surprise to us. our team took the challenge and after some consideration developed a really special program. we chose to go to a juvenile detention center toayv work wit young women in partnership with story catcher's theater. every week, every week, two members of our chorus go to the illinois state detention center in warrenville, working side by side with the theater teaching artists, developing stories and lyrics written by the girls, the inmates themselves. their stories. stories that are hard to tell, stories hard to hear. after four months of preparation like this, the cso composer in residence also goes to the center for residency, and works on developing songs with the girls. they write the tunes, and@ç=q s helps orchestrate it. she arranges those songs for

instruments, who are then performed by the members of the cso and the civic orchestra of chicago, who ultimately perform with the girls their original musical theater piece. the performances for the other girls in the center, and all of their families, an incredibly powerful experience, telling the stories that are often untold, hidden, locked away. you can imagine the powerful emotions that fill the library of that detention center. i've experienced it a couple of times as a guest. some of those families have never heard their daughter or fp or granddaughter communicate so directly. they didn't know that she had the power to share that story, which is untold, and therefore, unknown. that hour of performance changed the lives of those girls, those families, for me, forever. that's what i mean by art for life's sake.

[ applause ] thank you. the follow-up activity that takes place before or after those four to six months. i must say, i was rather skeptical[÷iç about his participation before i first went to warrenville with him. he requested a piano, and the two singers, the chorusters who go there. and they didn't know him, but they knew the singers well. twice each year he does this. he goes and spends about 90 minutes with about two dozen girls from the center. and you probably think this is just as crazy as i did, but in fact performing opera oreas with the women he knew so well was offering a mirror for these girls' lives, and an

inspiration. where else do you hear stories of anger, fear, deception, family strife, betrayal, love, and possible feats of courage -- opera. [ laughter ] somehow, moti knew that, and he knew exactly how to convey that to them, to have someone of that renowned care, about two dozen girls in a detention center in a small town in illinois, imagine what that means. and imagine how that is so affirming in their lives. art for life's sake. at the kennedy center, we overflow in the sharing and telling of stories. you probably know all of the programs, and so many of you i've met here today have told me about how you attend programs at the kennedy center. but i suspect there are a number of programs that you don't know about, because i didn't know about them much, and i'm paying pretty close attention. and until i got here, i didn't know about them.

so in addition toz! the daily e millennium stage performances, the six productions of the washington national opera, the nearly 30 weeks of subscriptions and pop concerts of the national symphony orchestra, the annual international festivals, the extraordinary range of ballet, opera offerings, cutting edge dance in theater programs,>ñ$añ blockbuster musical theater offerings, we present and center. but we also have perhaps the most extensive local and national educational offerings in the country. i'm particularly interested in this for personal reasons that myron already told you about, but i'm still going to say them if it's okay. so standing before you is the product of primarily a public school education, and in the third grade, my elementary schoolteacher opened the

classroom cabinet and said, what instrument will you play? not do you want to play, but what will you play. and i am9?j$ere today because i had the opportunity to find myself through music. he got the story right, didn't he. that teacher in that public school gave me the first tools and the curiosity and the passion to find myself, to write my story here in the arts. i believe fervently, that every child, every individual in this country deserves to find themselves, whether it is in academics, athletics or the arts. arts education has been diminished to such a degree, that generations now have lost the opportunity for even a basic education in the arts in their school day. arts organizations across the

country are desperately working to supplement programs that do exist, but there are just truly insufficientel$s resources to ee that all children have that experience in the classroom. the work we do through the kennedy center's education department supports teachers, discovery of themselves through the arts. déw as i said, i didn't know all of them before i came to the kennedy center, and i'm still getting to know all of them,dñ÷ because they're so multitudin s multitudinous. but i'll share what i do know about with you now. the kennedy center spends more than $1 million annually on its work with schools in the district of columbia. and in this local region through such programs as the d.c. partnerships schools, the nso in your neighborhoods, get on the bus, and my ticks. did you know that more than

35,000 teachers participated in 730 professional learning programs provided by the kennedy center. we're teaching teachers, not just how to teach the arts, but how to use arts in the classroom, to teach other subjects, such as math, and science and historxñgñ did you know that the center provides lesson plans, audio and video podcasts, student interactive games, and the how-tos for teachers to use the arts in their classroom, and that in this past year more than 8 million interactions through the kennedy center website and through the k through 12 of area of itunes took place. 8 million. there's a need. there's a hunger for this. did you know that in 2014, over 35,000 students with disabilities from across the united states participated in programs at the kennedy center.

did you know that the kennedy center worked directly with 657 -- 657 -- not 658, darrell -- 657 college and university theater departments across the united states as a part of our american college theater festival. through its education efforts, the kennedy center directly, directly touches 11 million people every year. this excludes the 2 million who comehq

kennedy center has commissioned or co-commissioned 36 new works for young audiences. new theater. addressing issues that children are experiencing. we have countless stories of alumni participating in various types of programs, professional it's instrumental or theater. they go off and do great things. you find them in opera houses, in orchestras. they win awards. they're in the greatest shows on television, performing and writing. what an achievement. the kennedy center's education programs are delivering on a promise, a promise to excite young audiences, to support teachers, and perhaps most importantly to encourage young aspiring artists. additionally, we provide thousands of patrons access to free performances. that's the access that we believe in. in other words, we want to

support the story telling of the future, and the future of art for life's sake.ax[x in our next decade, i expect to grow on the achievements of our last 40 years of programming and service.♪8ç as you heard a little bit about already, we have a new expansion of the kennedy center which will open in less than three years. fid in that expansion will be for creating and experiencing the performing arts which will further our promise of keeping artists central to our cultural dialogue, and break down the boundaries between artists and audiences. we hope to cultivate a accepts sense of discovery and innovation. risk-taking, an adventure. we break ground on this new campus, south of the existing center, on december 4. note that date. december 4 of this year. nearly 50 years to the day when

the ground was broken on the kennedy center. what an auspicious day. a new generation, a new era, but remaining true to the remarkable individual for whom the memorial was created. president kennedy is quoted so often, and he had so many quotes to share that were meaningful. to further the appreciation of culture among all the people, to increase respect for the creative individual, to widen participation by all the processes and fulfillments of art, this is one of the fascinating challenges of these days. what drew me to come to the kennedy center was not just the vastness of the program offerings, but the platform for the role ofbgc"d arts and cultue in our nation and society. i believe that story telling of our lives will happen with

passion and creativity of artists, and the audiences who engage with them. we will seek so fulfill president kennedy's noble mission one story at a time. thank you. [ applause ] >> picking up on your last comment, how do you feel the kennedy center can improve its ability to live up to such a noble and grand vision outlined in many of the quotes by john f. kennedy? >> the work that we undertake at the kennedy center, and as arts

administrators and artists around the country, is one that uárjár+e, and belief. and the good news is that there are people like our patrons who us, and adrian and helen, all of you who care, that we can get this work done. but it cannot be done easily. it cannot be done in a gratuitous way. we have to recognize and believe, like missionaries that art is really important in our lives. and candidly, that's why we need these opportunities to talk about it. and you need people like ricardo  eloquently and to give so generously. as i think about my time here in washington, i really want to support the programs that you've heard me speak about, in terms of offering access. but more so opportunity to

participate in the arts. this e( really big piece of that. without even realizing the opportunity initially, we have, in discussing this project, really come to understand the value of having free-form spaces, where artists and those of us who aspire to be artists, or appreciate the art -- the creators, will have a better contact with one another. and so this space, the new expansion will be about connecting people to the art and to the artists even more than they have. to break down the barrier that sort of exists between where we sit in the audience and where they stand or sit and perform. and yet, we'll have the traditional spaces as well as the new and informal spaces. so we'll be able to celebrate all of it. but it's about providing access and opportunity to participate.

