to our program. as the nation and those places that were attacked mourn the losses and the recovery, we talk

to the mayor of new york, michael bloomberg. >> i think the stewardship back then was exactly right and the stewardship going forward, i think, is going to continue to keep new york growing. remember conventional wisdom, charlie, after the terrible tragedy was that everybody was going to move out of new york, everybody company is going to move at least half of their business out. nobody was going to ever live downtown. no tourists would ever come to new york. new york would go back to the bad old days of high crime. and every single one of those things was just not wrong it was... they were dead wrong. it's 180 degrees opposite. today there are double the number of people livinging down town than lived downtown on 9/11 '01. there are more people living downtown today than lived downtown in any year since 1920. tourism, there were seven hotels downtown before 9/11, everybody

said they'd go out of business. today there are 26 hotels and they're all virtually full. >> rose: michael bloomberg for the hour, next.

captioning sponsored by rose communications from our studios in new york city, this is charlirose. >> rose: t tour i.r.s. attacks of september 11 took place ten years ago sunday. many say new york, our country, and the world will never be the same. the events on9/11, 2001, took the lives of nearly 3,000 people. one decade later on a warm fall sunday in new york, the 10th anniversary of the attack on america was commemorated at the newly completed national september 11 memorial at the world trade center site. more than 10,000 members of the victim's members families were. there also present, president ama and first lady michelle obama, former president and

first lady george w. bush and laura bush, governors, senators, the former and the present mayor of new york city. it was a day to reflect and remember. there were six moments of silence-- twice to mark the precise times each plane crashed into the towers, twice to mark whenhe towers fell, and twice marking when the planes crashed in virginia at the pentagon and in shanksville, pennsylvania. poignant songs and music were performed by paul simon, yo-yo and james taylor. the centerpiece of the ceremony was the reading of the names of those who died. as we continue our coverage of september 11 ten years later, here, first, is a look at yesterday's events. ♪ oh, say can you see... >> marie rose abaz.

>> paul abachez. ♪ whose broad stripes and bright stars through the perilous fight ♪ o 'er the ramparts we watched were so gallantly streaming ♪ and the rockets' red glare, the bombs bursting in air ♪ gave proof through the night that our flag was still there ♪ oh, say does that star...

>> since then, i stopped crying but i haven't stopped missing my dad. he was awesome. i'll try to teach my brother all the things my father taught me. ♪ and the home of the brave >> god bless every soul that we lost, god bless the family members who have to endure that loss, and god guide us to our reunion in heaven and god bless the united states of america. ♪ o ear the land of the free and the home of the brave ♪ >> and in remembrance of all those who died in new york in

1993 and 21 at the pentagon and in the fields near shanksville, pennsylvania please join in observing our first moment of silence. (playing "sound of silence") >> i've been asked to read a

response or y'all. i'm going attempt to read my part and then i would ask when i pause that you recite together "we remember them." ♪ hello, darkness, my old friend i've come to talk with you again ♪ religion softly creeping left seas while i was sleeping ♪ and the vision that was planted in my brain still remain withinhe sounds silence ♪ ♪ in restless dreams i walked alone, narrow streets of

cobblestone... ♪ >> i feel how weak and fruitless must be any words of mine that should attempt to beguile you from the grief of a loss so overwhelm overwhelming. ♪ when my eyes stand... >> god is our refuge and strength, therefore we will not fear even though the earth be removed, though the mountains be carried into the midst of the sea. though its waters roar and be troubled, the mountains shake with its swelling. there's a river whose streams shall make glad the city of god, the holy place of the tacker knack of the most high. god is in the midst of her.

she shall not be moved. god shall help her just at the break of daw. the nation's raged, the kingdoms were moved, he uttered his voice the earth melted, the lord of hosts is with us. god of jacob is our refuge. come behold the works of the lord who has made december nations in the earth. he makes wars cease to the end of thearth he breaks the vow and cuts the spear in two, he burn it is chariot in fire. be still and know that i am god. i will be exalted among the nation, i will be exalted in the earths. the lord of hosts is with us, the god of jacob is our refuge. >> rose: new york city mayor

