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tv   [untitled]    August 4, 2011 9:00pm-9:30pm EDT

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well i'm sorry but in washington d.c. and here's what's coming up tonight on the big picture just two days after we dodged the financial bullet stock markets took a major dive today economist max throttle joins me tonight discuss these uncertain times and who's actually to blame finally a compromise has been reached to end the f.a.a. shutdown so the democrats fold again and what will this new deal mean for the unions plus a deadly salmonella outbreak back in march is now in august force in the recall of
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ground turkey meat why the delay why isn't food safety a priority for the republicans. you need to know this two days after a debt limit deal that was supposed to call on fragile markets was signed into law the dow jones plummeted more than five hundred points today a five hundred twelve point drop was the worst the market has seen since october of two thousand and eight right in the financial crisis and today's last caps off a ten percent drop in the market over the last ten days or racing all of the gains made so far this year as for a reason behind the market nosedive today. between fears over tomorrow's release of new unemployment numbers a spreading financial crisis in europe and the debt limit deal that economists are predicting will shrink the economy and kill one point eight million dollars jobs
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investors have plenty of reasons to worry about what is increasingly looking like a bear market or john boehner saying he got ninety eight percent of what he wanted to the debt limit deal i guess we can pile ninety eight percent of the economic calamity we're hurdling toward at his feet. for more on why the stock market is crashing and what the economic future looks like with tea party republicans steering the ship of state hostage taking politics i'm joined by max fraud wolf economist at the new school university graduate program in international affairs and of imposed blogger max welcome to the program. thanks pleasure to join you it's great having you with us everyone keeps blaming europe for american troubles this seems to be the main name in the main stream media is it the other way around as a possibility the way around that european markets are crashing both because they see the u.s. economy in its death throes and because of of the damage done a couple of years ago by american bankers. well i mean certainly there's
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a feedback loop so weakness in europe and japan always reverberate in the united states and american weakness reverberates elsewhere clearly the financial crisis of zero eight zero nine started inside the united states and is intimately entangled with mortgage financing here the debt load of the u.s. consumer and some rather unfortunate financial practices not exclusively emanating from the u.s. but in many ways disproportionately from the u.s. and the problems in europe today like the problems on the u.s. government's books today are in no way shape or form related to the financial crisis of zero eight zero nine so several major investment newsletters today started to advise young people to immediately liquidate all their stocks outside of gold stocks why would an investor want to jump into a market when they see the u.s. government encouraging are engaging or actually putting into law this week contractionary tonight policies. well certainly whenever you see
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a very weak economic environment remember before the contractionary anomic policies we saw a terrible job in june for june jobs that came out in july eighteenth thousand now are waiting for tomorrow morning's eight thirty am release and the whisper numbers are somewhere around eighty thousand with at least fifty thousand job losses from federal state local governments so into a week environment we've had a negative shock in the form of a contraction in government spending and when we cut the federal government spending it automatically cuts state and local spending which are already in bad shape so that's something to fear the ongoing crisis in europe is problematic the japanese are having trouble rebuilding from a very weak economy and tsunami and nuclear problems and on the other hand we're starting to see some slowing in the emerging market space particularly places like brazil india china and so there's an awful lot to be worried about and in that context markets have done very well for the last two years on average and so the question becomes can markets keep doing so well when almost nothing else in the economic news is positive but is negative and in some cases getting worse might not
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another but another question be is it possible that the market's getting well over the last two years was really just another bubble and that the d. leveraging that began two years ago still needs to be unwound and hasn't fully fully happened. well it's an ambiguity true that the d. leveraging process given the size of the bubble of the duration with which it ran will take a while and almost certainly isn't over and if you aren't sure about that or use become skeptical all you have to do is look at the housing market with millions of homes in inventory millions more in shadow inventory waiting to go on the market as soon as people think they can get back their mortgage amount of money on them and the ongoing weakness there which we expect for at least another year or so prices off thirty three percent probably on their way to forty at the bottom so clearly for the general public to the recession was something they felt and continue to feel of the recovery something they read about in the newspaper which either makes them mad or makes them feel left behind and the question is can call for profits
