tv Keiser Report RT August 20, 2013 5:30pm-6:01pm EDT
use of these victims however none of them included a sex box i can guarantee you that one and that's going to do it for now from one of the stories we covered go to youtube dot com slash r t america i made them though. well it was a kaiser report imax guys are gonna stern it mom and pop you've gone and done it again almost blowing the greater fool i guess that's why the wealth of mom and pop investor is going the way of the mom and pop convenience store fricken extinct right stacey exactly max well there's a myth going around that this is an unloved bull market by mom and pop that they have not participated in this rally in the dow and the s. and p.
well well mamma papa vespers blow it again data shows that the ordinary retail public mom and pop are back on wall street and have no according to the investment company institute the great american public has poured ninety two billion dollars into the stock market via stock mutual funds since the start of the year now if you put that into context last year at the in the beginning of the year they withdrew one hundred eighty billion dollars at its low but the mom and pop investor are the average investor let's give you a visual demonstration of what happens to these poor people oh my goodness oh and if that was my net worth i just went into that spare you see they always come in at the top and they come in with borrowed money they come in with margin margin they say she missed it i'll try that again margin debt is never been higher than it is right now same thing for the bond market stacy that's why the vast majority of it best years were oh my god oh my goodness gracious that the vast majority of
investors they came into this market in the bonds looking for yield and they topped ticked a three hundred year bond market top in britain and a two hundred forty year top in bond market and united states now both of those markets are set to contract they're set to crash the average investor the. mom and pop is about to get a vis rated to breath the decapitated are going to be laid out on a slab and hammered a mercifully with a ball peen hammer between the eyes with an enormous sledge and it's going to hurt so much it's going to be painful again and again and again and they love it because they're sadist a masochist or american investors they're british investors they're losers. so let's look at the last time that mom and pop did this the last time the investing public jumped into the wall street pooled both feet like this was in two thousand and seven and they are investing even more this time around and the first seven months of two thousand and seven they invested eighty five billion dollars and so sock funds so of course these people push this myth that somehow that ordinary
investor missed out on this bull run and gosh darn those bear people who convince them to stay out of the market all market tops are reached all high prices are reached because the ordinary investor who is selling to them is the other question and that of course is the insiders and then the likes of george soros well i remember back in the two thousand and eight two thousand and nine period wall street a federal reserve george soros warren buffett they engineered a crash in the stock market they took bank stocks like goldman stock goldman sachs citi group wells fargo h.s.b.c. barclays they all dropped fifty sixty seventy percent value their member hank paulson who was the treasury secretary time called up buffett he called up the head of citi group be called up the head of goldman sachs and j.p. morgan said that the government was going to bail out these institutions they were not going to quote unquote fail he passed that information along secretly without public disclosure if they all bought those stocks they may double triple quadruple
now they want to get out so they tell c. and b. c. they sound maria bartiromo to go on c.b.c. and say oh you poor individual investors aren't fully invested yet time to buy in at the all time i use your margin to get a visit or a to this is what we want to do with your net worth maria this is no neos investment program to get all those. well yeah exactly and hank paulson i believe met with a bunch of goldman sachs related hedge funds and he told them that in fact the u.s. government would bail out fannie mae and freddie mac. when he was telling publicly and he told congress and therefore the public of america that they would not that they definitely definitely would not so they had insider information on that now let's look at this next headline soros is biggest holding bearish call on the s. and p. five hundred now of course you would not know this listen to the mainstream financial news because they just focused on his long position on apple and his selling of g.l.d. the gold e.t.f. but soros fund management's biggest position is a put on the s. and p.
