thank you so much. >> i would say if ever we needed an economist today is the day we need an economist. i felt in the last few weeks we needed to go back to school to take courses in economics to try to understand what is happening. do we need to raise the debt ceiling? what is going on in washington? since you have a keen eye and understanding of what they're doing what is happening exactly at what is your prediction of the outcome? >> we have to raise the debt ceiling. we can't default internationally on our obligations. it is fascinating that the debt ceiling has been raised probably 70 times in the last 30 years. why does it sadly become an issue when the president is barack obama? the answer is because people have issues. they are angry. we are attempting to set perimeters around what is happening with the economy. here is what we know for sure. everyone in this audience. is there anyone here who has not experienced economic hardship or know someone who has? the unemployment rate is 9.2% overall. it is 16% for african-americans. real unemployment rate for us is 28%. one in three a

i am not an economist. it is a ponzi scheme. people are paying in to support the people who previously paid and but there isn't enough coming in so it will collapse like every ponzi scheme does. it is not meant to be a ponzi scheme. ponzi was a good guy. he just got messed up. he had to keep collecting money to pay the other people who paid in earlier. he didn't mean that. ponzi turns out to have been somewhat of a st.. i am not kidding. he heard of a girl who was an of fire and he gave his own skin for her skin graft. a total stranger. ponzi is the quintessential liberal. he means well and create something destructive. that is what liberalism is. means well and destroys. doesn't mean to destroy. but remember, one of my modest means being left means never having to say you are sorry. number 3. one more word about number 2. california is broke. it is not only broke. it is broken. liberals broke it. nobody can argue. and no one with a fifth shred of commitment to honesty can argue conservatives broke calif.. liberal policies in a

>> i believe he is an excellent economist and dynamic economist with a lot of experience and will be an important member of the economic team. >> on the president's job speech, he shared with us that it will be next week. what date will it be? >> we do not have a date to announce. i will repeat what the president said, that you can expect it next week. i don't have a date or location to give to you today. >> what is the reason for not telling us what is going to be? >> it could be that we have not finally decided. when we have an announcement, we will make it. >> debate? >> no debate. figuring out the best time and location. >> you don't know when -- >> actually, the decision has not been finally made. >> jay, does the white house at any more information or ideas on -- [unintelligible] >> we have no indication he has left libya. we are obviously working with thae tnc and our nato partners on that, but if we knew where he was, we would pass that information along to the opposition forces. >> well the white house and united states government asked the rebels -- >> exhibition issues are

just that for more on the economic effects of this deal i'm joined by professor susan feinberg economist an associate professor at rutgers business school because fiber welcome thanks for having you thanks thanks for joining us as an economist what's your take on this. well i think it's hard to view this is purely economic because as your previous guest mentioned there's a lot of politics in this is well you know our ability to keep spending money is contingent on our ability to borrow and i would suggest that with this high of debt as we actually have it's contingent on our ability to borrow it very favorable interest rates and so even if there were a loss of confidence or a downgrade for the u.s. if interest rates went up that could have the same effect as doing nothing because it is as soon as we start to pay a higher percent of the revenues that we have coming in in interest payments that will have the same contractionary effects are not the same but will also potentially have a terrible contractionary effect so given the fix that we're in as far as how much step that we have we don't h

now, look, i'm not an economist, but i do have one area of expertise that i believe i can refute speaker boehner on. >> here's what we got for that massive spending binge. a new health care bill that most americans never asked for. a stimulus bill that's more effective in producing material for late-night comedians than it was in producing jobs. (audience reacts). >> jon: no, that is so true! that is so true! 125 that stimulus bill gave us so much material. here's another stimulus humdinger i came up with this morning while i was listening to bloomberg radio. "hey, how about this manufacturing sector with underutilized capacity, huh? am i right? i don't know if we're stimulating demand through increased credit availability or just cutting losses due to inventory drawdowns" boom! boom! (laughter) are you kidding me, boehner? you think comedians enjoy fiscal incompetence and bureaucratic paralysis? let me show you something. see this right here? (laughter) the guy in the tiger costume is congressman david wu of oregon. apparently he resigned today because of inappropriate sexual contact to

