1 00:00:28,762 --> 00:00:30,389 This picture, 2 00:00:30,430 --> 00:00:33,194 truly one of the most unusual ever filmed, 3 00:00:33,233 --> 00:00:36,828 contains scenes which under no circumstances 4 00:00:36,870 --> 00:00:39,600 should be viewed by anyone with a heart condition 5 00:00:39,639 --> 00:00:42,233 or anyone who is easily upset. 6 00:00:42,275 --> 00:00:44,300 We urgently recommend 7 00:00:44,344 --> 00:00:47,177 that if you are such a person or the parent 8 00:00:47,213 --> 00:00:50,546 of a young or impressionable child now in attendance, 9 00:00:50,583 --> 00:00:54,314 that you and the child leave the auditorium. 10 00:00:54,354 --> 00:00:56,845 - ( rock music playing ) - Yeah 11 00:01:03,063 --> 00:01:06,931 Louie Louiewhoa baby 12 00:01:06,966 --> 00:01:09,400 I gotta go now 13 00:01:11,271 --> 00:01:15,037 Louie Louiewhoa baby 14 00:01:15,075 --> 00:01:17,600 I really gotta go now 15 00:01:19,446 --> 00:01:23,246 The Communist world is fallin' apart 16 00:01:23,283 --> 00:01:27,743 The capitalists are just breakin' hearts 17 00:01:27,787 --> 00:01:31,188 Money is the reason to be 18 00:01:31,224 --> 00:01:35,888 It makes me just wanna sing Louie Louie 19 00:01:35,929 --> 00:01:39,592 Louie Louiewhoa baby 20 00:01:39,632 --> 00:01:42,123 I gotta go now 21 00:01:44,037 --> 00:01:47,632 Louie Louiewhoa baby 22 00:01:47,674 --> 00:01:50,006 I really gotta go now 23 00:01:50,043 --> 00:01:54,571 Some say it will, some say it won't 24 00:01:54,614 --> 00:01:57,981 Now you see it, now you don't 25 00:01:58,017 --> 00:02:02,511 We spent all our money on a disaster movie 26 00:02:02,555 --> 00:02:06,286 It makes me wanna sing Louie Louie 27 00:02:06,326 --> 00:02:10,228 Louie Louie whoa baby 28 00:02:10,263 --> 00:02:13,096 I gotta go now 29 00:02:14,234 --> 00:02:18,170 Louie Louie whoa baby 30 00:02:18,204 --> 00:02:20,468 I really gotta go now 31 00:02:20,507 --> 00:02:22,600 Oh, let's give it to 'em right now. 32 00:02:26,613 --> 00:02:29,173 ( trumpet playing ) 33 00:02:42,128 --> 00:02:44,824 Narrator:. Rome was the largest and the most beautiful city 34 00:02:44,864 --> 00:02:47,332 of the ancient world. 35 00:02:47,367 --> 00:02:49,767 The magnificent facade of the empire, however, 36 00:02:49,802 --> 00:02:53,203 could not conceal the seeds of decay, 37 00:02:53,239 --> 00:02:57,073 the unhealthy dependence of the economy on slaves, 38 00:02:57,110 --> 00:03:00,307 the disparity between rich and poor. 39 00:03:00,346 --> 00:03:02,211 Behind the splendor of the Forum 40 00:03:02,248 --> 00:03:05,308 were vast areas of crowded slums. 41 00:03:05,351 --> 00:03:09,685 Escape from the slums was difficult for there were few jobs available 42 00:03:09,722 --> 00:03:12,190 and practically none for the unskilled. 43 00:03:12,225 --> 00:03:15,558 To keep idle citizens entertained and out of mischief, 44 00:03:15,595 --> 00:03:19,656 frequent games and spectacles were held at public expense. 45 00:03:19,699 --> 00:03:22,862 At first, only chariot races were sponsored. 46 00:03:22,902 --> 00:03:24,699 But by the reign of Trajan, 47 00:03:24,737 --> 00:03:27,865 brutal combat to the death had become popular. 48 00:03:27,907 --> 00:03:29,966 Earlier in Rome's history, 49 00:03:30,009 --> 00:03:32,876 elected representatives exercised the power. 50 00:03:32,912 --> 00:03:35,312 But by now, every function of government 51 00:03:35,348 --> 00:03:37,373 had been absorbed by the emperor 52 00:03:37,417 --> 00:03:40,443 who was above the law and ruled by decree. 53 00:03:40,486 --> 00:03:43,421 That a people as civilized as the Romans, 54 00:03:43,456 --> 00:03:46,448 with the most humane system of law ever devised, 55 00:03:46,492 --> 00:03:48,824 could tolerate the violation of human beings 56 00:03:48,861 --> 00:03:50,795 is astonishing. 57 00:03:50,830 --> 00:03:53,594 This imbalance and the irresponsible behavior 58 00:03:53,633 --> 00:03:56,659 of public officials would become major reasons 59 00:03:56,703 --> 00:03:59,570 for Rome's eventual decline. 60 00:04:01,641 --> 00:04:05,509 Michael Moore:. I wonder how future civilizations will view our society. 61 00:04:05,545 --> 00:04:07,410 Will they judge us by this? 62 00:04:07,447 --> 00:04:09,472 - He's a cat flushin' a toilet... - ( mews ) 63 00:04:09,515 --> 00:04:13,474 He's a cat flushin' a toilet, he's a cat flushin' a toilet 64 00:04:13,519 --> 00:04:15,646 He'sacatflushin'atoilet 65 00:04:16,723 --> 00:04:18,247 ( mews ) 66 00:04:18,291 --> 00:04:21,928 Moore:. Or will they judge us by this? 67 00:04:32,372 --> 00:04:34,237 Man #1 : Do you see the sheriff's car? 68 00:04:34,274 --> 00:04:37,300 Man #2: Yeah, right there. The sheriff-- that's the first car. 69 00:04:37,343 --> 00:04:39,709 - Woman: No-- - There he is. 70 00:04:54,761 --> 00:04:57,662 Man #3: Three, four, five, six... 71 00:04:57,697 --> 00:04:59,688 Woman: Seven. 72 00:05:08,141 --> 00:05:10,200 - Man #1 : Give me the phone. - Woman: It's on this-- 73 00:05:10,243 --> 00:05:13,440 it's on the c-- it's on the couch. 74 00:05:13,479 --> 00:05:16,971 All right, that's as close as I can get, Dad. 75 00:05:21,754 --> 00:05:24,552 - Don't stand in front of the door, Dad. - ( knocking ) 76 00:05:24,590 --> 00:05:26,922 ( whispering ) Get out from the-- 77 00:05:26,959 --> 00:05:29,484 Hey, Sheriff, Robert inside the house here. 78 00:05:29,529 --> 00:05:32,259 - ( knocking ) - ( loud banging ) 79 00:05:32,298 --> 00:05:34,892 Woman: They're trying to beat the back door in, Dad. 80 00:05:34,934 --> 00:05:36,424 ( loud banging ) 81 00:05:36,469 --> 00:05:39,199 There are four of us in here. They're beating on the door. 82 00:05:39,238 --> 00:05:41,866 We're not gonna resist, but you will have to come 83 00:05:41,908 --> 00:05:43,876 in the house on your own. 84 00:05:43,910 --> 00:05:46,174 But there are four souls in this house. 85 00:05:49,949 --> 00:05:52,076 Woman: Dad, don't stand in front of the door. 86 00:05:52,118 --> 00:05:54,086 - Do not. - ( doorknob rattling ) 87 00:05:54,120 --> 00:05:58,284 ( banging continues ) 88 00:06:01,127 --> 00:06:03,118 Woman: Another witness. 89 00:06:03,162 --> 00:06:04,686 Tell your name to the camera. 90 00:06:04,731 --> 00:06:08,792 - I'm David Phillips. - Chris Collins. 91 00:06:08,835 --> 00:06:11,201 AndAudraCollins 92 00:06:11,237 --> 00:06:13,865 ( banging continues ) 93 00:06:16,175 --> 00:06:18,439 - David: And this is America? - Chris: Uh-huh. 94 00:06:18,478 --> 00:06:21,743 Audra: This is America, folks, what you're watching right here. 95 00:06:32,792 --> 00:06:35,317 - Sheriff's office. - Robert: Yeah, we know. 96 00:06:35,361 --> 00:06:39,923 - Okay, y'all have to come out, please. - Robert: All right. 97 00:06:39,966 --> 00:06:44,460 Woman: We cannot act like this-- this is just something that's okay. 98 00:06:44,504 --> 00:06:46,472 And sothis is new. 99 00:06:46,506 --> 00:06:49,373 They've never come out and boarded up our house 100 00:06:49,409 --> 00:06:51,172 after they've evicted the person 101 00:06:51,210 --> 00:06:53,770 and threw their furniture in the dumpster. 102 00:06:53,813 --> 00:06:55,838 So they're letting us know 103 00:06:55,882 --> 00:06:59,409 that they are stepping it up, 104 00:06:59,452 --> 00:07:01,784 boarding up somebody's house. 105 00:07:01,821 --> 00:07:03,880 This has been my family home. This is my parents' house. 106 00:07:03,923 --> 00:07:06,153 I've lived here for 41 years. 107 00:07:08,761 --> 00:07:11,127 This is the only home I've ever really lived in. 108 00:07:11,164 --> 00:07:13,962 This is the only-- this will always be home to me, no matter what. 109 00:07:14,000 --> 00:07:15,729 - I'm a carpenter. - Woman: There you go. 110 00:07:15,768 --> 00:07:17,895 Man #1 : Sandra, they're leaving. Let them leave. 111 00:07:17,937 --> 00:07:20,462 - Man #2: I'm a carpenter. So what? - That's all I am. 112 00:07:22,975 --> 00:07:25,739 - Well, people pay their bills. - This could happen to you. 113 00:07:25,778 --> 00:07:28,269 Carpenter: That's right. So why do you think I'm doing it? 114 00:07:28,314 --> 00:07:30,441 I don't have to be happy about this, but that's what I do. 115 00:07:30,483 --> 00:07:33,350 Sandra: That's all I'm saying is that maybe you can make another choice. 116 00:07:33,386 --> 00:07:35,980 - That's all we're saying. - That's no reason for... 117 00:07:36,022 --> 00:07:37,580 Sandra: You're a working-class person. 118 00:07:37,623 --> 00:07:40,649 ...people here to get upset and almost get themselves hurt. 119 00:07:40,693 --> 00:07:43,423 We ain't gonna get hurt. 120 00:07:43,463 --> 00:07:44,987 Are you threatening us? 121 00:07:45,031 --> 00:07:47,829 Y'all gonna get on out of here. You might end up even getting hurt. 122 00:07:47,867 --> 00:07:50,734 Talking about us getting hurt, you might get hurt. 123 00:07:50,770 --> 00:07:52,897 Man: There's gonna be some kind of a rebellion 124 00:07:52,939 --> 00:07:55,965 between the people that have nothing 125 00:07:56,008 --> 00:07:59,375 and the people that's got it all. 126 00:07:59,412 --> 00:08:00,936 I don't understand. 127 00:08:00,980 --> 00:08:02,880 There's no in-between no more. 128 00:08:02,915 --> 00:08:05,008 There's the people that's got it all 129 00:08:05,051 --> 00:08:06,951 and the people that have nothing. 130 00:08:09,822 --> 00:08:12,416 We gotta get this stuff out of the house and packed up 131 00:08:12,458 --> 00:08:15,325 and be out of here in about 30 days 132 00:08:15,361 --> 00:08:17,693 even though we don't have a place to go. 133 00:08:21,334 --> 00:08:24,167 Oh. 134 00:08:24,203 --> 00:08:26,296 Woman: We designed this house. 135 00:08:26,339 --> 00:08:30,366 The property that it's on was my family farm. 136 00:08:32,645 --> 00:08:37,639 So I've lost a piece of my heritage with this. 137 00:08:37,683 --> 00:08:41,414 Why do you do this to the hard-working people? 138 00:08:46,726 --> 00:08:50,093 Why do you take everything? 139 00:08:50,129 --> 00:08:52,996 You take everything away from them. 140 00:08:53,032 --> 00:08:56,331 We're just middle-class, hard-working people 141 00:08:56,369 --> 00:08:58,462 trying to make a living. 142 00:09:01,073 --> 00:09:03,940 Just trying to survive. 143 00:09:07,480 --> 00:09:09,573 An old Browning. 144 00:09:11,150 --> 00:09:13,812 ( grunts ) My pistol, 145 00:09:13,853 --> 00:09:17,550 my dad's pistol, my pistol. 146 00:09:17,590 --> 00:09:19,387 ( sighs ) 147 00:09:19,425 --> 00:09:21,985 - ( knocking ) - Man: Sheriff's department. 148 00:09:22,028 --> 00:09:24,223 It's supposed to be 30 days. 149 00:09:24,263 --> 00:09:26,356 I got 30 days to get my stuff out. 150 00:09:26,399 --> 00:09:28,959 - That's what the guy told me. - No. 151 00:09:29,001 --> 00:09:30,969 What? 152 00:09:31,003 --> 00:09:33,836 It's currently scheduled for today. 153 00:09:33,873 --> 00:09:35,397 But... 154 00:09:35,441 --> 00:09:37,739 The paper's telling us that we are due 155 00:09:37,777 --> 00:09:41,178 to do an eviction here today at 9:00 AM. 156 00:09:41,213 --> 00:09:43,238 Huh, shoot. 157 00:09:44,517 --> 00:09:47,281 Well, he's surprised too. 158 00:09:47,320 --> 00:09:49,481 The house is gone. 159 00:09:49,522 --> 00:09:51,046 That cop told me that the house 160 00:09:51,090 --> 00:09:53,354 has already been sold to somebody else. 161 00:09:53,392 --> 00:09:56,589 So we don't own the house no more, somebody else does. 162 00:09:57,930 --> 00:10:00,899 Moore: This is capitalism, 163 00:10:00,933 --> 00:10:04,562 a system of taking and giving-- 164 00:10:04,604 --> 00:10:07,129 mostly taking. 165 00:10:07,173 --> 00:10:09,073 The only thing we didn't know 166 00:10:09,108 --> 00:10:12,305 was when the revolt would begin. 167 00:10:12,345 --> 00:10:14,506 Man: Everything, we've tried everything... 168 00:10:14,547 --> 00:10:16,174 except robbing a bank. 169 00:10:16,215 --> 00:10:18,843 I'm thinking about maybe doing that. 170 00:10:18,884 --> 00:10:22,718 You know, that's one way somebody could get their money back. 171 00:10:22,755 --> 00:10:24,814 If they did it-- they did it to me, 172 00:10:24,857 --> 00:10:27,326 I don't know why I can't do it to them. 173 00:10:31,263 --> 00:10:33,458 Peter Zalewski: This is my second Hyundai Sonata. 174 00:10:33,499 --> 00:10:34,966 I'll probably get a new car next year. 175 00:10:35,001 --> 00:10:36,730 And when I do, it'll probably be another Sonata. 176 00:10:36,769 --> 00:10:38,327 You know, I'm not a car guy. 177 00:10:38,371 --> 00:10:40,134 If I can go in there and steal a condo 178 00:10:40,172 --> 00:10:42,663 for the equivalent of what a Mercedes would cost 179 00:10:42,708 --> 00:10:45,176 or a Bentley would cost, I'm all about that. 180 00:10:46,178 --> 00:10:48,078 Moore: Meet Peter Zalewski, 181 00:10:48,114 --> 00:10:50,480 Florida's up-and-coming real estate whiz. 182 00:10:50,516 --> 00:10:52,040 Here we go. 183 00:10:52,084 --> 00:10:55,645 Moore: He calls his real estate company Condo Vultures. 184 00:10:55,688 --> 00:10:57,349 ( stuttering ) We have a very good sign. 185 00:10:57,390 --> 00:10:58,914 You have the final notice of eviction. 186 00:10:58,958 --> 00:11:00,949 So you can see this person was basically thrown out 187 00:11:00,993 --> 00:11:02,824 by the police department. 188 00:11:02,862 --> 00:11:04,796 Welcome. 189 00:11:06,098 --> 00:11:07,725 Moore: Peter deals exclusively 190 00:11:07,767 --> 00:11:10,031 with clients who buy up foreclosed homes 191 00:11:10,069 --> 00:11:12,503 and then resell them at a profit. 192 00:11:12,538 --> 00:11:15,166 It's gonna be about 830 square feet or so... 193 00:11:15,207 --> 00:11:17,334 At the end of the day, the only people who are buying 194 00:11:17,376 --> 00:11:19,435 are primarily individuals that we represent... 195 00:11:19,478 --> 00:11:21,946 Today it's on the market for $66,000. 196 00:11:21,981 --> 00:11:24,245 ...which are basically bottom feeders who are going in there. 197 00:11:24,283 --> 00:11:26,148 They have no compassion, no sensitivity. 198 00:11:26,185 --> 00:11:28,949 They're running purely off numbers They're coming in all cash, 199 00:11:28,988 --> 00:11:31,388 and they're looking to slit any single seller's throat 200 00:11:31,424 --> 00:11:33,517 regardless of what their situation is. 201 00:11:33,559 --> 00:11:35,857 So people always ask, "What's 25c on the dollar?" 202 00:11:35,895 --> 00:11:37,658 This is it. This is what you're gonna get. 203 00:11:37,697 --> 00:11:40,894 The vulture basically represents a bottom feeder 204 00:11:40,933 --> 00:11:44,198 that goes in there and cleans off a carcass. 205 00:11:44,236 --> 00:11:46,761 Because they're dealing with so many different germs and situations, 206 00:11:46,806 --> 00:11:49,104 they'll have to vomit on themselves and there's some sort 207 00:11:49,141 --> 00:11:51,075 of cleansing process that occurs. 208 00:11:51,110 --> 00:11:52,975 The vultures aren't actually killing, 209 00:11:53,012 --> 00:11:54,775 they're the ones doing the clean-up. 210 00:11:54,814 --> 00:11:56,304 Which bank you want? Bank of America? 211 00:11:56,348 --> 00:11:58,213 What we do is we tap into data... 212 00:11:58,250 --> 00:11:59,842 and boom, voila. 213 00:11:59,885 --> 00:12:03,252 Here we got 3,400 foreclosing by Bank of America. 214 00:12:03,289 --> 00:12:04,756 Gotta love it. 215 00:12:04,790 --> 00:12:07,315 As we collect data, it's giving us 216 00:12:07,359 --> 00:12:10,089 the insight into the battlefield, 217 00:12:10,129 --> 00:12:13,496 almost like a drone that flies over the battleground in Afghanistan 218 00:12:13,532 --> 00:12:16,501 or in Pakistan or in lraq. 219 00:12:16,535 --> 00:12:18,696 The current asking price is 355. 220 00:12:18,738 --> 00:12:20,797 Again, it was purchased for 840. 221 00:12:20,840 --> 00:12:23,138 A little bit of a discount. You're gonna have two... 222 00:12:23,175 --> 00:12:25,268 Our people are using that data to be able to go in 223 00:12:25,311 --> 00:12:28,303 and try to steal properties, legally and ethically, 224 00:12:28,347 --> 00:12:30,372 but take them at the bare-bone bottom price. 225 00:12:30,416 --> 00:12:32,384 It's all about taking right now. 226 00:12:32,418 --> 00:12:35,319 Look at the-- look at the roof-- completely gone and missing. 227 00:12:35,354 --> 00:12:37,822 We haven't had a hurricane in five years. 228 00:12:37,857 --> 00:12:39,882 ( laughing ) 229 00:12:39,925 --> 00:12:42,450 Welcome to the housing crash, Miami style. 230 00:12:42,495 --> 00:12:44,190 So this-- this is what capitalism is 231 00:12:44,230 --> 00:12:46,391 and this is why the information is so critical. 232 00:12:46,432 --> 00:12:47,990 We go in there, we alert them to it, 233 00:12:48,033 --> 00:12:49,523 and if they like it, you know-- 234 00:12:49,568 --> 00:12:51,536 ( imitates shotgun ) 235 00:12:51,570 --> 00:12:53,003 - Look at the window. - Look at that. 236 00:12:53,038 --> 00:12:54,801 Looks like the house next door was on fire. 237 00:12:54,840 --> 00:12:56,705 This is straight up capitalism. 238 00:12:56,742 --> 00:12:59,233 - Fire damage. - I wonder if somebody was living there... 239 00:12:59,278 --> 00:13:01,269 Zalewski: Everybody's got this desire to go in there 240 00:13:01,313 --> 00:13:03,747 and take advantage of others' misfortunes. 241 00:13:03,783 --> 00:13:04,909 Somebody asked me, 242 00:13:04,950 --> 00:13:07,111 "What's the difference between you and a real vulture?" 243 00:13:07,153 --> 00:13:09,986 I said, "It's very simple. I don't vomit on myself." 244 00:13:12,358 --> 00:13:15,418 Our topic today: What is capitalism? 245 00:13:15,461 --> 00:13:16,621 Capitalism? 246 00:13:16,662 --> 00:13:19,130 Well, why should there be any question about it? 247 00:13:19,165 --> 00:13:22,623 Hasn't it given us the highest standard of living in the world? 248 00:13:22,668 --> 00:13:25,398 We're free to try to make a profit, 249 00:13:25,437 --> 00:13:27,735 to just get by, or to fail. 250 00:13:27,773 --> 00:13:29,764 That's what capitalism is: 251 00:13:29,809 --> 00:13:32,300 a system of free enterprise. 252 00:13:32,344 --> 00:13:34,642 Now tell us what "free enterprise" means. 253 00:13:35,915 --> 00:13:38,315 Moore: I went to see my friend Wally Shawn, 254 00:13:38,350 --> 00:13:40,545 a playwright and sometimes actor. 255 00:13:40,586 --> 00:13:42,110 Inconceivable! 256 00:13:42,154 --> 00:13:45,385 Moore: But Wally also studied history and politics 257 00:13:45,424 --> 00:13:48,291 and even a little elementary economics. 258 00:13:48,327 --> 00:13:52,593 Free enterprise is a form of words 259 00:13:52,631 --> 00:13:55,361 that is intended to conjure up in your mind 260 00:13:55,401 --> 00:14:00,338 a little town with different shops. 261 00:14:00,372 --> 00:14:03,307 And the guy who runs the best shop 262 00:14:03,342 --> 00:14:05,833 has the most customers. 263 00:14:05,878 --> 00:14:08,278 Narrator: There is the basis of the capitalistic system: 264 00:14:08,314 --> 00:14:09,906 the profit motive. 265 00:14:09,949 --> 00:14:12,782 He's in business to make money. 266 00:14:12,818 --> 00:14:15,286 Shawn: The original theory of capitalism 267 00:14:15,321 --> 00:14:18,313 is that it's a very clever way 268 00:14:18,357 --> 00:14:22,726 of society voting on what goods 269 00:14:22,761 --> 00:14:25,161 it wants made. 270 00:14:25,197 --> 00:14:27,028 What do you use this for? 271 00:14:27,066 --> 00:14:30,900 That's-- I could use that for practically everything I ever do. 272 00:14:30,936 --> 00:14:34,599 You know, society votes. 273 00:14:34,640 --> 00:14:36,904 They like the way this guy 274 00:14:36,942 --> 00:14:39,638 makes ice cream. 275 00:14:39,678 --> 00:14:41,305 But the other guy, 276 00:14:41,347 --> 00:14:44,680 they don't like his ice cream that much 277 00:14:44,717 --> 00:14:49,586 and they don't buy it, so it fades out. 278 00:14:49,622 --> 00:14:52,250 It's on me. That is a good fit. 279 00:14:52,291 --> 00:14:56,625 Shawn: The basic law of life is that if you have things, 280 00:14:56,662 --> 00:15:00,029 you can easily get more things. 281 00:15:00,065 --> 00:15:03,057 Very quickly, one guy can have 282 00:15:03,102 --> 00:15:05,798 five times more than anybody else. 283 00:15:05,838 --> 00:15:08,238 - Free enterprise. - Competition. 284 00:15:08,274 --> 00:15:09,741 Woman: The profit motive. 285 00:15:11,744 --> 00:15:14,645 Moore: My dad, an assembly-line worker at General Motors, 286 00:15:14,680 --> 00:15:16,341 bought and paid for our house 287 00:15:16,382 --> 00:15:20,045 before I graduated from kindergarten. 288 00:15:20,085 --> 00:15:23,213 We had a new car every three years. 289 00:15:25,257 --> 00:15:28,090 We went to New York every other summer. 290 00:15:28,127 --> 00:15:31,096 That's me on Wall Street. 291 00:15:31,130 --> 00:15:33,030 And that's me directing my first movie 292 00:15:33,065 --> 00:15:34,589 at the World's Fair. 293 00:15:34,633 --> 00:15:38,660 We went to Catholic schools, we lived a good life. 294 00:15:40,439 --> 00:15:43,772 If this was capitalism, I loved it... 295 00:15:43,809 --> 00:15:46,277 and so did everyone else. 296 00:15:46,312 --> 00:15:50,305 During these years a lot of people got rich 297 00:15:50,349 --> 00:15:54,342 and they had to pay a top tax rate of 90%. 298 00:15:54,386 --> 00:15:56,479 90%? 299 00:15:56,522 --> 00:15:58,353 Yep. 300 00:15:58,390 --> 00:16:02,952 But they still got to live like Bogie and Bacall. 301 00:16:02,995 --> 00:16:05,327 And what did we do with all their money? 302 00:16:05,364 --> 00:16:08,128 We built damns, bridges, 303 00:16:08,167 --> 00:16:11,967 interstate highways, schools, hospitals. 304 00:16:12,004 --> 00:16:14,438 We even sent a guy to the moon. 305 00:16:14,473 --> 00:16:16,873 Things seemed to be going in the right direction. 306 00:16:16,909 --> 00:16:19,969 Dad had a secure job and Mom could work 307 00:16:20,012 --> 00:16:22,446 if she wanted, but didn't have to. 308 00:16:22,481 --> 00:16:26,383 Middle-class families only needed one income to survive. 309 00:16:26,418 --> 00:16:29,683 Our union family had free health care and free dental. 310 00:16:29,722 --> 00:16:33,180 The kids could go to college without getting a loan from a bank. 311 00:16:33,225 --> 00:16:36,854 Dad had four weeks paid vacation every summer. 312 00:16:36,895 --> 00:16:40,729 Most people had a savings account and little debt. 313 00:16:40,766 --> 00:16:44,532 And Dad's pension was set aside where no one could touch it. 314 00:16:44,570 --> 00:16:48,563 It would be there for him when he retired. 315 00:16:48,607 --> 00:16:52,668 We got all of this because our main industrial competition 316 00:16:52,711 --> 00:16:55,236 had been reduced to rubble. 317 00:16:55,280 --> 00:16:57,942 Here's what the German car industry looked like. 318 00:16:57,983 --> 00:17:01,419 And here's the Japanese auto industry. 319 00:17:01,453 --> 00:17:03,546 I guess you could say it's easy to be number one 320 00:17:03,589 --> 00:17:06,524 when you have no competition. 321 00:17:06,558 --> 00:17:09,118 Yes, of course not everything was perfect. 322 00:17:09,161 --> 00:17:11,061 We didn't mind having to put up 323 00:17:11,096 --> 00:17:14,031 with a little bit of this and a little bit of that... 324 00:17:16,635 --> 00:17:19,263 just as long as we could be middle-class. 