Classic TYT Interview With Dean Baker 5-7-09
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Classic TYT Interview With Dean Baker 5-7-09

call for a flutter of blood in the lives
of all the bubble economy debaters once again to talk about the bailouts in the banks
deny what about realtors instruments we really appreciate you
coming up the obscene you all over the news now talking about these issues hand uh… first question i have seen
the news is is servant like add to the bankers run the place up in
congress look really good for you know i mean
it’s remarkable that even after they’ve re so much have recommended go to really
responsible more than anyone else who is the private sector greenspan takes
credit for some for most of the private sector the bankers are responsible for
bringing on the thereafter do you think they began running for
cover band that they’re still lobbying congress to make prevented the
bankruptcy reform that would well i think we should registry right mortgage
contract just like any other contract into
bankruptcy they’re still getting that way you know i’ve been quite a bailiff under
their control so i could get a points slide it quits although the deliver sensible reserves a credit card advil is heading anything that’s going to pass or are
there things going on that issue well this is a warning to the airport had
through but i think something more pair but the question is how restricted will
be when it takes effect could this talk about putting it off for a year to
support the prep for the day but won’t actually come into effect
people two thousand eleven which we’d love opportunity for to be changed to
that take our mother fall two thousand and
maybe that after the election to get all the people said well if
you’re part of the fact that will be two owners so are the submitted pale for serious bill that it takes effect sue mean others who takes a little time
retire but if they have to be killed and it does put church restrictions on
interest rates another other penalties this is saying this is something of that
was a though quite passionate and sort of frahm well you’ve got a question about
bankruptcy reported become what so i don’t recall saying anything before the
vote congressman federal corporate anything that was defeated so warm i glare for discussion on the
local pc said he didn’t come out and chairman of
the computer for yahoo this is a greater less of withdrew yeah i just and a follow up on that date item i don’t know how they have this was power this is
just the very simple act of at giving off all this money in
contributions because alley here they are they’re
strong-arming down the simon johnson we assumed by a math wrote it looks like
a kind of all of our key that you would see in russia or some other developing
countries stairs so strong or bomb it even back down and basically the hotshot on in on on the previous bill owned all these democratic senators who
were don’t support this legislation legislation i think the monies with them the the campaign contributions are
important recruiter purple story didn’t really manage to dominate thoughts you have you have a very
respected people uh… i’ll mention larry summers very good economist of
you’ve got a lot of valuable in the papers are bred by him wildly selfish saying the stuff like
that but we have no choice and there’s a lot of people i know who don’t
particularly like tanks but they’re convinced we have no choice because
they’ve heard some of my query summers or someone
else’s no-good economist smart person and required to give that that that
creates and charlie that’s reflected in the media so you get remarkable thing for me larry summers so the the weekend he was when we had b flak over the edge he bonuses he did he
give a speech is fine but we have perspective tentative contract with a
great time the obama administrations are working to stand defeat contract that have been
filed with the auto workers years ago ticket retiree health benefits be
violated so how do you reconcile that but because
you have respected people saying that he gets a lot of credence in
the media who actually differ to these people and their friends with them so if you go a lot of it hit the campaign
contributions but goes well beyond that i purchased a campaign contributions and
with the media talking about it however once been ripped off that won’t do it guy sort of thing fifteen in this case
especially i think in general the idea of campaign contributions is somewhat
overrated because i i think i don’t disagree i guess that’s why i’m so
perplexes if it’s not this is what how was it a run the place so good effectively it would be they should have zero
credibility with the money i mean it’s not all the money and that literally
were t_-forty followed to the bank before you call it everywhere you know
that barring the to well for example to give a lot mind reporting from the uh…
ramping robert rubin set up ah… institute there that uh… put a lot all
prepared for some of the papers but the point of history this is something very important for
wall street perspective competing person that better and better make billions of
dollars of wall street he set up there’s executed to give the
peter peter institute for international economics which produced some good work
many of the peter peterson foundation of basically set up to cut social security