this was an economist who supported president obama. is this a problem for the president now on vacation? >> well, this is o obviously a very difficult time for the country and you don't need to be an economist to figure out that middle class families are struggling. when came to office, 700,000 jobs a month were are being shed from the economy. right now in this recovery we have seen 2.3 million jobs added to the recovery. the president has done things to help the economy grow as opposed to shrink. but he would be the first to tell you that he is not satisfied with the progress. i tell you what, he has not had a lot of willing partners in the republican party to move forward and jobs legislation. >> bret: why not put out the plan before the ten day vacation? >> i don't know that there is a fair minded person in the country who doesn't think that the president shouldn't go and spend a couple of days on vacation before his girls go back to school. most americans don't need to see bickering. what they need to see is lawmakers going back h

bernanke is not an economist.his idea of advocating interest rates -- excuse me, inflation, increasing to 4% to 6%, sheer stupidity. the interest rates should not have been at the 0.5 -- 0.25% for these years. it should have been a 1.5%. that is not going to kill business. it is absolutely going to not. what he is advocating is absolutely wrong, wrong, wrong. when you have inflation like this, it is beyond belief. host: we have several comments on our facebook page. here is vance. here is a tweet. if you want to send us a tweet, go to twitter. johnny, a democrat in an albany, georgia, go ahead. caller: i think this is a good thing for the interest rates. can you hear me? host: i am listening. caller: it what allows stocks, people will be buying more more likely, because money will be freed up in the banks will be able to support -- people will be buying houses and that will help construction. i think it would help create jobs. not to help people who are saving money make more money on their bank and help the bank

is broadcast what it says was footage of colonel gadhafi some economists visiting people wounded in an air attack east of tripoli if genuine it would be the first visual proof that he is still alive after rebels claimed he'd been killed in a nato air strike last week libya's government has also accused the an answer of killing at least eighty five civilians in the west of the country nato says the targets were military meanwhile the head of libya's rebel movement has sacked the entire executive committee which functions as a cabinet. assassination of the commander of the opposition forces last month author and blogger steven lemmon says it's obvious there's no agreement between the rebels and nato he's using civilian deaths as part of its war strategy. the rebel camp is in disarray need he's a keeper of committee he was there. they were unconfirmed reports that the rebel was in such disarray that they were literally contesting imo each other some people call it the stay only others we need always last is the last of all we need is going to win this one little terror but they certainly

thank you so much. >> i would say if ever we needed an economist today is the day we need an economist i felt in the last few weeks we needed to go back to school to take courses in economics to try to understand what is happening. do we need to raise the debt ceiling? what is going on in washington? since you have a keen eye and understanding of what they're doing what is happening exactly at what is your prediction of the outcome? >> we have to raise the debt ceiling. we can't default internationally on our obligations. it is fascinating that the debt ceiling has been raised probably 70 times in the last 30 years. why does it sadly become an issue when the president is barack obama? the answer is because people have issues. they are angry. we are attempting to set perimeters around what is happening with the economy. here is what we know for sure. everyone in this audience. is there anyone here who has not experienced economic hardship or know someone who has? the unemployment rate is 9.2% overall. it is 16% for african-americans. real unemployment rate for us is 28%. one in three am

>>as an economist, i think, you have to change the incentive. china has to raise energy price; has to raise environmental tax and has to raise resource tax. so that that economic incentive will guide people shifting away from energy intensive industries. >>china's government now faces a difficult stage of its low carbon strategy. it's one thing to plough billions into a new green industry; but it's another to start making the polluter pay. >>reporter: tourism is one of egypt's main sources of income, with millions of people dependent on it for their livelihood. inevitably the fallout from january's revolution has had a severe impact on business. so how is the country coping? and what is it doing to persuade the tourists to return? >>reporter: if you've ever wanted to see the pyramids, this might just be the right time. normally, even in summer, you'd have to make your way to them through crowds of tourists, tour buses, guides and hawkers. not now. since the revolution there's been a steep decline in the number of tourists - more even than follow

in nominating alan krueger, president obama gained an economist with expertise on employment. he is a former treasury department official and princeton university economist. more from the white house would today's briefing would press secretary. he was joined by fema administrator on response to hurricane i've been. -- irene. >> welcome to the white house, everyone. this is your daily briefing. for those of you who were at martha's vineyard last week or on vacation, welcome back. that includes me. for those of you who were here, my condolences. before i get started on taking questions on other issues, i have with me today the administrator of the federal emergency management agency, craig fugate. as you know, mr. fugate has extensive emergency management experience. he was the former director of the florida division of emergency management, appointed to that position in 2001 by then governor jeb bush, and then later reappointed by governor bush's successor, charlie crist. he held that position until president obama asked him to lead fema. he is here to take your questions and g

