Transcripts For CNNW The Eighties 20181229

The u. S. Economy, which used to be the envy of the world, is in the most serious trouble since the Great Depression. Inflation is rising, while the standard of living is declining. There was tremendous inflation, and not much growth. The country was not in a Great Depression in 1980, but the United States was in the dumps. On wall street, it was cold, gray, wet, and miserable. In was no comfort to be found outside. And for investors, there was not much inside either. The tickers carried almost nothing but bad news. We would come off a terrible decade for investing. People were skeptical of the stock market. It was a very sleepy wall street back then. Most economists expect a serious recession, with at least 2 million more americans losing their jobs. I regret to say were in the worst economic mess since the Great Depression. Literally from the first moments of his presidency on, president reagan let it be known that his top priority is the nations economy. I put a freeze on pending regulations and send up a task force under Vice President bush to review regulations with an eye toward getting rid of as many as possible. The philosophy behind deregulation is that it works better. This bill represents the first step in our administrations comprehensive program of financial deregulation. Introducing deregulation, finance began to get much more creative and profitable. In money matters, wall street, where leaping stocks have investors jumping. The Dow Jones Industrial average will stand at its highest ever. The past few months have been among the wildest in wall streets history. Stock and bond prices soared in a frenzy of activity. Optimists on wall street are talking about the beginnings of economic recovery. Supporters of deregulation point to the stock market as evidence that a deregulated economy makes money for everyone. The stock market took off like a rocket. And the public saw this happening, and they would read about it. And so all sorts of people who used to have nothing to do with this world started pouring their own money into it. Thats in large part also what drove prices to go even higher. The Ronald Reagan motorcade rolled onto wall street today to the New York Stock Exchange. In the last five years, weve moved from malaise, to hope, confidence, and opportunity. The volume of shares traded hitting record highs, and more americans than ever before participating in the market. Were bullish on the american economy. [ applause ] when reagan shows up at the stock exchange, yelling ronnie, ronnie, is a way of saying americas break. That was Ronald Reagans genius. He was able to link economic faith to faith in america. No sitting president had visited the New York Stock Exchange before. No president would have beaten him for the honor had a vote been taken. They gave him round after round of cheers. Were going to turn the bull loose. The whole world, from reagans white house on, was basically saying wall street is the engine of our economy. It represents growth. It represents opportunity. It represents the american dream. So these guys were basically saying, were going to go do it. This is the big draw on wall street, the smell of money. This is where the action is. This is the over the counter trading. More than 17,000 daily transactions involving millions of shares and millions of dollars, made and lost here every day. And its a game for young people. When you get home at the end of the week and you look back at what youve done, what gives you a sense of satisfaction . I guess making a lot of money. For yourself . Myself and for the firm. When the economy started to recover and become more vibrant, there was a great sense of exhilaration that we survived this miserable period. Lets celebrate, lets party. We have money to spend. Today the fad among young people is to have big salaries, fancy clothes and fast cars. Today theyre called yuppies. But who are these partiers . A yuppy is a person who owns a mcintosh and drinks white wine and thats me. Im having a great time here. A 29yearold is making a Million Dollars a year, expecting to make 1. 5 million next year and 2 million the year after that. For this generation, business is hip. Capitalism is no sin, its in. Is money the number one goal . Yes. All of the fun is waiting for you at the castle trumps castle in a world where mere millionaires are a dime a dozen, theres a new billionaire in town. Hes 40 years old. His town is new york city. Hes made his money mainly from manhattan real estate. He puts his name on almost everything he builds. He says its a symbol of quality. But others say its part of the hype. Donald trump, he is the brand, and he is the symbol of a new swashbuckling approach to commerce and conspicuous consumption. We definitely do have people who have become celebrities just from being rich. Ill take the trumps as an example. Their celebrity is generally that they are rich. Donald trump has also ventured into gambling and professional football and says he could negotiate a Nuclear Disarmament treaty with the soviet union. They say hes land hungry, money hungry, power hungry. The power is nonsense. I love the creative process. What about the name of trump city . Trump tower were sitting in. Trump plaza. Trump castle . It sells, mike. All i know is thats all it is . It has nothing to do with the ego. All i know is it sells. What do