you are blaming the aig bonuses on the automakers' union? you have to be kidding me! the point here is maybe it -- these bosses need spend this money differently. we are going to talk about wall street. we've had a record -- what is the smart money telling us about the midterm that you can't afford to miss. ♪ [ man ] i thought our family business would always be boots. until one day,y daughter showed me a designer handbag. and like that, we had a new side to our business. [ male announcer ] when the martinez family saw an opportunity, the hartford was there. protecting their emoyees and property, and helping them prepare for the future. nice boots. nice bag. [ male announcer ] see how the hartford helps businesses at achievewhatsahead.com. >>> stocks clouds out best september in more than 70 years. is wall street already telling us which party will be the winner? >> how >> reporter: the cia is stepping up in pakistan increasing the use of predator drones over the border between afghanistan and pakistan. the activity has increased tends between pakistani officials and

bp like aig benefactor aig scandal, which is considered a rock solid safe bet.when you're buying on bp it was about as safe as you could get. after the oil spill it went through the roof. >> like $600,000 to ensure the debt. >> end day trading, the close of the high about 600. there were points it went up to 800 or 900. >> it's back down to 160. >> this is relatively low but still higher than it had been before. >> let's bring in bp. we wanted to get bp's response. it's a pretty compelling argument you make, this could -- long shot that it may be -- bp could have trouble on its hands or financial system. bp launched a bond over prescribed raising $3.5 billion and credit default swap rating improved as a result. they are saying they need to raise money, in the debt markets everything is fine. let's bring in the host of quest means business. one thing we know about bp, this company is a cash machine. yes, it has huge costs and uncertainty ahead of it. that's one thing to be clear. they are making money hand over fist. the prosperity, this is a vital british intere

aig roseore than 4% after unveiling a plan for its to repay its $182 billion taxpayer bailout. prudtial fell more than 4% after it agreed to buy two japanese life insurance units from aig for $4.2 billion. and here we go again. dollar thrifty shareholders rejected a buyout offer from hertz, giving it another chance to rival bidder avis. >>> elseware fisher-price will recall about 10 million toys and other items in u.s. and canada due to a potential injury. n narviartis will pay. and finally for you. fast food for breakfast is nothing new, but how about a breakfast pizza. yeah, a 24-hour domino's in ohio is experimenting with a pizza made wh eggsnd breakfast meats. sales are strong. breakfast may be coming to a domino's for you. breakfast of champions. >> a royal pain for the rays, the giants sweep toward the playoffs and a battle of the unbeatens, plus, if you really feel the need go for a ful ball with a kid in your handa, you'd better be sure not to make an error. your early morning sports headlines are straight ahead. >>> e tropical downpours on the east coa will moving offs

initially, though, the government will own 92% of aig. eventual it plans to bin selling that stock ithe open ma. >>> home prices ar upor the fourth straightmth, according to the&p case-shiller me index. they still remain about 28% below the peak in july of '06. >>> and jpmorgan chase will delay more than 56,000 foreclosure proceedings because of paperrkerrors that comes on the heels of g-mac halting foreclosures and evictions in 20 states for similar reasons. it certainly has been an extraordinary september for the markets. what is next and where do we go from here? joining us is doug cliggott. great to have you on the program. so the besseember for the stocmark since1939. really surpris everybody. >> it's stunning. >> doyou think the momentum continues into october? >> ink it will be tough to keep it going. we like to look a quarterly data, anen whatou see is when in any particularquarter, if o asset class does a lot better than another, stocks did much, much better an bonds in the third quarter, yo tend to see a reversal at the beginnin

aig rose more than 4% after unveiling a plan for it to repay its $182 billion taxpayer bailout. prudential fell more than 4% after it agreed to buy two japanese life insurance units from aig for $4.2 billion. >>> and here we go again. dollar-thrifty shareholders rejected a buyout offer from hertz, giving yet another chance to rival bidder avis. >>> elsewhere fisher-price, a unit of mattel, will recall about 10 million toys and other items in the u.s. and canada due to the potential for serious injuries. >>> novartis will pay $422 million in penalties for marketing an epilepsy medicine for unapproved uses and for paying kickbacks to doctors who prescribed it as well as five other drugs. >>> and, finally, for you. fast food for breakfast is nothing new, but how about a breakfast pizza? yeah. a 24-hour domino's in ohio is experimenting with a pizza made with eggs and breakfast meats. now, if sales are strong for this one, breakfast pizzas may be coming to a domino's near you. breakfast of champions. >> a royal pain for the rays, the giants sweep toward the playoffs, and a battle of

