. ♪ >> bankrupt company, bankrupt city -- how do you be a luxury brand?r 30 years, we lost our way. sales had declined. >> how do you get away with not listening to customers? how do i know you are listening now? >> the biggest thing is still pushing through that perception that it is the old man car. >> we produce the world's best cars again. we can do this. >> it is cadillac. >> it has an incredibly appealing design. you get someone in the seat of one of these cars, you will convert them. >> i'm jeffrey hayzlett. i'm on a journey inside the biggest brands in america. i have been a cmo, ceo, and a boardroom cowboy. now i'm visiting the executives in charge of the most powerful companies in the world to see how they have tackle the challenges of the c-suite. i'm in the car capital of the world, detroit. it is the birthplace of the american automobile. it is one of the most iconic car companies, cadillac. a brand name that evokes memories of it is a bygone era the it is a bygone era of 1950s, 1960s. luxury. a status symbol for my father or grandfather. cad

. >> bankrupt company, bankrupt city -- how do you be a luxury brand?for 30 years, we lost our way. sales had declined. >> how do you get away with not listening to customers? how do i know you are listening now? >> the biggest thing is still pushing through that perception that it is the old man car. >> we produce the world's best cars again. we can do this. >> it is cadillac. >> it has an incredibly

. ♪ >> bankrupt company, bankrupt city -- how do you be a luxury brand?r 30 years, we lost our way. sales had declined. >> we never really competed. we do not listen to the customers. >> how do you get away with not listening to customers? how do i know you are listening now? >> the biggest thing is still pushing through that perception that it is the old man car. >> we produce the world's best cars again. we can do this. >> it is cadillac.

. ♪ >> bankrupt company, bankrupt city -- how do you be a luxury brand?r 30 years, we lost our way. sales had declined. >> how do you get away with not listening to customers? how do i know you are listening now? >> the biggest thing is still pushing through that perception that it is the old man car. >> we produce the world's best cars again. we can do this. >> it is cadillac.

. >> when i look at the brand, bankrupt company, bankrupt city, does not beat of luxury brand anymore. what are the challenges for you? >> the challenges are many. one is time. we don't have time. the customers and markets are not going to wait for us to do the right thing. they are not going to a three years, four years -- >> how many years do you have? >> we need to move fast. there are certain gaps we have in our portfolio that we need to fill. >> is this one of the gaps? the big muscle car? >> that is one of the gaps. i would love to see that car in production. this is a very different proportion, and we will kenyan shilling -- we will continue to move and eve all the brand. >> what was it that made you guys say that we cannot be our dad cadillac? >> we had to look in the mirror and see what the challenges were and get out of detroit and take a look at the whole industry. i think during the darkest days >> which were when? >> during bankruptcy. every day, you would hear this terrible headlines, and i the entire design team together, and i talked about how we were going to get this

. >>> detroit, known as the motor city, can add a new title, the nation's largest bankrupt city. a michigan judge ruled that detroit can enter bankruptcy. it clears the way for cuts in pensions and retirement workers. bond holders face major losses. diane eastabrook has the story. >> orr wants the plan to be as easy as possible. it's likely everyone will take a financial haircut. >> judge steven rhodes gave the green light to cut pensions, sell city access and cut debts. outside, detroit municipal workers and retirees protested. retiree david sole called it a death sentence. >> our pensions might go on the chopping block. our art institute, our water department may be sold off. >> the judge said bankruptcy may be the only way to breathe new life into detroit given its $18 billion debt. cum bling infrastructure. in his ruling the judge said: >> in a controversial decision rhodes said retiree pensions could be on the chopping block, saying the state's constitution treats them like any other contract. the union says it will press their case with kevin orr, when he draws up the plan.