you do . Security. We dont need security. We have people outside. Leona helmsley was the wife of harry helmsley, one of the mayor, much bigger than trump, Real Estate Developers in new york. I asked for something. I did not get it from you. I want it. You have nothing to do . The queen of mean. The idea was that she was so mean because she wanted you to have a great experience at one of her hotels. Really . She was just mean. Oh, my. Its paradise. He stands here and he says, im taking inventory. I own this, i own this, i own this, and that one and that one and that one. He plays monopoly but with real buildings. With real buildings. They bought this connecticut estate a year ago, 26 acres, 28 rooms for just the 2 of them. And this building structure is what . Its the enclosure of the swimming pool. And up top . On top were going to have, of course, a dance floor. Dance in an oldfashioned way Leona Helmsley became a kind of symbol of the excesses of the 80s. Am i comfortable . I make a living. Got it . Got it. Its slippery. Nooooo. Noooo. Nooooo. Yeeeesss. Quick, the quicker picker upper bounty picks up messes quicker and is 2x more absorbent than the leading ordinary brand. Hey look, i got it. Bounty, the quicker picker upper. So we improved everything. We used 50 fewer ingredients added one handed pumps and beat the top Safety Standards the new johnsons® choose gentle this is the way we live now. Nice, even temperature. No rain, no snow, no loud noises. Music is playing. Everythings perfect in the mall. In the 1980s, you have 16,000 malls popping up like mushrooms, and they become the high temples of the Great American religion, shopping. Pam and melissa, 15 years old, come to the mall almost every day. They call themselves mall rats. I love it. Its only 24. Consumerism definitely took over in the 80s. People emerged from the 70s from tough Economic Times and went, wow, we can now spend. I want you to think about this also. Thats what is going to set your eyes off. The economy started growing, and it was largely a consumerdriven growth. But the consumer economy was funded by debt. The National Bankruptcy rate is soaring. Greg and diana, annual income, 32,000. They had over 12,000 in unsecured debts, bought a washer, dryer, and beta max tv recorder, then went bankrupt. I knew i didnt have the money. If youve got plastic money, theres Nothing Holding you back. It was acceptable to have a credit card, more than acceptable to have debt. If you wanted to pull it out of your wallet and use it. Live from tampa bay, florida, its the Home Shopping club. Every doodad and tchotchke that mans hand hath wrought. Americans seemed utterly hooked on Home Shopping. I have you down for two of the plush musical bunnies. There are Home Shopping club parties. Likeminded consumers gathered together to do what comes naturally. I want four of those bird figurines. You dont have to leave your house and stuff will come to you. Welcome to america. Give us 300 more people to call on their credit card right now. If you and enough people will send me 100 immediately, i need some very quick money. Go to the phone right now. Now quick talking about saying you believe in god without ever acting on his word. Now. Faith is an act in all, there are 1,600 television ministers. Of the 1. 5 billion grossed annually, just three of them, pat robertsons, Jimmy Swaggerts and jim bakkers, took in 500 million. The primetime preachers say they need the money to stay on the air, and they need to stay on the air to raise money. Money for the kind of electronic equipment any network would be happy to own. I believe god wants us in the next 30 days to have every one of these bills paid in full, and ptl can live if we pay our bills. We can pay the bills if we would all just do something. As televangelism grows, jim bakker, is the one that truly gets it. He understands that preaching on television is not just about standing up and giving a fire and brimstone speech. He understands in the age of television, the Johnny Carson approach to televangelism, being more intimate, showing your lifestyle and your beautiful family, is what brings people in. And hes a brilliant entrepreneur and a brilliant salesman of himself. Ptl. And here are jim and tammy their appeal is powerful. Last year, a Million People responded to the bakkers constant request for money. How many do you have right now . Just about 30. 30 what . Silver 7,000 clubs. Thats 90,000. Praise god. The bakkers have been criticized for their own lavish lifestyle. Just because im a christian doesnt mean i dont like nice things, either. I love nice things, and jim and i work very, very hard for nice things. They say the only difference between men and boys is the price of their toys. Toys like a fleet of luxury cars and fancy homes from palm springs, california, to south carolina. They think by them living well, by them having rollsroyces, everyone will thing, ah, god is shining his countenance upon them and, thus, upon us. And ptl becomes the vehicle for their media empire, for their theme parks. If we are to be fishers of men, thats what the bible says, we are fishers of men, weve been using some pretty lousy bait. Weve just built better bait to reach people. You can have a Lifetime Partnership with ptl for a onetime gift of 1,000. Four days and three nights every year for the rest of your life. That mix of god and greed ends up derailing them