aig rose more than 4% after unveiling a plan to repay its $182 billion taxpayer bailout.tial fell more than 4% after it agreed to buy 2 japanese life insurance units from aig for $4.2 billion. here we go again, dollar thrifty shareholders rejected a buy-out offer from hertz giving another chance to rival a advice. >>> elsewhere, fisher-price will recall about 10 million toys and other items in the u.s. and canada due to the potential for serious injuries to kids. >>> novartis will pay $422 million in penalties for marketing an epilepsy medicine for unapproved uses and for paying kickbacks to doctors to prescribe it as well as five other drugs. >>> finally, if you are hungry out there and have fast food for breakfast, that's nothing new for a lot of us. how about a breakfast pizza. a 24-hour dominos in ohio is experimenting with a pizza made with eggs and breakfast meats. if sales are strong, breakfast pizzas may be coming to a domino's near you. something to look forward to. >>> a royal pain for the rays. the giants sweep toward the playoffs and a battle of the unbeatens.

when i said -- >> i don't understand what aig did. >> it is the ponzi scheme. that's the problem. >> that's the problem. complexity is not a bug for wall street. it is a feature. they're hiding behind complexity. so the fact that it is so hard to regulate them is not an accident, it is intended. >> your tax cuts extending them for the rich as arianna said would add a trillion dollars every year to deficit. where are you going to cut? >> the four years after those terrible bush taxes for the rich we had the biggest revenue gains in the history of the united states. the way to get the economy going is to keep tax rates low. i don't want to have america look like new york. i want america to look like texas, which is booming right now. >> oh, my goodness. now you're getting my heart pounding faster. >> i knew that would get you. >> but, steve, would you agree that the easiest way to actually get jobs at the moment would be a payroll tax holidaidaholiday. wouldn't that be more effective? >> i have no problem with that. >> can we agree the next step would be to repea

as we continue to be at citigroup and aig, we continue to be in that position. what is the appropriate policy in regards to pay at institutions where the government has that kind of interest? >> because a large taxpayer investment in those institutions, we want to worry about getting the taxpayers' money out. at the same time, we are worried about -- >> there has been a lot of talk about how much we want the money back. do we want that back at the expense of stabilizing the institutions? >> absolutely not. the point has been made that, to the extent that we make the compensation constraints to onerous -- too onerous, that provides incentives for companies to get out from under -- they do not want the government being an investor. >> so should treasury allow them to leverage up recklessly? i need to stop there. mr. white, you talk about an issue you had with the construction of time horizons. can you expand on that? >> the point that i would make is that, one of the things we looked at very closely when examining executive compensation in any industry is whether

just look at caterpillar or aig and they're lobbying to keep the game rigging because they invested in china. nothing sums it better our drop from first to fourth. other countries wanting to bring their money to our country. and an investment just one half of the jobs equation. education is the other. >> there are 5 million people who could go to work tomorrow if they were trained to do the jobs that are opened and the unemployment rate in america immediately drop to 7.9. >> that's right, 5 million jobs and 3/4 of corporations say they didn't find qualify candidates to fill open positions. if we're going to bring jobs back, washington needs to do its job. beginning with economic policies that work for the american people. not the powerful few who are profiting from this country's extraction. let's bring in our team on ideas on what works to lead this. peter morici, jim from reuters and leo henry. professor, i will begin with you, if you directed the energy, like a swarm of bees, the people who are watching this show, the people who read about this on the internet the people who are get

it is tough for the government to make a profit on aig. it is a big change from the $45 billion lost their looking at a few weeks ago. host: the independent line in tallahassee, florida. good morning. caller: it might be a example of what we have here that people are fleeing mainstream media and going to the alternative media. that you believe the tripe coming from our government or the so-called experts that you "or listen to. there will be no recovery. i do not know how we can call ourselves a free country and how you cannot report on it. they call going in for this bailout were 2001 against it -- the so-called leaders of this country that seem to know better than us at every term. they passed it anyway. even if it was a bad thing to reduce the money or to do the bailout, which did not be prudent or why could we not have called ourselves a democratic- republican if we went with the people's wishes? also with the so-called criminal bankers? all of this was forecast by people who seem to know a lot more than you'd do about this. i would as

