Blew up in a few people make billions and billions of dollars because they cooked the books and they grabbed all that cash and we had cars reports said you know what this exact same thing is going to happen again in 10 to 12 years and guess what here we are 12 years later and stacey and it continues to happen the last time in the 2007 to 2008 financial crisis we had cd those collateralized debt obligations and Mortgage Backed securities and credit default swaps and these things and then lo and behold the Global Financial system collapsed and lo and behold our Central Banks that done with a lot of money that is now being dorf by the amount of money being printed for this go round but the bad stuff actually hasnt even happened yet this is what this article is warning about and its from Frank Portnoy who used to was working at Morgan Stanley at the time of the 2008 financial crisis and hes kind of warning that is going to happen this time but the new c. D. O. Is called the c l o the collateralized loan obligation we have actually warned about this in the last few years a few times on the show nomi prins is often tweeting about this and saying this is going to be the big problem so here it comes again right the looming Bank Collapse not crisis collapse he says the banks are going to collapse the u. S. Financial system could be on the cusp of calamity this time we might not be able to save it he goes on to point out that just as easy morgan. Fueled Economic Growth in the 2000 cheap corporate debt has done so in the past decade and Many Companies have been done that right well you know to come back and talk about some of the concepts and ideas that we reference here on the kaiser report one of them being that the wall street crimes never go away theyre just repackaged and called Something Different so here the c d a collateralized debt obligation is been replaced with the c l o the collateralized loan obligation as if a loan a sum out different than a debt no in fact theyre synonymous but by calling it something slightly different it fools the regulators the regulators are like oh my god what what is a c l o is it anything like a c o i sound i cant comprehend it and by the way can you hire me or has funding to pay me 10000000000. 00 a year at citadel or some other has fun 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 ak. 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 products its expanded you turn 1. 00 ounce of product into 20 ounces of product ok on wall street has 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 and 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 announced 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 life 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 so once the toxic stuff was discovered by the customer the customer would collapse they were made of bets on the collapse of their customer having sold on 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 this thing Clayton Powell i believe over there say clayton j. Claim j. Clayton heres the word jay its 5 letters it starts with half are a you can you fill in the missing letter can 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 20072009 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 book 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 operates 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 tranche is 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 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 matt. Vanna white for a member of the sub prime crisis the theory was that you would never have a housing 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 the some private crisis and yet a balla bank 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 content 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 number 6 fold 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 the special purpose vehicles that had special names we found out about it later and this is the latest version of that this is the dick fuld Lehman Brothers prime repeated. Oh yes you say are you asleep again this is the exact same tick full grown oh push my checkbook can i write you a check and you can come and entertain my birthday party. Here so corrupt your koan down bloody well its you know the thing has 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 crap the fact that he is the 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 Portman i asked what then whats going to happen when they cant rescue the system and we already have told you for the past 10 years here in kaiser report got gold got big 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 thats exactly correct. Exactly what happened except to pretend im sure gold is figuring this out as well as hitting new highs all over the world when we come back much more coming your way dont go away. We go to work some straight home. Listening to national will the thought of you know anybody whos molested that solicit it was a president you spew false and its kind of seen from where your morgue youre more your Partner Group or provide. Water source like you would overdose lucifer misato is just that in the gutter to come to think of nobody it is not my achievement mr davies are 5 you have plans were conceived by lineage and carried out by the people themselves if gallo would produce or even floor it with the idea of making a film like this they probably be branded as crazy. How was the sentiment during the war the soviets were brave heroes resisting the nazis thats going to change of course after the war once the cold war begins. Little people think that hollywood is a free place but only what is strictly defined by only one side of the business and the other side is ideology. How would i define hollywood is they call it the dream manufacturer which i thinks true but i think equally its a problem and the fact. 