medicare the campaign contributions are big but
it goes well beyond that a quick at the campaign contribution that people would
be stopped as you know that’s really interesting because that’s what they’re
doing the services as well in their own areas and arenas as fears thereby ideas they’re buying the site gas and that’s an amazing ability i mean it i wouldn’t have thought that that money
could do that but i think it has in this case because it’s not just that these
people are getting campaign countries whatever and that is never going to see
if they had written the he’s never to run for office decency the most captive to these ideas
it’s almost as if they bought his brain uh… i think it will be our guest wrote
again and that he could wrote about it but i think he very much a dem for us
with this wall street viewpoint and i don’t think i remember competitors from
a political personal experience but you know many people do not i don’t think you can pick them single thing that would in any way
improper buddy totally associates with this wall
quick wall street prospective new york times of the great piece on this if it
was last week left monday and it was talking about how you’ve
broken half-wits the caps patterns of church minister
charges that the fed of new york bennett new york the reserve bank and in the past and always been the
practice for the chairman of the presentation sympathetic to take a proper separate them when they get of meeting with one of the major pain can’t make it a convicted
adjusted eliminate any appearance of the impropriety diaper departed from there and you were
just going to have one should meet with them to have dinner with no one else whippet now i don’t think you could have
produced crompton it was quite the opposite of heat doing it to be corrupt
would have been hard to find someone to bring the longest prom to keep the
russia i think you decide how to nothing wrong with it yes it’s a mentality in that case is so
many more damning things of that guy just let’s get to that issue regina
debaters offer plunder a blunder the rise and fall the bubble economy is also
the co-director for the center for economic and policy
research in washington d_c_ so how about the bailouts we and have this issue falling more and more money into these banks i’ll wind it seems that uh… allow the
top economist the country say nationalize them that seems to be
indictments mind in this summer’s mine impossibility that even considering it that does that by definition lead them
down the wrong path ivan cell anemia did to my mind the
payout period that you you take them over her week we do with them when we
did with the indeed map would go with a number of pale pink for two more that
killed over the weekend obviously citibank bank of america used a much bigger
either of these are orders of magnitude bigger than what we’ve dealt with but the idea that somehow it’s
impossible to do it and that’s what they’ve been trying to say it’s it’s
going to be difficult to get to prepare for you would do it that you would do
without a way of the point is to set up a process so that your in a position to
do that and if you don’t do that they’ll turn it into yes you can’t keep throwing
money at them the withdrawal that awful lot so far sts
are distressed asset joke well there it would threaten to return
had to be stripped of his post in favor of take uh… a bad from the area i mean
it’s not because we have certainly have a three fifty percent on ployment
everyone can go on but you take like what’s the worst scenario and the kept or anything but
that the the i was really compete today actually that the function they actually
relatively optimistic under symington point three percent
unemployment i’d spectrum and uh… well above that i
expect i’d be very dont be happy but i think it was rampant
but given the way things are going to put eke out they’re going to be very
optimistic story right now on the decline house presidential
midland fourteen percent approach to crime to prevent a month
alarm i think that relatively optimistic story and even with that we put we’re
hearing early san diego for the proposal from thursday
but both uh… citibank bank of america
capability suitable month of additional capital even approve already given
billions of dollars there was also one of the stressors i mean i think they
need more capital has led to give it some of my thoughts when we first
started out before the stress s was well all right if they don’t pass a
stress us then we would have to think about things like nationalizing them
because they’re basically insolvent well win who don’t know what you’re
looking at one of the problem but he is the first wishbone
ordinary proposals you didn’t get the clear statement that i could have been
approached what happens if you don’t pat three distressed paul krugman stroking
about the drug for health there was something acquiring capacity
called the love the selfesteem with killer point captive if it’s not clear and presumably you
would think if they don’t have the capital they need them nationalization type process but that never been explicitly that i don’t know i don’t think anyone
noticed a park building administration what happens for those paying that that so there’s no quick follow up on
that chance that they’ve been waiting for to
surprise us they come out on thursday to go ahead
