he was bernie madoff's operations director as it is expected in court later today. bernie madoff asserting 150 years in prison after admitting to bilking investors out of billions of dollars. >>> the general motors, brand may be history soon. hummer -- potential investors will be heard. they will still service parts. >>> an officer and pennsylvania -- in pencil the stopped and suv and the personal like marijuana. the officer searched it and the inside, he found a hidden compartment filled with 358 >> of heroin. that is about half a million dollars worth of that drug. officials say is one of the largest heroin bust they have ever seen. >>> what theyere expecting. we are expecting some high winds, damaging winds this afternoon? >> yes, we are anticipating the wind to crank up and push to 50 miles per hour. the trees are still wet from leftover snow so the tree limbs could come down. they could take down power lines. there might be a few light snow showers tonight. hammered -- >> the storm is ever so close but it missed us. we have had our fair share. this is a shot fr

bernie madoff. was it embarrassing for you?> greenspan: two days after i had the first book copy in my hand, i found that out. well, it was painful, obviously. >> safer: and the fact was, greenspan had never even heard of madoff. the hedge fund managing his retirement money had simply reinvested the $400,000 with madoff. >> greenspan: i don't even think i read the prospectus. i trusted the people i was turning my money over to, and i've always done that, and it's usually worked well, except in this one case. >> safer: what did your wife say to you when you confessed that you lost part of your nest egg? >> greenspan: "i told you so." because i had tried to talk her into it, and she said, "i don't think so." ( laughs ) >> safer: what made her suspicious? >> greenspan: maybe it was the word "hedge fund." >> safer: which brings us to wall street and the financial meltdown of 2008. poking through the wreckage, many experts believe the root cause was a perfect storm, a monsoon of gullibility colliding with a tidal wave of greed. >> j

we may soon find out whether bernie madoff's family was involved in his massive ponzi scheme. today, his brother, two sons, and a niece agreed to give a full accounting of their finances to the trustee liquidating madoff's business. those relatives have been accused of taking almost $200 million from the business. separately, more money may be coming to madoff victims. his luxury manhattan penthouse has a buyer. >> tom: an advertising scuffle between jenny craig and weight watchers is over. jenny craig says it will stop running ads that made mention of quote, "a major clinical study." that study claimed jenny's clients lost more weight than those using weight watchers. weight watchers sued, calling the ads false and misleading because there was no such study. after pulling the ad, jenny craig's c.e.o. challenged weight watchers to go head-to-head in a clinical trial. >> susie: just two more days until the super bowl. and if you're still looking for a ticket, there are plenty left if you have the money, and a ticket broker. as jeff yastine tells us, those brokers are very popul

>> the same way it applies to bernie madoff. it was a very bad idea, it was reckless and irresponsible and it comes crashing down in the end and we don't want that to happen to our country. it isn't a matter of republicans or democrats, both parties, the leadership over the last several decades has contributed to this but it is fair to say president obama and the current congress have made it exponentially worse. bill: and you said some of these numbers you point to are staggering, federal government spending has grown seven times faster than median income since 1970. at $12 trillion, the debt is more than 80 percent of gdp. that's enormous. debt per household is $600,000. that's just staggering. but you argue it doesn't have to be this way. you could just turn off the fawsel. how so? >> well, there's a number things we can do but just one other fact that stick necessary my mind, the federal government takes in for all revenuesources, about $2.2 trillion a year, the total unfunded liabilities of our country are 65 trillion, fede

. >> if only bernie madoff was a hot teen, the sec would have stopped his scheme. workers at the securities and exchange commission are getting distracked it from their mission of protecting investors by porn otherwise known as naked pictures of people doing weird stuff to each other. i wouldn't know. the washington times reports over the past two years more than two dozen employees of contractors have faced investigations after being found to look at sexy sites on their computers. one regional supervisor logged more than 1800 attempts to look at porn in a 17-day span. is that a lot? >> it is 106 times. >>106 times? >> per day. >> anyway, said the supervisor, quote, it was ind could of a distraction -- it was kind of a distraction, per say. per say indeed. in similar news, some dude in australia got busted on live tv looking at sexy pictures while at work. watch what is going on behind this reporter. >> the last three that were put in place late last year. and sometimes this takes up to 6 to 9 months before you can see the affect. >> it didn't help they put the spo

. >> the senate budget committee chairman said this is a ponzi scheme that would make bernie madoff proud>> reporter: and act four: the monologues. >> certain things are facts. >> why can't we come to an agreement? >> what we all agree on. >> we want you to succeed. >> reporter: over and over, despite a fair amount of meaningful discussion, lawmakers broke into speeches implying the facts supported them, that the other side was being unreasonable and if no agreement comes it will be the opposition's fault. in the end there were no bows, only exits, and in d.c. a true odyssey of political theater. the president's normally the first to depart, was the last to leave. >> you guys are still here? >> reporter: tom foreman, cnn. >> that was a pretty big stack of papers. cantor looked like he was having a hard time looking over them. >>> coming up, out of control health care costs. it's been the buzz word the entire day today. i'm going to take you into my operating room and show you how a typical hospital bill breaks down. first, latest on other important stories. >>> thanks, sanjay. we start ou