one of the bankrupt city's main goals is to tear them down. as david hawkins reports, local entrepreneurs have something else in mind. where some people see trash, others see treasure. or in the case of these abandoned houses a lumber yard. >> the lumber that we get out of these old houses is commercially available. it's beautiful stuff. >> chris found the valuable wood. >> when i went into one of these houses i thought we had to do something, we had to start saving it. >> it costs about $9,000 to demolish a house. many had been stripped by scavengers. most abandoned houses contain $10,000 worth of lumber, flooring, 2 by 4s, and plywood. entrepreneurs want to reclaim that wood and recycle it. >> we are doing what we can to show people the inherent beauty and opportunity in the wood. >> james designs and sells furniture made from reclaimed lumber. i feel the material had a huge appeal on a fundamental level. the quality of it, the fact that it has a story behind it. all of our pieces come with its own detroit adres. more and more architects are

i mean, it's hard to believe this is the largest bankrupt city in america. like a really nice, empty hotel. i really think i might be the only person staying here. for a city that just declared bankruptcy, stockton doesn't look all that bad. but looks can be deceiving. the whole country suffered when the economy tanked in 2008. but five years later, when other towns are finally digging themselves out, stockton is in deeper than ever, with record crime and one of the highest unemployment rates in the nation. and it's not just my hotel that is empty. last year stockton had the highest foreclosure rates for a metropolitan area in the entire nation. still, it hasn't been all bad. i mean they did win an award. >> "forbes" magazine once again has ranked stockton as the most miserable city in the united states. >> so why was stockton hit so hard? who is really to blame for the mess they're in? and maybe most important, is there any way out of it? >> enough is enough! enough is enough! >> to learn a little more, i decided to attend the monthly city council meeting,

the emergency manager of the bankrupt city is investigating possible ways to pay back creditors and help the city through the tough fiscal times. however, christie's auction house has offered its own financial suggestions in order for the city to avoid selling the works. the saying: it takes money to make money has never been more true for billion warren buffett". according to a study-- the oracle of omaha increased his wealth by $37 million dollars per day in 2013.at last check buffet's net worth shot up $12 billion to 59.1 billion dollars. forget ugly sweaters. jpmorgan ceo jamie dimon is "showing the money" in his family christmas cards this year-- and it's going viral. as you can see , dimon and family also used the photo opp -- to show off their tennis skills. still to come: is the worst over for oracle? we'll break it down in chart talk. plus...the movie our critic says is a shoe in for the oscars... and..you can call me "al" ....the grandniece of infamous mobster al capone joins bill moller right here, after the break! i'm going to pass chemistry, and i'll take it from there. i'm

it's a cultural gem in a city gone bankrupt. ow a collection of masterpieces long held in trust for generations to come faces an uncertain future. christie's estimate of city-owned art work which amounts to 5% of the museum's total collection is worth $450 million to $870 million. $18 billion in the red, a federal bankruptcy judge has ruled nothing is off the table. pensions and retirees healthcare shoulcould be cut, and art coule sold to the highest bidder. >> the art is not a bag of money sitting on the wall. >> reporter: todd levin born and raised in detroit is a new york art diseaser who thinks selling the art is unethical. selling art is to buy more art, never to settle city debt. >> the art work would be held in a way that it would be off limit bus they did not do their job. they assumed this was a starter but they were wrong. >> reporter: works by brogal and van gogh. >> it's not going to be an open door where art work is simply going to flow out. i think it's going to be very cautious on the part of the court and on the p

. ♪ >> bankrupt company, bankrupt city. what happened the?t our way. >> this does not look like my old man's cadillac. >> where the fastest-growing car brand in the world. >> a 111-year-old brand, doesn't have what it take you? >> the november employment report comes out friday morning and while investors look at the numbers more than one million americans are watching congress to pass an extension of emergency unemployment benefits. they are set to expire december 28. democratic strategist robert hoopes has been an active member in electoral politics are more than 20 years working in joe biden's senate office and later as a member of the obama-biden transition team and is currently the president of a bipartisan public affairs company. thanks for coming on tonight. we have to start with the breaking news, your reaction to the death of nelson mandela. >> at this moment in washington, we are talking a lot about leadership. you look at his qualities as a leader, perseverance, determination, the gratitude, the forgiveness. these are attributes th

