finish this morning you will have a chance to buy a book and have it inscribed by the author. correct? >> absolutely. both myself and george. >> and so they will stay here as long as you want to stay with them. they told me they have nothing else to do. [laughter] ..

the eight khursheed per khursheed bart gannett centi the, didion-- this is the funding dean and the current steve could not be with us today that he is here in spirit and we of course rn has to house and we appreciate that. what to thank andrea four frappuccinos, really all that had read of the s. 5 sow andrew devitt and he just takes credit for thief and.

[applause] of course bill george ten-year resumes, he also served on the board of goldman sachs, serves on the board i believe the exxonmobil and served on the board of target and several other companies. most notably about bill george he grew a company from a billion dollars, medtronic switch does medical devices among other things, one of the medical devices that, for which your book is part of his collection for gold. to 60 billion, with an average return of 35%. he did that well running a company with a good reputation and something that is not known to the public he took 30% of his income in his highest grossing

economic years and fought it into the build of the george foundation. that foundation has 60 years $70 million a day and every day they invest $5 million back into the community with no credit, no fanfare. they just do it because it was the right thing to do so i met bill george at harvard. sorry, i met him at harbored through the young global leaders a program that the sponsor their of yon global leaders that goes to the course of two weeks and it was from that that bill encourage me to speak to jossey-bass who then publish my book. like is about relationships. no one got here with by themselves. i am here in atlanta not only because my wife told me to live in atlanta, but because andrew young is here and andrew young is my personal hero and my mentor and my role model. i absolutely love this man. as far as i am concerned he is

our domestic nelson mandela. he is the closest leroy going to get to nelson mandela here in north america. [laughter] >> not lately. >> that is an interesting point because often people don't think andrew young has ever gone to jail and the civil-rights movement and without getting off message i think this is the same message so i am going to answer your question. it is not well-known that dr. martin luther king did not want andrew young here. he needed him outside to be the rational, the ambassador, the guy who talked to everybody, the guide that it would keep the movement killing. he needed somebody let good common-sense and common sense is not so common, to keep the program of thing. often time when dr. king was marching when you didn't see

andrew young and does.us it was because he was meeting with 100 business leaders in those towns. he said andy, i want you to meet with 100 business leaders while i am marching and while we are stopping, is because it you did not get 100 business leaders in any town to agree to anything we do get the mayor and politics to come along so when i talk about civil-rights and civil rights is not a different conversation, it is the same conversation it is just that was something they didn't really talk about back then and, said they did create a bit of good capitalism and since that's a good. that is andrew young, part of his legacy that he does like a credit for. he will never say a word about it but because of him we are literally here today so i love you and i appreciate you. the question. this book is not about a recession.

we are in this environment where the book is called "love leadership" the new way to lead in a fear-based world. i don't think this is a recession. now, about what my opening self-love you should be questioning my logic in my common sense because if you are living in atlanta, you are living in a plan that, you are living in the world today you are feeling this economically but no different than when you sneeze. this knees is not the problem. this knees is a symptom of the problem so you are feeling this economically but i now believe this is an economic recession. first of all it is not a recession, it is they reset. second of all it is not economic. it is not an economic crisis for say. is the crisis of virtues and values. this is not about the bill your free enterprise and capitalism. it is about the failure of greed. whoa for as long as i can remember-- >> you said a failure of greed.

>> greed. for as long as i can remember and i read nonstop, over the last 100 years we have benefited here and abroad in the world by the power of the idea. this school, the andrew young school was somebody's idea of, came ambassador yemen said i have a vision. the school of morehouse was somebody's idea. the civil rights movement was somebody's idea. microsoft was bill gates and paul ellen's idea. after bill gates that fired from ibm for not being focused on hardware which was their obsession but being focused on software and they said you are crazy and you are fired. get out of here with that crazy idea. now microsoft can buy and sell ibm several times. bill gates is on the second big idea with his wife, the bill and melinda gates foundation which is really making-- remaking philanthropy car this iphone

was somebody's idea by the name of steve jobs. you can go on and on, guy that ambassador john no's well, ted turner. cnn was his idea. and when cnn for started i think i can say this respectfully, cnn was pretty ragged, but he had a vision and ultimately the vision and the reality caught up with each other. medtronic was in many ways bill george's idea of the way in which he ran that company, some would argue being run different today but his leadership and his ideas may difference. the guy named sam walton woke up one morning and decided he wanted to provide a quality product at a reasonable price for the working poor. in the southern states initially. the company became walmart, the largest retailer in the world today. are you getting what i am trying to say? did people become rich and powerful as a result of this?