and ends up leading them to breaking the very rules that theyre preaching about. Television evangelist jim bakker has stepped down as the head of the praise the lord or ptl ministry. It came because of a sexual encounter seven years ago. Jessica hahn is to be paid monthly as long as she keeps quiet about the incident. It turns out jim bakker has been paying off this secretary, and that shakes the evangelical world. The evidence seems to indicate that effort and money have been expended to cover moral failure. If jim bakker paid jessica hahn hush money, quote unquote, what else has he been doing with the ptl money . Do you worry about the investigation . Not at all. History will prove the bakkers were honest people. We interrupt this program for a special report. Jim bakker, the defrocked head of the ptl ministry, has been found guilty on all 24 counts of fraud and conspiracy by a jury in charlotte, north carolina. Bakker kept selling Lifetime Partnerships at heritage usa, even though he knew they were oversold. The Heritage Grand Hotel could only accommodate 25,000 partnerships but 65,000 were sold. And for the lowerpriced bunk house partnerships, about 7,000 were sold for a building that had only eight rooms. Estelle sent jim and bakkers ptl club was sent 15 a year. She thought the donations would help her. I have made billionaires out of those people when i dont even have enough to live on. Bakker could be sentenced to 120 years in prison and fined over 5 million. I would say i feel sad, but encouraged in god. Tammy bakker said she can best describe her feelings in song. On christ the solid rock i stand all other ground is sinking sand its not over until its over. Of Growth Opportunities e with a level of protection in down markets. So you can be less concerned about your retirement savings. Talk with your advisor about shield℠ annuities from brighthouse financial, established by metlife. That i never would have imagined. Ancestrydna was able to tell me where my fathers family came from in columbia. Its just been a reconnection to my roots. 20 million members have connected to a deeper family story. Order your kit at ancestry. Com. To a deeper family story. Everything was so fresh in the beginning. But that plug quickly faded. Luckily theres new febreze plug. It cleans away odors and freshens for 1200 hours. Breathe happy with new febreze plug. So we improved everything. We used 50 fewer ingredients added one handed pumps and beat the top Safety Standards the new johnsons® choose gentle they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again theres no place likargh e im trying. Yippiekiyay. Mom. Today, we travel to the Lone Star State to visit tycoon, entrepreneur t. Boone pickens, the highest paid ceo in the country. Even here, wall street is in charge. Wall street being a parrot, green as in money. He reigns over an entry foyer that runs the entire length of the house. And at the end of that foyer, we find this morning boone pickens. Good morning, sir, how are you . Good morning, harry. Why dont we go ahead and head into the trophy room, if you dont mind. Sure. T. Boone pickens was a texas oilman who became the original corporate raider. He would buy a bunch of stock in a company, talk about how the executives needed to be tossed out, and make a play to take over the company. The company is only 1 20th the size of phillips, buys 5. 8 of the stock privately. Now pickens lets it be known that he wants to buy another 15 from the shareholders and thus gain a seat on the corporate board. Theres one thing i want to put in place is that stockholders own companies and management is employees. Phillips agreed to buy back its stock from t. Boone pickens to stop his takeover bid. The profit to pickens and his partners, 89 million. Its no secret, youve made about 500 million through losing on your attempted takeovers. Do you go into it anticipating the losses are still going to stand you very well . You never like to lose, but if you lose and make money, well, it makes it a little easier. I remember the guy got up and said, i have a question. He said, youre making a lot of money out of this. And i said the shareholders are, too. He said, yes, but youre a fast buck artist. Fast buck artist . I said, who in the hell would want to be known as a slow buck artist . I see it as a Free Enterprise system working at its best. Pickens was really the first major investor to realize how undervalued American Companies were and what you could buy there. And it was his early tilt gulf, city services, at all these famous deals that brought this new reality to the attention of other investors who followed in his wake and sought to imitate what he did. I freely admit, i am an investor and i want to make a profit. I admit im not robin hood. It is not wrong to want a profit in capitalist america. Its fair. Ivan boesky made a fortune buying into companies being taken over by takeover artists. Boesky doesnt want to run those companies. He wants to profit in the runup from their stock prices. Forbes magazine lists boesky among the 400 richest people in america. Estimating his wealth at well over 200 million. Wheres my share of the profits . Ivan boesky gave the commencement speech in 1986 at berkley and he became famous for one line in that speech. I urge you as a part of your mission, seek wealth. Its all right. A new film wall street used boeskys words as the basis for some of the dialogue. Greed is good. Greed is right. Greed works. When Michael Douglas in the movie said greed is good, i mean, it was a cartoon expression. But theres truth to it. There was a sense that it is okay to be greedy. It is okay to maximize your wealth. What i want to see above all is that this country remains a country where someone can always get rich. Big companies gobbling up little companies. Little companies gobbling up big companies. 