That the wall street crimes never go away theyre just repackaged and called Something Different so here the cd collateralized debt obligation is been replaced with the c l o the collateralized loan obligation as if a loan is somehow different than a debt no in fact theyre synonymous but by calling it something slightly different it fools the regulators the regulars are like oh my god what what is a c l o is it anything like a c d o i dont i cant comprehend it and by the way can you hire me at your head funding pay me 10000000000 dollars a year at citadel or some other head from because im a captured regulator and i work for the headphones yes you can so here you have a c l collateralized Loan Obligations and they are engaging once again in what we call back then and what we can call today as reverse drug dealing ok. Flashback Flash Forward what is reverse drug dealing well in drug dealing you start off with the product and then to try to make more money selling a product you mix it in with a lot of bogus product its expanded you turn one ounce of product into 20 ounces of product ok on wall street is reversed drug dealing 1st they start off with the bogus product triple b. Rated bonds triple c. Rated bonds worthless bonds and then to sell those they add in a couple of aaa rated government securities they sprinkle that in then they package it all up. And they sell it as a collateralized loan obligation and some more fraud and its going to happen with a similar outcome but 203040 times worse so as the clatter lies Loan Obligations are a bunch of loans packets to gether in various tears the bottom ones default if the Company Defaults you lose everything the top tier is supposed to get some of it back perhaps eventually and in the case of bankruptcy but just like the c. E. O. s also did that they packaged up a whole bunch of Mortgage Backed securities these are just loans to companies and importantly about these loans by the c. E. O. s bundled together socalled leveraged loans the subprime mortgages of the corporate world these are loans made to companies that have maxed out their borrowing in can no longer sell bonds directly to investors or qualify for a Traditional Bank loan so there are more than one trillion dollars worth of leveraged loans currently outstanding the majority are held in c l os so so far these are just like the equivalent of the subprime mortgage borrowers but theyre there 67 percent of these are rated be so as as he points out that you know you might think be sounds pretty good right its close to a write well that might not sound bad but b. Rated debt is lousy debt according to the rating agencies definition a b. Rated borrow his ability to repay a loan is likely to be impaired in adverse business or Economic Conditions and other words 2 thirds of those leverage loans are like little lose money in Economic Conditions like the ones were presently experiencing according to fetch 15 percent of companies with leverage loans are rated lower still at triple c. Or below these borrowers are on the cusp of default and remember jay powell at the fed came forward with 2. 3 trillion dollars of march when there was a sell off in these bonds and these c. L. O. And that he would use if necessary 2. 00 trillion dollars to buy some of these see. Her mind that the reason the these companies cant borrow anymore is because theres on be companies. The interest on the debt already on the books exceeds their profits and 20 percent of the s. And p. 500 qualify as Zombie Companies and that number is growing every single day and remember back in the 2008 crisis when Lloyd Blankfein other bankers went to wall street to testify and blankfein said i believe was caught in the testimony where he made a reference in an email saying we sell bags of. Like he admitted that they were selling to their own customers toxic securities with guaranteed losses and then making bets against their customers that once the toxic stuff was discovered by the customer the customer would collapse they made a bets on the collapse of their customer having sold them the toxic securities right so that was the trifecta of Goldman Sachs fraud 6 back in 2008 and now its. The same banks whether j. P. Morgan or Goldman Sachs the new guy mortgages they have a new guy now some new clown running the show right and this is obama the way whats the word that describes this as c. C. Clayton powell whats its name Clayton Powell i believe over at the state clayton j. Claim j. Clayton heres the word jay its 5 letters a star so what math are a you can you fill in the missing letter and you fill the missing whether oh thats right youre captured and they pay you to do overlook these things for your job what do you write thats really great thanks for ruining our economy oh ok vanna white. Let me move on to what some of this shows because all of this debt is supposed to because of the financial crisis of 2007 to 2009 remember there was this dad frank act and they said this is going to prevent another crisis from happening or were going to make sure that these banks are stable and theyre not going to perhaps collapse well the same banks are involved in this story wells fargo citi group they all have these huge massive amounts of these c. L. O. On their books but this. Time back in the last time member they created special purpose vehicles as this time you know they just change the word the name and they think somehow its its legal right because as you always pointed out banks operate you know they just commit the crime and figure theyll deal with it later if if you know congress could ever come after them well this time theyre called variable interest and titties and i guess theyre mostly in the caribbean as well and theyre used to hold off book all these positions that are could blow up and destabilize the Financial