and that takes mission and the work of all of us. >> thank you. are there any types of programs, concerts, performances that you'd like to see more of at the >> thank you to the people who are writing these good questions for me.xk i grew up loving -- you heard me say that i love the st. matthew passion of bach. i also love stra vin ski's rite of spring, but i'm also compelled by the work that's being created today. and i think that we need to have more work that's being created by artists today. so one of the great things is that we have the little dancer, which is a production -- musical theater production that will be opening soon at the kennedy center. and it is about artists who are creating today. i think we need to expand on

that. i think we need to have other types of creative artists. i think we need to take a few more risks, push the envelope, bring our audiences along to understand and appreciate that. i keep being told that washington, d.c., is much more conservative in their tastes, but i'm going to push you on that. and hope that you'll follow along, that we will promise to be trustworthy guides in that process. but let's have a journey. you know, beethoven wrote some pretty experimental work, and it was very experimental at the time. so let's find who those artists are of our day. >> thank you. what is the future of the washington national opera? >>(mç well, the washington natil opera is really old. it's been around a lot longer

than the kennedy center has. and encouraging, and continuing to develop it as an artistic ensemble, an artistic organization. you can't ever stop supporting the growth of artists. this is -- you can never say, oh, well, that orchestra is really great, or that opera company has done everything. it's a constant support. opportunities, stretch, grow. and we will continue to stretch and grow, and the success and future of the washington national opera is great. [ applause ] >> thank you. >> some of these questions might have an obvious answer but we like to hear it from you. so i ask, will ballet and dance continue to have a strong place in the kennedy centervxç programming? why, or why not?

>> the real?@-w attraction to a individual who has spent 36 years going to multiple performances of an orchestra every week is that i get to do andn4vz ballet and dance are jus important in our work. in a place where we have all of these art forms under one d roo and actually the opportunity to look outside to the rest of the country to see what other art forms are not yet fully center, is really important. it's fun, it's exciting to have all of these art forms. and they build and grow because of the synergy of being there in one place. so i think that is an obvious question, but i'm happy to >> are you happy with the national symphony?

what will it take for the national symphony to take the leap into the top level of american orchestras? >> well, just as i said about the opera, is also true for the orchestra. you know, the word maestro actually means teacher. we think of it as an honorific in the music world. but what it reallyp2fñ is teacher. every orchestra needs to be led, guided by teachers. and they often need different kinds of teachers. one teacher will offer one -- like having the science teacher, math teacher, et cetera. christian is an extraordinary musician. we need to continue to help elevate the music making, the quality of opportunity for music making, and the experiences both for the audience and the orchestra. it's really important for you to know that being an audience member is as important to the

ongoing success of an artistic ensemble, whether the orchestra or ballet or dance, is ask/"> @% important to being on the stage. it is the relationship between the performers and the audience. i can feel you. you feel what's going onz in t audience. and so your role as audience n the development of an artistic ensemble as anything else. so i need your help by being a part of our community that supports and nurtures this orchestra as it continues to grow as well. >> orchestras in minnesota and atlanta have in recent years been 2h6dsbeset with labor stri. do you have any worries about that happening in washington? >> well, after six weeks on the job, i'm an expert on everything. [ laughter ]

one of the first things i have wanted to do is to get to know all of the people in the the performers, whether in the nso or the upper house orchestra. and it is vital to have an open, honest dialogue around the hopes and aspirations, realities, and future plans for your institution. we don't all always agree with one another. kennedy center, i'm saying that generally about performers and those of us who support the performers. but if we have open dialogue, honest, supportive communication, you can work through problems. and sometimes you have those

moments where you hit heads, but the idea is if you talk enough, if you communicate, if you mostly listen, and listen for understanding, you can get through that. and so i'm expecting that we for understanding within all of the parties at the kennedy center. >> the audience for classical music and the other arts featured at the kennedy center is an old one. what are your ideas about attracting younger audiences to >> it's amazing how the same question has been asked for 36 years. and i always say 36 years, because before that i wasn't aware of those questions being asked. b have been asking the same question. so either we are dorian gray, and we're getting younger and we're the same audience, or people are still coming. and people are still coming.

think/r0z about how many people coming to performances all the time. the biggest issue that we have is that there are so many opportunities to engage in so many different types of art forms. only a few. that there were only a few theaters, there was only an orchestra, or one or the other in a city.u and now there is so much proliferation, there's so much diversity of music and creative performing arts taking place in our lives, that we who may have used to attend all 30 subscription concerts, have too many opportunities. and we're spreading ourselves thin. so i actually believe it's about growing audiences, not just you do have to worry about who are in the pipelines. are there future audiences coming to whatever it is that you do, and you need to build

that through access, participation, exposure, arts education in school. but the audiences are notbnhgz necessarily getting older. in fact, in chicago the audiences, in the time that i was there, went from an average age of 63 to 49. soibmrj about how you talk about it, how welcoming you are, what the experience is like, what the experience is outside of the performance space, as well as inside the performance space, how the artists communicate with the audience, how you respond and have a dynamic relationship with the audience. the audience is there. wonderful statement that was in a review of a concert recently. and it was a young woman who had never been to a concert before. and she made the statement that said said, it's much better to go to a live performance, because in a live performance you have all

those other people and you're having the experience together. and that's the point. we can always listen at home or in our head-sets or other places, but it's about the shared experience about the live performance that is irreplaceable. and everybody knows that in the end. so i think it's about making sure that we provide the that the experiences as present day are important@> to audien >> do you plan any outreach for elderly adults in such senior retirement homes? >> this is actually one of the unsung, untold stories of what institutions like ours arel

told. but going into places where the individuals don't have the ability to get out into a concert hall or performance space is really important. it's also really important sometimes to provide the transportation to come in for those free programs that do exist. and it's really important for us to honor those who have been attending for many years, and then for whatever reason can't as i look))pé all of the progrs that we have to offer, i am looking at where we may have gaps, or where we may have an overinvestment. and i look to calibrate those, so that we serve the very -- the broad continuum, from the first person who can fall in love with an art form at the youngest age to that individual who may need it more than those of us who can walk into a performance space, to celebrate their life and their love of the performing arts.

