zandi is talking about. the thing he hasn't mentioned yet which is the last caller sort of alluded to is that we used our tax money to bail out the banks which were criminally fraudulent against people and have damaged our society, but now when it's time to bail out state governments which haven't been particularly fraudulent, oh, we have no money to do that. but the banks should be require to bail out our state governments at zero interest, and i also think we need a jailout along with that bailout. >> host: mark zandi, let's take his point about whether or not to bail out states or let them file bankruptcy.no what's the economic impact? if. >> guest: well, first, let me say that state governments have received a significant amount oa help from the federal government throughout this recession. i think if you add it all up if you look at the recovery actth money which was the big stimulus package and some of the t other benefits provided, that it comes close to $175 billion. that's $175 billion has gone thro

host: mark zandi? . whether they are funded or not, the pension obligations will be on the books when you look at state debt. guest: i think that is appropriate. the state governments have provided to give pension benefits to employees and have not really paid for them. when you are trying to assess the credit worthiness of a state government, i think you need to consider those liabilities, the unfunded pension liabilities. i think the rating agencies, including duties, are recognizing that more implausibly in the ratings they do. it affects their ability to make future payments and should be considered. host: florida on the republican line. caller: i have a quick question and then a follow-up. do you know of any business that is in existence that pays taxes, or do they passed along to their customer? >guest: they do pay taxes. the income tax rate is about 35%. the effective rate after they take advantage of loopholes is more like 25%. that includes federal and state and local income tax. many businesses

its chief economist, mark zandi, predicts "the housing crash will end this year." zandi points to an improving job market, the affordability of housing and low mortgage rates. that optimism is growing in one of the epicenters of the housing boom and bust. >> reporter: florida. the sunshine state. the foreclosure state. florida has been among the top three states for home foreclosures four years running. almost a half million properties received a foreclosure notice last year, according to real estate data firm realtytrac. in south florida, from palm beach south to miami, there have been more than a quarter of a million foreclosures since 2007. but the sun may be slowly rising again on the sunshine state's housing market. >> a day like today, where it's going to be in the high 70 degrees and it's snowing everywhere else in the country... as trite as it sounds, our weather is still one of our number one assets. >> reporter: ron shuffield has been selling florida real estate for more than 30 years. he's president of e.w.m. realtors in miami, and he's seeing condo sale

zandi has been talking about. the thing he has not mention yet is we the tax money to bail out the banks, which were criminally fraudulent against people and damaged our society, but now when it time to bail out state governments, we have no money to do that. the bank should be required to bail out our state governments of zero interest. i also think we need a -- host: let's take the point on whether or not to bail out states or let them filed for bankruptcy. what is the economic impact? guest: first let me stay the state governments have received a significant amount of help throughout the recession. i think if you d it all up, it comes close to $175 billion. that has gone up from the federal government to state government for various things, >> checkout c-span.org to see the rest of this segment. to the eisenhower executive building here in washington. >> the success that are proper partners would like to encourage. please join me in welcoming zoe damacella. [applause] >> hello, everyone. thank you for attending

. >> tom: our housing coverage continues tomorrow. moodys.com chief economist mark zandi joins us to talk about why he's sees housing hitting a bottom this year. and from palm beach houses to miami condos, how one of the epicenters of the housing crisis is coming back. >> susie: here are the stories in tonight's nbr newswheel: despite those lower home prices, consumer confidence is at its highest level in eight months. the conference board's consumer confidence index climbed to 60.6 this month. that's up from 53.3 last month. while that reading is higher than economists expected, it's still far from the 90 level that indicates a healthy economy. higher confidence wasn't enough to boost stocks. the dow slipped three points, the nasdaq gained nearly two, and the s&p 500 rose a fraction. big board volume was back above one billion shares while nasdaq volume held steady at just under two billion shares. shareholders of public companies will get to weigh in on the boss' paycheck. the s.e.c. approved today the "say on pay" rule part of the new dodd-frank act. shareholders can vote at least

host: john cage is the president of the f >> tomorrow, on washington journal, mark zandi says as the republican-led congress and president obama is plans to jump-start the economy and create jobs. steve heydemann has the latest on each of and its impact around the world. and michelle garcia discusses federal stalking laws. >> >> welcome to "newsmakers." our guest today is republican north carolina. >> there is a lot of concern about the position that states find themselves in right now with their deficit and their debt. i am curious about whether they will have to come to congress about a bailout. you have a subcommittee that will look at these issues. how you plan to approach that subject? >> it is important we understand the magnitude of the problem. the fiscal situation of the states and the municipalities. i want to make sure we have a series of hearings about the problem and the potential solutions. that is what i intend to do on the subcommittee. >> no one is talking about a legislative solution possibly? >> possibly. we have this idea of state bailouts versus state bankruptcy.