michael bloomberg took office just four months after the city suffered the most devastating attack on american soil in modern history. it was a time, he recalls, when we didn't know when or how our city would recover. but recover it has. during his decade-long tenure as mayor a massive rebuilding efrt has begun t transrm and revitalize lower manhattan and as chair of the memorial foundation, the mayor helped lead t effort for the completion of the september 11 memorial. today, despite the inevitable peril of new threats, mike bloomberg is confident that this new york moment ll be remembered as one of the greatest comeback stories in american history. on the eve of 9/11's tenth niversary, i spoke with mayor bloomberg. in the interest of full disclosure, the mayor is a very good friend, our program originates from the bloomberg studios in new york city and we have had for 16 years a professional, person, and business relationship. here is the conversation with the mayor. tell me what this means, this

ceremony tomrow in which you preside, the president wilbe there, the former president will be there, the governor will be ther the governor of new jersey will ...he governor of new jersey will be the. people who who care about what this means will be there to... >> i think speakers that we have say it all. we have those that were in office back on 9/11 and those that are in office today. 9/11/01 george w. bush was the president, defrancisco was the governor of new jersey, the pataki was the governor of new york and giuliani was the mayor of new york. today we have obama, christie cuomo and bloomberg. and you look at these eight people and you can see why this worked. i think the stewardship back then was exactly right and the stewardship going forward, i think, is going to continue to keep new york growing. remember conventional wisdom, charlie, back after the terrible

tragedy of '01 was at everybody was going to move out of new york, every company was going to move at least half of their business out. nobody was ever gog to live downtown. no tourists would ever come to new york. new york would go back to the bad old days of high crime. and every single one of those things was just not wrong it was... they were dead wrong. it's 180 degrees opposite today. there are double the number of people living downtown than live downtown on 9/11 01. there are more people living downtown today than live downtown in any year since 1920. tourism, there were seven hotels that were downtown before 9/11 '01, everybody said they'd go out of business. today they're 26 hotels and they're all virtually full. >> rose: so it is now a 24/7 neighborhood. >> it is... it used to be when i went to work on wall street back in the '60st 6:00 at night everything closed down. you couldn't get a meal, you

couldn't get a drink, there was nobody on the streets. today it's a 24/7 community, there are lots of families livingowntown, you say baby strollers, there's a bed bad and beyond and a whole foods and all sorts of different stos and people want to make this their home sfwhichlt there's great transportation, there's great views, there's great old buildings that convert very nicely into apartments and it's where new york started. it has a... when you walk the stet there is's a history. and people said, you know, no way, everybody would be afraid. but the rld has bome more sophisticated than in theold days. today we live with terrorism around the wor. thank god we have not had another terrorist event in new york since 9/11 '01. we think we've stopped at least 13 we know of and probably a lot more where the terrorists said, oy, it's just tooomplex, they've got o much security, we're not going to go and tryo attack them. but the bottom line is there is terrorism still around the world

and after we've gotten osama bin laden, there's still terrorism and you're always going to have terrorism. there are always people who hate what others do, don't like the rights that others have, and they want... they're fanatics and they want to take away those rights even if it's at the expense of their own lives, even if it may be inconsistent with the things that they value. they don't put in the that context. and so we read the papers everyday of x number of people being killed with a car bomb or suicide bomber, the subways in moscow. there's no place where security people don't worrybout terrorism and the public understands that and they get on with theirives and i'm not suggesting that we shouldn't worry. i'm not suggesting that we should cut back our security but i don't think we should let the terrorists win by us hunkering down, locking ourselves in our apartments and not going out. by not going to the religious institution we want to patronize

not going to the cultural institution, not walking on the streets. we are safe in the context of a complex, dangerous world and in new york city i can just tell you we spend $8.5 billion on ou.. annually on our local police department to keep this city safe. $8.5 billion is bigger than the g.n.p. of a lot of countries, much less than budget, and we fight street crime. new york city at the moment has very low crime, lowest rates of murder and shootings that we've virtually ever had. it's down to the level where it's very hard to get bew. this and also we have a thousand police officers dedicated to intelligence in counterterrorism. we have 100 police officers assigned to the joint terrific task force with the f.b. we have oown new york city police officers in a dozen cities around the world so that we can interface with other

security agencies, intelligence agencies, find out what kind of terrorism they're experiencing an whether their response was in retrospect the right one and sending that information back so that we can prepare. because what happens elsewhere is likely to happen here as well. >> rose: let me speak to the specific fact. there is what has been characterized in your own words as a credible threat. what more can you tell us about how you view it. >> credibility means that the source is somewhat reliable. although, you know, sources around the world for this kind of stuff aren't... don't have pedigreeand college records and a history where you can check. it is a dark side of the world, if you will. but there is a source that says may, could, planning somebody to do something and the something when it's a credible is possible. for example, a small bomb.