325 00:17:21,607 --> 00:17:25,304 And we could count on our kids having it better than we had it. 326 00:17:25,344 --> 00:17:28,677 It sounded like a good deal to us. 327 00:17:28,714 --> 00:17:32,878 Capitalism-- no one ever had it so good. 328 00:17:40,759 --> 00:17:42,784 And then, right when we were in the middle 329 00:17:42,828 --> 00:17:46,265 of this big love affair with capitalism... 330 00:17:46,265 --> 00:17:48,733 Announcer: The ABC Sunday Night Movie "The Gambler" 331 00:17:48,767 --> 00:17:50,428 will continue in its entirety 332 00:17:50,469 --> 00:17:54,064 following this live report from ABC News. 333 00:17:54,106 --> 00:17:58,975 We are at a turning point in our history. 334 00:17:59,011 --> 00:18:01,275 Moore: Along came Debbie Downer. 335 00:18:01,313 --> 00:18:05,079 Too many of us now tend to worship 336 00:18:05,117 --> 00:18:09,520 self-indulgence and consumption. 337 00:18:09,555 --> 00:18:13,548 Human identity is no longer defined 338 00:18:13,592 --> 00:18:17,323 by what one does, 339 00:18:17,362 --> 00:18:20,229 but by what one owns. 340 00:18:20,265 --> 00:18:21,926 This is not a message 341 00:18:21,967 --> 00:18:25,528 of happiness or reassurance, 342 00:18:25,571 --> 00:18:27,801 but it is the truth 343 00:18:27,840 --> 00:18:29,831 and it is a warning. 344 00:18:29,875 --> 00:18:31,843 Moore: Wow, what a bummer. 345 00:18:31,877 --> 00:18:35,005 It was time to bring a new sheriff to town... 346 00:18:35,047 --> 00:18:36,139 ( horse whinnies ) 347 00:18:36,181 --> 00:18:38,649 ...one who knew how to act like a president. 348 00:18:38,684 --> 00:18:42,347 He knew how to handle workers who wanted a better wage. 349 00:18:42,387 --> 00:18:44,651 ( gunshot ) 350 00:18:44,690 --> 00:18:47,625 All right, mister,, I guessyouwin. 351 00:18:47,659 --> 00:18:49,149 Moore: Or these annoying feminists 352 00:18:49,194 --> 00:18:51,958 whining about their Equal Rights Amendment. 353 00:18:51,997 --> 00:18:54,465 Well, I can change that in a hurry. 354 00:18:56,168 --> 00:18:59,968 Moore: A man who knew how to get the job done. 355 00:19:00,005 --> 00:19:03,532 Ronald Reagan came out of the B movies 356 00:19:03,575 --> 00:19:07,739 to become the most famous corporate spokesman of the 1950s. 357 00:19:07,779 --> 00:19:10,475 It's a transistor radio too. Weighs only a few ounces. 358 00:19:10,516 --> 00:19:11,949 You can slip it right into your pocket. 359 00:19:11,984 --> 00:19:14,350 Boraxo waterless hand cleaner really cleans up for us. 360 00:19:14,386 --> 00:19:16,320 Moore: He had found his calling 361 00:19:16,355 --> 00:19:19,290 and Wall Street had found their man. 362 00:19:19,324 --> 00:19:22,384 You see, the banks and corporations had a simple plan: 363 00:19:22,427 --> 00:19:25,794 to remake America to serve them. 364 00:19:25,831 --> 00:19:27,423 But to pull it off would require 365 00:19:27,466 --> 00:19:30,492 electing a spokesmodel for president. 366 00:19:30,536 --> 00:19:34,734 And on November 4th, 1980, that's what we did. 367 00:19:34,773 --> 00:19:36,604 ...that I will faithfully execute 368 00:19:36,642 --> 00:19:38,837 the office of President of the United States. 369 00:19:38,877 --> 00:19:41,072 Crowd: Ronald Ronald Ronald... 370 00:19:41,113 --> 00:19:43,343 Thank you. 371 00:19:43,382 --> 00:19:46,112 Moore: It was an historic moment 372 00:19:46,151 --> 00:19:48,915 because now corporate America and Wall Street 373 00:19:48,954 --> 00:19:51,946 were in almost complete control. 374 00:19:51,990 --> 00:19:54,686 See that guy standing next to the president? 375 00:19:54,726 --> 00:19:57,593 You know, the one that looks like a butler? 376 00:19:57,629 --> 00:19:59,995 His name was Don Regan, 377 00:20:00,032 --> 00:20:02,296 the Chairman of Merrill Lynch, 378 00:20:02,334 --> 00:20:06,862 the richest and biggest retail brokerage firm in the world. 379 00:20:06,905 --> 00:20:09,874 He took the key position of Treasury Secretary 380 00:20:09,908 --> 00:20:13,776 so he could enact the tax cuts that the rich wanted. 381 00:20:13,812 --> 00:20:16,110 Regan then became White House Chief of Staff 382 00:20:16,148 --> 00:20:19,709 as the president started to fade. 383 00:20:19,751 --> 00:20:22,879 Then they should give the president what 43 governors have, 384 00:20:22,921 --> 00:20:25,389 a line-item veto. 385 00:20:25,424 --> 00:20:27,585 - And... - ( applause ) 386 00:20:27,626 --> 00:20:31,687 - You're gonna have to speed it up. - Oh. 387 00:20:31,730 --> 00:20:34,893 Moore: Who tells the president to speed it up? 388 00:20:34,933 --> 00:20:38,767 The man from Merrill Lynch, that's who. 389 00:20:38,804 --> 00:20:43,264 Things in America would never be the same again. 390 00:20:43,308 --> 00:20:46,744 The country would now be run like a corporation. 391 00:20:46,778 --> 00:20:48,871 We're going to turn the bull loose. 392 00:20:48,914 --> 00:20:52,281 ( cheering, applause ) 393 00:20:52,317 --> 00:20:55,912 Moore: And four years later, when Reagan ran for reelection, 394 00:20:55,954 --> 00:20:59,390 it was all smiley faces and happy talk. 395 00:20:59,424 --> 00:21:01,949 I really feel that we're gonna be better off in the long run. 396 00:21:01,994 --> 00:21:04,929 We're on the upward swing 397 00:21:04,963 --> 00:21:08,490 and the factories are working much stronger than before. 398 00:21:08,533 --> 00:21:10,933 We're back on top. 399 00:21:14,473 --> 00:21:16,839 Moore: Actually, what Reagan presided over 400 00:21:16,875 --> 00:21:21,437 was the wholesale dismantling of our industrial infrastructure. 401 00:21:21,480 --> 00:21:25,314 This was not done to save money or remain competitive, 402 00:21:25,350 --> 00:21:27,409 as companies back then were already posting 403 00:21:27,452 --> 00:21:30,853 record earnings in the billions. 404 00:21:30,889 --> 00:21:34,620 No, it was done for short-term profits... 405 00:21:38,730 --> 00:21:41,631 and to destroy the unions. 406 00:21:41,667 --> 00:21:44,761 Millions of people were thrown out of work 407 00:21:44,803 --> 00:21:48,136 and the remaining workers were told to work twice as hard. 408 00:21:49,608 --> 00:21:53,066 But wages for working people remained frozen. 409 00:21:54,980 --> 00:21:57,813 The richest Americans had their top income tax rate 410 00:21:57,849 --> 00:22:00,784 cut in half. 411 00:22:02,621 --> 00:22:05,715 Instead of being paid a decent wage, 412 00:22:05,757 --> 00:22:08,521 we were encouraged to live on borrowed money 413 00:22:08,560 --> 00:22:12,621 until our household debt was nearly 100% of the GDP. 414 00:22:12,664 --> 00:22:15,827 There was an explosion of personal bankruptcies. 415 00:22:15,867 --> 00:22:19,735 We found it necessary to lock up millions of our citizens. 416 00:22:19,771 --> 00:22:22,069 Sales of antidepressants skyrocketed 417 00:22:22,107 --> 00:22:24,701 as insurance and pharmaceutical company greed 418 00:22:24,743 --> 00:22:27,940 pushed the cost of healthcare up and up. 419 00:22:27,979 --> 00:22:31,506 All of this was great news for the stock market 420 00:22:31,550 --> 00:22:34,610 and for America's CEOs. 421 00:22:39,624 --> 00:22:41,319 Moore: Half of Flint was now receiving 422 00:22:41,360 --> 00:22:44,523 some form of government welfare. 423 00:22:44,563 --> 00:22:46,428 During the end of the Reagan years, 424 00:22:46,465 --> 00:22:49,696 I made my first movie about what had happened to the country 425 00:22:49,735 --> 00:22:53,193 and specifically to my hometown of Flint, Michigan, 426 00:22:53,238 --> 00:22:56,469 the birthplace of General Motors. 427 00:22:56,508 --> 00:23:00,376 GM was posting profits of over $4 billion 428 00:23:00,412 --> 00:23:02,403 while at the same time eliminating 429 00:23:02,447 --> 00:23:05,211 tens of thousands of jobs. 430 00:23:05,250 --> 00:23:09,186 I went to see GM's chief lobbyist in Flint, Mr. Tom Kay, 431 00:23:09,221 --> 00:23:12,418 to ask him why this was happening. 432 00:23:12,457 --> 00:23:15,449 General Motors wouldn't be doing anybody any service 433 00:23:15,494 --> 00:23:16,961 if it goes bankrupt. 434 00:23:16,995 --> 00:23:18,758 It has to do what it has to do 435 00:23:18,797 --> 00:23:21,994 in order to stay competitive in today's economic climate. 436 00:23:22,033 --> 00:23:26,094 Moore: Even if that means eliminating 18,000 jobs? 437 00:23:26,138 --> 00:23:29,107 Even if it means eliminating 20,000 jobs. 438 00:23:29,141 --> 00:23:31,439 - Or 30,000? - Whatever. 439 00:23:31,476 --> 00:23:36,038 - How about all the jobs here in Flint? - It could feasibly happen. 440 00:23:36,081 --> 00:23:38,641 Moore: And it did. 441 00:23:38,683 --> 00:23:41,481 Nearly all the jobs were eliminated 442 00:23:41,520 --> 00:23:44,284 and GM went bankrupt. 443 00:23:46,091 --> 00:23:49,720 Perhaps more distressing was the fact that the rest of America 444 00:23:49,761 --> 00:23:53,891 was now starting to resemble Flint, Michigan. 445 00:23:53,932 --> 00:23:58,096 But there were some cities that still took pride in their greatness. 446 00:23:58,136 --> 00:23:59,899 Cleveland 447 00:23:59,938 --> 00:24:02,429 Come on down to Cleveland Town, everyone 448 00:24:02,474 --> 00:24:05,375 Come and look at both of our buildings 449 00:24:05,410 --> 00:24:08,208 Here's the place where there used to be industry 450 00:24:08,246 --> 00:24:11,079 This train is carrying jobs out of Cleveland 451 00:24:11,116 --> 00:24:14,108 See the sun almost three times a year 452 00:24:14,152 --> 00:24:16,916 Thisguy has atleast two DUIs 453 00:24:16,955 --> 00:24:19,890 Our economy's based on LeBron James 454 00:24:19,925 --> 00:24:22,758 Buy a house for the price of a VCR 455 00:24:22,794 --> 00:24:25,490 Our main export is crippling depression 456 00:24:25,530 --> 00:24:28,499 We're so retarded that we think this is art 457 00:24:28,533 --> 00:24:33,163 It could be worse, though, at least we're not Detroit 458 00:24:33,205 --> 00:24:35,400 We,re noDetroit 459 00:24:35,440 --> 00:24:39,137 Moore: No, they're not Detroit. 460 00:24:39,177 --> 00:24:41,805 For 20 years I tried to warn GM and others 461 00:24:41,847 --> 00:24:45,510 that this day was coming, but to no avail. 462 00:24:45,550 --> 00:24:47,814 Maybe now they'd listen. 463 00:24:47,853 --> 00:24:50,287 So I went down to the headquarters of General Motors 464 00:24:50,322 --> 00:24:53,985 one last time to share some of my ideas. 465 00:24:54,025 --> 00:24:56,186 You don't have permission. You can't film here. 466 00:24:56,228 --> 00:24:57,217 Huh? 467 00:24:57,262 --> 00:24:59,059 You don't have permission from General Motors. 468 00:24:59,097 --> 00:25:01,691 - You can't film here. - I'm just going up to see the chairman. 469 00:25:01,733 --> 00:25:03,724 No, sir. No, sir. 470 00:25:03,768 --> 00:25:05,998 You know, I've been doing this for, like, 20 years. 471 00:25:06,037 --> 00:25:07,527 I understand, sir. 472 00:25:07,572 --> 00:25:11,064 And I have not been let into this building for 20 years, 473 00:25:11,109 --> 00:25:14,772 and I think it's about time someone just let me in 474 00:25:14,813 --> 00:25:16,440 and let me talk to them. 475 00:25:16,481 --> 00:25:18,346 I've got some good ideas. 476 00:25:18,383 --> 00:25:22,820 4-7 to 7-6 Bravo Area Alpha. 477 00:25:22,854 --> 00:25:25,254 Man: Go ahead. 478 00:25:25,290 --> 00:25:28,521 It's Michael Moore here to see the chairman. 479 00:25:30,829 --> 00:25:33,354 Repeat that. 480 00:25:33,398 --> 00:25:35,491 It's the filmmaker Mr. Michael Moore. 481 00:25:35,534 --> 00:25:37,525 He's here to see the chairman. 482 00:25:38,770 --> 00:25:40,362 - Gentlemen. - Yes. 483 00:25:40,405 --> 00:25:42,805 You need to get prior permission. You cannot film here, okay? 484 00:25:42,841 --> 00:25:45,571 But if I can't go in and get permission, what am I supposed to do? 485 00:25:45,610 --> 00:25:48,101 I guess they're right. Breaking up is hard to do. 486 00:25:48,146 --> 00:25:50,444 Stop that. Don't do that. Just go in the building. 487 00:25:50,482 --> 00:25:53,178 Moore: For 35 years, GM made more money 488 00:25:53,218 --> 00:25:55,311 than any other corporation. 489 00:25:55,353 --> 00:25:56,945 But eventually, Germany and Japan 490 00:25:56,988 --> 00:25:59,786 rebuilt their car industry and produced vehicles 491 00:25:59,824 --> 00:26:02,850 that were safer than ours, more fuel efficient 492 00:26:02,894 --> 00:26:05,055 and rarely, if ever, broke down. 493 00:26:08,166 --> 00:26:12,535 In Germany, unions help hire and fire the board of directors 494 00:26:12,571 --> 00:26:15,972 so the workers have a say in what's going on. 495 00:26:18,843 --> 00:26:20,834 You see, the people of Japan and Germany 496 00:26:21,112 --> 00:26:24,548 fight to make sure that even their conservative political leaders 497 00:26:24,583 --> 00:26:26,710 don't destroy their middle class. 498 00:26:31,056 --> 00:26:33,684 So where exactly are we right now? 499 00:26:33,725 --> 00:26:38,287 On the day that General Motors declared Chapter 1 1 bankruptcy, 500 00:26:38,330 --> 00:26:41,766 I went with my dad to visit the AC Spark Plug plant 501 00:26:41,800 --> 00:26:44,394 where he had worked for over 30 years. 502 00:26:44,436 --> 00:26:48,099 - So you worked actually right here. - You'd have to go-- 503 00:26:48,139 --> 00:26:51,939 they had a ramp that took you up over that, just beyond that... 504 00:26:51,977 --> 00:26:53,501 - Just beyond that space there? - Yeah. 505 00:26:53,545 --> 00:26:55,536 - And then the factory was all over there? - Yeah. 506 00:26:55,580 --> 00:26:57,980 Moore: The whole complex is, like, two miles long. 507 00:26:58,016 --> 00:27:00,348 I remember Mom bringing us kids in to pick you up. 508 00:27:00,385 --> 00:27:02,285 - 2:30 every day. - Yeah, uh-huh. 509 00:27:02,320 --> 00:27:05,346 You'd walk out of there, right over in there in fact. 510 00:27:05,390 --> 00:27:07,358 And we'd be waiting in the car for you 511 00:27:07,392 --> 00:27:09,883 and we'd see you come down the ramp. 512 00:27:09,928 --> 00:27:13,523 We got real excited every time we saw you. 513 00:27:13,565 --> 00:27:16,056 I was there 33 1/2 years. 514 00:27:16,101 --> 00:27:18,160 - 33 1/2 years? - Uh-huh. 515 00:27:18,203 --> 00:27:21,001 Moore: What's your best memory here, being here, working here? 516 00:27:21,039 --> 00:27:24,202 My best memory? I think the people. 517 00:27:24,242 --> 00:27:26,233 They were a really good bunch. 518 00:27:26,277 --> 00:27:29,144 - You liked the crowd you worked with? - Yeah. 519 00:27:29,180 --> 00:27:32,445 Frank Moore: A good place to work. I enjoyed it. 520 00:27:32,484 --> 00:27:35,351 But I'm sorry to see it go. 521 00:27:42,961 --> 00:27:45,691 Moore: Shortly before Christmas 2008, 522 00:27:45,730 --> 00:27:48,858 Republic Windows & Doors in Chicago, lllinois, 523 00:27:48,900 --> 00:27:52,131 abruptly fired its entire unionized workforce 524 00:27:52,170 --> 00:27:55,230 of over 250 people. 525 00:27:55,273 --> 00:27:58,731 They were given only three days' notice. 526 00:27:58,777 --> 00:28:00,836 Bank of America would no longer provide 527 00:28:00,879 --> 00:28:03,074 a line of credit to the company, 528 00:28:03,114 --> 00:28:07,210 and so the workers were not paid the money owed to them. 529 00:28:07,252 --> 00:28:10,050 Man #1 : My life revolves around this job. 530 00:28:10,088 --> 00:28:14,252 I live according to my obligation to my job, you know? 531 00:28:14,292 --> 00:28:18,353 And it's not just me, it's all of the workers here. 532 00:28:18,396 --> 00:28:21,194 We go above and beyond 533 00:28:21,232 --> 00:28:23,826 the call of duty for Republic. 534 00:28:23,868 --> 00:28:26,598 And attheend 535 00:28:26,638 --> 00:28:29,471 Republic cares nothing for us. 536 00:28:31,309 --> 00:28:34,278 Man #2: We found out that they're gonna shut the plant on Tuesday. 537 00:28:34,312 --> 00:28:37,543 We don't deserve what they're doing to us, you know? 538 00:28:37,582 --> 00:28:40,881 It really hurts because, like I said, 539 00:28:40,919 --> 00:28:42,887 this is my second family. 540 00:28:42,921 --> 00:28:45,515 So it was-- it really hurts. It really hurts. 541 00:28:45,557 --> 00:28:49,459 I'm gonna miss all of them, you know? 542 00:28:49,494 --> 00:28:52,463 I'm gonna miss them and I don't think 543 00:28:52,497 --> 00:28:54,829 anybody on this planet 544 00:28:54,866 --> 00:28:58,097 deserves what they've done to us. 545 00:29:05,577 --> 00:29:07,636 Moore: Scenes like this were being repeated 546 00:29:07,679 --> 00:29:11,740 all over the country, and no one seemed to mind. 547 00:29:11,783 --> 00:29:14,183 Zambezi, Zambezi 548 00:29:14,219 --> 00:29:17,347 - Zambezi, Zam. - Woman: Whoo! 549 00:29:17,388 --> 00:29:21,256 Moore: The president was enjoying his final year in office. 550 00:29:21,292 --> 00:29:23,590 But as the economy started to fall apart, 551 00:29:23,628 --> 00:29:27,758 he decided it was time to roll out the C word. 552 00:29:27,799 --> 00:29:30,825 Capitalism is the best system ever devised. 553 00:29:30,869 --> 00:29:32,268 Moore: Huh. Really? 554 00:29:32,303 --> 00:29:35,568 Voices from the left and right are equating the free enterprise system 555 00:29:35,607 --> 00:29:39,270 with greed and exploitation and failure. 556 00:29:39,310 --> 00:29:41,301 Moore: Hmm, greed, 557 00:29:41,346 --> 00:29:44,509 exploitation, failure? 558 00:29:44,549 --> 00:29:46,073 Go on, I'm listening. 559 00:29:46,117 --> 00:29:50,986 Capitalism offers people the freedom to choose 560 00:29:51,022 --> 00:29:53,582 where they work and what they do... 561 00:29:53,625 --> 00:29:56,321 Reporter: Pat Andrews has been looking for work. 562 00:29:56,361 --> 00:30:00,229 Every morning she scans the classifieds in vain. 563 00:30:00,265 --> 00:30:02,028 There isn't anything in here. 564 00:30:02,066 --> 00:30:05,001 I'm not gonna be a gentleman's club hired dancer either. 565 00:30:06,337 --> 00:30:09,829 ...the opportunity to buy or sell products they want. 566 00:30:09,874 --> 00:30:11,808 Reporter: Tom Rendon has avoided layoffs 567 00:30:11,843 --> 00:30:14,505 at his sign company in Stockton, California, 568 00:30:14,546 --> 00:30:16,446 all because this one word now makes up 569 00:30:16,481 --> 00:30:18,540 for half his business. 570 00:30:18,583 --> 00:30:22,144 If you seek social justice and human dignity, 571 00:30:22,187 --> 00:30:26,021 the free market system is the way to go. 572 00:30:26,057 --> 00:30:27,752 ( applause ) 573 00:30:28,893 --> 00:30:32,021 Moore: And for those seeking justice in Pennsylvania, 574 00:30:32,063 --> 00:30:35,965 free enterprise was definitely the way to go. 575 00:30:39,470 --> 00:30:41,131 Wilkes-Barre, Pennsylvania, 576 00:30:41,172 --> 00:30:43,333 has one of the highest rates in the state 577 00:30:43,374 --> 00:30:47,003 of young people locked up in the juvenile home. 578 00:30:47,045 --> 00:30:49,377 Perhaps it's because the good people here 579 00:30:49,414 --> 00:30:51,780 employ the practices of capitalism 580 00:30:51,816 --> 00:30:55,047 in dealing with their wayward youth. 581 00:30:55,086 --> 00:30:57,987 The county hired a private profit-making corporation 582 00:30:58,022 --> 00:31:02,152 with a sweet-sounding name, PA Child Care. 583 00:31:03,394 --> 00:31:06,329 It was owned and run by two businessmen, 584 00:31:06,364 --> 00:31:11,028 one of whom was Robert Powell, an attorney and entrepreneur. 585 00:31:11,069 --> 00:31:13,003 His good friend Judge Conahan 586 00:31:13,037 --> 00:31:15,403 closed down the public juvenile home 587 00:31:15,440 --> 00:31:17,374 and then got PA Child Care to build 588 00:31:17,408 --> 00:31:20,571 an $8 million privately-owned facility 589 00:31:20,612 --> 00:31:22,512 and charge it back to the county 590 00:31:22,547 --> 00:31:25,243 for a mere $58 million lease. 591 00:31:27,185 --> 00:31:30,814 Let's meet some of Wilkes-Barre's juvenile delinquents. 592 00:31:30,855 --> 00:31:33,153 Magee smoked pot at a high school party. 593 00:31:33,191 --> 00:31:36,422 I was very rebellious when I was at this age. 594 00:31:36,461 --> 00:31:39,259 Moore: Matt, he got into an argument at the dinner table. 595 00:31:39,297 --> 00:31:41,959 I threw a piece of meat, as in steak, 596 00:31:42,000 --> 00:31:44,468 cooked dinner, at my mother's boyfriend. 597 00:31:44,502 --> 00:31:46,868 Moore: Jamie got in a fight at a shopping mall 598 00:31:46,905 --> 00:31:48,167 with her best friend. 599 00:31:48,206 --> 00:31:51,642 I just figured, you know, we just weren't gonna be friends anymore. 600 00:31:51,676 --> 00:31:54,201 Moore: And Hillary made a MySpace page 601 00:31:54,245 --> 00:31:56,406 making fun of her assistant principal 602 00:31:56,447 --> 00:31:58,938 for being strict and having no sense of humor. 603 00:31:58,983 --> 00:32:02,419 And it said some pretty silly, like, 14-year-old-girl stuff. 604 00:32:02,453 --> 00:32:06,184 Moore: Her assistant principal called the police. 605 00:32:06,224 --> 00:32:10,524 They all appeared before kindly Judge Mark Ciavarella. 606 00:32:10,561 --> 00:32:13,291 These kids were about to get their first lesson 607 00:32:13,331 --> 00:32:15,299 in American capitalism: 608 00:32:15,333 --> 00:32:20,134 time is money, lots of money. 609 00:32:20,171 --> 00:32:23,470 I went in front of the court, in front of Mr. Ciavarella, 610 00:32:23,508 --> 00:32:25,305 and I wasn't even in front of him for four minutes. 611 00:32:25,343 --> 00:32:27,436 I was only in front of him for, like, two minutes. 612 00:32:27,478 --> 00:32:31,107 Hillary: The first thing that Judge Ciavarella said to me was, 613 00:32:31,149 --> 00:32:34,016 "What makes you think you can do this kind of crap?" 614 00:32:34,052 --> 00:32:36,486 I'm sure he knew in his mind when I walked in 615 00:32:36,521 --> 00:32:38,284 that he was locking this kid up no matter what. 616 00:32:38,323 --> 00:32:39,620 He didn't even look at me. 617 00:32:39,657 --> 00:32:42,626 Once I entered the courtroom, I didn't have any chance. 618 00:32:42,660 --> 00:32:44,924 There was about six kids who went in front of me. 619 00:32:44,963 --> 00:32:46,988 Every single kid who went in front of Ciavarella, 620 00:32:47,031 --> 00:32:50,398 for all different reasons-- some minor, some serious-- 621 00:32:50,435 --> 00:32:52,130 got sent away. 622 00:32:52,170 --> 00:32:56,072 Moore: Although Wilkes-Barre is located in the United States of America, 623 00:32:56,107 --> 00:33:00,237 here capitalism trumped democracy. 624 00:33:00,278 --> 00:33:03,509 Robert Powell, one of the owners of PA Child Care, 625 00:33:03,548 --> 00:33:07,951 cut a business deal with Judge Conahan and Judge Ciavarella. 626 00:33:07,986 --> 00:33:11,422 Judge Ciavarella then stepped up his conviction rates. 627 00:33:11,456 --> 00:33:13,185 Many of these kids were funneled 628 00:33:13,224 --> 00:33:17,991 into PA Child Care's for-profit juvenile facility. 629 00:33:18,029 --> 00:33:19,428 Andfor theirtroubles, 630 00:33:19,464 --> 00:33:23,662 the judges received over $2.6 million 631 00:33:23,701 --> 00:33:27,660 while the owners of PA Child Care received tens of millions 632 00:33:27,705 --> 00:33:30,299 of taxpayer dollars from the county. 633 00:33:30,341 --> 00:33:33,469 And where did Powell go to enjoy all that money? 634 00:33:33,511 --> 00:33:35,706 On his private plane 635 00:33:35,747 --> 00:33:38,807 and his yacht, the "Reel Justice." 