andhat will change capitalism forever. >> why, beginning in 2005, or what happened before 2005 that brought all of this change on? ..

>> philanthropy diversity of birds, and richard fuld $200 million art collection. think abt that they e sitting on dop of $750 billion of risk and all across the stet you had people consumed with bizarre things that have nothing to do do with all the risks that were going day by day by day. >> [inaudible] >> tyid but at lehman brothers they re annihilated and they lost a lot of their

wealth. they did. but, you know, . >> i follow you on in twitter. [laughter] i noticed a comment that you made a you areorried about current financial conditions. would you care to comment o matt? >> the patient was on the operating table the patient was getting life-support a coup months ago. we gave the patient an experimental drug the quantitave easing we have neve done that and united states before it was always cutting interest rates that is what we have aays done we ner had to do uantative easing which is an experimental drug. the economy right now is on a sugar high because of all of the liquidity pumped10 but we

cannot expect the patie to run e race. that is what some people are sayingimon pricing caution that we have had a wonderful rally as in most bear markets this incredible chang the next below-market but we could go half back to the old lows then have a natural progressn? >> just to go back 53 was bad to have the sense of how will look today and the impact on the economy as it bottomed out as it see the response to the lehman failure? >> as i said earlierespise the bailouts b when a thing

i have done my best with mathematicly is when they let lehman fail, remember ag failed the three days later, mrill lynch, and made those other bailouts credibly an incredibly more expensiv because they let lehman go sunday nht seven aig had complicated risk and contracts that becae incredibly more expensive after lehman failed. ag the initial guetimates were 30 or 40 billion within a month and a half and the government telling us it will be 200 billion and some of the money goes to goldman sachs because they were on the other si of the trade. lot of bizarre sff. the failure of lehman brothers

cost u. taxpayers about $140 billion. if they had saved them, you would have seen a natural unwind of the rest. in other words, , what should have happened bank louis -- can those with bank of america geithner and paulson essentially put ken lewis in a headlock and ordered him to bail out merrill lynch. if you're going to put pple and a half block you could put the ceo of u.s. banrp and say bail out lehman brothers. that is important because you had close $700 billion worth of commercial, residential real estate, oil, gold, lehman had tons of assets. when you have a company going into a bankruptcy, there

reorganize there will come and and they're interested in selling assets and this is the most horrifying and wind in the history of all bankruptcy is. no preparation. th documents, the initial document it is only 15 pages lo. it is almost a 700 billion-dollar bankrtcy and the initial document they present to the judge in t bankruptcy court was only 15 pages. it should have been 300 pages to articulate how they would unwind the risk. after lehman failed you had the end line that was so nasty that ishy when you sell a home october november and remember how the stock market went down every day at 2:00 20400 points because lehman was then there doing the

unwind briing down the minoes literally and watching them fall and tha person many people. if they have been sed you could have a situation where the assets were sold in a more orderly and controlled way instead of the crazy and haphazard irresponsibly sold the way that they were. >> how long willt be before the market recover >> warren buffett does not even know the answer to that question. >> 10 years? to make it will n be a v-shaped recovery. a lot of people say it will but it will be more like a w-shaped and that cou take five years. >> or 10 years? >> it could. the s&p 51972 was 802 and a 1982 was 802.

sohere are periods of slow or negative growth. >> i you think having a board of directors is so important better on u.s. treasury cannot follow the money hour governnt is spending, the. >> you have to start somewhere. lehman brothes, when i explain this to patrick, he stare at me it is by 45:00 a.m. and he is scratching his head and hair is all over the place. [laughter] he said you are telling me that merri who made movies with spencer tracy. [laughte is on our board of directors.