hacerse ciudadano el 4 de julio está orgulloso de votar por primera vez >>> el voto es importante porque aigsreso y a la vez, una puede involucrarse con el país. >>> los latinos naturalizados votan en mayor porcentaje que los nacidos aquí, como rut ciudadana desde abril >>> el voto hispano puede hacer la diferencia en este país, y tenemos que demostrar que todos los latinos unidos podemos hacer cambiar el futuro de este país. >>> hay más en juego que nunca para la comunidad latina. >>> vemos muchos candidatos que nos atacan y otros que nos ignoran y nosotros tenemos que salir a votar en esta elección para decir a estos candidatos que nos tienen que respetar >>> naleo estima que más de 6 millones de hispanos votaran y los corto jan a todo nivel. >>> la ganancia de ellos es de si los latinos saben a votar en favor de ellos es decir, cada elección nosotros aumentamos nuestro poder más. si nos quedamos en casa, no ganamos, no crecemos. >>> todos los escanios de la cámara están en juego más de 3 millones vod tan tes ya decidieron quien los representará. >>> si usted no puede ir a las urnas el 2d n

. $47.5 billion went to aig and none has been repaid yet but yesterday the news was that aig and the u.s. agreed to an exit deal on that money. the capital purchase program, but to many of the banks -- most banks have repaid the funds they receive been redeemed warrants and hundreds of smaller banks have not done so yet. about 147 out of the two budget 4.9 billion has been repaid -- out of the $204.9 billion dollars has been paid. here is "the washington post" on this. chicago. terry, democratic line. caller: i think that tarp was needed. i think people need to take their emotions out of it. the economy but of gone over the cliff. -- would have gone over the cliff. they still saved the auto industry. i don't understand where the anger is coming from. misery loves company, because they are suffering they want the entire company to suffer. i commend bush for getting that started and i commend the president for finishing it off. so, it was a good thing to do. in time people are going to realize that obama has brilliant people working for him and people should get the facts and not just

>> if you take a look at aig, converting to common shares of stock, as of yesterday, that would be a $20 billion profit. i'm not walking way out on a limb to say that was not the conventional wisdom. most people in their accounting of the troubled assets relief program, was that that money was gone. the briefing the president received reiterated that financial institutions, the investment made by t.a.r.p. in the financial institutions is likely to yield a process. we are at roughly one-tenth of the cost today that we were at last august. this is not an accident. if you take some of the steps that were taken at aig or some of the steps that were taken at places like gm or chrysler, this created a bit of a star but this -- stir but this was not money to meet the balance sheet for balanced sake. sake. money's this required some very tough cultural changes in the company, management changes, and it changed the way these companies were operated because they were not operating in a way the provided insurance to anybody -- assurance to anybody that they would be here for long. instead of ha

shares of aig up 33% this year. citigroup up 25%.day retail sales this year. they are looking for a jump of 2.3%. and kohl's this morning says they plan to hire 40,000 temporary seasonal workers for the holiday, that's 7,000 more than last year we have is kohl's, the national retail federation and the market all seeming to say they see a light at the end of this economic tunnel. >> my goodness. we'll take it. thank you, john. >>> cell phones are the subject of protests planned in downtown san francisco today, tomorrow and friday. the protests outside the moscone center will follow a speech by a writer whose book "disconnect" discusses cell phone impacts on dna and the brain. several people who blame their brain tumors on cell phones will participate. >>> as if we don't have enough ways to connect, there is another app for that. it's called bump.com. smart phone owners can scan a license place with a special app and determine if the other drive is also a bump member so they can connect. it will also let businesses communicate with dri

they were handing out retention bonuses when aig was getting smacked around for doing that. the reason why they are so bad they put the u.s. foreign policy into a bind. henry paulison said china was under pressure to dump the debt that pressure forced the u.s. to take them into conservatorship. >> quentin that is part of the story. are we moving towards a nationalized home market? >> no, we are not. those who say that fannie and freddie have destroyed or socialized would have to explain what cry wide had in this? why they weren't in the risky mortgages until 2007 they came late, they didn't start the problem. if we are guaranteeing a lot of mortgages now, how come when we foreclose those things go to the banks not the gearan fors? the guarantees don't matter. -- >> quinn brings up countryside. -- countrywide, now as a result of that bill written by chris dodd the 300 billion dollar housing bill, a friend of countrywide. >> obviously chris dodd and his friends failed to include fannie and freddie. while they put regulations on private market they let their friends off the hoo