and so what do you think as an economist about the idea that there are too many people in the world andwhat do we do? thank you. >> thank you. well, that's a very serious question. well, first of all, i do not think it right to say that technology makes it impossible to create jobs. i mean, once again, this is something that people routinely believe because they think that jobs have to be created only through profit-seeking firms. but, i mean, there are lots of jobs that we can create by providing better social services and then by putting in regulation that require more kind of labor input. you know, how do american service, retail service companies make money, yeah? by, basically, not hiring people and making things very inconvenient for the consumers. you know, in japan, korea, yes, i mean, by american standard you have all employment in the sector. but this is actually with good for the consumer because you go to the shoe store, someone will be with you within one minute, yeah? here you have to take a ticket, yeah, wait for 20 minutes, yeah? and they don't even bother. so, actually,

an economist with the independent think tank european based in london he believes that bailing out italy would prove an impossible feat for the eurozone. if you look at the size of the eurozone financial stability facility tops out four hundred forty billion the current debt market for its year alone is one point six trillion euros so even if they try to use this fund to buy up some italian bonds or provide some proof cautionary lines of credit new new additional measures that were agreed on the second greek bailout it's not clear how much difference they would really make given the size of the italian economy and size of the bond market once the bond market turns against the italian economy which it looks to be at the moment the costs keep spiraling out of control and it's only a matter of time until they become unsustainable really unfortunately we have a race to the bottom here spain does have very large boring costs as well and a large amount of refinancing coming up over the next year and the borrowing costs are increasing slightly quicker than italy also has bigger internal problem

well for more on what's facing italy we can now talk he's an economist with the independent think tank open in europe joining us live now in london thanks very much for being with us here on r.t. well as we just heard silvio berlusconi hasn't asked for a bailout yet but has he succeeded in calming investors today or do you think a rescue package is inevitable. well i don't think you'll succeed in calming investors but i don't think a bailout will be forthcoming in their future either simply because italy is far too large to be bailed out by the current mechanisms in place in the euro zone i think that if the cancer avoids rising borrowing costs for the short term maybe six months to a year given the size of its economy but in the long term or it will make its debt unsustainable and increase its cost significantly and more importantly will undo the savings that it's making with its its new austerity budget ceasing settings really is a problem there's also you say italy is too large to be bailed out in other words are you saying that the e.u. simply couldn't afford to bail it out. well w

we're going to continue on this rollercoaster is that a a reasonable statement in english of how an economist would would say. absolutely but add one thing for thirty years the real wages of american workers have not been raised average hour of work adjusted for the prices you pay gets you about what you got in one thousand seventy eight today if you create a working class that has no improvement for thirty years and which holds on to the american dream only by borrowing until they literally can't anymore you come to the end of the rope you can't afford to pile what you need and you can't borrow any more and until that fundamental problem is changed in this country we're going to see a crisis that lasts and deepens and frustrates the efforts to get around it in some easy way we have to deal with a system that is broken politically as well as economically and until we do it's going to bite us and hurt us in ways that we have not experienced for decades in the united states so what should be those fixes the hero what specifically should congressman present for you and first and foremost jobs yo

invented the phrase supply side economics in the late seventy's it wasn't for economics he wasn't an economist it was purple a little positioning it was a way to sell to the american people the idea that it was ok to hand a bunch of tax dollars collected from working people or borrowed from overseas to the multi-millionaires who were were and are the main funders of the republican party. this is impressive crowd the haves and the have horse. some people call you the elite. i call you my base. so i say it's time to stop taking advice and gretchen carlson brian kilmeade and socialist obsession are growing over box so-called news and start taking our economic advice wasn't learned in history lessons learned from the great depression when franklin roosevelt help poor people get back on their feet again by stimulating the economy and took on employment from over twenty five percent to fourteen percent in just three short years we need to kick the supply side economics hucksters out of congress and out of the media and get back to the basics of economics making sure people have enough money to spend

a step too far as an economist the chance to join chased out the top on to help one one draw at home ground the russian premier league. walk into the champions manchester united star their title defense with a late winner west brom chelsea towards started in the english premier league. out on a roll pace is the only account to six six when of the season in the czech republic to tighten his grip on the g.p. standings. but first of all for alison it's a missed the chance to join tesco at the top of the russian premier league after coming back to draw a woman's home to him car and force league win in a row would have put the defending champions level on points with the all the men i meet in the column it served put our car ahead with a long range stunner midway through the first half thank our last ridge then missed a penalty for zero eight right before the break if you can fly over the bar i don't know much said he staying at them despite previous from the move to enjoy a well at exam that did to their level six minutes after the break a joint top of the league's scorers list one zero

