companies

397
00:22:31,990 --> 00:22:36,440
uh... the attempt to ensure increasingly
doing less and less work

398
00:22:36,440 --> 00:22:39,039
to make deals happen quicker and easier

399
00:22:39,039 --> 00:22:42,919
lawyers who are finding their way
through difficult areas

400
00:22:42,919 --> 00:22:47,660
uh... by pretending there were no
everybody contributed it was a big

401
00:22:47,660 --> 00:22:52,090
and people made a lot of money believes
many deals as big a deal as quickly as

402
00:22:52,090 --> 00:22:56,090
they could

403
00:22:56,090 --> 00:23:00,879
if you are on wall street investment
banker making three million dollars

404
00:23:00,880 --> 00:23:06,060
you were on top of the world u_n_ master
of the universe suddenly that banker

405
00:23:06,060 --> 00:23:10,919
making three million dollars is looking
at the hedge fund i who used to work

406
00:23:10,920 --> 00:23:11,690
with

407
00:23:11,690 --> 00:23:15,510
making three billion dollars or maybe
one billion dollars

408
00:23:15,510 --> 00:23:16,330
eight-year

409
00:23:16,330 --> 00:23:21,668
so it's created this big class warfare
and andy between when i call the hands

410
00:23:21,669 --> 00:23:24,350
and a half morris

411
00:23:24,350 --> 00:23:29,730
many of the have more dealer visceral
design protested very artsy evidently a

412
00:23:29,730 --> 00:23:30,990
hazard

413
00:23:30,990 --> 00:23:36,470
so there's quite an interesting catering
to their needs for those little extras

414
00:23:36,470 --> 00:23:42,760
jaldi to provide what they want however
eccentrics

415
00:23:42,760 --> 00:23:46,550
typically use to you first of all
settled for them

416
00:23:46,550 --> 00:23:53,090
polly's one essays are sometimes
patients

417
00:23:53,090 --> 00:23:54,240
to pay for this time

418
00:23:54,240 --> 00:23:55,360
dot net

419
00:23:55,360 --> 00:23:59,470
graduated or anyone else that i a
satisfaction from what the f_a_a_ or a

420
00:23:59,470 --> 00:24:03,960
quarter of a texan accent

421
00:24:03,960 --> 00:24:07,810
with a price on it which is clearly the
son of gopac equity particular extensive

422
00:24:07,810 --> 00:24:09,230
off aswell

423
00:24:09,230 --> 00:24:13,000
also on my b_b_c_ sardar anyway

424
00:24:13,000 --> 00:24:15,399
catholic press souls

425
00:24:15,399 --> 00:24:16,600
natural gas

426
00:24:16,600 --> 00:24:19,300
have there's something else that each of
the state

427
00:24:19,300 --> 00:24:25,440
place and definitely difference going to
be found at the capitol records of the

428
00:24:25,440 --> 00:24:32,440
cost of privatizing a

429
00:24:32,789 --> 00:24:34,879
one of our lands for last week

430
00:24:34,880 --> 00:24:38,360
and hostile for headsets feist

431
00:24:38,360 --> 00:24:40,660
attached

432
00:24:40,660 --> 00:24:47,640
flightstats 'cause it has enormous yes
socialized nobody can tell you know

433
00:24:47,640 --> 00:24:52,450
minds and hearts we just have cost asap

434
00:24:52,450 --> 00:24:54,220
we have to come up with more more

435
00:24:54,220 --> 00:24:59,070
who experiences whether it be living
with a truck in the sahara for six weeks

436
00:24:59,070 --> 00:25:04,510
to challenge yourself from the mental
state uh... streets a unite reclining

437
00:25:04,510 --> 00:25:06,010
climbing everest

438
00:25:06,010 --> 00:25:11,950
we have a valentine's day extreme event
where you can have sapo wife

439
00:25:11,950 --> 00:25:13,220
on my square

440
00:25:13,220 --> 00:25:16,490
in the office

441
00:25:16,490 --> 00:25:17,670
to walk onto bill

442
00:25:17,670 --> 00:25:22,100
spinoff time votes probably is in the
great description investors

443
00:25:22,100 --> 00:25:25,250
that off larger than most homes that
have been into

444
00:25:25,250 --> 00:25:27,450
that are two hundred feet long

445
00:25:27,450 --> 00:25:30,770
that can only go into limited ports
because they'll need to be ports can

446
00:25:30,770 --> 00:25:31,920
handle them

447
00:25:31,920 --> 00:25:34,980
to walk into state with the fact that
you think you were in the palace of the

448
00:25:34,980 --> 00:25:37,470
seidel buckingham palace or the white
house

449
00:25:37,470 --> 00:25:40,790
is pretty amazing in every time i walk
onto one of these these boats and have

450
00:25:40,790 --> 00:25:46,700
the opportunity to tour the mic
continues to take my breath away

451
00:25:46,700 --> 00:25:47,960
with such a bill

452
00:25:47,960 --> 00:25:52,640
in full swing by two thousand six it
looked like nothing could stand in the

453
00:25:52,640 --> 00:25:55,500
white of the players in the very day

454
00:25:55,500 --> 00:26:00,540
and yet very methods they use to make
all that money contain falls with

455
00:26:00,540 --> 00:26:01,850
stumble them

456
00:26:01,850 --> 00:26:06,850
derail the world's biggest economy and
calls mayhem for the bags on which way

457
00:26:06,850 --> 00:26:09,370
it all depends

458
00:26:09,370 --> 00:26:12,519
low-interest rates didn't just make it
cheap to borrow

459
00:26:12,519 --> 00:26:15,110
they gave me a little incentive to say

460
00:26:15,110 --> 00:26:19,770
this had significant consequences for
the banks was needed to raise money to

461
00:26:19,770 --> 00:26:24,639
me inexhaustible appetite allowance

462
00:26:24,640 --> 00:26:29,500
the first thing is that we have to
significant decline in savings rates

463
00:26:29,500 --> 00:26:31,309
and so the deposits

464
00:26:31,309 --> 00:26:32,720
uh... fail

465
00:26:32,720 --> 00:26:37,810
the banks could not necessarily provide
all the funding for the products they

466
00:26:37,810 --> 00:26:41,399
they they got the amount for simply from
deposits

467
00:26:41,400 --> 00:26:44,230
obsolete had to look for other forms of
funding

468
00:26:44,230 --> 00:26:48,090
and one of the forms of funding wall
street package some of the assets they

469
00:26:48,090 --> 00:26:48,960
have

470
00:26:48,960 --> 00:26:51,269
sell them onto the market

471
00:26:51,269 --> 00:26:54,660
get cash for that because their trust in
the assets away

472
00:26:54,660 --> 00:27:01,660
in in this way they have no more cash
and we can start lending again

