Before the Bell 8/21/2008

[0:24]..." history in the United States goes back release of the funding the Federal Reserve System. To preserve the stability and integrity of the banking and financial sector in general. And as a result of that the Federal Reserve has a balance -- Not numbers around 800 billion in size. That they moralists have the ability to deployed. At their own "...

[2:01]..." not like money that's that's in an account somewhere this is the Federal Reserve. Printing money. Well in in a sense and unreliable they have billion dollar defense role you know is a very large trading "...

[2:34]..." reserve fund that is at the discretion. Of the leaders of the Federal Reserve System for just such an emergency if they deem it to be an emergency. And be at the failure of our largest bank. "...

[3:44]..." plain stupid or in this case. They would leverage in other words. Wall Street kind of look and everybody else they he would they're doing it look at their investments. Ideas of how to make money. And what happens is they look around there's there's urged for profitability and to make more money because money is about money -- Wall Street. And when we got to that point we actually said he spoke more things still look good we should get into that yet we should get into that and they all kind of followed her. And I'd like to say -- for the first time it's happened but it -- I mean this is eerily reminiscent of 1990 we're having these same sort of issues coming out so. Wall Street always does -- look for the profit. Then what happened this time is that you all for lever stated just by -- "...

[2:37]..." and L crisis back in the late eighties we had that the stock market crash of 87 we have. You know -- recession in the seventies we -- in the early seventies another recession in the in "...

[5:00]..." the great depression because Lehman's 158 years old. Yet they could survive President Bush. I know what a lot of you gonna say gee how can you blame this on President Bush. Here's how I blame them he was turn a blind -- when people buy -- house with no money down -- interest only. Take in the equity out of those houses and go on I'll buy -- thirty. 1040050000. Dollar as -- on vacations by. Forty and sixty and eighty inch TV it's right -- that he finishes up I think so yes I -- is a little bit longer had read it all so yes I blame President Bush but I also blamed the stupid American people. For want the same old thing. How much the politicians. In your opinion I "...

[0:24]..." so let's hope we're killing is tomorrow to 68 PM. After these interest rates -- to -- the -- pretty good dow's up almost 8% S&P is up for the half percent plus nasdaq's up but seven point 7% -- are doing okay the only -- still that is small caps which is the care of the market for a lot of years but they're down. About half percent this year internationally we've also got the EAFE index. Of fired four point 1% -- the debate here but certainly respect what you would all the volatility it's going on but this week it was a very busy week we do that -- coming in their criticize -- What it is that they're going to do with interest rates. Also we've -- most of the big investment banks coming elder investment earnings this week at least that's going to be starting off on Tuesday so we're going to hopefully it'll look at there's anything under the covers. Of any of these mortgage loans that we can talk about that there might be thing about it. So we get too big inflation numbers and that's key is -- we talk about the Federal Reserve to -- that you Greenspan's saying these days but. We get the producer in the consumer inflation coming out we also have "...

[1:50]..." Reno Bernanke's to die now but we're sure hearing a lot from Alan Greenspan. "...

[2:36]..." this consumer credit crisis -- is looking at these were about rising interest rates. He doesn't see any of -- has spiraling down because he underlined strengthened in both the real estate in the US economy's so it's kind of hedging has spent a little bit but. The name of the book is Egypt "...