l. crisis why do you think it is that i mean this is an order of magnitude larger than the s. and l. crisis why was it that no one went to jail this time. it's a good question it's really sort of inexplicable to me. i think part of it is that . it takes political will to prosecute people and president obama is very much a meat in the middle kind of guy. and you really you know and in some political issues that may be effective but it's you know you really can't if someone commits a crime if somebody commits fraud compromising with them other than say you know doing a plea bargain which which in which they then. point the finger up the line and provide evidence on people higher up the line that's not something you can really do if you're going to prosecute people if you prosecute people you've got to be willing to kind of grit your teeth and just do it yeah yeah and in both the bush and the obama administration seems that perhaps some of the people involved in that were fairly close to their administrations or even in them but i want to get into the role of whistleblowers and in fact t

a tiny fraction, for example, of what the country paid to resolve a much smaller crisis, the s & l crisis, which cost us 3.5% of gdp. >> all right. thanks very much. >> senator kerry? >> excuse me. senator cardin. >> thank you, mr. chairman. first, secretary geithner, let me thank you. thank you for your presentation, thank you for your service. i agree we need to have a balanced approach, whether it's dealing with our budget deficit as the administration's budget deals with revenues and spending which we have to do both. it also deals with deficit reduction but recognizing that we're in a recovery and that we need to make investments in education, job training, and infrastructure, which i agree with. i want to concentrate if i might on the middle class, how important it is to grow the middle class. i look at the numbers and see a shrinking middle class and wonder where consumers are going to be to buy the products we want to produce. i take a look at the administration's budget and on the revenue side, everyone talks about the revenues that it generates. well, that's using a baseline tha

i am often asked about the s-&-l crisis and white is it different now. it is somewhat in my view, at least -- in the s-&-l crisis, people all over the country were indicted or prosecuted or sued civilly, and they tended to be local bankers in local areas, sometimes for a relatively modest amounts of money. i would say to all of you in this room that that is what happens now. that is what has happened at the last three years. 2100 people have been charged with mortgage-related cases around the country. putting in jail the wall street barons -- that is the criticism here. don't assume that because you are all living in manhattan that right now, all these investment frauds and mortgage fraud, that we are not doing it. what is going on is somewhat analogous. look, as the fbi director says, as everyone says, the number-one priority will always be to keep the country safe. safe from terrorism, right? i'm assistant attorney general of the security division. there is the international security division. congress decided we needed to have one for the vigilant fig

if i can take you back to the s&l crisis, there were thousands of justice department lawyers going after of uses in that crisis. now the justice department has about 50 people going after this one. my question is -- why are we providing -- why are we not providing the justice department with the resources that it needs to get to the bottom of this worst financial crisis since the great depression? it goes back to some people's endless pursuit of cutting government. now we need government, we do not have the tools to get to the center of this serious financial crisis that is dragging our economy down. host: from twitter -- guest: well, the fact is -- his point is right. when mortgages were originated, the originators would not look at the loan to see if it is a worthy loan that will perform over the long term. they wanted to know that they could sit -- sell paper that could be securitized on the secondary market. we have risk retention rules that will help the proper underwriting of a loan and an assessment as to whether the person can pay. plus, we have also taken out a lot of the incent

chairman, even if we cut the pentagon by 25%, make it 50%, l structural debt crisis in our nation? yes, that's to you. >> you refer specifically to health care. this is an area where costs have been going up much faster than gdp. the output of the health care industry is not that marketedly better than other countries. so clearly not only for fiscal issues but also for private sector productivity, it's an important issue to address. as a matter of arithmetic, over time, the out lays of federal government will be going to medicare, medicaid, and other health related programs. it is very important to address that. >> thank you. on page 7 of your testimony in dealing with your dual mandate, you say the maximal level of employment in an economy is largely determined by non-monetary factors. in my remaining time i really want to pursue this theme. i certainly agree with the assessment but i question, after three years in the most highly accommodated monetary policy i believe in the history of our nation, the recent announcement that we will continue this policy for two more years. i mea

that's pretty messy s and l crisis, as well. think back.s and loan banks in a ox itoxic situation? one issue is they were making boat loads of fixed rate mortgages and they were aing in short term deposits to fund them. what happened was when interest rates started to go up, they were locked on money at the lower rate that they lent on and the borrow, they kept goosing how much they were giving people for their savings accounts and all that didn't end well. drexel, lehman, i could add merrill, bear stearns, when they went out of business, were they broke some no, they had boat loads of dough. i remember drexel, and i was at drexel, state street took them years to clean it up and there was a lot oney. they just couldn't finance the firm. so what do you think is under the question mark? come on, we all know the answer. borrowing short, lending long. i know it is an axiom of the banking industry. but like anything, you can't overdo it. the first thing told to me be careful about borrowing short to lend long. is there a lesson the government ca

cost of this will be tiny fraction of what the country paid to result in much smaller crisis, the s&l crisis, which cost up 3.5% of gdp. >> senator cardin. >> thank you, mr. chairman. first, secretary geithner are, let me thank you and thank you for your presentation. thank you for your service. we need to have a balanced approach, dealing with budget deficits as the administration's budgets, deals with revenues, and spending, which we will be happy to do both. it also deals with deficit reduction, recognizing we are in a recovery and we need to make investments in education, job training, and infrastructure. i want to concentrate on the middle class, how important it is to grow the middle class. i looked at the numbers and see eighth shrinking middle class. i look at the budget and on the revenue side everyone talks about the revenues that it generates. that is using a base line that is current policy rather than current law. if we use current law, the revenues would be different. with current law, if we did not change it, the middle-class will get socked. tax rates will go up and. part of

