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and others do that some colleges will take advantage and say we can keep hiking our tuition. there's going to be an escape hatch for some of the students who need it. >> this is what we commonly look at in law, a moral hazard problem. if you forgive loans are going to encourage people to build up their debts and expect the government to bail them out. you're right. you're going to basically give a free pass to colleges and universities keep increasing tuition expecting the government will bail out students and then they will keep paying more and more. my problem is think about the next republican president is going to do. that's what i asked my democrat friends. president trump in 2024 is going to cut tax rates to 5%. president desantis come he's going to stop collecting all social security taxes. that's the real problem. presidents don't enforce laws that they don't care for instead of working with congress to get laws changed. >> shannon: i imagine some of
very reluctant to send in troops, the troops have been massing just over the border. but i've been talking here at a conference in la jolla, california, with experts who know everything about china and hong kong, and they say china is going to be very careful. the one point i'd make about trump's statements, there's a moral hazard problem here. we don't want to imply to those protesters in the streets that we'll come in to help them if the troops come out because that's clearly not true. but we do want to say that the world is watching that these disputes should be solved without resort to force. that's a standard line for an american president. and i honestly have been shocked that president trump has not said that basic thing. he's almost seemed to be inviting them to come in and crack down. he needs to say the world is watching. we expect this to be resolved without violence, and, you know, i think those students that are singing the american songs, that
conduct a criminal investigation and not just governor scott, reached out to florida attorney general, florida department of law enforcement, the u.s. attorney could not be bothered, these are federal offenses as well and i warned at the time if they didn't prosecute her or remove her from office she would be a walking flown, moral hazard problem, she would engage in this kind of illegal activity in the future and we would lose faith and confidence in the election, all of that has come to pass. we have seen how it is for 11-year-old to rig the machines, we've had to report in weeks and debbie wasserman schultz boasted that they have many ways of rigging elections. heather: as we talk about this i want to bring up latest numbers that we have in senate race between scott and nelson,
5.5 million home owners. >> when she said that it was 19 billion in the red now it is 30 billion in the red. people say but i didn't plan the hurricane. i didn't know the river was going to flood. we need to help these people. what's wrong with that? >> first of all who are the people? people like you, there are people richer than you are. people who are building beach front properties $10 million homes in miami beach. >> movie star homes derek jeter's mansion in florida, the kennedy family. >> the question is why should taxpayers pay to rebuild their homes. this is a moral hazard problem. we encourage people to over build on river beds or beach front properties because guess what? if there's a big storm like sandy the taxpayers rush in to
handled well? what was wrong with it? >> well, i think in 2008 we were dealing with a situation potentially spinning out of control and so we threw a lot of money at it. we were flying blind. we didn't have a playbook. i didn't really like what we did then but i at least understood it better. in 2008 we did have a stable financial system. i am a rip the band aid off kind of person. i think that's when we should have started imposing some discipline at least for sick institutions, making them sell their toxic assets that would have given them a realistic mark. that continues to be a problem with the bank balance sheets. a lot of the assets are created at an inflated value. if you prop the bank up and leave all the bad assets there, what do they do? they nurse their balance sheets. when you get into a business cycle you want a healthy institution willing to go in there and take some risks and to lend. sick banks with a lot of bad assets just don't do that. there was the moral hazard
washington and from taxes and that is unhealthy. >> if bailouts were so unpopular, why do they come back and buy g.m. cars and buying chrysler cars? it seemed like the american people are starting to by into the new car companies. >>guest: look, some of the cars gm and chrysler are making are good cars, no question. the company that is doing best of the big let is ford and to in the forget ford did not make a single penny of taxpayer pun is i say the patriotic thing to do is buy a ford car if you buy american. i worry about the moral hazard problem, we created a situation where every big company and bank feels like they have this we system from washington. republicans should respond by saying, the democrats have become the party of corporate
western powers are trying to make room for people that may or may not be capable of filling that space. >> no doubt, this is a gamble for the president. people look at whether gadhafi stays or goes as a measure of president obama's strength in the world and what he is able to achieve. i think richard's right. sometimes you have to be careful of joining oppositions that aren't really in a position to win. you can create a moral hazard problem of getting other people elsewhere that begin campaigns against their government, they are not quite ready. those inspiring protesters in egypt were on their game. they knew how to move their people, how to resuscitate themselves when people thought the air was coming out of the protest in egypt, they shocked everyone by showing up again. that may not always be the case. what i recently said, one of the uncomfortable truths in this, sometimes revolutions aren't won by the protesters. it is going to be a mixed bag in the middle east. hopefully we'll do okay in libya, but i have some doubts. >> steve clem ons of the new
i think richard's right. sometimes you have to be careful of joining oppositions that aren't really in a position to win. you can create a moral hazard problem of getting other people elsewhere that begin campaigns against their government, they are not quite ready. those inspiring protesters in egypt were on their game. they knew how to move their people, how to resuscitate themselves when people thought the air was coming out of the protest in egypt, they shocked everyone by showing up again. that may not always be the case. what i recently said, one of the uncomfortable truths in this, sometimes revolutions aren't won by the protesters. it is going to be a mixed bag in the middle east. hopefully we'll do okay in libya, but i have some doubts. >> steve clem ons of the new america foundation, publisher of the washington note, required reading. thanks for joining us. >> thank you, rachel. >> international events are overtaking domestic news.
itself, weren't they? >> right, exactly. that's so interesting. talking about this moral hazard problem. as you said in the beginning this is why you do not structure these services. in a sort of interesting way, it's an argument for single pair health care. the whole thing is we have single pair firefighting. the reason is to avoid this kind of situation. we all pay our taxes. we all receive this universal benefit and there's a tremendous amount of science literature and sort of comparative that show these are the structures that are most efficient that work best. social security is the same thing. we all pay in. we all universally receive the benefit. when you look at the health care bill, right, it makes you wonder about how we would design a fire department today in the face of right-wing obstruction and corporate interest because the health care bill is mandatory insurance. it requires everyone to buy the equivalent of fire insurance and sanctions them as having the single pair system.
to his name for expressing the human point of view on this as opposed to the robot viewpoint, they were all focusing on how well the system worked instead of questioning the whole system itself, weren't they? >> right, exactly. that's so interesting. talking about this moral hazard problem. as you said in the beginning this is why you do not structure these services. in a sort of interesting way, it's an argument for single pair health care. the whole thing is we have single pair firefighting. the reason is to avoid this kind of situation. we all pay our taxes. we all receive this universal benefit and there's a tremendous amount of sicience literature ad sort of comparative that show these are the structures that are most efficient that work best. social security is the same thing. we all pay in. we all universally receive the benefit. when you look at the health care bill, right, it makes you wonder about how we would design a fire department today in the face of right-wing obstruction and corporate interest because the