8 years ago, there were 1,500 corporate takeovers. Last year there were 4,000 involving 200 billion. This kind of deal is called a leveraged buyout. The company borrows the money, using its assets as collateral for the loan. In return the Company Issues ious. Because its so risky, those ious carry high interest rates, and theyre called junk bonds. You may not have heard of Michael Milken, of the Investment Firm of drexel incorporated, but this 40yearold wall street whiz is said to be the most powerful financier in america. He brought respectability to low rated junk bonds and then used the money to finance corporate raids and takeovers. Without mike milken, t. Boone pickens couldnt have raided gulf, 76 and phillips petrolium. He said if you really want to take over gulf, its going to cost you 13 billion. I said, yeah, i get it. And he said, i can get the 13 billion. Hes the guy that t. Boone pickens goes to and most people havent heard of him. Thats the way he likes it. He doesnt care about publicity and pride. He just cares about doing deals and having power. He was this shadowy howard hugheslike figure that you never saw, you just heard. It was milkens genius that created an entire market and fueled this takeover phenomena. We romanticize these characters. The fact of the matter, these are fat cats, First Cousins to the financial manipulators, the robber barons of the late 19th century. Theyre trying to make a buck by doing nothing and putting people out of work. Economists agree that some unemployment, some hardship is unavoidable in making the United States lean and mean again. But the takeover specialists call it corporate restructuring. Corporate America Needs some kick now and then to become a little more efficient and a little bit less entrenched. And that will probably do our economy a lot of good. Thursday, goodyear fended off a hostile takeover bid but victory didnt come cheap. Goodyear won by buying back half its stock and taking on a huge debt. Plants were closed and workers laid off. The company pays 1 million a day in interest to 17 banks worldwide. These fellas\y jump out of the closet, shout gotcha and buy up the company with its own assets, dismember it and erode the Industrial Base of this country. Maybe we didnt understand how it all worked, but we saw a lot of people losing their jobs. And a few people getting super rich. And the vibe of the culture being, thats good. How much is enough . Enough what . Enough money, enough power, enough influence, enough takeovers . This is my work. This is what i do. Let me do what i do. Its not a question of how much. This is your locker, right . mixed chatter distant chatter outside heavy breathing weapon clicking silence get stronger. Get closer. Start listening today to the Worlds Largest selection of audiobooks on audible. And now, get more. For just 14. 95 a month, youll get a credit a month good for any audiobook, plus two Audible Originals exclusive titles you cant find anywhere else. If you dont like a book, you can exchange it any time, no questions asked. Automatically roll your credits over to the next month if you dont use them. With the free audible app, you can listen anytime, and anywhere. Plus for the first time ever, youll get access to exclusive fitness programs a 95 value free with membership. Start a 30day trial today and your first audiobook is free. Cancel anytime and your books are yours to keep forever. Audible. The most inspiring minds. The most compelling stories. Text listen9 to 500500 to start your free trial today. It was a week to remember. Bankers hours posted on the doors of savings and loan institutions in ohio didnt mean a thing. The doors were locked. The run on ohio savings and loans began when Home State Savings Bank were besieged by depositors who demanded their money. I dont have a lot of money and im 79 years old and i need that money. I made a decision after weighing several options we had to close all 71 of the privately insured savings and loan institutions. Theyre faced with the dilemma of solving the worst financial crisis in ohio history, the situation thats being called the worst banking crisis in the u. S. Since the depression. The deregulatory climate of the 1980s, the savings and loans which had traditionally invested only in mortgages, were free to invest in pretty much anything they wanted. Basically what happened was, the entire s l industry got taken over by a bunch of entrepreneurs who saw them as piggy banks. Vernon savings was shut down and saddled with 1. 