636 00:33:40,485 --> 00:33:45,388 6,500 children were unjustly convicted. 637 00:33:45,423 --> 00:33:48,824 It was good business while it lasted. 638 00:33:49,961 --> 00:33:52,828 Reporter #1 : Two Luzerne County judges in big trouble with the law. 639 00:33:52,864 --> 00:33:53,853 They're going to jail. 640 00:33:53,898 --> 00:33:55,331 Reporter #2: Some kids were locked up 641 00:33:55,366 --> 00:33:59,632 even when probation officers objected to detention. 642 00:33:59,670 --> 00:34:02,662 In there you lose track of time and you lose track of the date. 643 00:34:02,707 --> 00:34:03,935 I was barely keeping track. 644 00:34:03,975 --> 00:34:07,103 It was supposed to be, like-- I believe it was, like, two months. 645 00:34:07,145 --> 00:34:09,545 And it went from two months to nine months. 646 00:34:09,580 --> 00:34:12,276 He said originally three to six months, 647 00:34:12,316 --> 00:34:16,309 but somehow I ended up being there 11 1/2 months 648 00:34:16,354 --> 00:34:19,187 and I never went back in front of the judge at all 649 00:34:19,223 --> 00:34:20,850 for him to give me extensions. 650 00:34:20,892 --> 00:34:22,689 Moore: Not only did PA Child Care 651 00:34:22,727 --> 00:34:25,560 pay off the judges to fill their cells, 652 00:34:25,596 --> 00:34:28,258 but their employees were the ones who got to decide 653 00:34:28,299 --> 00:34:31,700 when a child had enough rehabilitation. 654 00:34:31,736 --> 00:34:35,069 But that makes sense, because any time a governmental unit 655 00:34:35,106 --> 00:34:37,666 turns over to a profit-making corporation 656 00:34:37,708 --> 00:34:40,108 the duties it should be performing, 657 00:34:40,144 --> 00:34:42,169 what do you expect to happen? 658 00:34:42,213 --> 00:34:44,807 Matt: It makes me feel like an item that they just used 659 00:34:44,849 --> 00:34:47,249 to just get money and then tossed me aside. 660 00:34:47,285 --> 00:34:51,745 I'm just trying to work on my flying 661 00:34:51,789 --> 00:34:53,984 and just trying to prepare for my future 662 00:34:54,025 --> 00:34:57,256 so I can put this all behind me, finally be done with all this. 663 00:34:57,295 --> 00:34:59,763 During the whole trial I wasn't in control at all, 664 00:34:59,797 --> 00:35:02,231 but with flying it's only me. 665 00:35:02,266 --> 00:35:04,734 It's just that I just get to do everything by myself. 666 00:35:04,769 --> 00:35:06,794 I'm the only one on the control. 667 00:35:06,838 --> 00:35:08,669 Moore: Matt loves to fly 668 00:35:08,706 --> 00:35:11,971 and hopes to become a pilot someday. 669 00:35:12,009 --> 00:35:14,637 If he does, he'll get his second lesson 670 00:35:14,679 --> 00:35:17,273 in capitalism: 671 00:35:17,315 --> 00:35:20,341 that in America, sometimes you're better off 672 00:35:20,384 --> 00:35:22,820 working at Mickey D's. 673 00:35:22,820 --> 00:35:25,380 - ( applause, cheering ) - Remember Sully? 674 00:35:25,423 --> 00:35:26,754 Captain Sullenberger, 675 00:35:26,791 --> 00:35:29,817 who safely landed an airbus in the Hudson River 676 00:35:29,861 --> 00:35:32,887 - saving the lives of 150 passengers? - ( patriotic music playing ) 677 00:35:32,930 --> 00:35:35,797 - Man: A true American hero. - ( applause ) 678 00:35:38,936 --> 00:35:41,837 Moore: He met the mayor. He went to the State of the Union. 679 00:35:41,873 --> 00:35:44,569 Heck, he even went to the Super Bowl. 680 00:35:44,609 --> 00:35:46,839 Andthen hewenttoCongress. 681 00:35:46,878 --> 00:35:49,938 Sullenberger: Flying has been my lifelong passion. 682 00:35:49,981 --> 00:35:52,142 But while I love my profession, 683 00:35:52,183 --> 00:35:54,879 I do not like what has happened to it. 684 00:35:54,919 --> 00:35:57,012 - ( music halts ) - It is my personal experience 685 00:35:57,054 --> 00:36:00,251 that my decision to remain in the profession I love 686 00:36:00,291 --> 00:36:04,921 has come at a great financial cost to me and to my family. 687 00:36:04,962 --> 00:36:07,226 My pay has been cut 40%. 688 00:36:07,265 --> 00:36:10,928 My pension, like most airline pensions, has been terminated. 689 00:36:10,968 --> 00:36:14,495 So please do not think I exaggerate when I say that I do not know 690 00:36:14,539 --> 00:36:17,838 a single professional airline pilot who wants his or her children 691 00:36:17,875 --> 00:36:19,467 to follow in their footsteps. 692 00:36:19,510 --> 00:36:22,240 Moore: Whoa, you cleared the room with that one, Sully. 693 00:36:22,280 --> 00:36:24,578 I don't think the congressmen wanted to hear that stuff. 694 00:36:24,615 --> 00:36:27,550 - They like you as a hero. - The current experience... 695 00:36:27,585 --> 00:36:30,076 ( patriotic music over dialogue ) 696 00:36:42,133 --> 00:36:44,192 Moore: What was your starting pay as a pilot? 697 00:36:44,235 --> 00:36:46,533 I made $19,000 the first year. 698 00:36:46,571 --> 00:36:50,029 I was bumped up to about 22,000 or 23,000 the second year. 699 00:36:50,074 --> 00:36:52,702 Last year, gross pay 700 00:36:52,743 --> 00:36:55,177 I made $17,600. 701 00:36:55,213 --> 00:36:57,807 There's a joke in the airline when we get our wings pinned on us 702 00:36:57,848 --> 00:37:01,306 as new-hire airline pilots that the company just kinda says, 703 00:37:01,352 --> 00:37:04,116 "Hey, don't apply for food stamps in your uniform." 704 00:37:04,155 --> 00:37:07,022 Moore: I don't know about you, but I want the pilot 705 00:37:07,058 --> 00:37:10,858 who's got me 30,000 feet up in the air to be paid really well 706 00:37:10,895 --> 00:37:13,955 and not sitting up in the cockpit digging through the pilot's seat 707 00:37:13,998 --> 00:37:15,989 Iooking for loose change. 708 00:37:16,033 --> 00:37:18,001 There was a period of about four months 709 00:37:18,035 --> 00:37:20,799 where I was on food stamps. 710 00:37:20,838 --> 00:37:22,328 - You were on food stamps? - Yes. 711 00:37:22,373 --> 00:37:25,137 - And you were still flying the plane? - Yes. 712 00:37:25,176 --> 00:37:27,542 With my-- with my food stamp card. 713 00:37:27,578 --> 00:37:30,342 The lady I talked to in the food stamp office, 714 00:37:30,381 --> 00:37:33,316 when I told her I was a pilot, she didn't bat an eye, 715 00:37:33,351 --> 00:37:35,683 but she didn't-- I knew she didn't believe me. 716 00:37:35,720 --> 00:37:38,348 Moore: How have you gotten by? How have you been able to afford things? 717 00:37:38,389 --> 00:37:40,983 Relying on credit cards to buy the groceries at times 718 00:37:41,025 --> 00:37:42,754 - when I wasn't on food stamps. - Oh, really? 719 00:37:42,793 --> 00:37:45,091 I have about $10,000 in credit card debt 720 00:37:45,129 --> 00:37:47,120 just on the necessities, 721 00:37:47,164 --> 00:37:49,724 not on the big-screen TV and the stereo. 722 00:37:49,767 --> 00:37:52,964 Moore: You're using it to buy your groceries and get by. 723 00:37:53,004 --> 00:37:54,938 - Yes. - Do you have any student loan debt? 724 00:37:54,972 --> 00:37:56,667 - Yes. - How much? 725 00:37:56,707 --> 00:37:58,265 Mine is about 80,000. 726 00:37:58,309 --> 00:38:01,710 - I took out $100,000. - Moore: Student loans? 727 00:38:01,746 --> 00:38:04,613 And by the time I pay it back, at this rate, 728 00:38:04,649 --> 00:38:07,015 it'll probably cost me well over a half a million with interest 729 00:38:07,051 --> 00:38:09,611 and fees and penalties. 730 00:38:09,654 --> 00:38:11,884 It's something that I don't-- I don't like to spend a lot of time 731 00:38:11,922 --> 00:38:13,617 thinking about because it's abysmal. 732 00:38:13,658 --> 00:38:16,126 It's one way that I get down really quickly 733 00:38:16,160 --> 00:38:17,821 about my chosen career field 734 00:38:17,862 --> 00:38:20,296 is to think about how much I owe and how little I make. 735 00:38:20,331 --> 00:38:23,232 Moore: Have you had to work a second job to make ends meet? 736 00:38:23,267 --> 00:38:25,633 I walk dogs on the side, 737 00:38:25,670 --> 00:38:28,867 I distribute MonaVie Juice. 738 00:38:28,906 --> 00:38:32,171 I have known pilots to donate plasma 739 00:38:32,209 --> 00:38:34,040 for extra cash. 740 00:38:34,078 --> 00:38:36,945 - You mean they give blood? - They-- well-- 741 00:38:36,981 --> 00:38:39,609 So they can make extra money even though they're flying an airplane? 742 00:38:39,650 --> 00:38:41,641 Yeah. They donate their plasma. 743 00:38:41,686 --> 00:38:45,952 So they get the blood back, but you can get paid for plasma. 744 00:38:45,990 --> 00:38:47,287 - ( chuckles ) - Oh, I see. 745 00:38:47,325 --> 00:38:49,122 They suck the blood out of you, take the plasma... 746 00:38:49,160 --> 00:38:50,627 - Give you the blood back. -...give you the-- 747 00:38:50,661 --> 00:38:52,526 Oh, well then, not such a bad deal. 748 00:38:52,563 --> 00:38:56,055 The only reason people stay flying is because they love it. 749 00:38:56,100 --> 00:38:57,965 And managements take advantage of that. 750 00:38:58,002 --> 00:39:01,335 The airlines have managed to farm out 751 00:39:01,372 --> 00:39:05,775 a lot of the flying to commuters 752 00:39:05,810 --> 00:39:09,007 in an effort to basically bust the unions. 753 00:39:09,046 --> 00:39:11,139 You can't compete 754 00:39:11,182 --> 00:39:15,414 to a lower and lower level every year 755 00:39:15,453 --> 00:39:17,853 without skimping on safety somehow. 756 00:39:20,157 --> 00:39:24,958 Moore: At approximately 10:15 PM on February 12, 2009, 757 00:39:24,995 --> 00:39:27,725 Continental connection flight 3407 758 00:39:27,765 --> 00:39:30,359 began its descent to the airport in Buffalo. 759 00:39:30,401 --> 00:39:32,096 ( sirens wailing ) 760 00:39:32,136 --> 00:39:34,001 Man: Stand by, there's some ground communication, 761 00:39:34,038 --> 00:39:35,938 either state police or sheriff's department. 762 00:39:35,973 --> 00:39:37,668 We need to find out if anything is on the ground. 763 00:39:37,708 --> 00:39:40,108 This aircraft was five miles out, and all of a sudden 764 00:39:40,144 --> 00:39:41,975 we have no response to that aircraft. 765 00:39:42,012 --> 00:39:45,004 All I could tell you is there was an aircraft over the marker 766 00:39:45,049 --> 00:39:48,075 and we're not talking to them now. 767 00:39:48,119 --> 00:39:50,280 Moore: No one survived the crash 768 00:39:50,321 --> 00:39:53,256 and 50 people lost their lives. 769 00:39:54,792 --> 00:39:58,057 The media focused on the actions of the pilots. 770 00:39:58,095 --> 00:40:01,155 Reporter: Captain Marvin Renslow and First Officer Shaw 771 00:40:01,198 --> 00:40:03,428 were chatting about their careers. 772 00:40:03,467 --> 00:40:05,833 Moore: "Careers" is a euphemism 773 00:40:05,870 --> 00:40:08,270 for what the pilots were really talking about: 774 00:40:08,305 --> 00:40:12,435 how little they were paid and how overworked they were. 775 00:40:12,476 --> 00:40:14,569 There would be no discussion in the media 776 00:40:14,612 --> 00:40:16,876 about why we have an economic system 777 00:40:16,914 --> 00:40:20,543 that allows a pilot to be paid less than a manager at Taco Bell. 778 00:40:20,584 --> 00:40:21,983 Reporter: First Officer Shaw 779 00:40:22,019 --> 00:40:25,648 made between $16,000 and $20,000 a year 780 00:40:25,689 --> 00:40:29,250 and at one point worked a second job. 781 00:40:29,293 --> 00:40:31,727 Moore: Her second job had been waitressing 782 00:40:31,762 --> 00:40:33,753 at a coffee shop. 783 00:40:35,065 --> 00:40:38,592 How are these companies able to get away with this? 784 00:40:38,636 --> 00:40:41,332 ( laughs ) I guess that's the point of capitalism. 785 00:40:41,372 --> 00:40:44,136 It allows you to get away with anything, 786 00:40:44,175 --> 00:40:47,545 Iike making a profit off the death of an employee. 787 00:40:49,113 --> 00:40:51,479 Sweetie, I can open it. Let's try it with this. 788 00:40:51,515 --> 00:40:53,574 Moore: This is lrma Johnson. 789 00:40:53,617 --> 00:40:56,586 Irma's husband Dan worked in middle management 790 00:40:56,620 --> 00:40:58,781 at Amegy Bank in Houston, Texas. 791 00:40:58,823 --> 00:41:00,882 - Wanna try to spread it? - No. 792 00:41:00,925 --> 00:41:03,450 Moore: Dan recently died of cancer, 793 00:41:03,494 --> 00:41:07,726 Ieaving behind lrma and their two sons. 794 00:41:07,765 --> 00:41:10,325 But unbeknownst to lrma, Amegy had taken out 795 00:41:10,367 --> 00:41:14,326 a secret life insurance policy on Dan's life. 796 00:41:14,371 --> 00:41:18,603 The bank generously named itself as the beneficiary 797 00:41:18,642 --> 00:41:21,133 in the event of Dan's death. 798 00:41:21,178 --> 00:41:24,306 The insurance company then accidentally informed lrma 799 00:41:24,348 --> 00:41:28,478 that Amegy Bank had received a check for $1 1/2 million 800 00:41:28,519 --> 00:41:31,454 just weeks after Dan died. 801 00:41:31,489 --> 00:41:33,286 Thank you for helping. 802 00:41:33,324 --> 00:41:34,382 Johnson: They never told me. 803 00:41:34,425 --> 00:41:37,952 I wanted to find out, well, why did they purchase a policy for him? 804 00:41:37,995 --> 00:41:39,929 - Moore: You didn't know about it? - No. 805 00:41:39,964 --> 00:41:43,627 And they named themselves as the beneficiary. 806 00:41:43,667 --> 00:41:44,656 Yeah. 807 00:41:44,702 --> 00:41:46,863 Moore: So your husband's death 808 00:41:46,904 --> 00:41:49,873 made them $1.5 million richer? 809 00:41:49,907 --> 00:41:52,171 Mm-hmm. 810 00:41:52,209 --> 00:41:55,736 I know it's not right for them to try to profit 811 00:41:55,779 --> 00:41:58,213 from my husband's death. 812 00:41:58,249 --> 00:42:00,046 When I first realized what was happening, 813 00:42:00,084 --> 00:42:04,145 I was in disbelief. 814 00:42:04,188 --> 00:42:06,918 - It's hurtful. - I'm so sorry. 815 00:42:08,392 --> 00:42:09,825 Um... 816 00:42:12,329 --> 00:42:15,924 it's hurtful and I wanted answers. 817 00:42:15,966 --> 00:42:18,628 Moore: lrma contacted Michael D. Myers, 818 00:42:18,669 --> 00:42:21,160 a local attorney who had already been looking into 819 00:42:21,205 --> 00:42:24,504 these kind of corporate insurance policies on their employees. 820 00:42:25,910 --> 00:42:28,504 With the normal use of life insurance, where you're guarding against 821 00:42:28,546 --> 00:42:33,108 the loss of a loved one or a breadwinner of the family, 822 00:42:33,150 --> 00:42:37,553 you don't want that person to die. 823 00:42:37,588 --> 00:42:39,749 With these policies, the companies that buy these 824 00:42:39,790 --> 00:42:41,655 want the employees to die 825 00:42:41,692 --> 00:42:44,388 in accordance with the policy projections. 826 00:42:44,428 --> 00:42:48,330 You are more valuable dead to a company than alive. 827 00:42:49,633 --> 00:42:53,125 American Greetings, RR Donnelly & Sons, and Proctor & Gamble 828 00:42:53,170 --> 00:42:55,934 are all having problems with mortality. 829 00:42:55,973 --> 00:42:58,464 These four combined programs are running at 50% 830 00:42:58,509 --> 00:42:59,999 of expected mortality. 831 00:43:00,044 --> 00:43:03,502 These clients are acutely aware of this problem. 832 00:43:03,547 --> 00:43:06,243 Basically here the broker is complaining 833 00:43:06,283 --> 00:43:08,683 that not enough employees are dying. 834 00:43:08,719 --> 00:43:12,416 And therefore the investment returns are not matching the projections. 835 00:43:12,456 --> 00:43:14,890 The broker writes that NCC is running 836 00:43:14,925 --> 00:43:17,621 at 78% of expected mortality. 837 00:43:17,661 --> 00:43:21,529 Okay, so 78% of the people we expected to die died. 838 00:43:21,565 --> 00:43:24,796 But the problem with that is three of them were suicides. 839 00:43:24,835 --> 00:43:26,962 And you can't count on that every year. 840 00:43:27,004 --> 00:43:29,029 Moore: Can you think of any other situation 841 00:43:29,073 --> 00:43:33,407 were you'd actually want people to die? 842 00:43:33,444 --> 00:43:37,642 Combatants in war, I guess. 843 00:43:37,681 --> 00:43:41,481 Wow, when do you want people to die? 844 00:43:41,518 --> 00:43:43,145 I-I don't know. 845 00:43:43,187 --> 00:43:46,987 War situations, terrorism situations. 846 00:43:48,926 --> 00:43:51,622 Drug trials, perhaps. I don't know. 847 00:43:51,662 --> 00:43:54,256 I don't know. That's an odd question. 848 00:43:54,298 --> 00:43:57,529 Moore: I didn't understand how any of this could be legal. 849 00:43:57,568 --> 00:44:00,401 After all, there's a reason that there's a law 850 00:44:00,437 --> 00:44:04,840 prohibiting me from taking out a fire insurance policy on your house 851 00:44:04,875 --> 00:44:09,107 because I have a vested interest in your house burning down. 852 00:44:09,146 --> 00:44:12,274 Since Attorney Myers had been researching this for years, 853 00:44:12,316 --> 00:44:14,375 I asked him which companies were profiting 854 00:44:14,418 --> 00:44:16,215 from these insurance policies. 855 00:44:16,253 --> 00:44:17,686 I don't know, you don't know, 856 00:44:17,721 --> 00:44:20,349 because there's no place you can go and find out 857 00:44:20,391 --> 00:44:24,020 whether your company is a purchaser 858 00:44:24,061 --> 00:44:26,359 - of these types of products. - Which ones do you know? 859 00:44:26,397 --> 00:44:28,092 The ones that we know that have slipped out are 860 00:44:28,132 --> 00:44:30,157 Bank of America, Citibank, 861 00:44:30,200 --> 00:44:33,499 Wal-Mart, Winn-Dixie, Proctor & Gamble, 862 00:44:33,537 --> 00:44:35,664 McDonnell Douglas, Hershey, 863 00:44:35,706 --> 00:44:38,675 Nestl�, AT&T, Southwestern Bell, 864 00:44:38,709 --> 00:44:40,768 Ameritech, American Express-- 865 00:44:40,811 --> 00:44:42,870 - This is blue chip you're talking about. - Yeah. 866 00:44:42,913 --> 00:44:46,110 These aren't fly-by-night companies trying to do a scam here 867 00:44:46,150 --> 00:44:48,311 so they can collect a check if one of their employees dies. 868 00:44:48,352 --> 00:44:51,651 There are probably several million Americans 869 00:44:51,689 --> 00:44:55,523 who are covered by one of these policies or have been at some point. 870 00:44:55,559 --> 00:44:56,821 There's a lot of it out there. 871 00:44:56,860 --> 00:44:59,021 Moore: This is Paul Smith. 872 00:44:59,063 --> 00:45:02,624 He used to be what is known as a loyal employee. 873 00:45:02,666 --> 00:45:06,898 Smith: I worked for Wal-Mart for 18 years and I gave them 1 10%. 874 00:45:06,937 --> 00:45:08,700 I mean, I loved that company. 875 00:45:08,739 --> 00:45:10,229 And as it turned out, Wal-Mart took out 876 00:45:10,274 --> 00:45:13,334 over 350,000 life insurance policies 877 00:45:13,377 --> 00:45:15,504 on rank and file associates. 878 00:45:15,546 --> 00:45:16,740 These weren't executives. 879 00:45:16,780 --> 00:45:20,216 These were people like my wife, a cake decorator for 18 months. 880 00:45:20,250 --> 00:45:23,845 That's the type of people they were taking insurance policies out on. 881 00:45:23,887 --> 00:45:27,880 Moore: Paul's wife LaDonna left her job at the Wal-Mart bakery 882 00:45:27,925 --> 00:45:30,723 so she could be a stay-at-home mom for her two kids. 883 00:45:30,761 --> 00:45:33,924 Smith: She had asthma real real bad. 884 00:45:33,964 --> 00:45:35,898 She went into the emergency room one night 885 00:45:35,933 --> 00:45:37,901 and a nurse comes out and says, "Are you Mr. Smith?" 886 00:45:37,935 --> 00:45:39,425 And I said, "Yes." 887 00:45:39,470 --> 00:45:43,531 And she said, "We don't think your wife's gonna make it." 888 00:45:43,574 --> 00:45:45,542 Moore: LaDonna slipped into a coma 889 00:45:45,576 --> 00:45:47,908 from which she would never awaken. 890 00:45:47,945 --> 00:45:50,106 Her family rushed to the hospital, 891 00:45:50,147 --> 00:45:52,581 even though there was nothing they could do to help. 892 00:45:52,616 --> 00:45:55,176 There was a wall here and LaDonna's in the room 893 00:45:55,219 --> 00:45:56,652 on the other side of the wall. 894 00:45:56,687 --> 00:45:58,951 And Jessica kept saying, "Where is she?" 895 00:45:58,989 --> 00:46:01,617 And I said, "She's right on the other side of that wall." 896 00:46:01,658 --> 00:46:05,253 And Jessica said, "Can we cut a hole in the wall 897 00:46:05,295 --> 00:46:07,786 so that we can see her?" 898 00:46:07,831 --> 00:46:09,856 Andthat juststicks with me 899 00:46:09,900 --> 00:46:11,731 Do you remember that? 900 00:46:13,837 --> 00:46:18,206 Smith: We had to stay in there with her, and so we'd write letters to her. 901 00:46:18,242 --> 00:46:22,702 "My dear wife, I miss you more than any words can possibly say. 902 00:46:22,746 --> 00:46:24,304 You are my life. 903 00:46:24,348 --> 00:46:26,748 You always see beauty in the simplest things. 904 00:46:26,784 --> 00:46:31,221 I've always admired you for that. I wish I could have told you that more. 905 00:46:31,255 --> 00:46:33,519 I want you to come back to me soon. 906 00:46:33,557 --> 00:46:36,549 I still have a lot left to learn from you, baby doll. 907 00:46:36,593 --> 00:46:38,754 Your loving husband, Paul." 908 00:46:40,697 --> 00:46:43,131 You okay, Wesley? 909 00:46:44,535 --> 00:46:47,299 She was 26 years old. 910 00:46:47,337 --> 00:46:50,272 LaDonna: You're silly. You're silly. 911 00:46:50,307 --> 00:46:53,970 Myers: The younger a person is, the higher the benefit is 912 00:46:54,011 --> 00:46:56,809 because they're expected to live longer. 913 00:46:56,847 --> 00:46:59,042 Women are also expected to live longer than men. 914 00:46:59,082 --> 00:47:02,051 So the most valuable employee to the company 915 00:47:02,085 --> 00:47:04,986 if they're dead, is a young woman. 916 00:47:05,022 --> 00:47:06,614 Moore: LaDonna's death earned 917 00:47:06,657 --> 00:47:08,887 one of the richest corporations in the world 918 00:47:08,926 --> 00:47:11,486 an extra $81,000. 919 00:47:11,528 --> 00:47:14,861 I was faced with over $100,000 worth of medical bills 920 00:47:14,898 --> 00:47:18,231 and a $6,000 funeral 921 00:47:18,268 --> 00:47:21,726 and Wal-Mart didn't offer a penny to help with that. 922 00:47:21,772 --> 00:47:25,037 I did trust them. 923 00:47:25,075 --> 00:47:28,340 And never in a million years would I have ever thought 924 00:47:28,378 --> 00:47:31,313 that somewhere on a profit statement, 925 00:47:31,348 --> 00:47:34,340 "Dead associate, $81,000." 926 00:47:34,384 --> 00:47:38,377 Wal-Mart doesn't care about you. 927 00:47:38,422 --> 00:47:40,253 When someone passes away, 928 00:47:40,290 --> 00:47:43,088 they shouldn't get something out of it. 929 00:47:53,770 --> 00:47:56,261 Myers: The common denominator to each form of coverage 930 00:47:56,306 --> 00:47:58,331 is that when the employee dies, 931 00:47:58,375 --> 00:48:01,606 the employer gets paid the insurance benefits. 932 00:48:01,645 --> 00:48:04,808 They're often referred to as "dead peasant insurance." 933 00:48:04,848 --> 00:48:08,409 Moore: Dead peasants? Why'd they use such a creepy name? 934 00:48:08,452 --> 00:48:11,580 Myers: It's very creepy. I don't know what it means either. 935 00:48:11,622 --> 00:48:12,782 Dead is clear. 936 00:48:12,823 --> 00:48:15,553 That's the worker who's passed away, so they're dead. 937 00:48:15,592 --> 00:48:18,026 Peasant, I don't know why they chose that word. 938 00:48:18,061 --> 00:48:20,086 I don't know if it has some historical significance 939 00:48:20,130 --> 00:48:23,122 or that's just the way they view the relative value 940 00:48:23,166 --> 00:48:24,895 of the employees' lives. 