a big event is much less likely because it requires so many people and so many people talking. you can go back a separate issue and question why we did not get those signals and the people have written a number of stories... >> rose: before 9/11 because there was so much message and traffic. >> and we didn't pay attention and whether we learn to do that better i don't know. that's something to worry about. but making it credible if the source is what reliable or has been in the past-- doesn't mean today, everybody's got their own agenda-- and what they're talking about doing could be done without bringing a nuclear bomb in. it's hd to see how anybody could get a bomb. maybe someday they will but that's... stretches credibility. no corroboration means you only have one source. and if you go on the internet there's what they call "chatter" everyday. there are people that say "charlie rose, get out of town tonight, we're going to attack." and that's everyday in every city for everybody. and if you read everything...

every one of those and you said "oh, my god, i've got to do it." you might as well... you can't have a life and 99.999% of those things never occur. >> rose: my impression is also that in the treasure trove of intelligence they took from osama bin laden's house in pakistan there were some intent or desires to strike on 9/11. >> well, surprise, surprise. it would be the logical day for terrorists to strike again and the logical place would be america and the logical place is in america, new york and washington because-- with no offense to the other great cities in this country-- new york and washington' skylines are the skylines that overseas they know. and, you know, we always say when you catch a terrorist they don't have a map of a corn field in their pocket, they have a map of new york city or maybe washington or chicago. there are some other bigities as well. an so nobody should be the least bit surprised that threats would beade right w and

against these two cities. in fact, for no other reason than to disrupt our enomy and our psyche you would think that a lot of these terrorists would just put out stories. >> rose: you say to citizens we are on guard, we know, we are making our presence felt and we're doubling down on ter of wh we do in terms of security? >> yes and one other thing i have that to convince them that i really believe it, which i do. i've always joked that... and it's not a joke because i've done this. i've said to our police commissioneray kelly, if you will let your sons work in that building, i will let my daughters new york that building. and i think given the amount of money we've spent in protecting downtown... we have 3,000 cameras, we have radiation detectors, we have all sorts of computers that read license plates and that sort of thing. a lot of the security that we have you don't see. that strange-looking person next to you sitting next to you on the subway for all you know that

person is an undercover cop but then there's this undercover person, this short, very petite blond very quiet woman and, you know, she's probably an undercover cop as well with her hand on a gun. >> rose:laughs) >> but that's exactly what you want to do. >> rose: and in the baby stroller she has a machine gun. >> absolutely. and you want to have a lot of security that's visible, but you also want to have a lot of security tt's invisible. the trick is to have the visible security not be so oppressive that it scares people off. somebody the other day said oh, we have too much security and i said "would you get on an airplane where we didn't screen people?" "oh, of course not so we have to balance our civil rights with the real world that exists. you and i both... i used to and you still do travel all around the world and up until a couple years ago, you never saw somebody with a machine gun in

an airport. but overseas you did in every airport. dogs and machine guns and that sort of thing. and it was always a little bit jarring except you get used to it. that's what's happened re. >> rose: the other thing to say, i think, is to say to people if you see anything unual as they did on the airplane with the shoe bomber, take notice. report it to somebody. >> rose: call 911, 311, the services we have here in new york city and by expanding the number of people that do that, the eyes and ears of law enforcement gets a multiplier effect and that's an awful lot of things. peop saw something and we have to track it down. turns out it was some kid reading a book. or playing a video game or something that was totally innocuous but better to err in that direction than to err in the other. the difference is you want to leave it to the professionals. that's what they're paid for. that's what they train for. that whathey know how to do. so report it and get on with your life. because what ocean's wanted and the current terrorists want is

they want you to give up all of your freedoms. and i'velready said terrorism gets fought by young men and women overseas who give their lives in the military. terrorism gets fought by you and i seeing something and saying something. trichlg also gets fought by you and i living and exercising the freedoms that they find so threatening. >> rose: so you say on this tenth anniversary; terrorism lost and new york city came back? >> those are exactly two messages. new york came back. why? because we've shown if you get rid of partisanship you can do a lot of great things and we've done that here. and the terrosts didn't win. and we have created a memorial that is hopefully going to educate our kids. it's a place to grieve for the families. but to me long-term the importance is to remind people if you let your guard down, it cahappen again. >> rose: what does the memorial say to the families? >> somebody asked me about the design. a young guy, michael arad, who

