tv Boom Bust RT October 10, 2017 5:29am-6:01am EDT
wall street stand by right now. european airlines are in trouble last month britain's largest carrier monarch airlines came to a screeching halt much to the consternation of passengers literally about to board their flights at airports around the world flight three seventy five from tel aviv landed in manchester at three twenty nine am on monday october second by four a monarch and now the airline was insolvent minutes later the government proclaimed the u.k.'s biggest ever peacetime repatriation was underway to fly one hundred ten thousand passengers home within hours the first had returned with
a cost of taxpayers of around five hundred forty five pounds per ticket and now bankrupt airline air berlin says it is preparing to end flights at the end of october and a letter to employees the airline germany's second largest air carrier said that flights under the airline code will no longer be possible after oct twenty eighth at the latest air berlin declared bankruptcy in august and years of losses and the decision of the biggest shareholder gulf airline as he had to seize financing it's currently in talks with tons of easyjet about selling part of the business. and tech companies are lining up to reconnect power and internet to hurricane ravaged puerto rico but what's the lag time on these projects going to be exactly hurricane maria made landfall on september twentieth weeks later eighty eight percent of the island is still without power according to puerto rican energy authority and eighty two percent. the cell sites in the country are out of
commission and eighty eight percent of the island does not have power on sunday a substation failure caused another blackout as a product of a twitter conversation with puerto rico governor ricardo was a low last week tesla c.e.o. elon musk is diverting resources to puerto rico to scale up solar power operations the federal communication commission granted an experimental license for alphabets project loon to operate its wife i believe it's there but those must be integrated with puerto rico's telco partners network to get a signal to any device there then you incorporated is sending dozens of its small solar powered secular base stations to volunteer crews on the ground pairing venues devices with inflatable satellite antenna and then of course you've got cisco systems and microsoft a joint project net hope it's working with facebook to rebuild connectivity on the island in the meantime most puerto ricans remain in a blackout. the
standoff between catalonia and spain the government is headed in to get another week now that the physical chaos has subsided spanish officials are warning of economic turmoil if protesters continue to pursue independence. he has more on that for us. there's a long history between spain and its autonomous community of catalonia and ever since spain another nations have battled debt crises calls for catalonia and independence have gotten louder that's why there was an independence referendum held a little over a week ago followed by massive protests across the region the on the physical pandemonium that resulted in spain's prime minister is now warning of dire economic consequences if all this continues. of companies it is truly incredible the number of important companies that are banding or who are leaving
because they need to leave but really these people are defending their own balance sheets of their own workers and their salaries several other officials in madrid have emphasized that the government is ready and prepared to offset further attempts at independence but it's not just the pro spain side of the fight that's worrying about financial implications. foreign minister of catalonia as regional government said he'd be open to talks with the spanish prime minister mariano rajoy in an interview with bloomberg on sunday he said we need two to tango we need the other side to be at the table we're always going to be at the negotiation table but to start negotiations we need the other party to negotiate with after learning of the pro independence party's willingness to talk the stock market responded kindly spain's ibex thirty five to fifty eight points on monday from the previous trading session and two year yields drop as well but it's unknown how this week's upcoming
events could impact that recovery catalonia as vice president has vowed to continue the journey to independence and will address regional parliament on tuesday depending on what he says the markets could head back into another tailspin later this month legislative elections will be held in austria where for rate euro skeptic leaders are expected to perform well and next may have voters in. italy will head to the polls where the same thing could happen meaning the e.u. needs to brace for the possibility of similar referendums in the coming year. as. the longtime german finance minister heads into his new job as speaker of the german just og he has a stern warning about bubbles and the central bank policies where he says are creating them he references spiralling levels of global debt and liquidity leading to a growing risk of another financial crisis he says economists all over the world are