941 00:48:24,935 --> 00:48:26,527 Dead peasants? 942 00:48:26,570 --> 00:48:28,697 Yeah, amongst themselves that's what they call it. 943 00:48:30,274 --> 00:48:34,506 It's insulting to refer to my husband like that. 944 00:48:34,544 --> 00:48:36,569 ( sniffles ) 945 00:48:41,652 --> 00:48:43,210 Moore: It turned out that Amegy Bank 946 00:48:43,253 --> 00:48:45,949 had a second dead peasant policy on Dan, 947 00:48:45,989 --> 00:48:49,982 bringing their total take to nearly $5 million. 948 00:48:52,829 --> 00:48:53,830 - Is capitalism a sin? - Father Dick Preston: Yes. 949 00:48:53,830 --> 00:48:55,764 - Is capitalism a sin? - Father Dick Preston: Yes. 950 00:48:55,799 --> 00:48:58,359 Capitalism for me and for many of us 951 00:48:58,402 --> 00:49:01,735 at this present moment is an evil. 952 00:49:01,772 --> 00:49:05,538 It's contrary to all that's good. It's contrary to the common good. 953 00:49:05,575 --> 00:49:07,805 It's contrary to compassion. 954 00:49:07,844 --> 00:49:10,813 It's contrary to all of the major religions. 955 00:49:10,847 --> 00:49:14,908 Capitalism is precisely what the holy books, 956 00:49:14,952 --> 00:49:19,616 our holy books in particular, remind us is unjust 957 00:49:19,656 --> 00:49:22,625 and in some form and fashion, 958 00:49:22,659 --> 00:49:27,426 God will come down and eradicate somehow. 959 00:49:27,464 --> 00:49:29,796 Moore: This was Father Dick Preston, 960 00:49:29,833 --> 00:49:33,166 the priest from Flint who married my wife and me. 961 00:49:33,203 --> 00:49:35,364 Preston: Capitalism is wrong, 962 00:49:35,405 --> 00:49:39,136 and therefore has to be eliminated. 963 00:49:39,176 --> 00:49:41,167 Moore: Eliminated? 964 00:49:41,211 --> 00:49:43,202 That might be a little harsh, 965 00:49:43,246 --> 00:49:45,237 so I decided to go and talk to the priest 966 00:49:45,282 --> 00:49:47,580 that married my sister and brother-in-law. 967 00:49:47,617 --> 00:49:49,915 I'm sure he would have a more balanced approach 968 00:49:49,953 --> 00:49:52,080 when it came to capitalism. 969 00:49:52,122 --> 00:49:56,058 It is immoral, it is obscene, it is outrageous. 970 00:49:56,093 --> 00:49:58,823 You know... 971 00:49:58,862 --> 00:50:01,194 it is really radical evil. 972 00:50:01,231 --> 00:50:03,529 It's radically evil. 973 00:50:03,567 --> 00:50:07,094 Moore: Wow, does their boss know that they're talking like this? 974 00:50:07,137 --> 00:50:10,163 I thought it best to go and check this out with the bishop. 975 00:50:10,207 --> 00:50:12,471 Bishop Thomas Gumbleton: The system doesn't seem to be 976 00:50:12,509 --> 00:50:16,275 providing for the well being of all the people. 977 00:50:16,313 --> 00:50:19,214 Andthat's what makes it 978 00:50:19,249 --> 00:50:21,717 almost in its very nature 979 00:50:21,752 --> 00:50:25,688 something contrary to Jesus who said, 980 00:50:25,722 --> 00:50:29,249 "Blessed are the poor, woe to the rich." 981 00:50:29,292 --> 00:50:32,489 That's right out of St. Luke's gospel. 982 00:50:32,529 --> 00:50:34,827 Moore: How have we put up with this system for so long? 983 00:50:34,865 --> 00:50:37,026 I mean, it's-- they talk about-- 984 00:50:37,067 --> 00:50:41,436 The system has built into it what we call propaganda. 985 00:50:41,471 --> 00:50:43,701 I'm in awe of propaganda-- 986 00:50:43,740 --> 00:50:46,709 the ability to convince people 987 00:50:46,743 --> 00:50:49,678 who are victimized by this very system 988 00:50:49,713 --> 00:50:52,682 to support the system and see it as good. 989 00:50:52,716 --> 00:50:56,117 We know that American capitalism is morally right 990 00:50:56,153 --> 00:50:58,314 because its chief elements-- 991 00:50:58,355 --> 00:51:01,415 private ownership, the profit motive 992 00:51:01,458 --> 00:51:04,484 and the competitive market-- are wholesome and good. 993 00:51:04,528 --> 00:51:07,827 They are compatible with God's laws and the teachings of the Bible. 994 00:51:08,832 --> 00:51:10,732 Moore: For as long as I can remember, 995 00:51:10,767 --> 00:51:14,362 I've been told that competition and profit are good things. 996 00:51:14,404 --> 00:51:16,497 ( distorted ) They are compatible with God's laws 997 00:51:16,540 --> 00:51:17,700 and the teachings of the Bible. 998 00:51:17,741 --> 00:51:21,074 Moore: And if increasing profits means locking up a few kids 999 00:51:21,111 --> 00:51:23,238 or cashing in on the death of an employee... 1000 00:51:23,280 --> 00:51:26,113 ( distorted ) Compatible with God's laws and the teachings of the Bible. 1001 00:51:26,149 --> 00:51:29,414 Moore:...it is morally right to provide for the stockholders. 1002 00:51:29,453 --> 00:51:31,785 ( distorted ) They are compatible with God's laws 1003 00:51:31,822 --> 00:51:33,050 and the teachings of the Bible. 1004 00:51:33,090 --> 00:51:36,321 Moore: Debt, eviction and exploitation. 1005 00:51:36,359 --> 00:51:39,817 ( distorted ) God's laws and the teachings of the Bible. 1006 00:51:39,863 --> 00:51:42,798 Moore: What were we really pledging our allegiance to? 1007 00:51:42,833 --> 00:51:45,768 ( distorted ) The profit motive. 1008 00:51:45,802 --> 00:51:48,498 Moore: And so all good Americans came to act as if they believed 1009 00:51:48,538 --> 00:51:51,701 our capitalist economic system was compatible 1010 00:51:51,741 --> 00:51:54,073 with the teachings of the Bible. 1011 00:51:56,947 --> 00:51:59,939 ( organ music playing ) 1012 00:52:02,352 --> 00:52:06,186 When I was a kid, I wanted to be a priest. 1013 00:52:06,223 --> 00:52:08,020 It wasn't because of the fancy getups 1014 00:52:08,058 --> 00:52:10,322 or the Knights of Columbus escorts, 1015 00:52:10,360 --> 00:52:13,659 or even the groovy nuns who were so good to me. 1016 00:52:14,698 --> 00:52:18,225 It was because of the priests who went on the march from Selma, 1017 00:52:18,268 --> 00:52:20,828 or tried to stop the war, 1018 00:52:20,871 --> 00:52:24,329 or devoted their lives to the poor. 1019 00:52:24,374 --> 00:52:28,333 They told me quite clearly what Jesus said, 1020 00:52:28,378 --> 00:52:32,747 that the first shall be last and the last shall be first:, 1021 00:52:32,782 --> 00:52:35,478 That the rich man will have a very hard time 1022 00:52:35,519 --> 00:52:37,578 getting into heaven; 1023 00:52:37,621 --> 00:52:41,455 That we will be judged by how we treat the least among us; 1024 00:52:41,491 --> 00:52:44,119 And that there are no people more important to God 1025 00:52:44,161 --> 00:52:46,686 than the poor. 1026 00:52:46,730 --> 00:52:49,255 Since that time, it seems that Jesus got hijacked 1027 00:52:49,299 --> 00:52:52,268 by a lot of people who believe that the son of God 1028 00:52:52,302 --> 00:52:56,671 was sent here to create heaven on earth for the well-to-do. 1029 00:52:56,706 --> 00:52:58,901 I must have missed that part of the Bible 1030 00:52:58,942 --> 00:53:02,241 where Jesus became a capitalist. 1031 00:53:06,550 --> 00:53:08,142 Man: Please tell me, master, 1032 00:53:08,185 --> 00:53:10,949 what must I do to have eternal life? 1033 00:53:10,987 --> 00:53:14,514 Go forth and maximize profits. 1034 00:53:16,359 --> 00:53:19,692 You say the Kingdom of Heaven is at hand, 1035 00:53:19,729 --> 00:53:21,253 but when exactly will it come? 1036 00:53:21,298 --> 00:53:25,496 When you deregulate the banking industry. 1037 00:53:25,535 --> 00:53:28,629 - ( voices overlapping ) - Help me. 1038 00:53:28,672 --> 00:53:31,197 I've been this way for 20 years. 1039 00:53:33,043 --> 00:53:36,535 I'm sorry, I cannot heal your pre-existing condition. 1040 00:53:38,548 --> 00:53:40,209 He'll have to pay out of pocket. 1041 00:53:43,620 --> 00:53:46,111 Moore: Somehow, I don't think Jesus came to earth 1042 00:53:46,156 --> 00:53:49,319 so he could ring the bell at the New York Stock Exchange. 1043 00:53:49,359 --> 00:53:51,350 And yet, from the very beginning, 1044 00:53:51,394 --> 00:53:54,227 the rich have claimed him for their own. 1045 00:53:54,264 --> 00:53:58,064 When I'm on Wall Street and I realize 1046 00:53:58,101 --> 00:54:02,231 that that's the very nerve center of American capitalism, 1047 00:54:02,272 --> 00:54:05,935 and I realize what capitalism has done 1048 00:54:05,976 --> 00:54:09,605 for working people in America, to me that's a holy place. 1049 00:54:09,646 --> 00:54:10,806 Let me add to it. 1050 00:54:10,847 --> 00:54:14,874 Over the whole duration of the lraq war and the terror war, 1051 00:54:14,918 --> 00:54:18,752 you look at the world's stock markets and you look at the world economy, 1052 00:54:18,788 --> 00:54:22,747 and despite these horrible pockets of unrest and killing and murdering 1053 00:54:22,792 --> 00:54:25,693 that we've been describing, it's never been better. 1054 00:54:25,729 --> 00:54:27,663 The global economy has never been better 1055 00:54:27,697 --> 00:54:30,325 and the global stock markets have never been better, Jimmy. 1056 00:54:30,367 --> 00:54:32,392 It is either a God-given miracle 1057 00:54:32,435 --> 00:54:34,403 or it has something to do with the victories 1058 00:54:34,437 --> 00:54:36,803 of the spreading world of capitalism or both. 1059 00:54:36,840 --> 00:54:38,774 Moore: They think Wall Street's a holy place. 1060 00:54:38,808 --> 00:54:41,743 What do you think Jesus would think of capitalism? 1061 00:54:41,778 --> 00:54:46,147 I think he would simply refuse to-- 1062 00:54:46,182 --> 00:54:49,419 to be part of it. 1063 00:54:50,587 --> 00:54:53,454 Moore: Jesus would refuse to be part of it, 1064 00:54:53,490 --> 00:54:55,458 but he probably had a special place up there 1065 00:54:55,492 --> 00:54:58,427 for whoever leaked a secret Citibank memo 1066 00:54:58,461 --> 00:55:01,828 about their plan to rule the world. 1067 00:55:01,865 --> 00:55:03,856 Back in 2005 and 2006, 1068 00:55:03,900 --> 00:55:06,232 Citigroup wrote three confidential memos 1069 00:55:06,269 --> 00:55:10,729 to their wealthiest investors about how things were going. 1070 00:55:10,774 --> 00:55:13,174 They reached the conclusion that the United States 1071 00:55:13,209 --> 00:55:15,439 was no longer really a democracy, 1072 00:55:15,478 --> 00:55:18,242 but had become a plutonomy-- 1073 00:55:18,281 --> 00:55:21,375 a society controlled exclusively by and for the benefit 1074 00:55:21,418 --> 00:55:24,512 of the top 1% of the population 1075 00:55:24,554 --> 00:55:26,647 who now had more financial wealth 1076 00:55:26,690 --> 00:55:30,319 than the bottom 95% combined. 1077 00:55:30,360 --> 00:55:33,591 The memo gloated about the growing gap between rich and poor 1078 00:55:33,630 --> 00:55:37,088 and how they were now the new aristocracy 1079 00:55:37,133 --> 00:55:41,069 and that there was no end in sight for the gravy train they were on. 1080 00:55:41,104 --> 00:55:44,665 There was, though, one problem. 1081 00:55:44,708 --> 00:55:46,232 According toCitigroup, 1082 00:55:46,276 --> 00:55:48,870 the most potent and short-term threat 1083 00:55:48,912 --> 00:55:50,709 would be societies demanding 1084 00:55:50,747 --> 00:55:53,341 a more equitable share of the wealth. 1085 00:55:53,383 --> 00:55:57,752 In other words, the peasants might revolt. 1086 00:55:57,787 --> 00:56:00,153 Citigroup lamented that the non-rich 1087 00:56:00,190 --> 00:56:02,658 might not have much economic power, 1088 00:56:02,692 --> 00:56:06,219 but they do have equal voting power with the rich. 1089 00:56:06,262 --> 00:56:09,231 One person, one vote. 1090 00:56:09,265 --> 00:56:11,927 And that's what really scares them-- 1091 00:56:11,968 --> 00:56:14,402 that we can still vote. 1092 00:56:14,437 --> 00:56:17,736 In fact, we have 99% of the votes 1093 00:56:17,774 --> 00:56:20,572 and they only have 1%. 1094 00:56:23,646 --> 00:56:27,605 So why do the 99% put up with this? 1095 00:56:27,650 --> 00:56:31,086 According to Citigroup, it's because the majority of the electorate 1096 00:56:31,121 --> 00:56:33,612 believe that someday they will have a chance 1097 00:56:33,656 --> 00:56:36,181 of becoming well-to-do themselves 1098 00:56:36,226 --> 00:56:39,389 if they just keep trying hard enough. 1099 00:56:41,731 --> 00:56:44,029 The wealthy were pleased that so many people 1100 00:56:44,067 --> 00:56:46,900 had bought in to the American Dream 1101 00:56:46,936 --> 00:56:49,996 while they, the rich, had no intention 1102 00:56:50,039 --> 00:56:52,940 of ever sharing it with anyone. 1103 00:56:52,976 --> 00:56:56,275 I think capitalism is a lot more important than democracy. 1104 00:56:56,312 --> 00:56:58,678 I'm not even a big believer in democracy. 1105 00:56:58,715 --> 00:57:02,310 I always say that democracy is-- can be two wolves and a sheep 1106 00:57:02,352 --> 00:57:04,013 deciding on what to have for dinner. 1107 00:57:04,053 --> 00:57:07,284 Moore: This is Stephen Moore-- no relation-- 1108 00:57:07,323 --> 00:57:09,757 a columnist and an editorial board member 1109 00:57:09,793 --> 00:57:11,556 of "The Wall Street Journal," 1110 00:57:11,594 --> 00:57:15,030 the daily bible of corporate America. 1111 00:57:15,064 --> 00:57:18,124 Look, I'm in favor of people having the right to vote 1112 00:57:18,168 --> 00:57:20,636 and things like that, but you know there are a lot of countries 1113 00:57:20,670 --> 00:57:24,538 that have the right to vote that are still poor. 1114 00:57:24,574 --> 00:57:27,941 Democracy doesn't always lead to a good economy 1115 00:57:27,977 --> 00:57:29,911 or even a good political system. 1116 00:57:29,946 --> 00:57:33,313 With capitalism, you are free to do what you want, 1117 00:57:33,349 --> 00:57:35,408 to make whatever you want out of yourself. 1118 00:57:35,452 --> 00:57:36,976 It doesn't mean you're gonna succeed. 1119 00:57:37,020 --> 00:57:41,423 Remember, the US Constitution does not guarantee happiness. 1120 00:57:41,458 --> 00:57:44,086 Moore: Ah, the Constitution. 1121 00:57:44,127 --> 00:57:47,893 All my life I've heard that America is a capitalist country. 1122 00:57:47,931 --> 00:57:52,197 So I went to see the original Constitution and check out if it was true. 1123 00:57:52,235 --> 00:57:55,671 I'm trying to see where it sets up our economic system, 1124 00:57:55,705 --> 00:57:58,936 Iike where it says we have a capitalist economy. 1125 00:57:58,975 --> 00:58:01,136 Guard: The jurisdiction. 1126 00:58:01,177 --> 00:58:02,974 - Judicial part of the-- - Down there? 1127 00:58:03,012 --> 00:58:06,812 Moore: There was no mention of free market or free enterprise 1128 00:58:06,850 --> 00:58:09,444 or capitalism anywhere. 1129 00:58:10,487 --> 00:58:13,752 In fact, all I saw was "We the people," 1130 00:58:13,790 --> 00:58:16,384 something about "a more perfect union," 1131 00:58:16,426 --> 00:58:19,793 and "promoting the general welfare." 1132 00:58:19,829 --> 00:58:24,323 Welfare, union, we? 1133 00:58:24,367 --> 00:58:26,767 That sounded like that other -ism. 1134 00:58:26,803 --> 00:58:30,239 But no, that's democracy. 1135 00:58:30,273 --> 00:58:31,975 And I began to wonder, "What would it be like 1136 00:58:31,975 --> 00:58:32,999 And I began to wonder, "What would it be like 1137 00:58:33,042 --> 00:58:36,375 if the workplace was a democracy?" 1138 00:58:36,412 --> 00:58:39,745 There's always been a big separation between how the country is run 1139 00:58:39,782 --> 00:58:43,013 and how businesses are supposed to run. 1140 00:58:43,052 --> 00:58:44,246 Moore: It's true. 1141 00:58:44,287 --> 00:58:46,152 There seems to be a disconnect 1142 00:58:46,189 --> 00:58:48,521 between our professed love of democracy 1143 00:58:48,558 --> 00:58:51,584 and how we're so willing to accept a dictatorship 1144 00:58:51,628 --> 00:58:54,495 every day we show up to work. 1145 00:58:54,531 --> 00:58:58,331 It's not that way at lsthmus Engineering in Wisconsin. 1146 00:58:58,368 --> 00:59:02,202 They design and build robotic machines for industry. 1147 00:59:02,238 --> 00:59:05,401 It's a $15 million-a-year business. 1148 00:59:05,441 --> 00:59:07,238 Man: All of the workers 1149 00:59:07,277 --> 00:59:10,610 are the owners of the business. 1150 00:59:10,647 --> 00:59:14,208 Moore: He's not talking about some bullshit stock option. 1151 00:59:14,250 --> 00:59:17,651 He means they're the true owners. 1152 00:59:17,687 --> 00:59:20,520 Man: And it's a democratically-run operation where every member 1153 00:59:20,557 --> 00:59:23,526 has one vote and an equal say. 1154 00:59:23,560 --> 00:59:25,824 - All in favor? - All in favor? 1155 00:59:25,862 --> 00:59:28,888 Man: It takes the money out of the equation. 1156 00:59:28,932 --> 00:59:30,957 Moore: By taking the money out of the equation 1157 00:59:31,000 --> 00:59:33,230 so that they can call the shots, 1158 00:59:33,269 --> 00:59:35,601 they end up making more money. 1159 00:59:35,638 --> 00:59:38,266 Cool, huh? 1160 00:59:41,945 --> 00:59:44,743 And how patriotic that they want to extend 1161 00:59:44,781 --> 00:59:48,615 their love of American democracy to their job. 1162 00:59:54,924 --> 00:59:56,858 Just imagine if the place where you worked 1163 00:59:56,893 --> 01:00:00,056 was run by you and your fellow workers. 1164 01:00:00,096 --> 01:00:01,961 You probably wouldn't lay off your coworkers 1165 01:00:01,998 --> 01:00:04,933 to increase the value of your stock, would you? 1166 01:00:04,968 --> 01:00:06,435 Or give yourself a pay raise 1167 01:00:06,469 --> 01:00:09,336 while making your coworkers take a pay cut. 1168 01:00:09,372 --> 01:00:11,237 Man: We don't really do that here. 1169 01:00:11,274 --> 01:00:14,869 You really can't because everyone else would be looking at you 1170 01:00:14,911 --> 01:00:17,471 saying, "Why is this guy so fricking greedy?" 1171 01:00:17,513 --> 01:00:20,107 You know, it would be too obvious. 1172 01:00:20,149 --> 01:00:22,014 The bottom line is you've got plenty of people 1173 01:00:22,051 --> 01:00:23,848 who roll up their sleeves every day and go to work. 1174 01:00:23,886 --> 01:00:25,786 But if there's someone way up there on the chain 1175 01:00:25,822 --> 01:00:28,848 that collects all the extra money, that's not fair. 1176 01:00:28,891 --> 01:00:32,657 Moore: Huh, fairness in the workplace-- 1177 01:00:32,695 --> 01:00:35,027 what a novel idea. 1178 01:00:36,466 --> 01:00:39,697 Out in California, there's a bread factory 1179 01:00:39,736 --> 01:00:43,297 where workers make thousands of loaves of bread every day 1180 01:00:43,339 --> 01:00:45,330 Man: The more hours you work towards 1181 01:00:45,375 --> 01:00:46,672 the benefit of the co-op, 1182 01:00:46,709 --> 01:00:49,576 the more you share in the profits. 1183 01:00:49,612 --> 01:00:51,807 Man #2: The workers are happy here. 1184 01:00:51,848 --> 01:00:54,316 No big ls, little yous. Everyone's the same. 1185 01:00:54,350 --> 01:00:57,842 Me as the CEO, I get the same share 1186 01:00:57,887 --> 01:00:59,912 that anybody else does. 1187 01:00:59,956 --> 01:01:01,753 And that has proven 1188 01:01:01,791 --> 01:01:04,123 to be very lucrative for us as workers. 1189 01:01:05,962 --> 01:01:10,524 Moore: Assembly-line workers here earn over $65,000 a year, 1190 01:01:10,566 --> 01:01:12,659 more than three times the pay 1191 01:01:12,702 --> 01:01:15,262 for a starting pilot at American Eagle. 1192 01:01:15,304 --> 01:01:18,102 Man: I'm just hoping that people take notice 1193 01:01:18,141 --> 01:01:20,302 of this type of organizational activity 1194 01:01:20,343 --> 01:01:23,744 and start considering it as an alternative. 1195 01:01:23,780 --> 01:01:25,111 Why do you want to get rich? 1196 01:01:25,148 --> 01:01:27,082 How many cars do you really need in life? 1197 01:01:27,116 --> 01:01:31,712 Moore: Clearly, he's not a car guy, but that's okay. 1198 01:01:31,754 --> 01:01:35,281 His bread factory and hundreds of other worker-owned businesses 1199 01:01:35,324 --> 01:01:38,919 are proof that people aren't always motivated by profit. 1200 01:01:38,961 --> 01:01:41,759 ( fanfare ) 1201 01:01:41,798 --> 01:01:44,426 Announcer: An historic victory over a dread disease. 1202 01:01:44,467 --> 01:01:47,834 Moore: lnstead of using his genius to make a ton of money, 1203 01:01:47,870 --> 01:01:51,135 Dr. Jonas Salk spent all of his time 1204 01:01:51,174 --> 01:01:53,665 putting monkey kidneys in a blender 1205 01:01:53,710 --> 01:01:55,769 trying to find a cure for polio. 1206 01:01:55,812 --> 01:02:00,681 And when he did, he decided to give it away for free. 1207 01:02:00,717 --> 01:02:03,777 This man could have been rich many times over 1208 01:02:03,820 --> 01:02:07,153 had he sold his vaccine to a pharmaceutical company. 1209 01:02:07,190 --> 01:02:09,624 But he thought his talents should be used 1210 01:02:09,659 --> 01:02:10,853 for the greater good. 1211 01:02:10,893 --> 01:02:13,828 And the decent salary he made as a doctor 1212 01:02:13,863 --> 01:02:16,263 and a research professor was enough for him to live 1213 01:02:16,299 --> 01:02:18,358 a comfortable life. 1214 01:02:18,401 --> 01:02:20,801 Who owns the patent on this vaccine? 1215 01:02:20,837 --> 01:02:22,805 Well, the people, I would say. 1216 01:02:22,839 --> 01:02:26,400 There is no patent. Would you patent the sun? 1217 01:02:26,442 --> 01:02:30,276 Moore: Yes, we've come a long way since the days of Dr. Salk. 1218 01:02:30,313 --> 01:02:34,443 Because today our best minds are used for something else. 1219 01:02:34,484 --> 01:02:35,251 Where do we send our top math and science people? 1220 01:02:35,251 --> 01:02:38,516 Where do we send our top math and science people? 1221 01:02:38,554 --> 01:02:39,885 Into finance. 1222 01:02:39,922 --> 01:02:42,390 They don't go into science in America. 1223 01:02:42,425 --> 01:02:45,121 They go to Wall Street. 1224 01:02:45,161 --> 01:02:48,221 Moore: Today's students, unlike in Dr. Salk's time, 1225 01:02:48,264 --> 01:02:50,824 can graduate from college with a student loan debt 1226 01:02:50,867 --> 01:02:53,893 of up to $100,000 or more. 1227 01:02:53,936 --> 01:02:56,234 These students are then beholden to the banks 1228 01:02:56,272 --> 01:02:59,241 for the next 20 years. 1229 01:02:59,275 --> 01:03:02,108 And the best way for them to pay off these banks 1230 01:03:02,145 --> 01:03:04,079 is to go to work for them 1231 01:03:04,113 --> 01:03:06,741 instead of working for the common good. 1232 01:03:06,783 --> 01:03:11,152 Black: We've taken people that could be enormously productive-- 1233 01:03:11,187 --> 01:03:12,814 just what we're short of in America-- 1234 01:03:12,855 --> 01:03:15,881 and we take them and we put them in an activity 1235 01:03:15,925 --> 01:03:17,916 that isn't simply less productive, 1236 01:03:17,960 --> 01:03:20,758 but where they're actually destructive; 1237 01:03:20,797 --> 01:03:24,597 where actually every day they work, they make the world worse. 1238 01:03:24,634 --> 01:03:27,694 Moore: So what exactly were the top students from Harvard 1239 01:03:27,737 --> 01:03:29,728 and other schools working on these days? 1240 01:03:29,772 --> 01:03:31,797 Derivatives... derivatives... derivatives... derivatives... 1241 01:03:31,841 --> 01:03:34,241 Credit default swaps. 1242 01:03:34,277 --> 01:03:36,302 I can't make any sense out of this. 1243 01:03:36,345 --> 01:03:38,108 I might as well quit. 1244 01:03:38,147 --> 01:03:40,047 Moore: That's exactly how I felt 1245 01:03:40,087 --> 01:03:42,248 when I started hearing these new terms. 