dr. dorothy height had an idea and so on and so forth. mother theresa had an idea. dude people become rich endure powerful and i would say wealthy because that is different from being financially rich as a result of having these great ideas? sure they did that was it their goal when i woke up in the morning to become rich and powerful? are was becoming rich and powerful the byproducts and not the product? fastforward to where we are today. in the last 20 years quincy jones a friend of ambassador young paulson one of my mentors and said it takes 20 years to change a culture. knoll's 20 years that think we made them sexy. we have them down and we have celebrated. what is the effect of that? did today people wake up and say i have an idea, they wake up and say i want to make money and what did they say tomorrow? i want to make more money. money has become the product.

not the byproducts. and that is why we run into a ditch. so, this book talks about, there are two things in the world, there is love and there is fear and what you don't love you fear. the reason the world is all screwed up as most of our leaders have led by fear. what is fear's first cousin? short-term azzam. bill george gibbs and his book the seven lessons of leading in crisis. what short term as some's roommate? greed. what is greed's vista relative? glaziness. so, what do we have? we have fear, short-termism, greed and are really colluding together to create a new culture. and if you look at this crisis,

it is prepackaged paint, because all of those things are driving supposedly who we are and worse, where we are going. let's look at how, its impact on culture real quickly. i am going to give two examples. one is an obvious one. some hip hop music, because i love hip-hop music and i think there are a lot of great role models and hip-hop but some have promoted music as a thing. it has become cars and wardrobes and gold chains and you watch the music and it is pointing at things and an interesting use of words for women. that is an easy one, but let's look at the matrixes sidey. if you are a middle-class family today your children have grown up on a tv series called friends. you have heard of the show, right? it has been a talk show for ten

years. anyone ever notice that all the kids live in a 10,000-dollar a month manhattan walked up and no one has a real job? [laughter] what is the point? the point is that that cultural impact, everybody has got the coolest close on that show. nobody is breaking a sweat. everybody is partying and having a good time, so what is the message? if you have grown up in that culture then of course your mommy and daddy are going to solve your problems. of course they are going to send you to the vest close. of course credit is going to flow easily and of course credit will be cheap. of course you will come in late, leave early, the party on weekends and your mom will cookie dinner at night. it is laziness and it is immediate gratification culture. so this is not about one, this is not about a race issue.

this book is about really the future of leadership itself and when i talk about love i don't talk about, we are the world, we are the future. i am not talking about kumbaya. i am talking about love as a word. not love this glaziness and anti-love is evil. there is very little eaglen this will. but it exists. most people are just lazy. i don't know about you but i did not want to be at 8:00 reverence but love is not about what you want to do, it is about what you need to do. and our audit lyndon says they have got a flat tire. your reaction is, don't you have aaa? and after you, be honest after you say that you say where's

your mama and daddy? if it is that 10:00 tonight it is where's your mother and your father. then you say where's your best friend? you didn't invite me to the club last week, i saw you. i was not in your wedding. why don't you get the person who was in your wedding. [laughter] but after your finished with all of that, and you finish grumbling and growling what do you do? i am sorry, i am from the black church, i am used to seeking a response. [laughter] you get up and you go get your friend. grumbling and complaining every step of the way. and then you give them a lecture when you see them, right? the don't getting me out of my bed at 3:00 in the morning again. but that is love then you love your husband and your wife. every could marriages maid if constructive direction.

no one will comment on that but there times you want to scramble your kids, my guess is, but you love them. we love in spite of. if you love love because of you may not even love yourself. so in spite of how insecure and trauma inflicted by m. andrew young loves me and i appreciate that. in spite of how irritating i am bill george envoy put up with me. in spite of my two a m calls andrea, she just gets the voicemail this ubl call me the next day. in spite of my nonstock travel around the world my white still finds value in having me overcount. so, the five loss of love leadership, loss creates leaders. i don't believe you could have a rainbow without a storm first. it is a scientific fact. nobody whitson the pad morning and says i want to start cancer foundation. who starts cancer foundation's?