. >>> aig giving mor more more ofr %-it's making a deal to ay back the money it ggt from taxpayers. >n products. sometime items re caused injury. that is businesss %-⌞>>>coming up more han 24 hoú of rain in aayland. gee a s+Ñé blue diamond almonds! more bold flavor! more variety! more value! more of what you want... not what you don't. blue diamond almonds. (play-by-play announcer) it's up and it is... good! more than a snack.

john mccain's >> no taxes for aig. you voted against bonuses for veterans fighting in iraq. tell us why that 300 million for taxes should be give tone small businesses. >> pentagon spending, are you satisfied and what would you change specifically if you are elected and have a shot at it up there. the warfare program. i had to balance that budget. the navy is building things wrong. we need to know we have been allowed in this. i stood up in the navy. we have to stop that program. if we have the knowledge of where bin laden is. another ship at sea, that's the case that will help us. the most senior officer ever to help us to make sure we do things right one of the things my dad said to me, when we ask someone to go into harms way, we need to make sure they have all that they need to get the job done. the fact is, there is waste. part of the so often on things she spent her money on. stripping out the wasteful remarks including $2 million for charlie wrenning will's monument to himself. jo she slashed the veterans calling it waste a bit over poverty and kicked out over wash. n

and foremost -- and the president was briefed on this at the economic briefing yesterday, andg with aig and tarp, that is that we have met the legal deadlines that were set out in the law. we have met our own deadlines for insuring that the money it that was appropriated has gotten into the economy. createion track to the jobs. we have said that. cbo has said that. we are going to discuss a little bit about what the recovery act has meant to increase economic growth and job growth and two other things. one, i think the number was 0.2% of -- if you look of the number of projects and number of complaints, it is 0.2%. i do not think that amount of funding has ever been spent with less complaint than what you are seeing. i think there is a practical impact as well in what you're seeing the republicans proposed in their pledge. it guarantees rolling back what is left to be spent in the recovery act. it will stop important projects dead in their tracks like clean energy projects. it will stop tax relief for 110 million americans. for people that talk about not wanting to raise taxes, that is

is not out of the question. >> we expect to possibly make a profit out of aig. >> reporter: a profit this is a different company with better prospects and it has shed the huge risks for instance in the financial products department that it had a year and a half ago or so. >> reporter: while many economists believe that t.a.r.p. was necessary to keep the financial system from collapsing, not all believe that the money was used properly. economist peter morici is not claiming victory. >> 10,000 of the regional banks are on the fdic watch list and 270 or so have fail and many of the regional banks upon which small businesses rely can't make loans. the t.a.r.p. aided wall street a lot, and main street didn't get much. >> wolf, another thing that critics worry about without a price tag is that among the large banks, they believe they can be bailed out again in the future. another thing in the treasury report, it says that outside of t.a.r.p., it expects substantial losses from freddie mie mac and fannie mae. >>> and donald trump speaks out of whether -- get this, he aims to run for presid

even aig is being sold off at what could end up being a profit. the congressional budget office recently estimated that t.a.r.p. will cost taxpayers only $66 billion. the white house says just $50 billion. but some calculate the program could even turn a profit. most economists believe the bailouts prevented a worse recession. maybe even a depression. but many voters are furious that bank bonuses are flowing again on wall street while main street is still flounders. others see it as a symptom of big government run amuck. that is helping to stoke the tea party movement and toppled some republican incumbents who voted for bailouts two years ago. and now it's become an issue in the mid-term election. we want to bring in rick klein for his weekly political insights. rick, t.a.r.p. and bailout have become dirty words lately. how this is likely to factor in the midterm elections? >> there will be no t.a.r.p. bounce, regardless of information that comes out about this. voters have largely renders judgment on t.a.r.p. they associate it with stimulus, bail