concerned about the increased risks arising from the accumulation of more and more liquidity and the growth of public debt and private debt i myself am concerned about this too his words mirror those of i.m.f. chief christine legarde she points out risks such as growing debt in many countries risky financial markets and china's credit expansion as finance minister of europe's largest economy has been a very vocal supporter of austerity for countries such as greece with sky high debt and now after the right wing alternative for germany party took surprisingly large numbers in the recent elections newly reelected chancellor angela merkel asked to aft as speaker in order to steer that debate. on the new jobs report for september the united states shows us that the u.s. economy lost thirty three thousand jobs although the unemployment rate dipped to
a new low of only four point two percent here to discuss is former u.s. trade commissioner bart chilton part these numbers were a bit of a shocker for a lot of people even in light of what we knew there were going to be some troubles as a result of the recent hurricanes what's your take on this two things i mean the four point two unemployment rate has been that low since june of zero seven. that's a pretty remarkable thing right. as we've talked about we've had months upon months of job growth for me used to be every month i would talk about well now what month is it that we've had how many eighty six months ninety two months of job growth so this really is a shocker you know going to thirty three thousand and losing thirty three thousand this year and to strength to strength and grow this huge debt salute we so we'll have to see what next month holds but it to me this was a big shock and we came off of a year ago had two hundred forty nine thousand jobs and i don't think it's going to
be a trend but if you look at june july and august it's all going down on job creation down to one hundred nine thousand in august so let's hope this just a blip on the radar yeah with with the winter set and construction work slowing down that's a worry to all the building after this i'll take a little deeper into these numbers specifically where were the losses and where there any overall job gains and all of this sure well the things that stayed the same were things that we've talked about before one that used were was losing jobs and that's government member state local government i mean they're yeah but manufacturing mining retail those of all pretty much stayed the same the biggest gain was that health care although still off the average the average every month job gain in health care is twenty seven thousand jobs a month but only twenty two thousand were created the place where we lost the key the key number of jobs hundred five thousand jobs just in september was
restaurants and bars so that's a big deal and people were not you know dealing with the hurricanes are staying home watching the weather channel on our t.v. i guess but not not out drinking and eating know they were and given that the repair and reconstruction is now underway when that's these funds trickle in in this rebuilding begins many of the hurricane impacted areas. it seems like we need . likely to see some new job growth in october and that report what do you think the new job growth but not necessarily economic growth so yes could mean more jobs not just you know the impact in the continental u.s. but puerto rico and the virgin islands etc you know lots more jobs should be created in construction but think about the value the economic value lost to be in people's cars or homes are told so that there's not as much value we have their economic value even though the employment numbers will hopefully kick back up but we'll have a rock and rocktober i hope will do you think that things will be built up enough
to get those restaurant bars back up and down there people don't want to travel down there i know the holidays are obviously coming up. do you think that we're going to see enough of a turnaround that quick it remains to be seen and again you know i think puerto rico and u.s. virgin islands have your greater impact than anybody had only dissipated and so maybe this is going to linger a little bit longer than we anticipated but bottom line is that if you look at the damage that's been done those places were totally devastated and of course they're going to lose jobs you know course this is going to happen so i think that the federal reserve and others will look at this is a blip on the radar but given that downward trend in the last three months that i've talked about we're cross our fingers that it doesn't mean that we're going to have less jobs created next month this month rather in october that we'll find out about in november right cross our fingers cross our fingers and way to be positive about that thank you so much we're going to go to break but we've got much more to talk about when we get back as we had to break remember to stay with us because we
have got much more to talk about as i said to bard we discuss the new report from the u.s. treasury department it's calling for every lactation on some wall street rules that we need to talk more about as we had to break through the numbers. i. what politicians do something to. put themselves on the line to get accepted or rejected. so when you want to be president or injury. or something i want to be rich. but you'd like to be prosperous like that before three in the morning can't be good that i'm interested always in the waters and out. there should.