473
00:27:02,580 --> 00:27:03,870
is there an american

474
00:27:03,870 --> 00:27:06,360
wall street bags started by setting

475
00:27:06,360 --> 00:27:09,139
good quality leads to raise money and

476
00:27:09,139 --> 00:27:13,320
that looked at what else could be sold

477
00:27:13,320 --> 00:27:14,820
there was this machine

478
00:27:14,820 --> 00:27:18,120
wall street created which was really
remarkable

479
00:27:18,120 --> 00:27:20,760
and they kept on pressing this
technology

480
00:27:20,760 --> 00:27:22,510
to the point where

481
00:27:22,510 --> 00:27:23,820
uh... they said well

482
00:27:23,820 --> 00:27:25,960
primary disrupt work

483
00:27:25,960 --> 00:27:27,050
how about

484
00:27:27,050 --> 00:27:30,570
we extend this technology to include
last credit worthy

485
00:27:30,570 --> 00:27:31,870
homebuyers

486
00:27:31,870 --> 00:27:33,550
with no income verification

487
00:27:33,550 --> 00:27:35,290
no bank statements

488
00:27:35,290 --> 00:27:36,940
no tax returns

489
00:27:36,940 --> 00:27:40,810
and which is known to humans regional
green-line financial services gives you

490
00:27:40,810 --> 00:27:42,110
the killings

491
00:27:42,110 --> 00:27:46,350
individuals often those with the words
to credit histories when given the

492
00:27:46,350 --> 00:27:51,470
opportunity tomorrow merrimack cherished
param

493
00:27:51,470 --> 00:27:56,789
may win that it has some prime borrowers
and they would surely frantic attempts

494
00:27:56,789 --> 00:27:59,210
to lend to the

495
00:27:59,210 --> 00:28:00,929
ads would be you know

496
00:28:00,929 --> 00:28:02,300
literally

497
00:28:02,300 --> 00:28:03,810
just released from prison

498
00:28:03,810 --> 00:28:05,290
never happened john

499
00:28:05,290 --> 00:28:08,730
can't document that we will review the
nervous system

500
00:28:08,730 --> 00:28:13,380
please come down we would like but more
would you

501
00:28:13,380 --> 00:28:14,900
in cleveland ohio

502
00:28:14,900 --> 00:28:21,900
the mortgage brokers wouldn't let any
opportunity delicate missions slip away

503
00:28:22,170 --> 00:28:24,990
they came out of my job that was a snowy
day

504
00:28:24,990 --> 00:28:30,000
and i was told by one of the house i had
decided there on the spot so i just

505
00:28:30,000 --> 00:28:34,210
signed hurriedly i was looking up to a
place for my children and myself and i

506
00:28:34,210 --> 00:28:39,150
was like the design if you don't have a
home so i just signed

507
00:28:39,150 --> 00:28:45,080
them mortgage brokers which supplied
sub-prime loans into the likes of elena

508
00:28:45,080 --> 00:28:45,639
hall

509
00:28:45,640 --> 00:28:49,080
is didn't keep those words all of that
have books

510
00:28:49,080 --> 00:28:52,949
big capital for the israelis came from
banks on wall street

511
00:28:52,950 --> 00:28:55,559
off to the lambs have been made say with

512
00:28:55,559 --> 00:28:56,850
sold by the bags

513
00:28:56,850 --> 00:28:57,950
out of profit

514
00:28:57,950 --> 00:28:59,679
to investors who might be

515
00:28:59,679 --> 00:29:02,380
thousands of miles away in europe

516
00:29:02,380 --> 00:29:03,760
or asia

517
00:29:03,760 --> 00:29:05,120
the new model

518
00:29:05,120 --> 00:29:06,370
says hi megan

519
00:29:06,370 --> 00:29:10,890
in packaging dot please send it on to
somebody else it's gone it's quickly as

520
00:29:10,890 --> 00:29:11,720
possible

521
00:29:11,720 --> 00:29:12,500
and

522
00:29:12,500 --> 00:29:14,720
there is new

523
00:29:14,720 --> 00:29:17,419
on the daily milk viewing

524
00:29:17,419 --> 00:29:20,280
involvement or relationship or
responsibility

525
00:29:20,280 --> 00:29:24,799
on behalf of the nineteen ninety

526
00:29:24,799 --> 00:29:26,810
every time a mortgage was given

527
00:29:26,810 --> 00:29:28,840
the break that to the commission

528
00:29:28,840 --> 00:29:32,960
everytime there's no reason to sold all
by the banks the extended the credits

529
00:29:32,960 --> 00:29:37,610
the bags but the profits up because the
banks and sold the risk of that meant

530
00:29:37,610 --> 00:29:42,179
going back to someone else there was a
little proper incentive to impose

531
00:29:42,179 --> 00:29:49,179
prophets checks what the borrowers
rarely have the means to repay that debt

532
00:29:50,080 --> 00:29:54,049
sub-prime you go from four times a week
ago eight times lincoln

533
00:29:54,049 --> 00:29:57,379
you go from jack in the interest in not
checking the income

534
00:29:57,380 --> 00:30:02,920
from doing proper valuation sheet to
using google as and postcodes to value

535
00:30:02,920 --> 00:30:04,120
hashish

536
00:30:04,120 --> 00:30:05,820
which was done

537
00:30:05,820 --> 00:30:11,200
undeserved review was driven fall too
far you now

538
00:30:11,200 --> 00:30:13,700
killer market

539
00:30:13,700 --> 00:30:14,369
yeah

540
00:30:14,369 --> 00:30:17,929
it

541
00:30:17,929 --> 00:30:21,539
there was a florence of cash for
sub-prime loans

542
00:30:21,539 --> 00:30:25,370
thanks to wolf banking breakthroughs
called structured finally

543
00:30:25,370 --> 00:30:31,400
which turned into risky loans it
supposedly say investments

544
00:30:31,400 --> 00:30:33,530
this artwork

545
00:30:33,530 --> 00:30:38,629
here off for a way to be some private
borrowers

546
00:30:38,630 --> 00:30:42,260
affair and that's usually by investments
created from

547
00:30:42,260 --> 00:30:44,629
that religious

548
00:30:44,630 --> 00:30:46,400
why invest a lot less

549
00:30:46,400 --> 00:30:47,990
one white

550
00:30:47,990 --> 00:30:49,580
and i love that

551
00:30:49,580 --> 00:30:51,360
taking risks

552
00:30:51,360 --> 00:30:54,610
normally manjula sub-prime borrowers

553
00:30:54,610 --> 00:30:58,770
dot is a great innovation in the
structured finance which persuades the

554
00:30:58,770 --> 00:31:01,810
leader risk investment consultant
tendons

555
00:31:01,810 --> 00:31:05,450
cement towards some parlors

556
00:31:05,450 --> 00:31:09,090
i don't have a bag of popcorn protect
alex these story