five hundred e.t.f. s.p.y. sorest bought a put one million two hundred forty eight thousand six hundred forty three s.p.y. units in the quarter well the services make a huge negative bet and made him a billion dollars trashing the british pound he's made other multibillion dollar bets over the course of the errors he's made billions of dollars taking the opposite of what c n b c will tell you to do and this is how he's made his money over the years and of course the apple computer story with carl icahn involved he got involved in the stock and some other hedge fund managers and don't forget they collude they talk to each other we know that from steve cohen and as they see. capital management that they all engage in fraudulent insider trading so that's an easy greenmail what they can blackmail for these guys so here we have the mainstream financial media telling mom and pop don't listen to the bears you have lost all participate in this huge bull run in the s. and p. five hundred well bully on baron in this article is quoted and he says source
reportedly made one billion dollars betting against the british pound in one thousand nine hundred two we heard rumors of soros making a one billion dollar bet against the australian dollar a position that has done well if true we heard when he made a one billion dollar betting against the yen but where are the head. lines for his one point two five billion dollar bet against the stock market because it's part of the cathedral of fraud known as the new york stock exchange where the vatican of corruption is worshipped by the apostles of the most to generate priests of accounting manipulation and stock manipulation the jamie diamond so don't report it in america that would be like going into the vatican and you know doing so it would be quite bad i thought of something just now but i'm not going to say if they because you know there are limits so here you have george soros betting against the market you have mom and pop betting going long out of whatever wealth remains from
the last crash here's a tweet barron's company insiders and early august sold five hundred twenty four billion dollars worth of shares and bought less than fifteen billion according to thomson reuters data so again either mama papa right or george soros and the company insiders are right only one of those guys could be right with the credit market setting the new all time low margin debt high that borrowed money which is always a sign of a top it's also been in a quote unquote bull market for a number of weeks that corresponds to the average length of a move in the market so that's rolling over and at the same time you've got now the bond market has peaked in the last twelve months the yields it those incredible lows yields are starting to move up and rising ills of course are the head when the stocks cannot overcome and that looks like it's to increase well you talk about record margin yields on the market well over in the housing market remember where
we're hearing the propaganda that housing in america is in a recovery and it's all because of mom and pop the ordinary investor is able to participate homes are now affordable thanks to the zero rates from the federal reserve well the actual reality of the facts on the ground are quite different reports. how of all homes are being purchased with cash in fact this is a little more than half a closer to sixty percent according to goldman sachs are being purchased with all cash that comparison to twenty percent in two thousand and seven before two thousand and seven before the crash so most of the money is coming from investors foreign buyers and rich people but it's mostly investors private equity and hedge funds who have access to large pools of capital hundreds of billions of dollars and they're deploying this around the united states buying all cash these properties thus driving the housing market is driven at the margin because not very many homes are ever for sale of the total pool so they're driving up the prices they're there
for mom and pop of course once source is betting the s. and p. pays off when it crashes they'll say well you should participate in the housing market and of course private equity and the same head traumas like soros will be there to sell them these properties at inflated prices so low as the subprime crime crisis there was illegal loans made by banks. or other types of loans that were illegally made that they were fraudulent they made they lost the deeds they lost the mortgages they caused a huge crisis many people lost their homes the black population of america the largest confiscation of wealth going back to slave days and now suddenly groups like black rock who can borrow from the fed at zero percent can buy up all these properties for a song after they essentially vick did hundreds of thousands and probably most close to a couple of million now they come in with cash and they get paid on the money they borrow to flip the houses they don't actually need to own the mortgages or need to participate in any upside in the housing market they'll be long gone now except for
another crash after they made another huge profit floating more fraudulent securities well so let's look at these two charts here these are from provided by dr housing bubble looking at this data from the wall street journal story about all cash buying of houses so the first one is from goldman sachs and this is the cash transaction. by counts so the dark blue line is the cash transactions and the dollar amount is the light blue line as you see there is a rising amount of cash buying but on the other side here is from zero ahead this is existing home sales as in orange mortgage applications in black and that's plunged since the beginning of two thousand and thirteen as mom and pop are piling into the stock market their actual mortgage applications are plunging and in fact purchased mortgage origination volumes have fallen from about one point five trillion dollars in two thousand and five when the housing market peaks to around five hundred billion in each of the last two years so once of course that leverage
starts piling on again you're saying this is where mom and pop is assigned them on the pot are piling into the market and are about to lose it all to the private equity and hedge fund cash buyers oh sure obama will announce a program where i don't double or triple the food stamps or what they call electronic benefit transfer current snap snap snap out yeah gum up my food stamps they're going to quadruple the food stamp program and then you can use those to buy more that you can buy a house to quadruple the food stamps and use those to buy a house you see them saying it's all but of course j.p. morgan will float the food stamps they'll float the faulty mortgages they'll refuse securitized also to hedge funds going that they're going to explode they commit fraud five different ways to sunday and of course the account that is g.d.p. growth. well dr housing bubble concludes that the data shows the charge so that this delusional dream played into the fantasy that this housing market is naturally rising because of overall household demand when in reality it is being driven by investors leveraging the artificially low rates created by the fed mom and pop are