worked for the city, submitted a proposal, a design, along with 5 other people. he somehow or oer got through this entire process. it g down to the final three, is i was supposed to have a say in picking the final three with governor pataki, we walked in and george said "that's the one." >> rose: (laughs) >> okay, governor. but it happened to be the right one. and i liken the design to mia lin's vietnam memorial in washingt. when she designed that and it was built people said "it's too minimalist, we havto have more grapc stuff, we have to have more individuals." mia's design is that you think about what happened and reflect on what happen and what the lesson is. and her design was so controversial i think they had to put a statue of a soldier there. but her design won over the world when the first soldier or family member walked up and touched the name of somebody who didn't come back. and everybody said "oh, my god."

and that's the power of just the names. >> rose: it's a moment of communiowith the past. >> absolutely. >> rose: and this when you see the first family member touch their family members' nam it's all over. it this will go down with a design just like mia's that really makes a difference, gives a message, gets us to think. >> rose: it's also for the spirit of the people who died there. their spirit to make new york alive and to say that we look forward and we go forward. >> well, people say how canou consider economics along with a memorial? there was a proposal to take the 16-acre site and make it a memorial. in the end we decided llectively to build office buildings and memorial. and the reason for that is the deceased... what were they doing when they died? almost all of them were working for a living to takeare o

their families. i don't know why ithappened but did. they're no longer here. they can no longer take care of their families. isn't it up to us to pick up the slack and take over their responsibilities? and you only do that if you build great schools for their kids, offices and commercial establishments so they he jobs. tax-based so that we can help those less fortunate. to say that the economics don't matter is to walk away from the one thing, i assume, they all thought about just as they died: god, take care of my family. >> rose: it's always the last moment. people always say somebody take care, remember i want you to go forward is the message always from those that we have, some recorded message. you insisted after you took over in 2006 of the foundation as chairman this memorial has to be completed by the 10th anniversary. >> i thought that it... i don't know why we do it, b, you know

someday when youet to be 50 you'll think your 50th birthday is very important. i don't know why it's better than your 49th or 51st or today. you wake up and say "i'm alive, my family's okay." why is that day any less important but it is. and the tenth anniversary has that milestone in quality. it's also true that this is the most complex construction project ever done in the world. every building is interrelated, the trucks come underground through a screening center to service all of them, all the air conditioning comes from the basement of one building, the electricity the basement of another, that sort of thing. and there's two railroads running through the site which we couldn't shut down. there are... it was... it involved the state government, the federal government, the city government. it involved the port authority of new york and new jersey which is this joint organization.

it involved larry silverstein and his group private investors. it involved the insurance companies. like everything else in our society there are all sorts of lawsuits. there's environmental issues. there's consulting with the communities. robert moses went out and bulldozed and built stuff. whether you like it or not, he lived in a different world. and people say oh, you know, this has taken forever. what they don't see is that settling all of the agreements on design which are more important than anything else because you want this... nobody remembers whether central park was built on time or on budget, but thank god they built central park. and nobody remembers who the mayor was, incidentally. i've asked people and i should go look it up. i have no idea. but it is true that you've got to do the right design, you've got to do it safely. we had two firefighters who died tragedy during the demolition of one of the buildings. with the exception of that and this enormous construction project, we've had not one fatal

accident, which is really amazing. we've had enough death and destruction on this site. we don't want anymore. and you have to have something that stands the test of time economically. but it's so far down the list is getting it done on time. i mean, i would give up any time frame to not have any deaths. i would give up any time frame to not have something that 50 years from now where they say it's a phenomenal design. that the economics didn't integrate with this city. daniel inouye, the senator from hawaii... it's a great story. i was giving him a tour, he's a world war ii medal of honor winner, heost anrm in the war and we're going around and i'm showing him this and he says "you mean to say this is going to be ready ten yrs to the day from the event?" and i id yes, thinking "he's going to criticize me. he says "i don't t it. it took us 40 years to do the pearl harbor memorial and 50 years for the world war ii memorial.