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and stock markets do that well when the macro economy doesn't and if so for how long and people are starting to ask that question and everything in the news of late isn't making them more comfortable with a probable answer just to bring it to us to domestic policy here you know with a minute or so we have left the twenty four states have cut taxes and cut spending and laid of government employees between that and some federal layoffs we've lost a half a million government employees since barack obama came into office on top of that we've got this this contractionary policy that was passed this week. my theory has been that the republicans from the day obama came into office has been to blow up the economy and then run against that in november two thousand and twelve whether whether my conspiracy theory is right or not doesn't look like that's how it's playing out. i'm not sure about the conspiracy theory i think disastrous mismatch of the economy is something that sadly quite bipartisan in nature of much of the time however it is clear that if you are running against an incumbent you have
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a very weak field of people opposing that incumbent freshly for the presidency that a terrible economy which is part of the way of barack obama got elected may occur to some strategist as the best bet for the republican party that's that's certainly true max thanks so much for being with us tonight. always my pleasure thank you. do appreciate i predict the republican strategy or at least my theory about it will work and the economy will be in much worse shape fifteen months from now just in time for the twenty twelve elections just so voters see which party has been trying to sink the ship over the last two years. you need to know this two republicans have learned to play hostage taker all sitting by the pool on vacation if a partial shutdown is now in its twelfth day at least four thousand f.a.a.
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workers furloughed and others several thousand f.a.a. safety inspectors working without paid overtime or expenses and over seventy thousand construction workers without a job is two and a half billion dollars worth of airport infrastructure projects are on hold without funny because republicans wanted to turn a routine f.a.a. funding bill into a weapon for their war against unions and it looks like once again they're going to get everything they want at least for now today senate majority leader harry reid said a deal has been reached to restore funding to the f.a.a. at least through the middle of next month september but then the debate will continue in a statement read this agreement does not resolve the important differences that still remain but i believe we should keep americans working while congress settles its differences in this agreement will do exactly that and quote those differences read mentions that are on provisions to eliminate subsidies to. airports and democratic districts something the secretary of transportation ray la hood assured democrats you can wave moving forward but the real holdup is the in the f.a.a.
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funding bill is about unions republican slipped a provision into the bill that makes it harder for federal air and rail workers to unionize knowing that the senate would have a difficult time passing it because of that provision this new deal reached today does nothing to strip out the anti language and union language from the funny bill so if this deal meet is another f.a.a. shutdown just around the corner when republicans come back to washington to continue their war on the unions here to offer his take is president of the national air traffic controllers association paul great to have you with us thanks for having me so thirty years ago yesterday ronald reagan declared war on working people in america after he had promised patco before the election that he would actually go along with their demands of the voted for him in the present a package it's not a lot of everybody in october. over one hundred eighty saying vote for reagan everybody did so the thirty year anniversary this war going on against organized
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labor and i find it very ironic exactly thirty years and still coming to airports. what's your take on what came out of this. well we heard what harry reid. we have here applaud harry reid us you know the reid for his leadership realizing that you know american workers should not be put in the position of policy and you know part of. the politics of washington d.c. what we what we want is let them work out their issues but continue the extensions that favor authorization like they have twenty times before this but this extension has built into it the anti-union language that says that if any of the airlines for example force against delta was one of the major ones lobbying for this if they force a or they can get out of the. sort of cation the union anybody who doesn't show up three doesn't vote that's considered a no vote that's like saying you know we're going to change our federal election
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system so anybody who doesn't show up is considered a vote for the republicans i mean it's it's nuts and that language is still in this bill which means it's going to be a lot harder to get it out again in september when they come back and we haven't had a bill in four years but we added extensions where they were just passed extensions and continue to work their differences but all there will always be a tax on the working people of this country there is there is the extreme right that doesn't believe in collective bargaining doesn't believe in what unions stand for and then there are there is you know the politicians that support workers' rights and believe that you know the way you get the best product out of america is to have hard working men and women standing up together and believing in the company and working for the best product so really that difference will never go away we will always fight the anti labor movement we always have when you go back to one thousand nine hundred one things really haven't changed that much about eight hundred seventy. it seems like it's an ongoing struggle what what is the
