>> i spoke with alan blinder about that.is a former vice chairman of the federal reserve and currently an economics professor at princeton university. first i asked him how the obama stimulus packages will help americans. >> well, i'm sure we're going to see more jobs. some, for example, i mentioned the payroll tax. some substantial amount of that 120 billion is going to be spent on consumer items. there will be some investment stimulus on business equipment items. and that will lead to some jobs. now, housing has been dead in the water in our country for some time now, and i wouldn't bet on a big revival this year. >> professor, what more do you think the fed can do? >> for example, i have been urging the federal reserve -- they're not listening to me, but i've been urging them to routes interest rate it pays banks to hold idle reserves to zero at least or preferably to actually go negative, start charging them a service fee for holding them. the fed is paying them 1/4 of a percent annualized as an interest rate. which is v

. >> a couple months ago i interviewed alan blinder. he's a princeton democratic adviser. he's generally considereded a moderate. we he said we needs to recognize that we're in a jobs crisis and we're going to be for a long time. we ought to think about direct government hiring. new deal kind of stuff. is that crazy talk? could it make sense? >> well, i don't know that having federal programs aimed at hiring is the way to go and i'm probably not qualified to talk about that. >> is it a good way to go, direct government hiring? >> i think it's important. because, again, a look from our point of view in los angeles, from southern california, los angeles has about 600,000 small businesses. that's probably more than any large group of states put together. in the last years we've lost over a quarter of them. and if you look at the desperation of these kinds of businesses, sales is critical. people need to have money in their pockets to buy from their local retailers. without it, a lot of people are going under. so i think that is very much a part of the stimulus package. what's

a couple months ago i interviewed alan blinder who used to advise president clinton, democratic economist obviously. he said we need to recognize -- he's generally considered a moderate. we need to recognize the jobs crisis and we are going to be in a crisis some period of time because it is going to be slow so we ought to think about your lack of our hiring, new deal kind of stuff. is that crazy talk? could it make sense? >> i want no -- i don't know that cutting federal programs aimed at hi zearing is the way to go and i'm probably not qualified -- >> is it a good way to go? you? >> i think it's important because again, from our point of view in los angeles and southern california, los angeles has about 600,000 small businesses, that's more than any large group of states put together. in the last years we've lost over a quarter of them and if you look at the desperation of these businesses it is critical. people need to have money in their pockets to buy from the local retailers. without we will see a flood of people but or going under. so, i think that is very much part of the stimulus

. >> i interviewed alan blinder who is at princeton, democratic economist. he said we need to recognize -- he's considered a moderate. we need to recognize what a jobs crisis and we're going to be in that crisis for something a time because it's going to be very slow out of that hole. we are to think about direct government hiring. you know, new deal kind of stuff. is that crazy talk? could it make sense to? >> well, i don't know that having federal programs aimed at hiring is the way to go. i'm probably not qualified to talk about that. >> is it a good way to go, direct government hiring? >> i think it's important because again, look from our point of view in los angeles, southern california. los angeles has about 600,000 small businesses. that's probably more than any large group of states put together. the last few years we've lost over a quarter of them, and if you look at the desperation of these kinds of businesses, sales is critical. people need of money in their pocket to buy from their local retailers. we are seeing a flood of people that are going

respected economists in the country, mark zandi who is a consultant to the mccain campaign, and alan blinder, a former deputy chairman of the federal reserve, did an analysis that measure the impact of federal actions, the t.a.r.p. stimulus, and also included the fed's monetary policy actions. and they concluded as follows. we find that its effects on real gdp, jobs and inflation, are huge. and probably a bird what could have been called great depression 2.0. when all is said and done the financial and fiscal policies will have cost taxpayers a substantial sum. but not nearly as much as most had feared, and not nearly as much as if policymakers have not acted at all. if the comprehensive policy responses say the economy from another depression as we estimate, they were well worth the cost. this next chart shows doctor blinder and dr. 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 p

respected economists in the country, mark zandi who is a consultant to the mccain campaign, and alan blindery chairman of the federal reserve, did an analysis that measure the impact of federal actions, the t.a.r.p. stimulus, and also included the fed's monetary policy actions. and they concluded as follows. we find that its effects on real gdp, jobs and inflation, are huge. and probably a bird what could have been called great depression 2.0. when all is said and done the financial and fiscal policies will have cost taxpayers a substantial sum. but not nearly as much as most had feared, and not nearly as much as if policymakers have not acted at all. if the comprehensive policy responses say the economy from another depression as we estimate, they were well worth the cost. this next chart shows doctor blinder and dr. 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

two of the most respected economists in the country, mark and alan blinder did an analysis that message -- measure the impact of tarp and stimulus and included the fed's monetary policy actions and they concluded, as follows -- we find that if the affects on real gdp, jobs and inflation are huge. it probably averted what could have been called the great depression 2.0. when all is said and done, the fiscal policies will cost taxpayers a substantial sum. but not nearly as much as most had feared and not nearly as much as if policy makers had not acted at all. if the comprehensive policy response say to the economy from another depression as we estimate, they were well worth the cost. this next chart shows dr. linder and dr. 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

. >> i interviewed alan blinder very used to advise president clinton.u say we need to recognize when a jobs crisis and we're going to be in a crisis for some good a time because it will be very slow out of this hole. we i do think about direct government hiring. unit, new deal kind of stuff. is that crazy talk? could it make sense of? >> i don't know that having federal programs aimed at hiring is the way to go. i'm probably not qualified to talk -- >> does anyone think that is a good way to go, direct government hiring? >> i think it is important because from our point of view in los angeles, southern california, los angeles has about 600,000 turn 13, probably more than any large group of states put together. we have lost over a quarter of them. if you look at the desperation of these kinds of businesses, sales is critical. people need to have money in their pocket to buy from their local retailers. without it we are still seeing a flood of people that are going under. so i think that is very much a part of the stennis package. what's important to note

respected economists in the country, mark zandi who is a consultant to the mccain campaign, and alan blinderformer deputy chairman of the federal reserve, did an analysis that measure the impact of federal actions, the t.a.r.p. stimulus, and also included the fed's monetary policy actions. and they concluded as follows. we find that its effects on real gdp, jobs and inflation, are huge. and probably a bird what could have been called great depression 2.0. when all is said and done the financial and fiscal policies will have cost taxpayers a substantial sum. but not nearly as much as most had feared, and not nearly as much as if policymakers have not acted at all. if the comprehensive policy responses say the economy from another depression as we estimate, they were well worth the cost. this next chart shows doctor blinder and dr. 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 pictu