start there. it is obvious what they were doing. they were sitting on top of this risk, they have aood thing going and they want, the avage age of the board was 74 saidhese are people from a different era, the admiral and the navy, i think going forward is john mack retires from morgan stanley since he has all of this nice though he should have a requirement that after he retires he has to me on that lehman board for three years as you can have financial experts and i would stack them with financial experts because in fact, it was a $75billion dino wit the most irresnsible poured in the world -- board in the

world. >> if they got out with the same people be working there today? >> that is a problem i have with merrill lynch. it isisgusting. merrill lynch was destroyed becaus i'm sorry, baamerica was destroyed because ken lewis did not properly understand the danger of the structure investment vehicle that bank of americaon the largest banks the has tens of innocent people of money, they were investing in products d very dangerous things now ken lewis is still the ceo of bank of americalthough he lost all of that money. that is the moral hazard and that is why i hate blouts but i also feel that if you let people go likely member others, it can hurt a lot of people. i am writing this book not

just for the 33 employees, but we wrote this @ook with the intention of main street per gram getting wonderful e-mails, twitter from people that are in the construction say forhe first time i anders stand and that makes me fe really good. [laughter] >> what about the movie? >> patrick is working on that. >> we do have the audio book. >> where are they? >> t nature of the headlock that the government officials put lewis and how they compel such a powerful private figure? >> isn't it amazing?

darrell issa, chaman of house oversight committee d t@eshearings over the last month and a half and he brought up ken lewis and ben bernanke and a paulson and you can see the tension becau no he is out of the have often made these purchases of countrywe, ken lewis the ceo of bank of america he bought countrywide first under orders and i think he bought merrill lynch second and the nature is they that we joke around but bankamerica became the fourth branch of the u.s. governmen i think he felt it was patrtic he was making good investments but he was making horrific investments theyay 50 billion for merrill lynch and if they had waited one 1/2 weeks they could have bought a net at 12. rican not explain its.

the point* was to convince the market was really worth that much. >> exactly was poker combed of -- poker game. the goal was to put everybody at these. we will solve ts crisis. out of another deep dark theory a lot of people thought they let lehman go because they were sure that t.a.r.p would be passed and i don't think it would have passed if lehman did not fail it did not pass the first vote b two days later it pass. >> will we only have three banks that we will be controlled? >> that is a problem. that is one of my great allies in the book tre is a scene where alex says there is a

meeting of so of the great people that were pushed out of lehman brothers and those that were silenced after the coup in june 2008 there asked to come back and there was a meeting with the new leadership of lehman. there is a scene in the book where they talk about the very problem you have all of these big banks and there really are not enough boutiques or creativity. they have gotten biggernd bigger and thomahave gotten bigger and alex leaned back and said these banks are not too big t fail but to bid to succeed. in other words, citigroup, bank of america, they have become so big that you canno have a ceo analyze all of the rest. that is e of the dangers part of that is why i hope

they force a lot of these banks to break up into smaller banks see you can compartmentalize risk. >> whoever that woman was with the u.s. treasurer with chase and citigroup and jpmorgan because we have their credit cards, we support them and we are part of the problem. we should go to the credit union and suprt the smaller banks. >> yes. that is one of a great things that patrick does in t book is he articulates so beautiful d is employee the 21st century securitization process. when my dad bought our first time he sat face-to-face with a banker and it was a member of themunity, involved in sports and charities. what the 21st century brought us was securitizations the we have a lender and

iceland lending money through lehman to a mortgage broker thej eventually to some bus driver and newport beach living in a $300,000 from that has note and come verified on the mortgage application. but wdo need to go back to the smaller banks. >> there was one with a nine jim mortga wendy toeople with know income and no assets. [laughter] >> 400,003 year bus driver because he did not have to put down his and come. cupation? bus driver income? 400,000. then makes a two a did $50,000 check and take out mortgages they could not possibly pay back. e people that lent the money the brokerage house did not care because they sold it to

lehman and lehman did not care because they sol it to iceland. this poor guy who cannot pay his mortgage, he does not know who. it could be walrus. [laughter] >> i was listening to patrick and he was very informative and dot educational presentation and there was a part whe youalk about stock in calornia and in our country we have aot of crazy lending all over the place but we he pockets for it is extremely concentrated. one of those places is stock in. you were talking iraq a sce when things started to break in 20,083rd you have people leaving homes and taking the copp wires and everythg possible the refrigerator putting them in the back of the truck and you have

