Join our live conversation for the next half hour by using the hcht aj real money. Lehman brothers one of the oldest investment banks in the country. Im not sure how many of you had given much thought to Lehman Brothers before that day. Even the brightest economic minds in the country doubted its failure would turn what was at the time the are ordinary recession into the great recession. Banks wouldnt lend to other banks let alone to companies or individuals. The global flow of credit came to a virtual standstill, that meant laying people off. Folks who lost jobs couldnt make their mortgage payments, the pain spread beyond americas shores, triggering a near global collapse, people lost their homes their savings and their incomes. Things are getting better, millions are still unemployed but stocks have come back for those who had the stomach to stay invested. And to make sure this never happens again, we have to make sure we never forget how bad it got. Five years ago this month, america and the world marched to the edge of the economic abyss. On september 7th, 2008, warning sirens sounded when the government took over fannie mae and freddie mac. Mortgage titans were facing big bets on the housing crisis. One week later september 14th Lehman Brothers collapsed triggering a global freeze on credit followed by a government takeover of aig. Literally overnight the recession became a global crisis. This is what brought us to the brink of collapse. Wow, all because annie went and got a house she couldnt afford . Are congress had to act, bail out the banks that led to the collapse with their risky behavior. But on monday, september 29th the carefully crafted bill to rescue the system went down to defeat. The motion is not adopted. Investors been into full blown panic. The dow dropped 777 points, the biggest single day point drop it had ever had. 1. 2 trillion in value wiped out in a single day. We have much work to do and this is much too important to simply let fail. Congress got the message and on friday, october 3rd, they finally passed the 700 billion troubled Asset Relief Program or tarp. The motion is adopted. Five years later is america better off than it was then . Yes. Because it was that bad. But could it happen again . Today on twitter and facebook we have been asking you five years after the financial crisis began, where do you feel your money is the safest . Restaurant owner ora says credit union staying away from the big banks and mary says tend to agree with economist jeff rubin. Cash. We had jeff on the show on monday. Five years ago sheila berh was head of the fdic, the Agency Charged with protecting the americans when banks collapsed. More than 400 banks failed across the country as a direct result of the financial crisis. She wrote a book, bull by the horns, her book is back in paper back, sheila bair joins us this week, sheila, five years on what happened then could it happen again today . Yes it could. The system is safer now prior to the crisis as you point out its not setting a really High Standard but we have a little capital in the banks, a little more stable funding, but it is not nearly as resill yenlt as we need resilient as we need. The person that responded to me on twitter said im keeping my money in the Credit Unions not the banks. We should remind people no person who had money deposited in the bank lost money. Thats right, fdic and Similar Program for Credit Unions. Very strong track records. Nobody has lost a penny of insured deposits. Its a sad commentary people have to be fearful, businesses too. There is still a lot of uncertainty about the resiliency of the system, the future of our system. People dont commit capital, dont take out loans, dont take risks because theyre not sure whats going to happen next. We have trouble with risks and capitol but the rest of the Banking Industry is getting better, you see home sales surging, because can you get loans, you see car sales surging because you can get loans. Other than banks which need fixing is the system working properly, the system of barning and exchange working properly . Right, its work better. Is it working as it should . No i dont think so. I think we made a mistake in 2009 without doing some fundamental restructuring and downsizing with some of these very large failing Financial Institutions so i think we still have somewhat of a bloated sector, still a lot of speculation i think in securities and Derivatives Trading not enough traditional lending. Were seeing a bit of an uptick on that, but again ttys smaller banks, not much the larger Financial Institutions. So its working better, theres less leverage, still too much leverage but less of it in the leadup to the 2008 crisis. Still regulatory, instead of traditional lending one of the things weve ebeen trying to get fixed with stronger improved capital. Its part of the reason why people like that woman who tweeted me talk about Credit Unions, they associate Credit Unions with traditional banking and all sort of things we dont understand. Exactly sure. I want to ask you about the federal be reserve. Were going ohave a new chair, and the leading candidates seem to be Larry Summers and janet yell in. Youve spoken out in terms of the concept of janet yellin becoming the chairman. Shes been the vice chair of the fed for several years for monetary policy. Before that she was the head of the San Francisco regional fed, managing a large staff of examiners. Shes got a solid track record on both. She was one of the earlier people at the fed to call out there were going to be problems in the mortgage market. A lot of people didnt listen to her the way they should. But shes got a great reputation shes a brilliant economist long experience with Financial Markets long experience at the fed and as a vice chairman she has been the heir apparent. A lot of people assumed she would