3 billion in bad loans. The owner lived a life of private jets, yachts and mansions. They took risks that should have been untenable for a banker. When it all went down, the entire industry went bellyup. Quiet down im going to disperse the whole bunch of you. This was the third day on the run on the Old Court Savings and loan corporation. I have no choice, we have to close. I dont think its right. Its our money. This year, a record 260 banks will go bust. Thats almost 800 in the past 5 years. Bad loans to the third world. Bad loans to the oil industry. Bad loans to Real Estate Developers. One of the reasons bankers made outrageous loans was because of federal deposit insurance. If the loan went well, you rake in the profit. If the loan went poorly, then the federal government picks up the tab. With deregulation, the s ls got into that commercial Real Estate Market and lost their shirt. All over the United States, people were building projects for which there were no buyers, mile after mile of these partially completed condos. And theyre all on the s ls books. Theres something wrong about the savings and loan industry today, and it isnt me. Charles keating was a lawyer who got into banking and was able to buy a savings and loan. When keating bought lincoln savings and loan, he used it as a private piggy bank for his own ambitions, like the venetian hotel, which cost 500,000 per room to build. That hotel is a magnificent investment for savings and loans dollars, no question about it. The real problem is when our appraisers looked at it, it said its not such a bad hotel. Its worth 200 million, not 300 million. Bill black was one of the federal regulators who really spearheaded going after keating. We discovered likely fraud. Just really basic things that no honest bankers would do. The examiners looked at 52 real estate loans lincoln made. There were no credit reports on the borrowers in all 52. On top of that, Charles Keating has lincoln savings sell uninsured junk bonds, and he targets the widows and the retirement community. There were 23,000 customers who would buy 250 million of these bonds. We had sold our home in sherman oaks. My husband had a stroke. We moved down here, went to lincoln savings. How much . You really want to know . It was 30,000 and for us, that was quite a bit. Capitalize on this, the bond salesmen were told. The weak, meek, and ignorant are always good targets. The regulators were looking at us saying, this guy is a disaster. We have got to stop this. But by that time, keating had a Construction Company in arizona. He had thrifts in california. His tentacles spread out to several states. So he was able to call on congressmen and senators, like that, and say, hey, get these dogs off my back. This morning, the s l crisis goes to capitol hill. The Senate Ethics committee is looking into charges against five senators accused of intervening with federal banking officials on behalf of s l owner Charles Keating. The keating five are john mccain and democrats alan cranston, john glenn, Donald Riegle and dennis deconcini. They reportedly received a total of 1. 3 million in donations. Former Bank Board Chairman edwin gray says the senators tried to subvert the regulatory process. I was told to come alone. I did. Did you find that unusual . Absolutely. Never happened before. The whole time i was in washington, i never saw that. No witnesses . No, no witnesses. Deniability. Perfectly built into the meeting. They said they wanted us to not take the enforcement action against lincoln savings. The only thing that got them to back off is when we finally said, were making criminal referrals. Youre going to bat for criminals. Now awaiting trial on charges of criminal fraud, keating has refused to testify to the senate. Was there something wrong with five senators meeting . Yes, its a bad appearance. But the real question is, did john mccain abuse his office . The evidence indicates clearly no. The keating five became a symbol of the 80s because its a group of distinguished u. S. Senators accused of taking bribe money. They get off the hook eventually, but it really rocked the country because it showed not only was Corporate America being questioned for corruption, but the u. S. Senate seemed to be a beehive of bribery. One question raised in recent weeks, appeared whether to do with whether my Financial Support influenced several political figures who took up my cause. I want to say, in the most forceful way that i can, i certainly hope so. Are you a christian author with a book that youre ready to share with the world . Get published now, call for your free publisher kit today a financial scandal causing increasing concern involved investors who make killings on wall street to the because of luck or skill but because of Insider Information not available to anyone else. This coded document might be a secret Earnings Report showing disastrous losses or a confidential assessment of future profits. If you are 1 of the 32 million americans who own stock, such information can either cost you money or earn you money, perhaps millions of dollars if you find it out first. In either case, it is illegal. The single biggest currency on wall street has always been information. And in the 80s, that information was trading back and forth. And investors were talking to their buddies. They went to Business School and law school with who were working on these deals to find out. It was pervasive. The security and exchange commission, which monitors potential abuses, says currently penalties arent strict enough. This is a serious course of misconduct and at present, the sanction is simply akin to asking someone to put the cookies back in the cookie jar. In tonights money matters, the biggest insider stock trading case ever. Investment banker Dennis Levine collected 12. 