>> how will the kennedy center use its future outdoor video wall that is part of the planned extension by architect steven hall? >> stay tuned? no, that's not a good enough answer. one of the great things about the work that we're doing with steven hull architects is that they are really pushing us to imagine the things that we haven't yet necessarily dreamed of. and certainly there are some great examples of simulcast from walls, like the one that is being designed. colleagues on the artistic programming staff at the kennedy center, have a lot of exciting ideas about all kinds of things that can be filmed. there are opportunities for improvisational dance for

musical backdrops. and those that are sort of spontaneous. as well as the ones that might be a film series, or a simulcast from the theater, or a from theñ a program. a but it gives us huge flexibility to do all kinds of new things. it's really exciting. >> what's the future of the millennium stage? u really great question. the millennium stage is 14-plus years old now. it was new and innovative. and when i heard that it was being announced, i said, how in the world are they going to have 365 days of performances? and lo and behold, they have 365 du%$f performances. it's really impressive. you can see it in the moment or you can see it on our website. so that'sy=x really great. but as with anything that's innovative and new, as is with art forms that are hundreds of years old, it needs to continue to grow and evolve.

and we don't have any specific plans. we will ststb always offer tha programming, that free programming every single day. but as we have a n÷cz expansioñ to the south campus, we're j for the millennium stage as well. >> today is the last day of hispanic heritage month, yet the kennedy center honors has only history, and none this year, according to this questioner. recognitionúu#$7ñ diversity in honors? >> as much as i would like to ñè6ñ probablyó&ãthe most known event that takes place at the kennedy country, throughout th*g countr and>a4 country, throughout th*g countr

reinforce also the fact that we do so much programming at the kennedy center. and i was trying to share just a today. and the programming that we offer is so diverse, and i -- and it's even greater than i ever knew, as somebody who i thought i was paying attention z the arts, especially in the nation's capital. but it is a veryxs(én symbolic to receive a kennedy center honor. and that's why the process was changed a couple of years ago. and an artistic committee that for its role in the arts, its diversity, and its art form, and its diversity in background. i think we can continue to refine that process.

and while certainly we don't want to be dealing with quotas, or have to do this, or must do that, i believe that the symbolic nature of the honors is really important. and i look to continuing that, and strengthening that into the future.zzpo÷ >> do you feel that cultural diplomacy is a tool that could be utilized more and if so, then what role do you envision the kennedy center playing in this international arena? >> ultimately -- first of all, i think you all have heard me say that the arts are a way of communicating with one another, in a way that words can't. and so i think that the performing arts, and art, the visual arts are a way for us to understand one another in ways

that politicians, elected officials, individuals and groups who have strong positions may not be able to do so well. when you sit side by side and you make music together, or you perform together in a theater group, you build a rapport and a relationship that transcends any kind of conversation that you can actually ever have. so i think cultural diplomacy is really vital for us to explore, and for those of us who are in this world, for us to push forward, and to support even greater than perhaps already has. i have had a really fabulous opportunity to tour the chicago -- with the chicago symphony orchestra around the world. and we have used a program that we call sicitizen musician as a

opportunity to provide a forum for bringing people together, to going to nursing homes, to going to rehabilitation centers, tíy orphanages, to help young musicians aspire and train to become performers as well. and those perhaps are the most meaningful experiences that i had in all those years of touring, and traveling to the great places with great concert halls around the world. so i really believe that cultural diplomacy maybe is not the right word for us to use, b6 o think about citizenry, and sharing artistry. if role model in offering that, the nso did this for a number of years, through the american pro don't have as much music or a large orchestra and those kinds of programs, and they would go

out -- the musicians would fan out into the state, and go into schools and community centers and libraries, and offer their programming. that is some of the most exciting ways in which artists can

of all the high-tech people and they have all that new wealth. in seattle, they said you come from los angeles, and it's so large. every city thinks the same. and washington says the same. oh, chicago, they're so philanthropic. and they are. and so is washington, d.c. and every city is ultimately very philanthropic, to the degree that they can give. in the case of the kennedy center, we actually reach across the country and around the world, which gives us a really great opportunity, because of our international programming, and the reach of our performances. the most important pitch is the one i just gave you, i believe, which is that0wn art is for lif sake. and without it, our lives are nothing. they're nowhere near as interesting. it sa way we can communicate and share and come together. so in the end, it's about finding people who love the arts, who give back, who believe in sharing, and who want to

share their passion just as much as we who are administrators love to share the passioníppc and there's nothing so rewarding as seeing young people seeing something that you didn't know could happen, happen. whether

on the job that i went to visit with valerie jarrett, and the -- she has attended several activities with us. and she and her team have interacted with us quite actively. i've been on the hill a number of times already. in fact, this afternoon i have a meeting with the secretary of education. it's important for me to have a relationship with:ñ everybody here, and to make a personal contact, and make a personalszs invitation, even though there's active participation at the kennedy center through performances and events. and we are really indebted to the obamas for their commitment, their ongoing commitment to the kennedy center and participation in so many ways. and this weekend, we have the

the bidens. so i'm feeling really good about it. thank you.ñaqa >> what would be your best advice to young women arts administrators who one day want to run an arts organization as you havenzf< done? >> nothing worth working for is worth it if you don't put in lots of energy, lots of commitment, lots of sweat. i have dedicated my life to this work. and it has reaped dividends beyond what i could ever have hoped for. it is work that requires a true commitment, because it is not easy work. it looks glamorous. it sounds interesting./1oñ but you don't get as many rewards as you think you get along the way. but those stories, the young women in the detention center,

the joy of walking into a theater and seeing hundreds of theaomething, and hundreds of you wonder, where did all these people come from, isn't this great? the joy of sharing is theo motivation that takes you through every day. have to ke up, and keep going. have to ke because you do feel like you're changing zf úpeople's lives for good. and that's the greatest reward that we could ever have for the hard work that it takes to do this. >> so far, what has surprised you the most aboutwal÷ washingt in general, and the kennedy center in particular? [ laughter ] >> well, you know, when you don't live here, and you only come to visit for work, you don't know how beautiful the city is. you see the monuments, you see k center, you know about the

river. you don't know how beautiful it is. and this city is so beautiful. táájj and i don't mean that to sound like it's a bad surprise, but i just didn't know for sure until i got here. and it>h2z is really, really a special place. that said, it's really hard to find your way around the kennedy center. you know, those long hallways with the red, that's only the beginning of what it's like to work there. and i can't tell you how many times i've found myself inze;q wrong place without the wrong access code. so it's still a littleblé bit n adventure for me. >> we're almost out%$oañ of tim. but before asking the last question, we have a couple of housekeeping matters to take care of. first of all, i'd like to remind first of all, i'd like to remind you about our i next monday, october 20th, we'll have thomas perez, the secretary of labor.