literally traffic lights, a traffic jams at 2:00 in the morning people trying to get out of stockton. stobkton, california. east of san francisco. there is a massive asparagus patch. 10 by 20 miles they've loaded down and put of basically a city a massive sprawling because all of these people, the whole place. they quickly realized something was not right when they have the highest amount of the literacy and the highest amount of crime in any county in the entire country. then when the mortges went up from 800 up at 3-1/2

thousand, nobody could payo they left free trader, a washing machine, dreier, carpets, drei er. we heard the stories on the trading floor. we heard these late 2000's in thfirst quarter 2007 restarted to hear and late 2006 he would hear of early defaults we're watching these because after that meeting, i promised myself and i promised and about level watch for these warning signs and the early payment defaults. that is the measurement of the amou of people that are not even making the first mortgage payment. it was breaking late 2006. that is crazy if they cannot even make the first one. that is trouble. [laughter] >> it is strange there we people who were very clever

people who blew the whistle very quickly at lehn. somebody said what is going on here? en another week goes by and they say wis happening? and he will not say if but he was right the thick of the warning group of the people who were actually blowing the whistle and saying this is lunacy. he had a front-row seat at this. and he was one of the matadors trying to stop the raging bull. and failed. >> thank you so much. we will have an opportunity for you to sn t bookspan i figure to c-span2 come down here. i hope you enj the lobster

roll after we are done a [applause]

>> following the tragic events september 11, 2001, tom ridge became the first secretary of the u.s. department ofommon security. the creation of the 15th cabinet department march the largest reorganization of the govement since the truman administration and another call to service for the former soldier, conessmen and governor of pennsylvania. before september 11 tom ridge was twice elected governor of pennsylvania and serd as the

43rd governor from 1995 through 20. governor ridge w raised in a public housing in erie pennsylvania and earned a scholarship to harvardnd graduated with honors in 1967. he was one of the first of vietnam combat veterans ected to the u.s. house of representatives and overwhelmingly reelect by pennsylvania voters five times. please join me in welcoming governor tom ridge [applause] governor ridge come yearbook has taken the media and the press and the public by storm. one of the main thhngs people have been focusing on that you have focused on this many times before the last couple-- , you state you were

presred by donald rumsfeld and john ashcroft before the election to raise the terror alert level. can you state at actually happened? >> thank you. i want to be very,ery clear. other people say that i say in thbook that i was pressured. but and care for reading of the book by what hope that you would conclude that admitted the there is a passage to really have an imagination you ca conclude that is what it says recalls in my mind a gger issue that i do with the secretary. i will not second-guess the pele that interpreted that y they are entitled, but one of the biggest challenges i had as secretary is keeping the public informed and keeping the security with whom we doubt that the federal and stat and local levels informed of theeed to add

additional measuresf security. i can recall gog out on several locations with attorn general ashcroft and director moller and before we had the warning system, say we believe the threat tomorrow is greater than the threat today of a terrorist attack. be alert. be aware. the media wou scratchheir heads, the public would wonder what are they talking about? wateryupposed to do? we would conclude the press conference. after one of those i turned to a trusted aide and said w have to do something about this and as a result was the color coded homeland advisory threat advisory system. should be tellers, numbers, alphabet, i don't know. abc, 123, that is not as important as what those

signal. everybody was a signal that a pre-desbribe the levelf security should be built, a prearranged coming if we go what you needo do these additional things. that was the advisory system. before thats what was used this is the confusion iaid as secretary and national broadcasting and i tried to explain inhe book, nobody, not the president come under the secrety of the department of homeland security can unilaperally raise the threat level. nobody could be pressured to raise the threat level. if you had a youtube video of some of these discussions you do their see some of the president's homeland security cabinetround his adviser. the secretaries of state of

defense, attorney genal, fbi director, cia director and others w would see the intelligence that merited the collective review to see if there was a consensus nobody was never threatened. i was never pressured. did we disagree? yes. of the passage referto the weekend before the presidential election dramatic that it was the weekend before it was the presidential election not different than any other elections when all the parties were called together to decide if they have traise the threat of a with pre-described security and america. and win in a thing of some of bin laden was sending tapes little like america or care for ou value system.