in the meantime, and officially bankrupt city. a judge rules that it is okay to file. >> not only is it illegal, but it is immoral. >> this ruling is a threat to every city in detroit. >> we think that that sets a bad precedent for other cities >> we are gratified with the city's eligibility to pursue a plan of adjustments under chapter nine of the federal bankruptcy code. it is business as usual in detroit. this determination gives us a better opportunity to go forward with that clean slate. neil: mark my words, that i will be a rockstar. and a bankruptcy filing is their only hope. judge napolitano, i would say you? >> they have an obligation of 18 billion and it does not have the assets or the tax base. but it owes a lot more than a it negotiated with all of its creditors, including the unions. >> if the judge does not rule as he ruled today, then instead of having an orderly bankruptcy where a judge will take obligations and slice and dice and give people their portion of the pie, you have about five or 6000 lawsuits, each that

bankrupt city. >> what happened to the brand? >> we lost our way. brandear-old have what it takes?have recently been in the market for a mercedes, you might realize there are a lot of options, and the sedan a loan comes in five different sizes, comes in fivelone different sizes, including the large s class. why so many models? we look at why luxury cars have been multiplying. mercedes sells a 13 different cars in the u.s., everything from the potential luxury four- door all of the way up to the coupe. ago, do you know how many models mercedes-benz sold in the u.s.? 4. udi and bmw have been going at it like rabbits too. the first reason is there is a whole lot more competition now than there was back in the 1980's. you have got $60,000 hyundais, for crying out loud. you have to go out and find as many customers as you can. which, now you can do, given the massive amounts of data that they have to analyze the market. technology,again to now it is easier than ever for a carcompany to spin off different models using the same parts, things like the chassis and the engines, which can be

. -- bankrupt city. what happened to the rent -- b rand? >> for 30 years we lost our way.0 and 11 year brand have what it takes to come back? hollywood studios are squeezing more dollars into their weekend box office report this year. they are doing it by adding ticket sales from thursday shows. joining me from los angeles to talk about that and the big hollywood movie season is the at an media analyst entertainment website. good to see you again. paul, how did thursday become the new friday for the box office. >> it has become the new friday. studios love to have midnight screenings on a friday, so that audiences can get in and see a movie, talk about it via the virtual water cooler on facebook or twitter. and by getting to see those movies early they are the first one to talk about it. it it builds buzz for the coming weekend. we love seeing these previous work to -- moved to 8:00 p.m. leading into., midnight screenings. at the end of the day, i don't inc. it affects the bottom line dollar at the end of the run. i think what is going to occur is going to occur. but that

in the meantime, and officially bankrupt city.udge rules that it is okay to file. >> not only is it illegal, but it is immoral. >> this ruling is a threat t every city in detroit. >> we think that that sets a bad precedent for other cities as a business owner, i'm constantly putting out fires. so i deserve a small business credit card with amazing rewards. with the spark cascard from capital one, i get 2% cash back on ery purchase, every day. i break my back around here. finally soone's recognizing me with unlimited rewards! meetings start at 11, cindy. [ male announcer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry! what's in your wallet? every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion her

brand, i look at the bankrupt company, bankrupt city, doesn't reek of luxury brand anymore.challenges for you? >> the challenges are many. one is time. we don't have time. the customers and the market are not going to wait for us to do the right wing. >> have many years do you have? >> we need to move fast. gaps that wetain have in our portfolio that we need to fill with the right product. >> is is one of the gaps right here? fact that is one of the gaps. i would love to see the car in production. it has or shape to it. it is a very different proportion. to move andinue evolve the brand. can't stand still. >> what was it that caused you to say, we can't do it like we used to? we can't be our dad cadillac? >> we had to look in the mirror and see what the challenges were and get out of detroit and take a look at the whole industry. i think during the darkest days during bankruptcy, everyday you would hear the terrible headlines. i brought the team together, the design team and i talked about how we are going to get through this bankruptcy. side,e out the other everyone is goin

