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When you reduce ahead she or hedges hedges and that really gambling I don't please don't know.
That you said morphed would it didn't -- morph into Russian roulette.
Good morning Neil -- your mind missing and I'm missing something here grilling its CEO over two billion dollar trade on bad and his firm JPMorgan involving private money.
But ignoring the -- trillion dollar time bomb secretly spelled out by that very same firm.
And that -- -- public money.
And we were not supposed to know about that JPMorgan study so one the detailed trillions in an unfunded state and city public pension obligations obligations -- used.
So onerous -- sweeping -- so severe.
That you almost -- wouldn't.
Cut spending enough -- high taxes enough to remotely close the gap again only JPMorgan's top clients were supposed to see that doozy.
But they forgot about -- Charlie because he got it -- on Fox Business drug Gasparino was the first.
To report on that and the very first -- America to ask.
But the guys asking the questions the guys who should be really answer the questions.
We're of those hearings.
Joining the society that songs.
Charles Payne vegan McDowell and defend Fitch it's not a gets ready raise a very good point I mean.
In the scheme of things this looks like a pimple on -- you know what.
And we should point out that they've lost two billion on the trade.
Even with that loss they're going to be making something like three billion dollars this quarter next quarter they may have a twelve to fifteen billion dollars -- earnings year.
So this is I mean there's a lot of reasons politically by the doing these these hearings I think -- -- was a big opponent of some aspects of Dodd-Frank.
So they want to put -- put his feet to the fired -- -- the show that this guy maybe should be.
Such as an effective spokesman.
But you know I'll tell you that report that we -- we were first report on Fox Business.
Really shows how little this is compared to this huge elephant everybody knows it's there by the -- deal with this report to different.
It's spelled it out in explicit details.
Just how big it is and it's on the undercounted even the unfunded mandate is on the -- Municipalities -- -- and it is if you go whether public statements.
It would -- up to about a 1000000000900.
Billion according to report the real number is as you said fortunately -- What's scary that is Charles Payne.
We're so focused on.
Leaving this whole trade thing aside.
You know they -- unfunded liabilities involved Medicare and social security and all these other entitlement programs.
And then along comes in -- Charlie -- printed report on this JPMorgan cited it says.
You forgot about the nearly four trillion in unfunded obligations and -- public pensions.
And -- thinking to myself -- that's a lot of money and there's no way -- -- anyone is remotely remotely address.
You know what the what the markets have been telling us and we talk about the markets melting down and all the risk of fear.
A lack of leadership I mean this is just another gutless display for me for Washington DC another deflection of what's really the problem what's -- who's really to blame.
It's -- a lack of leadership -- -- they're gutless leadership of this country that really is problem number one.
Markets though people know businesses though it every once three trance there waiting for the you know what did the bad.
And instead they want to put on these carnival -- and you know what time it turned the tables on him time after time after time.
I think that we do note that these pensions are problem if you look at this they they spelled it out right.
That I think if you look at the state and local level you had senate Republicans in Michigan tried to switch pensions to a 41 K style program.
You -- that vote recently and San Diego to do the same thing.
At the state level they can see how their services are being cut they can see bankruptcy breathing down their next.
-- -- they are tired a politicians raiding these pensions they're tired of people receiving on.
Boosting them -- big you know -- at their all Blatter in their later years of service so I think that you are starting to put on a.
I thought I'd see a point at one -- it's very clear at least it's it's it's in the air are right now -- -- and in your neck of the woods.
When the democratic very liberal mayor of Los Angeles says he's got a cracked down and address but that'd be a public pensions in his his city much as they voters overwhelmingly wanted to do with San Jose had -- San Diego.
That they can see and read the writing on the wall maybe not to the alarming degree that this report spells out and Charlie reported but people are -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You asked -- it -- I'm looking at all of this sort of saying.
And and and you know it's always goes up from here earlier this week on on Fox Business Network which by the way if you don't get you really should demands to fan but enough about me.
-- my biggest worry and that's this.
Basically gives you that the only way you could address this.
Is to cut spending a hell -- a lot and maybe that won't be enough because you'd select a high taxes that analog what do you do.
I don't know that there is an easy solution and an and it's actually did you're right.
This needs to get a lot more attention from congress and that.
I think you probably.
-- you know not exactly right but that this isn't getting any attention at a state level certainly Illinois which is that as states have tremendous problems underfunding.
It's got a lot of attention Pat Quinn did sign bill earlier this year.
Rooting out a lot of the worst abuses and some of the abuses are just stomach wrenching I'm sure Charlie's written about him.
On a few occasions that -- -- this goes back.
To putting too much trust.
In these sort of fantasia Nancy banker from Wall Street who promised these pension funds we're gonna go get it is set I didn't do that and -- gets -- -- percent return that -- it's just not gonna happen.
I think we should point out too -- to.
-- but it is kind of like the elephant in the room you kind of -- it's very you don't know how big how bad it is and that's what was interest in.
About this report it kind of spell that out thought that out how would you not know and elephants in the room.
Well it's like -- everybody it's big and you'd like well you know what's -- Actually it is clear that but I just think people get ahead when you get why I got -- English class -- when you get to the point you can't even appreciate an elephant in the -- data that you are part of it is a trillion and that's that's the problem we -- an exact and it.
It's bigger than the trillion dollars at the saint member states and cities of it and -- let's get part of the number I do wanna get to the bigger point here that do you think.
That all the aggressive cutting in the world is gonna -- those you really radically in -- spending.
Where have benefits and even some of the draconian -- the -- Is that even an address.
Yeah yes it will but it's politically it would bid to report talks about how politically difficult that is and Leo here's a thick white and JPMorgan.
Keep this report secret which they did we we were able to get a from a a source close to the to the company why would -- try to keep it secret they were so afraid about.
Getting -- you know getting on the wrong side of their clients these big cities and states that are also clients.
Well there is a little legal issues that -- really don't -- -- but Charleston and I'm asking this -- I would have been -- to -- Virginia governor at that hearing even those legal is -- notwithstanding to hold this up and say guys you're talking about my two billion dollar trade here.
You are sitting on a nuclear bomb.
The -- brought that out -- brought up the fact that you know -- America's losing that much money you know it on a daily basis but I did think he did a great job with respect to bringing up some of the issues they should deal with like the fiscal clip.
Don't wait till December 31 because the market's gonna react a lot sooner than that and you know so I I really that's one of the ways he did turn this whole thing around and it -- be -- In the lawmakers many of them fell on his feet and our general like -- in my -- are you kidding me about what's.
Often I'm betting man I -- Let's play that -- and guess what have I couldn't resist it I am very behind.
By the way I don't -- -- New Jersey senator Menendez.
You know lecturing.
This guy on markets and other work that was it I mean -- he's not Paddington and in the nearest Mensa picnic.
We'll come -- I say this.
This that he at least spiced up what was one of the most boring things I was there and I was you know life is like -- wrong read the other side you.
You slice it up and you know -- at least my eyes perked up to -- -- -- -- -- Those guys were kids that.
We're glad he had held up this -- -- -- and done this well what those lawmakers have done.
Jack all the same thing that they're doing an about all the federal problems that we have less of security and Medicare and I learned that much for joining.
I think we should point out that diamond put that -- -- journey hearings hundreds of regulators were in the office and missed this.
This is very -- but undercuts.
I'm gonna I read about it.
It was fate was intentionally -- to what 77 years old can can we take lower opinion -- -- -- all the latest American public that's gonna have their --
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