or people who love people who have been afflicted with cancer, that is where, so we passion is a motion made intelligence and properly focused. passion as the motion made intelligence improperly focused. number two courage is nothing more than your faith reaching for your fear showing action. courage is nothing more than your faith reaching through your fear and is playing itself in action. nobody he was ever been courageous when somebody says what about courageous, or it will tell you i was shaking in my boots when that happened. nothing was further from my mind then being courageous. i just did what i was led to do. if i had thought about it i might not have done what i did that was intuitive. the lady who created mothers against drunk drivers did it because her little girl was hit by a drunk driver. i created operation hope because

of the injustices i saw and the financial predators eyes son south l.a. when i grew up in my mom and dad divorced over money. they love each other but they couldn't agree on money and without going into a lot of detail i didn't want that to be a hindrance or anybody anymore and today if you don't have a bank account your and economics layed so the issue in the 20th-century what andrew young and dr. king walked the streets of atlanta for the civil-rights you had emerging democracy all around the world. from india to south africa to the southern states. the only way you codify democracy in the rights of people in the hands of people was the right to vote. within the global economic system, if you don't understand the language of money and you don't have access to, what andrew young says it best, in a system of free enterprise acute on understand for enterprise you

are nothing more than an economic slave. so loss creates leaders. fails. hopefully we will get into that conversation at some point because i think that is very important. three, love makes money. i know that may sound a little strange, but this economic crisis started with the mortgage crisis but i think bill george in his comments will make a point that if it wasn't mortgages it would it then something else. because it was really this issue of greed but on mortgages weech readed clients like transactions and not as relationships. if you led make every law like you see your grandmother he would not have a crisis. did that just go over your head? if you had made every loan like it was to your grandmother, a reasonable interest rate it gave you a profit but not too much, but enough for you to make it worth your while but he made sure it was alone to fit your

needs over a long period of time you made sure everybody one. solove can make money and relationships which is why i want to say how i got here, drawing the lines there were all three of these gentlemen andrea it is incredibly incredibly import then finally giving is getting. vulnerability is power and giving is getting. these are the five lots of love leadership that i have articulated in this book, which i am so very passionate about so this is really in some ways a discussion. i am hoping about the future of leadership itself a discussion of what could capitalism is. can capitalism and free enterprise the used it to empower and uplift the middle class versus making sure all boats rise and not just yacht. i think the answer is yes but we have got to reimagined who we

want to be. we have to be imagine how we are going to get there. we have to not let this crisis go to waste. we have got to reposition ourselves in this reset world for a future where all people can try and survive and succeed and not just the guilted, the gifted and guilted view. thank you. [applause] >> you are a hard act to follow. i was privileged to write the foreword to john's book because i think he has a great deal of wisdom about what is required to turn this world around and i think it takes leadership, it takes the new way to lead. all my life i've been fascinated about leadership and i have seen frankly about unethical leadership in a lot of good leadership and i kept thinking my generation is going to do it and then enron and everything else it and then i so we didn't

so i'm trying to devote my time to talk about people from college students. i was talking the other night to alessio about the real hope for the future is to lead with the kinds of principles john is talking about, to lead authentically, to be open but the real test of a leader is in a crisis. when things are going well, we had good times at medtronic, that is not the real test. it is one thing starts to crumble and i am struck, the reason i wrote the recent book is because i'm struck by how many basic universal principles of leading people forget about the crisis. is simple one like days reality starting with yourself. interesting quote from the failed co of lehman brothers who took them 135, led a 135 your company into bankruptcy and they asked him nine months after was all over, if you had it to do all over again, what would you

do? he said i would wake up at 3:00 in the morning and i would think about, i thought about it and thought about it and if he said-- he said if i had to do over again i would do just the same. think about the fact that you are going to rationalize your way. here is the guy that destroyed was it formally great enterprise that had been around for 135 years. how many of you could think of that you could do over where there was a basketball shot, a mistake you made in a relationship. if you can't face that reality, a lot of times we a to face our own reality. we have to face our own reality. you talk about love and fear. if i have fear it is often because it is my own fear that i am basing. if i am uncomfortable realm somebody who is different than i am for whatever reason, that is really my problem and not theirs but i have to look myself in the mirror and say why is that. i think it is so importantly do