they were getting money to aig and directly from the federal government. that told me then, i always will remember that. these are some really slick, crooked people. host: mr. obama used the question to whach him -- host: going to a call from florida. caller: i do pressure show. i think main street has been beating up on wall street. i'm a republican. one of the things we have to remember is that wall street is one of the main sources for creating jobs in america. we need to not overreact -- the things that move the economy. we have to have a balanced approach to government and wall street. you can't tax the machine that creates jobs and regulations. things have swung way too over for social and bail outs for unions and government employees. all of that has to be looked at together so we have a balanced approach to creating jobs. >> we have this twitter message from coco chef, saying he needs to get out of the kitchen if he can't take the heat. host: to the line for democrats go ahead. caller: i think it is the opposite. wall street has been beating up on

controls turning programs into contribution plans, selling off fannie mae, freddie mac, selling off gp, aigcan bring the fiscal situation back into control quickly. you will get such economic growth you will have huge increases in revenue. we can really change america and make it back into the dream that we all really hope it will be. we can do that john: i hope he's right. that's our program and the battle for the future. i'm john stossel >> good morning, everyone. monday, october 25, 2010. thank you for sharing your time with us today. eight days to decide and leaders from both parties say they have the right strategy to win and they may need it. 1/3 of voters are still up for grabs. wow. we're live in washington. >> we're live here with new music and animation. meanwhile, p

the best scenario that aig paying back $49 million. if that happens not only will t.a.r.p.imagined it would. if that happens the program almost paid for itself, did pay for itself or conceivably even made a profit. oh, and by the way, it worked. how can you tell? well, have you used an atm recently? did you go to the atm today full of confidence that not only whatever money you had would happen to be there and that you have a bank to go to. thanks, t.a.r.p. those banks too big to fail. oh, god, i hate they were too big to fail. you know what, it worked. they didn't fail. the stimulus, the obama administration wanted to save 3.5 million jobs. the congressional budget office said they are on track to save or create 3.5 million jobs. does any of this mean the economy doesn't suck? no, it still sucks. does this mean what the administration is doing on the economy is work sng take a look at this. this is a way to explain it. the gross domestic product declined in the last quarter of 2008 before obama took office. this is the first quarter of 2009. it's getting better. the line t

controls turning programs into contribution plans, selling off fannie mae, freddie mac, selling off gp, aig bring the fiscal situation back into control quickly. you will get such economic growth you will have huge increases in revenue. we can really change america and make it back into the dream that we all really hope it will be. we can do that john: i hope he's right. that's our program and the battle for the future. i'm john stossel [ dr. banholzer ] every once in awhile there's a moment where everything comes together. where there's magic. and you now understand what nature's been hiding. ♪ at dow we understand the difference between innovation and invention. invention is important. it's the beginning. it's the spark. but innovation is where we actually create value for dow, for society, and for the world. ♪ at dow, we're constantly searching for how to use our fundamental knowledge of chemistry to solve these difficult problems. science is definitive. there is a right answer out there. [ male announcer ] the same 117 elemes do the fundamental wk of chemistry. ♪ the difference, the one

packaging it up and getting insurance because it was a bunch of junk to begin with and then we bail out aig. whether it's our jobs and our economy. whether it's grading us on credit scores they have decimated and then they went out in the world and spread this scourge. mortgage-backed securities is the wrong waste. there's no mortgages backing these securities. they didn't put them in. i think we should call them malicious bankers with syphillis. we need to take our medicine. these bankers need to be taken out. >> are you surprised, a year into this, and if you're free at 4:00, i may want to take a couple of days off. you seem to have a good handle on this situation. we'll be in touch. if you look at the government's failure to respond, failure to investigate, effort to cover it up, the language from our president, the t.a.r.p. lie, tim geithner with one lie after the other, how many longer do you think the federal government can get away with lying and covering it up before it blows up. >> right. well, you ask an excellent question. i believe we are at a critical point. it's amazing we are

border, why a surfer who hauled him in sees there was no way he could save his life -- a body boarder. aig for different results. i've built businesses. i've built a business. met the payroll. met a payroll. i enter this office beholden to no one except you. i will owe my office to no one but you. i don't owe anyone anything. i don't owe anyone anything. it's all about leadership. this is all about leadership. jobs, jobs, jobs. jobs, jobs, jobs. we do not have a revenue problem. we do not have a revenue problem. we have a spending problem. we have a spending problem. rebuiling california. build a new california rebuild california. let's build a new california. we need to run the state as a business. running this thing a little bit more like a business. whats the worst that could happen? whats the worst thing that could happen? >>> major devastation tonight after a fire at a mall. it is believed that a man with mental issues started that fire. and tonight we're learning that 20 stores in that mall were destroyed and the damage right now is estimated at $6.5 million. also tonight we're learn

