Asset Problems News Today

rescuing again. ill ask one of the people who was at the center of the storm the last time around, the former ceo of goldman sachs lloyd blankfein about whether the system is stable, and is your bank account safe? also, how did it come to this? did we learn the wrong lessons the last time? ill talk to julian tet of "the financial times." then -- dont mess with the french peoples retirement plans. thats the lesson from weeks of strikes and protests and then chaos in parliament as the go...

united states and around the world. im fareed zakaria coming to you from new york. today on the program, panic in the markets as the banks need rescuing again. ill ask one of the people who was at the center of the storm the last time around, the former ceo of goldman sachs lloyd blankfein about whether the system is stable. and is your bank account safe? also, how did it come to this? did we learn the wrong lessons the last time? ill talk to gillian tett of the financial times. the...

Government couldnt assess what the value of the assets were. you member sub prime mortgages, were they worth anything at all and what were they worth. here you have the asset side is good. most is government debt and the government prints the money, so that is money good, but the problem is they took duration risk, they insisted in long-term bonds and when interest rates went up, the interest rate that they got on their bonds and inventories went down in value so in this case, and so that sparke...

You have the asset side of the banks balance sheet pretty good and most of it is the government debt so thats money good. the problem is that they took duration risk, that is, they invested in long term bonds and when interest rates went up the pitteling interest rate that they had went down in value. so in this case that sparked a bit of a concern among creditors and depositors and so deposits left the bank. in 2008 there were asset problems and in the current market its a liability. its really...

We saw banks having asset problems. this doesnt have any of those hallmarks. >> no. in fact, i mean, back in that time period what led the downturn was housing, not the stock market. if you remember, we started seeing the increase in foreclosures and defaults in places like florida and california and arizona much before we saw real big problems in the stock market. and that crisis really started in the housing and the credit markets and then moved into the stock market. >> this is just the stock...