that in our relationship. i love your statement vulnerability is power. by being open you establish a deep connection, by sharing who you are, what your failures are. we don't connect to our successes, we connector our hearts, our guts and their failure. that is where we really connect them by showing that vulnerability-- i had an experience that medtronic a couple of years ago were back in 1996 and my wife penning was diagnosed with breast cancer in february and it was a tough time for us and you know she didn't know if you is going to live. she was scared and i was scared because of the two experiences of losing my mother and my fiancee to cancer i was in denial so i had to come to my bens ribbon come out of the denial and face the reality that i was just too scared to talk about it in for a while we came apart.

her i always see myself as a problem solver so she went through chemotherapy for seven months end not atypical and then is seen to be getting better and the day, before thanksgiving a lot of people at medtronic had helped out a great deal and provided a lot of support during this difficult time so i send an e-mail out to 18,000 e-mail boxes that medtronic telling people how we felt in showing my vulnerability and how scared we were and how we appreciated everyone's support in them being there for us and bucking us up. audit all the things i did that probably connected to make better to people around the world and medtronic than anything that happened because i was showing my vulnerability and they were not particularly interested in the numbers but they-- i got hundreds of the mills back sing let me tell you about my mother, let me tell you about my son who has this incurable disease so we really found a connection and that is the way we connector have

manatee. a lot of leaders decided that. they think-- weeded not-- is not about power. i love your idea of the big idea job because just to quote margaret means the anthropologist who said never dealt the power of a small group of people to change the world. indeed it is the only thing that ever has. you change the world. you were part of a small group of people. you didn't have the power. you had very little power. you have personal power but you had very little power in terms of structural. you have no great institutions behind you. when you started out like that you had very much money behind you, so but you had come together and you had an idea. there's a woman to is that teach for america who wants to change education and the broddick case on her the fight your point. she has been pilloried from every side, by the educational

establishment. everyone says it is that the kids and she is trying to help inner-city kids get the kind of education that they oftentimes did not get in turning out a whole teacher gordon she pulled through that crisis and hung in there and she is changing the world. you are changing the world in financial literacy. john has raised $500 million impacting people in lives and how they think about this. there is a consumer protection bill before congress right now with a lot of the bankers who are saying i can do this and i can do that so i had to give a speech and i said were you not going to do this? you cannot create a successful business enterprise with unless you are genuinely subserving the people you serve in your employer's. and that turns your employees on for coburn talking about restoring people's a full life and health but if you have a bank and they are not turning

customers and helping them get to financial self-sufficiency than you are not going to have a good thing and it is the same with financial literacy. how can you make, bender live taking advantage of people so i admire what you are doing john but it really comes down do we can make a difference in the world and i think a lot of us look at powerful leaders when. we were right about president obama and we were right about the powerful leaders in history that change the world but each of us has a calling to make a difference in the world we are in and change the world. be part of that small group of people. i can't change the world but i can change the part of the world i am in. when my fiancee died suddenly three weeks before the wedding back in 1968 that was pretty shaken and i thought going into it i was on top of the world and all of a sudden this came out of

left field for me in for her because it was undiagnose. one of the things i learned from that is we don't really understand a lot of things about life. we don't understand hell lung we have to live or what we can do and i'm the kind of person who was always looking at the future but we can impact every informants to make it better, to make it a better place than to empower other people to step up in late. i've never liked the notion of leadership the power over others. the capacity to empower other people and step up the lead. that is what we are asking people to do is to find that sense of i too can make a difference. the it doesn't matter what your degree is, what your educational background is, what your financial status is, your organizational status. i have a voice that leadership is your choice, you got your title and when people say when i get to be a vice president--

nonsense we can become a manager or a bureaucrat but you can leave right where you are. i will never forget the story of a woman i went to see it medtronic. i was going to a hartsfeld facility and they take's harton carve out a that can go through quite a bit of what is really an art form to be made into a human self what chemicals to replace the human aortic and mitral valve which is fatal, and this is a facility that required 18 months of training and they were heavily backlogged. we had a good product but we just couldn't get them out the door because things are growing so fast and we didn't have enough trained people. the woman laotian immigrant had been in the united states five years and had discussed legalized and just became a citizen then she had all of for tools out on the bench. i said tell me how you do your work, tell me how you do this because you are the top producer in this facility and she looked