bankrupt or general motors go bankrupt that gave candidate obama a pretty great opening and all things ironic today. do i agree with charles, this is the only option for this cityt's come to this sad state of affairs. >> charles? >> general motors did go bankrupt. it was a rigged bankrupt for the union night auto workers. a few weeks ago i was in detroit and i spent some time with the governor that day he had been out with the clean up crew and clean up a swath of an abandoned part in the city. got to the park and grass and weeds and bushes were so high you couldn't tell what was in the park. he said we found some tires, a boat in the middle of the city, and a body. one hopes the body was found before the packs of farrell dogs in detroit had got to it. i mention this because this isn't like orange county, california goes bankrupt jefferson county birmingham, alabama goes bankrupt because they made investment. it doesn't have an economic problem it has that, of course. it has cultural collapse and nothing a bankruptcy court can do is going to change that. >> so what about this white house? what it's saying and doing? >> i would like to see them try to get a bail

city. i'm tony harris with a look at today's top stories. detroit is bankrupt. >>> a judge made it official today. current bills will be paid but pensions are due to be cut. a new look at the death of yasser arafat. experts say the palestinian leader was not poisoned. and the moment that divers found a shipwreck survivor right after the tugboat sank. it is, indeed, a momentous day. that is how a federal judge ended the hearing announcing that detroit is available t bece a bankrupt city. it is $18 billion in debt but not without potentially hurting pensioners. we're in detroit, diane, the big question now is moving forward how long does this whole process take? >> we're likely to see a reorganization plan in a month or so. but it is likely to be met with opposition from current municipal employees. >> reporter: the judge gave detroit state appointed emergency manager to file bankruptcy. outside the courts were protesters. >> services, pensions will be on the chopping block, our art institutes the water. >> it may be the only way to breathe new life into detroit

and bankrupt cities are moving to curb pension plans as well. a federal judge cleared the way yesterday for detroit's bankruptcy to go forward. the city's emergency manager, kevyn orr, promised a thoughtful and measured approach. >> approximately 40% of every dollar that the city takes in the general fund goes to paying legacy debts, pension obligations, some of which are unfunded, or debt. that's just not sustainable because in the next three to four years, that number's going to go to almost 65%, almost two- thirds. >> woodruff: the ruling could have implications elsewhere, especially california; stockton and san bernardino may tackle pension costs as part of their bankruptcy proceedings. we tackle the question now of whether these pension obligations should be targeted for cuts and if so, how they should be handled. steven kreisberg is the director of collective bargaining and health care policy with afscme, the american federation of state, county and muncipal employees. the union is appealing the judge's decision in detroit. and andrew g. bi

the bankrupt city suffers from both soaring unemployment and the highest crime ran the country. the chinese are snapping up real-estate in droves. what did they know that we don't? joining me now, detroit real-estate agents from the michigan attorney command a china affairs expert from the american enterprise institute. thank you for joining us. chad, let me start with you. is in these folks are coming in with of cash. are they buying residential, commercial, or what? >> well, melissa, what i am seeing here -- i'm sorry, melissa. seeing a large investment in both residential and commercial real estate. i have seen -- sorry. when a pair of shoes, you can buy two houses in detroit. a huge amount -- they don't know what the municipal bankruptcy means. second, there really want to know whether the price will be rally that cheap. melissa: it is not about cheap. it is about i anticipate there will be doing something in the very near future. get them their value back. melissa: do you agree? is that what you're seeing? >> i totally agree. spot on melissa. and to get back to your earlier

building a business in a bankrupt city. detroit opens its very first distillery in 100