get it. If she doesnt get it i would like to know why. Shes supremely qualified. Ali, we have heard, we need someone who wall street respects. Shes just a good quality person that i think people would have confidence in. Lets talk a minute about regulators, it is one area that we have such disagreement on in this country. There is a group of people who think regulation is the problem in this country. In fact we just saw this World Economic forum report out yesterday where american businesses say government and its regulations stand in the way of prosperity. There are others who think we are not regulated properly or enough. You were a very, very effective regulator, part of that was you and part of that was that you worked in a system where you could go in when a bank was failing and do something about it. What do you think needs to be fixed in terms of regulation. Sorry im losing i have an errant ear peace here. We have some bad regulations contributed to this crisis. We had a regulation that was promulgated in the middle 1980 p 1980s and guess what they ran like banks during the 2008 crisis. We had bad regulations on capital. We had bad regulations that told large banks they could set their own capital requirements. We need to get rid of those. Sometimes the Regulatory Reform you need, is getting rid of bad regulations and for simpler more specific regulations. So much of the regulatory activity is so much busy work, complicated rules, lots of reporting and paperwork and what do they really accomplish . Really its incremental its at the margins, so having more decisive simpler regulations is exactly what we need in the Financial Sector and were not always getting it. Ant regulators with teeth. Sheila good to see you. Good to see you. History would treat you well, and shes the author of the book you must read, bull by the horns, just out in paper back. Sheila, thank you. Thank you. By by now and the next commercial break, americans will turn 65, but america s,. You know you have to have somebody else. On friday, well find out how many jobs were created in the u. S. In august. Economists are expecting 180,000 and for the Unemployment Rate to remain steady at 7. 4 . Now one industry gained jobs throughout the entire financial crisis, because of americas aging baby boomers. Health care. But some of the biggest gains werent at the high end. They were in the home and personal health care jobs. Unlike other high demand areas like accounting or engineering, wages for home aids havent kept pace with demand. As our resident expert david arioso found out, the job isnt enough to pay the bills. Around 6 00 a. M. Most mornings laurie blake grabs a cup of coffee and heads to work. She earns 10. 50 as a home health aide. I like it. By the time she gets to her clientele theres a list of things odo. Straighten up, do dishes, things wash, if he needs me to go anywhere i get out to make him be more independent. Home health care is surging. The industry is expected to expand by nearly 70 between 2010 and 2020 adding 1. 3 million new jobs. Accompanying this job is question of background checks an low pay. Its not great. You cant live off of that for income, you know you have to have something else. With a Median Income of 20,000 a year, half rely on government assistance to help. But for those like clinton, people like laurie are invaluable. A normal person would take like 15 minutes to get dressed. Take me like almost triple, 45 minutes to fully get dressed and be out the door. With my attendant thats cut down. So clinton relies on laurie for the basics. If i had to do that all by myself, i wouldnt be able to sustained any of attend any of my doctors appointment or go to the eagles, she makes my life easier. And more people are expected to turn to home aides as the socalled silver tsunami heads ashore. Its that demographic wave into ages, that help is needed, that is driving this future increased demand for Home Health Care aides. A baby boomer turns 65 every 60 seconds according to the business bureau. A lot of them can expect to become very frail, they can expect to need help. Might be nothing. Could be just indigestion. At Home Health Services in philadelphia a cadre are in training. We have numerous coming in hiker between 20 and 25 per week. That includes backup and part timer. The majority are aides with very little turnover. If the industry is a steady source of employment growth even in a very deep recession like the one we saw in 2008 and 2009, that is a very powerful bit of evidence about the strength of the underlying demand for workers in this field. Theres a lot of people doing it. There is a lot of people doing this job. But its needed. But a 1974 law also allows some workers to be classified similar to babysitters which exempts them from minimum wage and unemployment laws. That means the government is allowed to pay these workers less than minimum wage with no overtime. Thats right. You can wake up at 5 00 in the morning care for somebody every minute of the day take the late bus home at night and still make less than the minimum wage. That was two years ago and despite a pledge to close the loophole the department of labor says its still working on it. About half the states require home care aides to be licensed or certified, but last year Northwestern University provided a report that noted, quote, they might have a false sense of security. She used to walk around with a plunger stick and if they medicationed with her she would hit you with it until i came along and started helping with with helping her. She was very funny. Several states restricting the size and scope of their aid programs some workers are concerned about their clients future. They depend on us. They really do. They say i dont know what id do without you. What would i do, i have no family. Some of them have no family, none, no kids, nobody