all of the work that goes on before you ever get to ground level, the digging and basement, that's all... people can criticize and say, oh, no, nothing's happening. all of that was getting done. once you get to ground level, steel goes up very fast. the onworld trade center which is this 1,776 foot tall building... >> rose: it's called one world trade center. >> it goes up a floor a week. then the criticism is once the steel's up and outside's done, nothing is happening. it takes years to fit it out. so i think we have to have more perspective and time but the message of sending to theity and to the country and the world that traces didn't win, here is the symbol that new york is back. that was the plaza of the memorial and underground there's a museum that's not going to be ready for another year.

all the buildings around there will take years before there built out. it's an enormous construction. >> rose: is that because of economic circumstances? >> sure we had a recession in the middle of ten years. in fact, the plaza, there still one corner that's not done becaus we're buildg this design to... a transit center. it's quite amazing. the bottom line is the names, the voice, and if you look at the design what michael arad did, he combinedhe two things we've been talki about here. he what was lost, water comes down, disappears in a square in the middlend you can from any place see down to see how far that goes. you know there was something there,ing exactly location and size of the two towers and 3,000 people are no longer here. that's the symbolism there.

what is it coming down? water. water is fundmentedly building block of life. that's the future. it's a place to remember, a place to memorialize but also a message that we weren't beaten and that we have a future but don't forget what ppened here because if you forget you're doomed to repeat this. >> rose: you have said in one recent speech thatverybody knows where they were, who they were with, what they were doing and many people can have somebody that they knew who suffered a loss or they suffered a loss. where were you? >> it was election day, i voted and i walked with a columnist in down to my campaign headquarters maybe 20 blocks and i remember one of the things we talked about what was a beautiful day it was and i went to m desk, there was nothing to do on election day. you've done the campaigning and so i had a newspaper an a cup of coffee and somebody said "oh, small ple just hit the world trade center. it's on television." and i looked up and the gash was right across the building and i said "that's not a small plane, that has to be an enormous

plane." i don't think that anybody at that point after the first plane how could a pilot... they had heart attacks, how could it happen? nobody thought about terrorism except 20 minutes later when the second plane obviously everybody thought about it. and then, you know, my thought was you don't want to get in the way, giuliani the mayor did a great job during that period. that was the thing that people remember rudy for. and none of my business to get in his way so i went down to my company's computer room, which is maybe 20 blocks north of the world trade center site over on the hudson river and we decided okay, we're going to feed the... what we thought were rescue workers but after a very short period of time were recovery workers, unfortunately. and if you go... people rushed to the hospitals to triage and

all the victims came in. and body showed up. that was totally devastating. i have at home an american flag pin like this one which was given to me by the lieutenant in charge of the first national guard unit that arrived there and they bivouaced in our computer facility and then i went down everyday and we said construction workers and first respders and everybody that was there did that for a month or so a campaigning started again, that was election had been postponed. >> rose: there are those who would suggest that bauds of 9/11 because of 9/11-- that new yorkers were looking for a different kind of person to take over and they may have had some impact on the election that took place. >> well, i don't know. my opponent was five points ahead of me three days before the election and then lost and 9/11 was... september 11 the

general election was early in november so i'm not sure there's any connection. but you never know why people change their viewsnd what they're looking for and elections are always between two people, they're never between one pers and the ultimate candidate that doesn't exist. and i can't worry about that. always believe that the public wants somebody who has values d beliefs and iswilling to make a decision and then stand by it. leadership about picking a course, there's never any right or wrong course, but picking a course and then sticking to it. and if you get rolled-- and i'm not suggesting there aren't times when different facts and you have to chge your mind-- but basically if the leader doesn't make decision and stick to it, everybody's got to prepare for more than one eventuality, which means they can't focus on going forward and

you see leaders all the time that vacillate they campaign on one thing and do another after they get elected. they say something where both sides can hear exactly what they want to say. they find some ways to go halfway. i think incidentally george w. bush was elected and reelected. people looked at george bush and somef them didn't agree with him but he's det decider. people joked about the decider thing, but that is, in fact, what what people liked about george w. bush and i think you can stay same thing for his father and his brother who's on the board of my foundation, used to be the governor of florida, did a great job education. b has some views, he knows what he stands for and he's not ashamed of it. he's out there and you look him; you like him. you don't; you don't. i hope what people saw is somebody who is honest, hardworking, has made some gd