and the judge put together a 180-page report detailing his decision to declare the city bankrupt.s you can see behind me there are about 60-plus protesters that are opposed to this bankruptcy. they have been out here chanting, no justice, no peace, and no bankruptcy. and they have been doing this for the past four months. >> how many pensioners will be effected in the city of detroit based on these rulings? >> reporter: there will are about a little over 20,000 pensioners, as i mentioned, who depend on these checks. just the other day we interviewed a retiree every month he receives about $800 from the city, and right now he is terrified. it's unclear if the judge is going to make any decision on whether the pensions will be touched or not. but everybody is waiting around here with baited breath. >> what was the judge have to consider in order to allow the bankruptcy filing to continue? >> reporter: well, the judge made some pretty strong comments as he was talking during this hearing, and he said that the city no longer has the resources to provide its residents with basic servic

. >>> last week the city of detroit became the largest bankrupt city in u.s. history. o make hard cuts. it's not just pension payments that are on the line. last week the city's emergency manager kevyn orr told detroit free press he would like to, quote, find a way to monday ties the detroit institute of art. art museum full of picasso, van goghs, recommend brants, worth $452 and $866 million. we have point counter-opponent on the panel. jonathan, you say sell the artwork. >> it's like having a late model mercedes or ferrari or driveway of an abandoned home. people live there and have a fabulous car but wrecked house. detroit is in trouble. $18 billion. >> this is $452 million. so it's not putting a big dent in it. >> they have to do something to whittle away $18 billion. if selling artwork can alleviate pain i say go for it. >> it's scandalous to even think about selling this art. that's a wonderful museum. it's open to all the residents of detroit. i was out there a couple of years ago. it's really fabulous. they talk about what this art worth and put a dollar figure

. >> it's official detroit the nation's once fourth largest city is bankrupt. the judge said they could move forward with bankruptcy proceeding and try to get out from under dollars in debt. the city's city manager says he will present his plan next year. dianes a he is atdiane is in det ruling. john he wants that plan to be as human as possible. but all creed tors creditors coa financial haircut. the judge gives detroit state emergencieemergency manager to t pensions and sell city assets outside the city workers protested. they called the ruling a death sentence for detroit. >> services for city residents will be slashed and our pensions will be on the chopping block. our art institute and water department may be sold off. the judge said bankruptc bankrue the only way to breathe new life into detroit given their debt and crumbling infrastructure and high crime rate. the judge said "this once proud city capacit can't pay their de. debilities dent their debts. the retire pension may be on the chopping block saying they treat them like any other contract. the unio

. >> if declared bankrupt the city of detroit will have until march to submitize plans to the judge. it will likely set the stage for the next phase of legal battles between the city and creditors, who are expected to appeal. >> the medium household income in detroit is about $25,000 a year. 50% lower than the rest of the state. >> we are getting a glimpse of the best of 2013 through the lense of reuters photographers. among them this photograph of the pope francis trying to grab a handkerchief thrown his way in st. peters square. and arlington national cemetary, a young woman laying on her brother's grave. that will do it for this edition of al jazeera. i'm thomas drayton, in new york. thanks for watching. soon kids around california will be able to erase their online indiscretions. what about the rest of us? ♪ >> our digital producer wag is here to bring in your questions and comments live throughout the show. if you could hit digital delete on your digital path. >> my entire pubertiy from 1993 to now. but some how it got me this job, so no.