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 mission 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 with 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 early 2008 financial crisis that were learning lesson 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 had her tremendous sense 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 and in that area who were really victimized by banks to fraud to the lady made loans to them or refinancing on their homes to them and then when it was discovered that the banks had made these fraudulent longs they 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 but impel they bailed out the lenders so once again as you point out theres a huge wealth transfer black mary huge wealth was moved out of that community another really reprehensible chapter in. You know the the the the bankers in this country who 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 is education and information is that is that were going to be quieter yes i definitely believe it will be the equalizer why this in for a lot of good information is centralized and it doesnt trickle down and if it does trickle down we the people normally dont reap the benefit as those who are 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 the health care came to light but the thing is in order to cut or 1 have the 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 or based simply say ok well maybe there is an issue maybe we do need to change some things so a lot of 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 options not just any action thrown at us you twitter 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 blank and even even in a lot of my readings and things in an age even if history of the Federal Reserve and 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 the ultimate goal that should be the ultimate goal well one of the ultimate goals some just think im you know part of the 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 to strive 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 youve heard about this book but it is offering something new on the horizon michel your whats the so what are your thoughts here oh yes definitely its offer something new 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 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. Or really agendas thats going to make a positive impact as it jackson death he has done then a big one in black that america and by having that information in which i do is apply his book with my be with. My be as 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 watching Civil Rights Movement for you know just about 60 years of my life and its its disheartening to a lot of people myself included that there is always that point when there are the justice is not served and equality never arrives you know when i win when you have a point like big question which is on confiscate a ball. I mean this would seem to be a very big selling point to the black community after having so much rov stolen you know systematically by the system for a long long long time with it going to be unconscious capable isnt the one that be a major selling point if you get what i meant definite will be a major selling point because you have the power in your hands and im going back to good information lisa good education because it can be amazing but the thing is even an io traditional system most of us just know how to use the at currency exchanges for good and service not to really get on the other side of well with a big call it definitely provide by its a well tool but we need to go a little bit further to understand how big quinn works in a military system and how we can you be going to not just you know maybe easing can be but to to make cold us who are wealthy and who are dollars the same time and lastly protect their like impulse things occur out well must be protected we just cant just live in our home and leave the doors wide open and Windows Windows and then no one comes then we have to understand what i understand will become anything but black change technology is how we can you describe bandage and manipulate it eagle so we can be on the other side well and maintain our well endure solid and protect right well as to you know write about black dollars matter black yet economy is a huge part of the American Economy if a its a black economy were to secede essentially from the American Economy and go for bitcoin i mean this would be a tremendous and dynamic shift in the politics enough it wouldnt be a political issue anymore it. A paddock over there at the central bank in washington d. C. Because youve got. A challenge to their paper slavery yes there is a challenge yes yes and the thing is i understand it had a Monetary System works getting good information at least a good Education Teaching our children because our School System is the solution in that and people still say well how do we help how do we help people in poverty a lot of money have been thrown into communities that i grew up in underserved communities and it seemed as though that impact hasnt been there its because iraq and weapons are my experience we need to get information to keep going oh im in proceeding so i have well and knowledge so we can throw money at this thing in reference to other so committed goals back to get information if you have to. And what we have also done is we have developing a curriculum so it can be implemented it into our high schools and colleges because again max you know that this is good information reference in a Monetary System how it works it is not being implemented in our School Systems and i believe its strategically done for a reason to keep us at a certain level so we can depend on s. S. The m. B. A. Gives us back their freedom if used the correct way and understanding that in order for a bit more to be your possess you need to have an amount of have you see phrases and as you may know banks are getting into this as the 2 ships and so do we want them custody in our because or not saying not to but understand if there are options thats one option but we also have another option will we can hold d out all right exactly and so anyway were out of time sight out of michelle rinnai thanks so much for being on the kaiser report. I appreciate you and i hope to see you again mr kaiser oh absolutely having on one here so happy to drop black hawk because im all right and thats going to do it for this edition of the kaiser report with me max kaiser and Stacy Herbert want to thank our guest Michelle Renee over their form of services if you want to catch us on twitter its kaiser report so much time by you know. Nuclear become a battleground in the u. S. In vermont people have demanding the shutdown of a local plant from my yankee is right now my focus because its a very dangerous oh no claire power plant the owner is attempting to run the reactor beyond its operational limit this case just sort of puts a magnifying glass on wheres the power in this country wheres it going is it moving more towards corporate interests or is it more in the idea of a traditional participatory democracy is power line with the people this case demonstrates that struggle in the very real way. The struggle. Odd no no crowd. No shots. Actually speak. Well struck no small. Points your thirst for action. Hello from rhode island where i live lots of us are still working at home as we try to starve the virus zoom is the new Conference Room and one convention after another has been canceled in january you saw our report from the massive mind boggling Consumer Electronics show unfabulous last vegas might be the biggest perennial trade show in the world and each year some 150000. 00 of us from all over the world