and the next day, on october 21, we'll have bob molesby, commissioner of the big ten conference. and on november 7th, a few days from november 11th, veterans day, we'll have robert mcdonald, the secretary of veterans affairs. next i'd like÷xla to present o guests with a traditional national press club mug, as this is her debut at the national press club. it will be her first. but i hope you'll come back to receive more as you give us progress reports. >> thank you. >> and the progress i'm sure will be great. >> thank you. [ applause ](a+p >> for our last question, we've had a few questioners ask the following. the statue of -- the bust of jfk in the kennedy center hallway makes him look like he's had really bad skin. is there anything you can do about that? [ laughter ]ú;c

>> you're supposed to give me good questions. he has the craggy good looks. and i think that's how we're going to leave it. [ applause ] >> i was going to say, how about a round of applause for our speaker, but you did it spontaneously. [ applause ] thank you all for coming today.% i'd also like to thank once again amy and nick for organizing this lunch. i give you credit for the intro. and i'd also like to thank national press club staff, including its journalism institute and broadcast center for also facilitating and organizing today's event. and finally, here's a reminder that you can find more information about the national press club, including upcoming lunches that we are just now finalizing for the rest of the year, on our website.

and if you'd like to get a copy of today's program, as i'm sure many of you do, please check out our website at www.press.org. thank you all. honor. we are adjourned. [ applause ] businessman donald trumpl is speaking at the economic club in washington, d.c. tonight. he's expected to talk about his political aspirations and entrance into the business community. they're turning the old post office into a high-end hotel)mzd shopping center. see his comments live at 7:00 eastern on c-span. at 8:00 eastern here on c-span3, a house veterans4afl affairs subcommittee looks into the veterans cemetery operations tñxájt at expanding the system and improving assistance to ,jy bñ(ñ it's been speculation whether jeb bush is running for president. earlier this month, he told an

audience he's thinking about it. he was a featured guest at the "wall street journal" ceo council meeting and he spoke for ]j >> governor bush is on the left. to your right. you're to their right. so it's okay. that's all right. and you brought your coffee. so you can get overcaffeinated as we talk. optics. thank you for being with us. governor bush has got to go back to miami where you'll miss the cold wave by leaving just in )v thank you for being with us, i appreciate it very much. >> thank you. >> a lot of familiar faces in the room to you, i suspect. to get ready for this conversation, i read some speeches you've been giving lately. and discovered that one of the significant developments of 2014 was that you became ap+÷ grandfather for the third time,

and you told(o&jt me at dinner e about to be a grabbed father for the fourth time. so congratulations. >> yes, that was in my speeches. >> it was in one. and i can tell you, i had the privilege of covering the -- when i tell people in my bureau that i covered the bush white house, they think i mean your brother. it's a sign of age. i mean george h.w. bush, and i had the privilege of going to ken i bunk port, and there's plenty of room there for any children and grandchildren of any age. >> can i appoint a privilege and pride? which relates to my dad and my first granddaughter. jeb and sandra's granddaughter is now 3 years old. she's tri lingual. more or less. her name is georgia helena walker bush. and her nickname in our family is 41. and georgia represents the new america that i know at least on the editorial side of the "wall

street journal" they believe in. and i'm passionate about this as well. the new america is an america that doesn't have hyphens. an america that,0a6 -- where y work and your effort is your definition, not, you know, some identity in a political form of thing. so in political life today, georgia would be a canaéa!gáñ iraqi, mexican, texas, american. she's a quadra hyphenated. >> texans are still americans, aren't they? >> barely. so i'm a texan by birth, my wife is from mexico, my -- sandra is a canadian by birth. jeb was born in florida. sandra's parents were born in iraq. and that is the america that we should aspire to, not the one where we're like dividing ourselves up to find where we're different. but the fact that you're from a different place, or you've got,

you know, a different origin is totally irrelevant. so georgia, when she fills out the form when she's 21, 18 years from now, she'll say not applicable. that will be good news for our country, to be honest with you. so enough about family life. [ applause ] >> in reading those speeches and >> iñdid, i was struck by es and something you said a couple of times in recent months when you've been talking to groups. you said this. you said this nation is experiencing a crisis of opportunity. >> right. >> tell me what you meant by that, and what it means for people in washington. >> well, i think we're missing the opportunity to take advantage of our skill-sets, of our strengths. we focus on our weaknesses. we fight over those. there's massive gridlock, really unprecedented gridlock. and yet this is the most extraordinary country in the world. this country is so much better, when you hear thi!lr director

general of the imfbó1@c talk ab the places in the world, the united states should not be in any category, remotely close to a problem kind of country.q1q we have everything that is necessary. abundant natural resources, the innovative country in the world, the most creative place in the world, work labor laws that are unique in the developed world, a big place full of chances to expand, the history of productivity. all this stuff has just been cast aside temporarily, and we're moping around like we're france, with all due respect. [ laughter ] i mean, the french have a lot of great things going on in their lives. i don't want to be disrespectful. they have a lot of interesting things and great things. but we're not france, for crying out loud. and we're missing -- the crisis of opportunity is, we're not seizing the moment. we're not aspiring to be young and dynamic again. and if we fixed a few really big

substwfd63urthings, these are not little things, we could be american again. >> you want them in order of importance? >> your choice. >> i'll give you five right off the bat. and then we get to the bigger one. but i'd say an energy policy based on american innovation and rú all in. all in. energy secure with mexico, canada, and the united states, within five years. if we aspire to that, with ecan do it. a regulatory system that was based on the 21st century economy, not the 20th century, where we're putting old complicated rules on top of old complicated rules, creating more complexity than perhaps any developed country in the world. we've lost our dynamic nature, because -- i've asked this question of a lot of people that have made it. most of you, all of you have.

could you do what you've done, particularly if you talked to entrepreneurs, can you do what you've done starting over now? and a lot of people would admit that they couldn't, because the barriers to be successful today w . >> figure out a way of how we transform every aspect of a human endevil ere in a 21st century way is one of the great challenges, simplifying the tax code so that we take power away from washington and give it back to people to let them make decisions about how investments take place, not how washington wants. so if you want a world where left-handed albanian tax credits dcroatian tax credits are okay, then come to america. rather than lowering taxes and eliminating as many deductions

as possible to let freedom ring. the fourth thing, i would say, is immigration reform. it is something that is unique and special to this country.gfmo if we movered away from family reunification being the sole driver or close to the sole driver of how people come to this country, 75-80% of legal imgrai immigrants come through family petitions and we dramatically ã÷ economic immigrants, which we have the capability of doing, we could, in essence, create in america, with a lot of other issue that is have to go along with this, we could create a country that would have the first 200 or 300,000 first round draft picks. we would be like fred, you know. aren't you an owner of the -- you're trying to be an owner of the football team, weren't you?

you could be the equivalent of fred smith. it would be an economic vitality of which people around here have no clue. this is a missed opportunity not to do that. and, finally, i think we need radical education for the next generation. lxneration. reform is important, but transformation should be if bigger argument. we're not even close. this is a place where i'm completely frustrated. so if those five big things get us to a point where if we started doing some of those, then we could actually do the other big thing, which is not going to happen any time soon, which is entitlement reform. and if we do it, we'll be young

and dynamic and we'll be the first country in the world that will be a brick. it's not like we'll be a brick country, but i think that's worth aspiring to. i think that will be the means by which we see%x(ñ the middle s income rising again and we'll be much less pessimistic.r@ so the reality with where's the gap between what you just said legislative ground in washington which is why this hasn't happened.