1246 01:03:42,290 --> 01:03:46,420 So I went down to the New York Stock Exchange to get some answers. 1247 01:03:46,460 --> 01:03:48,189 Sir, can you explain derivatives to me? 1248 01:03:48,229 --> 01:03:50,459 Can anybody explain derivatives or credit default swaps? 1249 01:03:50,498 --> 01:03:51,726 Can someone explain to me what these are? 1250 01:03:51,766 --> 01:03:53,996 Sir, can you tell me what a credit default swap is? 1251 01:03:54,035 --> 01:03:55,559 Can you explain a derivative to me? 1252 01:03:55,603 --> 01:03:57,070 Can you tell me what a derivative is? 1253 01:03:57,104 --> 01:03:59,368 - Nobody'll talk to me. - I'm just a blue-collar guy. 1254 01:03:59,407 --> 01:04:01,068 I can see that. Hey. 1255 01:04:01,108 --> 01:04:03,633 - I'm looking for some advice. - Yeah, good. 1256 01:04:03,678 --> 01:04:06,806 You guys got any advice for me here? 1257 01:04:06,848 --> 01:04:08,839 A derivative? Credit default swap? 1258 01:04:08,883 --> 01:04:10,350 ( sighs ) 1259 01:04:10,384 --> 01:04:12,909 Moore: I did find one guy on Wall Street 1260 01:04:12,954 --> 01:04:14,785 who wasn't a film critic. 1261 01:04:14,822 --> 01:04:18,189 Marcus Haupt is an lvy League educated engineer 1262 01:04:18,226 --> 01:04:20,854 who was a vice president of Lehman Brothers 1263 01:04:20,895 --> 01:04:23,386 and spent 15 years on Wall Street 1264 01:04:23,431 --> 01:04:26,457 creating what they call complex financial instruments. 1265 01:04:26,500 --> 01:04:27,990 What is a derivative? 1266 01:04:28,035 --> 01:04:30,128 A derivative is a secondary bet 1267 01:04:30,171 --> 01:04:31,968 on an underlying product. 1268 01:04:32,006 --> 01:04:34,031 So you may have a stock and you have an option on that stock. 1269 01:04:34,075 --> 01:04:37,306 And that option on that stock allows you the privilege 1270 01:04:37,345 --> 01:04:39,711 but not the obligation to buy or sell. 1271 01:04:39,747 --> 01:04:42,773 How should we put this? You are allowed to make a decision 1272 01:04:42,817 --> 01:04:45,308 of whether or not you want to ultimately take that exposure. 1273 01:04:45,353 --> 01:04:47,913 Let me explain it another way. The derivative's price 1274 01:04:47,955 --> 01:04:49,946 is based on the price of something else. 1275 01:04:49,991 --> 01:04:51,925 It's kind of like a second-degree equation. 1276 01:04:51,959 --> 01:04:54,689 If you think of, let's say... 1277 01:04:54,729 --> 01:04:58,165 um, maybe I should go back. 1278 01:04:58,199 --> 01:05:00,360 Let me start this over again. Let's go back here. 1279 01:05:01,435 --> 01:05:04,029 Moore: I was lost. 1280 01:05:04,071 --> 01:05:06,767 Maybe there's someone at Harvard University 1281 01:05:06,807 --> 01:05:08,434 who could explain it to me. 1282 01:05:08,476 --> 01:05:10,910 Yeah, the-- the-- the-- 1283 01:05:10,945 --> 01:05:13,880 the-- the-- the-- the buyer-- 1284 01:05:13,915 --> 01:05:17,078 so the seller holds the loan and it might default. 1285 01:05:17,118 --> 01:05:20,315 And they sell off-- 1286 01:05:20,354 --> 01:05:23,118 somebody-- somebody else-- 1287 01:05:23,157 --> 01:05:26,126 Sorry, let me just back up. 1288 01:05:26,160 --> 01:05:29,857 I apologize. These are pretty exotic. 1289 01:05:29,897 --> 01:05:31,922 Moore: Derivatives are nothing more 1290 01:05:31,966 --> 01:05:34,196 than complicated betting schemes. 1291 01:05:34,235 --> 01:05:37,170 Here's what the math equation of one looks like. 1292 01:05:37,204 --> 01:05:39,035 Can't figure it out? 1293 01:05:39,073 --> 01:05:41,564 That's okay. You're not supposed to. 1294 01:05:41,609 --> 01:05:43,873 They've made them purposely confusing 1295 01:05:43,911 --> 01:05:45,970 so they can get away with murder. 1296 01:05:46,013 --> 01:05:47,981 Let's say you're a lawyer and you're coming in 1297 01:05:48,015 --> 01:05:49,846 and you're from the government and you're trying to evaluate 1298 01:05:49,884 --> 01:05:52,375 if these things violate the tax code or not. 1299 01:05:52,420 --> 01:05:54,320 If you can figure out what they're doing, 1300 01:05:54,355 --> 01:05:56,687 most likely that Wall Street firm will offer you a job. 1301 01:05:56,724 --> 01:06:00,251 Could I go to Wall Street and just ask them 1302 01:06:00,294 --> 01:06:02,387 to set up a derivative on anything? 1303 01:06:02,430 --> 01:06:03,829 Yes. 1304 01:06:03,864 --> 01:06:05,331 Believe me, if it's out there 1305 01:06:05,366 --> 01:06:06,958 there's a derivative on it. 1306 01:06:07,001 --> 01:06:09,492 Moore: So this is what Wall Street has come to-- 1307 01:06:09,537 --> 01:06:12,005 an insane casino. 1308 01:06:12,039 --> 01:06:14,530 We've allowed them to bet on anything, 1309 01:06:14,575 --> 01:06:17,812 including our family home. 1310 01:06:23,918 --> 01:06:26,887 Reporter #1 :...the most powerful central banker of the 20th century. 1311 01:06:26,921 --> 01:06:29,185 Reporter #2: Greenspan has become an economic icon. 1312 01:06:29,223 --> 01:06:32,454 Reporter #3: Alan Greenspan says the economy is hunky-dory. 1313 01:06:32,493 --> 01:06:34,893 Reporter #4: Greenspan gone wild. It's like "Girls Gone Wild." 1314 01:06:34,929 --> 01:06:37,796 What do Mick Jagger and Alan Greenspan have in common? 1315 01:06:37,832 --> 01:06:41,097 Alan Greenspan, who at that moment in time 1316 01:06:41,135 --> 01:06:43,330 was surely thought to be the smartest man 1317 01:06:43,371 --> 01:06:45,134 who had walked the face of the earth, 1318 01:06:45,172 --> 01:06:48,300 he starts using a phrase, "tap your home equity," 1319 01:06:48,342 --> 01:06:51,175 --that Americans can tap their home equity, 1320 01:06:51,212 --> 01:06:53,442 which is just Alan Greenspan-speak 1321 01:06:53,481 --> 01:06:56,416 for "borrow against your home." 1322 01:06:56,450 --> 01:06:58,645 And if you can't repay it you'll lose your house. 1323 01:06:58,686 --> 01:07:02,850 It actually started by talking mostly older Americans, 1324 01:07:02,890 --> 01:07:04,414 people who already had homes, 1325 01:07:04,458 --> 01:07:07,325 into refinancing their homes 1326 01:07:07,361 --> 01:07:09,124 to get them out of houses. 1327 01:07:09,163 --> 01:07:12,997 Moore: Yes, get senior citizens out of their houses. 1328 01:07:13,034 --> 01:07:16,026 The scam to swindle people out of the homes 1329 01:07:16,070 --> 01:07:19,062 they already owned was masterful. 1330 01:07:19,106 --> 01:07:21,631 Here's how it worked. 1331 01:07:21,675 --> 01:07:25,338 First, tell these homeowners that they own a bank. 1332 01:07:25,379 --> 01:07:28,348 And that bank is your home. 1333 01:07:28,382 --> 01:07:32,113 So if your home is worth $250,000, 1334 01:07:32,153 --> 01:07:35,213 that makes you a quarter millionaire. 1335 01:07:35,256 --> 01:07:37,622 You're sitting on a goldmine. 1336 01:07:37,658 --> 01:07:40,559 You own your own bank. 1337 01:07:40,594 --> 01:07:42,892 The bank of you. 1338 01:07:42,930 --> 01:07:46,297 And you can use your bank to get more money. 1339 01:07:46,333 --> 01:07:47,800 Just refinance. 1340 01:07:47,835 --> 01:07:49,530 Everyone's doing it. 1341 01:07:49,570 --> 01:07:52,869 Of course hidden in the dozens or hundreds of pages of fine print 1342 01:07:52,907 --> 01:07:55,171 are tricky clauses that allow the bank to raise your interest rate 1343 01:07:55,209 --> 01:07:56,870 to a number you didn't know about, 1344 01:07:56,911 --> 01:07:58,936 perhaps so high that you won't be able to repay your loan. 1345 01:07:58,979 --> 01:08:00,708 But that's okay. 1346 01:08:00,748 --> 01:08:04,206 If you can't pay it we'll just take your house. 1347 01:08:06,720 --> 01:08:09,052 Of course, before they could take your house 1348 01:08:09,090 --> 01:08:12,059 they needed to change the regulations and the rules. 1349 01:08:12,093 --> 01:08:14,926 Moore: What's this photo I found here? 1350 01:08:14,962 --> 01:08:17,590 It was in an annual report of the FDlC. 1351 01:08:17,631 --> 01:08:22,125 John Gilleran, the head of the Office of Thrift Supervision, 1352 01:08:22,169 --> 01:08:23,693 which is supposed to regulate savings and loans, 1353 01:08:23,737 --> 01:08:26,035 he's the guy with the chainsaw. 1354 01:08:26,073 --> 01:08:28,439 And the four other grinning idiots 1355 01:08:28,476 --> 01:08:33,004 in the photo are the three leading lobbyists in banking 1356 01:08:33,047 --> 01:08:37,006 and the deputy director of the Federal Deposit lnsurance Corporation. 1357 01:08:37,051 --> 01:08:41,010 And they're poised over a pile of regulations. 1358 01:08:41,055 --> 01:08:42,818 And this is supposed to demonstrate 1359 01:08:42,857 --> 01:08:45,951 their intention to destroy regulation. 1360 01:08:45,993 --> 01:08:48,461 And they succeeded. 1361 01:08:48,496 --> 01:08:50,361 And now we know what happens 1362 01:08:50,397 --> 01:08:52,524 when you destroy financial regulation. 1363 01:08:52,566 --> 01:08:54,932 You produce a financial catastrophe. 1364 01:08:54,969 --> 01:08:57,597 A growing family with a lot of debt; 1365 01:08:57,638 --> 01:08:59,799 A young couple with no down payment; 1366 01:08:59,840 --> 01:09:02,866 A business owner whose income was hard to document; 1367 01:09:02,910 --> 01:09:05,879 Every one of them was turned down for a home loan 1368 01:09:05,913 --> 01:09:07,471 by three different lenders. 1369 01:09:07,515 --> 01:09:10,780 I'm with Countrywide and I got them all approved. 1370 01:09:10,818 --> 01:09:13,810 Moore: Don't be fooled by the pleasant demeanor 1371 01:09:13,854 --> 01:09:15,515 and blonde hair. 1372 01:09:15,556 --> 01:09:17,956 It's the same pitch the mafia gives you 1373 01:09:17,992 --> 01:09:19,789 in the neighborhood. 1374 01:09:19,827 --> 01:09:21,351 ( imitating Brando ) I know how you feel. 1375 01:09:21,395 --> 01:09:23,386 You got a lot of debt. 1376 01:09:23,430 --> 01:09:25,591 You don't have any money for the down payment. 1377 01:09:25,633 --> 01:09:27,999 You can't find your documents. 1378 01:09:28,035 --> 01:09:31,232 It's okay. I'll make you a loan you can't refuse. 1379 01:09:31,272 --> 01:09:33,137 It's called subprime. 1380 01:09:33,174 --> 01:09:35,472 You pay no interest now. 1381 01:09:35,509 --> 01:09:37,807 You pay a little more later. 1382 01:09:37,845 --> 01:09:41,303 Don't worry about later. We'll take care of you. 1383 01:09:41,348 --> 01:09:44,511 And like the mafia, Countrywide, 1384 01:09:44,552 --> 01:09:48,181 Citibank, Wells Fargo, Chase... 1385 01:09:48,222 --> 01:09:50,019 Let's go. 1386 01:09:50,057 --> 01:09:52,491 ...they would someday stop by to collect 1387 01:09:52,526 --> 01:09:55,359 and take your home. 1388 01:09:57,731 --> 01:10:01,360 Randy Hacker: I was paying 1,700 a month and making it. 1389 01:10:01,402 --> 01:10:04,030 Then it went to 2,000. Then it went to 2,300. 1390 01:10:04,071 --> 01:10:06,164 Then it went to 2,700. 1391 01:10:06,207 --> 01:10:08,141 Can't do it. 1392 01:10:11,946 --> 01:10:15,973 Moore: These are the Hackers of Peoria, lllinois. 1393 01:10:16,016 --> 01:10:18,610 Randy is a railroad worker 1394 01:10:18,652 --> 01:10:21,416 and Donna works for retirement homes. 1395 01:10:21,455 --> 01:10:25,323 Their farm, which had been in the family for over four decades, 1396 01:10:25,359 --> 01:10:28,726 had been foreclosed on by Citibank. 1397 01:10:28,762 --> 01:10:31,560 Randy had had an accident on the job years ago 1398 01:10:31,599 --> 01:10:33,362 and was now on disability. 1399 01:10:35,970 --> 01:10:40,634 They absolutely just plain fucking stole everything, 1400 01:10:40,674 --> 01:10:42,665 my whole life's savings and everything, 1401 01:10:42,710 --> 01:10:46,578 by a stroke of a pen and a lawyer and a judge. 1402 01:10:46,614 --> 01:10:49,947 Moore: The Hackers showed me the foreclosure notice from Citibank. 1403 01:10:49,984 --> 01:10:51,611 What caught my eye 1404 01:10:51,652 --> 01:10:54,382 was the town from which their mortgage came. 1405 01:10:54,421 --> 01:10:58,050 It turns out that a company owned by the big banks 1406 01:10:58,092 --> 01:11:01,027 has chosen to run 60 million mortgages through, 1407 01:11:01,061 --> 01:11:04,360 of all places, one of the most desperate towns 1408 01:11:04,398 --> 01:11:06,059 in the United States. 1409 01:11:06,100 --> 01:11:08,568 This company hires the people of Flint 1410 01:11:08,602 --> 01:11:10,968 to send out nearly 60% 1411 01:11:11,005 --> 01:11:14,304 of all the foreclosure notices in the country. 1412 01:11:14,341 --> 01:11:17,572 In what seems to be some sort of cruel joke, 1413 01:11:17,611 --> 01:11:20,079 my hometown was now in the service 1414 01:11:20,114 --> 01:11:22,548 of helping to turn the rest of America 1415 01:11:22,583 --> 01:11:24,710 into Flint. 1416 01:11:28,956 --> 01:11:31,948 Typically when a bank forces a family like the Hackers 1417 01:11:31,992 --> 01:11:34,654 out of their home they hire professionals 1418 01:11:34,695 --> 01:11:36,458 to come and clean up the place. 1419 01:11:37,898 --> 01:11:40,162 In this case, the bank figured, 1420 01:11:40,200 --> 01:11:43,931 why pay top dollar when we've got a desperate family 1421 01:11:43,971 --> 01:11:45,996 who will work cheap? 1422 01:11:46,040 --> 01:11:48,167 In a final humiliation 1423 01:11:48,208 --> 01:11:50,403 the Hackers went to work for the bank 1424 01:11:50,444 --> 01:11:52,309 that took their home. 1425 01:11:54,281 --> 01:11:57,011 Donna: "Property is to be turned over in broom-clean condition 1426 01:11:57,051 --> 01:11:59,986 with all trash, debris and personal property removed. 1427 01:12:01,822 --> 01:12:03,790 Upon delivery of the keys 1428 01:12:03,824 --> 01:12:07,419 the PAS representative will hand you a check for $1,000." 1429 01:12:13,067 --> 01:12:16,264 Randy: You know, 1,000 bucks 1430 01:12:16,303 --> 01:12:19,739 to get out of my own house and stuff, 1431 01:12:19,773 --> 01:12:22,833 I really want to thank them. That was really something. 1432 01:12:22,876 --> 01:12:25,640 My wife worked for a week to clean the house up 1433 01:12:25,679 --> 01:12:27,806 and make sure it was presentable to somebody else. 1434 01:12:27,848 --> 01:12:30,476 I'm glad they did that. I have to thank them. 1435 01:12:30,517 --> 01:12:32,485 It was awful nice of them. 1436 01:12:32,519 --> 01:12:35,249 Yeah, I'd like to thank them all right. 1437 01:12:44,264 --> 01:12:46,858 I have one more. 1438 01:12:49,203 --> 01:12:51,933 Oh, that goes to our bedroom door. 1439 01:12:51,972 --> 01:12:54,031 Trying to think what-- 1440 01:12:54,074 --> 01:12:56,372 that goes that that. I had a lock on it 1441 01:12:56,410 --> 01:12:58,310 to keep kids out 'cause I have guns. 1442 01:12:58,345 --> 01:13:00,677 And here's your money, Randy. 1443 01:13:00,714 --> 01:13:03,308 Moore: What you're witnessing 1444 01:13:03,350 --> 01:13:04,874 is a robbery. 1445 01:13:06,320 --> 01:13:09,812 I'm starting to understand why people, 1446 01:13:09,857 --> 01:13:12,621 they lose their minds and start shooting people. 1447 01:13:12,659 --> 01:13:15,184 I'm not gonna say I would do something like that, 1448 01:13:15,229 --> 01:13:17,754 but I can see how they get people 1449 01:13:17,798 --> 01:13:19,993 into that situation where 1450 01:13:20,033 --> 01:13:23,491 people go in there with bombs and blow them up 1451 01:13:23,537 --> 01:13:25,471 and shoot at them. 1452 01:13:25,506 --> 01:13:27,599 Anything that happens to them people, they deserve it, 1453 01:13:27,641 --> 01:13:29,404 is all I can say. 1454 01:13:29,443 --> 01:13:31,638 I hope something happens-- 1455 01:13:31,678 --> 01:13:34,875 yeah, well. 1456 01:13:34,915 --> 01:13:37,179 Can't say no more. 1457 01:13:41,889 --> 01:13:44,016 Some roadkill right there. 1458 01:13:44,057 --> 01:13:45,786 Moore: This is Bob Feinberg. 1459 01:13:45,826 --> 01:13:49,592 He handled all the VlP loans for Countrywide, 1460 01:13:49,630 --> 01:13:53,566 the nation's largest mortgage company. 1461 01:13:53,600 --> 01:13:55,534 Although Countrywide mainly specializes 1462 01:13:55,569 --> 01:13:58,970 in outrageously high interest loans for low income people, 1463 01:13:59,006 --> 01:14:01,304 Bob's job was to take care of 1464 01:14:01,341 --> 01:14:05,107 some of the country's top political leaders. 1465 01:14:05,145 --> 01:14:07,739 Bob: One day one of the bigger bosses called me in the office. 1466 01:14:07,781 --> 01:14:09,510 He said, "l want you to call this guy." 1467 01:14:09,550 --> 01:14:11,518 I said okay. 1468 01:14:11,552 --> 01:14:14,487 And he said, "He's a friend of Angelo's." 1469 01:14:14,521 --> 01:14:16,989 Angelo Mozilo's the CEO of Countrywide. 1470 01:14:17,024 --> 01:14:21,188 "Give him this rate. Waive these fees. 1471 01:14:21,228 --> 01:14:25,255 And get it locked in. And don't fuck it up." 1472 01:14:25,299 --> 01:14:28,063 And I was like, "Oh, okay." 1473 01:14:29,736 --> 01:14:31,397 So it was a special department 1474 01:14:31,438 --> 01:14:34,066 that handled friends of Angelo. 1475 01:14:35,442 --> 01:14:36,909 Discounts were being given. 1476 01:14:36,944 --> 01:14:38,536 Fees were being waived. 1477 01:14:38,579 --> 01:14:41,605 And at times paperwork was being waived. 1478 01:14:41,648 --> 01:14:45,744 We literally would write on the file "FOA." 1479 01:14:45,786 --> 01:14:48,516 These were really important people. 1480 01:14:48,555 --> 01:14:51,251 I had Richard Holbrooke-- Ambassador Holbrooke, 1481 01:14:51,291 --> 01:14:53,486 Donna Shalala, 1482 01:14:53,527 --> 01:14:56,690 people on Capitol Hill, people that regulate the mortgage markets, 1483 01:14:56,730 --> 01:14:58,994 people that regulate Wall Street, 1484 01:14:59,032 --> 01:15:02,263 and Jim Johnson, head of Fannie Mae, 1485 01:15:02,302 --> 01:15:05,169 Alphonso Jackson the secretary of HUD... 1486 01:15:06,773 --> 01:15:09,765 Senator Conrad from the Finance Committee. 1487 01:15:09,810 --> 01:15:12,836 I had the TV on in my house. I was in the kitchen 1488 01:15:12,880 --> 01:15:15,075 and I heard a voice pontificating 1489 01:15:15,115 --> 01:15:17,948 about predatory lending and how we have to put an end to it. 1490 01:15:17,985 --> 01:15:20,249 Our nation's financial regulators 1491 01:15:20,287 --> 01:15:22,016 are supposed to be the cops on the beat 1492 01:15:22,055 --> 01:15:24,455 protecting working Americans 1493 01:15:24,491 --> 01:15:26,220 from unscrupulous financial actions. 1494 01:15:26,260 --> 01:15:28,956 Bob: Senator Dodd-- Christopher Dodd-- was speaking. 1495 01:15:28,996 --> 01:15:32,659 And I just stared at the television and I was upset. 1496 01:15:32,699 --> 01:15:35,224 Some of these loans have legitimate uses, 1497 01:15:35,269 --> 01:15:37,294 when made to sophisticated borrowers 1498 01:15:37,337 --> 01:15:39,464 with higher incomes. 1499 01:15:39,506 --> 01:15:42,202 I had done a number of loans for him 1500 01:15:42,242 --> 01:15:44,972 in which he got discounts and all the things 1501 01:15:45,012 --> 01:15:46,775 that go with being a friend of Angelo's 1502 01:15:46,813 --> 01:15:48,337 and all the good stuff. 1503 01:15:48,382 --> 01:15:50,350 Moore: The Senate Banking and Housing Committee 1504 01:15:50,384 --> 01:15:53,012 is supposed to be the watchdog of the mortgage industry. 1505 01:15:53,053 --> 01:15:56,318 Senator Dodd is the chairman of this committee 1506 01:15:56,356 --> 01:15:58,984 and has served on it for over 28 years. 1507 01:15:59,026 --> 01:16:01,256 As afriend of Angelo 1508 01:16:01,295 --> 01:16:03,991 he received over $1 million worth 1509 01:16:04,031 --> 01:16:06,625 of discounted loans from Countrywide. 1510 01:16:06,667 --> 01:16:10,433 Someone next door here is selling a toxic 1511 01:16:10,470 --> 01:16:12,700 piece of crap loan to somebody. 1512 01:16:12,739 --> 01:16:16,573 I was required to give the most suitable loan to that VlP. 1513 01:16:16,610 --> 01:16:18,475 Moore: Did you ever feel that 1514 01:16:18,512 --> 01:16:20,605 what you were doing might be bribery? 1515 01:16:20,647 --> 01:16:23,616 Bob: I didn't feel like I was bribing anybody, no. 1516 01:16:23,650 --> 01:16:27,108 I was just doing my job. I was the VlP guy. 1517 01:16:27,154 --> 01:16:28,883 Everyone in the company knew who I was. 1518 01:16:28,922 --> 01:16:30,583 You know, everyone. 1519 01:16:30,624 --> 01:16:33,184 So it was kind of a flattering situation. 1520 01:16:33,226 --> 01:16:36,718 But no, I don't feel like I did anything wrong at all. 1521 01:16:36,763 --> 01:16:39,823 And if I didn't do it, somebody else would have been doing it. 1522 01:16:41,702 --> 01:16:44,227 Moore: That's why we need people like Bill Black, 1523 01:16:44,271 --> 01:16:46,432 one of the bank regulators who uncovered 1524 01:16:46,473 --> 01:16:48,703 the Savings & Loan scandal in the 1980s. 1525 01:16:48,742 --> 01:16:50,869 Something improper happened 1526 01:16:50,911 --> 01:16:53,209 and I bet you the regulators know. 1527 01:16:53,246 --> 01:16:56,181 Moore: One of the leading figures of that scandal, Charles Keating, 1528 01:16:56,216 --> 01:16:59,014 had an idea on what to do with Bill Black 1529 01:16:59,052 --> 01:17:01,543 and sent a memo out with these instructions. 1530 01:17:02,723 --> 01:17:05,749 I asked him who was looking out for us today. 1531 01:17:05,792 --> 01:17:08,420 Where was the FBl in all of this? 1532 01:17:08,462 --> 01:17:11,192 The FBl began publicly warning 1533 01:17:11,231 --> 01:17:13,722 in September 2004 1534 01:17:13,767 --> 01:17:16,998 that there was an epidemic of mortgage fraud 1535 01:17:17,037 --> 01:17:19,232 perpetrated by the banks. 1536 01:17:19,272 --> 01:17:20,933 Epidemic was their word. 1537 01:17:20,974 --> 01:17:23,670 But when 9/11 hit, 1538 01:17:23,710 --> 01:17:26,941 the Bush administration transferred 1539 01:17:26,980 --> 01:17:31,041 at least 500 white-collar FBl specialists 1540 01:17:31,084 --> 01:17:33,882 out of dealing with white-collar crime, 1541 01:17:33,920 --> 01:17:36,354 even though we were entering 1542 01:17:36,390 --> 01:17:38,358 during the entire Bush administration 1543 01:17:38,392 --> 01:17:40,952 the greatest wave of white-collar crime 1544 01:17:40,994 --> 01:17:44,521 in the nation's history, in fact, in the world's history. 1545 01:17:44,564 --> 01:17:47,761 The FBl says that 80% 1546 01:17:47,801 --> 01:17:49,792 of the mortgage fraud losses 1547 01:17:49,836 --> 01:17:52,669 are induced by lender personnel. 1548 01:17:52,706 --> 01:17:54,003 Meaning what? 1549 01:17:54,041 --> 01:17:56,475 Meaning not the borrower 1550 01:17:56,510 --> 01:17:59,638 coming off the street trying to defraud the savings and loan. 1551 01:17:59,680 --> 01:18:03,548 These are frauds led by whoever controls the organization. 1552 01:18:03,583 --> 01:18:06,245 - Right. - It's typically the CEO in other words. 1553 01:18:06,286 --> 01:18:09,312 So did these CEOs think they were gonna get away with it? 1554 01:18:09,356 --> 01:18:11,517 They have gotten away with it. 1555 01:18:13,226 --> 01:18:15,319 Moore: Yes, apparently they did. 1556 01:18:15,362 --> 01:18:18,126 And with the presidential election just around the corner... 1557 01:18:18,165 --> 01:18:21,430 - Define rich. - 5 million. 