5 million in illegal profits by gaining advanced knowledge of 54 pending takeovers. Then from a phone booth, hed call an accomplice in the bahamas who would buy stocks in the names of two dummy corporations in panama. It was the first time the s. E. C. Has been able to nail down Insider Trading by one of wall streets big dealmakers, somebody with a Million Dollar a year salary which apparently wasnt enough. Insider trading could become wall streets watergate. Plea bargaining is now under way with Dennis Levine. Authorities might be able to develop a list of new suspects. We start the investigation, and once his lawyer advised him that his interest to cooperate, he would give you the information. To him, it was just another deal. I think the judge made it clear that he would have given mr. Levine a heavier sentence except for the cooperation. Dennis levine was one guy doing Insider Trading and thats not something thats new. But what Dennis Levine did is what led to ivan boesky. The securities and exchanged commission stunned wall street today when it announced ivan boesky has been fined the largest penalty ever for Insider Trading and has been barred from the industry. Boesky did what he claimed he would ever do, use Insider Information to buy huge blocks of stock in companies secretly involved in takeover deals. Ivan boesky was a crook. Handing bags of cash to people who would give him inside information. If we had Capital Punishment for white collar crimes, i would say he would be a prime candidate. Ivan boesky arrived in court to hear himself described as a man whose arrogance has been stripped away. Theres no doubt that the man become a symbol of whats wrong with wall street. The news of the boesky indictment was like the bombshell on wall street. What do we call greed the day before an indictment is filed . Recently, we called it success. Some of the people who have turned out to be engaged in criminal activity, people such as ivan boesky were being hailed as heroes at the peak of their careers. Many of americas small investors have been appalled at the boesky affair. I think they should put them in jail. Since 1984, there have been more than 48 cases of Insider Trading brought by new yorks attorney rudolph giuliani. Rudy had the aura of being the best man in Law Enforcement to do it. We may not catch all of them but we can deliver a message that is if you do get caught, you are going to lose your liberty and go to prison. Today as the prospect of a much wider scandal seems certain, the market was off more than 40 points. This after it was learned that ivan boesky was talking, and then some. As one form eer s. E. C. Officl put it, this is like arresting the madame of a brothel and finding her private book of clients. This guy, boesky, takes a fall and all over wall street, theyre practically jumping out windows. It comes out hes been taping his phone calls and maybe private talks for three months. And wall street big shots begin wetting their well, you get the idea. Of course, boesky was guilty. There was going to be no defense. All he had was bargaining power. Who could he deliver . Levine was a fish, boesky was a shark. Who is the whale theyre going to catch . I dont know. Drexel burnham . Well, thats possible. In the middle of all this is Drexel Burnham lambert. Until a few years ago, a littleknown wall street firm. And then, it shot to the top by specializing in socalled junk bonds. High interest but also high risk. Drexel and the head of its junk Bond Department Michael Milken made a deal with ivan boesky to make millions of dollars illegally. California company wicks came to milkens firm and said it was planning a takeover. Boesky bought the stock before it went up, shared the profits with milkens firm, but milken betrayed his client, charged a milliondollar fee and secretly earned 6. 5 million more at the clients expense. Authorities are worried that further disclosures resulting from the boesky affair may weaken Public Confidence in Financial Markets and weaken the markets themselves. I just came from inside. It looks like a mad house. I guess the bull markets over. Its a bloodbath down there. Theyre calling it the monday massacre, the worst drop in history. I call it the nearest thing to a meltdown i ever want to see. By the closing bell, the Dow Jones Industrial average was down more than 500 points. This is a crash people hadnt seen, frankly, since the Great Depression. No one had seen the stock market fall that quickly, that fast. Paper losses of more than 500 billion. October 19th, 1987, wall streets black monday. That crash was one of the first signs of how dangerous this new era could be. That what the market had given, the market could take away and take it away really, really quickly. Theres only two emotions on wall street. One is fear, the other is greed. Usually we have an excess of one or the other. I think we have now an excess of fear. We have now, i think, an excess of fear. So we improved e. We used 50 fewer ingredients added one handed pumps and beat the top Safety Standards the new johnsons® choose gentle they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again we will have a recession. We always do. Its just a question of when. My guess is its probably 1989, rather than 1987. A little present for the new president. President s always seem to manage to get that as their gift after the inaugurals. I promise you, if Congress Tries to