>> do you believe that our banks are overall much better shape than they were three years ago? >> yes, senator. >> you agree with that, secretary? >> i do, senator. absolutely. >> definitely with respect to national banks. >> yes, sir. >> okay. do you believe that a lot of it is because of required capital and the build up of capital, not everything, but you believe that's central to that? >> i do believe it's central. i think there's been a good bit of derisking during that period. >> is there some risk to the economy if people try to take most risks out of bank system?

you can't take real risks out of the financial system, can you? >> no, you can't. >> we wouldn't want to, would we? >> you wouldn't want to. >> governor? >> that's correct. it's always a question of one properly understood and managed risk and a capital bufferer when things happen that you don't anticipate. >> i would agree with the governor. >> i agree, also. >> thank you. >> thank you for your testimony. with the continued threat from europe and the provide herb that risks and the financial system must be appropriately managed, we must remain vigilant and

complete the implementation and reduce systemic risk. this hearing is adjourned.

lye coverage of a hearing looking into the defense department's 2013 budget request to congress. defense secretary leon panetta and martin dempsey testify before a senate appropriations s subcommittee. british deputy prime minister and leader nick cleg testifies tomorrow in london. more than 250 witnesses have testified. this week we've heard from former prime ministers gordon brown and john major. live coverage gets under way at 5:00 a.m. eastern on cspan 2.

a group of technology experts set down to discuss the history, evolution of the internet. the panetta institute hosted this two hour event last month. >> good evening, ladies and gentlemen. welcome to the monterey conference center for the 15th anniversary season of the panetta institute lecture series. 15 years. this year we've been discussing the revolutionary changes that have affected our nation in this new century and reflecting on what the transformation mean for

our democracy and for the future. we heard on the long and short perspectives on economic changes that impact our future and we look for inspiration from our founders and past president as we witness the changes in the role of the presidency as the electorate decide to prepare who will lead our nation. throughout each of these discussions there's been a common element that's touched a topic from the up risings in the middle east to the crisis in the global economy to the ability of presidents and candidates to communicate. the way we live our life has been transformed because new technology called the internet.

when we launched this lecture series 15 years ago, would we have imagined that people could watch archived versions of our programs on their phones or a firm would launch an ipo based on friendships and funny photographs. would we have been able to foresee this would become the primary need for young revolutionaries to communicate with each other and the outside world? the internet drives the hottest stocks on wall street, shapes technology cal innovations and grabs the hottest sound bites. it's that tremendous impact on society. it's had tremendous impact on government. it's had tremendous impact on other institutions and have changed the way we live, the way we work, the way we learn, the

way we profit, the way we govern and the way we communicate. are we prepared for the consequences that come with speed of information? from the threat of the cyber attack to privacy concerns to the growing dominance of companies like google and facebook. our individuals and nation protected. how are cell phones, blackberries and iphones changes the way we relate. there combined touches off almost aspect of this diverse uptake including technology, security, safety, politics, economics, communication and

culture. our first guest is vice president and chief evangelist of google and widely known as one of the father's of the internet. please welcome dr. vincent. the second chair from the far left. >> our second guest is founder of one of the most widely read, linked to and frequently sited media brands on the internet, the huffington post.

she's written extensively on the development of the internet and the need to include engagement, to improve trust and to include authenticity and new forms of media. >> our third guest is a journalist and internet safety advocate who has been following the development of the internet since its early inception. he certained on the online safety group where he chaired the education subcommittee and wrote the education of the group report to congress. presently, he reports daily as technology analysts of cbs news

and kcbs. before i forget. please remember as we told you in our notice that the program runs until 9:00 p.m. usually until 8:30, but we have two full hours of these wonderful speakers. leading the discussion is an experienced journalist and moderator who has been at the forefront of the study of new media and it's impact on journalism. he's founder of the public fairs project where he's launching an election year project called face the facts usa.

