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All this I've used the expression revenge attack on the as some -- where do you stand on -- The ultimate revenge would be doing the one good part of Dodd-Frank and that is removing the government cartel creation of agencies like S&P.
Instead of having an SEC designation and having laws on the federal and state level saying you have to use these kinds of agencies.
Open up the market.
No more designation what the market decide whether -- some -- opinions are good or not but regulators are resisting this.
Remove the cartel that's the best revenge competition.
Do you have any comment on Warren Buffett's.
In the broadest context of that of that question because.
Warren Buffett's Berkshire Hathaway has a major stake in Moody's.
Which did not downgrade America's debt it kept a negative reading on -- for the long at some but He did not downgrade it.
And now we have President Obama hand in glove with Warren -- on the issue -- taxing the rich any comment from Steve Forbes on this.
Well we'll see -- the Justice Department.
And it's been examining Moody's and Fitch is because they all went on this vendor in terms of putting triple -- credits on mortgage sub prime mortgage backed securities.
So they had just a pick -- S&P.
You can that figure Chicago style bare knuckle politics for just no place in our politics certainly on the national level.
But again the best way to deal with rating agencies is simply -- -- that good provision of Dodd-Frank.
No more cartel know more legal sanctions.
You have to compete on your own on the quality of your work that's the best revenge.
-- point I want to show everybody the price of oil because it's taken another leg down a moment ago we were off fired almost five outlook for 55.
Down on of -- on a barrel of oil at 83 dollars pro barrel.
I see the NASDAQ down roughly 5%.
I see the Dow Industrials down almost 500 points the call back to the for the New York Stock Exchange the latest from that.
It's a record day on Wall Street -- you just see the selling and it really is accelerated.
Throughout this the last hour forty minutes is we got the Philly Fed numbers that -- you have a topic of traders -- they're passionate UBS.
Ten -- of sunrise securities both talking about a bank over in Europe.
That hit the emergency lending window because it couldn't get money from another private bank rates and that's not a good sign and and took 500 million dollars and this is according to -- to cash in and -- well it still had already shows some -- distressed bank looking for some help there.
In addition -- and -- was noting that.
Federal regulators are looking at some of the US arms of some of the foreign banks and their liquidity.
So this just doesn't bode well and the European jitters are hit -- and some of the -- segment even existing home sales about how terrible they weren't.
And how far off the F and it's -- do and they estimate.
I think the key point that you raised that -- -- -- -- -- gonna want to go to Chris on this.
In the banks always Batman so question I mean to the -- point about the news -- Yes so off yesterday it's not the Philly Fed to existing home sales and -- -- was way off.
Of what we thought it was going to be that was bad but the overnight in Europe.
-- you have the same situation here with a discount window had to be opened up back in 2000 needs of these banks to get short term lending because the short term.
A credit markets froze up thousands of fear was overnight you thought about our cash and when He was talking about -- -- bank.
Who supposedly went to the discount window as opposed to.
Going to another bank to get short term funding that -- worries about -- -- that you know the credit facilities here but being from bank to bank maybe there's certain to freeze up and.
Steve folds if you're still -- I think you off.
Does this remind you all of like September but 2008.
Shaken us in the banking system Wall Street wobbling it -- -- I -- There is a little bit of a whiff of a fear and panic in the air the good thing though.
It's unlike 2008 we don't have mark to market accounting which devastated bank capital that wasn't changed to march of 2009.
And one that was amended.
-- Set off a huge bull market for almost two years.
So we're we're not gratuitously destroying bank capital side think will be able to contain this but the bottom line is until the -- -- stabilized by the Fed.
We're gonna continue to have these panic attacks especially with the federal government determined to pursue policies that are wrong but I'll go against the grain on one thing Stewart.
Is in a panic market like this one don't sell.
You have a little extra cash around that you don't need in the next couple of years and this is a time ago when when people are fleeing America's gonna turn around.
Banc Rick Perry comes out and attacks the Fed people -- like the language used but He is right on.
About the Fed being a destructive agency we're gonna change things in 2012.
This is the time to get -- when everyone else's.
Wait for the -- common voice of Steve fold -- that senator really good get out there and if you got some cash you don't need for a couple of years there are bargains all over the place and you got to leave it.
Steve I would ask you when you say I mean I I figure you're saying stocks are on sale right now I would ask you if you would apply that to all stocks we're just looking at some of these big banks down 10% today.
Would you put your money it would you even touch those big financials.
I you would have to do -- a broad array of them because you don't know if one is going to would get a particular trouble.
But again in terms of that a lot of index averages around some that are not -- by capitalization say you work.
I'd get that better broader of the terms of indexing.
So there's some good instruments around start you as an -- and recognize you're gonna have a lot of volatility but these.
Prices are low when the reforms come in and a year and a half which they well.
Starting already -- -- and I'm I'm just shaking my head it because I'm sitting next of the deal which.
And he's listening to -- news saying about the banks and he's nodding his head is now.
And I might help lead to bad -- -- what what Obama you know in charge what you're hearing that Steve Forbes is a great defender of the free market and is not afraid to address the Fed to the way it should be addressed.
The way the governor of Texas addressed that earlier this week.
You know I think Stiefel is may have moved the market because since you -- I thought yeah.
Yeah -- got some of those bargains that you see everywhere since you've got the voice of reason all of a sudden Steve folds I see the market come back -- points of adapt congratulations mr.
Fuld you just book probably 2030 billion onto the value the American stock market thank you and and I don't get a penny of -- -- that.
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