1558 01:18:21,468 --> 01:18:25,268 ...the elites were worried that their crime spree might come to an end. 1559 01:18:25,305 --> 01:18:28,468 After bilking trillions from the American public 1560 01:18:28,508 --> 01:18:30,135 by repossessing their homes, 1561 01:18:30,177 --> 01:18:32,441 bankrupting them when they got sick 1562 01:18:32,479 --> 01:18:34,743 and convincing them to invest their earnings 1563 01:18:34,781 --> 01:18:38,080 and pensions in the casino known as the stock market, 1564 01:18:38,118 --> 01:18:41,519 the rich decided to make one last heist 1565 01:18:41,555 --> 01:18:44,922 and as their 30-year long party came to an end, 1566 01:18:44,958 --> 01:18:48,450 take as much of the silverware with them as they could. 1567 01:18:48,495 --> 01:18:51,328 But first they needed a distraction. 1568 01:18:51,364 --> 01:18:54,629 And as they learned after 9/11, 1569 01:18:54,668 --> 01:18:57,432 nothing works better in the home of the brave 1570 01:18:57,471 --> 01:19:00,463 than some good old fashioned fear. 1571 01:19:00,507 --> 01:19:04,341 And who better to wheel out for one last scary performance 1572 01:19:04,377 --> 01:19:07,312 than Chicken Little himself? 1573 01:19:07,347 --> 01:19:10,839 Oscar voters, for your consideration. 1574 01:19:10,884 --> 01:19:12,545 Good evening. 1575 01:19:12,586 --> 01:19:15,111 This is an extraordinary period for America's economy. 1576 01:19:15,155 --> 01:19:17,783 The government's top economic experts 1577 01:19:17,824 --> 01:19:20,088 warn that without immediate action by Congress, 1578 01:19:20,127 --> 01:19:23,119 America could slip into a financial panic 1579 01:19:23,163 --> 01:19:26,257 and a distressing scenario would unfold. 1580 01:19:26,299 --> 01:19:29,700 More banks could fail, including some in your community. 1581 01:19:29,736 --> 01:19:32,227 - ( thunder rumbling ) - The stock market would drop even more, 1582 01:19:32,272 --> 01:19:34,638 which would reduce the value of your retirement account. 1583 01:19:34,674 --> 01:19:37,336 The value of your home could plummet. 1584 01:19:37,377 --> 01:19:39,868 Foreclosures would rise dramatically. 1585 01:19:39,913 --> 01:19:42,143 And if you own a business or a farm, 1586 01:19:42,182 --> 01:19:44,810 you would find it harder and more expensive to get credit. 1587 01:19:44,851 --> 01:19:47,513 More businesses would close their doors 1588 01:19:47,554 --> 01:19:50,114 and millions of Americans could lose their jobs. 1589 01:19:50,157 --> 01:19:52,955 - ( screams ) - Even if you have good credit history, 1590 01:19:52,993 --> 01:19:55,894 it would be more difficult for you to get the loans you need 1591 01:19:55,929 --> 01:19:58,227 to buy a car or send your children to college. 1592 01:19:58,265 --> 01:20:00,699 And ultimately our country could experience 1593 01:20:00,734 --> 01:20:03,498 - a long and painful recession. - ( people screaming ) 1594 01:20:03,537 --> 01:20:07,667 Fellow citizens, we must not let this happen. 1595 01:20:07,707 --> 01:20:11,302 Moore: In reality there was no need for this speech, 1596 01:20:11,344 --> 01:20:13,437 because the mainstream media 1597 01:20:13,480 --> 01:20:15,749 had already drunk the Kool-Aid. 1598 01:20:17,117 --> 01:20:19,415 Meltdown. The American financial system 1599 01:20:19,452 --> 01:20:21,010 is rocked to its foundation. 1600 01:20:21,054 --> 01:20:23,386 The giant bank crumbles, stocks plummet. 1601 01:20:23,423 --> 01:20:26,790 - Nightmare on Wall Street. - AlG fights for its life. 1602 01:20:26,827 --> 01:20:28,761 - Blood on the floor. - Armageddon. 1603 01:20:28,795 --> 01:20:31,923 A category-five test of our financial levies. 1604 01:20:31,965 --> 01:20:35,423 What the fuck happened? 1605 01:20:35,468 --> 01:20:37,800 Have you ever seen a dam fail? 1606 01:20:37,838 --> 01:20:41,239 It starts with a little crack, a little seepage. 1607 01:20:41,274 --> 01:20:42,764 Reporter: With overwhelming support, 1608 01:20:42,809 --> 01:20:44,743 Congress struck down the restrictions. 1609 01:20:44,778 --> 01:20:46,712 Big banking is barreling back. 1610 01:20:46,746 --> 01:20:48,771 Black: And it starts eroding 1611 01:20:48,815 --> 01:20:52,546 and it destroys all the internal strength of the dam. 1612 01:20:52,586 --> 01:20:54,247 Reporter: Poison from the housing mess 1613 01:20:54,287 --> 01:20:56,778 seeped deeper and deeper into the banking system. 1614 01:20:56,823 --> 01:20:58,916 Black: And soon the dam works against itself. 1615 01:20:58,959 --> 01:21:00,950 The weight of the dam and the weight of the water 1616 01:21:00,994 --> 01:21:02,359 conspire against it. 1617 01:21:02,395 --> 01:21:04,124 Reporter: lnvestors were dumping Bear shares 1618 01:21:04,164 --> 01:21:05,654 Ieading a huge selloff... 1619 01:21:05,699 --> 01:21:07,758 Reporter #2: The stocks of Fannie Mae and Freddie Mac 1620 01:21:07,801 --> 01:21:09,598 were in freefall this morning... 1621 01:21:09,636 --> 01:21:12,503 Black: Then there's kind of a significant flow. 1622 01:21:12,539 --> 01:21:15,975 Reporter: Wall Street's losing streak stretched into its seventh day. 1623 01:21:16,009 --> 01:21:20,036 Black: And then suddenly you've got 60-70 foot sections. 1624 01:21:20,080 --> 01:21:21,240 A dam exploding. 1625 01:21:21,281 --> 01:21:23,010 Reporter: Lehman Brothers, bankrupt. 1626 01:21:23,049 --> 01:21:24,846 Merrill Lynch, sold in haste. 1627 01:21:24,885 --> 01:21:26,819 - Now AlG. - Black: Just crashing. 1628 01:21:26,853 --> 01:21:28,616 Reporter: The market's year long slide 1629 01:21:28,655 --> 01:21:31,283 has brought down some of the biggest blue chips. 1630 01:21:31,324 --> 01:21:33,121 Black: The water starts rushing through. 1631 01:21:33,159 --> 01:21:35,753 Reporter: This morning, Washington Mutual has gone under, 1632 01:21:35,795 --> 01:21:38,263 the largest failure in US banking history. 1633 01:21:38,298 --> 01:21:40,095 Reporter #2: Stocks fell off a cliff. 1634 01:21:40,133 --> 01:21:43,125 The largest single point drop in history. 1635 01:21:45,805 --> 01:21:49,263 Black: It destroys the rest of the dam. 1636 01:21:49,309 --> 01:21:51,106 Andthe whole failure 1637 01:21:51,144 --> 01:21:53,635 Iooks like it only takes two minutes. 1638 01:21:53,680 --> 01:21:57,013 But of course, it's that little hole 1639 01:21:57,050 --> 01:21:59,951 that's been there for several years 1640 01:21:59,986 --> 01:22:02,546 that really destroyed it. 1641 01:22:02,589 --> 01:22:06,184 You have this fundamentally unsound system 1642 01:22:06,226 --> 01:22:09,389 built on a foundation of sand 1643 01:22:09,429 --> 01:22:11,556 instead of bedrock. 1644 01:22:11,598 --> 01:22:13,930 And it was rotted from the core. 1645 01:22:15,468 --> 01:22:18,801 It seems like capitalism is just collapsing on itself. 1646 01:22:18,838 --> 01:22:20,567 Who got rich here? 1647 01:22:20,607 --> 01:22:22,939 Lots of people got rich during this time, 1648 01:22:22,976 --> 01:22:27,572 primarily the officers and directors 1649 01:22:27,614 --> 01:22:30,208 of the large banks and savings and loans 1650 01:22:30,250 --> 01:22:32,741 and the specialty non-prime lenders. 1651 01:22:32,786 --> 01:22:36,222 These people became unbelievably rich. 1652 01:22:36,256 --> 01:22:39,555 And members of Congress got rich, 1653 01:22:39,592 --> 01:22:41,389 especially once they left Congress. 1654 01:22:41,428 --> 01:22:44,556 A number of them go and work in the financial institutions. 1655 01:22:44,597 --> 01:22:47,191 Sure, and as do Rubin and Summers. 1656 01:22:47,233 --> 01:22:50,828 Moore: Robert Rubin, a one-time top executive 1657 01:22:50,870 --> 01:22:53,930 at both Citigroup and Goldman Sachs 1658 01:22:53,974 --> 01:22:55,771 champion a change in the law 1659 01:22:55,809 --> 01:22:58,243 that allowed commercial banks to get into new areas 1660 01:22:58,278 --> 01:23:02,044 Iike investment banking and exotic insurance products. 1661 01:23:03,850 --> 01:23:05,977 This made it legal to let Citicorp 1662 01:23:06,019 --> 01:23:07,782 merge with Travelers Group, 1663 01:23:07,821 --> 01:23:10,847 a deal valued at $70 billion, 1664 01:23:10,890 --> 01:23:13,222 creating the world's largest bank. 1665 01:23:13,259 --> 01:23:16,126 After leaving the Clinton administration, 1666 01:23:16,162 --> 01:23:17,959 Rubin worked for Citigroup, 1667 01:23:17,998 --> 01:23:22,560 earning more than $115 million. 1668 01:23:22,602 --> 01:23:24,593 Summers made his money where? 1669 01:23:24,637 --> 01:23:28,403 Summers made his money as a supposed consultant 1670 01:23:28,441 --> 01:23:31,433 and in giving speeches 1671 01:23:31,478 --> 01:23:33,810 at apparently, in some cases, 1672 01:23:33,847 --> 01:23:36,975 over $100,000 a pop. 1673 01:23:37,017 --> 01:23:40,680 Moore: Summers also made $5.2 million at his part-time job, 1674 01:23:40,720 --> 01:23:43,951 advising a hedge fund. 1675 01:23:43,990 --> 01:23:45,582 Where did Geithner work? 1676 01:23:45,625 --> 01:23:48,458 Geithner has been a failure 1677 01:23:48,495 --> 01:23:50,759 at pretty much everything he's done in life. 1678 01:23:50,797 --> 01:23:55,393 Most of the institutions that destroyed the economy 1679 01:23:55,435 --> 01:23:58,836 were under his direct regulatory authority. 1680 01:23:58,872 --> 01:24:01,170 How did he get the job as Treasury Secretary? 1681 01:24:01,207 --> 01:24:04,199 By completely screwing up his job 1682 01:24:04,244 --> 01:24:07,304 as President of the Federal Reserve Bank of New York. 1683 01:24:07,347 --> 01:24:09,076 That makes no sense. 1684 01:24:09,115 --> 01:24:10,742 Of course, it makes perfect sense. 1685 01:24:10,784 --> 01:24:12,911 This is not new to Washington. 1686 01:24:12,952 --> 01:24:15,420 People who will give you the wrong answer 1687 01:24:15,455 --> 01:24:18,788 but the answer you want are invaluable. 1688 01:24:18,825 --> 01:24:21,157 And they often get promoted 1689 01:24:21,194 --> 01:24:24,163 precisely because they're willing to say 1690 01:24:24,197 --> 01:24:26,665 and do absurd things. 1691 01:24:26,699 --> 01:24:30,533 These are the people that promised us 1692 01:24:30,570 --> 01:24:34,529 that financial deregulation would make all of us rich. 1693 01:24:34,574 --> 01:24:38,044 And these are the people who were personally made rich. 1694 01:24:41,181 --> 01:24:45,277 Moore: It was not surprising that the rich wanted to get richer. 1695 01:24:45,318 --> 01:24:49,084 But now they had come up with a new and brazen way to do it. 1696 01:24:49,122 --> 01:24:53,024 Just back a big truck up to the Department of Treasury 1697 01:24:53,059 --> 01:24:56,551 and take $700 billion of our tax money, 1698 01:24:56,596 --> 01:24:58,587 no questions asked. 1699 01:24:58,631 --> 01:25:02,397 I got Michael Moore here. You know who Michael Moore is, don't you? 1700 01:25:02,435 --> 01:25:05,302 The film director. He's filming me right now. 1701 01:25:05,338 --> 01:25:06,896 - I got my wife on the line. - Oh, hi. 1702 01:25:06,940 --> 01:25:08,703 How are you doing? Baron Hill from lndiana. 1703 01:25:08,741 --> 01:25:10,208 How are you, sir? Good state. 1704 01:25:10,243 --> 01:25:12,074 - We're from Michigan you know? - Yeah. 1705 01:25:12,112 --> 01:25:13,704 How did this collapse happen? 1706 01:25:13,746 --> 01:25:17,978 I got home on a Friday, everything was just fine in terms of the economy. 1707 01:25:18,017 --> 01:25:20,747 I call back after my plane landed in lndiana 1708 01:25:20,787 --> 01:25:23,119 just to check in with my office, 1709 01:25:23,156 --> 01:25:24,987 and all of a sudden we've got this crisis on our hands 1710 01:25:25,024 --> 01:25:27,083 and that I'm gonna have to vote when I come back Monday 1711 01:25:27,127 --> 01:25:30,585 for a multibillion-dollar bailout of the financial industry. 1712 01:25:30,630 --> 01:25:34,566 The word that we got was that if we did not act immediately 1713 01:25:34,601 --> 01:25:39,402 the economy would collapse, no doubt about it. 1714 01:25:39,439 --> 01:25:42,772 I felt that the announcement 1715 01:25:42,809 --> 01:25:45,175 of this crisis in September, 1716 01:25:45,211 --> 01:25:47,076 just a few weeks before election, 1717 01:25:47,113 --> 01:25:48,410 was very suspicious. 1718 01:25:48,448 --> 01:25:51,474 This is when Congress is the most nervous. 1719 01:25:51,518 --> 01:25:53,884 And I thought, "Wait a minute. What's going on here? 1720 01:25:53,920 --> 01:25:56,354 This is not normal." 1721 01:25:56,389 --> 01:25:58,254 Moore: The leadership of Congress 1722 01:25:58,291 --> 01:25:59,883 and the Bush administration 1723 01:25:59,926 --> 01:26:02,258 quickly held a series of private meetings 1724 01:26:02,295 --> 01:26:05,196 with the titans of Wall Street to figure out 1725 01:26:05,231 --> 01:26:07,563 just how much money was needed to cover 1726 01:26:07,600 --> 01:26:11,161 all the bad bets investors had made. 1727 01:26:11,204 --> 01:26:15,265 A deal was cut with Treasury Secretary Henry Paulson, 1728 01:26:15,308 --> 01:26:17,799 the former CEO of Goldman Sachs, 1729 01:26:17,844 --> 01:26:21,712 whose net worth was estimated at $700 million 1730 01:26:21,748 --> 01:26:25,582 when he left Goldman to go and run the Treasury Department. 1731 01:26:25,618 --> 01:26:29,418 I think we saw the best of the United States of America 1732 01:26:29,455 --> 01:26:32,856 in the Speaker's office tonight. 1733 01:26:32,892 --> 01:26:35,884 Moore: The best of America? 1734 01:26:35,929 --> 01:26:39,831 Or did he mean the best of Goldman Sachs? 1735 01:26:39,866 --> 01:26:41,629 The Treasury Department, 1736 01:26:41,668 --> 01:26:44,000 it's basically an arm of Wall Street. 1737 01:26:44,037 --> 01:26:47,097 All the people in charge were from Goldman Sachs. 1738 01:26:47,140 --> 01:26:50,268 We call it Government Goldman in the modern era. 1739 01:26:50,310 --> 01:26:52,471 Moore: That's because there were now numerous 1740 01:26:52,512 --> 01:26:56,278 former Goldman executives inside the Bush Treasury Department, 1741 01:26:56,316 --> 01:26:58,580 as there were under Clinton. 1742 01:26:58,618 --> 01:27:01,519 They worked as powerful lobbyists from the inside 1743 01:27:01,554 --> 01:27:03,852 to abolish financial regulations 1744 01:27:03,890 --> 01:27:06,358 while we paid their salaries. 1745 01:27:06,392 --> 01:27:08,656 Black: Treasury Secretary Paulson-- 1746 01:27:08,695 --> 01:27:10,629 he wasn't just randomly at Goldman. 1747 01:27:10,663 --> 01:27:14,155 He was the guy at Goldman who got them big time 1748 01:27:14,200 --> 01:27:17,897 into buying these exotic housing derivatives. 1749 01:27:17,937 --> 01:27:21,395 So he got Goldman in a huge amount of trouble. 1750 01:27:21,441 --> 01:27:23,602 Moore: lnsane housing derivatives 1751 01:27:23,643 --> 01:27:26,635 had now destroyed much of Goldman's competition. 1752 01:27:26,679 --> 01:27:29,204 And with the Goldman boys now calling the shots 1753 01:27:29,249 --> 01:27:32,082 inside the government, they would ensure that Goldman 1754 01:27:32,118 --> 01:27:34,848 would end up as the kings of Wall Street 1755 01:27:34,887 --> 01:27:36,320 when the dust settled. 1756 01:27:36,356 --> 01:27:38,085 Black: So the last possible people 1757 01:27:38,124 --> 01:27:40,922 that should be giving advice to Treasury would be Goldman. 1758 01:27:40,960 --> 01:27:42,484 So naturally Paulson, 1759 01:27:42,528 --> 01:27:45,725 former CEO of Goldman, puts them on. 1760 01:27:45,765 --> 01:27:48,461 And what advice do they end up giving? 1761 01:27:48,501 --> 01:27:51,334 Well, to use the taxpayers 1762 01:27:51,371 --> 01:27:53,805 to bail out Goldman 1763 01:27:53,840 --> 01:27:56,707 and other favored financial institutions. 1764 01:27:56,743 --> 01:27:59,735 Well, Secretary Paulson has submitted 1765 01:27:59,779 --> 01:28:01,644 a simple proposal to Congress. 1766 01:28:01,681 --> 01:28:03,876 This is it-- three pages. 1767 01:28:03,916 --> 01:28:06,680 It's about $1 billion a word. 1768 01:28:06,719 --> 01:28:08,710 And it is quite simple. 1769 01:28:08,755 --> 01:28:11,883 Secretary Paulson gets the key to the treasury. 1770 01:28:11,924 --> 01:28:15,189 He's gonna start off by borrowing $700 billion 1771 01:28:15,228 --> 01:28:16,718 in the name of the American people, 1772 01:28:16,763 --> 01:28:19,994 maybe more later. And it waives all laws. 1773 01:28:20,033 --> 01:28:22,263 All laws! 1774 01:28:22,302 --> 01:28:25,738 Not even court review. Pretty simple proposal. 1775 01:28:25,772 --> 01:28:29,333 We are in a real crisis situation 1776 01:28:29,375 --> 01:28:31,366 that could mushroom 1777 01:28:31,411 --> 01:28:33,777 into something worse than the Great Depression. 1778 01:28:33,813 --> 01:28:37,408 So I saw fear. One gentleman started to cry. 1779 01:28:37,450 --> 01:28:40,783 People are telling us that it's going to be this gigantic calamity. 1780 01:28:40,820 --> 01:28:42,685 And I'm up for election in two months. 1781 01:28:42,722 --> 01:28:44,485 Eight weeks away from election, 1782 01:28:44,524 --> 01:28:47,152 I don't want to make a mistake. What's the right thing to do? 1783 01:28:47,193 --> 01:28:49,354 Heaven help us. 1784 01:28:49,395 --> 01:28:51,386 If we fail to pass this 1785 01:28:51,431 --> 01:28:54,195 I fear the worst is yet to come. 1786 01:28:54,233 --> 01:28:56,497 And a few members were even told 1787 01:28:56,536 --> 01:29:00,131 that there would be martial law in America if we voted no. 1788 01:29:00,173 --> 01:29:02,334 They were ramming this thing down our throat. 1789 01:29:02,375 --> 01:29:04,400 They wanted us to vote on it right away 1790 01:29:04,444 --> 01:29:07,106 without any kind of thoughtful analysis. 1791 01:29:07,146 --> 01:29:09,205 - No real hearings? - No real hearings. 1792 01:29:09,248 --> 01:29:11,307 And I wasn't aboutto-- 1793 01:29:11,351 --> 01:29:14,479 I got cornered into voting 1794 01:29:14,520 --> 01:29:17,182 for the lraq resolution based upon some lies 1795 01:29:17,223 --> 01:29:19,123 that they made to me and I wasn't going to go through that again. 1796 01:29:19,158 --> 01:29:22,457 I will not wait on events while danger is gathering. 1797 01:29:22,495 --> 01:29:25,987 I will not stand by as peril draws closer and closer. 1798 01:29:26,032 --> 01:29:28,865 Use fear and then you get done what you want. 1799 01:29:30,903 --> 01:29:33,497 And they created in this window-- 1800 01:29:33,539 --> 01:29:36,269 two months before election-- this pressure cooker. 1801 01:29:36,309 --> 01:29:39,005 People understand that the House of Representatives 1802 01:29:39,045 --> 01:29:41,673 needs to pass this piece of legislation. 1803 01:29:41,714 --> 01:29:44,649 Mr. Speaker, my message to the American people... 1804 01:29:44,684 --> 01:29:47,676 don't let Congress seal this Wall Street deal. 1805 01:29:47,720 --> 01:29:50,280 These criminals have so much political power 1806 01:29:50,323 --> 01:29:52,757 they can shut down the normal legislative process 1807 01:29:52,792 --> 01:29:55,192 of the highest lawmaking body in this land. 1808 01:29:55,228 --> 01:29:57,162 All the committees that should be scanning 1809 01:29:57,196 --> 01:30:00,324 every word of what is being negotiated are benched. 1810 01:30:00,366 --> 01:30:03,096 And that means the American people are benched too. 1811 01:30:03,136 --> 01:30:05,366 We are constitutionally sworn 1812 01:30:05,405 --> 01:30:07,532 to protect and defend this republic 1813 01:30:07,573 --> 01:30:10,804 against all enemies foreign and domestic. 1814 01:30:10,843 --> 01:30:13,641 They say it's gonna be Y2K all over again. 1815 01:30:13,679 --> 01:30:16,170 This is the same politics of fear we are hearing 1816 01:30:16,215 --> 01:30:18,706 from the fat-cat financial bullies from Wall Street. 1817 01:30:18,751 --> 01:30:21,311 Why aren't we asking Wall Street to clean up its own mess? 1818 01:30:21,354 --> 01:30:24,812 Why aren't we helping American families faced with bankruptcy? 1819 01:30:24,857 --> 01:30:27,951 Why aren't we reducing debts from Main Street instead of Wall Street? 1820 01:30:27,994 --> 01:30:29,825 Is this the United States Congress 1821 01:30:29,862 --> 01:30:32,057 or the board of directors of Goldman Sachs? 1822 01:30:32,098 --> 01:30:34,862 Moore: The night before the vote 1823 01:30:34,901 --> 01:30:37,768 the American people in unprecedented numbers 1824 01:30:37,804 --> 01:30:40,830 flooded Capitol Hill with millions of messages 1825 01:30:40,873 --> 01:30:43,569 demanding that Congress vote no. 1826 01:30:47,046 --> 01:30:49,947 The bailout package was defeated today, 1827 01:30:49,982 --> 01:30:52,212 voted down in the House of Representatives. 1828 01:30:52,251 --> 01:30:53,946 The stock market plunged-- 1829 01:30:53,986 --> 01:30:56,648 plunged to the single greatest point loss 1830 01:30:56,689 --> 01:30:58,987 in the Dow average in one day ever. 1831 01:30:59,025 --> 01:31:00,617 The question is this: 1832 01:31:00,660 --> 01:31:03,026 is the failure of the bailout reason enough 1833 01:31:03,062 --> 01:31:06,259 to vote all the incumbents out of office in five weeks? 1834 01:31:06,299 --> 01:31:08,164 12 votes killed it. 1835 01:31:08,201 --> 01:31:10,396 So did the voices of a lot of the American people 1836 01:31:10,436 --> 01:31:13,769 who called their representatives and said no. 1837 01:31:13,806 --> 01:31:16,172 Then Congress voted no. 1838 01:31:16,209 --> 01:31:18,177 Tonight Congress has left town. 1839 01:31:18,211 --> 01:31:21,078 Moore: It was a rebuke that Congress and Wall Street 1840 01:31:21,113 --> 01:31:23,911 had rarely, if ever, experienced. 1841 01:31:23,950 --> 01:31:27,044 It was what the Citibank memo had warned against: 1842 01:31:27,086 --> 01:31:28,849 That if the peasants ever chose 1843 01:31:28,888 --> 01:31:31,015 to exercise their democratic rights, 1844 01:31:31,057 --> 01:31:34,049 the pillaging by the wealthy would be over. 1845 01:31:34,093 --> 01:31:38,223 So Paulson and company headed back up to Capitol Hill. 1846 01:31:38,264 --> 01:31:41,563 And faster than you can say "Check, please," 1847 01:31:41,601 --> 01:31:45,367 they cut a backroom deal with the help of the Democrats. 1848 01:31:47,106 --> 01:31:48,596 This issue supersedes an election. 1849 01:31:48,641 --> 01:31:50,541 We need to get this right. We need to do it quickly. 1850 01:31:50,576 --> 01:31:52,009 I agree with the secretary. 1851 01:31:52,044 --> 01:31:54,478 It's not gonna openly cost all these hundreds of billions. 1852 01:31:54,514 --> 01:31:56,482 We will recover most of it, maybe all of it. 1853 01:31:56,516 --> 01:31:59,610 Kaptur: The Democrats became 1854 01:31:59,652 --> 01:32:03,179 the delivery man for a bill 1855 01:32:03,222 --> 01:32:05,554 for the Republican president. 1856 01:32:05,591 --> 01:32:09,083 The presidents and presidents- to-be made phone calls 1857 01:32:09,128 --> 01:32:12,256 and members-- I know at least two members 1858 01:32:12,298 --> 01:32:14,698 who have an interest in the US Senate, 1859 01:32:14,734 --> 01:32:15,928 and promises were made. 1860 01:32:17,336 --> 01:32:19,531 Moore: Within days, the Congress 1861 01:32:19,572 --> 01:32:21,563 did an amazing about-face 1862 01:32:21,607 --> 01:32:25,668 and gave the banks the 700-plus billion they wanted, 1863 01:32:25,711 --> 01:32:27,576 the people be damned. 1864 01:32:27,613 --> 01:32:30,548 On this vote the yeas are 263, 1865 01:32:30,583 --> 01:32:33,882 the nays are 171. The motion is adopted. 1866 01:32:33,920 --> 01:32:38,254 It was very carefully planned to happen when it did, 1867 01:32:38,291 --> 01:32:42,318 to involve the players that it did. 1868 01:32:42,361 --> 01:32:46,354 The message was carefully handled. 