that is not news. was there more to it? this is also with the drama associated with the sam year a uple of months after a terrorist event in spain alter the outcome of that election. so there were a lot of things going on but no one not added a time on this oasion or any other which youon't know out because w did not raise the threat level when we got this group together. the consensus is it wasot ough to raise the threat level. nobody pressured anybody. that was the consensus prefer it is a tough judge and a tough call and after writing my book that after all said and done wondering why som people are arguing. they were so insistent. is the politics? security? something else? that is a far farry from

suggesting anybody was pressured orolitics was used dung the time i was secretary to raisehe threat level. end ofry. >> just briefly, why was your conclusion different four days not to raise the threat level? >> that is the beauty of the syst. we all have our own intelligence chiefs and the networks andhose who sit next u.s and discuss with us the importance and relevance within need to use that to put america on dealer. thdifferences of opinion they call it competitive inteigence. the mayor look at a different set of facts with a different conclusion. it i like witnesses in the auto accident like supreme court opinions, you're allowed to look at a different situation and come up with a

different conclusion by regret to there are some people but suggested am second-guessing my colleagues i do not regret using at the end of my book w@at i csider to be a dramatic momen why people wonder is there something else? if i am missing something and mething goesown, who is cuable? direor of homeland security. >> imagine you're never invited to the niol security meeting and it was hard to me with donald rufeld. >> i want people to read the book i did not write that line withegarto not being invited into the national security council meetings as a complaint or critism bker duri the past couple yea people said were you involved in the war planning for a reco afghanistan? and no. once we know we're going to

iraq i talk about liberty shield but i did noteel i was ostrazed for somebody was trying to keep me away from some they should have been involved in. that is the presidential call and the presidentay have said tom has a lot going on. whenever they made a decision that affected my department, we knew about it immediately as soon as it was rendered and other people said we better get the department of homeland surity involved. it was not a complaint. my relationship withonald rumsfeld, we have a good personal relationship t he was planning and the reference he is ready to go into afghistan he will commit blood and treasure after 9/11 and has a few things on his mind the incident the book is i'm a former governor and in the white house listening to the president and then know governors have to get the national guard and mayorwill put police on overtime they

will come back to me ansay we need money to do that. i get it. i would have said the same thinthsecretary defense who is planning on responding full force military into afghanistan, i mentioned a couple of times in the conversation tt was casual but this is not a high priority per car went to secretary of the army, ge got the army and d't think anybodyould conclude anhing hpen without donald rumsfeld selling it. that is not a criticism. he had other priorities i just figured out a way to do it. >> why yr secretary, a terrorist attacks we're stopped; brac i think the president said several and i will leave it at that. >> what you think the president chose you as the first secrety of homeland security? >> i don't know.

i can conjecture in my own mind. i had been and continue to be a great friend to the president i think she is a principled man we have said interesting idea to go into iraq the only reason he is commander in chief his because he concluded it would make amera safer long term that is the end of story maybe of help but have a decent reputation and i am a proud republic 10 but simes you have to meet the other side halfway but i am not se rose have the best solutions. ihink i have the reputation being a soldi and being a governor helped. one the missions the president probably felt witn the ne department of homeland security it is a federal

department but a national mission they have to look and work for the police chief and fire chief and to have a governor who has those experiences maybe when the president writes his memoir he will tell usá katie couric asked me that question i think i gave her the same answer the age of youtube you can see if i deviated from the text. >> please describeartment of home as security how many employee is where t size and the scope? >> really big. the larges organizatn bits and pieces over 20 different agencies that we pre-existing170, one of the big complaints at theime we were creain a new brokers say. the intimation was we would