decisions in the past but doesn't that doesn't mean every decision in the future is going to be good but has the courage of his convictions and will take us forward in a direction that is at least specified and i think the economy today charlie, the reason we're having all these problems is ere is no clarity in terms of what have our goals are. there's no clarity, there's no consistency, n tax regulation or in tacks, tax policy or regulations of industries people don't know that tomorrow the objective is going to be the same as today and people say one thing and then don't do it. that lack of specificity and confidence exists around the world. if you look in europe, everyday there's a different plan to bail out greece. you've got to do one thing and then go and do it. business can't adjust, you can't adjust your family life. you don't know whether to buy the house and take the mortgage or not. you don't know whether the take

the vacation or not. people live in a world... to function somebody's got to make some big decisions. >> rose: do you think the president harkened at that challenge with his speech before the congress? >> i think what the president did is he certainly pointed out that we don't have the luxury of diydallying anymore. >> rose: and we can't wait for an election to do it now. >> and i've said this again and again r the last four years. whether you like president obama or not he is our president, he was elected by the public and if we are going to have a better life for ourhildren and grandchildren, we have to make sure that he is successful. nothing wrong with you having a different view as to who the president should have been or will be the next time, you can have a campaign that runs parallel to this. but ile you campaign, you also have to support the president not because he's barack obama but because he is our president and our future is inextricably tied to his success. one columnist in said "i hope he

fails" and i'm thinking to myself "he's talking about my kids.". >> rose: one senator said the same thing. >> yes. you've got to... he said it's important to do it now. he said, you know, you guys and congress... remember, it's not him against the republicans. it's him against both the republicans and the democrats. >> rose: and against economic circumstances. >> absolutely. but he said, okay, this is what we should do and here are some things that you democrats liked, here are some things republicans liked. i don't have as the president the ability to enforce one policy. i've got to get it through congress and i've got to make sure the publ is behind it to implement it. but let's go it and i've given enough propols, let's sit down. i always joke the more people you get together, you put them a room with a big pot of coffee, make sure there is no bathroom there, lock the door. it's amazing how biology will get them to come to agreement. >> rose: so on the question of the economy, which is important

to new york city and the country you are saying that what is required of leadership at the presidential level, the government l government level, is to be specific and tell people what you think is... you want to do, be clear and precise about the goals and go about with a sense of urgency to do it and to the governor and to you. >> and... yes. and people always say... the deficit is going to bankrupt us, yes, and we've got to do something about it. at the same time, people say it's intolerable to have this number of people out of work, it's very dangerous for society, it's inhumane but no society can exist with enormous unemployment and you sina in cairo, you saw it in spain. and the rebellion in egypt and in spain and places like this those are college educated kids who d what we said and can't get a job. so you have to do something. >> rose: and kids who were looking at america and other places saying "why can't we have

all that they have?" >> then you look here and we don't have it. so you have these arguably confliing objectives. what is the nexus between them it is confidence. in the end, confidence is barack obama's job. that's what the executive does. they have give a vision, a rationale, they have to stand up to the criticism, they have to be a sis bomb. you know, i'm going to the dentist. i'm taking the subway. why? little things at the mind level, you have to live the life you're asking other people to live. not suggesting that barack obama should spend all his time there one place, he can have a life. >> rose: he can have a vacation. >> yes. i've always believed your private life should be your private life, much to the consternation of the new york press. >> rose: (laughs) >> but nevertheless, the nexus between these two conflicting things is confidence.

>> rose: two conflictinghings being both... >> deficit and jobs. and people say well why aren't things working now? go back to '07, '08. what happened there? we took too much risk. we blamed the bankers. >> rose: toouch risk, too much leverage. >> we blamed the banks and we want to put the bankers in jail. keep in mind, it was freddie and fannie that created this at the instigation of congress. they passed regulation it is banks had to make risky loans. freddie and fannie had no standards whatsoever. and you and i and everybody else loved it because the stock market was going up so our pensions and i.r.a.s, you and i loved it because... >> rose: and in america the dream was having a home. >> and in fact you could make the case that if 100 people got loans that were risky today 90 of them still have the jobs and houses. so if you hadn't pressed those 90 would be there. it's tragic for the ten but maybe you have no choice if you want to get everybody going you have to... we had this expansion