raise taxes when im president , and you know they will, ill say no. Theyll try one more time and ill say no. And if they try a third time, ill stare them right in the eye and im going to say to them, read my lips. No new taxes in 1988, george h. W. Bush is running to take on the reagan mantle. Read my lips, no new taxes. [ when Ronald Reagan left the white house in january, he also left george bush holding the ball, filled with an assortment of staggering problems. When the president calls, some come running. All agree the savings and loan crisis is an urgent problem. Could the s ls be bailed out without a tax increase . Is there any other way to do it . I dont think there is, and thats becoming the conclusion of most people. Bush had to fill this smoking hole left by reagan for him, and the only way t tt is pass new legislation because now we had to start dipping into taxpayer money. The senator says only bailout will be for depositors, not for bad bankers. No one needs to worry about one nickel of their money in these institutions. This legislation says to tens of millions of s l depositors, you will not be the victim of others mistakes. Thank you all very much. And now im proud to sign this monster. Essentially, george bush is covering the biggest overdraft in history. Bush caves. He raises taxes. That kills him politically, but saves america economically. Listen carefully to this number, 500 billion. Thats the latest estimate of what the failure of hundreds of federally insured savings and loans will eventually cost american taxpayers. Mr. Keating, how soon can you make bail . No questions. The once rapid growth of keatings failed lincoln savings of california had been fueled by worthless bonds. The majority bought by seniors, many losing their life savings. Charles keating was convicted in two trials, but both of those verdicts were overturned, and then he pled guilty to avoid a retrial and was allowed out for time served. The climate had gone from celebrating the excesses of wall street to condemning them pretty quickly. Tonights headline, milken pleads guilty in what may be the largest individual case of fraud ever to rock wall street. A case which ended in a plea bargain with the government. Judge kimble wood said milkens crimes merited his removal from society. She sentenced the onetime king of wall street to ten years in prison. He didnt go in for anywhere near that. He did go to jail for just under two years. Im confident when he left, he was at a minimum a billionaire, quite possibly a multibillionaire. The game of monopoly could have been invented for donald trump. But monopoly is a tricky game. When you borrow 2 billion and the economy goes into a tailspin and you cant pay the interest on your loans, the bankers move in. Donalds 100 million yacht goes to the Boston Safe Deposit and trust company. His half interest in the Grand Hyatt Hotel goes to bankers trust. His trump shuttle goes to northwest airlines. The man who was the darling of the 80s is seen as a man in trouble, and he knows it. Insofar as we can say that the 80s was a period of hedonism and excess, the end of the decade was the hangover. Its more like the rich are taking a tumble now. Leona and harry helmsley, one of the richest couples in the world, were today treated as common criminals. Booked in manhattan for tax evasion and extortion. The government charges the helmsleys rep elevated their 11 million estate and wrote the cost off as a business expense on their taxes. A former housekeeper said mrs. Helmsley told her, we dont pay taxes, only Little People pay taxes. Helmsley was sentenced to four years in prison, given a 7 million fine, and ordered to serve 750 hours of community service. To some, the sentence was too light. I have done nothing wrong. Im innocent. My only crime is that im Leona Helmsley. No matter how many white collar thieves get sent away, no matter how long theyre locked up, the public will still be paying for this long after theyre out. So what did the 1980s add up to . We put that question to a fair number of people and more than 95 of them said simply it was the decade of greed. Well, we learned that greed may be good. But too much greed is bad. And that sometimes people on wall street get a little too greedy. But they learn their lesson, and they would never do it again. Some argue that todays bright spotlight on unethical behavior has exaggerated the problem. But theres no denying the problem is real. And if we excuse unethical conduct by saying, well, everyone does it, or its really okay unless you get caught, or its not against the law, we miss the point of why its important we not do it, period. The point may be no less than national survival, as a people who can live together honorably. If we let lying, cheating, and stealing become an accepted way of life, its not just a few dollars that will be lost, its the spirit of the country that will be lost. The decision is ours. The u. S. President s new threat, donald trump warning he may shut down the entire southern border if he doesnt get the walled th that he wants. The british home secretary declares the fast growing number of migrants crossing the english clanlele lle a lle channel as incident. And well take an indepth look at the special counsel at the department of justice. We are live in atlanta and we welcome our viewers here in the United States and around the world. Im george howell. Th