>> so you don't think when the president of the united states uses powers he may or may not have, clearly knows it will be more than provocative to use more than executive order, powers, to try to deal with immigration, that a e that's not provocative? and that's not a deterrent? or -- >> that the problem came from, arguably, came in the proceeding year, not now. >> i would argue that there's enough blame to go on both sides.bkayç and to shift the focus away from the argument solely exclusive on controlling the border, to how do we shift to an economic immigration system. i think that there's no trust anymore. and so we're stuck.

it's the one that's the least complex where there's less political discord, in my opinion. and it's a huge shame, because it's also probably the easiest way to get to sustain economic growth, which is what we desperately need. they're a stretch way beyond what any other president has used. reagan did it, my dad did it. there's a lot of differences between what happened back then, 30 years ago, and what happened now. this lack of trust makes it harder for it to happen. >> and the substance of what the

president's proposed to do or with the way he has proposed to do it. >> it's the way. first of all, i don't know the exact details. frankly, to do something, he didn't permanently change things because he doesn't have anywhere near close that authority to do it. we need to find someway certain, you know, some certainty to get them legal stay tusz and move to a system that is more economically driven. we're the only country in the world that has adult and children and spouse as the family.

every other country in the world doesn't do that. if we could em late the canada -"ty which is totally economically driven, 13-15% of their imgrants come through family petitioning and 70-75% come for economic purposes based on economic need. actually, believe it or not, canada is sufficient enough9afd know where their shortages of labor are. wow, what a radical innovation to be able to know that. i imagine we could probably figure that out with people in this room alone in the united states. if we had the same system, we narrowed family petitioning and dramatically expanded, call it an aspirational%r class, where people could come here and make an immediate impact on our economy, guess what, we would grow at a higher sustained rate. i don't know why a liberal or a democrat or a conservative or a republican would be opposed to that. >> let's talk education for a minute.

frankly, the last several years we've done this, people in this room raised education a lot as a barrier to economic growth. in your opinion, where ef the u.s. education system go off the tracks. what's the way to get it back in the direction that we ought to >> i think we haven't evolved from local schooll1v districts being the governing model. i'm suggesting getting rid of the monopolistic nature of them in miami, the number one

employer is the miami-dade school district. reforming it on the edges isn't going to change that. i've lost my patience on this, to be honest with you. if we started from scratch, we wouldn't have this system. we would use technology and have it be at the core of learning.:j you learn at your own pace, at your own time where time is the variable and learning is the

constant, rather than 180 days, a little butt in the seat is the means by which the school system is funded, whether you learn or not. the constant is time and where the variability is whether you learn. there's no place in the0jx÷ cou that's come close to achieving that. that's what we need to strive for.z3t÷ and, yet, now we have this weird coalition&qb=ç that's protectin status quo and an alliance that doesn't agree on anything other than we shouldn't be able to, you know, dramatically change how we educate kids. and i think, you know, there is a path. it starts with high standards. r(t&háhp &hc% it starts with that and then empowers parents to make it argues for the learning experience to be completely customized. where digital learning can occuc

which rooirs a big change. >> you know, speaking of big time fights political, you've been willing to engage on two of those in this front.7÷

40% at best are college or l yet, there's no one marching in the streets. the fact is, the end is near if we can't fix this. if we just cast off large numbers of people, young people saying, well, it's their family circumstances, it's poverty,

it's -- we validate this. we encourage it. we actually, you know, make it more real that it can happen more often. and it is a tragedy that i think so high standards is part of this.ru!ñ and how do you, if you don't measure, you really don't care. 3p great way to make sure that it doesn't happen. there's this coalition now that wants to keep what we have evení though people cannot defend the

results that we have. we have to figure out a way to create a new coalition, perhaps more radicalized and with a greater sense of urgency to get to a better place. all of the other things that are doable aren't going to solve the problem of the big, social con strants with the have and the have notes because children haven't gained the power of knowledge. >> let me shift to the washington scene for just a second. we all gathered here at a time of fairly significant change in the way that this capital is going to work. what do you advise the new republican majority and congress to make their agenda. what ought to be on their list to dos and, frankly, not to dosm >> well, not to do, is just to make a point.

i think the republicans have increased the majority in the house. we don't have to make a point anymore as republicans.óp>z we have to actually show that we can, in an adult-like way, in government, you know, lead. when the president signs up and offers up is up to him. it shouldn't be too much of a worry for the republican leadership in congress. they should leave. they should take the things that are possible to achieve. they should try to forge consensus with democrats in the congress and they should start passing bills. it's unprecedented.efxzedbcyiy

no one, literally, they do nothing. so showing the adult-centered kind of leadership where you start dealing with, even if it's not the huge, big things which require action, but it could be the excel pipeline, it couldmix accelerating on energy, accelerating the leasing of federal lanl:/t and waters for exploration.

i don't think we should worry so much about the presiden4i my guess is he'll engage. if he doesn't, fine. that's his prerogative. but i think republicans need to show that they're not just against things. that they're for a bunch of things. and there's a lot of stuff to be done, whether it's onhcfsintern protocol or net neutrality. or patent protection. or tort reform. there's a lot of things that republicans, i think, have the ability to garner 60 votes in the senate on health care reform and to replace e place it with something that fits the 21 stz

century work force that we now have:nss this should be a time of incredible possibility for republicans to show what they believe in. >> you were obviously, a different ú0f3 what's your advice on howfxñ tot beyond what everybody agrees has been an unsats fact ri dynamic.y >> i think the president has the

has the upper hand because it's one person that could do it. to focus on things that can be done and do them. the budget, the first time in five or six years. i know that sounds like a really radical idea. but they'll pass a budget. they'll actually go to committee. they'll talk about the priorities and they'll go through the regular order way during the next year, which will be quite helpful. and then we get back to a place uqr#ferent things out through a process where the budget is created and, hopefully, with a less of a deficit going forward and the president can respond to that. and if he engauges, you know, i

think it will help his legacy, to be honest with you.aa&t÷ but if he doesn't, it sets the going to be different than thvó previous elections because you republicans, you're the party of where for progress.d eqo okay, you said it. you said 2016. what do you think about 2016? >> oh, me, personally? >> i think '16 is like any other year. so i'm thinking about running for pet. and i'll make up my mind in

