Remember, that is the same thing that the government was saying after the 1987 stockmarket crash, Something Like it could not happen again. Until september 2008 something kind of like it did. Wall street landscape is so dramatically changed. A Lehman Brothers filing for chapter 11 bankruptcy. 6,309,000,000,000 in assets the linen brothers bankruptcy filing is the biggest in u. S. History. Where did it leave us and where does that leave the president ial candidates . Worst since the depression. Makes 1987 look like a walk in the park. They thought it would keep shooting up, but it did not. It does not mean the death of the economy. Far bigger. To take from everything going on on wall street and conclude that that means street is missing the surprising resilience of america. We will be okay. Well, nearly 700 billion sense, what have we really learn . The guy had to police where that supposedly bank rescue doe was going when he learned almost immediately it went to a lot more places than just banks. He is here now. Great to be back. Neil here were talking of a bit break where you were five years ago. I was a federal prosecutor in the Southern District of new york, securities fraud prosecutor running a mortgage from a group. All the things we have seen on a smallscale suddenly blowing upon a national scale. Here we are teetering on the brink of a total economic collapse. Was a remarkable time. Neil to do have any idea down the road the would be the guy policing the very find that was ostensibly used to bailout capitalism . To say that it was the farthest thing from my mind would be an understatement. Neil when did you get that role . Interviewed in october of 2008 and confirmed in december. At the time it was all kind of some real and unreal everyone seemed to need help. Not only question the financial restitutions, but those that were doing it relatively okay how did we get to let it sell out of control . The bill is very broad. What Congress Passed and treasury did created a very ambiguous term that gave the secretary of the treasury remarkable amount of discretion. All of that was within the four corners of the agreement. We started focusing on what happened to the money once it got out there, particularly when the banks are getting hundreds of billions of dollars and returned to focus on what theyre doing with it. Using it in the way we were told to help restore the economy so that we can have a robust recovery or otherwise. Unfortunately found out it was a lot more otherwise. Neil what do you think about if we had never done that . The argument for doing it is that we faced a depression and that it would have been just horrific. If i was the Decision Maker would not want to find out. The potential for it to be catastrophic was there. When i got there in december the panic level was very high. It is a counterfactual, so its impossible to know exactly what would happen. Neil that was the argument ostensibly. The world was shutting down. That is not necessarily mean that we did was entirely the right thing, but something had to happen. Institutions were too big to fail. By definition they were in we would have had if the dominance cub falling, it could have been catastrophic. Neil the argument is that is corrected too big to fail. I do not think that we have. That is very much in our faint thinking. Of course we would. That is a political argument and one that was put forward by the largest financial restitution, but the reality is that the banks are 20 to 30 bigger than they were. They are bigger, more powerful, interconnected. While we may be a little bit safer, it is a far cry from being safe. Neil what do you mean by that . Come listening to these institutions knowing of the government will have their back. But a lot of the premier ones want to get bigger to make sure that there would be insured and helped by the government. That and not see anything that is changed. There is a big profit in being too big to fail. You get to borrow money more cheaply because everyone assumes i can lend money. Add in not need to worry about it because the government is going to come in and make me absolutely. There is a lot of bad incentive. Incentivizing more borrowing, more money, more leverage. Incentivize is greater risktaking. That drives risk which makes things more dangerous. It is the perception of the bailout that drives a lot of these problems, and i think that is where we are today. We are safer, more capital neil but stocks marketing tanked. And will be the same toward the rear of trying to run through. And that is the problem. You have institutions that are so large and interconnected that the perception is that the failure of one will topple the economy. The bottom line is if that gets in trouble one way or another we will end up bailing out. Neil do you find it odd that the very market that we talk about today fears the day ben bernanke in the fed stops killing it with all of this money to keep it going . It is ingrained in our culture that we do not know what to do if the health goes . Our economy is in an extremely artificial place. We did not have the robust response. It is one that is based upon fed stimulus. A lot of ways, a fear of what will happen when we take the panel of the metal if you will. Neil Larry Summers out of the running for fed chairman. Much more inclined to keep priming the pump which critics claim the markets jump post the news. They want to see that coming. I really think a lot of this, the fact we are even having this conversation shows the