1869 01:32:46,399 --> 01:32:48,424 They had Congress right where they wanted them. 1870 01:32:48,467 --> 01:32:51,595 You don't think it was just happenstance? 1871 01:32:51,637 --> 01:32:53,468 No. 1872 01:32:53,506 --> 01:32:57,067 This was almost like an intelligence operation 1873 01:32:57,109 --> 01:33:00,476 that had to be coordinated at the highest levels. 1874 01:33:00,513 --> 01:33:03,073 This whole fiasco shows you 1875 01:33:03,115 --> 01:33:07,814 that there are some forces-- 1876 01:33:07,853 --> 01:33:10,447 That are not democratic. 1877 01:33:10,489 --> 01:33:12,354 Right. That are in control. 1878 01:33:12,391 --> 01:33:15,155 Big time. 1879 01:33:15,194 --> 01:33:18,254 They did a masterful job. Very well executed. 1880 01:33:20,967 --> 01:33:22,195 Do you think it's too harsh 1881 01:33:22,234 --> 01:33:25,635 to call what has happened here a coup d'�tat? 1882 01:33:25,671 --> 01:33:27,229 A financial coup d'�tat? 1883 01:33:27,273 --> 01:33:30,401 No, because I think that's what's happened. 1884 01:33:30,443 --> 01:33:33,708 - A financial coup d'�tat? - Yeah. 1885 01:33:35,481 --> 01:33:37,073 I could agree with that. 1886 01:33:38,417 --> 01:33:40,510 I could agree with that because the people here 1887 01:33:40,553 --> 01:33:42,487 really aren't in charge. 1888 01:33:42,521 --> 01:33:45,012 Wall Street is in charge. 1889 01:33:46,792 --> 01:33:48,817 Where's our money? 1890 01:33:48,861 --> 01:33:51,261 I don't know. 1891 01:33:51,297 --> 01:33:53,629 Reporter: Citigroup is spending $50 million 1892 01:33:53,666 --> 01:33:55,293 on a luxury corporate jet. 1893 01:33:55,334 --> 01:33:57,894 You don't know? But you're the person-- 1894 01:33:57,937 --> 01:34:00,929 you're in charge of-- they put you in charge to find out. 1895 01:34:00,973 --> 01:34:02,668 Reporter: Goldman Sachs has set aside 1896 01:34:02,708 --> 01:34:05,074 6.8 billion for bonuses. 1897 01:34:05,111 --> 01:34:08,444 But Treasury followed a don't-ask-don't-tell policy. 1898 01:34:08,481 --> 01:34:10,711 They didn't ask the banks 1899 01:34:10,750 --> 01:34:12,980 what they were going to do with the money. 1900 01:34:13,019 --> 01:34:16,614 And not having asked them, the banks are not required to tell. 1901 01:34:16,656 --> 01:34:19,318 AlG poolside meetings at a Valley resort... 1902 01:34:19,358 --> 01:34:20,552 Doesn't make any sense. 1903 01:34:20,593 --> 01:34:23,289 We're getting word that 73 people 1904 01:34:23,329 --> 01:34:26,264 received at least $1 million apiece. 1905 01:34:26,298 --> 01:34:28,425 Why would the Department of Treasury 1906 01:34:28,467 --> 01:34:30,628 not require the banks to tell them 1907 01:34:30,670 --> 01:34:32,262 what they're doing with our money? 1908 01:34:32,304 --> 01:34:36,001 You're going to have to ask Secretary Paulson that question. 1909 01:34:36,042 --> 01:34:38,875 Because I've asked that question 1910 01:34:38,911 --> 01:34:42,142 in my role as head of the Congressional Oversight Panel, 1911 01:34:42,181 --> 01:34:44,274 and so far I haven't gotten an answer. Maybe you'll get a better one. 1912 01:34:44,316 --> 01:34:46,511 ( phone ringing ) 1913 01:34:46,552 --> 01:34:48,520 Woman: Good afternoon. Hank Paulson's office. 1914 01:34:48,554 --> 01:34:50,078 Yeah, this is Michael Moore. 1915 01:34:50,122 --> 01:34:51,851 I'd like to talk to Mr. Paulson. 1916 01:34:51,891 --> 01:34:53,950 - I'm sorry. Your name again? - Michael Moore. 1917 01:34:53,993 --> 01:34:55,551 - Michael Moore? - Yup. 1918 01:34:55,594 --> 01:34:58,791 - ( hangs up ) - Hello? Hello? 1919 01:34:58,831 --> 01:35:01,629 This is crazy what they're doing with our money. 1920 01:35:01,667 --> 01:35:04,431 If I could get them to actually give the money back-- 1921 01:35:04,470 --> 01:35:06,205 I'd be in favor of that. 1922 01:35:24,090 --> 01:35:26,524 We're here to get the money back for the American people. 1923 01:35:26,559 --> 01:35:28,390 I understand, sir, but you can't come in. 1924 01:35:28,427 --> 01:35:29,860 - Can you just take the bag? - No. 1925 01:35:29,895 --> 01:35:31,453 - Take it up there? - Absolutely not. 1926 01:35:31,497 --> 01:35:33,431 Fill it up. I got more bags. 1927 01:35:33,466 --> 01:35:35,263 10 billion probably won't fit in here. 1928 01:35:35,301 --> 01:35:36,461 You can't help me get the money? 1929 01:35:36,502 --> 01:35:37,662 I can't help you get the money. 1930 01:35:37,703 --> 01:35:39,898 What would happen if I made a run for it right now? 1931 01:35:42,041 --> 01:35:44,601 Moore: So I went to another bank. 1932 01:35:45,811 --> 01:35:46,869 We want our money back. 1933 01:35:46,912 --> 01:35:48,470 I went to all the banks. 1934 01:35:48,514 --> 01:35:50,778 - You've seen this guy? - Yeah. 1935 01:35:50,816 --> 01:35:53,148 Okay, we're here to make a citizen's arrest, actually. 1936 01:35:53,185 --> 01:35:55,585 Just drop it from the windows. 1937 01:35:55,621 --> 01:35:58,181 And everywhere I went... 1938 01:35:59,925 --> 01:36:01,222 I got the same reaction. 1939 01:36:01,260 --> 01:36:03,421 We're actually here to make a citizen's arrest 1940 01:36:03,462 --> 01:36:04,952 of the entire board of directors 1941 01:36:04,997 --> 01:36:06,123 and the executives here. 1942 01:36:06,165 --> 01:36:07,530 Why don't you speak to my supervisor? 1943 01:36:07,566 --> 01:36:09,397 - That's him right here. - Where's he at? 1944 01:36:09,435 --> 01:36:11,232 - In the white shirt? Blue tie? - Yup. 1945 01:36:11,270 --> 01:36:12,635 - That's him. - Receding hairline? 1946 01:36:12,671 --> 01:36:16,232 They're using the money to buy other companies. 1947 01:36:16,275 --> 01:36:18,937 This is our money. 1948 01:36:18,978 --> 01:36:21,003 Oh, this is a police officer. 1949 01:36:21,046 --> 01:36:23,173 I wanted to make a citizen's arrest of the CEO. 1950 01:36:23,215 --> 01:36:25,410 - Mr. Blankfein. - ( chuckles ) 1951 01:36:25,451 --> 01:36:28,215 But you're here, so maybe you could help me. 1952 01:36:28,254 --> 01:36:31,712 - Let's do it outside. - $170 billion of our taxpayer money. 1953 01:36:31,757 --> 01:36:34,988 - You're not allowed in the building, sir. - But I'm here to make an arrest. 1954 01:36:35,027 --> 01:36:37,427 - I'm here to make an arrest. - Make it outside, sir. 1955 01:36:37,463 --> 01:36:38,896 I can't make it outside. They're upstairs. 1956 01:36:38,931 --> 01:36:40,831 I'll make an arrest, sir. 1957 01:36:40,866 --> 01:36:42,527 You can arrest somebody? 1958 01:36:42,568 --> 01:36:44,365 If you can arrest somebody, I can arrest somebody. 1959 01:36:44,403 --> 01:36:45,802 Sir, leave the building, sir. 1960 01:36:45,838 --> 01:36:47,203 Who else do you want to leave the building? 1961 01:36:47,239 --> 01:36:49,036 Your cameraman and your crew. Come on out, sir. 1962 01:36:49,074 --> 01:36:51,941 They don't speak English. Donde? 1963 01:36:53,579 --> 01:36:56,241 These guys have broken so many laws, you know? 1964 01:36:56,282 --> 01:36:59,877 This is money. It's theft, it's fraud. 1965 01:37:09,395 --> 01:37:11,795 I'm gonna take it back to the US Treasury 1966 01:37:11,831 --> 01:37:13,628 right in this car. 1967 01:37:13,666 --> 01:37:16,294 It's safe. You can trust me. 1968 01:37:17,870 --> 01:37:19,572 ( grunts ) 1969 01:37:19,572 --> 01:37:19,697 ( grunts ) 1970 01:37:19,738 --> 01:37:23,037 There's just these little hints 1971 01:37:23,075 --> 01:37:27,512 that the unimaginable 1972 01:37:27,546 --> 01:37:32,176 could occur, which is that... 1973 01:37:34,620 --> 01:37:37,714 people in general 1974 01:37:37,756 --> 01:37:40,384 in the United States could actually 1975 01:37:40,426 --> 01:37:43,827 become angry 1976 01:37:43,863 --> 01:37:45,763 at the wealthy. 1977 01:37:45,798 --> 01:37:49,290 Shame on you! Shame on you! 1978 01:37:49,335 --> 01:37:51,496 Shawn: People who became rich in this country 1979 01:37:51,537 --> 01:37:55,633 in the last decades were not even making 1980 01:37:55,674 --> 01:37:59,508 the things that everybody loved. 1981 01:37:59,545 --> 01:38:02,946 They were playing games 1982 01:38:02,982 --> 01:38:05,382 that ended up actually harming everybody. 1983 01:38:05,417 --> 01:38:09,148 ( chanting ) 1984 01:38:09,188 --> 01:38:13,682 So some kind of disease has entered into the economy. 1985 01:38:15,294 --> 01:38:18,957 Moore: It was unusual for Americans to turn against the rich 1986 01:38:18,998 --> 01:38:22,229 because of the carrot that had always been held out in front of us, 1987 01:38:22,268 --> 01:38:25,465 that we too could be one of them someday. 1988 01:38:25,504 --> 01:38:28,268 People were starting not to believe that. 1989 01:38:28,307 --> 01:38:31,003 And that frightened the rich. 1990 01:38:31,043 --> 01:38:35,139 Because off in the distance they heard something coming 1991 01:38:35,180 --> 01:38:37,842 and it wasn't another dry martini. 1992 01:38:37,883 --> 01:38:40,647 It was the friggin' people. 1993 01:38:42,554 --> 01:38:44,920 We are ready to take this country 1994 01:38:44,957 --> 01:38:47,118 in a fundamentally new direction. 1995 01:38:47,159 --> 01:38:49,753 That's what's happening in America right now. 1996 01:38:49,795 --> 01:38:53,458 Change is what's happening in America. 1997 01:38:53,499 --> 01:38:55,160 Moore: Holy shit. 1998 01:38:55,200 --> 01:38:58,192 This was not what Wall Street wanted. 1999 01:38:58,237 --> 01:39:00,728 What if he won? 2000 01:39:00,773 --> 01:39:03,606 What would happen to their way of life? 2001 01:39:05,444 --> 01:39:07,878 So they did what they always do. 2002 01:39:07,913 --> 01:39:10,074 They threw as much money at him as they could. 2003 01:39:11,784 --> 01:39:15,220 Goldman Sachs became his number-one private contributor 2004 01:39:15,254 --> 01:39:18,087 with nearly $1 million in contributions. 2005 01:39:19,925 --> 01:39:23,520 But yet they still weren't sure what he would do. 2006 01:39:23,562 --> 01:39:26,463 How did he really feel about them 2007 01:39:26,498 --> 01:39:28,968 and their way of life? 2008 01:39:28,968 --> 01:39:32,870 My attitude is that if the economy is good for folks from the bottom up, 2009 01:39:32,905 --> 01:39:34,065 it's gonna be good for everybody. 2010 01:39:37,176 --> 01:39:39,269 Senator Obama is running to spread the wealth. 2011 01:39:39,311 --> 01:39:41,745 Joe the Plumber said to him 2012 01:39:41,780 --> 01:39:44,374 that plan sounded like socialism. 2013 01:39:44,416 --> 01:39:46,816 ( Russian music playing ) 2014 01:39:47,987 --> 01:39:49,511 Joe: I love America. 2015 01:39:49,555 --> 01:39:53,355 I want to make sure it stays a democracy and not a socialist society. 2016 01:39:56,695 --> 01:40:00,096 I really think he's gonna bring socialism if he gets half a chance. 2017 01:40:00,132 --> 01:40:02,862 I don't trust Obama at all. 2018 01:40:04,470 --> 01:40:06,438 I left Europe four decades ago 2019 01:40:06,472 --> 01:40:08,736 because socialism has killed opportunities there. 2020 01:40:08,774 --> 01:40:12,471 "Someone is going to have to give up a piece of their pie 2021 01:40:12,511 --> 01:40:14,741 so someone else can have more." 2022 01:40:14,780 --> 01:40:16,111 I want all my pie. 2023 01:40:17,583 --> 01:40:20,484 Barack Obama is a socialist, it's that simple. 2024 01:40:24,323 --> 01:40:27,156 Moore: The scare campaign wasn't working. 2025 01:40:27,192 --> 01:40:30,821 In fact, the more they called Obama a socialist, 2026 01:40:30,863 --> 01:40:33,923 the more he went ahead in the polls. 2027 01:40:33,966 --> 01:40:36,662 And by using the word so much, 2028 01:40:36,702 --> 01:40:40,968 it made a new generation curious about what that was. 2029 01:40:41,006 --> 01:40:43,634 For instance, few of them knew 2030 01:40:43,675 --> 01:40:46,371 there was actually a socialist in the United States Senate. 2031 01:40:46,412 --> 01:40:49,643 Of course he was from the gay state of Vermont. 2032 01:40:49,681 --> 01:40:51,046 ( moos ) 2033 01:40:51,083 --> 01:40:52,778 You say that you're a socialist. Tell me what that means. 2034 01:40:52,818 --> 01:40:54,683 I'm a democratic socialist, 2035 01:40:54,720 --> 01:40:57,450 which means that the function of government is to represent 2036 01:40:57,489 --> 01:40:58,922 middle income and working people 2037 01:40:58,957 --> 01:41:01,323 rather than just the wealthy and the powerful. 2038 01:41:01,360 --> 01:41:03,225 One of the things that we've done here, 2039 01:41:03,262 --> 01:41:06,060 we've become very religious in worshipping greed. 2040 01:41:06,098 --> 01:41:08,430 We put on the front pages of the magazines 2041 01:41:08,467 --> 01:41:10,059 guys who have made billions of dollars. 2042 01:41:10,102 --> 01:41:12,730 We ignore the cops, the firemen, the teachers, the nurses 2043 01:41:12,771 --> 01:41:15,968 who every day are doing so much in improving the lives of people. 2044 01:41:16,008 --> 01:41:17,407 We've got to change our value system. 2045 01:41:17,443 --> 01:41:20,207 Moore: Hmm, that doesn't sound too bad. 2046 01:41:20,245 --> 01:41:24,306 I mean, it sounds like something maybe we should try. 2047 01:41:24,349 --> 01:41:26,044 Within a few months, 2048 01:41:26,085 --> 01:41:28,144 the Rasmussen poll reported 2049 01:41:28,187 --> 01:41:30,781 that only 37% of young adults 2050 01:41:30,823 --> 01:41:33,621 now favor capitalism over socialism. 2051 01:41:33,659 --> 01:41:36,992 I hope the economy will... 2052 01:41:37,029 --> 01:41:39,259 ( people cheering ) 2053 01:41:39,298 --> 01:41:42,199 At 11 :00 we project Barack Obama 2054 01:41:42,234 --> 01:41:44,862 President-Elect of the United States of America. 2055 01:41:44,903 --> 01:41:47,497 ( cheering ) 2056 01:42:18,570 --> 01:42:21,004 Moore: Just two years earlier 2057 01:42:21,039 --> 01:42:23,234 had anyone predicted this moment, 2058 01:42:23,275 --> 01:42:25,835 they would have been considered crazy. 2059 01:42:27,112 --> 01:42:29,205 But that's how fast things change. 2060 01:42:31,884 --> 01:42:34,375 It was in an instant 2061 01:42:34,419 --> 01:42:38,048 a farewell to the old America. 2062 01:42:41,059 --> 01:42:44,688 The country was electrified by his victory. 2063 01:42:44,730 --> 01:42:47,563 And suddenly people were inspired 2064 01:42:47,599 --> 01:42:50,469 to do things they never would have done before. 2065 01:42:51,370 --> 01:42:53,099 Like the sheriff in Detroit 2066 01:42:53,138 --> 01:42:55,936 who decided it was time to break the law 2067 01:42:55,974 --> 01:42:58,067 in order to help the people. 2068 01:42:58,110 --> 01:43:00,135 Warren Evans: Doesn't it seem kind of strange to you 2069 01:43:00,179 --> 01:43:03,444 they would seek a government bailout? I thought that's not what they do. 2070 01:43:03,482 --> 01:43:06,576 1-0-1 radio. 2071 01:43:06,618 --> 01:43:10,179 I thought the free market is you sink or swim. 2072 01:43:10,222 --> 01:43:13,623 I just saw them sink and cry like babies 2073 01:43:13,659 --> 01:43:16,219 for assistance from everybody else. 2074 01:43:17,396 --> 01:43:21,526 Today I will be stopping all mortgage foreclosure sales 2075 01:43:21,567 --> 01:43:23,228 in Wayne County. 2076 01:43:23,268 --> 01:43:26,897 I cannot in clear conscience allow anymore families 2077 01:43:26,939 --> 01:43:29,464 to lose their homes through foreclosure sales. 2078 01:43:29,508 --> 01:43:32,272 Moore: What must the banks have thought 2079 01:43:32,311 --> 01:43:35,371 seeing the law that was set up to protect their interests 2080 01:43:35,414 --> 01:43:37,143 being subverted? 2081 01:43:37,182 --> 01:43:40,174 Do you think the free market has failed Detroit? 2082 01:43:40,219 --> 01:43:43,450 Well, I mean, I think that the free market failed the country. 2083 01:43:43,488 --> 01:43:45,757 You know, this is crazy. 2084 01:43:45,757 --> 01:43:47,725 Neighborhoods that are completely destroyed 2085 01:43:47,759 --> 01:43:50,091 because too many homes have been foreclosed. 2086 01:43:50,128 --> 01:43:53,188 And then you wonder, is this really America 2087 01:43:53,232 --> 01:43:55,291 or is this a third-world country? 2088 01:43:55,334 --> 01:43:56,824 Exactly what are we doing here? 2089 01:43:56,868 --> 01:44:00,998 Until things get so bad that people can do nothing but protest, 2090 01:44:01,039 --> 01:44:03,007 and then those are called revolutions. 2091 01:44:03,041 --> 01:44:07,034 Moore: And sometimes revolutions begin 2092 01:44:07,079 --> 01:44:08,307 in unlikely places. 2093 01:44:08,347 --> 01:44:10,212 Wake up. 2094 01:44:10,249 --> 01:44:11,910 Moore: Living in the back of a truck 2095 01:44:11,950 --> 01:44:16,148 after a bank foreclosed on the home they had owned for 22 years, 2096 01:44:16,188 --> 01:44:19,589 the Trody family of Miami, with the help of their neighbors, 2097 01:44:19,625 --> 01:44:22,059 took matters into their own hands. 2098 01:44:22,094 --> 01:44:25,086 On behalf of this family and this community, 2099 01:44:25,130 --> 01:44:28,566 we liberate this home for this family. 2100 01:44:28,600 --> 01:44:30,500 Cut the sign down. Take it off. 2101 01:44:30,535 --> 01:44:32,799 - ( applause ) - Yay! 2102 01:44:32,838 --> 01:44:35,568 When I say community, y'all say power. 2103 01:44:35,607 --> 01:44:36,904 - Community! - Power! 2104 01:44:36,942 --> 01:44:38,000 - Community! - Power! 2105 01:44:38,043 --> 01:44:39,340 - Community! - Power! 2106 01:44:39,378 --> 01:44:40,902 - Community! - Power! 2107 01:44:40,946 --> 01:44:42,743 - Community! - Power! 2108 01:44:42,781 --> 01:44:45,147 Moore: It wasn't long before the guy from the bank 2109 01:44:45,183 --> 01:44:47,378 who had evicted them came back. 2110 01:44:47,419 --> 01:44:49,148 See this? 2111 01:44:49,187 --> 01:44:50,848 I want you to go ahead and take a picture of that. 2112 01:44:50,889 --> 01:44:53,289 You're trespassing. 2113 01:44:53,325 --> 01:44:55,850 We did an eviction here and the people went back inside the property. 2114 01:44:55,894 --> 01:44:58,556 Yes. So I need police assistance. 2115 01:44:58,597 --> 01:45:00,155 When all these houses are empty 2116 01:45:00,198 --> 01:45:02,598 the value of everybody else's house goes down. 2117 01:45:02,634 --> 01:45:05,728 So if you can keep these people in this house 2118 01:45:05,771 --> 01:45:08,001 that will help not only them... 2119 01:45:08,040 --> 01:45:11,009 So you see, the situation is that the people-- 2120 01:45:11,043 --> 01:45:13,034 if the bank lets them go back inside, 2121 01:45:13,078 --> 01:45:16,570 then the bank misses the opportunity to sell the house to somebody else. 2122 01:45:16,615 --> 01:45:19,243 The banks are selling so many houses right now. 2123 01:45:19,284 --> 01:45:22,776 Well, if the bank lets everybody get back inside the house for free-- 2124 01:45:22,821 --> 01:45:24,755 Then people will have places to live. 2125 01:45:24,790 --> 01:45:27,520 Moore: People fighting back was an unusual sight. 2126 01:45:27,559 --> 01:45:30,585 So nine police cars responded to the call. 2127 01:45:30,629 --> 01:45:32,620 Considering the neighborhood, 2128 01:45:32,664 --> 01:45:34,894 the response time was impressive. 2129 01:45:34,933 --> 01:45:36,833 - You are not in charge. - I'm not saying I'm in charge. 2130 01:45:36,868 --> 01:45:39,359 I'm saying she doesn't want to be isolated. You don't have to answer any questions. 2131 01:45:39,404 --> 01:45:41,599 You don't have to say anything to them, okay? 2132 01:45:41,640 --> 01:45:43,540 Moore: But the Trodys stood their ground. 2133 01:45:43,575 --> 01:45:46,169 We don't have nowhere else to go. 2134 01:45:46,211 --> 01:45:49,112 - This was the backup plan. - We're forced to live inside of a truck. 2135 01:45:49,147 --> 01:45:52,116 This was our plan B. We don't have no plan C. 2136 01:45:52,150 --> 01:45:54,618 That is our grandma and it's not right. 2137 01:45:54,653 --> 01:45:57,144 She's been in this house for 22 years and y'all gonna put her out? 2138 01:45:57,189 --> 01:45:59,180 How do you feel putting people out of their homes 2139 01:45:59,224 --> 01:46:01,351 every single frickin' day? 2140 01:46:01,393 --> 01:46:03,793 You should rather be home instead of do something like that. 2141 01:46:03,829 --> 01:46:07,162 Where is the money the federal government put in the bank? 2142 01:46:07,199 --> 01:46:11,158 We should be telling you that you're trespassing because this is our house. 2143 01:46:11,203 --> 01:46:13,728 ( crowd yelling ) 2144 01:46:17,509 --> 01:46:20,808 Rooted like a tree, rooted like a tree 2145 01:46:20,846 --> 01:46:23,337 We are here 2146 01:46:23,382 --> 01:46:26,351 Stand up strong... 2147 01:46:26,385 --> 01:46:28,945 Let's go. 2148 01:46:28,987 --> 01:46:31,012 - We did good. We did good. - All right. 2149 01:46:31,056 --> 01:46:34,355 Moore: The police and the man from the bank were sent packing. 2150 01:46:34,393 --> 01:46:36,588 Ain't no power like the power of the people. 2151 01:46:36,628 --> 01:46:38,892 And the power of the people don't stop. Say what? 2152 01:46:38,930 --> 01:46:41,558 Ain't no power like the power of the people. 2153 01:46:41,600 --> 01:46:44,160 And the power of the people don't stop. Say what? 2154 01:46:44,202 --> 01:46:46,864 Don't leave your home. 2155 01:46:46,905 --> 01:46:48,270 Because you know what? 2156 01:46:48,306 --> 01:46:50,570 When those companies say they have your mortgage, 2157 01:46:50,609 --> 01:46:53,544 unless you have a lawyer that can put his finger 2158 01:46:53,578 --> 01:46:56,069 or her finger on that mortgage, you don't have that mortgage. 2159 01:46:56,114 --> 01:47:00,073 And you're gonna find that they can't find the paper up there on Wall Street. 2160 01:47:00,118 --> 01:47:04,111 So I say to the American people, you be squatters in your own homes. 2161 01:47:04,156 --> 01:47:06,681 Don't you leave in Ohio and Michigan, 2162 01:47:06,725 --> 01:47:08,886 in lndiana and lllinois and all these other places 2163 01:47:08,927 --> 01:47:11,020 where our people are being treated like chattel. 2164 01:47:11,062 --> 01:47:14,225 Andthis Congress is stymied. 2165 01:47:14,266 --> 01:47:15,563 Moore: Wow. 2166 01:47:15,600 --> 01:47:18,398 It's not every day you get to see a member of Congress 2167 01:47:18,437 --> 01:47:21,173 encouraging open rebellion. 2168 01:47:21,173 --> 01:47:23,403 Back in Chicago, 2169 01:47:23,442 --> 01:47:25,808 the workers at Republic Windows & Doors 2170 01:47:25,844 --> 01:47:27,106 had a bright idea. 2171 01:47:28,747 --> 01:47:31,079 They decided that on second thought, 2172 01:47:31,116 --> 01:47:34,313 it wasn't okay to be fired without notice, 2173 01:47:34,352 --> 01:47:37,446 to be denied their vacation and severance pay 2174 01:47:37,489 --> 01:47:40,515 and to have their medical benefits cut off. 2175 01:47:42,627 --> 01:47:45,323 So they came up with a plan. 2176 01:47:45,363 --> 01:47:48,298 Tell Bank of America and the owners of the company 2177 01:47:48,333 --> 01:47:50,824 that it was a new day in America. 2178 01:47:50,869 --> 01:47:52,803 They weren't going to leave the building 2179 01:47:52,838 --> 01:47:56,137 until they were paid what they were owed. 2180 01:47:56,174 --> 01:48:00,133 Yes, it was a good old fashioned sit-down strike. 2181 01:48:02,914 --> 01:48:05,212 Man: We understand that perhaps 2182 01:48:05,250 --> 01:48:08,515 some bad business deals were made. 2183 01:48:08,553 --> 01:48:11,784 But guess what? We don't make business deals. 