. >> this is a ponzi scheme that would make bernie madoff proud. >> politics, i think, ended up trumping practical common sense. >> larry: with us are two distinguished americans. one a former governor, one a former senator and both physicians. both in washington, dr. howard dean, former chairman, democratic national committee. former governor of vermont. author of "howard dean's prescription for real health care reform." dr. bill frist, former republican senator from tennessee, was senate majority leader. he's a heart and lung transplant surgeon and author of "a heart to serve: the passion to bring health, hope and healing." we start with dr. dean. what, if anything, did the health care summit accomplish, howard? >> i thought it was refreshing to have people in the same room who had been at each other's throat for a year talking mostly policy. some politics. mostly policy. i think that was a good thing for both the republicans and the president. >> larry: what do you think, bill? >> well, first o all it was amazing to me after having spent 12 years here, 6 years with president clinton,

. >> this is a ponzi scheme that would may bernie madoff proud. >> politics, i think, ended up trumping practical common sense. >> larry: with us are two distinguished americans, one a former governor and one a former senator and both physicians both in washington. dr. howard dean, former chairman of the democratic national committee and former governor of vermont. and dr. bill frist, former republican senator from tennessee who was the senate majority leader. he's a heart and lung transplant surgeon and author of "a heart to serve." what does it accomplish, howard? >> i thought it was refreshing to have people in the same room talking mostly policy, some politics but mostly policy. it was good for both the republicans and the president. >> larry: what do you think, bill? >> first of all, it was amazing to me after having spent 12 years here, 6 years with president clinton and 6 years with president bush, i saw nothing like that, to have a president of the united states spend seven hours moderating in a very fair fashion some really good ideas from both sides of the aisle. i thought it

. >> as head of the investigative unit for abc, when is the first time you heard of bernie madoff? >> denied he was arrested that i was sitting in new york next to my colleague, we just is reporting on blagojevich, the governor in illinois. and my friend got an e-mail from the fbi saint bernard madoff arrested, $50 billion can. i said i don't know who that is, but it can't be 50 done because that would be the biggest in history. i soon found out. >> what kind resources did you and your unit turned over to this investigation? >> we had the entire abc news investigative unit immediately launch into action. much of it for broadcast. but there were so many great details and facts that just could not fit into the world is or not live, 2020. so we ended up doing this book. the first book i have written. >> it is your first look? >> i am a rookie at this. but i enjoyed it. and here i had as much as i wanted. >> so how did you fit right into this book into your work a? >> 4:30 a.m. was a good time to write. and they gave me a few days off over the july 4 weekend, so right out of the stands

this story in the business section deals with another name in the business world, bernie madoff, thisis from the legal section -- host: louisiana is next on our democrats line. good morning. caller: good morning. i don't believe my official should have been re-elected. he broke laws, and he's not doing any favor to even try to help the president. as far as charles, he's a doctor. he should be at the forefront of healthcare. he's from louisiana. he knows many people in louisiana doesn't have healthcare, and he knows what it's like to want healthcare and need healthcare. i mean, we do have a charity hospital in lafayette, and it's full of capacity. let's just look at the whole congress as a whole, because no matter how one of these elected officials vote, it affects the united states. the tea party, anyone who supported that tea party, one of our elected officials, don't need to be elected. and because the views is within politics, this is why the tea party is trying to build something. a lot of people's not looking at that. i watched the cpac yesterday, and i could not find a black mem

that is just bernie madoff accounting. we want to work. but we want to work step-by-step. so does the overwhelming majority of the american people. i hope we will. i hope we will. there are areas that we can agree on. but to go to the 51 votes, instead of this traditional 60 in the united states senate, will have cataclysmic effects. and by the way, the vice president said he didn't know what the american people -- i know what the people in arizona want because i've been traveling all around the state. town hall meeting after town hall meeting. phone calls, letters. they don't want a massive -- >> they say they want to get something done. on that point, the 51 votes, the reconciliation has been used for president bush's tax cuts, for welfare reform, other bills in the past. >> it's not been used for one-sixth of the gross nationa product. robert byrd, the expert in the senate, said it would be outrageous if we used reconciliation for this issue. so, i still want -- we all still want to sit down. we want to negotiate. and we want to try to get something done. but the majori

who allowed bernie madoff to run off with our money? we make these little stories around the edge but we miss the fundamental problem that actually we believe we can see through the markets but we see very little and need to develop other ways of sensing and valuing the this faulty faculty of the market fundamentalism. [applause] just a few of the reasons after we have the discussion you should get a copy of "the value of nothing." by the way everyone will be signing books afterwards, and we encourage you to ask questions on those index cards i think they were passed out or they will be if he would like to ask a question. very good. and we will come to them soon. but naomi, we were just together at the end of december at this remarkable world gathering in copenhagen for two weeks, what some called the most important diplomatic summits in history over an issue that in this country doesn't get very much attention but in the rest of the world is of grave concern and a central point for organizing. it was hard to go to any event at the -- t