it collapsed-- as all expansions do, eventual this cycles. things get so frothy suddenly it's nothing and it falls down. then we have to have a guilty party. there's so many guilty in this country for everything and it's not me and you so it has to be the other guy. then things slowly start to come back and that's the period we're in but it's very slow. well, why doesn't it come back faster? today our problem isnot too much risk it's people unwilling to take risks. why would a banker go and take a risk if people are going to criticize the banker if the loan doesn't get paid off. they were thinking i wonder if they're going to put me in jail. why should a company go and expand if they don't know what the tax policy is going to be. i think people saw stimulus, health care, d financial regulation done in congress for the first time maybe in the

total blare of the public eye. before then the president would send a bill and thenthey'd argue about it at the margins and get it passed or not passed. this time the president really let congress write these three piec of legislation. and there's the old joke you never want to see how sausage or the law is made. they just saw how the law was made and they said "you're doing what? you're not listening to experts, everything is based on who's supporting your campaign." that's overstating it but not by much. at least that was the perception of people when they saw it. that left people really nervous. and today... you know, things are going on overseas, going on here, we don't a coordinated policy. we can't have a fiscal policy without including europe and asia. we just live a global world. so i think it's this confidence problem, that's why the economy is not going back up quickly, we can have some short-term things. most of the stuff in the president's bill i thought was

apprriate and they should try . also government can't sit aside and let things go. >> rose: there's a role for government? >> yes. and i've always joked that if you're married to a plumer there will b somebody with wrenches on your plumbing, i don't care if there's problems or not, umbers plum, that's what they do. >> rose: (laughs) >> but we've got to do something about that. we've got to understand we're in a global world. and one other thing and you see hit in the tea party, you saw hit in the first mkd boomlet, you saw hit in the perot boomlet. the tea party is not so eological, it ain't going well so let's cut back the size of government. i don't happen to agree with that but it does say you're not doing the right thing in government. and the fundamental problem with this country and the world has got to faces in a world of globalization and technology, are there jobs or how do we create jobs for those people who

would normally get jobs in industries where automation can replace them and where global competition forces down labor costs... or compensation. if somebody has a $40 an hour job, they can't take a $10 an hour job. they sayh, we'll create infrastructure. the average unemployed isn't a big burly guy who's worked outdoors all their life and a lot of training and that sort of thing. the average person can't become a construction worker overnight. there's construction workers you can put back to work but we have a problem of people who have education but not good enough education and the ability to do things but maybe not the kind of analytical abilities that you need a technological world. growing the agricultural revolution... agriculture to the industrial revolution you still did things with your hands. technological revolution you do things... you have to have much more anatical skills and i

don't think we teach tse. rose: anduch more educational skills, too. a couple things about the history. clearly one of the great recoveries has to do with germany and japan after world war ii. >> yes. >> rose: where do you put the recovery of new york city from what it experienced in the long span of history? >>ell, keep in mind, new york city is part of... sometimes we forget this, it's going to be a surprise to you, but we're part of new york state and the country. >> rose: (laughs) >> so we don't survive without our country doing better. >> rose: you mean there's things beyond the hudson? >> well, remember the old "new yorker" cover of california being just the other side of the country. new york city is going to have 50 million tourist this is year. new york city has record population. new york city's business... or value proposition is built around intellectual capital. so if you want to make movies, this is the place to do it and we've taken a lot of business. >> you want to finance movies this is the ace to do it. >> so the media catal the world, the artistic capital of the world. >> rose: fashion.

>> we have double the number of fashion houses that paris does and that sort of thing. we focus on tourism whi creates jobs at the entry level position. so what we have going for us is great for the moment because it's what the world's economy needs. that doesn't mean there aren't plenty of other places that have enormous attributes and new york is not the place for everybody. and nor should we think it is. i could be very happy living in-- i don plan to-- in lots of cities across this country. but if you are a city where it's old-line manufacturing industries that were the economic base and they've disappeared you've got a big problem. you don't have the school systems and the educated work force, they have skilled work force bus they don't have the kind of work force for the new companies. and my solution to that problem, i was asked one time what do you do far big city? for a big city that now has all

these empty houses, no traffic on the streets, empty seats in the classroom and that sort of thing and they're not growing. and what i would do i don't know if the president wouldo it or if he could get it through congress-- but you have to in this day and age come up with something that doesn't cost anything and doesn't get tied up inll the other debates. so i would focus on immigration, i would say we should give visas to people who would pick a city and the deal would be you have to go there, live there for seven years and you leave that city we're going to hunt you down and deport you. but if youtay for seven years we'll give you and your family citizenship. you have to agree not to take federal, state,or city money because those are the two big things that they're here just to take welfare, which is not true but regardless. the immigrants would start businesses, they would fix up e houses, they would certainly go to the schools they would create the economy. one mayor sa to me when i used his city, he said "there's not