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status of unionization within the transportation industry. within the f.a.a. the n.m.d. provision which everybody keeps talking about first was not an extension so we can understand exactly why it was not in the extension it's in the f.a.a. reauthorization bill which is you're exactly right it's going to make it very hard to get that bill out with that provision it has no business being in the f.a.a. reauthorization bill zero thought that at the end the day the extension should have been clean should have been passed but we applaud a lot i mean secretary la hood did an outstanding job of keeping the focus on the men and women who need to get back to work maybe i misunderstand in this that i my understanding was there was one piece of legislation that came out of the house that contained the the anti-union language we've been discussing and reauthorize the f.a.a. and continued the spending that's that went to the senate no we're not going to do that and my understanding is that today harry reid said ok we will do that just until next month so i have it raw. from what i understand is that the in the end in
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the provision that everybody keeps talking about is not part of this yes i mean the anti-union is provision is not part of this extension it is part of the overall bill which is going to make it difficult to separate things yes these are the did the house passed its things you know they they passed and they passed the bill that had the the anti-union provision in it and they also has an extension that said till september sixteenth we will fund the f.a.a. ice area reid is just going along with the circuit or just the extension which pushes it pushes this fight down the road and it certainly does and let them work out their differences like they have in the last three or four years but let's not take the four thousand f.a.a. employees and put them in the situation that they have been in for the last two weeks let's not take seventy thousand plus. construction workers across america and throw them let's not put these these safety critical programs that were stopped
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over two hundred of them and hold them hostage for this bill let them work out their differences and hopefully they will if not continue to fund the f.a.a. as usual to maintain the safest most efficient system in the world and that's what we need there you go well thank you so much for that but thanks for the clarification it i'll have more on this latest republican hostage situation and i still take. also ahead the shadowy nonprofit organization known as alec is up to its old tricks this time in new orleans and for the first time with people looking over his shoulder we funnel explain just. what drives the world the fear mongering used by politicians who makes decisions to break through it through to be made who can you trust no one who is in view with a global missionary see where we had
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a state controlled capitalism is called satchels when nobody dares to ask we do our t. question morning. he minnesota's state government may be open for business again after a shutdown a few weeks ago but the legislators are working on new laws instead transnational corporations are the organization common cause just released
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a new report that shows a number of bills passing out of the ministry so the state legislature last session were actually written by the shadowy nonprofit organization known as the american legislative exchange council or alec that organization which is funded by the likes of the koch brothers and wal-mart let's lawmakers in secret sessions with the heads of some of the biggest transnational corporations in the world to write or approve corporate legislation along alec successes. minnesota legislation that makes it harder for people to vote legislation that protects corporations from consumer lawsuits legislation that prevents regulation greenhouse gases open the polluting industries and legislation that gives tobacco companies tax breaks it reads like a corporate dear said a letter as we speak right now alec is holding its annual convention in new orleans to write and debate even more corporate friendly legislation to shove through state legislatures all over the country joining me now on the scene of this convention is
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leaf investigative reporter and blogger at think progress org a local back. nice to see you and they're good to see you too so what is alec up to a new orleans this week. well as you explained it their corporate front group started in the seventies and they really grew very quickly in their early ninety's and only until now they face more scrutiny and as you mentioned during the day corporate lobbyists meet with state lawmakers state senators state assemblyman. and helped hash out model legislation that they call it that can be brought back to the state capitals across the country and introduced as legislation but right now is not. the evening here and new orleans now people are done with the legislation writing for the day and now it's party time time warner has a party that started about fifteen minutes where they bring out lawmakers from across the country and it's giving them gumbo and alcohol but there are parties all
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through the night there's about five or six different private receptions where corporate lobbyist after feeding people legislation now they're feeding them food and booze yeah any any details any secrets that you've uncovered well we've got a couple big scoops we haven't reported them on paper artist but i'd like to break a little bit of news on your program tonight this hasn't been reported yet i'm here in new orleans with my colleague scott kaiser he also writes for think progress a very talented reporter we were actually denied press can't identify us this morning even though i've attended and covered this conference in the past and when we went and stood in the second floor lobby we were ambushed we were tackled by the hotel security they grabbed us twisted our arms you know we can fully complied said we'd walk out and leave the building as soon as they asked so they started. pushing us and wrestling with us for no reason scott his hand was cut during the.