short order not that far out into the future. it's the same decision-making process which is can i do it in a way, do i have the skills to z lift people's spirts and not get sucked into the vortex.;bgço,g can i do it where the soul searching for my family is tolerable. it's a big sacrifice. it's a pretty ugly business right now. i'm not saying oh, whoa is me here. but there's nothing that i could do to subject my family to, that's my organizing principle. that's my life. so i'm sorting that out.cq and i don't know if i'd be a i know -- i kind of know how

republican can win, whether it's me or somebody else. and it has to be much more uplifting, much more positive, much more willing to be practical now in a washington world, lose the primary to win the general without violating your principles. it's not an easy task, to be >> frankly, no one really knows that because it hasn't been tried recently. my personal opinion is mitt romney would be -- would have be and would be a great president right now.yvtpl+$tñd?i

here's a problem. how do we go from point a to point b to fix it. i can imagine a lot of power point parresentations and that would be pretty healthy right now. our government isn't working in a 21st century way. there's a big divider in our country and it's just not working. it's because we've never transformed how government works for people.÷u

>> does your gut tell you, the 2016 election, is it about the domestic situation in the u.s.? more about the u.s. role in the world? >> well, six moments ago, i would have said that it might be a continuation of the focus on domestic issueses because they're big and they're challenging. but i think there's a growingbt awareness that we can't withdraw from the world that there's an unraveling taking place. and it impacts our -- not just our security interests, but our economic interests as well.;? so i do think that foreign policy and maybe a re-evaluation of what the role of the united states is united states is in

there are competing parties. i would argue that a president needs to speak few words, but >> i would argue that free trade is part of a foreign policy. people that trade together are less likely to create friction diplomatically or militarily.

and i think that probably could become a bigger issue.v0dz >> let me see out there who has a question they want to ask? right there.xpr+v if you can wait for the microphone, that would be great. >> thank you, governor bush, for your thoughts. just to go back to the point you touched on a minute ago, tradeadf;÷ lines seem today to suggest a time of extraordinary opportunities across all vectors of human enterprise. i think as you point out,

american leadership is going to be pivotal to whether we're able to capitalize on the lines or whether we will give way or succumb to the headlines, one of conflict. the question or can the american leadership rise to that dwz >> we're a growing economic community first.]apt if you ask the former chiefs of staff or the current what, what the great threat for america is, they would say the budget deficit. it is not that we're incapable of, you know, defending the which we have the capability of

doing.@jsd we.damñ still have, you know, military superiority that is second to none.(uh-r4t? instead, where the middle class was worried about their active engaged american foreign policy. because, but for us, who? who has the capability of providing security and stability by all sorts of changes, cultural, religious,

technological. the world is being, you know, disrupted. some in good ways and some in really bad ways. and we are, but for us, there is no source of stablt that allows that transformation to take place in a peaceful way. my hope is that people are much more optimistic about our role in the world. their life is getting better.-]z and that sustains a foreign policy that is more naturally suited for the united states. and if we act accordingly, i think we create a more prosperous world and a more secure world. governor bush, late in the newsz some of the democratic side,

where the democrats focused their agenda right after that election. you brought up five areas. i guess they were things like energy and regulation and immigration and tax and education. well, if political realities, political viscosity limited you to one or two, what would you focus on? >> well, i mean, the two easiest things, can we do it, like, so that you're successful and then you can create a climate where you can be more successful? can i change the question toc+y that? you can't ignore these issues. a sustained period of time over an energy policy that celebrates this incredible revolution that has taken place, there is something that should be marging

bands for rather than concern about, which is the energy renaissance in our own country. so i would saya(p$ getting out the way of that and imglags reform, which is something that if we could give people confidence, we could control our border and shift from a broken immigration system to one that allowed us to have the first 34 4u7 300,000 draft picks. we are growing. those would be the two things that would be less, believe it or not, the less politically challenging issues that allow us to get into a place to get to the bigger issues.z

in the interim, there are some of these possibilities on a smaller scale. my estimate would be to reform corporate taxes. that might deal with the worldwide income challenge. might deal with this reversion. it ought to be the other way around. foreign e foreign companies are buying u.s. businesses here. we should be the condition rather than suffering from it. and it could be the chance to bring back $2 trillion of cash. room have cash overseas where your shareholders would punish you. it might be that four-year life expectancy might go to three.bvm it could allow us to bring back some of that money at a fixed rate. perhaps you could reduce the

deficit and republicans andsl krat c cats would, alike, create half a trillion dollars infrastructure money.rl1f. if you had 500 billion dlarsz and created $50 billion of infrastructure, don't you think that would lift the spirts of america?%-h instead of the proposal of the solve problems in a bipartisan way.vo and again e get to a point where the complexity of our tax code doesn't retard economic investment in our own country. that's a small thick.

that should be done already. that should have beenns done, y know, three years ago.y#1t my guess is, if the president wants to engage, that that's something that he and the republicans can agree on. >> i think we have time for one last question?5úa÷ right here?a governor, maybe just a comment or two on how you see this playing outáñbçç and what this all evolve to? >> it could evolve to a very ugly place, particularly if we pull back kind of the threat of that is there. it also could yield economic benefits if we're fully engaged >> i think the obama 5d min strags continues this to create

constant dialogue by sector, private sector, as well as government -- secretary to ind of arrangements ary to where thezum misunderstanding lessoned and is usually important. i've traveled a lot to china. i didn't go this year, but i went last year. it was right after the summit president obama in palm springs, which, youeíz(r know, by readin wall street journal, which is my newspaper record, it looked like it was a pretty good summit. every person that i met brought up the fact that mrs. obama 

it made no news here. there was normal, motherly things that she had to do, and that's the american way. but the chinese didn't view it they viewed it as an insult to when you have big cultural differences, you have to be completely immersed to eliminate the stupid things.

i think that ought to be the first effort to have full comprehensive engagement. you can't ignore china as it emerges as a world power. the second thing i would say is there's a level of trust that is í>qr(t i'm not an expert to know where we stand today in that regard, then we ought to encourage china to take a leadership rolesh)ñ in helping e global problems. everything can't simply be about their economic interest. i know for a fact it will create huge economic hardships on both sides.dsg÷ it aserts itself in a region

something far worse than that. >> governor bush, we're out of time.r"÷ i think this confers and the one earlier helped set up all the appreciate you very much for >> thanks for the invite.(bz>ñ [ applause ]abr÷fm1rz

now to a discussion of the state of the fan sector. you'll hear from former rz#$vf.. chair sheila behr. they spoke for act 30 minutes on the c.e.o. council in >> i've concluded that bad is bad. and the question is is this organic market growth or not. i can say that since the passage of dodd-frank, and i can we can debate causation, but the big banks have become bigger. the small banks have become fewer. i do believe that there's causation here.