at me and she would not let them. she said mr. george look me tell you something, my life is making hartsfeld the save people's lives. i make 1,000 bills a year. there are no inspectors on this line. i am the only inspector but before my criteria is is it good enough to go into my mother or my husband or my son and it is not, it doesn't leave the bench because i sign my name to every veldt and if it is detective the fda can come back and say what happened on that particular one. if one of those bells is defective someone is going to die. this is a life-and-death procedure. and she said i could never live with that. 99% met trulock is good enough but she said i could never live with that but she said when i go home at night you know what i'm thinking about? i am thinking about this 5,000 people in the world today who were alive because of the heart valves that i made. now does anyone in this room

doubt that this woman is a leader? at the time she was making $18 an hour and now she's probably making figures 60% more than that but she will never be wealthy. she is wealth the inside because she knows she is making a difference in life. budde think everyone in that facility comes to to say, this is one good enough? who does the training for all the workers in the plan? she does not have to be a director. who is she is making a difference and i think each of us has that opportunity and the way that we solve the really tough problems in the world which is not just by a few powerful people of the top. this health care reform is not going to change health because health comes from within us and i want everyone to have it. i think we have to start, we have to start at the local level. we have to start with real people and real situations and create models and things have they really work like you were

trying to do and show people where it works. when i came to a plant in 1960 my friend henry sawyer recalls it was a different kind of place. it was nothing like it is today. in many ways, we can go through all of that. is a totally different place. even before that, think about, be honest. whiff it was a pretty racist place some people did not have opportunity in that you have great opportunities here. not perfect, nothing is perfect but things only change if we come together in spirit and collaboration and i'm glad this is a school of public policy that also focuses on nonprofit organizations because i think that is really important. if you think about what i call the five or six great problems of the world, poverty, health care, energy and the environment, education, job creation and global peace. there is a reason why those are such intractable problems.

there is no one single solution. to solve even a small piece of one of those problems we have to collaborate. is going to require-- there is no corporation in the world, no government in the world large enough to solve any one of these problems by itself and i think we have to collaborate. if you take a basic problem aids in africa you can solve that problem by drug companies giving free drugs. as jimmy carter said there is a drug for river blindness which is a-- if you give it to the tribal chief in the people never see it. you have to give it to the people in need nonprofits to do this. you need governments to work with us. i'm going to cool off on little riff here so if you disagree with me it's okay but for while the u.s. government was going the direction of being willing the world, dominating the world and saying either follow meaned or you are against me, and there has been a lot of controversy about president obama obtaining

the nobel prize peace prize. i am proud of him getting the nobel peace prize. [applause] i am shocked, expected the right wing to be ranting against this but i am shocked at the left-wing who says this was not fair when. if you talk to people in europe, you talk to people in asia and a round the world they have very different perspectives. they say now you guys are changing, you want to work with us and solve these problems. leaking come together from totally different positions and find a way to get to yes by talking to each other so now you are changing the way you were thinking. >> wag spent the last 40 years becoming experts at what we are gantze and now we have to become experts about what we are four. >> i am just feeling strongly that we need leaders everyone in this room leads to lead and make a difference and meekham

collaborate in need to bring people together across boundaries. the leaders of the future are going to be people who can't a line people around the purpose and a set of values. that is what you are doing in your work by the note that is the first thing. the second thing is to empower other people to step up and leave. third realize leadership is a noise about service. with the government is about serving your constituents and it is about serving your employees. employees are not there to serve you, you were there to serve them. for everything we need to collaborate across lines, we need to find how to bring people together to say we can make a difference and yes we have some differences but let's find a way to make this a better world so i hope each of us will think about what can we do in their own environment to make this a better world and then step up and lead. [applause]