those government figures or talking to someone like my guest who was i spoke with earlier he's an economist laurence kotlikoff he's he's an economics professor at boston university and he puts the build of the government owes even higher he has also said in the past even a year ago he was saying that the country is bankrupt so i want to ask him given this deal which in the past he said you know the country can't afford anymore no pain all gain solutions i said is that with this kind of a deal is this a response. yes but this is this is a pretty much of a another smokescreen they really haven't made any major changes in time and. you know obviously this will inflict some pain on some people but we need to do something much more massive than this we're talking about you know to try to get our troops physical picture and under control we need something like a twenty million or adjustment over ten years not to shoot you in the interim i don't just mean every ten years now i use that you thought about twenty trillion dollar number it's then pretty widely quoted now even when there was a big deal

it and in fact the phrase supply side was invented by a guy named jude wood in ski who is not an economist he was a republican strategist. the whole thing i thought the whole thing was a hoax george herbert walker bush called it voodoo economics. at least in the primaries he was running against ronald reagan. he at least had the good sense after he was elected president after eight years of wreckage reagan taking us from less than a trillion dollars in deficit to over three trillion dollars deficit. you know saying oh well you know we got to make the economy look good you have give me three trillion dollars i'll show you what it looks like to live large anyhow george herbert walker bush at least had the decent sense to raised x. of the little bit. but really now is the time to run the state through the heart of this vampire of supply side economics reaganomics trickle down economics whatever you want to call it it doesn't work unless the top one percent. now thank goodness president obama started this discussion yesterday. it's up to you and me to continue it. bottom line we need to roll b

thank you so much. >> i would say if ever we needed an economist today is the day we need an economistt in the last few weeks we needed to go back to school to take courses in economics to try to understand what is happening. do we need to raise the debt ceiling? what is going on in washington? since you have a keen eye and understanding of what they're doing what is happening exactly at what is your prediction of the outcome? >> we have to raise the debt ceiling. we can't default internationally on our obligations. it is fascinating that the debt ceiling has been raised probably 70 times in the last 30 years. why does it sadly become an issue when the president is barack obama? the answer is because people have issues. they are angry. we are attempting to set perimeters around what is happening with the economy. here is what we know for sure. everyone in this audience. is there anyone here who has not experienced economic hardship or know someone who has? the unemployment rate is 9.2% overall. it is 16% for african-americans. real unemployment rate for us is 28%. one in three american

thank you so much. >> i would say if ever we needed an economist today is the day we need an economist i felt in the last few weeks we needed to go back to school to take courses in economics to try to understand what is happening. do we need to raise the debt ceiling? what is going on in washington? since you have a keen eye and understanding of what they're doing what is happening exactly at what is your prediction of the outcome? >> we have to raise the debt ceiling. we can't default internationally on our obligations. it is fascinating that the debt ceiling has been raised probably 70 times in the last 30 years. why does it sadly become an issue when the president is barack obama? the answer is because people have issues. they are angry. we are attempting to set perimeters around what is happening with the economy. here is what we know for sure. everyone in this audience. is there anyone here who has not experienced economic hardship or know someone who has? the unemployment rate is 9.2% overall. it is 16% for african-americans. real unemployment rate for us is 28%. one in three am

it is nice to see an economist rather than a business school professor which is what goolsbee was but the mr krueger professor krueger has been to be kind to him a rather than the. economist over his lifetime he doesn't take big chances he stays pretty much in the middle of it would be highly out of character for him to break with the president or with what's been going on and unfortunately a break is what we need for two to three years now president obama has been saying that his program to deal with unemployment is to provide incentives and stimulus for the private sector to hire people that clearly has not worked and what we need is to have the courage to break in there and have the government really do something but mr krueger and mr bernanke you have really made it clear that we cannot expect that from the government and so i would be surprised if obama says anything much different from what he's been saying speaking of more of the same though and you mentioned ben bernanke e.u. argue that we're just going to see more of the same without a reserve policies and that seems to be th

party republicans steering the ship of state hostage taking politics i'm joined by max fraud wolf an economist at the new school university graduate program in international affairs and huffington post blogger max welcome to the program. thanks always a pleasure to join you it's great having you with us everyone keeps blaming the europe for america troubles that seems to be the main mean in the main in the mainstream media is it the other way around or is it possible to see their way around that european markets are crashing both because they see the u.s. economy in its death throes and because of of the damage done a couple of years ago by american bankers. well i mean certainly it's a feedback loop so weakness in europe and japan always reverberate in the united states and of american weakness reverberates elsewhere clearly the financial crisis of zero eight zero nine started inside the united states and is intimately entangled with mortgage financing here the debt load of the u.s. consumer and some rather unfortunate financial practices not exclusively emanating from the u.s. but in many wa

