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Economic Policy Institute’s Christian Dorsey debates Melissa over whether Senator-Elect Elizabeth Warren should sit on the Senate Banking Committee.
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And newly elected senator and former head of the Consumer Financial Protection Bureau Elizabeth -- who's running that I mentioned she was -- -- that she's public enemy number one either.
Either way on Wall Street but according to rumors she -- end up with a pretty posh assignment on the senate banking committee.
But do you really want someone who's been so outspoken against the banking industry making the rules for them.
I don't know depends if -- one -- mortgage again I think it's a horrible plan but here to disagree with his fishing story -- director of the Economic Policy Institute.
Christian you know I can't first shot at this one because I have some strong feelings about having your outlook how much and getting your -- what do you think.
Well you know I think you'd be hard pressed to find someone -- brings more.
Experience not only historical but a recent experience -- time is the head of the congressional oversight panel.
On the TARP bailout someone who has more current practical experience in the banking industry to actually serve in the senate.
Banking committee you're you're gonna find someone you're not -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Melissa she she was in charge of investigating.
The congressional.
Congressional TARP program she knows the banking industry inside and out she knows how they operate she knows the systemic problems more than really any other singular person and you could think -- who's not actually be worker for the -- I don't -- quarter -- quite well.
I I don't think that's -- I think she is.
I think she's a zealot.
And -- her opinion of what's wrong with the banking system is terrified hear her own words.
She says he's credit products have been designed to trick people they don't expect to be carrying around a loaded weapon in their pockets.
That -- fire and shoot them at any point -- don't think of my credit card.
As a bazooka in my pocket that can blow me up at any moment I mean these are credit products.
That people willingly take in use so that they're able to finance purchasing things that they can't afford to buy with cash.
As -- -- you know putting it to weapon you don't think she's a little extreme.
You know for you you and me Melissa who have good credit and who use these things responsibly there they're certainly not weapons but you have to acknowledge that there are great many credit products out there that are designed.
To -- people win and then change terms on them to make the credit.
Holy unaffordable and put people in a very difficult place and that's what she's referring to.
Christian that doesn't make any sense because in the credit card explodes to a level where somebody can't pay it back.
That's not good for the bank of the credit company didn't get their money back -- -- all the fees they want the people to poke fun -- and they never penny.
Didn't wanna tricked and trapped people because they don't -- painless and our financial and they -- and it.
-- -- -- Big campaign right nobody right at all they write off -- they get exorbitant fees in the process now Melissa the concept of -- and I went wrong and aliens you right.
It -- it is in fact I think the term predatory lending is like Jumbo shrimp.
You're tricking people -- -- taking money from you.
Taking -- -- from you you're lending them money to go by house predatory lending.
I mean it's an oxymoron.
You're gonna gotten -- -- people into taking cash.
-- I don't that this team.
Thought you you will if you if that if the money -- -- make on the fees more than offsets on what -- what -- up paying out particularly if you're securitized in that mortgage for example and making it someone else's problem as to whether or not they core they collect that was clearly a problem in the 2008 financial crisis and she's speaking truth to power about those practices and that's why the industry fiercer.
Here here's an I -- -- interest of ours but -- it let me let me give you another quote she says if this -- -- -- murder of financial protection bureau had been in place a decade ago.
The sub prime mortgages that were sold that they lives across the country would have never been marketed here's my fear.
If you don't know the reason -- sub prime mortgages exist is for people who have you know fairly poor credit who are risk.
So the bank is taking gamble on them and obviously they're charging them higher rate because there -- big risk.
It those products don't exist then there's a whole bunch of people can't buy houses are you okay with that you think that make sense.
I think it makes sense to the degree -- of looking at the sub prime mortgage market that was designed.
To give people who were not credit -- with low low or no documentation.
All loans that would become unaffordable.
In the period of a year or two of people got those mortgages with the expectation that their houses would continue to increase in value and when that all collapse you're talking about a huge financial instrument.
That is now problematic for the whole economy.
That needs to be regulated.
Very firmly if we're not good old -- the incredible meltdown that we saw on housing for example.
Yeah I don't know I mean it's just an interesting question going forward do we -- -- cut off credit.
To a whole part of the market because their credit rating is lower -- and it costs too much a little no it's it's it's go ahead of the I don't I'm glad you're not sort.
Yeah I don't think we're saying that it's it's a matter of making sure that credit is -- responsibly in a way that's not only are responsible for the homeowner but also for the lending institution and that's what she's talking about Christian I love it when you disagree with me when you come back -- -- all right Melissa -- -- here is Mike.