and so if i could take you back to the s & l crisis, there were over 1,000 justice department lawyers going after abuses in that crisis, and now the justice department has 50 people going after this one. my question is, why aren't we providing the justice department with the resources it needs to get to the bottom of what is the worst financial crisis since the great depression, and, again, this goes back to some people's endless pursuit of cutting government. now that we need government, we're without the tools to get to the bottom of what is really a serious financial crisis that is dragging our economy down. >> host: on twitter, representative ellison, the problem was banks sold the mortgages so no incentive to write good ones. >> guest: the fact is -- i mean, his point is right. when mortgages were originated, original nateors would not look at that loan to see, is this a worthy loan or going to perform. they wanted to know, can i sell this paper that can be securitized on the secondary market, and i think that, yes, we have risk retention rules, part of dodd-frank, that will help

to growth in that russia's accession to the w t l is a well timed especially now in a time of crisis how would a fact the financial services sector and what's going to happen to banks. well some dealing with in fact we can even say now that russia has practically entered the w t o because we observe most of the w t o imposed restrictions we hope to gain some benefits and advantages from our w t o entry in order to increase competition and make it possible to protect our goods in western markets within the w t o framework that is why our companies have already incurred the expenses linked to w t o entry now we are waiting to see the exactions positive impact on russia's economy or what are your forecasts for the g.d.p. growth this year and inflation you know. we hope inflation this year will be lower than in two thousand and eleven at least the first weeks of two thousand and twelve indicate the inflation rate is much lower than last year however we've postponed raising tyrus for housing and utilities as the services of other natural monopolies to july first this year so this year the

switzerland i was at davos and some of the bankers there were saying that the l t r o has been very successful in averting a credit crisis and a liquidity crisis but politicians did the l.t.r. o. technocrats in order to try to get these banks to buy.

switzerland i was at davos and some of the bankers there were saying that the l t r o has been very successful in averting a credit crisis and a liquidity crisis but politicians did the l.t.r. oh technocrats in order to try to get these banks to buy european sovereign debt which they haven't done instead it's just you know as i said averted a credit crisis or a liquidity crisis in their view is this just another example though of politicians or governments doing whatever they think is going to help but in the end of the day it's just a bailout for the banks. that's exactly what it is that's good sure i mean you pump out hundreds of billions of dollars for two or three years everything looks better for the people who get it but in the it's worse for all of us it's worse for the world because three years from. now we're all going to have to start dealing with these problems that they're not solving the problems no country that's involve you shows the deficit is a year from now or two years from now three years so all this is is that ok let's get through the next election or two and then things will be better but nobody nob

l fuerzas armadas. el gobierno planreducir gastos de defensa en 480 $ 1 mil millones en los prÓximos aÑos. >> se lleva la peor parte con la crisisuarder{ias. >> la recesiÓn económica del paÍs, aunada a la crisis del paÍs de california estÁ golpeando seriamente las mujeres de bajos recursos, a las madres solteras y a sus hijos queden como los Últimos aÑos su sueÑo de una vida mejor parece lejano e inalcanzable. >> esto, segÚn un estudio de la organizaciÓn california proyect. >> se estÁ cometieron un ejemplo malo de nuestro paÍs volvemos a lo mismo. >> a ser otra vez pobres. >> es que el desempleo y los acordes en servicios como guarderÍas, les impide su superaciÓn entre sus familias. >> mi plan es comprar una casa, y sÓlo para hacer eso tengo que ir a la escuela. >> el estudio encontrÓ que entre el 2008 y el 2011 hizo recortes por miles de dÓlares en programas de asistencia social para padres. en ese mismo perÍodo de tiempo el 82% en el descenso de las matrÍculas en colegios comunitarios. >> a raÍz de esta crisis mÁs de 35.000 niÑos del estado se han quedado sin el servicio de guarderÍa. >> quiero trabajar y voy a pagar un babysi

l. soox*usz look beyond the united states. we've seen the united states. they were up this year. do you think the european financial crisis is a little bit more in control, and making progress, or are there going to be more bad news to impact the american markets? >> i think we're through the eye of the storm. that's not to say we can't have more europe related volatility. but relative to the roller coast every ride last year where every asset class was trading on the headline out of europe, the ecb pumping into the european banks has gone a long way to reducing sovereign stress. we think we're through the worst of that in terms of impact on u.s. equities. but that's not to say on a shoertd term basis on any day we couldn't have a european related sell-off. relateed to last year, we think we're in the right direction. >> susie: what's the next day for the market? a leg up higher or a pullback? >> we think a pullback is probably the most likely. we've had a good run, but they've run from cheaper around christmas to fair value at this point, and a lot of positives factored in, including stableation in europe and more stable

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crisis in syria and what it could take to stop it. >>> also making news, wikileaks founder julian assange is entering the final stage of his extradition battle l in the uk later on. he has been fighting the effort to be moved back to sweden to fight the allegations of rape and sexual assault. hopefully, we'll have news later on today what happens. >>> and it's what the entire tech world has been waiting for. the facebook ipo filing could come as early as today, folks. experts say the social network could be valued between $75 billion and $100 billion once it starts trading publicly. mind boggling. >> a lot of money. it would be an expensive ipo if you want to get in on it. >>> happening now, an alaskan volcano looks like it might be ready to blow. if you think it's a long way away and couldn't affect you, it could threaten intercontinental air travel. apparently 90% of air freight from asia and 20,000 passengers fly through that air space daily. the satellite data is detecting eruptive activity. it's the cleveland volcano, way down the archipelago southwest of anchorage in the aleutian islands. apparently, the eruptions could happen at any tim