557
00:31:09,090 --> 00:31:11,539
is that the other and clear

558
00:31:11,539 --> 00:31:14,250
renew investment opportunities

559
00:31:14,250 --> 00:31:15,700
that was the name

560
00:31:15,700 --> 00:31:17,159
hasn't done that yet

561
00:31:17,159 --> 00:31:20,719
i promise that he'll get bus did on one

562
00:31:20,719 --> 00:31:24,770
and i can see if you save uh...
basically borrowers

563
00:31:24,770 --> 00:31:28,450
and because he's getting first dibs on
the couch he thinks the money he's

564
00:31:28,450 --> 00:31:32,140
investing or let me get this site this
can be

565
00:31:32,140 --> 00:31:36,040
at least a lady in red the investment
banker five promise that he'll get the

566
00:31:36,040 --> 00:31:37,510
second life

567
00:31:37,510 --> 00:31:40,340
and i'm not progress who runs the
headstock

568
00:31:40,340 --> 00:31:44,480
she'll get what embers left at that

569
00:31:44,480 --> 00:31:46,640
is unlikely event

570
00:31:46,640 --> 00:31:49,470
although i've always been a long time

571
00:31:49,470 --> 00:31:53,230
the foreign investors all the very nice
day

572
00:31:53,230 --> 00:31:55,150
one of our identity difficulties

573
00:31:55,150 --> 00:32:00,470
most of us feel that what happened to my
message was still pretty happy

574
00:32:00,470 --> 00:32:02,660
and all of them trying

575
00:32:02,660 --> 00:32:09,660
their whole facing lawsuits company
assets especially has to know

576
00:32:13,639 --> 00:32:16,249
many hundreds of billions of dollars

577
00:32:16,249 --> 00:32:23,249
of nerve quality sub-prime loans which
transformed in this way influence

578
00:32:24,920 --> 00:32:26,850
and they were sold to investors

579
00:32:26,850 --> 00:32:29,289
all over the world

580
00:32:29,289 --> 00:32:31,170
there was a worldwide for mobile

581
00:32:31,170 --> 00:32:32,290
this for us

582
00:32:32,290 --> 00:32:34,250
really was taken out of

583
00:32:34,250 --> 00:32:35,179
foster

584
00:32:35,179 --> 00:32:39,210
okay massachusetts

585
00:32:39,210 --> 00:32:45,900
release rentals analyze that the finest
around the world

586
00:32:45,900 --> 00:32:51,179
and what was the motivation best-selling
quite so much debt

587
00:32:51,179 --> 00:32:52,390
faces the street

588
00:32:52,390 --> 00:32:53,779
uh... quickly frankly

589
00:32:53,779 --> 00:32:57,260
but by repackaged into these words out
of people's we could

590
00:32:57,260 --> 00:32:58,830
that yet again

591
00:32:58,830 --> 00:33:01,790
folklore the fees are accused of support
for today is

592
00:33:01,790 --> 00:33:05,300
but the sofa interest being moved
forward in this process the market was

593
00:33:05,300 --> 00:33:11,170
booming so if you go back to two
thousand six abt you're probably talking

594
00:33:11,170 --> 00:33:14,580
one point seven one point deep trillion

595
00:33:14,580 --> 00:33:16,440
of market volume

596
00:33:16,440 --> 00:33:17,919
uh... not only

597
00:33:17,919 --> 00:33:18,980
my bank but

598
00:33:18,980 --> 00:33:20,100
many banks

599
00:33:20,100 --> 00:33:22,059
talking about the overall market

600
00:33:22,059 --> 00:33:24,100
that's a significant amount

601
00:33:24,100 --> 00:33:30,860
bugs so everything is falls ative
borders uh... weighs five going on

602
00:33:30,860 --> 00:33:35,390
silky overall market potential

603
00:33:35,390 --> 00:33:37,299
most of the world's big bags

604
00:33:37,299 --> 00:33:40,560
from citigroup and merrill lynch in the
u_s_

605
00:33:40,560 --> 00:33:44,790
royal bank of scotland and boxes with
that he needed to make profits by

606
00:33:44,790 --> 00:33:47,629
turning risky sub-prime loans

607
00:33:47,630 --> 00:33:51,170
vividly high quality investments

608
00:33:51,170 --> 00:33:54,630
a situation where a guy who's organizing
bank draft

609
00:33:54,630 --> 00:33:59,120
to take home a bonus quite literally
forty times his salary

610
00:33:59,120 --> 00:34:02,180
uh... dust biased behavior

611
00:34:02,180 --> 00:34:05,420
the guys wanted to do jails

612
00:34:05,420 --> 00:34:07,350
everybody has to get on board

613
00:34:07,350 --> 00:34:11,719
for you

614
00:34:11,719 --> 00:34:14,240
they couldn't do the fuse to play

615
00:34:14,240 --> 00:34:18,429
because if they did today wouldn't have
been bankers the banks would have

616
00:34:18,429 --> 00:34:22,449
lost clients and so the markets come to
help

617
00:34:22,449 --> 00:34:24,859
they have to go to access itself

618
00:34:24,859 --> 00:34:28,359
overall where euphoria and despair

619
00:34:28,359 --> 00:34:30,779
but that quality of the investments with

620
00:34:30,780 --> 00:34:33,169
not what the bankers thought it was

621
00:34:33,168 --> 00:34:35,060
because of more of a bar was good

622
00:34:35,060 --> 00:34:38,119
vaulted the bags back to you

623
00:34:38,119 --> 00:34:39,769
is ready for this

624
00:34:39,769 --> 00:34:46,769
that moves the third is that this is the

625
00:34:48,099 --> 00:34:55,099
goddard

626
00:34:56,529 --> 00:35:01,749
master degree minimum twelve injections
a week now we're getting ninety

627
00:35:01,749 --> 00:35:03,399
goes julia that

628
00:35:03,399 --> 00:35:05,828
meters

629
00:35:05,829 --> 00:35:08,959
novelist is april problems

630
00:35:08,959 --> 00:35:12,359
within weeks of each other literally

631
00:35:12,359 --> 00:35:17,029
sub-prime borrowers in the millions and
think you know manages bisexual leather

632
00:35:17,029 --> 00:35:18,510
and he's the rains

633
00:35:18,510 --> 00:35:22,730
midnight tomorrow and orlando worrying
about the problem what happened with the

634
00:35:22,730 --> 00:35:25,029
letter raids came to an engine

635
00:35:25,029 --> 00:35:32,029
bronwen raids roads and well but many
default was inevitable

636
00:35:32,359 --> 00:35:33,750
original tree offer

637
00:35:33,750 --> 00:35:38,030
mattimoe holes monthly payments and went
down by a painful seventy five in the

638
00:35:38,030 --> 00:35:40,119
sense in

639
00:35:40,119 --> 00:35:44,109
miles and impression that i have fixed
rate at six twenty five amount

640
00:35:44,109 --> 00:35:48,919
i had no idea that i had variable rate
that would escalating every three to six

641
00:35:48,919 --> 00:35:50,979
months

642
00:35:50,979 --> 00:35:53,880
mortgage went from six hundred and
twenty five dollars a month