>> how are you? good to see you. thank you very, very much. i'm delighted to be back to include this year's wonderful series focusing on revolutions of the 21st century. the internet and social media represent the most remarkable and transformative technologies we can imagine since the creation of the automobile, telephone, lightbulb, newspaper. just about anything we can imagine. just a few short years it's become impossible to think of life without these technologies that become utilities in our lives. what lies ahead?

where is this all taking us? where will we end up? i'm here with three guests who have studied this topic and committed this topic from just about every angle from communication, journalism, security safety, commerce, innovation and on and on it goes. we'll get started. it's great to see you all. i thought maybe we'd start with our audience. it's a good place to start. for those in the television audience or those following us online, you can play this game too. how many of you in the audience own and use a smart phone? raise your hands. how many own and use a smart tablet of some sort? how many of you get news, information, weather, the stocks online?

how many of you don't do anything online but subscribe to newspapers and that's how you live? the subject of this, revolutions in the 21st century. is this a revolution or an evolution? >> it's both. any revolution that you know anything about starts in a way that might be small. getting that first airplane off the ground by the wright brothers is not the same at flying a jet at 50,000 feet. internet is a revolution. it took a technology which was considered crazy at the time by the traditional telecom people and made it work for computers. it's evolved over the years. >> you see this as revolution. >> i see a revolution that has to evolve.

that means it's starts as a revolution and then it becomes an evolution. >> what makes it revolution? >> it's revolutionary because the previous communication technologies would not have served to allow computers to freely interact at the scale and speed that they do today on the internet and even did in the beginning. >> it's unquestionably a revolution. first of all, it's given voice to millions and it's soon going to be billions of people who otherwise would not have had a voice. for quality and the way we live our lives. for good and for evil. for good in that it's like saying we have all these amazing minds potentially who otherwise would not have had a seat at the table. now if you think of the three billion additional people are

going to have smart phones or some connection to the internet between now and 2020. all these people, they're rising billions as they call them, are going to have a seat at the table potentially adding, contributing to everything that we are. we know about life and everything that we want to contribute to life and everything we may want to avoid about life. >> maybe it's revolutionary because before we came out here i just tweeted this event and i live in 140 character world. i don't need to conjugate a verb anymore. >> what the internet makes possible is for everyone to contribute to that conversation. finally, after the 20th century,

if you look at radio, television, newspapers, magazines, they were all the same model that guttenberg started. today we have the model where you don't have to be a priest to have a voice. that's the revolutionary change and the history of humanity. >> some might say it's true. we're just moving everything faster. there was a telegraph, there was a radio. there was television. >> the reason that's dead wrong is what this system does is facilitate group interaction and discover people that you don't know that have common interests. you don't have to know who they are in order to interact with them online. this is a very different environment. >> all a good thing? >> no. >> in a word. >> no, definitely not all a good

thing. the way i see it is it's this amazing new chapter in our history. >> in human history. >> in human history. you think of it it's as adam told eve in the garden of eden, i was there. i know that. >> he didn't tweet this. >> that's how old i am. he said we're living in a time of conviction. i think we can say again. while we're in a kind of garden of eden, the internet has made it possible, but there are snakes. not just one, but i've identified two snakes in that internet garden of eden. i think it's important that we may attention to the snakes before they grow so big and overwhelm us.

the first snake is the hyp hyperconnectivity. i have two daughters. one graduated from college and the other be will a junior. it's hard for me to convince them not to sleep with their smart phones and iphones. it's becoming more dangerous than to sleep with guys. >> snake too. snake is what i call the fantasticization of my life. the kind of circus type, something going viral or

something on tweeter. something is going viral. can we stop for a minute and ask why. why they should be going viral? whether we dare. it's really an extension of what it is. the other day i look up and prepare them. donald trump to endorse mitt romney. is that really breaking news? it's like if he was endorsing obama, it might be news. >> something really delicious about the analogies you're using. we got the garden of eden.