hire another 180,000 people most of them men and women had already been working for the federal government. they were aligned in a way around a broader mission to secure the homand. frankly, there is much discussion and there was a gilmore commission and a set by congress a former vernor of virginia toake a look at the structure even before the 9/11 travel to see if we should do something with border security. back in the late nineties it was suggesd an agency wit that discussion have been going on 50 years progress th world grows smaller where more globally interconnected, should the government have an agency that is border centric that monitors the goods the flow of people back and forth? other integration policy, brder policy, it wouldake good sense finally

the president decided we will do with and instead of waiting for congress to come up with the architecture or structure the president's commission some of the best and brightest to get the job done and ultimately that structure became the department of homeland security. this was a going on in washington and nobody knew about it. that i a rarity. know weeks. >> what improvements to recommend to the department of homeland security to make the nation's a for? >> iill notive you the long lt of they are the thoughts that i havmy will share a couple i hav already talked to secretary napitano i called her the day before it was announced she would be t secretary of homeland security. i tld the only o people in washington knew how

challenging good job would be it was michael chertoff and tom ridge and be feeling free to call us. and she has. do give her credit for that but she has run agenda i mentioned on the shelf a regional structure where you drive some of the relationshs and the oversight and a lot of things that we try to do from washington down to t regional level and bring in all of the agencies, the big groups, coast guard commnts fema, make all of the regional offices in one @lace we had eight regional offices one of them was new orleans. i asked her to take a look at that. excuse me. i am a big chaion of the coast guard. i think the united states coast guard is the most

undervalue underfunded multitask organization of the federagovernment and i strongly urge this congress or somebody and the secretary to champion ed. you get a lot of a service that they don't get enough money. i recommend that. i talk about better use of betrics and america i think we should have a purposeful debate and discussion as to whether or not we want to have a national id card to combat terrorism, crime and identity theft, fraud against the government. a world that is interconnected, think to yourself whether the relationships that you have where your identity is not imrtant? line purchase, boeing three screening, theres a long long list. yet we als know and i saw it as the homeland security

secretary, i have seen some of forged docents that you would need the most experienced professional with a very good microscope to look at individual passwords to determine whether they were real or fraudulent. your balance security with privacy and know there is a lot of resistance some people are a major proposed but was set down and seef we can make it work cause biometrics can protect your privacy but we ought to have that discussion. i talk about bad. we ought to finisin the u.s. of is separate fm a law that created the department of homeland security they said createhe entry exit system purpose of they have been talking about a long time. and very important with a border centric agency. we have people and goods but this is about peoplas of december 31st we had to have

an entry system in the airport's decided we would take a digital photo in the database and by the way that a couple of picture and digital fingerprints. we know you're here. way know your who do say you're we have your fingerprints, we know your name andased on you passport, how long you are allowed to stay. then we want to monitor when yo leave. but that system is not a place so we have information about pele who showed up but we are unsure whether or not they left fernandez cents, there is a nsef urgcy after 9/11 we lost track of vat and a few other things that make the recommendation. i can go in detai later. >> during theos recent campaign your mentioned as a front runner for theice

president and nomineehy did senator mccain pick sarah palin? [laughter] >> asked him. we came in second. senator john mccain has been one of my best friends since i came into the political world and we were the to vietnam veterans obviously he stayed a lot longer than i didnder faworse conditions. the was proud to his national co-chair. made the choice and i think i still say that people focus on what he.org did not do but there are two things that i don't think in the discussion have been lt out. one, now president obama ran the most technologically sophisticated campaign in the history of politics but of these folks knowow to use the internet. there could they know how to

recruit, fund-raisers, we were not close or up to that. the other thing it is not a criticism but he blew the walls out of public financing. at one point* in time he said i will te public money it three quarters of the billio when you have a technologically sophistic campaign, this is the way it worked and two or three times as much money ayour point* you have a good shot of winning. the environment was hentoff for the ray and the the admirable and on his campaign. we want him to be successl in the war against the terrorist just like his attorney general is talking about we will rise up a object to that. would you think about your old friend arlen specter bourse switching parties?