643
00:35:53,880 --> 00:35:58,629
to one thousand ninety eight dollars a
month you good borrower under two cents

644
00:35:58,629 --> 00:36:04,920
of of of the debt without any questions
asked and in the that these iterate

645
00:36:04,920 --> 00:36:08,389
that with that really quite deceptive

646
00:36:08,389 --> 00:36:11,770
the regulatory p zero he angry

647
00:36:11,770 --> 00:36:14,349
used again waiting

648
00:36:14,349 --> 00:36:18,469
the essence of good banking firm and let
me have been the lender is supposed to

649
00:36:18,469 --> 00:36:21,619
jiang whether the borrower can actually
removed her name

650
00:36:21,619 --> 00:36:24,539
there'd be no

651
00:36:24,539 --> 00:36:27,880
when i grow up and i looked back and
uh... i was in nineteen eighty

652
00:36:27,880 --> 00:36:30,880
what used to have would you went to see
a bank manager department and delayed

653
00:36:30,880 --> 00:36:34,289
money and make sure the anti-tobacco
fortunately paid back

654
00:36:34,289 --> 00:36:38,899
as soon as you can force those two
things you're in trouble

655
00:36:38,899 --> 00:36:41,449
invest stampede to do deals

656
00:36:41,449 --> 00:36:45,380
ranking alexander's could be done

657
00:36:45,380 --> 00:36:50,490
that for years the danger was ignored
because bulldozed orgy legs had been

658
00:36:50,490 --> 00:36:54,420
converted into investments that had a
should bombay you're eighteen which in

659
00:36:54,420 --> 00:36:56,650
the positing the always meant

660
00:36:56,650 --> 00:37:00,519
that they will not just saying

661
00:37:00,519 --> 00:37:02,319
when something is rated

662
00:37:02,319 --> 00:37:05,829
new financial community triple-a

663
00:37:05,829 --> 00:37:07,939
the assumption of everyone

664
00:37:07,939 --> 00:37:11,029
is that he just didn't go along

665
00:37:11,029 --> 00:37:14,779
linda mullenix in finance which is

666
00:37:14,779 --> 00:37:15,660
now get in

667
00:37:15,660 --> 00:37:17,439
p close to forty years

668
00:37:17,439 --> 00:37:19,940
uh... i'd never seen a triple-a

669
00:37:19,940 --> 00:37:21,469
uh... default

670
00:37:21,469 --> 00:37:23,119
uh... triple a_'s

671
00:37:23,119 --> 00:37:24,250
don't default

672
00:37:24,250 --> 00:37:25,310
triple a_'s

673
00:37:25,310 --> 00:37:31,810
or like exxon and royal dutch shell
uh... they're very few triple a_'s and

674
00:37:31,810 --> 00:37:35,749
and they do not

675
00:37:35,749 --> 00:37:40,289
but just how impartial where the
agency's middle warranties triple-a

676
00:37:40,289 --> 00:37:41,739
ratings

677
00:37:41,739 --> 00:37:44,910
after all they would be great by the
bags which wanted to sell the

678
00:37:44,910 --> 00:37:47,089
investments as double a

679
00:37:47,089 --> 00:37:51,279
novelist would hide the fact that uh...
paid by the issues of the bombs

680
00:37:51,280 --> 00:37:52,370
and

681
00:37:52,370 --> 00:37:55,118
doesn't create a potential conflict of
interest

682
00:37:55,119 --> 00:37:57,669
uh... what we would point out though is
that

683
00:37:57,669 --> 00:38:02,069
we have a number of ways of managing the
conflict to insure the integrity of the

684
00:38:02,069 --> 00:38:03,650
work that we do

685
00:38:03,650 --> 00:38:07,130
but when you get in the journal a brazen
debate uses didn't

686
00:38:07,130 --> 00:38:11,059
actually getting back to the sub-prime
borrowers and schecter they'd be able to

687
00:38:11,059 --> 00:38:13,139
repay their loans

688
00:38:13,139 --> 00:38:18,419
we did not do underline divisions within
one month missions given to us

689
00:38:18,419 --> 00:38:25,419
the invested community was aware of that
rabin with papa and five

690
00:38:25,449 --> 00:38:26,659
eventually

691
00:38:26,659 --> 00:38:33,639
the simplest oldest financial lodging in
the reassert itself

692
00:38:33,639 --> 00:38:39,459
defend people forget about borrowing
money did you go to pay it back

693
00:38:39,459 --> 00:38:42,598
because it'll be without me and my
father's a fifth

694
00:38:42,599 --> 00:38:46,379
and some believe the bikes going to come
see have the money back

695
00:38:46,379 --> 00:38:49,868
and a_b_c_ although it was a nice house

696
00:38:49,869 --> 00:38:53,729
which isn't quite file used for the
people who have been there for a need to

697
00:38:53,729 --> 00:38:55,200
say look different

698
00:38:55,200 --> 00:38:56,449
you know couple

699
00:38:56,449 --> 00:38:58,689
on inches

700
00:38:58,689 --> 00:39:01,350
the fact that the rating agencies have
been soon

701
00:39:01,350 --> 00:39:03,469
clever for their own good

702
00:39:03,469 --> 00:39:07,429
they've got a spectacle a ratings on
historical data they look at how many

703
00:39:07,429 --> 00:39:11,359
sub-prime loans have gone back in the
market was tiny and use that information

704
00:39:11,359 --> 00:39:17,149
to try to make how many would default as
the market grew andrew andrew

705
00:39:17,149 --> 00:39:21,368
it's turned out to be a catastrophic era

706
00:39:21,369 --> 00:39:22,700
the red line to ours

707
00:39:22,700 --> 00:39:25,319
november sixth

708
00:39:25,319 --> 00:39:28,199
here you go

709
00:39:28,199 --> 00:39:33,499
which included first dates for the very
procedure petty people who have bartlett

710
00:39:33,499 --> 00:39:36,629
of the first time in six months after
boring underpaying

711
00:39:36,629 --> 00:39:39,479
the first interest that's pretty
significant

712
00:39:39,479 --> 00:39:44,130
but first a defollets peace treaty was
one-and-a-half percent one to two

713
00:39:44,130 --> 00:39:45,269
percent

714
00:39:45,269 --> 00:39:48,339
in a matter of fame on such figure
jumped five six percent

715
00:39:48,339 --> 00:39:51,939
that was a key aside when you have the
burden of debt and that they should be

716
00:39:51,939 --> 00:39:55,319
worried

717
00:39:55,319 --> 00:39:56,670
default rates web

718
00:39:56,670 --> 00:40:01,630
brown's arise sub-prime loans shut off
from being what it every fifteen u_s_

