How Did Things Get So Bad? Bo Dietl Weighs In

This is a rush transcript from "Glenn Beck," March 26, 2009. This copy may not be in its final form and may be updated.

GLENN BECK, HOST: Didn't some have say that, you know, we were done with the politics of fear?


PRESIDENT BARACK OBAMA: We have chosen hope over fear.



VICE PRES. JOE BIDEN, UNITED STATES: Choose hope over fear.

OBAMA: That's just a fear at a time when we need hope.

Let us unite in banishing fear.

REP. BARNEY FRANK, D-MASS.: There were these fears out there.

OBAMA: Not with fear, but with hope.


BECK: Geez, there's some fears out there.

All right. Let me give you a couple of lines here. First, give me Charles Grassley. This is a hopeful line:


SEN. CHUCK GRASSLEY, R-IOWA: Come before the American people and take that deep bow and say, "I'm sorry," and then either do one of two things — resign or go commit suicide.


BECK: OK. That's hope. And then we've got Andrew Cuomo. Here it is:


NEW YORK ATTORNEY GENERAL ANDREW CUOMO: If you think you're going to take the taxpayers' money, who already got ripped off and suffered in their 401ks and IRAs and then you're going to tell the taxpayers, bail out the bankers, so the bankers can take a performance bonus with your money and make a million dollars on the way out the door, that's not going to happen.


BECK: He's just — you know, they could have hired him for the, you know, in a mafia movie. You think that's going — that ain't going to happen.

Bo Dietl, FOX News contributor, founder of Beau Dietl & Associates — Private Eyes for a Public World.

How are you, Bo?

• Video: Watch Beck's interview

BO DIETL, FOX NEWS CONTRIBUTOR: Well, Glenn, I'm like in the same position everyone is in America. The downfall, when did it all start?

BECK: Yes.

DIETL: 1999: You had a HUD secretary in there. You had two other things. You had Fannie Mae and Freddie Mac pack — whatever you want to call. They said we have to give loans. Even though we give a small amount, they don't need no money down. We'll give it to them at 3 percent.

But there is one thing they didn't tell them, a little balloon — balloonitation (ph) at the back. They stop paying $1,200 a month, two more years later, it will go up to $2,000 a month. But they didn't tell you that, you don't have income verification because we're giving you loans, we need more minorities to own houses. I don't care if they have money or not, my man Cuomo says we're going to give more loans.

BECK: Wait. This is the part I love. This is the part I absolutely love. Cuomo is coming in riding on the white horse — and you're exactly right, he was part of the problem.

DIETL: There was no — there was no checks and balances.

They're just: let's give more loans. Don't worry about how to — of course, the markets are going to continue to go up. Then we even had the banks there when they started to buy this. Well, you could do eight times the amount here. You know what, let's up it to 40 times for your balance sheets, it's going on and on.

This was the perfect storm that started in 1999 and elevated to what we have today.

When that $165 million was given out in bonuses, that didn't bother me. You had portfolio managers that were the best people there. There was only a certain amount of them was involved with this whole mortgage debacle.

What I'm saying is, what about the $170 billion that we gave them? $12 billion went to those French frogs over there in Paris, and all of a sudden they get $12 billion of our money, they'll be buying 10 cents on the dollar here in America. They'll be buying buildings in New York.

Where is the earmark on this money? This is total psycho-ness!

BECK: I think he's going to burst a blood vessel long before I will.


DIETL: You know, Glenn, you have to talk about it because people are worried about $165 million when I'm worried about $170 billion, and another $30 billion to come. Why don't we earmark it to help small businesses? What they did — what they did is they took all this money, gave it to the banks. And what they did is they started taking their balance sheets, utilizing whatever way they wanted.

Why not utilize it for small businesses? I have 550 minorities that work for me as security guards. I can't get lines of credit. I call my bank, they laugh at me. They said things are going to change; things are going to get better. When are they going to change?

BECK: Bo, here's the thing that I would like to know is — the theory is, is that we need to take money from the taxpayer, give it to the banks so the banks can then start loaning the money. Why don't they just leave the money with the people?

DIETL: Well, you know, the biggest culprits out there — who's that suntan guy out there from Cross Country Mortgage, what's his name?

BECK: Well, he was ...

DIETL: The former CEO?

BECK: What's the CEO's name, Gresh?

DIETL: Missouri or whatever his name is, he went out and took $600 million. All these people, the predatory loaners, the ones that took the financial statements, they didn't ask for any kind of financial statements, tax certificates, any kind of income verification. And what they did was they gave them a mortgage.

Oh, well, you can't make it. You're a risk. It's going to cost you $180,000 to borrow $2.6 million to buy four condos, but we'll give you some points on it. Well, I don't have the money. Don't worry; we'll put it on the loan when we lend it.

BECK: Yes. OK.

Thank you, Bo. We'll have you back again. By the way, good to see you here.

DIETL: I'm angry. Thank you.


BECK: I can tell.

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