>> arlen specter is an old friend of mine. we have been in the republican party for a long long time. if he would ask me i wou say i went to the alamo once i i went because it repsented a place where people fought and stood for what they believed then i would prefr he would ta a stand which is controverrial but he made the choice i think he has a very difficult challenge with the congressmen. but he is one of relentless sun tiring campaigner fasten ur seat belts it will be a very interesting primary but the fact there will be an interesting contested primary improves the chances of the reblican who it looks like it will make it a very

competitive race. >> the billion-dollar question. >> how much? >> of the million-dollar question will you run for president 2012? >> matt is not worth answering. thank you very much. i need elections i am undefeated i will keep it that way. i have learned never to say never when i started in politics i did not think it would goverr or a cabinet secretary but i think it is very unlikely. what i will do and will commit to it is as long as i am able to make sure over the next several years hour numbers increase in the house and senate we have some governor races doing work in virginia we're loongoward victory and 2012.

very unlikely you will see me on the ticket by will be very involved. >> ballet to take a couple of questions. >> mr. secretary i was on a national security council 1975/76 when we havehe cia files. very simar to today and we eliminated human intelligence gathering and i personally think that this will lead to the fall of a shah of ir@n and the fall of the soviet union we never saw i coming we never sought al qaeda or islamic jihad because we do not have spies broke i know you have spoken out on is a number of times what do think is going on in what this means for american national security going forward if we do the same route 1975 and 76? people asking it is politically motivated that by running away secd-guessi.

but and i am untiring and unblinking and i thought it is the wrong thing to do. from the get-go. i thought about this the other day one of the strengths of the patriot act there were so critical provisis is it toward down the of wall the legl barrier between law-enforcement and intelligence. they cld not talto each other the patriot act destroyed the wall. very important. this is almost like putting a psychological barrier perky do not need a legal wl because there is no information to share. refuse say some of these techniques are barred the consequence of going after people whose them in the past, we will not have any intelligence to share purposely deprivation shooting a firearm

in the adjacent room some of these thing i am on record i disagree with the vice president it is torture. i think it is wrong and that is my belief. but most of thether measures do not bother me a. what bothers me even won't more is the fact after 9/11 we had interrogators instructed to gets much information as ickly as they could to make sure another incidentid not occur. they were told that authorized to use these leasures and go back 56 years later to second-gss and holding potential criminal prosecution is bad policy and unconscionable for them to do that. i know if anybody wants to interrogate anybody for the sake that somody will cond-guess the technique. we should not put them up been

a hotel andive tm three squares and sayall us when you feel like talking. there are restrictions barring waterboarding is one of them by going after people we have interrogated is wrong. >> i am from pitburg. i think john heinz untimely death changed the history of the united states because i am fairly sure he would have been the president. where are the republicans like you better centrist that i can vote for today? >> first of all, john heinz campaigned for me and 1982. there were only two political figures that i have thought d coattails with their endorsement one was john heinz and the other was ronald

reagan per car look back on the first re i won by 729 votes that is for the democrats where try to scare evybody was a security and john hnz sai tom ridge is a good guy. our trust him despite the democrats' return n taking your security away. i think it is worth at least 729 votes per kyrylo always be grateful to john. one of the challenges of our party, this is obviously some people may differ, it is to understand philosophically that disagreement within a group does not mean the group ot unified protest not mean this unity and unity does not require unanimity of thought. think we should understand there are basic princips to which all of us who subscribe and those that unite us en

among those are could be a difference. it is pretty clear where i am on the question of choice. what is prettylear the republican party will always be the party that has point* of view contry to mine. i accept that. i want them too except my view as well. toepublican presidents altered my life significantly. richard nixon sent me a draft notice i ended up being an infantry soldier in vietnam my friend george bush called me because he knew i love to be a governor and said the the job that you love and cole hell the combat these ideologues and neither one assets were ice stood they just said would usurp? it is that mentality we need to bring back to the republican party understanding, where we are on some o these issues unless we are more willing t except