719
00:40:01,630 --> 00:40:05,020
mortgages in two thousand one to one in
every

720
00:40:05,020 --> 00:40:12,020
old by two thousand six

721
00:40:12,879 --> 00:40:16,919
these days is known as the kids in
general

722
00:40:16,919 --> 00:40:19,589
money was transferred to my daughter

723
00:40:19,589 --> 00:40:22,449
that was the end of the problem down but
i had to do everything that you

724
00:40:22,449 --> 00:40:26,579
mentioned and control because i really
didn't want them to know what was

725
00:40:26,579 --> 00:40:28,819
actually being

726
00:40:28,819 --> 00:40:29,979
done

727
00:40:29,979 --> 00:40:31,440
and the whole wide

728
00:40:31,440 --> 00:40:36,790
thousands of others and comp adding that
has been may have missed blow ever see

729
00:40:36,790 --> 00:40:39,879
myself a little another home

730
00:40:39,879 --> 00:40:43,360
but just don't see that don't trust them
i was looking over my shoulder

731
00:40:43,360 --> 00:40:48,559
people are going to have my best
interesting was only on four dollars

732
00:40:48,559 --> 00:40:51,249
he has already shown the bankers

733
00:40:51,249 --> 00:40:53,720
sub-prime loans would getting bad

734
00:40:53,720 --> 00:40:59,189
faster than many other kind of lonely
bina cody unprecedented way

735
00:40:59,189 --> 00:41:04,828
be in the past decades usable was the
case that digital population would be

736
00:41:04,829 --> 00:41:06,759
fourth and everything else

737
00:41:06,759 --> 00:41:09,649
in order to keep their hospital quite
possible contact

738
00:41:09,649 --> 00:41:13,888
note by the french to default on upon
only uh... collins

739
00:41:13,889 --> 00:41:15,930
and then finally before coming

740
00:41:15,930 --> 00:41:19,078
the keeping the credit card currents and
the defaulting on their mortgage first

741
00:41:19,079 --> 00:41:22,289
this is never been seen before

742
00:41:22,289 --> 00:41:27,470
web us terrible losses from solve
problems could no longer be ignored

743
00:41:27,470 --> 00:41:32,699
the whole of the war was separate
investments made out of some primaries

744
00:41:32,699 --> 00:41:36,589
horrible awakening

745
00:41:36,589 --> 00:41:40,219
the forecast two thousand and seven th
fabric french bag

746
00:41:40,219 --> 00:41:43,970
b_n_p_ about a balanced budget global
financial panic

747
00:41:43,970 --> 00:41:48,020
waited announced that it could rally
with holdings of investments created

748
00:41:48,020 --> 00:41:51,169
from some primaries

749
00:41:51,169 --> 00:41:56,308
when b_n_p_ camera knew this was a move
saying extendable children deported to

750
00:41:56,309 --> 00:41:59,569
lebanon

751
00:41:59,569 --> 00:42:00,750
factory came

752
00:42:00,750 --> 00:42:04,490
locked into the lead to each other
because they've left shoulder which if

753
00:42:04,490 --> 00:42:06,789
it were holding the sub-prime poison

754
00:42:06,789 --> 00:42:09,719
and what they would have i guess that
money back

755
00:42:09,719 --> 00:42:13,819
them multi threaded into all of money
markets have found up in the global

756
00:42:13,819 --> 00:42:16,819
economy fees down

757
00:42:16,819 --> 00:42:19,069
the speed at which it happened

758
00:42:19,069 --> 00:42:23,009
the way in which institution actually
she shouldn't stress you know withdrew

759
00:42:23,009 --> 00:42:24,949
from the market because they were
worried

760
00:42:24,949 --> 00:42:27,079
i think that was unprecedented

761
00:42:27,079 --> 00:42:32,519
and it surprised uh... politicians is
apprised regulators uncertain surprised

762
00:42:32,519 --> 00:42:33,499
the banks

763
00:42:33,499 --> 00:42:36,190
so while children that fishes circle

764
00:42:36,190 --> 00:42:40,380
lack of confidence that lack of trust
like it you know you don't know who's

765
00:42:40,380 --> 00:42:41,889
holding the problem

766
00:42:41,889 --> 00:42:47,899
everybody then like lemmings run for
cover

767
00:42:47,899 --> 00:42:49,540
once people got scared

768
00:42:49,540 --> 00:42:50,749
they they started

769
00:42:50,749 --> 00:42:53,129
being less happy tooling to each other

770
00:42:53,129 --> 00:42:56,490
this has been in the city to to work
with each other and a gain

771
00:42:56,490 --> 00:43:00,240
that itself with the tools of threat to
peace

772
00:43:00,240 --> 00:43:02,669
specifically

773
00:43:02,669 --> 00:43:05,359
the securities gained entrance was that
possess

774
00:43:05,359 --> 00:43:07,909
fear of shallow

775
00:43:07,909 --> 00:43:14,319
if you ever responded that that uh...
this is a theoretical

776
00:43:14,319 --> 00:43:18,308
okay should i say yes the fact that
people did not know the full exposure to

777
00:43:18,309 --> 00:43:22,659
soft money real or to see very whatever
his support if you don't do something

778
00:43:22,659 --> 00:43:26,159
defeat was rationed

779
00:43:26,159 --> 00:43:29,679
once the river of money still flowing
with banks and financial institutions

780
00:43:29,679 --> 00:43:31,969
like the lead to each other

781
00:43:31,969 --> 00:43:36,039
there was a very high profile casualty
in britain

782
00:43:36,039 --> 00:43:39,669
one of britain's biggest mortgage
lenders needs emergency support from the

783
00:43:39,669 --> 00:43:41,098
bank of england

784
00:43:41,099 --> 00:43:44,579
norman rockwell has problems raising
money because of the crisis in the

785
00:43:44,579 --> 00:43:45,869
financial markets

786
00:43:45,869 --> 00:43:47,900
capsule indicators no suggestion

787
00:43:47,900 --> 00:43:52,019
the discoveries businesses fundamentally
past but me anyone in out of money in

788
00:43:52,019 --> 00:43:55,269
this way uh... for a package
extraordinary singers

789
00:43:55,269 --> 00:43:58,009
the company was very successful

790
00:43:58,009 --> 00:44:01,309
because it was taking a tremendous
amount of risk

791
00:44:01,309 --> 00:44:04,050
northern rocker went to the brink of
insolvency

792
00:44:04,050 --> 00:44:07,950
because it's a business was dependent on
raising money by selling its mortgages

793
00:44:07,950 --> 00:44:10,039
to international investors

794
00:44:10,039 --> 00:44:13,879
and when investors were burned by losses
on sub-prime

795
00:44:13,879 --> 00:44:16,038
fuse to bite anymore which is

796
00:44:16,039 --> 00:44:16,950
northern rocks

797
00:44:16,950 --> 00:44:19,139
or anyone else's

798
00:44:19,139 --> 00:44:20,839
they were actually

799
00:44:20,839 --> 00:44:25,819
possessed owners capital to survive
approximately along

