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It is -- CEO of farming enterprises he's joining us from Tulsa.
A look at these markets an otherwise -- don't worry we're not as scrutinized the way you speak Swedish violations exactly what you're saying so.
I doesn't think that's important it is great that -- What they humankind be passionately authentic and and just like like act -- it's a pretty bizarre robbery yet.
-- -- -- -- Well you haven't talked much about the people up and -- sort of fountain and pushed to the back of the room here but bill.
You're creating a fun you're going to be investing in that the public private investment partnership here -- -- about buying toxic assets off banks' balance sheets just.
Reminder for our if our viewers who -- not been well versed -- -- that language.
But taught us a little bit about this why are you.
Interested first the ball in buying up these toxic assets why would you what it might have been obviously -- a long time horizon.
To which you think -- will obviously bring you profit.
Well Robert we participated with the FBI -- in the RTC during the last banking crisis back in the eighties in the ninetieth.
So we have some familiarity with this profit from how we really expect it's going to -- -- and we see quite frankly a wonderful opportunity for.
Average investors common ordinary citizens of from time preferred term.
To actually participate in this bailout.
So it isn't this one is different than the Wall Street bailouts -- are quite frankly they were geared to one clothe them for the defense.
This one -- that you've -- there's absolutely geared for.
Everyone of us until we see a tremendous opportunity where we can -- I think I thought that a very very low discount for volume and quite frankly take advantage of that as the economy heals of the next couple of year.
-- is the best thing about being involved in the RTC and the worst thing.
The best thing was just some great opportunities and quite frankly we've made a great sum of money the worst thing at any time you do business for the government.
You're doing business for the government talk about that exactly.
Well it and I think replied there's obvious -- example of how you can agree to one set of conditions come down all of sudden -- -- the conditions change.
And the government.
I'm like you know business.
Transaction for the two parties do transaction turn through.
Mean what they say and do it that if -- The government you know I don't think the thing about lawyers just a very pragmatic way the government has the right to change the -- they have -- right to change the deal.
And we're seeing not an -- creates a certain amount of nervousness.
Can't even the people have -- the treasury is going to be a fifty -- equity partner.
And so it from the deal to your strike on day one.
May not look like that on -- truth about -- inherent left.
So we think a falsified.
The upside but it is indeed -- risk failure.
Yet you're saying the rest of the rules of the game -- change which is something a lot of investors in financial stocks particularly right now and automotive stocks -- Having to deal with on a daily basis and and bondholders as well just -- the Chrysler bondholders about that.
Absolutely and that's one of the problems what's going on right now with the the way the bill -- being one.
You know whether you agree or disagree on -- the government ought to be involved I don't think we can disagree that the government ought to keep the work.
That if the markets depend on certainty and security.
Well right now we're creating uncertainty and insecurity.
By changing the deal.
Whenever the mood in the -- fear of legal opinion -- flowing one way or another.
And I think -- deal on the administration finally figuring them out and I think now we're gonna -- more certainty rather than less certain.
Bill if this is such a great deal why are -- hearing it's has a great deal from you and Wilbur Ross why aren't the market excited about is -- wants to know how we can -- how how -- it actually invest in the debate when you still a lot YY.
-- there's so few of you out they're speaking about is because the deal is so great that we want to keep it -- types.
Or maybe act never -- you.
If I think don't always figures million and that's why it will Bernhard both made a billion dollars.
You say hey I played -- we're -- quite frankly we're not looking for a popularity contest for anything and we're we're literally expressing that in my book that is passionate.
And tell you that we see a wonderful opportunity to make a great sum -- money now there are a lot of people who -- You know -- trepidation about dealing with a government that is why they don't even play the opportunity did you take.
Yes a billion guy.
Three and a half billion after pounding that you know I can we are great we want to -- How would an individual investor guy with you in this is that is there an opportunity for -- citizen investors as you call them.
They're doing is we're actually teaching people how they can do it for them -- that's part of what I'm doing now thrust of my life is short people.
How they can take advantage of opportunities like this.
Well yeah absolutely that's influential people on a regular events have a feel to -- three and a half billion dollars.
Better than losing three in Africa it -- -- -- to get it is.
Kathy and I my wife for 35 years we were bankrupt the 1986 we were literally broken I mean literally broke.
Million dollars in the hole and we participated in the first FBI feel auction in 1986.