>> you know i don't have any argument with anything said, but it reminded me of a couple of things. one, i first appreciation of free enterprise i think came when i heard the then chairman of johnson & johnson, i can't remember his name, jim burke, say that our priority is to serve our customers, and second to serve our communities third, to serve our employees and then if those are well served, our shareholders will benefit. and i think one of the things that it's happened is we have flipped its so that people, shareholders and bottom line. and they got bonuses without going through the kind of

humanitarian approach and i have been uncomfortable with good capitalism because i have been trying to find what good is but i think what you have said here today says to meet humanitarian capitalism, capitalism that serves people whether then problems and i think we started its-- i think we started being critical of greed not at the top but we started pointing it out with trade union movement. when the trade unionists were using their power in the railroad industry just to add workers and build their unions without relating it to productivity. you see, and i never had a strike as a city employee, as a mayor because we always said, we are glad to give you raises but

we have got to raise, we have got to give you raises in terms of your increase productivity and if we can find a way to improve your productivity, you get the raises. now, i think in big business they have lost that. now and the civil rights movement, the self have lost that. the selfless trying to help white people be rich and almost ignored white people. well, reading in your book in these lessons on a crisis i realized what we did is we orchestrated the crisis with in control that. we did it humbly. we never said that white people were at fault. we said that we have been cooperating with the system that doesn't treat us right. and we can't continue to do

that, so we withdrew our support from the economy in birmingham, and 300,000 black people suddenly said between now and easter we are not going to buy anything but food and medicine. will, that orchestrated a crisis and the reason i can talk to 100 businessmen was they were all trying to figure out how to stop this crisis. they spend a lot of time blaming it on martin luther king and blaming it on the civil-rights movement but then when we finally sat down lee said look, we really don't want to destroy your businesses. we want to enhance your businesses by giving you better employees and more customers and we worked out a reasonable-- we said look, the lady that you have got working as a maid has been in this department for 50 years. she knows more about it than the

college students that you hired in six months that are going back to school. whited you let her put on, not uniform but put on one of the addresses you manufacture and become a salesperson in receive a commission. and they did that. once they did that and they empower the black women in the department to be leaders, their business picked up. bird we had to break down of lunch counter question then finally we orchestrated test. we said we won't just fled the lunch counter. we will send one person every day. we will let you know when they are coming in you can monitored to make sure there is no incident. we said the morrow you can take down those signs. there is no such thing as whitewater and water. there's just water. take down the signs and see what happens. nothing happened. we change this self.

we first of all created a crisis but it was a controlled crisis and then what we negotiated the economic changes that actually produced the booms themself and i have been trying to figure out how we can, how we can take this crisis and the other thing i am always mindful of this is that i think the moment at which atlantic came together was a roundy olympics. bib it was not just when we won the olympics. it was when the bombing occurred within nothing brought the city together like that stupid bombing and then it was all of us against the forces of evil in the world and we were determined we had 400,000 volunteers and i wondered whether they were going to show up after the bombing

occurred. they were at work at 6:00 in the morning and that response, community response to a crisis-- i am wondering what can we do right now to respond to this presidents and i am not sophisticated enough to understand the difference between a recession in the breeze set. i know there are too many people out of work. i mean, too many homes being foreclosed. their is something wrong that we did not create. that the people who were the victims did not create, and then when i hear that wall street is doing well in citigroup is getting big bonuses again, i say wait a minute, we have not learned anything yet.

and i don't no, how do we, how do we have this reset one or how do we adjust our values. dr. king in his last book talked about the need for a revolution in values and he said we have to become with people oriented rather than profit oriented. now y think the key to my success as mayor was the i understood you can't help people if you don't have a process so well people wanted jobs, business wanted progress but it actually required the same thing, that if people began to get jobs they create profits. if people make profits they begin to create jobs so we created a formula here that was frankly the business community in the black community coming

together to lead people forward, lead the economy forward. and uyghur all the beneficiaries. and then it began to break down. >> shimon paris said even if you want to distribute money like a socialist you have got to first collect money like a capitalist-- >> generate money like a capitalist. >> he is always something. >> can i pick up on something? how do we deal with this current crisis? the way we are treating this right now reminds me a little bit of the weathermen with hurricane katrina, give you the report while the hurricane has subsided, it is over now and everything can go back to normal and i am hearing from the economists that this recession is over. they have officially declared it is over. the real unemployment rate is 17%. that is across the entire country. the official statistics, these