what i would like to do is the house just literally passed, i believe yesterday, a bipartisan bill to add a new chapter to the bankruptcy code to deal with our larger financial institutions. i do believe that should be paired ultimately. and there's so much we have to disagree on. i am concerned about the ability of designation of -- >> all right. that's two big acronyms. can you explain those for the poor people who work in the real world and not washington? ñ we excel in acronyms, but we have really cornered the market on acronyms. so the financial stability oversight council is a group of regulators who i would argue, lc essentially, now have the ability tonxz=z effectively con

any large, financial institution in americav? by designating it be a significant ly important financial institution. it has 50 billion that frankly, from their discretion, they d discern by using ill-defined terms of financial stability and systemic risk that they pose,sn systemic risk of the financial stability to the u.s. anyway, i just think this is a dangerous phenomenon. ultimately, we need to make sure that we have market discipline, which i would define as the appearance and the reality of your own money at risk. to me, there's a little bit of a

bargain here. so the big banks have enhanszed supervision stabd ards on the one hand. but on the other hand, at least i'm convinced, they enjoy zbé @% ability to borrow at lower rates. and i think it's because, again, when you embed so many federal regulators, the market is convinced the mspáors will not let them fail. this is not good for market innovation. it's not good for econ frankly, it's not good for ÷z >> so there might be one thing worse, and that is the crisis in 2008 where there was asf2g polil fiat to create some rubric around the idea of?h+s winding institutions in an orderly fashion. so, ms. behr, do youm chairman about what he says about the dangers of fsocs and

sifiss. >> i think we learned that there are some institutions that are old the traditional regulating banking sector which can pose v so that is the end game.gh9ç i think in terms of if you ooir going to designate it, it is enormous power. if you're going to make a title egg nation, yo regulate them, that's not the the question is what happens if lot of external costs disrupting the broader economy, then let them >> so say wells fargoór(puu a terrible bug, went under and there was a+e1í medical reporor

california, then we would save wells fargo? y wevóo fargo is a the new powers extend to the activities outside the bank. usually, because you do market-to-market loans, it's a slow burn. you see trouble brewing, it $u(u @r(t&háhp &hc% wells fargo fails, i don't think banks in the country, obviously. wells fargo was not the bank ia÷ the bank with the big trading operations. ones that i would worry about as having systemic impact. >> but just raise the hypothetical./0qçs%p a big bank, as we think of being

prudentially sound, gets in big trouble. isn't there no doubt that the u.s. would step in to save it? >> well, i can't speak to what future policyholders would necessarily -- policymakers would necessarily do. i canqsjv sitly advocate for th policies that would turn out the best. certainly after the crisis, you can make the case quite clearly that are capital and leverage standards.sñu i'm afraid thatia7ñ dodd-frank basal have madezb1w far more complex, which i do not believe serves our economy and our nation well. and so,jxqiy to me, again, the r

than done. that we have historically brunt capital in leverage stabd ards in place.pq sf you want to get the proper real estate. and i think that any objective view of history would show that as smart and as good as many of our regulators and lawmakers are, that one of the great ironies and one of the great tragedies is not just the inability to stave off, but some of the policies actually helped led to the crisis. when roughly 70, 75% of the troubled mortgages were backstopped by the federal government through fannie and

freddie, the affordable housing goa goals, there were a number of federal policiesívi÷ that helpe lead us into the crisis. so, you know, the federal government's track record of managing risks really isn't all that great. all of their financial institutions. you, for all intense and purposes, have to reserve little s

>> so what's your voou right now? give us your view? and then, chairman, weigh in if you could on that. >> i think they need to be >> the banks would say they're high enough already. >> right, i don't think that's i mean, you gentle men, ladies, leaders of nonfinancial companies, who in the world would lend you money? you would be junk. so granted, they're different. i get that.0yyáx so they need to be significantly higher. they need to be dramatically simplified, too.

they're saeasy to regain.m?x it encourages them to become more connected. the leverage ratio is too complex. >> so even afterk:x dodd-frank, we're still not in a good place? >> no, we're incrementally better. >> so dodd-frank has failed? failed -- >> okay. >> i've been very disappointed. i think one of your questions was do we have too much regulation. i would say#1%ñ judged by comply a%íw quantity, we have too much regulation.

>> i certainly agree with sheila. they haven't certained us well this the past. i'm also very concerned by having either one global or national stand aurd because it was proven wrong, again.mi3ç to have this one central view i wouldpca%[ prefer there be ba sheets. i don't want to pre-judge. but i will certainly concur, that the complexity serves us well.2ww3

larger, the small banks have become fewer. it's more difficult now for working families to purchase a home, even though a local community bank may actually want to lend them money. but as the consumer financial bureau, well-named, as it may be, has given us oney tc standard that federal reserve data itself is said that roughly[usz a third ol african americans or hispanics would no longer qualify simplyñ because of the national standard on debt to income.

>> all of the sudden, we're dread ag annual fees to come back. free checking is becoming a thing of the past. i live in dallas, an urban area. you will but i represent an -u)al area. my little 435th of america, the average working family is worse off with their household finances than they were four years ago. and i would just say at some point, i'll end on this.c .íqiz the sheer weight, volume, complexity, g"bzr7b÷ñuncertaint regulatory burden slows economic growth. i would hope that 2, 2 çfn

añ even if they get it totally right, for example, i'm thinking in terms of my fifth grade son andédli seventh grade daughtern ever teacher gives you homework on the same night, it doesn't all get done. when regulators are regulation on top of regulation on top of regulation, it doesn't all get (ñjd;lt it makes us a less dynamic d;lt economy and a less prosperous society. >> most of you here, i'm sure all of you herengydñ are customf xij if you can grab your laptops, htc4wr is a little

bit loaded.ézú >> now, is this wall street or thenqz wall street journal? >> wall street journal is actually the highest rated news brand in all of america. but when it comes to wall street itself, agreed or not agreed, one of two, do you trust it or do you not? i would be quite interested to see what the response is. so they b so they b ipñ so so have they been su efficiently ice lated where they can fail and take losses that imperil the banking system? >> i think investment banks have increased their capital. they're regulated, most of the big ones areri@jr regulated as

if i had one beef with investment banking, i think that would be it. i remember when i got a call early in -- was it 2008, when vera sterns was filing for bankruptcy.$p& i said so what, basically.'fnd investment banks fail. and that's what we still want to have. and should have. and a lot of the work that's going on now with resolution plans eings to make sure when you have these[9drñ conglomerat the banking component can be severed off. >> but when we have the derivatives, that comes inside your point. it doesn't feel like [z really been resoled. chairman, investment banks threat to american financial std:qq'qe or not?ajp

>> again, financial stability is a term used in dodd-frank. i think we're making some of the mistakes that were made today. stronger balance sheets than we ño cf1 o but i still do question at some i'm still wondering when it's good to decide financial and wh financial intermediation.