800
00:44:25,819 --> 00:44:30,499
shut down from the capital markets

801
00:44:30,499 --> 00:44:32,389
banks across the world

802
00:44:32,389 --> 00:44:34,019
germany

803
00:44:34,019 --> 00:44:36,519
switzerland and the u_s_

804
00:44:36,519 --> 00:44:40,839
tens of billions of dollars and i've had
to be bailed out by governments or by

805
00:44:40,839 --> 00:44:42,479
investors would

806
00:44:42,479 --> 00:44:43,959
pockets

807
00:44:43,959 --> 00:44:47,440
just west bank you me and says it's
something too much maybe along his than

808
00:44:47,440 --> 00:44:48,649
anticipated

809
00:44:48,649 --> 00:44:52,368
because of its exposure to the sub-prime
mortgage market in the united states

810
00:44:52,369 --> 00:44:56,639
died barclays said intergroup multi one
point six billion pounds of risky

811
00:44:56,639 --> 00:44:57,630
investments

812
00:44:57,630 --> 00:45:01,710
related to u_s_ mortgages level credit
crisis has deepened with americans

813
00:45:01,710 --> 00:45:05,199
fifty largest investment bank on-scene
from nineteen c funding

814
00:45:05,199 --> 00:45:08,529
their stance which has been hit by the
u_s_ housing market slump has been

815
00:45:08,529 --> 00:45:15,529
bailed out by now the bank and the
federal reserve

816
00:45:17,439 --> 00:45:20,819
some of the bank is responsible for the
financial losses

817
00:45:20,819 --> 00:45:23,459
cut into their jobs

818
00:45:23,459 --> 00:45:24,388
bonuses

819
00:45:24,389 --> 00:45:28,389
of investment bankers have been a full
drastically now that you're discovering

820
00:45:28,389 --> 00:45:33,139
that a lot of the banks investment banks
that they can billions of dollars worth

821
00:45:33,139 --> 00:45:36,759
of write-offs and these people are
getting kicked out unceremoniously out

822
00:45:36,759 --> 00:45:39,799
of that helps

823
00:45:39,799 --> 00:45:42,710
cash for those companies for five
private equity

824
00:45:42,710 --> 00:45:47,200
what it takes about two months debts bad
experience difficulties which would be

825
00:45:47,200 --> 00:45:49,030
bad news for the investors

826
00:45:49,030 --> 00:45:51,799
uh... employees

827
00:45:51,799 --> 00:45:56,609
there are some clear examples of loans
which part looking dreadful now

828
00:45:56,609 --> 00:46:01,189
some of the leveraged buyouts time font
face the return of countrywide estate

829
00:46:01,189 --> 00:46:02,549
agent

830
00:46:02,549 --> 00:46:06,219
the loans on those companies are being
dealt with regularly now

831
00:46:06,219 --> 00:46:09,529
at discounts of a quart role more to the
face value

832
00:46:09,529 --> 00:46:13,409
so clearly there are some problems out
there

833
00:46:13,409 --> 00:46:15,700
but many of the cigarettes

834
00:46:15,700 --> 00:46:20,879
creative unsustainable do acidification

835
00:46:20,879 --> 00:46:23,129
there are a lot of people have made

836
00:46:23,129 --> 00:46:26,639
enormous amounts of money created great
by him

837
00:46:26,639 --> 00:46:31,419
hummed i'm afraid they're not going to
get hurt greatly by what's happening now

838
00:46:31,419 --> 00:46:34,520
hands there is so i understand at the
moment for example

839
00:46:34,520 --> 00:46:37,199
quotation or should should uh... car and

840
00:46:37,199 --> 00:46:41,319
uh... hotel rooms and the caravan

841
00:46:41,319 --> 00:46:44,439
uh... mauritius and similar places and

842
00:46:44,439 --> 00:46:49,038
these people are not available in with a
lot of money

843
00:46:49,039 --> 00:46:53,379
having traveled so much the super-rich
apparently have a problem

844
00:46:53,379 --> 00:46:58,649
many of us would lower

845
00:46:58,649 --> 00:47:00,819
very thought that people very liquid

846
00:47:00,819 --> 00:47:02,100
over the loss of money

847
00:47:02,100 --> 00:47:03,619
the last ten years

848
00:47:03,619 --> 00:47:07,599
in fact probably find it quite difficult
to spend the money they for

849
00:47:07,599 --> 00:47:10,759
malta and and that's why companies like
us something that's for a successful

850
00:47:10,759 --> 00:47:17,759
because we open so in the morning

851
00:47:24,849 --> 00:47:30,599
dashed thanked me for companies that
have to decent submitted quantities of

852
00:47:30,599 --> 00:47:32,329
these very expensive products

853
00:47:32,329 --> 00:47:37,790
today trotman factions within the
disneyworld for us the profit pizza

854
00:47:37,790 --> 00:47:39,089
launched last year

855
00:47:39,089 --> 00:47:42,558
if you would walk into the world's most
people today people not to use would

856
00:47:42,559 --> 00:47:44,649
maybe get one two years

857
00:47:44,649 --> 00:47:48,848
and through the whole time in this half
truths and sentences that changing

858
00:47:48,849 --> 00:47:50,749
anytime soon

859
00:47:50,749 --> 00:47:54,290
and amount for the most expensive
motoring experience on earth

860
00:47:54,290 --> 00:48:01,290
doesn't seem to rebecca rated

861
00:48:09,479 --> 00:48:12,899
the car is he not only the most
expensive

862
00:48:12,899 --> 00:48:16,138
processed car on the planet

863
00:48:16,139 --> 00:48:19,649
but it's also one of the most usable cox

864
00:48:19,649 --> 00:48:20,500
the customer

865
00:48:20,500 --> 00:48:22,829
campaigns one point one million meals

866
00:48:22,829 --> 00:48:29,829
plus tax index consciously second to
none

867
00:48:36,529 --> 00:48:38,359
but which have been

868
00:48:38,359 --> 00:48:42,319
the best you in market and they still
are the best to united

869
00:48:42,319 --> 00:48:43,240
family

870
00:48:43,240 --> 00:48:45,229
the second to the u_s_

871
00:48:45,229 --> 00:48:47,839
uh... outfits dealership in the world

872
00:48:47,839 --> 00:48:54,219
passing on the list of the world is
checked back in london