controls turning programs into contribution plans, selling off fannie mae, freddie mac, selling off gp, aigfiscal situation back into control quickly. you will get such economic growth you will have huge increases in revenue. we can really change america and make it back into the dream that we all really hope it will be. we can do that john: i hope he's right. that's our program and the battle for the future. i'm john stossel, good night. [ advisor 1 ] what do you see yourself doing one week, one month, five years after you do retire? ♪ client comes in and they have a box. and inside that box is their financial life. people wake up and realize i better start doing something. we open up that box. we organize it. and we make decisions. we really are here to help you. they look back and think, "wow. i never thought i could do this." but we've actually done it. [ male announcer ] visit ameriprise.com and put a confident retirement more within reach. ♪ i like your messy hair ♪ i like the clothes you wear ♪ i like the way you sing ♪ and when you dance with me ♪ you always make me smile [ male ann

. >> aig week here. >> reporter: tomorrow all four lane of northbound i-495 will shift left over route 123. once drivers cross chn bridge, they'll shift back to the right to tie in with the existing beltway. >> we were here several months ago to take down the 49 south bridge over 123. we're back. >> reporter: demolishing the bridge will shut it down under the beltway from friday night through early monday morning. several ramps around the bridge project will be shut down temporarily. but this ramp that leads on to 495 north will b shut down for nearly two years. that means drivers will have to make a left at this temporary traffic light instead. virginia's department of transportation insists it is all in the nail of progress. right now you have two primary entrances. route 7 and route 123. by late 2012 when the hot lanes project is finished, there will be two new entrances which should help ease ngestion. found out drivers will have to deal with sothing else. they're called dynamic tolls. the new hot lane drivers will pay based on the time of day and the number of cars on the road. so

aig is giving more of your money back. the bailed out insurance company making a deal with the government to pay back a lot of the $182 billion it received from taxpayers. that's business. i'm neil cavuto. ich ceys  >>> this fox 5 stock market report is brought to you by your lexus dealer. live life heroically. >>> a fox 5 consumer alert, fisher-price recalling more than 11 million tricycles, toys and high chairs. on the trike a plastic key sticks out. the little people wheelies ramp and play is being recalled because the wheels can come off the cars posing a choking hazards. high chairs and another toy being recalled, we've got all the details on www.myfoxdc.com. click on consumer under the money tab. >>> an exciting discovery, 120 trillion miles away. two astronomers including one who works in the district found a new earthlike planet. it is in what's called the goldilocks zone which means the planet is far enough from the red dwarf star it's noting that it could contain -- orbiting that it could conta

the best case scenario has aig paying back all of the remaining $49 billion that it still owes the governmenthappens not only will t.a.r.p. have cost far less than anyone imagined it would. if that happens, the program almost paid for itself, did pay for itself or conceivably made a profit. by the way, it worked. how can you tell? well, have you used an at 346789 recently? did you go to the atm with full confidence that not only whatever money you happened to have would be there but you still have an account as well as a bank to go to? thanks, t.a.r.p. those banks that were too big to fail, oh, god i hate they're too big to fail. they didn't fail. they worked, as did the stimulus. the obama administration said it wanted to save or create 3.5 million jobs. the congressional budget office says it is on track to save or create 3.5 million jobs. it worked. does any of this meanle economy still doesn't suck? no. the economy still sucks. but what the administration has been doing on the economy is working. take a look at this. this is from the "new york times." this is how much the gross domestic p

you, for starters, it turns out that the pledge was actually written in part by a former lobbyist for aig and exxon mobil. that should tell you something right there. you can't make that stuff up. and the centerpiece of the pledge is a $700 billion tax cut that would only go to the top 2%, the wealthiest 2% of americans. 98% of you would not get this tax cut, but they would borrow $700 billion from the chinese or from the saudis or somebody. that's their big idea to get the economy moving again. these are the same folks who lecture us on fiscal responsibility. but now they want to borrow $700 billion to give a tax cut worth an average of $100,000 to millionaires and billionaires. when you ask them where are you going to get the money? they say, well, we don't have it. but mostly they'll borrow it from other countries and just to pay for a small part of it, they want to cut education by 20%. they would reduce financial aid for 8 million college students. now, philadelphia, at a time when the education of our country's citizens is one of the most important things for economic success, the n