to take care of them at all. David arioso al jazeera philadelphia. Key players in the industry say it could increase costs and make home care less affordable for elderly folks who want to stay in their homes. All right emerging economies have been struggling for months, so freaking what . Ill tell you what. Some american businesses have been relying on those markets to fuel their expansion right here in america. So a slow down overseas affects Job Opportunities here. Thats why you need to stick around. Nd judge president obama and the leaders of the g20 are gathered in st. Petersburg theoretically talking about economics. If you think that leaders talking sounds boring youre right. But buried in their deliberations are some things that are important to you. So please dont change the channel yet. A number of countries are worried about rising interest rates. Some of the bricks, brazil, south africa, if you can get more in a stable economy like the United States . The reason you should care about this is when other countries currencies drop products made in those countries drop in price and thats a direct threat to u. S. Companies that sell goods overseas. Latest figures showed that u. S. Exports declined by 1. 1 billion in july is a sign that u. S. Companies are starting to feel the pain. According to the Small Business administration, 90 of all exporters are Small Businesses. That includes jason spear, hes the president of quality float works. The Company Makes stuff thats hard for me to explain so im going olet him do that but i do know it has something to do with equipment used in oil gas plumbing and agriculture industries, it products are shipped to two of the bricks, india and russia. Jason, good to see you, please do a better job of explaining to my viewers what you do. Youve got something in your hand that looks like a part that you might finder in your toilet but its not the same thing. Its similar for similar but more industrial. It just levels the water or liquid and shuts it on and off when its flowing. Simple float and valve. Why are you successful at making these things and not just selling them in america but how do you sell them in india, wage rates are lower, in russia they have a manufacturing sector. How is it you do business in those countries . You know weve been around for 98 years. Were very wellknown in our marketplace. Were specialized, we have a wide variety of tooling. We can go into a market and offer different sizes and specs to meet the customers needs. We have had huge success in just about every market weve entered. Compare your growth in the American Market to your growth overseas, how has that grown for you . You know what, i would not be standing here today if it wasnt for exporting. Our sales in the last ten years for exporting have gone from 3 to probably this year it will be over 35 . And during that time youve seen these other countries like russia and india and these emerging markets grow at a rate much faster than the United States. Does the idea that their growth is slowing a little bit and their currencies are dropping related to the dollar, does that worry you at all . Absolutely. I was actually just in india, in june, and we were looking at doing some business and already there, we were becoming harder and harder to compete. And since ive been there the rupee has increased dramatically against the u. S. Dollar and its basically wiped out any chance of us entering that marketplace. Tell me about doing business in those countries, for those who are watching that are manufacturers, some are easier to deal with irrespective of currency just because of the way you deal with them. 97 of our customers are outside the United States. All these economies are growing. They want good products, they want something made in the United States that is quality and that can last. I can offer them something a little bit more than something made in china but it will last five years, ten years. Weve had customers come back to us for 50 years and thats how we offer them. At the same time youre seeing Slower Growth in place is like india or russia they still have Huge Energy Consumption and thats big for you, huge Energy Production in the United States. So the market for your product is still pretty good regardless what happens in various markets . Exactly. Were very fortunate that being a large part of our product used in the oil and gas sector that both domestically and abroad weve seen a spike in those projects. Jason, good luck for your company and thank you for being here. Thank you for having me. Dont forget our question of the day. Five years after the financial crisis began where do you feel your money is the safest . Tweet me ali velshi or leave a comment on our facebook page. My final thoughts go back five years to the beginning of the financial crisis. Times feel a lot better today than they did back then. Jobs have been created every month for the last three years. Stocks are more than double what they were at their lows in 2009 and home prices are rebounding. But millions of people remain unemployed. Millions of people are struggling to hold onto their homes. Millions of people are trying to rebuild their savings because of nothing they did wrong. While were thankful for the economy we have and do you believe that the events of 2008 are likely to repeat themselves, im thinking of people who were robbed of their futures by greedy charlatans. For now the clouds on the economic horizon seem to be gone. But lets not forget how terrible it was five years ago. Thats our show for today. On friday ill tell what you the big deal for august job numbers is and how it can affect your monthly budget. Thanks for joining us. Im ali velshi and well see you then on real money. Obama expands its list of potential targets at syria at the g20 summit. Hello and welcome. Im with the wo