receiving fiscal lectures from this crowd is a little bit like getting financial advice from bernie madoffyou know, when george bush took the presidency, the debt was $5.6 trillion. and under house majorities in the house and senate with a republican president, the debt doubled. part of the reason is the expiration of pay-as-you-go budgeting principles. don't take my word for it. the record is clear. when we adhere on a bipartisan basis with the bush i agreement, the budget 1997 agreement and the democrat passed 1993 agreement to pay as you go we set the path toward surplus. when it expired, the deficits exploded. now as we get our handed around this fiscal -- hands around this fiscal situation, my friend, mr. ryan, is in part right when he says that this is not a full measured response. you know, we've got a long journey. the speaker pro tempore: the gentleman's time has expired. mr. pomeroy: we have to begin with a solid step. restoring pay as you go budget principle is that step. i yield back. the speaker pro tempore: the gentleman's time has expired. the gentleman from wisconsin is rec

pension plans, workers would be forced to give up their 401(k) plans, into ponzi schemes that make bernie madoffook very good. there is also in the labor area the increases in taxation, not just income taxes. people can argue what level of taxes are good, but individual industries, specific ones, taxing 50% of bonuses from banks. we're not talking about taxing waitresses steps, a similar form of compensation bonuses, but we're picking on one particular industry. that brings us to capital. banks need to land but they are putting more constraints. the latest headline in the "financial times" was a tax on bank liabilities, but more liabilities, the higher taxes. if you want banks to lend, then they have more liabilities. why are we trying to shrink their liabilities? it does not help any small business that wants to borrow from we have credit card regulations where credit card companies are required to take anybody that comes. there are certain types of transactions that are not allowed. it hurts the most vulnerable among us. then there is what we can do to physical capital that this administration

pension plans, workers would be forced to give up their 401(k) plans for ponzi schemes that make bernie madoff, the increases in taxation, not just income taxes. everyone can are you what level of taxes are good, but individual industries -- talking about taxing 50% of bonuses for banks. we're not talking about taxing waitresses tips, a similar form of compensation as bonuses, an extra amount on top. we are picking on one particular industry. that brings us to capital. banks need to land, but they're putting more constraints -- the administration and congress want to put more constraints. i read an article where a tax on bank liabilities, the more liabilities, the high attacks. if we want banks to lend, then they have more liabilities. while we try to shrink their liabilities? it doesn't help any small business that wants to borrow from a bank. we have credit card regulations were credit card companies aren't as its required to take anybody that comes. there are certain types of transactions that are not allowed. this makes the interest rates for everyone to love, including the most but normal

the senate budget committee chairman said it is a ponzi scheme that would make bernie madoff proud. when you look at medicare cuts this bill treats medicare like a piggy bank. it raids money to spend on the new government program. when you look at what this does is according to the chief actuary of medicare he's saying as much as 20% of medicare's providers will go out of business or will have to stop seeing medicare beneficiaries. many seniors who chose medicare advantage will lose coverage they now enjoy. you can't say you are using the money to either extend medicare sol general si and offset the cost of the new program. that's double counting. when you strip out double counting and what i call gimmick. the full ten-year cost of the bill has a $460 billion deficit. the second has a $1.4 trillion deficit. probably the most cynical gimmick in the bill is something we probably agree on. we don't think we should cut doctors 21% next year. we have stopped the cuts from occurring every year for the last seven. we call this the doc fix. according to your numbers that costs $371 billion.

the senate budget committee chairman said it is a ponzi scheme that would make bernie madoff proud. you look at medicare cuts this bill treats medicare like a piggy bank. it raids money to spend on the new government program. when you look at what this does is according to the chief actuary of medicare he's saying as much as 20% of medicare's providers will go out of business or will have to stop seeing medicare beneficiaries. many seniors who chose medicare advantage will lose coverage they now enjoy. you can't say you are using the money to either extend medicare sol general si and offset the cost of the new program. that's double counting. when you strip out double counting and what i call gimmick. the full ten-year cost of the bill has a $460 billion deficit. the second has a $1.4 trillion deficit. probably the most cynical gimmick in the bill is something we probably agree on. we don't think we should cut doctors 21% next year. we have stopped the cuts from occurring every year for the last seven. we call this the doc fix. according to your numbers that costs $371 billion. it w

. >> it is "the madoff chronicles," includes a bernie's little black book you can see in the right hand corner. the author, brian ross. >> coming up next book tv presents "after words," an hour-long discussion between a guest host and the author of a new book. this week, john yoo, law professor at the university of california berkeley and deputy assistant attorney general at the justice department's office of legal counsel from 2001-2003. he talked with his latest book, "crisis and command." it looks at the history of executive power going back to president george washington. professor yoo discusses this book with victoria toensing. and a founding partner at the digenova & toensing. >> host: hello, i am victoria tensing, and welcome to "after words." i am interviewing john yoo, law professor. visiting scholar for the american institute, the american enterprise institute. former debian assistant attorney general for the justice department. i had a similar position, but it was a few years before john's. and i was in the criminal division. he was in the office of legal counsel. author of t