failure of the policies in the aftermath of the financial crisis. It just was not there to stimulate the growth. We did not take care of the middleclass, struggling homeowners, icky Macro Economic. Neil we tried, but we constantly fail. We barely tried. There was never really a commitment. Neil your solution. Hundreds of billions of dollars available that ultimately went unused. Congress directed them to do something about the housing and foreclosure crisis. What we did was something far short, basically extending it out. Homeowners and didnt getting foreclosed upon, and we have that real chance of the Macro Economic impact of the sinking housing prices and massive foreclosures that we walked away from. Neil mortgage lending is coming back. We are not out to the races but certainly off the mat. You predict the argument that all is good. Well, all is good for some. But for those who are on the edge, they have been largely pushed over. The longterm unemployment. Trillions and trillions. Most in the bottom half of society. It will take generations to recover from. The bailouts were not supposed to just help the banks. There were supposed to hold help everyone. Neil it was confusing. Pushed by the same washington in the congress this said we want to see more lending, but we want to see it done judiciously. These are the same political types that are saying banks were not lending enough, so they pushed them into this behavior. So there is a sort of the jekyll and hyde of washington mentality to this. There certainly is. With one hand theyre pushing them in one direction and with the other hand theyre pushing back. As part of the reason why were where we are today. We did not have a comprehensive policy. Neil did you realize that the genie was out of the bottle, washington had already established a precedent. Bailout for one is a bailout for others, and if youre up against the wall the government will be there. Absolutely. When it comes to the biggest Financial Institutions the message was sent loud and clear and it was stated. Neil sliding into health care. What happened . Some of the other parts of the market. But really you look at the longterm impact will be. Neil ostensibly they got a pass. There were nationalized and now we are trying to wean ourselves from these mortgage lenders. But we have not. That is one of the more staggering things. Five years later the crisis, and they were the first of really massive bailouts. Their kind of still in the same situation, officially under governor government conservatorship, but the system is more or less exactly the same command we are still talking about whether we will keep it, change it. Neil do you think we should debate . My inner capitalist says of course. My realistic is what that would potentially due to the Housing Market in this country is sort of unfounded. Neil so many mortgages. Because we have become very accustomed to what it is to have government subsidized mortgages with a we call it one and pretend that we did not, its still there and helps make that possible. We have to decide what we what did we want something thats a little bit more flexible but maybe a little bit safer systemically without having the government on the hook. Those are big questions. Kind of amazing that we do not even some close to answering them. Neil to your point earlier, it could happen again. If we did not make fundamental changes, especially with the too big to fail model it is likely that it will. Neil okay. Meanwhile dont look now, its getting a lot more expensive and a lot more on popular. Why todays shooting in washington has given the nsa reprieve . How that could be the problem. Using the shooting as cover to continue. The pursuit of a better tomorrow is something we all share. But who can help you find your own path . Who can build you a plan, not just a pie chart . Who can help keep your investments on course, whatever lies ahead . That someone is a Morgan StanleyFinancial Advisor. Who can help keep your investments on course, and were ready to work for you. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Well the shooting in washington, i would not be surprised if some at nsa are relieved in washington, it takes focus off them, that is what happened every time there is an incident. Suddenly folks are back to worrying more about finding the bad guys than the government spying on us under the guys of guise of going after the bad guys, robert. Does this concern you . Does the whole thing concerns me. What happened today concerns me. I was a dearc agent, i know dea agent, i know what military bases are like, nsa, is really monitoring a lot of different terrorist activities. Putting networks together. Then have you Something Like this, one person, maybe a disguneled employee or got involved with the wrong people, and does something off of the radar screen. People will slip through the cracks, there is no doubt, no matter how well nsa does or ho w so face kated they are. I know that all of the snooping and all we had did not prevent boston, and not this. So, i know, nsa Security Breaches and the like are not really being discussed today because of this. But that is ma worries me. Under the guise of keeping us safe well forget about that. The worst decisions that lawmakers maker in response to a tragedy, they are not well thought out, they are kneejerk reactions, this was a tragedy, but end should never justify the means, to think that shooting will be used by those who believe that snooping is a good thing to say this why we