votes it's interesting because i was speaking about this with a guest earlier lou rockwell who is an economist and he's also a ron paul supporter and you were saying very that you know michele bachmann was all over all of the sunday talk shows yesterday all of the mainstream media and ron paul suddenly is not in the conversation because he was one hundred fifty votes behind why i think one of the things about ron paul as well but he will always seem a little bit like outsider candidate he's always can be the one that's pushing the issues that nobody else wants to talk about including bachmann in this case and who may claim such outsiderness of the media makes an outsider when they also don't talk to him afterwards so now you have to look at who is his platform friends and what kind of corporate sponsors that form threatens and some would argue it's a military industrial complex and corporations law exactly but i think i also think that i mean age is always a factor in these things as well and i think one of the one of things you have heard and this may be goes back to you know what you're sayi

last week than week earlier and consumers are under even more pressure at the register last month an economist thought thanks to high gas prices bank of america is the biggest dollar losing seven point two percent stock markets across europe see sharp falls as well as concerns about the state of the global economy continue to weigh on investors' minds london's pussy is losing over three of over five percent or so of france were down is down over six percent six and a half percent bank shares suffer more shock falls of the european central bank lent dollars to an unnamed eurozone bank in london barclays pro seven point nine percent the world bank of scotland six point three and lloyds banking group over seven percent in germany commerzbank down five point three percent and bush for bank lost over four percent here in russia markets nose dived below four percent trading on the noise it's helping hold it for more than an hour due to technical problems deals came to a stop just after four o'clock moscow time and resumed about sixty minutes later the r.t.s. suffered a similar problem and a total la

into one hundred forty characters or less you know the problem any american i never claim to be an economist but out of the twenty two books i have in print for a bit about economics and the economy about you but you know what i realize how facts and the truth can be hard to process over there of facts are called news so it's for you or is so and so you know such a pass that's it for your take my take tonight if you'd like your comments and questions here in the segment the big picture listen up know your to send us your comments were busy in the tom hartman facebook page but twittering at tom underscore apartment or in the champ room of the message boards or the blog thom hartmann. you can also leave a message on the rant line it by three six fifty three zero six agree disagree sound on it's all welcome to remember that your comments made news on the year. last week billionaire capitalist warren buffett called on congress to stop coddling millionaires and billionaires and raise taxes on people like himself to the same level that his secretary pays asking that the rich pay taxes like everybo

eight is now outperforming most of the world at something my next guest has pointed out she's an economist with a.c.m. partners margaret bogan raef she joins us to tell us if and how the u.s. should be taking notes thanks so much for being with us now you make the case in a recent article i read of yours that the u.s. as it stood poised for default russia's economy is looking really good and really is the exciting growth story for the brics countries looking back of course russia was a country to have to go through a lot of pain in order to get to where it is today including shock therapy in the ninety's as we saw in that report so do you see any lessons in that for the united states. well i think russia obviously offers an interesting laugh and shock therapy but i don't think it's actually a likeable one. so let's take a look at russian ninety ninety eight invited in august ninth and i gave us the the second year i was confident so when the government decided to devalue the currency to default on because i think that it's got a week or rather it was as shocked as it is this bill that will

that congress has read lots of obama's let's announce his jobs plan next week what is your as an economist advice to the president. well i think the president obama has enough trouble with enough opponents that he had suggested me as economic advisory probably have one more problem and seem to have plenty on his plate that being said i think when you have a structural economic downturn which we have not the normal business cycle but a real sign that the structure of the basic function of our economy is broken we need a structural solution a problem with a structural solution as it means a big change it means thinking outside the box and i mean some entrenched and special interests have to suffer to make us all better off if you go into these debates and go into the policy making saying let's make sure that anyone in a privileged position stays there and do as much as we can with that assumption that we hold sacred and there's only so much you can do when we kind of see the limitations of been the bullet wounds which has largely been the big picture approach to economic policy making both b