when i look at the brand, bankrupt company, bankrupt city.rand anymore. what are the challenges? >> the challenges are many. we do not have time. the customer or the market is not going to wait for us to do the right thing. we need to move fast. >> there are certain gaps in our portfolio that we need to fill with the right products. >> is this one of the gaps right here? >> it is. i would love to see that in production. evolved. it's got more shape to it. it is a very different proportion. we will continue to move and evolve the brand. we cannot stand still. >> what convinced you to say, we cannot do it like we used to? to look in the mirror and see what the challenges were and get out of detroit and take a look at the whole industry. -- ink the darkest days >> which were when? >> during bankruptcy. the entire team together. >> you can catch the entire interview tonight on bloomberg. ♪ >> this is "taking stock" for tuesday, december 10, 2013. i'm pimm fox. i'm going to focus on people and businesses hitting the right note. general motors is h

are not fully funded, covering less than 80% of retiree pension and health benefits and other bankrupt citiesg to get solvent. this ruling could be an opening. i want to bring in lee saunders, president of the american federation of state, county and municipal employees representing 1.6 million members. for those members, lee saunders, what does this ruling mean? >> well, it's a dark day for detroit, it's a dark day for working families, it's a dark day for the retirees who have really worked for 30, 35 years, given their lives to public service yet they have a huge bull's-eye on their back based upon this ruling by the court. on average, our members on this average earn $19,000 a year, their pension benefits are $19,000, yet they are standing in the front of the line where they're going to get cut. those benefits will be reduced. we think that's unfair, immoral, and we're going to continue to fight legally. we're appealing the decision yesterday. but we're going to continue to educate the community in detroit and across michigan and across this country. you don't attack workers who have give

about the accidents of these auto companies also talk about how wall street was involved in bankrupting the city. well you know in the early years because this decline of detroit is a matter of several decades now it speaks volumes to the incapacity of the governors of message of michigan to the presidents of the united states to all the people that saw what was happening to step in and do something but because they couldn't and they wouldn't be allowed this city. even though they bailed out those auto companies it left the city desperate so they turned to wall street to get certain kinds of financial help to see them through the hard times now they've discovered that those are very arrangements that wall street quote unquote helped them make turn out to have been profitable for wall street but are further burden rather than a help on them so that they've been hurt not only by the big oil companies made a big car companies but also by the financial industries and again the failure of those arrangements is being taken out of the hides of the school teachers and the garden and park maintainers and

detroit is officially bankrupt. the city can work up a plan to she had billions in debt. it could include cutting bi pensions for thousands of people. appeals are expected but the city manager, kevyn orr is moving forward. >>> a crucial new clue in sunday's deadly train crash. a union official says the engineer at the control of the passenger train was nodding off shortly before the train veered off of the rails at break-neck speed. several investigators say there is no evidence of brake or rail failure >>> president obama defending his healthcare site again. he said he will come pain for it until december 23rdrd. >> that's the deadline to sign up for insurance coverage. >>> overseas, vice president joe biden is in asia trying to ease tensions between japan and china. countries are fighting over a group of islands. in tokyo today, biden said the u.s. stands with japan. those are the headlines at this ho hour. i am john siegenthaler seeing. consider th "consider this" with antone i don't mora is next. you can always get the latest news on acceljazeera.com. we will see you

you created exceptions so they could invest in detroit which is a failed bankrupt city, they could invest in foreign banks? that's a yes or no question. >> they protect our markets and protect taxpayers from being exposed to inappropriate risk. i think the agency did an excellent job striking that balance to keep growth going and protect the taxpayer. >> the time has expired. the chair recognizes the gentleman -- >> thank you. >> i have a couple of questions. we learned early on there is something in every space, and so this is a question asking just for your opinion, who do you think or what would happen if there is a void left as a result of the united states non- leadership in i.m.f.? >> congressman, i think u.s. leadership in the world is important to the united states and it's important for the world. as i talk with my counter arts in asia and europe, i hear over and over again we need the united states to be the strong lead they're you are. so in the i.m.f. what we see is with our contribution which is less than 20% of the entirety of the i.m.f., we have enormous influence. we have