System and one of the concerns right now is the c. L. O. Zim you know theyre like oh we own the top tranche only so were going to be fine just like they said back in 2008 that they on these top tranches of the c. D. O. Is now they say that we own the top tranche is that these c. L. O. Those but theres a thing called default correlation a measure of the likelihood of loans defaulting at the same time of course if the bottom ones start to default and they are because a lot of these c. L. O. Zar you know it was used by Junk Companies buying back their own debt so they havent invested in the company meaning theres no future enterprise value then there is the factors that they never made money for the past 10 years that they kept piling on and then people got sick of lending to them so they had to go to the c. L. O. Market and now we have a situation where hes saying like the heres a banker a former banker and hes all worried that he said there will be a bank thats going to collapse because were only at the beginning of this pandemic of the economic crisis thats happening and he said so what happens if a bank collapses and then sometime in the next year he says we will all stare into the financial abyss at that point we will be well beyond the scope of the previous recession and we will have either exhausted the remedies that spared the system last time or found that they wont work this time around what then what then max. Vanna white for a member of the sub prime crisis the theory was that you would never have a house in collapse from coast to coast you know that was the theory and never happened ever in the past and it could never happen theoretically and the standard deviations away from the norm are so great that were going to take the risk of doing the subprime lending across the coast to coast anyway and put all these packages in some defensive bonds were all the toxic risk goes to die as we now and of course you had a coast to coast collapse and you had a some private crisis and yet it balla banks barack obama good job barack of the creditor and not the debtors and they engage in moral hazard by stoking the fires give a bigger credit line to make a bigger fraud and they now they call it something new what they call. Well ive used terms a variable interest entity variable interest entity is just the latest in the fraud packaged in a new bottle so that the Financial Press if you do a search under like all those fraudulent behavior banks that term wont show up because its just a its a new its a nilo jism created by wall street to hide the climate in put is in near over there rampant arson and so the results are that the off Balance Sheet debt will simultaneously explode now which bank will be like Lehman Brothers member sixfold at Lehman Brothers during the 2008 crisis when they audited their books every quarter he would take huge portions of risk and move it around these special purpose vehicles that special names we found out about it later this is the latest version of that this is the dick fuld Lehman Brothers prime repeated. Oh as you say are you asleep again this didnt exactly impact full grown oh push my checkbook can i write you a check and you can come entertain my Birthday Party you mean youre so corrupt your koan down bloody well its you know the thing as is beyond weve already covered this over the last few episodes the system is corrupt the system is racist the system is sexist the system is corrupt and it favors you know it is like past you have said it is when a group of men come together become corrupt they create a system that justifies it so we can talk about this all we want about like how corrupt jay powell is and he is like the help because the system is corrupt the fact that he is the chairman of the Federal Reserve means that he is corrupt that is the nature of the situation so as this guy here in the atlantic asked frank porton i asked what then whats going to happen when they cant rescue this system and we already have told you for the past 10 years here in kaiser report got gold got big coin these are the system we could you could try to fight this all you want but the fact is as weve just showed you its the exact same set up the exact same thing that took down the global Financial System in 2008 they just renamed it like as if like renaming it changes it well that thats exactly correct. Exactly as we said it would happen except to pretend im sure gold is figuring this out as well as getting new highs all over the world when we come back much more coming your way dont go away. The sotu at the garage but he so he can each other than the human body. Of the voters are going to quickly use missile. This is just. The emotional i mean she must go if youll still be stuck with me because. Of. The. Soldier shes off the shes wearing. Which so so thats whats keeping the opposing opinion with going on the show stuck with some Russian Police force through this whole. 54 jets and more than 1300 military personnel are headed to air force base in alaska where is that to say come on ill show you whats the reason for any type of enhanced u. S. Military presence in this area rush up. What is it suddenly about the South China Sea that makes it so that it 11000000000 barrels of oil. Take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have Nuclear Weapons capabilities there is reason for concern so thats why were going to drill down on this story for you today right here on the news with rick sanchez where you know as we always like to say we do believe by golly its time to do news again. Welcome back to the kaiser report imax keyser time now to go to the show rene she is the founder and c. E. O. Of Informative Services she is the creator of the largest block chain aspire Global Wealth summit for people of color in the chicago land area michelle welcome to