and allied citibank bank of america and nine others basis or seven others
impasse a stress test we’re taking a minute i have heard who think that this rolled
setup this is that they’re going through the motions doing a piece by p and the argument being that they have to
show there is no alternative and that way weakened political position i’d be happy to be surprise that working
um… i don’t think felt but uh… you know will find out that enough suppose
thirteen days bugles slimmer and rivals bubble com is available you know that’s
the day after the thirty th of ben bernanke he spoke about house he expects
the e the recession too the image of you know in two thousand
nine to to begin to wave at the end of two thousand nine which i guess is a
piece of optimistic news for the fed the market didn’t respond is that for the same way it was bad even
today went down the fifteen or twenty points aren’t what uh… what do you make of what
vernon bernanke he sang in the linden the way to the fact that we’ve been
hearing about the deeper recessions corporate the corporate thought it would
have a look at the market for the reactor of anything other than ramos psychology in the market growth
markets go down and have to come to talk at all to do with the economy someone put too much i’d still have the kind of
the countries that the custom to when effort he chairman of the third weather
was greenspan and the certainly much more exaggerated way or brenneke to sort
of look to see what the markets do in the
wake of what either of those two men sir suburb employ right can prepare practice
directly out of it now is proto depended if you want to grounds for optimism now
just because a recession cycle last forever we’re not going to end up with thirty percent of appointment to meet at it some point economy will stable life but the trench right now are very
strongly negative and a lot of the green shoot the people talking about a month
ago trimmed the log kentucky largely illusory we’re going to get jobs report on friday
lp shocked really if we don’t blues at
least six hundred thousand jobs in the month
of april employment thomas transitive nine
percent if i can job agreed even even advocate
camaro he’s talking about a moment ago demerit you don’t go from losing six
seminar about jobs in april to lose in zero and many so even in a barricade scenario wouldn’t he’s the rate of job loss begins to
decline so maybe we won’t lose four hundred thousand river broken into and maybe by the always sell food and drug naturally but the
best way to talk about but that doesn’t mean that the losses the when you hear that were appointed
his remember the first quarter of for gloucester of one point four billion the hundred and but one point four
billion dollars and that was great news better than expected and now if we lose
forty thousand jobs alleged really good news the situations it’s hard to to
countenance those numbers and humanity but i guess that’s slow to restore order downturn and and
again one of the printed uh… economist will re-open focussed on
growth and bridge chords for that but most people were thinking person for
most of the labor market where the job prospects for the secure in their job
did they get a raise to make a new job if they lose their job kids get job when
i get out bull stands there’s no story we can tell you with ip going to get better any time for late next that’s really the best for me to tell
you now i go to another branch of the whole
bailout economies and societies nasa plants is there livid at the numbers behind at
the start anyway today american taxpayer doesn’t
get screwed uh… or means they do this for a but it still works is is that a
possibility well this is where the natural reaction
issue comes in because if you have some sort of takeover type process i
probably should use the nationalization receivership update computers profit then we could wipe out the shareholders wiped out early force barb overstated
becareful victim takes a while since we saw that
aren’t insured deposits we have some of the songs that are insured we have to make good on the government commitment to local legally obligated
commit but we could force this shareholders to barb over to bear
much of that cost so i don’t see a smear which we get away
with pain zero but hopefully we we won’t go to we won’t have to pay trillion
there are certain scenarios you could talk about where you are talking about
trying dollars that’s real money even watch so if you go to class is asset plan
encircling the town and it was a panacea mister well clearly the poor eating the effort
to force somehow subsidizing their purchase or barring them outright and a
different formulations out into the water from the people know what the
people basically would help purchase that that the clock attack there’s no doubt about it and deaths distinct gone back to their
source licenses anyways if you think works well if you have generous enough
subsidies and in particular then you could get the propaganda both know what
i worry welcome pinpointed they may not be quite generous enough to
the banks and hotels those price alternatively um… you could get a situation where they do uh… they do self mostly
efforts but they’re getting more efforts by the day to come under attack gap of timberline issue here bet mortgages mortgages under for every single day and
on top of that u_n_d_p_ non-residential sector which