2184 01:48:11,823 --> 01:48:14,087 We make windows and doors. 2185 01:48:14,125 --> 01:48:16,059 Why should we be punished? 2186 01:48:28,607 --> 01:48:30,939 Moore: The union organizers and the workers 2187 01:48:30,976 --> 01:48:34,673 prepared for a police assault that was sure to come. 2188 01:48:34,713 --> 01:48:37,341 I'm gonna take the chance. 2189 01:48:37,382 --> 01:48:39,282 You're prepared to be arrested? 2190 01:48:39,317 --> 01:48:41,547 I am prepared to be arrested if it's necessary. 2191 01:48:41,586 --> 01:48:45,545 We've been here since yesterday and we aren't going anywhere. 2192 01:48:45,590 --> 01:48:47,421 We are committed to this. 2193 01:48:47,459 --> 01:48:49,791 Moore: It wasn't long before the media showed up. 2194 01:48:49,828 --> 01:48:52,729 And given the mood of the country toward the bailout, 2195 01:48:52,764 --> 01:48:56,723 even the TV anchors had run out of sympathy for the banks. 2196 01:48:56,768 --> 01:49:00,499 In Chicago, a group of factory workers watched like the rest of us 2197 01:49:00,539 --> 01:49:03,167 as taxpayers bailed out the financial industry. 2198 01:49:03,208 --> 01:49:06,473 Now these laid-off workers are demanding Bank of America 2199 01:49:06,511 --> 01:49:09,207 spend some of its bailout money on them. 2200 01:49:09,247 --> 01:49:11,340 It says "Bank Robbers of America." 2201 01:49:11,383 --> 01:49:14,546 Look, if we the taxpayers are going to provide 2202 01:49:14,586 --> 01:49:17,578 a bailout for companies like Bank of America, 2203 01:49:17,622 --> 01:49:20,489 then the least they can do is use those funds 2204 01:49:20,525 --> 01:49:23,016 on American workers and companies. 2205 01:49:23,061 --> 01:49:26,189 Woman: $25 billion to Bank of America. 2206 01:49:26,231 --> 01:49:28,597 How do people sleep at night when they act like that? 2207 01:49:28,633 --> 01:49:30,225 I don't get it. 2208 01:49:30,268 --> 01:49:32,168 Because what's the point of bailing them out 2209 01:49:32,203 --> 01:49:34,865 if there aren't any jobs? 2210 01:49:34,906 --> 01:49:37,431 Moore: The strike went on day after day. 2211 01:49:37,475 --> 01:49:40,239 The police had not yet come. 2212 01:49:40,278 --> 01:49:43,076 But the son of a Chicago steelworker did. 2213 01:49:43,114 --> 01:49:47,278 He just also happened to be the bishop in Chicago. 2214 01:49:47,319 --> 01:49:49,310 Ladies and gentlemen, 2215 01:49:49,354 --> 01:49:51,549 I am Bishop James Wilkowski. 2216 01:49:51,590 --> 01:49:54,787 I know that you are all undergoing 2217 01:49:54,826 --> 01:49:56,851 a great trial. 2218 01:49:56,895 --> 01:49:59,625 You are teaching 2219 01:49:59,664 --> 01:50:02,030 to our young people 2220 01:50:02,067 --> 01:50:04,092 that it is just 2221 01:50:04,135 --> 01:50:07,696 to challenge that which is unfair. 2222 01:50:08,740 --> 01:50:12,836 I grew up on the far southeast side of Chicago 2223 01:50:12,877 --> 01:50:14,606 and I saw what happened 2224 01:50:14,646 --> 01:50:17,979 when all the steel mills disappeared. 2225 01:50:18,016 --> 01:50:20,883 And I saw the impact that it had 2226 01:50:20,919 --> 01:50:22,682 on families. 2227 01:50:22,721 --> 01:50:24,621 But this time 2228 01:50:24,656 --> 01:50:26,715 we are with you. 2229 01:50:26,758 --> 01:50:29,693 And we will not abandon you. 2230 01:50:29,728 --> 01:50:31,719 In the name of the Father and the Son 2231 01:50:31,763 --> 01:50:33,390 and the Holy Spirit. Amen. 2232 01:50:33,431 --> 01:50:35,399 The body of Christ. 2233 01:50:37,702 --> 01:50:39,329 The body of Christ. 2234 01:50:41,873 --> 01:50:43,397 The body of Christ. 2235 01:50:45,744 --> 01:50:48,542 President Obama: When it comes to the situation 2236 01:50:48,580 --> 01:50:51,981 here in Chicago with the workers 2237 01:50:52,017 --> 01:50:55,885 who are asking for the benefits and payments 2238 01:50:55,920 --> 01:50:58,616 that they have earned, I think they're absolutely right. 2239 01:50:58,657 --> 01:51:02,184 ( cheering ) 2240 01:51:02,227 --> 01:51:05,492 What's happening to them is reflective of what's happening 2241 01:51:05,530 --> 01:51:07,498 across this economy. 2242 01:51:07,532 --> 01:51:10,160 Reporter: He said, "What's happening to them is reflective of what's happening..." 2243 01:51:10,201 --> 01:51:12,135 Reporter #2: He said what is happening to those workers 2244 01:51:12,170 --> 01:51:14,764 is reflective to what's happening across this economy. 2245 01:51:14,806 --> 01:51:17,673 I was watching Obama's press conference this morning. 2246 01:51:17,709 --> 01:51:20,007 I just got out of bed and decided 2247 01:51:20,045 --> 01:51:22,775 the best thing I could do was to feed people. 2248 01:51:22,814 --> 01:51:24,304 So I brought some food. 2249 01:51:24,349 --> 01:51:26,647 - I brought some sandwiches. - Oh, good. 2250 01:51:26,685 --> 01:51:30,485 Moore: In fact, lots of Chicagoans showed up to support the workers. 2251 01:51:30,522 --> 01:51:32,080 Reporter: The workers have become a national symbol 2252 01:51:32,123 --> 01:51:34,148 for thousands of employees laid off across the country. 2253 01:51:34,192 --> 01:51:36,422 Reporter #2: The sit-in has grabbed the attention of politicians 2254 01:51:36,461 --> 01:51:40,090 who believe it exemplifies an imbalance between a Wall Street 2255 01:51:40,131 --> 01:51:43,931 that gets government help and a Main Street that gets the shaft. 2256 01:51:43,968 --> 01:51:45,959 Moore: The question started to be asked: 2257 01:51:46,004 --> 01:51:48,472 Was this is the beginnings of a worker's revolt against Wall Street? 2258 01:51:51,076 --> 01:51:53,203 The people united. 2259 01:51:53,244 --> 01:51:55,303 We'll never be defeated. 2260 01:51:55,346 --> 01:51:59,180 Bail out workers, not the banks. Bail out workers, not the banks. 2261 01:51:59,217 --> 01:52:03,551 Moore: Pledges of financial support and food showed up by the truckload. 2262 01:52:03,588 --> 01:52:06,955 Woman: It's really beyond what we had at first initially imagined. 2263 01:52:06,991 --> 01:52:09,789 And so now we're dreaming a little bit 2264 01:52:09,828 --> 01:52:12,820 We even had a conversation-- well, what if we just tried 2265 01:52:12,864 --> 01:52:14,593 to run the factory like a cooperative? 2266 01:52:14,632 --> 01:52:16,657 We don't have any money. We're not capitalists. 2267 01:52:16,701 --> 01:52:19,795 We're having those kind of conversations 2268 01:52:19,838 --> 01:52:22,568 and the workers are thinking about it and it's a difficult thing 2269 01:52:22,607 --> 01:52:24,871 'cause, you know, if you've been told your whole life 2270 01:52:24,909 --> 01:52:28,208 that things are the way other people tell you they are, 2271 01:52:28,246 --> 01:52:30,237 to be able to think I can make it different 2272 01:52:30,281 --> 01:52:33,375 is quite a big deal. 2273 01:52:35,587 --> 01:52:38,249 We're all over the national news. Everyone is watching you 2274 01:52:38,289 --> 01:52:41,622 because they're so inspired by you. ( speaks Spanish ) 2275 01:52:44,295 --> 01:52:46,126 Moore: After six days of the sit-in 2276 01:52:46,164 --> 01:52:49,395 Bank of America decided enough was enough. 2277 01:52:49,434 --> 01:52:51,629 Better to pay off these workers now 2278 01:52:51,669 --> 01:52:55,036 and hope their little revolution goes away. 2279 01:52:55,073 --> 01:52:58,804 And so the bank and the company agreed to all the worker's demands. 2280 01:52:58,843 --> 01:53:01,744 Yes we did! Yes we did! 2281 01:53:01,780 --> 01:53:05,443 The average package for each worker 2282 01:53:05,483 --> 01:53:09,351 will be very close to $6,000. 2283 01:53:09,387 --> 01:53:12,618 But this is about more than just money. 2284 01:53:12,657 --> 01:53:16,115 It's about what can be achieved 2285 01:53:16,161 --> 01:53:20,154 when workers organize and stand up for justice. 2286 01:53:20,198 --> 01:53:22,257 Just to fight-- fight fight fight fight fight 2287 01:53:22,300 --> 01:53:24,666 just to get the most basic thing 2288 01:53:24,702 --> 01:53:26,465 that people should take for granted 2289 01:53:26,504 --> 01:53:30,304 and that's legally theirs. 2290 01:53:30,341 --> 01:53:34,345 We just fight so hard just for the most basic things in life. 2291 01:53:36,648 --> 01:53:39,776 Moore: It's a fight we knew all too well in Flint, Michigan. 2292 01:53:39,818 --> 01:53:43,185 For it was here that my uncle and his fellow workers 2293 01:53:43,221 --> 01:53:45,951 first brought down the mighty corporate interests 2294 01:53:45,990 --> 01:53:47,651 that dominated their lives. 2295 01:53:49,894 --> 01:53:53,295 It was the day before New Year's Eve in 1936. 2296 01:53:53,331 --> 01:53:56,767 Hundreds of men and women took over the GM factories in Flint 2297 01:53:56,801 --> 01:53:59,133 and occupied them for 44 days. 2298 01:54:01,005 --> 01:54:04,372 They were the first union that beat an industrial corporation. 2299 01:54:04,409 --> 01:54:06,707 And their actions eventually resulted 2300 01:54:06,744 --> 01:54:09,212 in the creation of a middle class. 2301 01:54:09,247 --> 01:54:12,375 But back in these days of the Flint sit-down strike, 2302 01:54:12,417 --> 01:54:16,751 the police and the company thugs were not going to just stand by. 2303 01:54:16,788 --> 01:54:20,383 After a bloody battle one evening, the Governor of Michigan, 2304 01:54:20,425 --> 01:54:23,588 with the support of the President of the United States 2305 01:54:23,628 --> 01:54:27,428 Franklin Roosevelt, sent in the National Guard. 2306 01:54:27,465 --> 01:54:31,492 But the guns of the soldiers weren't used on the workers. 2307 01:54:31,536 --> 01:54:33,197 They were pointed at the police 2308 01:54:33,238 --> 01:54:35,206 and the hired goons, 2309 01:54:35,240 --> 01:54:38,767 warning them to leave these workers alone. 2310 01:54:39,911 --> 01:54:42,744 For Mr. Roosevelt believed that the men inside 2311 01:54:42,780 --> 01:54:46,944 had a right to a redress of their grievances. 2312 01:54:48,286 --> 01:54:51,517 Seven years later, President Roosevelt was too sick 2313 01:54:51,556 --> 01:54:55,390 to go up to the Capitol and give his annual State of the Union Address. 2314 01:54:55,426 --> 01:54:57,257 Ladies and gentlemen, 2315 01:54:57,295 --> 01:55:00,162 the President of the United States. 2316 01:55:00,198 --> 01:55:04,726 It has been my custom to deliver these annual messages in person. 2317 01:55:04,769 --> 01:55:07,795 Moore: So he gave it from the White House over the radio. 2318 01:55:07,839 --> 01:55:10,899 When it was over he asked the newsreel cameras 2319 01:55:10,942 --> 01:55:14,002 to step into his room because he wanted the American people 2320 01:55:14,045 --> 01:55:17,674 to see one particular part of his speech. 2321 01:55:17,715 --> 01:55:21,344 The President of the United States then took the radical step 2322 01:55:21,386 --> 01:55:24,082 of proposing a second Bill of Rights 2323 01:55:24,122 --> 01:55:25,521 to the Constitution. 2324 01:55:25,556 --> 01:55:29,185 In our day certain economic truths 2325 01:55:29,227 --> 01:55:32,424 have become accepted as self-evident. 2326 01:55:32,463 --> 01:55:35,023 A second Bill of Rights 2327 01:55:35,066 --> 01:55:38,832 under which a new basis of security and prosperity 2328 01:55:38,870 --> 01:55:41,134 can be established for all 2329 01:55:41,172 --> 01:55:44,869 regardless of station or race or creed. 2330 01:55:44,909 --> 01:55:47,707 Among these are: 2331 01:55:47,745 --> 01:55:51,704 The right to a useful and remunerative job; 2332 01:55:51,749 --> 01:55:55,207 The right to earn enough to provide adequate food 2333 01:55:55,253 --> 01:55:56,811 and clothing and recreation; 2334 01:55:56,854 --> 01:55:59,379 The right of every farmer 2335 01:55:59,424 --> 01:56:01,858 to raise and sell his products 2336 01:56:01,893 --> 01:56:05,021 at a return which will give him and his family 2337 01:56:05,063 --> 01:56:07,429 a decent living; 2338 01:56:07,465 --> 01:56:11,401 The right of every businessman large and small 2339 01:56:11,436 --> 01:56:14,803 to trade in an atmosphere of freedom, 2340 01:56:14,839 --> 01:56:18,536 freedom from unfair competition and domination 2341 01:56:18,576 --> 01:56:21,704 by monopolies at home or abroad; 2342 01:56:21,746 --> 01:56:25,204 The right of every family to a decent home; 2343 01:56:25,249 --> 01:56:28,878 The right to adequate medical care 2344 01:56:28,920 --> 01:56:32,822 and the opportunity to achieve and enjoy good health; 2345 01:56:32,857 --> 01:56:36,190 The right to adequate protection 2346 01:56:36,227 --> 01:56:39,628 from the economic fears of old age, 2347 01:56:39,664 --> 01:56:42,155 sickness, accidents 2348 01:56:42,200 --> 01:56:44,031 and unemployment; 2349 01:56:44,068 --> 01:56:47,128 The right to a good education. 2350 01:56:47,171 --> 01:56:51,574 All of these rights spell security.. 2351 01:56:51,609 --> 01:56:54,635 And afterthis waris won, 2352 01:56:54,679 --> 01:56:58,046 we must be prepared to move forward 2353 01:56:58,082 --> 01:57:01,176 in the implementation of these rights 2354 01:57:01,219 --> 01:57:04,985 to new goals of human happiness and wellbeing. 2355 01:57:05,023 --> 01:57:09,517 For unless there is security here at home, 2356 01:57:09,560 --> 01:57:14,395 there cannot be lasting peace in the world. 2357 01:57:23,841 --> 01:57:27,140 Moore: Roosevelt would be dead in little over a year. 2358 01:57:29,947 --> 01:57:33,280 He would not live to see the end of the war. 2359 01:57:33,317 --> 01:57:37,151 Nor would there be any enactment of his new Bill of Rights. 2360 01:57:44,629 --> 01:57:47,621 Had he lived and succeeded, 2361 01:57:47,665 --> 01:57:49,997 every American, regardless of race, 2362 01:57:50,034 --> 01:57:53,162 would have had a right to a decent job... 2363 01:57:56,107 --> 01:57:57,699 a livable wage... 2364 01:58:00,278 --> 01:58:01,677 universal health care... 2365 01:58:03,714 --> 01:58:05,443 a good education... 2366 01:58:07,885 --> 01:58:10,046 an affordable home... 2367 01:58:12,190 --> 01:58:14,454 a paid vacation... 2368 01:58:18,262 --> 01:58:20,890 and an adequate pension. 2369 01:58:23,734 --> 01:58:26,328 None of this would come to pass. 2370 01:58:28,406 --> 01:58:32,740 No American would be guaranteed any of this. 2371 01:58:36,347 --> 01:58:38,975 But the people of Europe and Japan 2372 01:58:39,016 --> 01:58:41,712 got every one of these rights. 2373 01:58:41,752 --> 01:58:44,414 How did that happen? 2374 01:58:44,455 --> 01:58:49,188 After the war, the people of RooseveIt's administration 2375 01:58:49,227 --> 01:58:52,196 went overseas to help rebuild Europe. 2376 01:58:52,230 --> 01:58:56,223 During this time new constitutions were written 2377 01:58:56,267 --> 01:59:00,727 for the defeated nations of Germany, ltaly and Japan. 2378 01:59:00,771 --> 01:59:03,467 The ltalian constitution 2379 01:59:03,508 --> 01:59:06,477 guaranteed all women equal rights. 2380 01:59:06,511 --> 01:59:09,309 And thiswas 1947. 2381 01:59:09,347 --> 01:59:13,511 The German constitution said that the state has the right 2382 01:59:13,551 --> 01:59:16,987 to take over property and the means of production 2383 01:59:17,021 --> 01:59:18,921 for the common good. 2384 01:59:18,956 --> 01:59:22,016 And here's what we wrote up for the Japanese. 2385 01:59:22,059 --> 01:59:25,460 All workers have a right to organize into a union. 2386 01:59:25,496 --> 01:59:29,330 And academic freedom is guaranteed. 2387 01:59:29,367 --> 01:59:32,234 For the next 65 years 2388 01:59:32,270 --> 01:59:34,329 we would not become the country 2389 01:59:34,372 --> 01:59:36,272 that Roosevelt wanted us to be. 2390 01:59:37,441 --> 01:59:41,104 Instead, we became this... 2391 01:59:48,686 --> 01:59:51,382 I remember thinking during the Katrina flood, 2392 01:59:51,422 --> 01:59:53,356 "Why is it always the poor 2393 01:59:53,391 --> 01:59:55,222 who have to suffer the misery? 2394 01:59:55,259 --> 01:59:57,693 Why isn't it ever Bernie Madoff up on the roof 2395 01:59:57,728 --> 01:59:59,423 screaming for help? 2396 01:59:59,463 --> 02:00:01,226 Or the head of Citibank 2397 02:00:01,265 --> 02:00:04,757 or the hedge fund guys at Goldman Sachs? 2398 02:00:04,802 --> 02:00:07,896 Or the CEO at AlG?" 2399 02:00:07,939 --> 02:00:10,169 It never is these guys, is it? 2400 02:00:10,208 --> 02:00:13,939 It's always those who never got a slice of the pie 2401 02:00:13,978 --> 02:00:16,276 because these men took it all 2402 02:00:16,314 --> 02:00:18,544 and left them with nothing, 2403 02:00:18,583 --> 02:00:20,346 Ieft them to die. 2404 02:00:22,887 --> 02:00:25,685 I refuse to live in a country like this. 2405 02:00:25,723 --> 02:00:27,816 And I'm no leaving. 2406 02:00:41,739 --> 02:00:45,072 We live in the richest country in the world. 2407 02:00:45,109 --> 02:00:48,704 We all deserve a decent job, 2408 02:00:48,746 --> 02:00:52,512 healthcare, a good education, 2409 02:00:52,550 --> 02:00:55,781 a home to call our own. 2410 02:00:55,820 --> 02:00:58,345 We all deserve FDR's dream. 2411 02:00:59,991 --> 02:01:02,255 And it'sa crimethat we don't have it. 2412 02:01:03,527 --> 02:01:05,154 And we never will, 2413 02:01:05,196 --> 02:01:08,654 as long as we have a system that enriches the few 2414 02:01:08,699 --> 02:01:11,099 at the expense of the many. 2415 02:01:12,770 --> 02:01:15,330 Capitalism is an evil. 2416 02:01:15,373 --> 02:01:17,432 And you cannot regulate evil. 2417 02:01:19,543 --> 02:01:23,343 You have to eliminate it and replace it with something 2418 02:01:23,381 --> 02:01:26,407 that is good for all people. 2419 02:01:26,450 --> 02:01:30,409 And that something is called democracy. 2420 02:01:43,367 --> 02:01:45,892 Crimes have been committed in this building. 2421 02:01:45,936 --> 02:01:48,700 I am here to make a citizen's arrest. 2422 02:01:48,739 --> 02:01:52,231 Please come down and step away from the building. 2423 02:01:52,276 --> 02:01:54,471 Do not be afraid. 2424 02:01:54,512 --> 02:01:57,447 Federal prison is a nice place. 2425 02:02:01,519 --> 02:02:04,488 You know, I can't really do this anymore 2426 02:02:04,522 --> 02:02:07,514 unless those of you who are watching this in the theater 2427 02:02:07,558 --> 02:02:09,617 want to join me. 2428 02:02:09,660 --> 02:02:11,685 I hope you will. 2429 02:02:11,729 --> 02:02:14,459 And please, speed it up. 2430 02:02:16,267 --> 02:02:20,203 Arise ye workers from your slumber 2431 02:02:20,237 --> 02:02:23,638 Arise ye prisoners of want, that's right 2432 02:02:23,674 --> 02:02:27,804 For reason in revolt now thunders 2433 02:02:27,845 --> 02:02:30,746 Chains of hatred, greed and fear 2434 02:02:30,781 --> 02:02:35,241 Away with all your superstitions 2435 02:02:35,286 --> 02:02:39,279 Servile masses arise, arise 2436 02:02:39,323 --> 02:02:43,089 We'll change henceforth the old tradition 2437 02:02:43,127 --> 02:02:46,619 And spurn the dust to win the prize 2438 02:02:46,664 --> 02:02:50,498 So comrades, come on and rally 2439 02:02:50,534 --> 02:02:54,334 And the last fight let us face 2440 02:02:54,372 --> 02:02:57,830 The Internationale 2441 02:02:57,875 --> 02:03:02,005 Unites the whole darn human race 2442 02:03:02,046 --> 02:03:04,276 So comrades, come on 2443 02:03:04,315 --> 02:03:06,044 Let's go rally 2444 02:03:06,083 --> 02:03:09,814 Andthe lastlast fight let us face 2445 02:03:09,854 --> 02:03:13,255 The Internationale 2446 02:03:13,290 --> 02:03:17,556 Unitesthe whole darn human race 2447 02:03:17,595 --> 02:03:21,554 No more deluded by reaction 2448 02:03:21,599 --> 02:03:25,000 On tyrants only we'll make war 2449 02:03:25,035 --> 02:03:29,267 The soldiers too will take strike action 2450 02:03:29,306 --> 02:03:32,332 They'll break ranks and fight no more 2451 02:03:32,376 --> 02:03:36,540 And if those cannibals keep trying 2452 02:03:36,580 --> 02:03:40,175 To sacrifice us to their pride 2453 02:03:40,217 --> 02:03:44,313 Each atthe forge must do their duty 2454 02:03:44,355 --> 02:03:47,916 And we'll strike whilethe iron is hot 2455 02:03:47,958 --> 02:03:51,985 So comrades, come on, let's go rally 2456 02:03:52,029 --> 02:03:55,829 Andthe lastlast fight let us face 2457 02:03:55,866 --> 02:03:59,029 The Internationale 2458 02:03:59,069 --> 02:04:03,403 Unites the whole beautiful human race 2459 02:04:03,441 --> 02:04:07,241 So comrades, come on, let's go rally 2460 02:04:07,278 --> 02:04:11,305 Andthe lastlast fight let us face 2461 02:04:11,348 --> 02:04:14,476 The Internationale 2462 02:04:14,518 --> 02:04:20,320 Unites the whole darn human race. 2463 02:04:36,073 --> 02:04:39,042 Jesus Christ was a man 2464 02:04:39,076 --> 02:04:41,636 That traveled throughthe land 2465 02:04:41,679 --> 02:04:46,878 A carpenter true and brave 2466 02:04:46,917 --> 02:04:49,545 And he saidtothe rich 2467 02:04:49,587 --> 02:04:52,112 Give your goods to the poor 2468 02:04:52,156 --> 02:04:57,253 And they laid Jesus Christ in the grave 2469 02:04:57,294 --> 02:05:00,058 Hewenttothe sick 2470 02:05:00,097 --> 02:05:02,895 And he went to the poor 2471 02:05:02,933 --> 02:05:05,527 And hewenttothe hungry 2472 02:05:05,569 --> 02:05:08,129 Andthe lame 2473 02:05:08,172 --> 02:05:10,572 And he saidthatthe meek 2474 02:05:10,608 --> 02:05:13,475 Would inherit the wholeworld 2475 02:05:13,511 --> 02:05:18,539 And they laid Jesus Christ in the grave 2476 02:05:19,717 --> 02:05:21,548 One day Jesus stopped 2477 02:05:21,585 --> 02:05:24,383 At a rich man's door 2478 02:05:24,421 --> 02:05:29,381 What must I do to be saved? 2479 02:05:30,394 --> 02:05:32,555 Take all you own 2480 02:05:32,596 --> 02:05:35,030 And give ittothepoor 2481 02:05:35,065 --> 02:05:40,230 And they laid Jesus Christ in the grave 2482 02:05:40,271 --> 02:05:42,762 When the love of the poor 2483 02:05:42,806 --> 02:05:45,502 Shall one day turn to hate 2484 02:05:45,543 --> 02:05:48,171 When the patience of the workers 2485 02:05:48,212 --> 02:05:50,680 Gives away 2486 02:05:50,714 --> 02:05:53,740 it would better forthe rich 2487 02:05:53,784 --> 02:05:56,309 If they'd never been born 2488 02:05:56,353 --> 02:06:01,188 So they laid Jesus Christ in the grave 2489 02:06:07,097 --> 02:06:09,725 When Jesus came to town 2490 02:06:09,767 --> 02:06:12,327 All theworking folks around 2491 02:06:12,369 --> 02:06:17,602 Believed what he did say 2492 02:06:17,641 --> 02:06:20,667 But bankers and preachers 2493 02:06:20,711 --> 02:06:22,941 Nailed him tothe cross 2494 02:06:22,980 --> 02:06:27,974 And they laid Jesus Christ in the grave 2495 02:06:28,018 --> 02:06:30,782 the people held theirbreath 2496 02:06:30,821 --> 02:06:33,688 When they heard about his death 2497 02:06:33,724 --> 02:06:38,957 And everybody wondered why 2498 02:06:38,996 --> 02:06:42,159 itwasthe landlord and soldiers 2499 02:06:42,199 --> 02:06:44,326 Lawmen they had hired 2500 02:06:44,368 --> 02:06:49,635 That nailed Jesus Christ in the sky 2501 02:06:49,673 --> 02:06:52,506 We would lay Jesus Christ 2502 02:06:52,543 --> 02:06:55,171 In the grave Lord, Lord 2503 02:06:55,212 --> 02:06:59,308 We would lay Jesus Christ in the grave 2504 02:07:00,317 --> 02:07:02,911 If Jesus preached today 2505 02:07:02,953 --> 02:07:05,717 Like he preached in Galilee 2506 02:07:05,756 --> 02:07:10,591 They would lay Jesus Christ in his grave.