zandi discusses the economy and the way to create jobs. michelle garcia discuss the state and federal stalking laws. "washington journal," live at 7:00 a.m. eastern on c-span. next, "q & a," with former president george w. bush. and david cameron at the british house of commons. and another chance to see minnesota governor tim pawlenty in bedford, new hampshire. >> this week "q&a" comes from the campus of southern university, the former site of president george bush's library. a model of the three-story building is currently on display. it is expected to be completed in 2013. recently, the former president sat down with students to take their questions and discuss his best-selling memoir, "decision points." >> what was writing this book like? >> i am a type a personality, and the book gives me of focus and a project to keep me occupied. i was sitting around was no intelligence briefing, no crises to deal with, and the book and gave me something to focus on. i actually started writing the book the first day of my post- presidency. >> when d

it would be a big mistake, as mark zandi and other economists have said, to take deep, immediate, draconian cuts. to put the brakes on a fragile coverage, it risked putting people out of work. do we need responsible reductions, yes, the president talked about that. and senator conrad has been a leader on this, we have passed now -- we need act on a bipartisan basis to put together plan that was this country on a sustainable fiscal course. i think the president last night indicated that he wanted to work with republicans in serious fashion, and i've told a new chairman of the house budget committee that democrats look forward to working with him and the white house to try to do that as soon as possible. >> excellent statement. yes, sir. >> [inaudible] what he think of that idea and contingency plans to be made? >> what they are saying is that we're one to forget about the american public and the things that they need. somehow they are secondary, and pain that chinese and japanese is the first priority of this country. i do not even know how to describe that i did except it is a very bad one.

zandi's estimate to the number of jobs we would have without the senate -- the federal response. it shows we would've had 8 million fewer jobs in the second quarter of 2010 if we had not had the federal response, the t.a.r.p. and the stimulus. we see a similar picture with the unemployment rate. unemployment rate averaged 9.7% in the second quarter. according to dr. blinder and dr. zandi, if we have not had the federal response, the unemployment rate would have been 15% in the second quarter, and would've continued rising to over 16% in the fourth quarter of 2010. so clearly the federal response to the economic crisis has had and continues to have a significant positive impact on the economy. but we are not out of the woods. we can't forget that as i mentioned before, one in every six of our fellow citizens are either unemployed or underemployed. the unemployment rate in december which was also announced this morning was 9.4%. this is still far too high. the federal reserve projections show the rate is likely to come down only slowly, averaging still in the height eight percentag

zandi's estimate to the number of jobs we would have without the senate -- the federal response.ld've had 8 million fewer jobs in the second quarter of 2010 if we had not had the federal response, the t.a.r.p. and the stimulus. we see a similar picture with the unemployment rate. unemployment rate averaged 9.7% in the second quarter. according to dr. blinder and dr. zandi, if we have not had the federal response, the unemployment rate would have been 15% in the second quarter, and would've continued rising to over 16% in the fourth quarter of 2010. so clearly the federal response to the economic crisis has had and continues to have a significant positive impact on the economy. but we are not out of the woods. we can't forget that as i mentioned before, one in every six of our fellow citizens are either unemployed or underemployed. the unemployment rate in december which was also announced this morning was 9.4%. this is still far too high. the federal reserve projections show the rate is likely to come down only slowly, averaging still in the height eight percentage point range by

i think the study you pointed out, the zandy study -- >> i would ask unanimous condition sent for anional one minute for the witness to respond. >> it makes it very clear, we would have entered into a second great depression. we could have entered into unemployment of above 16%. the fact that we averted that is a benefit to main street. the fact that people can now borrow again and they couldn't as a result of this crisis is a benefit to main street. the fact that we have an auto industry in this country and we saved a million jobs, not just at the auto companies but their suppliers is a benefit to main street. there are a number of benefits to main street. i don't think one has to look very far to realize that. as to the progress in implementing dodd frank, a lot of work is going on. i'm not responsible for that, but i'm happy to tell you what i know and make sure the proper officials of treasury give you additional information. the financial stability oversight council has been meeting actively in developing a number of rule makings to address these issues. they have the powers to

zandi's estimate to the number of jobs we would have without the senate -- the federal response.shows we would've had 8 million fewer jobs in the second quarter of 2010 if we had not had the federal response, the t.a.r.p. and the stimulus. we see a similar picture with the unemployment rate. unemployment rate averaged 9.7% in the second quarter. according to dr. blinder and dr. zandi, if we have not had the federal response, the unemployment rate would have been 15% in the second quarter, and would've continued rising to over 16% in the fourth quarter of 2010. so clearly the federal response to the economic crisis has had and continues to have a significant positive impact on the economy. but we are not out of the woods. we can't forget that as i mentioned before, one in every six of our fellow citizens are either unemployed or underemployed. the unemployment rate in december which was also announced this morning was 9.4%. this is still far too high. the federal reserve projections show the rate is likely to come down only slowly, averaging still in the height eight percentage po