. >> when i look at the brand, bankrupt company, bankrupt city, doesn't wreak of luxury brand anymorehe tough challenges for you? >> the challenges are many. one is time. we don't have time. in the customers in the market, they're not going to wait for us to do the right thing or do the right vehicle. they're not going to wait three years, four years, five years. >> how many years do you have? >> we need to move fast. >> there are certain gaps that we have in our portfolio that we need to fill with the right product. >> is this one of the gaps right here, this big muscle car? >> that is one of the gaps. i'd love to see that car in production with el mirage, we've evolved the design language. it has more shape to it. it's a very different proportion. we'll continue to move and evolve the brand. can't stand still. >> what was it that caused you guys to say look, we can't do it like we used to? we can't be our dad's cadillac? >> we had to look in the moiror and see what the challenges were and get out of detroit and really take a look at the whole industry. i think during the darkest day

here are the top stories we are following this hour: the motor city is bankrupt. detroit once the nation's fourth largest city can begin to shed its $20 billion debt. it could mean cutting the pensions of thousands of retired city workers. >> the engineer in control of the train was nodding off shortly before the train lost control in new york. the federal agencies investigating the crash removed the rail union from the investigation saying there was a breach in confidentiality. >> vice president joe biden is on a week-long trip to asia

city of detroit. the judge in that case ruled that detroit can impose cuts to the pension plans of employees. that ruling comes as a bankruptnia city, san bernardino, is considering a legal showdown with cal piers -- calpirs. the ooles ruling does --. >>> they are not giving hope. why there's new hope for a san jose pilot and his family missing since sunday in idaho. >>> new information about the palo alto man detained in north korea. turns out there's more to his story than we first realized. >> right now we're looking at the san mateo bridge in case you want to use it as an alternate to the bay bridge and actually right now, it's good. it's not as windy as it was yesterday. the traffic is moving well. >>> skies are clear. it will be a nice day just not very warm. i will tell you about the forecasted highs and how cold it got. maybe colder. all of the details -- coming up. >>> welcome back. time now, 7:14. we have new information about 85-year-old merel newman of palo alto who has been detained for more than a month in north korea. during the korean war, mr. newman led a unit of guerrilla fighters. mr. newman reportedly re

detroit has officially become the largest city in the u.s. to go bankrupt. federal judge cleared the way for officials to deal with $20 billion in debt. pensions of city workers and retirees could be on the chopping block. that possibility sparks protests. >>> federal investigators say it's too soon to say what caused the derailment in new york. a union official said the engineer was nodding off before the train lost control at 89 miles per hour. four people died, 60 were injured in the crash. vice president joe biden has arrived in

detroit is officially bankrupt. the city can work up a plan to she had billions in debt.uld include cutting bi pensions for thousands of people. appeals are expected but the city manager, kevyn orr is moving forward. >>> a crucial new clue in sunday's deadly train crash. a union official says the engineer at the control of the passenger train was nodding off shortly before the train veered off of the rails at break-neck speed. several investigators say there is no evidence of brake or rail failure >>> president obama defending

on april 1st, 2013, a judge in federal court declared stockton officially bankrupt. the city long process of restructuring its finances and paying its creditors. stockton's bankruptcy is historic. and how it works its way out will set the precedent for struggling cities across the country. one thing that i think is really hopeful that has come out of this is that there seems to be a real willingness of the people to work together to try to fix things. maybe that's what happens when you hit rock bottom. when you finally hit the bottom, you say wow. when there is no money left, what do you have? people are realizing it's not going to be just fixed by money, it's going to be fixed by us. i think that's a good message for everyone. >>> mm. delicious orange juice. we all drink it, but do you ever think about where it comes from? these people do. they're undocumented immigrants. and theb they know where it comes from because they pick the oranges that are in it. they also pick the tomatoes in your salad, mow your lawns, clean your hotel rooms, hang your dry wall, even help raise yo