it helped, of course, save big banks, automakers and the insurance giant aig.uld cost taxpayers $66 billion. meanwhile, the obama administration says just 50 billion. some say t.a.r.p. may even turn a profit. >>> verizon wireless is beginning one of the largest ever customer refunds by any telecom company that could cost $90 million after complaints about web and data use overcharges. 15 million can expect refunds or credits. not much, between $2 and $6. they will continue to investigate verizon to see why it took so long to agree to repayments. more penalties are still possible. >>> the story this morning that will perk your ears up a little bit. the largest survey about sex in the u.s. in 16 years has just been released. 6,000 people responded, and here are some of the findings. 79% of teen males use condoms. 41 different sex acts were described in the survey. 33% of women admit experiencing pain during sex. researchers describe the report as normal. perhaps that is a good sign. any reaction to that? >> let's get to your weather now. the west gets wet with th

in some ways organized recovery for aig might have worked but their bankruptcy the reason they didn't do it was it was a pass through for goldman sachs executives. >> something that's coming. part of the tarp is treasury is off the rise to spent 50 billion in a program that pays services and borrowers to modify mortgages to keep their home. deserving borrowers. should the government spend that? doctor paul? >> i think the tarp funds left should go to restore the deficit and try to pay-off debt. i think the tarp fund. the 800 billion should have never been spent. the president barack obama stimulus policy should what have not been spent. i think we should go back to offset the deficit. >> but the 50 billion dollars. won't that create a number of housing problems across the nation and people that might deserve to be in their homes will be out? >> that was created by bad government policy that kept the interest below the market rate and stimulateed a bubble beyond what would have normally happened, and stimulateed by the community reinvestment about that said buy a house without a down p

. >>> and wth wale a tkingutbo t rain and cndud bs aig winds as well. the weekend forecast is coming up, and it's a rainy one. >>> thank you, jennifer. and one of the most legendary musical teams in the world play in the bay area this weekend. elton john leads a star-studded line-up for the bridge school benefit at the shoreline amphitheater tomorrow and sunday. pearl jam, modest mouse, and elvis costello will also play. you can still buy lawn tickets for about 5 ♪ and ♪ and this one's for you t >>> right now on nbcbayarea.com fans rally to save aay area bar. learn who stepped up to save the tonga room. >>> san francisco's notorious exotic erotic ball and expo is cancelled just one day before it was supposed to open at richmond's waterfront tomorrow night. this got moved. promoters describe the two-day event as part mardi gras, part burlesque and part rock concert. they're blaming low ticket sales sxan unexpected cost for the cancellation. organizers aren't saying just how many tickets they have sold, but buyers will receive a refund by following their

we talked about -- you said, look, go to this goldman sachs, go to this aig issue, this is where theexus of the evil empire lives. he told us -- it shocked me. i sat there stunned. i remember that afternoon. it hadn't been in the newspapers. he said, goldman is shorting its own clients, they're going long and short in the subprime narcotic. the concept had never crossed my mind. >> you never -- >> you investigated wall street excessively and did a great job. >> back to the movie. >> we wouldn't be here where we are now. it would have been a different ball game. >> is eliot spitzer a movie? >> got to make enemies in politics and he proved that. >> i want to go back to fdr. fdr had a difficult moment two years into his presidency as barack obama has. he doubled down. he instead of veering back the way bill clinton did, instead of saying let's compromise, he said, i believe in these principles and he went after the al garks in a different way. would that have worked in this moment? >> there was a moment in time when obama had the -- the electorate was sizzling with -- even the republica

talk a little bit about aig. it was reported that they receive some sort of special consideration. they were not based on the value of the stock, b at some relative of that stock. is that the case? and if so, why? >> i do not believe so. that was proposed. we ted to work something out with the suggestion that the common stock was not worth enough' to are appropriately compensate top officials, but we worked out a compromise with the federal reserve's ,aig, pompous of financial stability. it turned out that that ended the day they did agree that the common stock under our formula would be appropriately used as a compensation device. >> the $500,000 line in the sand. you said you try to come up with a competitive amount. where did that come from? >> it was not a line in the sand, we allowed variations. we concluded, based on the packages that were submitted to us, based on evidence we took on our own it anecdotally, empirical evidence we took on our own, and also our sense of what congress and treasury intended in the statutes and regulations, at the end of the day, we exercise our d