873
00:48:54,219 --> 00:48:56,520
david a simple art in the street

874
00:48:56,520 --> 00:49:02,129
price cutting isn't on the agenda

875
00:49:02,129 --> 00:49:03,930
for one million dollars

876
00:49:03,930 --> 00:49:07,808
cannot be affected bynoe quite

877
00:49:07,809 --> 00:49:09,059
the extreme

878
00:49:09,059 --> 00:49:13,109
mainstreamed setting

879
00:49:13,109 --> 00:49:15,759
at the one

880
00:49:15,759 --> 00:49:18,189
daewoo bullets

881
00:49:18,189 --> 00:49:19,439
always been

882
00:49:19,439 --> 00:49:21,970
demand for what dot i want

883
00:49:21,970 --> 00:49:23,219
that is for sure

884
00:49:23,219 --> 00:49:25,679
and if you want to do

885
00:49:25,679 --> 00:49:27,109
what's left

886
00:49:27,109 --> 00:49:29,449
and you want to go see

887
00:49:29,449 --> 00:49:31,809
starts with one new york

888
00:49:31,809 --> 00:49:33,539
for first place

889
00:49:33,539 --> 00:49:40,539
that your thing

890
00:49:45,169 --> 00:49:47,769
the reason the super-rich could feel
safe

891
00:49:47,769 --> 00:49:52,650
is that the gavel safe a complete about
people's money that these says he used

892
00:49:52,650 --> 00:49:54,469
to the authorities

893
00:49:54,469 --> 00:49:59,639
prevails about four of the damage to the
rest of us could face chrysler's

894
00:49:59,639 --> 00:50:01,750
these people who operate in the
financial markets

895
00:50:01,750 --> 00:50:04,119
best mart they know it

896
00:50:04,119 --> 00:50:06,879
that they ought to big to fail

897
00:50:06,879 --> 00:50:11,199
they know who that bill participle right
to their rescue

898
00:50:11,199 --> 00:50:12,219
everywhere all

899
00:50:12,219 --> 00:50:13,579
long the line

900
00:50:13,579 --> 00:50:16,279
barrel one-way acts

901
00:50:16,279 --> 00:50:17,650
this means

902
00:50:17,650 --> 00:50:20,030
but you are incentivize

903
00:50:20,030 --> 00:50:22,109
to take the risks

904
00:50:22,109 --> 00:50:23,379
you'll reedy

905
00:50:23,379 --> 00:50:24,839
the bigger the risk you take

906
00:50:24,839 --> 00:50:26,889
the bigger profits yourself

907
00:50:26,889 --> 00:50:28,979
and it's been stepped back to me

908
00:50:28,979 --> 00:50:29,690
almost

909
00:50:29,690 --> 00:50:34,189
not all problem you'll problem you pick
up the mess

910
00:50:34,189 --> 00:50:37,489
this semester and added all of us they
are

911
00:50:37,489 --> 00:50:39,920
the losses incurred five bags

912
00:50:39,920 --> 00:50:45,119
hedge funds insurers artifacts or
businesses which could reach three

913
00:50:45,119 --> 00:50:46,459
trillion dollars

914
00:50:46,459 --> 00:50:51,930
coverage used their willingness till end
two any of us paddling damage the global

915
00:50:51,930 --> 00:50:57,169
financial system it's as though the
mechanism for injecting few it into the

916
00:50:57,170 --> 00:51:01,309
economy has broken down and when that
happens

917
00:51:01,309 --> 00:51:03,789
week old stuff up

918
00:51:03,789 --> 00:51:07,849
i think it's a mistake for the within
easy then stood up like today and that

919
00:51:07,849 --> 00:51:11,429
they don't have any sub-prime mortgages
or cut front debt obligations or even

920
00:51:11,429 --> 00:51:13,329
equity so it was about to that

921
00:51:13,329 --> 00:51:14,659
and if it was all

922
00:51:14,659 --> 00:51:19,339
and the that the credit creation process
is at the heart of everything and uh...

923
00:51:19,339 --> 00:51:20,729
com uh...

924
00:51:20,729 --> 00:51:24,839
without but you cannot get normal
functioning and uh... i think the uh...

925
00:51:24,839 --> 00:51:28,519
the damage is being done to the is duclh
managed assistant sub

926
00:51:28,519 --> 00:51:30,089
we talk about the average home

927
00:51:30,089 --> 00:51:34,779
uh... around and uh... worker in the and
its impact on them

928
00:51:34,779 --> 00:51:37,410
they probably will find a bit more which
cost more

929
00:51:37,410 --> 00:51:40,750
and whatever the absolute level of
interest rates if they're unlucky they

930
00:51:40,750 --> 00:51:44,260
made fun of the jobs affected by this is
well i think there are some some very

931
00:51:44,260 --> 00:51:49,610
severe rule will be effects on people's
ability to to borrow how banks have less

932
00:51:49,610 --> 00:51:54,109
money so enjoy smoking that challenging
role for what they were oleg

933
00:51:54,109 --> 00:52:00,259
marketing the falls in housing probably
prices resurrects osteo aura

934
00:52:00,259 --> 00:52:05,910
and west creating a missions and our
with borrowed as we spend less and the

935
00:52:05,910 --> 00:52:10,509
economy slows down distant translate
that into have

936
00:52:10,510 --> 00:52:12,069
what it means for

937
00:52:12,069 --> 00:52:15,419
ordinary people arab if people

938
00:52:15,419 --> 00:52:16,759
borrowing less

939
00:52:16,759 --> 00:52:18,029
saving more

940
00:52:18,029 --> 00:52:19,949
that'll translate into

941
00:52:19,949 --> 00:52:24,039
slow growth does it does it translates
into a serious recession in your view

942
00:52:24,039 --> 00:52:27,709
i don't expect it worldwide

943
00:52:27,709 --> 00:52:28,889
resection

944
00:52:28,889 --> 00:52:32,419
i do expect intersection in the united
states

945
00:52:32,419 --> 00:52:34,019
the separate coverage

946
00:52:34,019 --> 00:52:36,939
cannot be predicted

947
00:52:36,939 --> 00:52:38,460
as a result of recent

948
00:52:38,460 --> 00:52:39,699
budget changes

949
00:52:39,699 --> 00:52:44,640
the british tax system may no longer be
places favorable to the d_c_ bridge

950
00:52:44,640 --> 00:52:47,779
visit walence

951
00:52:47,779 --> 00:52:48,870
the water fountain

952
00:52:48,870 --> 00:52:54,538
slightly income and wealth gap between
the cigarettes from the rest of us

953
00:52:54,539 --> 00:52:57,609
florio the world circulated

954
00:52:57,609 --> 00:53:02,359
if well secure related out of people
growing company successfully

955
00:53:02,359 --> 00:53:06,429
hospice generally code it's hard to come
up with a real negative on that

956
00:53:06,429 --> 00:53:10,629
it on the other hand it's some guy his
made all of his money out of making two

957
00:53:10,629 --> 00:53:13,239
or three huge financial batch

958
00:53:13,239 --> 00:53:15,679
then the social implications of much
wider

959
00:53:15,679 --> 00:53:18,699
because those but will the role as well
as right

960
00:53:18,699 --> 00:53:22,719
and when they are and will be a lot of
victims of the guys who was uh... social

961
00:53:22,719 --> 00:53:24,579
and political issues

962
00:53:24,579 --> 00:53:28,329
so that the deluged with a hundred
million hamptons

963
00:53:28,329 --> 00:53:33,089
and being the promote uh... over
leverage structures

964
00:53:33,089 --> 00:53:37,979
that's a political issues cause a lot of
donations go very rich i think it uh...