are official statistics from the department of labor if you can't people that are out of work and stop looking for a job, no longer drawing unemployment compensation. andel those folks with the $80,000 a year jabr now working part time with. and so if you look at it the minute it is much higher than that, frighteningly higher. is frighteningly high. we have to get people back to work. how do we do that? big business today is not hiring. i don't know one c.e.o in the country that i have talked to in the last two months, three months they make rehires and that is about all when people leave. they are not hiring. we need to get small businesses going again and we need to get new companies formed. over the last 25 years 70% of all just been created by small business and right now there is no financing so push other banks

down there is no money for people. if you want to start a new company is very hard. if you want to start a hedge fund you can get your to it $3 billion to start a hedge fund. if you want to get money to start a new company is extremely hard to get. small business is really hurting and i am really concerned. bechtol base reality, base reality the economists say everything will blowed up like a rising tide. this is not going to happen. we need to focus on this and to i think to get back to the great strength in this country is innovation, creativity, entrepreneurship and new business formation in mean to encourage that and utilizing their skills their ability to make things move.

>> we have crime mastered here. i mean we have really, we really have a community based-- we were in control of the crime from top to bottom and now it is out of control. and the part of our problem is growth when i was mayor we started out with 2 million people in the metropolitan area. now we have 5,583,000 in the metropolitan area and we might talk about the crime statistics in the city but people feel the crime in the region and people have come here from all over the unemployed and just like willie sutton said, why do you grubbed thanks? because that is where the money is. because this was a profitable and essentially the wealthiest

city in itself, we are attracting crime from all over. and so, the answer to crime and jail, the answer to crime is including people in the economy and i don't think we have gotten anybody talking about that. >> we are talking about it. you are, you just did it. look, i think that's when i talk about the resets i am talking about several things. let's talk about the structural members very quickly. there is $1,144,000,000,000,000 in derivatives right now sitting off balance sheets today. you just let that number sit with you for a minute. that is a trillion. up until two years ago i didn't even know the word trillion existed. you cannot fitted on a piece of

paper so the international bank of settlements, 1,144,000,000,000,000. there is only $12 trillion in legal cash in the world so if you took all the legal cash in burnett the problem you can solve its though it the government could solve that they would live and they can't which is why we are in this but we are in today. i was reading an article when i was in singapore two weeks ago with. if it said there are about 5,000 large tankers that ship oil and automobiles, these huge tankers that are about the size of two football fields. are they called tankers? they are about 5,000 in the world. where there is 500 of them setting off a small island in malaysia anchored with six people approximately six people per ship just to be there in

case robber barons shoah pirates other sitting there because they have no place to go, no orders, no direction and they are hiding from the market. they are afraid that the market finds out the 10% of all inventory of ships are just sitting there, everybody would panic. dnl the open prosperity killer? it is fear. mortgage crisis to an economic crisis to a financial crisis to a liquidity crisis to a crisis of confidence. if you don't believe finamore you are done so check this out. as it the couldn't get worse. hugo to south korea right now, what is their biggest business? shipbuilding. they are fully employed right now. hugo to south korea riedel they are just knocking hammers building these big tankers. iran has already said we have

got three tankers about $100 million each, we give $1 million on each ameet 080 million we can't pay you. they are doing yard sales of 100 million-dollar tankers. it is a three-year order process of these tankers are going to come on line in 2010 and 2011. are you starting to get this picture? and 20 tenant 2011 you have 15% more tankers they are going to come online with nobody to buy them, no place for them to go. you will have 25% excess capacity of all tankers in the world and all the folks building ships in south korea of with full employment, where they going to go? so, it is a structural issue. [laughter] so when i say reset i am saying partly structural but i am also saying a crisis of the virtue of values that because we have made money people will do anything to

get money. kill you, rob you, home invasion. whether it is somebody invading the mortgage on wall street or invading your house on south street they will do anything to get money. that is a crisis of virtues and values. so how do you tyrannic negative into a positive? i think we are forced to reinvent ourselves in this crisis. this is going to be a slow-moving train wreck but not everything out of the great depression was that. lot of things were good come of decrees that the modern social safety net, the creation of the fdic. lot of good things came, the marshall plan. 20 years after that when we built the country that it bombed this comet doing well and of course germany and japan our world as trading partners and their political allies. less statistic you have 100 billion jobe's needed right now on the middle east over the