need to turn our Democratic State to a police state, that is not tollable, we need to make decisions, not in the moment of a tragedy but in the moment of thinking it well, thinking have it well thought out. We could not even stop snowden, he worked for the very government, they cant police themselves, this should not be the lightning rod to justify it. Neil i look at uproar after nsa revelations about spying on peoples emails and bragging about able to access 75 of all email traffic, 115 million phone records, when the guy who helped write th patriot act coms out said enough this is over done, and joins with likes of nra, and aclu, talk about a cast of characters. I like it i am in the security business, i like to feel safe, i like to know what is coming my way. My business is get as much information as i can ahead of time, you know working in government, seeing now they are run, knowing that as long as they are not targeting individuals they are doing a wide link analysis, focused on Different International calls and emails, i dont have a major problem. 1 we focus on individuals, and once we focus on individuals and personal emails. That is the next step, that isny fear, once you have 115 million americans phone records they are not tapping anyone that we know yet but that would be next step, i wonder if i get caught up because a made a call to paris or morocco that is what worries me. Those line ofs that we love to use, the slippery slope, what comes next. If it was okay here, now we have this tragedy, lets move it over here and justify it, all of these catch phrases, what is going to happen to people who buy the new iphone, their fingerprint now government will have access to that fingerprint . To me, again, we live in a democratic society, we have a bill of rights and a constitution, 4 amendment, our rights to citizens to be free from unreasonable searches and seizures has been around for a long time, there is a reason for it, once that is taken away, the ends do not justify the mines, this will not be a happy place to live. Neil. 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If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop takg cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Jason, food stamp recipient. Another day in the life of jason, living the rat life. What is the rat life . Your typical day . Early morning guy . Get out get later in afternoon guy, wake up, go to the beach, you know my friends. Hit on some chicks. Drink. This is every guy my daughter has ever dated. But anyway bad news for this guy, republicans to cut off his food stashes but with more food stamps but with more than 36 millio46 million americans, l those folks need them . Lets ask. David weber, and ran basso, im jean. You are argue that a guy like that is the exception. I do, the moment, massive inequality. Neil you date guys like that. Absolute please, i was so stock on that. Neil imagine being the girls gather. A huge inequality in america worst in history, going after food stamps, im sorry that is stuff that revolution is made of, why on earth 48 million get it . This is 40 billion worth of cuts over 10 years, why are not republicans going after cutting 100 billion wasted to corporate welfare, crony capitalism, okay 200 billion in farm subsidies, why not after trillio tril doll. Neil you would say it is okay after all but not selective. They need to go after other areas first, this is the stuff that revolution is played up with income inequality in america. Have you characters like nancy pelosi and new york state senator jil gill grand saying tt food stamps are good for the economy is absurd, look at meat, cheese, dairy, if you can buy sida and all these things that are off mark people are abusing the system. It is not just one important, i think it is a large percentage. Neil i dont understand 48 million. How many do you think really need it. I dont know, if you have people back to work we will have fewer people on food stampy woo doubled people on food stamps since the obama administration, doubled. Neil the republican approach is idiotic, and disrespect the only way to get food too. S isstood stamps to work 10 or 10 yours a week. So this is higher programs needs to be revamped. Neil 48 million. That is a lot of people, all political stripes want to make sure those who are genuinely hurting are fed, but you cannot tell me that 48 million would be in that plate. Have you look add the income inequality figures. Neil 48 million. But that is a long way from saying starving masses. Neil you think that 48 million . Yes, strugglin. Neil not struggling starving. 48 million is a fair number. I find it hard to believe, i dont think it is heartless to say so, the again program of made for people that were starving not struggling there is a difference. Neil i dont know where this goes for now, i would agree this is not helping republicans. If this guy is looking more president ial to the world, that is him with a jacky and the shirt on, then this guy, does history prove he is already a wounded boss and never will. Thank you orville and wilbur. Amelia. For teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making i it. [ male announcer ] now, taking care of things at home is just a tap away. Introducing at t digital life. Personalized Home Security and automation. [ lock clicks ]. That lets you loser to home. Thats so cool. [ male announcer ] get 100 in instant savings when you order digital life smart security. Limited availability in select markets. Limited availabili