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the two security guards while they are wrestling with him and myself and i have smoke on my hand. and i mean there is no reason. for them to be so violent we said we would leave but they were intent on being i guess a little bit in this with us and they said that they were acting on orders from the alex staff that's interesting there was a case reported like that about another reporter earlier in the day or maybe yesterday afternoon and it turned out that the hotel said it was in our people it was a private security event hired by alec are you sure it was the hotel security. but they had hotel security badges and but they were very sick secretive we asked for their names they wouldn't give it to us we we asked for them to you know maybe open a conversation to talk if they said there were crowds who said you know who told you to twist arms or you know kicks out in such a violent manner and they we won the library so it's not clear we spoke into hotel
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management which talking to. alex management. they haven't been very forthcoming. and is that this is one of the largest alec gatherings. today there are many many walkers here we've seen folks there where i'm very proud in the ohio legislature pushing a lot of it was the case that case took a sign we've seen that a lot will lawmakers from north carolina in minnesota i mean this is a really important time because of the sweep that republicans had last year in the midterm elections will talk about how congress changed really what changed his state legislatures i mean it was a sea change and we do have some of the most conservative state legislatures and in modern history we have the most republican controlled once and in recent times and they're pushing uphill after bill you cited the minnesota example by you know oh wisconsin ohio north carolina are just as applicable common cause uncovered at least four bills that passed just out of the minnesota state legislature that are
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current copies of alec legislation and this is the tip of the iceberg of the legislation that alec is pushing around the america on behalf of big corporations in the state legislatures. oh sure i mean look across the board. gun owners and some the franchised corporations work with alec to create laws that suppress the living wage so it was stable pass a law that a law that disallows a city from increasing the minimum wage peabody coal and coke past and i climate legislation all of these corporations work together to pass anti voting rights laws because that helps them across the board elect more corporate friendly candidates and even tonight tonight as i mentioned there is a time warner cable party going on just how to plug away from my hotel and alec members have been given legislation to basically banned municipal broadband and you know alec bills itself and this is from its website as a jeffersonian organization devoted to individual liberty and democracy i don't see
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how banning it will grant broadband so that companies like time warner and cox communications have no competitors i don't think that has anything to do with what thomas jefferson had in mind mr everson is rolling in his grave how does the you just to lay this out for our viewers who may be unfamiliar with this how exactly does the alec process work. sure there are a core legislative staff in d.c. that helps coordinate everything they put out on regular publications action alerts and maintain list serves on that and they have corporations that sign up as members in a container where from twenty five thousand to one hundred thousand dollars a year this year b.p. and a couple other companies are paying one hundred thousand and they get invited to events like these in new orleans and they get into sessions and they have little strategy sessions the lobbyists hand out bills that they propose and then supposedly they come together with lawmakers and approve it as official alec legislation and then
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it's to surely to to it's to the hundreds of members of alec and although it's mostly republican there are many conservative democrats that are or aren't members of the organization. and from that point using those relationships we've tracked some of this money and not only did it are they handed legislation once i allocate member introduces and passes legislation and their respective state then you see the money flowing our corporations will step in and give large campaign contributions as it's thank you notes i suppose they'll run had to make sure those members are reelected they help get the job done they work with state based lawmakers to ensure that the legislation actually passes so it's a it's a very well oiled machine where you can have one organization actually passing laws and off to the states this sounds an awful lot like bribery of elected officials and you take an elected official and like that official you put them in