next decade. so they calculate 60% of the population will be under the age of 25 at the end of the decade with the need for 100 million new jobs. how are you going to create 100 million jobs and money are losing 50 million jobs? as you said you don't know the ceo who is hiring so there's nothing more dangerous in the world than someone with no hope, no skills, no economic opportunity into much time. do you follow me? the real driver for the taliban, the recruiter is not the ideology. it is economics. so what i have said is we have got to create a generation of young black, brown, white, orange everybody entrepreneurs. this is not about race. with do you are black, white, brown or yellow you want some more grain. we have got to create a generation of entrepreneurs,

people with an idea. that is the only place this coming from. i think that is a good thing, not a bad thing but we wouldn't be doing it and thinking about it if we were not pushed to the wall. i would not want to live in the world we have five years ago. was all about materialism, about me and what do i get? i say in this book in a world obsessed with one question, what do i get, we have got to figure out what we have to give. in the world obsess with what do i get we have to figure out what we have to give. what does andrew young do? he is a giver. think about your heroes ender sheroes. they are all givers. there never talking about themselves. they are always figuring out what they have to give. >> if you look at bill gates, people were beginning to resent him, as creative as he was and he had to stop just making money

and devote himself full-time to giving money before he gained respect. at the local level i think the same thing is true. the people who become our leaders who are most respected, people who are giving to others and dr. ball, i don't know anybody that is visited more countries than you have. >> wells fargo and l.a., wells fargo bank is the largest bank within the bank, a 600 billion-dollar bank, about $40 billion. they donate about $12 billion back into the local community. it is the most profitable bank within the bank so the more they give the more they get, so we are not talking about kumbaya. >> that is true bark companies

too. lamps the's companies thrived because of their generosity for the most part. home depot group because it got involved in this community and they won over the market but go ahead. you have not said anything. >> my job is to moderate. [laughter] but now that you have given me the floor, you know i think your point about job creation coming from small business is right on because that is the history in this country, and then you read john's book. john, he is an unusual sort of fellow. when you read this book everytime you turn the page he is taking a risk. but the world is in full of people who take risks, especially right now. we are quite risk-averse so how do we get people to take those risks, to create this growth in the economy that you were talking about?

john's story is based on five principles about the good things that will happen to you if you try. >> actually i think people want to take the risk. i know so many people who want to start companies and want to expand their companies. it is just very hard right now to finance it. so much of the money is in short term. it is in hedge funds and selling the short and building things so we have got to get the act of facilitating and building. i advocated a change in the capitol gains structure and that was a nonstarter but if we award for people making money in the year ended day. whatever reward them for building something over ten years. the great wealth creators in business for the last 25 years are long-term players. think above google, microsoft, warren buffett. these are all long-term players. there are people that have great wealth themselves in short-term

game but they have not created great wealth for others. they are all people, even when i was on the board of walmart or the organization you love to hate but they have come a long way and employ 2 million people, 2 million jobs. they can pay people more and all that they are creating jobs and providing good reasonable prices to people. >> let me pushback if it is okay little bit. on the walmart thing, you were not saying they are bad but let me use it as an opportunity to amplify that. nobody said walmart had to be the judge. is a stepping job-- steppingstone jabr cooligize me crazy when somebody looks at is the-instead of a positive. because you are not happy, what i've found is if i don't feel

good about me i'm not going to feel good about you and if i don't respect me i'm not going to respect you but the problem is not what we are doing. the solution the problem typically is staring us in the mirror. to it viewpoints you may. wine, financing. there's a guy who grew a company from what 60 billion. it is a god mandated job drivers and heads of state to push what you just said. >> i am. >> i know you are. you just talked in the roundtable less week. we get into negative epidemics. we assume h1n1 is going to take this over. i was in asia last week and everybody has got a mess on. i am not saying don't take precautions. i'm just saying we just assumed hiv is going to take this over. whatever this, is coming.

the book the tipping point said that with positive role models the communities stabilizes. i did not say 80% role models. i did not say 50% role models. i did not even c-tem% rule models but the committee stabilizes with 5% role models. why did degette want to be-- that it is brilliant. he is modeling-- let's give him something different and see. let's give him, i mean-- is a surgeon, a doctor. how many black curls avmed a woman with a business card and a mansion and all the stuff she has got. we have got to make-- make smart sexy again. how many little boys have met 18? wow, i want to be you. you got rich legally.

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