and free. free studio types free. and free broadcast quality video for your media projects a free media oh god r.t. dot com. welcome back to the kaiser report i-max kaiser timeouts aren't you alan jones author of jabs the demonization of the working class alan is currently working on his next book about the british establishment and all of course is most famously known in this country as a columnist for the independent on jones welcome to the kaiser report is see you are you there all right on jones guy been here now. i want to talk to you first about a couple of data points that we've talked about on the steps george osborne's well for welfare reforms will see eleven play billion pounds taken from housing benefits
while at the same time itself devised game grants twelve billion in subsidies roughly the same out for housing speculation so what does this tell us about the government's prejudice perhaps i think it says quite a low and surprisingly i mean if you look at those riots of only skate. the makings of an absolute disaster you know the only sustainable bubble when you've got real wages at the mill you've been going through the biggest squeeze since the seventy's and by the seventy's we mean eighteen seventy where you have a situation where you and i was building is at record lows record lows since records began in the nineteen twenty s. and then you try in flight yes a new. house price bubble well you know this is something which will come down crashing on this as it has previously with previous disasters but more importantly of course that will again make housing even more inaccessible particularly for the next generation as these house prices continue to soar when there's a lack of affordable housing if you flip are looking at these co-ops these crops
for the welfare state now when we talk about housing benefit is really in a time span as are every reason to be furious about the amount being spent on housing benefit is going to three billion into this goldman it's now it's about twenty four billion pounds every single year but the point is is subsidizing private lundell extortionate rents is not lining. pockets of these tenants and the reason housing benefit the bill has just exploded in size by some to new labor on the tories is because successive governments have refused to let councils build housing to replace the stock that was sold off in the eighties huge amounts of hundreds of thousands of council homes were sold off and not replaced forcing people into the private rented sector where rents a much higher lung will charge extortionate rents expects you know the time spent to step in and subsidize them so instead of cutting housing benefit which they have the day will end up hitting the tenant because it will simply be passed on to the
tenant in that way what we should be doing is letting councils build housing let them borrow which would create jobs stimulate the economy pay for itself as they get a stream of rent coming in and bring down housing benefit even that loonie leftie but the conservative maryland has supported that sort of approach so what this shows is just an absolute disastrous approach to housing policy when we do have a huge housing crisis in this country five million people who are stork of social housing waiting lists where you have the number of families forced into the private rented sector which is regulated in secure high rents the number of families has doubled in just five years we have homelessness figures already soaring these measures are going to make these problems a whole lot worse and one day allows him benefit problem if you like which is why it will show a lot about the prejudices of this government because they're not willing to
support if you like some of the poorest people in society but they'll create another one sustainable bubble to help try and bribe people basically in advance of the next election ok i want to take every single word they just said it condense it into one word borrow now borrow for a second you are saying oh let's increase council housing let's allow for borrowing to take place and of course the government will say already. stretched on the borrowing front we have too much debt already however when it comes to bailing out corrupt bankers bailing out h.s.b.c. called money laundering it for drug terrorists or bailing out barclays or lloyds or r.b.s. there's an unlimited amount of money available to be borrowed at one half of one percent so my question to you since you're such a keen observer of these things and i use some metaphors occasionally a lot your thoughts on this to me i equate this to interest rate apartheid where if you're an insider in the city you can borrow money to half
a percent and speculate all day long creating housing that you in turn becomes the property of greedy landlords but if you're on the other side of the coin if you're out there actually working for a living and you're short a few bob at the end of the month you go to wanda and you pay five thousand percent annualized rates of return is this idea of interest rate apartheid between these two elements of society is that an appropriate metaphor or is that too hard your thoughts what is just a foosball of your question just to knock the boeing point on the head when it comes to councils the whole loan given age that you lift the cap on councils being able to borrow then you've changed our accounts in cebu so the in line with the western european countries we're borrowing by local authorities isn't included in the net national public sector boeing figures again but which johnson has made this point abundantly clear but the point you're making about interest right upon side if you like i think is a really good one and it boils down so they say longleaf just becomes far cheaper
the rich are and we have a situation where one million families have now be forced into the arms of these illegal. who are exploiting the fact we're going to see the biggest squeeze in living standards as i say on rec hold we have time for million people in the seventh richest country on earth forced to rely on food banks where you have. charity show like save the children people having to choose between heating a hug and feeding their children again one of the richest countries that has ever been on the face of the m then in order just to make ends meet to pay bills to pay rent to pay a mortgage what these people in was that they constantly cover the rent and again also when people crime in housing benefit now new clients people in with the current afford to pay their rent the full since the onset of these legal one shocks the new fuel lines longer lie one being the most famous example you've got the money shop and a whole range of different companies sprinting out to some of the poorest
neighborhoods in this continual sea streets lined with illegal logging shocks but then you get these buying these bankers and you can basically fiddle around with money at these extortion these ridiculous thing like sorry interest rates i don't know so i just don't know. there's an extraordinary element to it because when they get in trouble they put a gun to the states said and they said either you give us another huge bailout or going to crash this economy by using our massive influence on the way markets work and market manipulations to create a crisis so they are playing a gun to the head of the state of the state appeases what i call these financial terrorist but only ask a question here because they are poor in this country are told to pick themselves up by their bootstraps and work harder but they're being asked to do so in an environment where you've got these financial predators circling around the interstate apartheid ghetto at what point does rhetoric become outright