when you look for an economist who's a good economist but knew these guys and served there before, that allen kruger, so the downside of that is you have another economist in there who is part of the administration team who thinks like they do, so if you wanted this to be a pick to broaden the horizons, you didn't get that. >> it's not someone who's going to broaden horizons, but more than that, the other similarity i see between kruger and president obama, this empirical, hypothesis testing, is this guy too much of a thinker, a professorial type? >> if you have a political guy in the council of economic advisors position, you made a mistake. it's thankless for guys like goolsbee, that position is to give good, rigorous, empirical advice to the president. do you want a big thinker, that is not kruger. do you want a smaller thinker, someone good at thinking about how do you design a particular program, that might be kruger, but to get a guy to pass things through congress, there are enough political people in washington already. >> speaking of trying to get things passed through congress

are you are you really can start you seem you know this is your your policy analysis and you're an economist and you write about this but i really concerned you it is something that keeps you up at night. well you know you're just written a book called the totally screwed his father you know. it's i am true i'm really concerned about it and writing about this for or doing things now known as your situation keeps getting worse and the reason we had this crisis has to do something real people there is some sense out there at these numbers and i just don't believe that there is some fundamental problem and i'm saying that these guys haven't done their job they haven't worked hard enough they haven't focused on the real problem and they've keep the can down the road it's more kick the can down the road even despite this deal that we're seeing people tout in washington today maybe getting some reaction to your interview right now people texting or calling you know the one thing on our team right now i want to thank you so much for being on our show that was laurence kotlikoff professor of economi

system reset because it's just miserably fragmented and so discombobulated and others are not an economist you have some wonder show and others who try to advocate for certain keynesian solutions because they recognize look we don't like this system it's not a good system but we're so far down the rabbit hole of the government has to step in now that it's the only one that people trust you know outside of gold that so there's nothing it's just inflation put the money to work build solar panels build a high speed rail and maybe the private sector to take advantage of or i try to look at those solutions and try to think about them and see the work and i frankly very optimistic about the reality is if you went with the government with what the government has offered so far to a venture capitalist you would have escorted you out of the office you handkerchiefs because the the business model of a business plan going to government provides is not a business plan governments don't know how to spend money and equipment enough to doing so so i don't have a good politicians and policymakers and prof

his first position was an economist position in the office of the unemployment statistics.s risen entirely through the ranks. he has held several positions, including a supervisory economist and assistant commissioner for current employment analysis. the has been deputy commissioner since 2003. he served as acting commissioner between 2006 and 2008. he has been by my side not only at the hearings, but the day-to- day operations at the bureau. phil has worked with most of the members of the bos family. he meets with every new staff member as part of our new employee orientation. he has been a big part of our long, rich condition -- tradition as a independent agency. he's been a big part and he will be missed. on behalf all bls employees, we want to express our appreciation we at the bureau wish him a long and happy retirement. >> dr. hall, a process for your testimony as well as your tribute to phil. always some of the economic news was as ugly as orchard beat, but we have to look at only the numbers. there is a lot to talk about and a lot to be concerned about, frankly. one

guest: remember, this man graduated from economics degree from eureka college in illinois, he was an economistood what art laffer showed him on the nap kip, -- napkin, the laffer curve. he listened to the people and he knew he may not get a second term. he needed to fix things, now, because america was in such, as we say from the carter days, in such a malaise. he stayed the course and we came out with 20 million jobs and growth in the economy and the united states american being a shiny city on the hill he talked about. >>neil: but it looked dicey, we were still in the resex and still concerns it would drag on, and your father would be a one-termer. did he ever say to you, son, well, maybe i botched it. >>guest: no, no, he never said that. this is a father saying to his son, when i asked him for a larger allowance, he said when they cut my taxes i will give you a larger allowance. he understood that. he understood i would spend a larger allowance and he understood that. he absolutely understood that. he never worried about those decisions he made. the only thing that ever concerned my father

. >> hardly shaken, an economist says that the state is still struggling. >> we are looking at stagnant wages and growing unemployment that's very damaging for california families. california right now is the second highest unemployment in the country. >> reporter: our economists tell us that the instability of the economy since the u.s. was downgraded could prolong agony. turmoil means insecurity and employers won't hire if they are not confident. we are live in concord. chris tan cap. >>> a large crowd opened in oakland's fruitvale for a community forum on making a more secure future for their family. >> everybody can put their questions on the table, maybe misspell some misnomers about what's going on as far as banking and home ownership. >> the community council sponsored the event. they offered financial and safety advice for families and tips for students who are heading back to school. >> looking ahead, experts say you can expect morevolatility next week for wall street. economists are already expecting major swings. the dow jones industrial started yesterday with moderate gains