choose to look for common ground. the u.s. department of treasury is issued a new report on capital markets and is again calling it to relax world for wall street the two hundred twenty page report called for as part of president donald trump's executive order earlier in february is the second of four expected this year on how to relax financial regulation stay with me to discuss is former u.s. attorney question or bar chelton who helped write the two thousand and ten wall street reform and consumer protection act otherwise known as dodd frank which candidate and now present trump says he wants to repeal wondering how you feel about that that some pride of authorship there what's your take on scaling back or doing away with some of the stuff that you helped together anything personal here
a little bit on a few provisions but i never said that what we did in the light of the great recession was going to be perfect it should always be a sort of a living breathing document that you change things as technology changes except and so i'm i'm ok with tweaking things but you know the president was calling like you do care you know replacing a repealing replacing the frank law and that's just sort of crazy talk and to me you don't want to go down that road what got us into trouble was these over the counter derivatives back leading up to two rows in an eight totally unregulated markets linda zero zip of these swaps like credit default swap court and helped to build the big bubble of the mortgage industry so we don't go down that road again that would be a big mistake ok let's talk about these overly restrictive approaches that the
the president says are holding us back the treasury secretary steve notion has said you know by streamlining the regulatory system we can make the u.s. capital markets a true source of economic growth. it will harness american ingenuity and allow small businesses to grow. do it the president and the secretary have a point about holding back growth and ingenuity if you think this is a total cop out it's a it's look he's talking in platitudes that's their mantra back to hold back growth but the bottom line is the financial sector we talked to in the previous segment about jobs and where jobs being lost and gained if you took it all of the financial sector all the sectors all across our economy the one that does better consistently every single quarter is the financial sector the poor financial sector who needs to have less regulations they made last year and this is three out of the last four years record profits one hundred seventy point three billion dollars in profits and that's six thousand banks big profits fifty nine percent of those six thousand all
made profits only eight point one percent lost profits nothing wrong with profits good for them but look regulations aren't holding them back thank you very much they're doing fine the regulations protected us from a future economic calamity like we witnessed in two thousand and eight ok so you think it's a lot of whining and they're just they're doing just fine and one of the things that's highlighted in this report is the volcker rule named after a former federal reserve chairman pov or volcker and the world bans investment banks from trading for their own buck essentially i know you helped write and voted for that role your big fan why did you think it was needed what are the prospects of getting rid of that now well first of all why is it needed is needed because some of these large investment banks this is because there is really a free market mentality and this is not just republican versus democrat bill clinton supported relaxation in the glass steagall that we've talked about to break
the bottom line is that what tipped what had happened is that some of the investment banks were taking in. investment from customers. right and then it's telling customers get into this account get into this thing and then once the customers populated that product whatever it was then they would take the opposite position that the banks would take the opposite position of their own customers so that's been a problem in the past and that's why i thought it needed to get done whether or not it can be changed it's a really high earner there are five different regulatory agencies that have to approve this my former agency one of them and boy i mean to get five people in government to do something goes up remarkable let alone five regulatory agencies with myriad commissioner is right and other so i think it's not a good i don't see it as happening i think it's going to i think a lot of this is window dressing the report that we're talking about the treasure report was done as you mentioned in the opening because of an executive order i think there's not
a lot that will happen except for on the regulatory front the in the executive branch ok two hundred twenty pages of nothing going to happen perhaps when the president and the secretary that talk about repealing dodd frank what's the major thing the key component of why that law was ok and why it still is you talk about a living breathing document and this is still you know we're still breathing air into this why is it still needed if and when when i talk to give speeches and folks ask me what's the key thing in this two thousand three hundred forty seven page law known as dodd frank it's the over the counter derivatives that is things that were previously on regulated because in the past is something we've never confronted where they would create products a product like this and it would include a batch of mortgages but it may be good mortgages maybe bad mortgages and i would sell it to you and then after that was done you might slice and dice it lindsay and sell it to somebody else and there was no agreed upon valuation as to what these
work the valuation was in the eye of the ball holder what made sense for your books those are regulated now right now that's what we do and there reg. and they trade on these things called swaps execution facilities we are safer because of it and for all the whining by the big banks and others in the administration what they should be doing is thinking lawmakers and regulators who created confidence in the u.s. in the u.s. financial system if you look at the rest of the world the banks in the rest particularly in europe they're not doing nearly as well as u.s. banks and that i think is because we had we came out fast and strong on these white mantra regulations they boosted the confidence not just of average individuals that the banks were going to be solid and safe but also in the confidence of traders so tradings taking place as our markets are better so rather than complain about dodd frank and all these pesky regulations which i think is just sort of window dressing for politics the bottom line is we should they should be thanking us for all these
great profits that we talked about one hundred seventy plus billion dollars are killed everybody hey i'm glad you feel passion about this it's good to get people in here who feel strongly before we go prognosis for a future financial reforms house of representatives passed choice act likely to become law what he what he thinks i mean the senate would have to pass it i don't think so like i said i think it's really going to be regulatory through executive orders and other things i don't think congress is going to get to that this year and maybe they'll write something up and not get it done thank you so much for me yesterday always a pleasure. big coin has had an emotional last month or so it hit a high of just over five thousand dollars then slipped right down below three thousand shortly after on monday it traded at forty six hundred dollars its highest level in more than a month and lester's are
a bit weary over the strong regulatory clampdown in china initial claims offerings are banned in the world's second largest economy but social media messaging system . those have proven to be fertile ground for the expansion of crypto trading in china with traders pushing very hard forward with harsh punishments if they get caught they're still going for it in japan though the doors have been swung wide open earlier this year big coin was legalized there and more recently eleven companies were approved by the country's financial services watchdog as registered cryptocurrency operators this year big coin forked into two because of the technological changes to its blocked train platform it created another type of crypto currency called bitcoin catch it could mean even more volatile closing by two thousand and seventy.
