talked some seven weeks ago. that yielded no results. there s hope this one will. welcome, everybody. i m neil cavuto. we had a crazy day at the corner of wall and broad. we did add have two prominent irish men break bread. let s go to capitol hill. the president and speaker did not meet since they discovered the debt ceiling. no formal talk today. this luncheon has a history of helping political opponents solve problems like the good friday accords. i agree with the speaker. there s no reason why we can t find common ground. there s no reason why we can t hope to change this direction of the extremes both our parties are pushing. mccarthy whispered to the president good job after his remarks. two irish american political leaders launched this four decades ago, president reagan and tip o neal. the luncheon helped them break political differences. for america, we know the stakes are high. a clash is brewing between the president and i. what would be the ramificatio
that didn t work. it wasn t just bear stearns, it was the bond insurers and fannie and freddie. her point is sheila s point is very much on point in this sense. in the 30 years before the financial crisis, there was multiple bailouts. multiple u.s. government involved in various missions to save the financial system, whether it was the saving of the long-term capital hedge fund, if that blew up, all of wall street would go with it. the mexico peso crisis. you can go back on all of this stuff. it created moral hazard. people thought the fed and the treasury and the government was going to come in and save them. they took more risk because they had the backstop. neil: this is a bigger
right now? well, i like the bear stearns moments. it s a line that i ve been using. if you covered 2008 and i was there i was a reporter covering it. i was literally on day by day, minute by minute trying to figure out who is next and how they were going to bail out the system. you saw after they bailed out bear around that was a bailout, a an assists sale to j.p. morgan, although they wouldn t say that was makeup assisted. they got stuck with bear s liabilities. we should go back further. go back before bear was the bond insurers. they worked out some plan to shore them up. they held some of the same assets on their balance sheet. when that department work, bear started to fold. when that didn t work, they made a bailout of bear and that department work. you had fannie and freddie where they took over.
market. i think you ll see the unpopularity of the law increase and might have something like what you had in the late 1980 s with catastrophic coverage in medicare where they passed it and it was rolled back a year later. paul: we ll be watching. when we come back, stockton california is an unprecedented move. bond insurers are the ones who can be picking up the tab. t as made for people with diabetes. that s why there s glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. and they have six grams of sugars. with fifteen grams of protein to help manage hunger. look who s getting smart about her weight. [ male announcer ] glucerna hunger smart. ..
liabilities and bad management. it was a perfect storm there. crime is a problem, you mentioned the high jobless rate. city officials claim they have cut budgets and services to the bone. but a long list of creditors and here you see some of them, including bond insurers argue the city did not negotiate in good faith and could have done more like raise taxes to avoid chapter 9. in the judge grants bankruptcy there will be more negotiations to workout a debt repayment plan, a lot of people won t get nearly the amount they were promised. we could see this case end up apartment the u.s. supreme court. bill: wow, starting in stockton what a day and when a time. live in san francisco. we ve seen it, detroit was threatened obviously and the governor came in and appointed a special individual to short out their mess. martha: perhaps you need to force it into bankruptcy to sort of redo some of these deals in terms that they can actually meet because so many states and cities are completely und