And literally grew from there are -- -- Paul Pierce but we grew from bankruptcy to.
-- called with the 25 wealthiest people in America with a network of three and a half billion dollars all from.
This kind auction -- would call it.
So why am -- excited.
I think this movie before -- know -- -- and.
That's sounds like quite a movie everyone on the board just wants to know how they can learn more what they can -- and -- how do you respond to them.
That's certainly what I'm making up the shameless self promotion have a book coming out in gender male -- book.
Called -- of riches and that he is indeed one way that they can learn how they can participate now with.
A few few rules for normal little little reluctant to say give me a call -- offensive -- the fact I don't think that the appropriate.
But in theory -- folks such as yourself and and other funds will be participating.
You could pick up the phone and give them a call and may be yeah I don't know if overall since taking calls -- that maybe some other funds will be.
We we -- that we are taking those calls we aren't -- to watch people prosper.
Fair enough that sound good -- like a very clear message.
What it is.
You bids are still some -- in nineteen in the 1996.
When he for bankruptcy.
Yes and so let me go through that's not crisis that's -- journey or what what do you make -- was going on his right now.
-- stage rat I'm sure a lot of people want to know what your perspective is on.
I'm basically the life in the market.
Well I I.
Come from a unique perspective covering -- young rich and poor and rich and -- and broken rich a couple of times and and having gone from bankruptcy to -- -- In just kind of an economic crisis I am and probably more optimistic than most people are good because I think that number one the economy is going to heal.
Number two we will get back on her feet number three know that this thing will -- now will we fought for during -- term of course -- well.
But you know all of us who have a little bit of -- honestly we've been through this cycle before -- or not.
You know him in the from the throw the desperation we instead.
Are looking -- with optimism thing how do we make the best of a very bad situation and and I've been unemployed have drawn unemployment -- -- on welfare and I've beaten.
And you know.
You know -- call adopt a dumpster flock -- -- a better parent I understand and -- empathize what's going on in America right now with Paul and half million people unemployed.
But the good news -- -- each and every one of us in this great country we can do something about the place we find herself.
So bill to that end tar -- Tom months -- in a note saying -- -- where did you get the capital 86 to make that investment if you were bankrupt.
How would you go about -- I borrowed thirteen thousand dollars.
To -- my very first box of what they were calling back loans they can use the word toxic assets most of it is just bad -- I borrowed thirteen thousand dollars bought one -- from long.
Made enough money on it to re -- to -- -- -- box.
And a third and -- -- and eventually over twelve years so this was not an overnight success it took twelve years to go from bankruptcy to billion.
With the best thing about being race.
There's so many many things about it if anything more I get since there's really hard -- It could clearly -- without getting so be that the nice thing about it is -- -- that you and your family your loved ones.
Really care and be treated in a way that you as a male oriented society as we would like very much to be able to -- a lot more.
Take anywhere this CEO of commercial financial services there was the largest most efficient consumer debt collection operations one of them anyway -- the world.
So looking ahead the credit card debt that is out there the auto loans.
Are you expecting this to be the next shoe to drop here as we look at their credit -- Indeed Robert and that's that's when I -- different than what will receive full birth -- securities -- is looking at commercial real paper and residential real -- and even some of the securities backing those those pieces of dirt.
I'm a consumer loans -- -- -- right now 230 billion dollars -- -- charged off.
Within the system.
And if you 400 billion dollars worth of charged off automobile paper within the system and both of those numbers don't -- of their life on a trillion from people and -- them anymore but.
But when you look at them when you look at them in the scope of last year there are ten times larger.
There on the charged off credit card and the charge off -- paper -- so when one year.
We're gonna have a ten times.
Normal which is -- the -- going through the snake so to speak.
And that if -- that -- it's going to be like an aftershock.
To an earthquake the earthquake will was filed -- all pray and commercial real estate and this if -- small or more by feel lonely.
But sometimes when buildings are weakened by the first earthquake -- what next after a shark.
That really bring her down I knew that England San Francisco absolutely really quick here at that's your poll question of the day I'm sure.
Our viewers want to know how would you rate president Obama's first Saturday in -- very good good.
Fair or poor or very poor.
Nice to have you bill.
I -- I -- -- opportunities to talk to billionaire so I think -- for -- semi off -- questions to -- up.
Phil Hartman as CEO -- -- and I enterprises once he's talking about you know he's he's.
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