that kind of thought, and not disqualify a candidate because they were not and lockste ronald reagan said nephew would curry with may 80% of the time, you are a darned good republican. we have to practice what he was willing to preach. spend my life supporting candidates on these issues that i disagree with professor it did not keep my support not just meant that we disagreed. we have to get back to that mindset. >> i am a former u.s department of state forei service in turkey, swede and the u.s. embassy under richard holboke. i have been getting beat up around town because i kept

asking for a military presence. >> [inaudible] >> i keep proposing we have a military presence on governors island i feel that we are sitting ducks and a harbor i would like to know you commented also like to encourage you to run for president. >> a military prison on governors island, i do not know enough aut the security requirements out there to comment. i can undstand why people not want to have the military roaming around their parker presumably you want them there for security purposes. i member under president bush's secretary of interior, we look at the security there where people ought to get access and there were changes made and

everybody was vy conscious of our security around a certain monuments and around the states would be comforted that the assessment goes on to a day to day basis if there was a real need not speculative i suspect you would get it but i would not worrabout it. many times right after 9/11, not right after the five for six months after, parents of young people who were friends would call and say the kids have a trip to new york city, should ty go? they have a trip to washiton d.c., should they go? said every time i said yes absolutely. we are a lot smarter after 9/11 professionals have not lost the sense of urgencx the one of the things we can never do i tried to convince you the threat is real every day we're bett prepared to respond but under the possibility of a

threat to we should not quick to enjoying the opportunities we have which are unique in the united states of america. >> [inaudible] around the world after other terrort attacks have taken place, they're now using social networks twitter as well as cellphones proper pear does this country to deal with that upcoming technology to monitor to defend their homeland and allies around the world? >> i believe this since 9/11 we have learned and some of our allies have learned not only how effecti the

terrorists are in using it to recruit, train comex cetera, but we have found our way. a the ubiquity of the internet is its strengths also its weakness i do not pretend to say that our surity personnel have it covered. but every single day, one of the initiatives of this and is station is treasonous ever security we put the same emphasis and i think they will supporting dot and fbi and a with whatever resources they need personnel and technology to penetrate them in a cyber recruiting system. it is pretty tough and difficult. fire walls and everying el but we do interesting things hour allies do so it is not as if it is going undetected or

unticed because they are not. secretary ridge, how would you rate the performance of the obama administration nder the first year and under what circumstances do feel he would be vulnerable in 2012? folderol to a republican candidate? >> a great political question. first of all, my first impression is too much too fast iertainly appreciate the fact he offered change for r i am not sure and it is pretty clear right now lot of americans are saying this is the change that i bought into when you got my vote. i don't they d ved for a

nine try and dollar deficit, don't think i ved for a cap-and-tre bill that is cap chantix because you promised you would not tax me. i don't think right now what of the concern of the health-care although some people think it is an organized protest i think it is legitimate. 70 or 80 percent may have some coerns with the deliry system but they like what they have but in order to turn it upsida down to resolve legitimate issues, people are turned off by bad. my first assessment because they very bright man with great oratorical skills, what is the rush? health care is a great example. and employs 13a40000000 people in america of. 2.5 trillion dollars of our economy. i don't knowoo many health-care professionals on the hill or in the

administration to think in a 60 year 98 period you can cram 31,000 page bill that would dramatically affect those employees it isoving too fast i keep they guess they fort -- former governor why don't we try wonder two states and see if it works and tre other ways to do with other problems. performance obviously his popularity has dropped conserably the past couple of weeks that could rebound but i wish he would slow down and reach across the aisle. tied down just now with a sincerity but i did not get a sense there has been a legitimate effort on some of these issues to find common grnd. by one to solar and wind mail and tidal pow, we havehose then pennsylvania we deregulated i know people pay

more for green energy but if we truly want to be energy dependent how to aid nuclear, guest? i would encourage him to think about aomprehensinergy strategy rather than just renewals part of that is very important. >> on that note governor ridge has agreed sign books. please join me in thanking governor ridge [applause] . .