scapegoating because i notice in this country the poor now are being increasingly scapegoated as the reason for all of the country's ills economically going forward that is the poorest fault and we've seen this movie before back in the 1930's over in europe where suddenly one group of people is scapegoated as the reason for all these troubles and then we know where it goes from. it again am i being too. over the top there or is that something you observed that lots of very good point in just the time those two elements together if we look at the legal scandal absolute our right fraud being there for the american audience we would call that the live or sorry like all i was getting out of a serious right it was people have trouble speaking american to somalia is from a northern english rule of a fight apologize for your politically trying to knock out me but the point about these only war scandal is no one got sent to prison for that but if you commit even the smallest bit of benefit for it in this country you get state benefits and maybe
get ten pounds cash in hand you get the police knocking on your door in your face criminal challenges is one rule for them and one of all for everybody else i'm not scapegoating we've had in this country where you've had a conscious effort to read direct people's growing and legitimate anger at the fact that living standards are falling year on year away from those who caused the mess when the crisis people tonight is down the streets so if your in a low paid job you're struggling to make ends meet your tax credits are being slashed by the government who do they get you to turn on the employee work shy scroungers down the road if you will someone in the private sector where pensions have just been absolutely decimated over the last she is who do they want you to turn on the nurse next door his pension is still intact we have it with immigrants now increasingly you want is always the same we've so why should we make you less deserving neighbor and this is a brilliant way of deflecting blame away from those who are well literally laughing
all the way to the bank the bank is he continues to pay be paid huge bonuses who have been bailed out by the state in one of the most outrageous examples of socialism for the rich that has ever been seen in human history whilst people are getting poorer right across the board there's a conscious effort by the government and the media people who are so-called genesee when don't buy. sickly propagandists and are wrong ideas for the government he's trying to flush. out people's neighbors on the basis of our they haven't been kicked hard enough and you'll get in kate's and you'll notice as well speaking of scroungers like george osborne yemen situation where the housing market crashed essentially in two thousand and two thousand i was part of the credit crunch the scroungers in this case would be the big banks in this country and the housing developers who were sitting on bonds that were collateralized by the mortgages they were sold. hundreds of billions of pounds worth of these mortgage backed securities
are sitting on their balance sheets if these mortgages were allowed to trade at the fair market price based on true supply and demand then all four of the big banks this country would have been insolvent the government they want scrounging to the government and saying you we need you to take all of our should crap mortgages and put it on the balance sheet of the bank of england in exchange for fresh pounds that will put on our balance sheet and we'll say we're solvent so in other words the option of the aristocratic class is to simply take all their bad day whenever they make a mistake swap it for good stuff at the bank of england and then declare themselves solvent so if the same option were available to council estates around britain using the same technique they would be able to take all their wanted debt and they could go to george osborne they could go to mark karr a new bank of england and say you take my i want to get a low yeah you take my longer debt i want a fresh path to charge treasury bill in pounds why is it again this is interest
rate apartheid why did the scroungers in the city of london get to have this option of money at a half a percent whereas everyone else is paying these extraordinary rates and they don't have their relation was the bank of england only serving a few people why isn't serving the country as a whole what exactly what we go with the whole by we nationalized the debts and privatized the profits as a safe seats are the socialism for the right to its corporate welfare which are every way you put it but when ordinary people get into a situation of working people or people who are employed or disabled people who have that benefits taken away when they're fools into such a state where they can no longer afford to pay that bills with rents which out of control and if you prices food prices which i believe even the rates inflation in this country then of course they can go cap in hand to the government and be expected to be buy over our instead they have to go to an unregulated. legal loan sharks ect to make ends meet and face interest rates which are absolutely
astronomical but this comes down to the nature of modern capitalism the free market which has become frankly a fraud it's all subsidized by the state buying stuff being low wages which bosses pay and then expect the government to step in by paying tax credits lungs each are objects that rents and then expect the state to step in and subsidize them with housing benefit trains which we now subsidize so the cina four times more wealth than when they were publicly owned we have a whole range of companies now in the n.h.s. and other public services subsidized by the taxpayer so we have a situation where we have this class of people who are so whose wealth depends on state law jets on the public sector on the taxpayer whilst ordinary people are expected to live with capitalism red in tooth and claw they have to live by the rules of the market sink or swim but the people at the top don't the state will come in to rescue them if they have a hit if they have to hit the buffet. domiciled in a planet x.
let's bring on the kaiser report it's like all right that's all the time we have for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest alan jones author journalist and columnist i mentioned that at the end of planet and now he's a radio show host l b c if you like to get in touch tweet us at kaiser report and so next time ask guys are saying. the admission. couldn't take three. four judges three. three. three. three.
if you live on one hundred thirty three bucks a month for food i should try it because you know how fabulous i'm glad i got so many i mean i have my hands takeout i know he has i'm sitting just really messed up . and we're all very slow especially apologize is a sacrifice. worst year for the latino white house of the day the radio guy in fort lauderdale is minutes from a quick process i want you to watch closely or about to do because you've never seen anything like this this time still. so long guys yesterday i had the amazing opportunity to take a break in this.