the kaiser report thank you for having me max appreciate it all right well looking forward to this conversation now in 2018 if founded Informative Services your motto is economic parity through education so a lab arrayed on this tell us about your mission good information to police to get education and i saw a deficiency end there. With anything we make decisions so to have a big impact we must have good information to have options available to us good options and as you may know were living in Uncertain Times so my vision is to level the Playing Field good information at least a good education which impacts us economically and socially some would argue that the system is rigged and that people of color is even what great information and great education are facing a bit of a rigged system and part of that reg system has to do with the way money is created and distributed because you also get into this very i did you say to succeed we must not only learn the Monetary System but also on learn archaic and dangerous methodology so tell us about some of the archaic and dangerous methodology is. And how we see them well as you may know over 2008 financial crisis that were learning lesson i i feel in many areas we checked all the boxes we were productive members of society we invested in one case we did all of these things to be debt and guess what most of us was on the shore end of the stick well transferred to another entity and jesse back to raid and were still trying to pick up the pieces with that so even just on that level. Just having information and doing the status quo has have hurt us just tremendously so just to review in 2008 i know but down in new orleans in particular also during their hurricane disaster when there was flooding. People of color in in that area who were really victimized by banks who frauds of the only made loans to them or refinancing on their homes to them and then when it was discovered that the banks had made these fraudulent loans the government bailed out the banks right so this is the 1st time in history that instead of bailing out the debtors who were the victimized by the smarmy lenders they felt they bailed out the lenders so once again as you point out there is a huge wealth transfer black mary huge wealth was moved out of that community another really reprehensible chapter in. You know the the the bankers in this country who who are seem to. You know theres no law they dont want to break but. The what what whats the whats whats the reaction that you get i mean this is his education and information is that is that going to be the equalizer yes i definitely believe it will be to equalize why. A lot of the information essential wise and it doesnt trickle down and if it does trickle down we the people normally dont reap the benefit as if those who were in the know. So good information is key and like i said before in 2008 those who knew get out or those who knew knew how to transfer their wealth so they can have more wealth and with if anything we have many problems one of many situation they have can take to the light or the thing in order to cut or 1 have an impact that i believe that we need yes we do need to make people come on comfortable but yes you have to attack the money supply. And thats when you really see people come into a wellness or are based simply say ok well maybe there is an issue maybe we do need to change something so a lot of things collectively collectively need to be to be handle and need to occur but learning a Monetary System getting negative information essential out that we need in order to make decisions we need to have absence not just any action thrown at us you tweeted that has tagged black dollars matter so labrat on this a little bit well we are one of the number one consumers so therefore. If things need to change and we need to know if something ngs of course money dollars are power period point point and even even in a lot of my readings and things in n. H. Even if history of the Federal Reserve been all those things and even down to son of some of our historic president s they believe that a lot of the power that the power remains with those who what manage the money supply so that best ultimate goal that should be the ultimate goal one of the ultimate goals some just think im in a part of history that there was a black wall street and told oklahoma this was pretty much dismantled you know wilmington North Carolina had a huge but really black commerce area which led to a coup the only coup in American History and now there are all possibility of black commerce was destroyed right so yes you know this is this is a tough go now i dont know if youve read jacksons book bitcoin a black america or heard about this book but it is offering something new on the horizon michel have you whats the so what are your thoughts here oh yes definitely its up to something and thats what i had as a object jackson speak at my Global Wealth summit. So i definitely had him there because with anything x. Lets be honest when a person has a conversation a conversation with another individual normally were looking for commonality were looking for something that we can be familiar with and with and even with people of color such as myself. Sometimes we need information thats coming from us and by us and also having in it or real it agendas thats going to make a positive impact as it jackson death he has done then a big one in black america and providing that information in which i do is apply his book with my be with. My b. F. He may remember so they can have something tangible that they can we can identify with so definitely yes well i mean its a remarkable chapter here and history money history of american politics history from american Monetary Policy and the history of america and Race Relations now you know ive been w