jim paulsen, chief investment strategist at wells capital management, joins us. to do, he is with us dr. the twin cities minneapolis, welcome back. are you investing for a recession or are you preparing portfolios for recovery? >> well, i'm worried about a recession, tom. but i think the odds are still heavily if favor that the economy continues to grow. maybe not superfast but continues to grow. and given as bruce said where expectations are right now, any evidence of a continued growth is probably going to bring a bid to this market and a rally. so i'm investing on the side of preparing yourself for calming fears in a reacceptance that the economic recovery is going to continue. >> tom: jim, how do you protect against those concerns, five of the past eight session force the dow industrials have seen price swings of at least 300 points. how do you deal with that volatility day in and day out? >> i think a couple of things. one is i think you don't want to make any big moves in the middle of really rapedly moving markets to your portfolio positioning. secondly, i

(paulsen) your music, from the beginning in the airplane-- it was different from other people. and i have to believe you never aspired to be bobby vee. it was always-- i was a child of the weavers. i was--not raised on the weavers, but when i came into music, i was musically raised by the weavers. they were the first person who struck me as a force. they eventually became the form from which i wanted to be-- the kind of band i wanted to be in. and when we started our band, this was the template that, unconsciously, anyway, i said, "well"--marty asked me the first night he met me-- he said, "you want to start a band?" i said, "yeah, we could do that. but there has to be a woman in it." 'cause i had always been swept away by the work of ronnie gilbert, the woman singer in the weavers. and we just went uphill from there. the weavers had a great combination of both hedonism on the lee hays side all the way through the social responsibility and the powerful singing and into the total aesthetic, almost amish approach of pete seeger to life. so i was talking to ronnie about it once be

hank paulsen, treasury secretary under george w.ush said this week that really it's not about leadership, it's really about europe and about europe not having the financial houses in order when you look at places like italy, for example. how much of a role does that play? >> jenna, hank paulsen has a tremendous track record at goldman and the government but i have to take issue. purely and simply, it wouldn't have have happened if we had leadership in europe and we don't have it. we run around like headless chickens, trying to finger up or thumb up the dam and until they focus with a united approach with what has to happen with europe and that each country is responsible for its own decifit and for getting his own austerity measures put in, not being forced to do it, but they have to do it, and until europe says we are completely united on this and we will police and that we will stand four square behind each other, this is the same problem that you have in the united states. you have to agree, something, apart from no interest rate

my question, secretary paulsen, you say the united states must be stronger economically than china. can you expand on how we get stronger? >> how do we get stronger? i think a little bit almost the way i answered the last question. it certainly is not spending more money on military. ok? we spend multiples of what other countries spend on the military, and even their there is room to cut and still be strong. it is very hard to cut military spending, because part of this is jobs in politics and everything else. what i think we need to do, we need fundamental reform, because i do believe the chinese and everyone understand economic strife. i think that bob reich's question about wall street was a good one. at a time when people looked at us, and looked at us as having been pixie dust. in our capital markets were the world. they wanted to work like us. when i talk to the chinese about opening their capital markets, because i believe they needed to open the markets for their growth, and they were not able to make the kinds of changes they needed in china unless they performed and alloca

also in the paulsen, hang possum's book on the financial crisis.this is an area that i really want to become a much better student of and this helped me do that. too big to fail. this is just about done. liberty and love. a lhasa, liberty, and love. she is a good friend of mine. i admire her dairy -- willingness to question tradition and convention. she promotes this idea. if you have means, inquiries, questions. add a time when you find some people who will offer ideas based on tradition and just president, she is one that says there is this other tradition, and grow way and questioning. herbert basically is talking about how the modern islamic world has an average city to incorporate freedom. as the get the area, it split. no doubt that it is actually the prospective. that is exactly what the people in tunisia and all over the region by saying. you know, they believe that they can have their fate in liberty. they don't have to live under authoritarian government. she is one of really raising some important questions. so i've really, you know, a h

. >> secretary paulsen, i have a question about another one of your passions. given what seems to be that has been divided on a partisan basis, what can we do to raise awareness about environmental issues and what role can the federal government play in trying to create awareness of an issue? >> to me, this is hugely important. i will just tell you what i am doing. my interests, personally, have always been in a wild beautiful places. biodiversity, working to help the first national parks and china in a non province or in chalet were doing things in the united states, working on a green force. that is what is fun for me because i like to be -- i am very concerned about global warming, i am very concerned about all of the issues with energy efficiency, alternative sources of energy. the paulsen institute at the university of chicago, one of the major issues is going to be environmental. we are the two biggest economies, the two biggest emitters of carbon, the two biggest importers -- we have common interests. the only way we solve this problem is by developing a

my question, secretary paulsen, you say the united states must be stronger economically than china.ou expand on how we get stronger? >> how do we get stronger? i think a little bit almost the way i answered the last question. it certainly is not spending more money on military. ok? we spend multiples of what other countries spend on the military, and even their there is room to cut and still be strong. it is very hard to cut military spending, because part of this is jobs in politics and everything else. what i think we need to do, we need fundamental reform, because i do believe the chinese and everyone understand economic strife. bob reich's question about wall street was a good one. at a time when people looked at us, and looked at us as having been pixie dust. in our capital markets were the world. they wanted to work like us. when i talk to the chinese about opening their capital markets, because i believe they needed to open the markets for their growth, and they were not able to make the kinds of changes they needed in china unless they performed and allocated capitol and had