i think the study you pointed out, the zandy study -- >> i would ask unanimous condition sent for an additional one minute for the witness to respond. >> it makes it very clear, we would have entered into a second great depression. we could have entered into unemployment of above 16%. the fact that we averted that is a benefit to main street. the fact that people can now borrow again and they couldn't as a result of this crisis is a benefit to main street. the fact that we have an auto industry in this country and we saved a million jobs, not just at the auto companies but their suppliers is a benefit to main street. there are a number of benefits to main street. i don't think one has to look very far to realize that. as to the progress in implementing dodd frank, a lot of work is going on. i'm not responsible for that, but i'm happy to tell you what i know and make sure the proper officials of treasury give you additional information. the financial stability oversight council has been meeting actively in developing a number of rule makings to address these issues. they have the powe

i think the study you pointed out, the zandy study -- >> i would ask unanimous condition sent for an additional one minute for the witness to respond. >> it makes it very clear, we would have entered into a second great depression. we could he entered into unemployment of abe 16%. the fact that we averted that is a benefit to main street. the fact that people can now borrow again and they couldn't as a result of this crisis is a benefit to main street. the fact that we have an auto industry in this country and we saved a million jobs, not just at the auto companies but their suppliers is a benefit to min street. there are a number of benefits to main street. i don't think one has to look very far to realize that. as to the progress in implementing dodd frank, a lot of work is going on. i'm not responsible for that, but i'm happy to tell you what i know and make sure the proper officials of treasury ge you additional information. the financial stability ovsight council has been meeting actively in developing a number of rule makings to address these issues. they have the powers to reg

and it would be a big mistake as mark zandi and other economists have said to take deep, immediate, draconian cuts. that puts the brakes on a fragile economy and risks putting people at work. do we need responsible immediate reductions? yes, and the president talked about that. second thing, and senator conrad has been a leader on this. we need to act now. we need to act as soon as possible on a bipartisan basis to put together a plan that puts this country on a sustainable, fiscal course. i think the president last night indicated that he wanted to work with republicans in a serious fashion. and i have told the new chairman of the house budget committee that democrats look forward to working with him and the white house and, of course, the senate to try to do that. >> thank you. excellent statement. >> yes, sir. >> a group of republicans seek to prioritize repayments of the debt, the debt ceiling has reached by putting principal and interest owed to investors to the front of the line. what do you guys think of that idea and could there be some contingency plans? >> i think it's a dreadful id

it would be a big mistake, as mark zandi and other economists have said, to take deep, immediate, draconian cuts. to put the brakes on a fragile coverage, it risked putting people out of work. do we need responsible reductions, yes, the president talked about that. and senator conrad has been a leader on this, we have passed now -- we need act on a bipartisan basis to put together plan that was this country on a sustainable fiscal course. i think the president last night indicated that he wanted to work with republicans in serious fashion, and i've told a new chairman of the house budget committee that democrats look forward to working with him and the white house to try to do that as soon as possible. >> excellent statement. yes, sir. >> [inaudible] what he think of that idea and contingency plans to be made? >> what they are saying is that we're one to forget about the american public and the things that they need. somehow they are secondary, and pain that chinese and japanese is the first priority of this country. i do not even know how to describe that i did except it is a very bad one.

damage the economic recovery, which is in a very fragile state and it would be a big mistake as mark zandid to take deep cra copian cuts that put the brakes on a fragile recovery and risk putting people out of work. do we need responsible immediate reductions? yes. and the president talked about that. and second thing and senator conrad has been a leader on this, we need to act now, as soon as possible on a bipartisan basis, to put together a plan that puts this country on a sustainable, fiscal course. i think the president last night indicated that he wanted to work with republicans in a serious fashion. and i have told the new chairman of the house budget committee that democrats look forward to working with him and with the white house and of course with the senate to try and do that as soon as possible. >> thank you. excellent statement. yes, sir. >> a group of republicans put out a bill today to prioritize the debt on the debt ceiling. what do you guys think about that idea and r plans being made? >> i think it is a dreadful idea. basically what they're saying is pay china first. we'r

zandy's estimate without the federal response. we would have had a million fewer jobs in the second quarter of 2010 if we had not had the federal response, the tarp and a stimulus. we see a similar picture with the unemployment rate. the rate averaged 9.7% in the second quarter. according to dr. blinder andzandy, if we did not have the federal response, the rate would have been 15% in the second quarter and would have continued rising to over 16% in the fourth quarter of 2010. clearly, the federal response to the economic crisis has had and continues to have a significant positive impact on the economy. we are not out of the woods. we cannot forget that as i mentioned before 1 in and every six of our citizens are either unemployed or underemployed the unemployment rate in december which was announced this morning was 9.4%. this is still far too high. the federal reserve projection shows the rate is likely to come down only slowly, averaging still in the high a percentage point range by the fourth quarter of 2012. as i noted, we mu