what is too risky? there was a time@ñ not too long ago that apple was floundering in one of our very large investment banks and took a risk on apple.p"$vñ would that happen today? i don't know. i suppose you might be able to make the case that north korea has a very stable economy. zero economic growth is very stable.vk[e÷ >> would you agree with the idea that we've turned the banking sector into a regular lated facility? and if you look at the returns on equity, for the financial sector, they are almost equivalent.-b they're about 9% return on equity over the last year or so. ñ7%x

marks, are they about the same? >> it doesn't take you two years to turn you into an editori editorialist. i will say this. it is clear to me that there are at least some, in the political left, whose ultimate goal is to treat our large financial utilities so that capital can be allocated on a political basis. to some extent, that's what we sawwlfñx the affordable housing xñwwlfñx the affordable housing so i do not think it a good utilities. we're probably on the way to  i wouldn't say we're there today. but since we're9a>p in the chris

season, as i look at the ghost of christmas yet to come, if these things are unchanged, we wake up 10,v]bç years from now and that's what we have.il $ >> we have to move quickly because we're out of time. there's still a lot of risk to be taken. i do think that the regulators are too much. that the supervisors with primtive rules run the banks for them.÷ we have the next time they do something stupid, because one of economicism. those are the two places i would focus. ju+h(rocess. >> so while we move to questions from the audience, you are going haf

the kingdom come part of next year. what's going to be the most important realisticáepñ legisla change that you think you can bring to the financial services sector? >> well, sector? >> regrettably, i don't know the answer to your question. e( a priority of mine to figure out is the white house going to be open for business. i don't know the answer to that. fearful. many in the room may know there was¥ a bipartisan, bicammeral agreement that the white house decided to blow  those of us would argue that thñ president actedoks÷ in an ñ dealing with our immigration laws. there was a timef&#q i thought,

paper which is regrettably sitting on shelves or deleted on people's hard drives, that maybe there could be an agreement there. there have been modest bills because they are bipartisan. aimed at creating regulatory relief for our community institutions, and our jobs start-up bills aimed at issues like crowd funding on ramp in order%jr to hold down capital cv forpl our entrepreneurialo6sñ ventures. i'm hopeful we can get those on the president's desk. i must admit i'm a little pessimistic given the two moves by the president. >> you don't see a lot of change? >> i don't know. i try to be an optimist. i have to be because otherwise as a member of congress you have lots of opportunities to crawl$ in a fetal position and weep.

i'm going to have the start off of going back and passing all these bills that we passed on a very strong bipartisan basis and putting them on the president's desk, working with senator shelby, my counterpart in the senate and see what he will sign. >> questions for our panel? they wanth÷n÷ to get some drink okay. >> since we're the last thing standing between them and cocktail hour. >> we are. we have to be more entertaining. >> i wonder if you feel the same way about lehman versus bear sterns. >> everybody knew lehman was in trouble. it went on for months. by the time it happened and hindsight is 20/20, it was a

very tough decision for them to make, but in retrospect, the system had become so unstable at that time it was a bad trigger and of course the reserve systep breaking a buck, on short term that either. we've got half of it fixed. i do think that by that time the system seized up that much -- i think also dick fold was banking on a bail-out. he thought how could they let me go down? .ut they vq everybody says it's good it happenedx because they needed congress to deal with this. i think there were measures that should have been taken earlier and i thinkci there were bidder

for that institution, if fold had been little more realistic, there could have been an acquisition which would havefh avoided the destabilizing bankruptcy. >> with all the caveats and the things that need to happen and the did i munction of small bigger, is the financial situation healthier now than it was in 2006 and 2007, by healthier, i mean, is it more stable and a greater contributor to growth in the united states? >> i think it's --ím1fe certain is better. it's mored$bz resilient in that sense. my personal view that the monetary policy played a role in the search for yield and why they are buying a lotucj

back securities. we've had the same dynamic now for five years now with near zero-interest policies and the hunt for yield is still very much alive. it's in very much live. >> is that a yes or no. i stable but the risks are i greater. >> greater? >> potentially i do because we don't know how this is going to turn out. >> go on about that. >> look, i think financial assets in my view are inflated. the good news and the bad[ is that the welfare people who tend to own financial assets[bz unlike working families, people who own them are in a better leverage lending, the government is leading thescúz way to loos mortgage lending standards. i think you are seeing a lot of over

trying to constrain it. >> why should a regulator be inside a bank and say well you can lend at 6 1/2 times leverage but you can't lend at 7 times? that sounds ridiculous. >> everybody would agree, it's fair standard that a mortgage borrower should have some kind of down payment. safer. the degreerjw# the leverage of the borrower is going to directly impact their ability to pay back the loan. >> with that andg and letçq chips fall where they may? >> i'm repeating myself for about the third time. i think the answer iszáthe propr application of capital and

leverage standards, not to embed investment banks, in our commercial banks, to substitute their decision making for those who are actually in the market place. but i would say this, again, we have now seen the single greatest fiscal stimulus and monetary stimulus in the history of america. we have seen the most profound ÷ our capital markets laws since the new deal and yet we continue to be mired eight years after the crisis in a very mediocre growth economy and i still -- and still 95%, 6t3bro, of our mortgages are either guaranteed orlgkeq provided by federal government. they still ultimately appearesp8 the federal taxpayer balance sheet. we still don't have a

sustainable housing finance system. i don't believe that we have solved the problem of to?çfúy bo fail and again i would argue that the larger banks are still enjoying a funding advantage and, if anything, i think we have doubled down on a lot of u herefáqp in the first place. fb investment professional but i fear there are a number of asset bubbles within our economy that have been brought about by extraordinary measures of 2008 the ordinary measures as we're listen i wasn't there where fm- i absolute her for the work that she did. she had a()ñx very tough job at time. i was the minority,d7 member oe which is like the maytag repair man, the phone doesn't ring and you really don't have a lot to

do. ib&p applaud her for making tou decisions. the question is at some point does the cure prove worse than the illness. againg>qñ and get your view. maybe it's a rhetorical system at this point. is the financial system now compared to 2006-2007, headlightier, if you define healthier as being more stable and greater contributor to growth? >> i think you can make the case on perhaps more criteria more stable, but i think again the cost is, you know, at what price stability? i believe i have the stat right, that we have start-ups at almost a 25 or 30-year low, a generational low. we have a higher percentage of the workforce working for larger companies, so at what price do how much economic growth are you willing to pay for thistu ññ

so-called stabl and i'm not convinceêh that we're not agai seeing the calm before the storm. i can't give you a simple yes or no answer to thes:+ question, i do believe that frankly we are having the wrong policy description. there's obviously some good. i7÷ that doddn[ bad. to quote me, it's only 95% bad. by and large, the increased standards is a good thing. some good can come from a living co. there are aspects that have been consider dodd frank to be a failure and i'm fearful that we're replanting the same s