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a room with a corporation the lawyers for the corporations write legislation that gives the corporations tax breaks or limits the liability or lets them pollute the legislators then do to flee introduce that legislation and vote for it and then the corporation showers them with cash is this criminal. that's a very good point because in a lot of states i can speak for maryland care of california and a few others but you know each state has its own lobbying laws and when i represent of a corporation i also as a lobbyist meet with a lawmaker helps them write legislation and usually have to at least register so the public knows well because they're using this alec frank group and going as a jeffersonian democracy organization they'd never register and they never disclose that a corporation has written x. climate bill or or y. living wage bill so it's actually kind of a racket where they can funnel all this money and coordinate so this agreed with
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lawmakers without ever having to disclose because if you are just a joke living in maryland and you see your state senator introducing all this legislation and they've never registered as i was working with a lobbyist or you know coke has never actually registered to lobby in maryland. you're left in the dark you don't really understand the true drivers of how your laws are made absolute story mary lee thanks so much for your great reporting. hey tom thank you for having me for you are always a pleasure here we have a life did lawmakers ready transnational corporations billionaires tobacco companies oil companies write their legislation to maximize billionaire and corporate profits right out the open still don't think the corporatocracy is trying to replace our democracy. crazy alert a wedding certificate written in binary used in couple niguel hanson and diana was
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the last got married last week but the writing wasn't presided over by a religious leader instead it was done by a computer couple describes themselves as tacky and ordered a nontraditional wedding where a computer officiated the entire ceremony even their vows were exchanged and i phone. or computer did a good enough job for the newlyweds or just the peace still had to be on hand to make the wedding legal nonetheless this will likely be the first of many weddings in the future to be presided over by computers i guess things sort of went downhill for watson after winning jeopardy. but the power in me by the state of texas prince you has been if you make. just for.
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the good the bad and the very act. of grossly ugly first good former republican senator alan simpson simpson was one of the co-chairs of the president's deficit reduction commission and one of the guys who said the tax cuts of loopholes for the wealthy are unsustainable and emma said he sees simpson blasted republicans who are opposed to closing loopholes and in particular republicans who are slaves to their anti-tax overlord grover norquist. the only thing the grover can do to you he can't kill you you can't burn your house the only thing he can do to you is defeat true for reelection and if that means more to you than helping your country out of a terrible situation you ought to be there well said sen unfortunately that is all most of our elected representatives care about the bad. eric cantor period on fox so-called news yesterday the backstabbing house majority leader offered an interesting take on airlines that are now making big bucks off the f.a.a.
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being shut down with the f.a.a. shut down the agency can't collect taxes on the airlines but instead of passing those savings on to customers in the form of cheaper tickets the airlines of many of them anyway are just stashing the savings away in their corporate coffers and cantor thinks that's swell. what airlines have done is have stepped in and said well if we're not going to pay that money the federal government we're going to keep it towards our own bottom and i guess that's what business does you're absolutely right ari that is what business does which proves the entire republican argument about corporate taxes is wrong lower tracks taxes don't translate into savings for consumers and translate into more profits for the corporations and the very very ugly frank gaffney. right wing islam a horrible whose words influenced our waging terrorist under his breath but he's added again besides claiming that pretty much everything out of the sun from president obama to david petraeus to even see it back has been subverted by the muslim brotherhood gaffney now thinks that brevik himself was an agent of the
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muslim brotherhood speaking at think progress he had this observation about braddock's manifesto. is. a thorough investigation that has to do with course in fact that a. piece of his own creation with story operation whether it actually was meant to do anything other. contribute to. the readers and to express purpose and awareness it's a journalist. at a time when our nation should be learning from the violent consequences of muslim fear mongering gaffney spews more muslim fairmont every time to call gaffney out for what he really is and that's the stochastic terrorist which is very very. still i had no.


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