well we all knew it was only a matter of time amazon has announced that it will decide before thanksgiving whether to sell prescription medications online and if that happens the cataclysmic effects will be heard around the world is that good news for consumers or bad news for drug retailers and sox to discuss is legal and media analyst lionel of lionel media who but you lionel is amazon all in is this going to happen what do you think . the question that everybody has been asking is why wouldn't they do this now lindsay as you know when it comes to drugs i am an expert but it was a long time ago but but right now what amazon wants to do is to enter the world of p.b.m. pharmacy benefit managers and they're going to be third party administrators and they're going to be competing with people like express scripts and c.v.s. and united health who've already done the work who've already created in the minds
of older people because that is where the money is they know all about getting your drugs getting your medications getting your prescriptions online in the mail so here comes amazon and it says you know we're looking into this goldman sachs is looking at what what part they could play in this five hundred i don't know what these are one of these candies what if they were five hundred sixty five hundred sixty billion dollar market and and mail order if you will is twenty five to one hundred billion that amazon is looking at now on friday when this was announced i'm going to run a walgreens c.v.s. rite aid their stocks tumble shunts are they hand of maybe will be involved in this now think about this. amazon will go in through
brute force sales that will add a level of transparency i will say to everybody whatever you charge we can beat it think of this the consumer benefits for a man to sleep then as usual amazon by virtue of just reinventing something that we thought was so simple mail order could you get your drugs by drone could you have it could you that have this part of your point system could they actually recommend health care if they're already begin to medical supplies and the like so this is a no brainer but the best part about this and this is for sheer absolute axiomatic truth the more in the more competition better the better the consumer and the consumer drug prescribe are prescribed be able to benefits from this so which terrific but just think about this number recently was amazon said you know we
might get into this home food delivery stocks tumbled they just mention maybe we'll get into right and look what happened so i think it's a win win for everybody i think is just just utterly fed who knew we were when amazon came along lindsay you said amazon they sell books. number we said netflix they just rent d.v.d.'s room and look how things are changing in the future the future so bright i think i need shades i think tim buck three said it best but i think it's great also that they just mention it the shock waves are being felt and now you know you said amazon box i totally forgot that that's actually how they started amazon. bucks and now they you know they sell everything and everything i have my house is coming through the mail now and it's crazy thank you so much for a documentary about this line of lionel media thank you very much thank you. ok some fans want t.
shirts or maybe collectible figurines of their favorite shows characters if you're a fan of the adult swim head show rick and morty you probably tried and failed by mcdonald's dipping sauce bear with me season three of rick and morty debuted this year and the main character decided to go on a long rant about mcdonald's session dipping sauce a promotional item for the release of disney's milan back in two thousand i'm sorry one thousand nine hundred ninety eight didn't know i was going to have to go back that far now fans took to twitter asking for the golden arches to release the sauce which it did for one day. there followed a run on mcdonald's shortages of sauce into the situation also routing the police were called in some locations only had about seventy packets so naturally those who got out of there with the good stuff put it on the market and the three sauce that hit the bay for more than eight hundred dollars it's free markets for us thanks for
watching be sure to catch a boom bust on direct t.v. in the united states you can find us on the r t channel three two one if you miss us on direct t.v. pitch from bus on you tube youtube dot com slash the must r.t. thanks for watching see you next time. with more make this manufacture consent to stick to the public well. when the ruling class is protect themselves. with the flaming.
lips and be the one percent. we can all middle of the room sit. room. here's what people have been saying about rejected in the sixties full on. the only show i go out of my way to launch you know what it is that really packs a punch. yeah it is the john oliver of our three americas doing the same. we are apparently better than booth. and see if anybody had ever heard of love redacted tonight. president of the world bank. and we're going to seriously send us an e-mail. los angeles the city of luxury and fame but also an alarming number of people living in the streets. the simple fact in l.a.
he's there's just not enough shelter even if people on the streets right now decided to come in there's nowhere to come in and it's been a struggle. this man phoned his own response to the problem and constructed dozens of tiny homes for people in need of shelter when you have nothing in order to go. you know having some like this may as well be a castle but do the authorities accept such true lucian a tiny house on a city parking space is not a solution. someone wanted touring the site otherwise it'll be a free for all they're a better alternative to end the homelessness crisis. and