the treasury department did not need to pay off the big banks 100 cents on the dollar on the aig creditdefault swaps that they had bought, and that was one of the sort of under the rug ways to bail out the banks. it shouldn't have happened. but put that aside right now. the question that i care about and i think all americans care about, will you have the freedom you need to create the agency that's going to protect the american middle class? >> so i had a lot of conversations with the president of the united states before he finally asked me to do this particular job, and i am convinced, first of all, that he wants a strong agency and, secondly, that he put enough tools in front of me to start a strong agency. >> tools that are in the statute? >> that's right. >> just so it's clear. >> and i think some people are concerned about those tools. let me just ask about the confirmation process itself. >> sure. >> because the president bypassed that and appointed you, there's some question -- you know, a lot of people have normal questions about the transparency aspect of this new position. i

you, for starters, it turns out that the pledge was actually written in part by a former lobbyist for aigshould tell you something right there. you can't make that stuff up. and the centerpiece of the pledge is a $700 billion tax cut that would only go to the top 2 percent, the wealthiest 2 percent of americans. ninety-eight percent of you would not get this tax cut, but they would borrow $700 billion from the chinese or from the saudis or somebody. that's their big idea to get the economy moving again. these are the same folks who lecture us on fiscal responsibility, but now they want to borrow $700 billion to give a tax cut worth an average of $100,000 to millionaires and billionaires. when you ask them, where are you going to get the money, they say, well, we don't have it. but mostly, they're going to borrow it from other countries. and just to pay for a small part of it, they want to cut education by 20 percent. >> boo! >> they would reduce financial aid for 8 million college students. >> boo! >> now, philadelphia, at a time when the education of our country's citizens is one of the

in some ways, organized bankruptcy for aig might have been a better way to go.ank erupted -- bankruptcy, it became a pastor for goldman sachs executives. -- a passed through it for goldman sachs executives. >> the treasury is still authorized to spend $50 billion. it pays services and borrowers to modified mortgages in an effort to keep their homes. should the government be spending tax dollars in an effort to keep borrowers in their homes? >> i think that the tarp funds that are left should go to restoring the deficit and trying to pay off debts. the entire $800 billion should never have been spent. president obama stimulus package should never have been spent. i would vote for any unused funds to go back to try to offset the deficit. >> on this tarp plan, the $50 billion, will that create a number of housing problems across the nation? >> the housing problem was created by bad government policy. it was created by government policy that kept the interest rate at 0%. it also stimulated by the community reinvestment act that said to people, it is a good idea to b

in some ways, organized bankruptcy for aig might have been a better way to go. aig bank erupted -- bankruptcy, it became a pastor for goldman sachs executives. -- a passed through it for goldman sachs executives. >> the treasury is still authorized to spend $50 billion. it pays services and borrowers to modified mortgages in an effort to keep their homes. should the government be spending tax dollars in an effort to keep borrowers in their homes? >> i think that the tarp funds that are left should go to restoring the deficit and trying to pay off debts. the entire $800 billion should never have been spent. president obama stimulus package should never have been spent. i would vote for any unused funds to go back to try to offset the deficit. >> on this tarp plan, the $50 billion, will that create a number of housing problems across the nation? >> the housing problem was created by bad government policy. it was created by government policy that kept the interest rate at 0%. it also stimulated by the community reinvestment act that said to people, it is a good ide

they were getting money to aig and directly from the federal government.t told me then, i always will remember that. these are some really slick, crooked people. host: mr. obama used the question to whach him -- you give people a chance to say their peace. i appreciate that about c-span. there's so many shows that interrupt and i do appreciate that. i think main street has been beating up and one of the things we have to remember is wall street is one of the main engines for our economy. it's one of the main sources for creating jobs in america. and one of the things that we need to do is not overreact to something that happened by, it's like taking the very thing that creates your economy and then not overtaxing it and overburdning it with regulation and then saying why aren't any jobs being created. the thing is we have to have a balanced approach to government and wall street. you can't tax the machine that creates jobs by taxes and regulation and then expect it to create jobs. i think the pendulum has swung way too over for social and bailouts by -- fo