enough jobs in the city, you don't understand." there's going to be fewer jobs unless you find that next wave of entrepreneurship and excitement and belief in this country as the place where you're from every place in the world you want to go. we're unfortunately losing it a bit, but we still are the place that represents freedom and expression and opportunity. and i think you would populate every one of these cities overnight and they would create an economy for those that are already there. >> rose: ten years between 9/11 and 9/11/11 and you'll leave office in january of 2013. >> the end of 2013. >> rose: 840 odd days but who's counting. >> rose:laughs) in a sense your mayor alty has been bookends for 9/11 and, you know, this. how much of what's hand here do

you believe to be part of your legacy? their recovery not onlyf the city but also here. because it is set that early on... okay, pataki and port authority. it's yours. >> well, we don't a seat on the port authority board. >> rose: but then you had to get involved. my sense is that as you watch this, you began to be pulled into it. >> you get experience, you know what you can do. i don't daisuke... i suppose everybody has an ego. but what i've done is i've attracted very great people to government, people who could do... make a lot more money in the private sector but have chosen government, sometimes i was the first one to suggest to that would be a great place because they can change the world. and they have changed the world. and i think it goes to show... what's the difference between

business and government? one's a dog eat dog world and the other is a reverse. but people want recognition, respect, and compensation. but compensation doesn't have to be dollars. i think we focus too much on who's successful, the guy with the biggest bank account. you know, there are professors that are-- doctors who are curing cancer, they're... there are mothers a fathers there are lots of ways to meure success. we look for numbers. i'm a big numbers guy b there are other ways. you don't have to pay everybody you you just have to find ways they get recognition and respect and something they value more than money. if you're struggling up the ladder, there's nothing more importanthan money. after a while if you get up there a little way it is chance to look and see yourself in the mirror and say i'm making a difference, that's the most wonderful thing.

one of the reasons i left this company after 20 years was, number one, i don't think anything should go on more than 20 years or even that length of time. it's good for the stockholders and employees and customers to have new blood. but i had friends who really did get enormous satisfaction about what they were doing to make a difference and people kept saying "government doesn't work" and i kept saying there's no reason why you can't make it wo. nothing's perfect but my main job-- you'll love this-- after my first hundred days in office, everybody had to write the hundred-day story. what did you in a hundred days? and i said "i've battalion team it's the tm that goes on and a lot of these people are still with us ten years later. you have to sit back, you have to wait until opportunities come. or necessity arises.

and i think that there have been governors and new jersey. they were going doing things to the port authority, world trade center site but they couldn't raise money and there were all sorts of dissension and fights back and forth and my experience is i'm not the only one, plenty of other people can do it but getting in a room and saying let's stop this, we'll come to a consensus and keep going and find a way for people to come together. and if i look back and say what did you dough, it's at that level. we have a transportation commissioner who is revising the city, some peoeon't like it but there's a reason why we get 50 million tourists, everything she does is written about around the world. >> rose: bike lanes. >> and closing park avenue and putting dumpsters in so kids can swim. we have a deputy mayor for economic development. his latest idea-- and this, i think, is going to work-- we've invited universities around the world to come and build applied sciences and engineering campusesn new york. why? because if you look the new business of being created right

where the kids that create them go to school so you want more engineering. we have a couple great engineering schools here, columbia, n.y.u. polly, but we need more of that. and you go right down the list, a lot of our social welfare programs we' trying to nd out what works and doesn't and take the political hit of cutting those that don't work and moving the monies over to trnew things. i'm part of those, i throw some ideas in. maybe nobody has the right story but wh i look back i say you put together a team. >> rose: and you got that planning commission to change the face of new york. >> only rezoned a sixth of the city. a friend of charlie's a mine, for you and the audience. >> rose: thank you very much. tomorrow... as we tape this on saturday morning, it's a very important day in the history of new york and we will all take look and imagine what it means to all of us and what it means to the families who lost someone

because it will be... sunday will be their d or was their day. >> christiane amanpour said the other day "it's not a day for closure, it's a day for saying okay, now let's get on with it." >> rose: thank you.