965
00:53:37,979 --> 00:53:40,799
an economy which is characterized

966
00:53:40,799 --> 00:53:43,519
by extremes of wealth

967
00:53:43,519 --> 00:53:44,850
is not a secure

968
00:53:44,850 --> 00:53:49,929
and safe economy anymore then one
economy versus another economy

969
00:53:49,929 --> 00:53:53,929
extremes of well-spent income

970
00:53:53,929 --> 00:53:56,339
people are starting to very serious

971
00:53:56,339 --> 00:53:58,609
moral risks

972
00:53:58,609 --> 00:54:02,669
that might not match the if we could be
confident that lessons are being learned

973
00:54:02,669 --> 00:54:04,308
from the crisis

974
00:54:04,309 --> 00:54:10,109
always see is that america's central
bank the federal reserve is once it gets

975
00:54:10,109 --> 00:54:13,609
passing interest rates and pumping cash
into the system

976
00:54:13,609 --> 00:54:14,689
out there

977
00:54:14,689 --> 00:54:16,848
stopped the whole point of this process

978
00:54:16,849 --> 00:54:18,329
you happy

979
00:54:18,329 --> 00:54:20,810
boom-bust process similar to

980
00:54:20,810 --> 00:54:24,119
many that we have had in the last

981
00:54:24,119 --> 00:54:25,689
decades

982
00:54:25,689 --> 00:54:28,899
combat v_'s also the end

983
00:54:28,899 --> 00:54:30,710
alva suburban

984
00:54:30,710 --> 00:54:34,559
that has lasted since the end of the
second world war

985
00:54:34,559 --> 00:54:35,849
from time to time

986
00:54:35,849 --> 00:54:38,730
marcus don't correct themselves we have
a crisis

987
00:54:38,730 --> 00:54:41,649
and then the authorities have to defeat

988
00:54:41,649 --> 00:54:46,819
and injected d_d_t_ and be allowed to
feeling institutions

989
00:54:46,819 --> 00:54:49,990
and and activities and this system of

990
00:54:49,990 --> 00:54:51,400
a symmetric

991
00:54:51,400 --> 00:54:55,289
uh... incentives where

992
00:54:55,289 --> 00:54:57,030
delighting courage

993
00:54:57,030 --> 00:54:58,749
the to leverage

994
00:54:58,749 --> 00:55:02,370
but in fifteen zero or wrong

995
00:55:02,370 --> 00:55:06,859
theories vividly

996
00:55:06,859 --> 00:55:08,470
that is in charge of the system

997
00:55:08,470 --> 00:55:10,960
cop there were a lot of all the times
that way

998
00:55:10,960 --> 00:55:15,519
absolves the basic played a great day
but actually meant ads

999
00:55:15,519 --> 00:55:17,329
safety incentivize to take

1000
00:55:17,329 --> 00:55:18,359
davis rests

1001
00:55:18,359 --> 00:55:21,569
other people's money and the hot

1002
00:55:21,569 --> 00:55:23,989
also holds

1003
00:55:23,989 --> 00:55:27,509
date eleven eighty ext

1004
00:55:27,509 --> 00:55:28,959
article itself

1005
00:55:28,959 --> 00:55:33,660
if you set up a have basically mean
racial structure where people get paid

1006
00:55:33,660 --> 00:55:37,288
to twenty percent of the gains from
playing with other people's money animal

1007
00:55:37,289 --> 00:55:41,169
partial will possibly they prepare to
make them than anything from the and he

1008
00:55:41,169 --> 00:55:44,538
was just need to change the structure
that susan and get their attention

1009
00:55:44,539 --> 00:55:47,479
and losing the jury that structure
doesn't really want a group of people

1010
00:55:47,479 --> 00:55:51,349
have attained can change any structure
like that and i think that's the others

1011
00:55:51,349 --> 00:55:55,779
uh... this is a matter of uh... so long
as people are willing to be shareholders

1012
00:55:55,779 --> 00:55:59,579
in banks where traders are allowed to
play with the banks capital and walk off

1013
00:55:59,579 --> 00:56:03,089
with twenty points at its end of the of
the games on it and none of the losses

1014
00:56:03,089 --> 00:56:06,449
am i'm wicked winter invested private
equity hedge funds it'll have the same

1015
00:56:06,449 --> 00:56:10,589
thing to occur people come up

1016
00:56:10,589 --> 00:56:13,349
if you're a hedge fund or a private
equity firm

1017
00:56:13,349 --> 00:56:18,119
there are fantastic opportunities to
profit from the turmoil

1018
00:56:18,119 --> 00:56:21,529
number of hedge funds have already made

1019
00:56:21,529 --> 00:56:25,379
betting that always self-pride
investments were overvalued

1020
00:56:25,379 --> 00:56:29,719
and some of them very nicely them
speculating the share prices of our

1021
00:56:29,719 --> 00:56:32,459
leading banks would tumble

1022
00:56:32,459 --> 00:56:36,099
as for private equity whatever session
would be just a minute

1023
00:56:36,099 --> 00:56:42,179
loneliest time to buy businesses knock
down prices

1024
00:56:42,179 --> 00:56:45,919
is it's actually a period of tremendous
opportunity for for my yes it's it's

1025
00:56:45,919 --> 00:56:48,598
really it's uh... it's if it's gonna be
a great opportunity

1026
00:56:48,599 --> 00:56:51,759
the the the real golden age comes when
you have a mess

1027
00:56:51,759 --> 00:56:55,039
uh... you have a common means that our
on their back

1028
00:56:55,039 --> 00:56:58,289
uh... you know um... capital are

1029
00:56:58,289 --> 00:57:00,969
uh... inadequate

1030
00:57:00,969 --> 00:57:05,309
uh... and and when you start buying
business isn't that partner cycle that

1031
00:57:05,309 --> 00:57:10,329
you would have to bleed do extremely
well unless you too early by and and

1032
00:57:10,329 --> 00:57:14,459
uh... right now it's a little bit too
early uh... but but as you wait uh...

1033
00:57:14,459 --> 00:57:17,029
and this develops it'll be a great time

1034
00:57:17,029 --> 00:57:23,429
uh... to be buying businesses

1035
00:57:23,429 --> 00:57:27,359
so there is still plenty of
opportunities for the new civil rights

1036
00:57:27,359 --> 00:57:29,679
to increase their fortunes

1037
00:57:29,679 --> 00:57:34,299
even though the global financial system
is in intensive care

1038
00:57:34,299 --> 00:57:37,169
out prosperity is threatened

1039
00:57:37,169 --> 00:57:39,779
when the lieutenant still being placed

1040
00:57:39,780 --> 00:57:43,529
if we are not well enough but it is
again

1041
00:57:43,529 --> 00:57:44,559
into being with them