can be huge blow those of the falcons well even at work we remark a lot of bad
loans off the bench book you’re going to get more over the course
of this year so even whatever we might do berwick we have now may prove to be
inadequate and uh… i you know also dean dean
baker i wanted to talk to you as we cover all these faces with the economy
about the auto industry and about what happened with chrysler and i am i want
to ask once reported in and blunt question have enough very much
to do with economy but then also to see some what your concern about how the
news this week chrysler fiat and that person chrysler’s will affected
broadway but would you buy an american car now would you buy a chrysler right
now as the president has admonished us today it quickly there well i think it over
four years ago there were order prayed their partner for quite a really good
pretty good i refer to it for you didn’t know whether that say arms you know that there were really was a
qualitative difference between the japanese that would end up buying it what we saw in the u_s_ made cars of i
think they got real quality gap to make up the whole please this plan will do it apart the story is
the vietnamese technology from yet which is uh… does have a good reputation they could make up their character their
political intrinsic to carping made in the u_s_ visitors who come from a u_s_
somebody u_a_w_ workers to collect when the union’s toyotas at the point to california was u_a_w_
workers is been producing cars from for more than
twenty years now so there’s no issue both between cartoon
u_s_ military but produce u_a_w_ workers returned simply they haven’t had what
was on product did quite well bob on that now conservatives are perry
on the screen in a while most pressuring the hedge fund guys to figure a scene of
the loss on their investment chrysler act but that he’s paying out u_a_w_ and that he is you know i’ve done some
implicit and perhaps explosive threats against season investors and that this
is heavy-handed and i separable what’s your take on that but would it be really quickly investors
it wouldn’t hurt people who bought the barn years ago and articulate these were people brought up the bond at
thirty cents on the dollar and if it were smart cards we could push them to
be part of the obama administration around when get forty cents on the
dollar were tough guy and obama but not we got it will not be
pretty pumped about your but valid frampton deal with the auto workers the
people that were thirty years for the health benefits and that the government said no you can
give that up do not have the benefit that you work
for from its before tired five years ago ten years ago they didn’t have to get
lower health care benefits they are not walking out like bandits
they’re not happy admitted their capital of the job to pay better than a fifth of
the work of seven-eleven but they’re making real confession for
the idea that somehow that the auto workers got a freebie that their life
with a bomb obama’s trying to help them but he’s really made them take serious couple of them are losing their
jobs so they’re probably getting off skyscraper hand winds fanned wage
concessions absolutely but they’ve given up an awful lot of the
story for the idea that he’s handing them everything on a topic whether the
dead if you want to prevent the required goldman that pickup open nine billion of
our dollars per as far as i could tell no good reason
whatsoever three eighty that’s absolutely true define a question
for your time debater co-director of the senate iraq economic policy research in
washington’s and all sorts wondering blunder you are you concerned still at this
point that event of all this the bail out the stimulus the p paired etcetera that the geiger and summers plan
basically does not work because they went down the wrong direction they
didn’t push the banks into receivership and then the economy turns a little more
south and then all bob listen a lot of trouble economy is in trouble and he’s run out
of money is that is adequate real concern well
i’m more worried about you know moral political capital were not near the end
of the road money we have a long long way to go on me that he could pick up
the it really is truer than we could them up to my reason
await money but we could put a lot but the bigger issue with that if you’ve identified with the bank you know right now no one blamed him for
the counter they know we walked in absolute disaster but if they keep him
saying my program starting the work and then three month old form of
apartment opting for worse than ever they need to go back to congress in here
for more stimulus in the republican party on screamed he might not be able to get it and that story we could be looking at the real
organic heidi baker has booked this plunder
blunder michael’s got one last question and give us one piece of good news send us away smiling of the i think people who could work in that
will make a bigger completely part of the unemployment benefits her personal bomb right now is covering
sixty five percent of people top insurance which means a lot of people
who do job still health insurance which may be make a huge difference to them in
their family still live there you go all rosy forecast from t_v_ episcopal school blunder plunder and blunder

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