you created exceptions so they could invest in detroit which is a failed bankrupt city, they could invest in foreign banks? that's a yes or no question. >> they protect our markets and protect taxpayers from being exposed to inappropriate risk. i think the agency did an excellent job striking that balance to keep growth going and protect the taxpayer. >> the time has expired. the chair recognizes the gentleman -- >> thank you. >> i have a couple of questions. we learned early on there is and song in every space, this is a question squg just for your opinion, who do you think or what would happen if there is a void left as a result of the united states non-leadership in i.m.f.? >> congressman, i think u.s. leadership in the world is important to the united states and it's important for the world. as i talk with my counter arts in asia and europe, i hear over and over again we need the united states to be the strong lead they're you are. so in the i.m.f. what we see is with our contribution which is less than 20% of the entirety of the i.m.f., we have enormous influence. we have veto over i

okay for them -- you created extensions so they could invest in detroit for example, which is a bankrupt city they could invest in foreign spanish banks charge exempted as well so they can gamble in those markets? >> i think if you look -- >> that's a yes or no question. >> i think the agencies did an excellent job of striking that balance to keep economic growth going into protect the economy and the taxpayer. >> the gentleman's time has expired. the chair now recognizes the gentleman from missouri, for five minutes. >> thank you, mr. chairman. thank you, mr. secretary, for being here today. i just have a couple of questions. we learned early on that there something in every state, a vacuum, and so this is a question asking just for your opinion. what do you think -- who do you think or what would happen if there is a void left as a result of the united states non-leadership in imf? >> congressman, i think that u.s. leadership in the world is important for the united states and it's important for the world. as i talk with my counterparts in asia, in europe, i hear over and over again we need

for 50 years we have been trying government stimulus, trying to bail out cities that have been gone bankruptbankruptcy we can find a new way. so i'm promoting economic free dom zones similar to enterprise zones from jack kemp 20 years ago. this is enterprise zones on steroids. this is a massive giveback of money that's already yours. we are not going to take it from houston to bail out detroit. we'll let detroit keep their money and bail themselves out. it's phenomenal how much money can be left in detroit simply by lowering the taxes in detroit. >> it's like kemp's enterprise zones on steroids. i looked over the plan. you're calling it the freedom plan. you will give eligible areas a reduction in individual and corporate tax rates. correct? yes. we'll take personal and corporate tax down to 5%. bring the payroll tax down for the worker and employer. and we'll reduce the red tape and let businesses thrive. we'll invite entrepreneurs from around the country and around the world who want to come to detroit and make it like a mini hong kong. there are great things you can do the. it's amazing h

is okay -- you created exemptions so they could invest in detroit for example which is a failed bankrupt city. they could invest in foreign spanish banks that are exceptions as well so they can gamble with those. >> i think if you look at -- >> that is a yes or no question. >> to protect the markets and debt and liquidity and protect taxpayers from being exposed to inappropriate risk. i think the agency did an excellent job striking a balance of economic growth going and to protect the economy and the taxpayer. >> the time is expired and the chair recognizes the gentleman from missouri for five minutes. >> thank you, mr. chairman and mr. secretary for being here today. i have a couple questions. we learned early on their something in every space and nature of course a vacuum and so, this is a question asking just for your opinion. what do you think -- who do you think or what would happen if there is a void left as a result of the united states non-leadership on the imf? >> the leadership in the world is important for the united states and for the world. as i talk with my counterparts, in asi

talk about the exodus of these auto companies also talk about how wall street was involved in bankrupting a city. well you know in the early years because this decline of detroit is a matter of several decades now it speaks volumes to the incapacity of the governors of message of michigan to the presidents of the united states to all the people that saw what was happening to step in and do something but because they couldn't and they wouldn't be allowed to city even though they bailed out those auto companies it left the city desperate so they turned to wall street to get certain kinds of financial help to see them through the hard times now they've discovered that those are very arrangements that wall street quote unquote help them make turn out to have been profitable for wall street but are further burden rather than a help on them so that they've been hurt not only by the big oil companies made a big car companies but also by the financial industries and again the failure of those arrangements is being taken out of the hides of the school teachers and the garden and park maintainers and the