along comes this woman with apple. there's this company -- no, we don't want to go there. it's when the general public get sboos the use of internet that we go from eden to something else. the general public is the full range of human. >> larry, i want to ask you about fetishes, if i can. fetishizing of this whole viral thing. you got to go viral. question asked later if there's any value to it. what's your take on that? it's a fascinating idea. it's trending and follow this and follow that and my twitter stream is pouring the stuff. i'm lost. >> we all watch paris hilton and lindsay lohan become major celebrities for god knows why. now we can all be major

celebrities in theory and anybody can create a you tube i didn't do owe or tweet something stupid a stupid. there's the possibility that millions will see it. a lot of garbage will be published. it's for individuals to have critical thinking to know what's important and what isn't and to have the filters to pay attention to what's important and relevant. while at the same time not having such fine filters. i do think that the internet makes it possible for lot offense peops of people. there are criminals who go on the internet whether for economic crime or harass people or enter into relationships with

people that they might not be entered into. >> you worry about our safety and security? >> i don't worry about it, but i do run a nonprofit called connect safely. >> what is that? >> parents understand internet safety. the issue is we see the glass as mostly full with a little bit empty. we worry about bullying but the vast majority of kids don't bully. we worry about predators. small percentage of people are affected by that. it's not so much worry as you walk down the streets, exercise a certain amount of street smarts in order to protect yourself. >> arianna, you raise the value position. what is this worth? i think of tweets that told us bin laden was killed and blogs that reveal that dan rather's expose on george w. bush was wrong.

i think of the access that people have had that rise to the top of your scare. this is a kind of empowerment that we've not had in human history before. >> right. >> what is coming in terms of people engagement is the one. we see one kind of power that we have at the moment when super pacs and elections when we have these incredible power to really drive an entire committee and country who certain special interests want, that's the only way to encounter that. it's really through the fact that millions of people are engaged, involved and participating. they now have the ability to be heard which before belonged to

people who could contribute or whatever made their business successful. >> do you think the people reaction online is another kind of example of being heard effectively? >> absolutely. the online piracy acts that would allow the government to shut down certain materials. the people got kocongress peopl who sponsored the bill. millions of people signed an online petition.

>> let me ask you this. could you ever in your wildest imagination have imagined we would end up here with instant communication around the world, able to communicate with someone in new zealand, for example, free, instantly? >> of course. this whole thing is unfolding exactly the way we planned it. we really did appreciate how powerful this could be. we made a couple of decisions in the engineering design that were going to give this future proof life. one of them was to make sure that the neck was not designed to do anything in particular. it was designed to move little

bags of bits from point a to point b with some proeblt greater than zero. it's a all we asked and the rest of the recovery was another layer on the protocol. that's one thing we did. since it doesn't do anything in particular, not everything perfectly, but it does a lot the second thing is these packets didn't need to know how they were being transported rather it was a satellite link or optical fiber. that meant every communication technology that was invented from 1973 when we did the design to the present could be swept into and absorbed by and used by the skber net. both of those two things were at the top of our heads trying to make this as adaptable. >> that's amazing. i know that you have drawn the

distinction between information, knowledge, wisdom and how the system is connecting or not those things. talk about that. >> actually, before i do this distinction, i drew this distinction. he said that knowledge has three stages. he called them science, opinion and illumination. science is facts, data. we are now swimming in data. we have information about everything instantly. we also swim in opinion. we have opinion on everything in realtime. we are lacking wisdom. everybody has to agree on that whether you're republicans or democrats. they don't care about politics. you see leaders in every field

who are very smart, who with high iqs, great degrees and making terrible decisions many times a day. we look around and thinking was anybody home with lehman brothers. >> the wrong people were home. >> these people are not stupid. sometimes i think it's because lehman brothers and sisters would still be around. my point is why are we making so many bad decisions at a critical time in history when we need wise leaders. i believe people are disconnected from their own wisdom. the thought that we're always on means we don't have any time to connect with ourselves.

we talk about those are the times when we came up with the most innovative ideas. it's not in the middle of a crowd that you ultimately create. we now have a generation growing up incapable of solitude. >> it's not just the generation growing up. we see it. i've watched you. you're texting constantly throughout. >> also, the hard way i learned when i fainted from exhaustion. i hit me head on my desk, got four stitches in my eyebrows. it started me on this journey, speaking as a recoveryi iningin addict. >> i think we sell our young people short. it is true they are tweeting and facebooking and creating content and