christina romer to talk about the cash for clunkers program. in this commercial break we have some of mark haines owe homegrown tomato '. when this hotel added aflac to compliment their benefits package aflac! it made a big splash with the employees yeaaaahhhh! find out more at aflac!... ...forbusiness.com (laughter) >>> joining us is matt schapiro. i apologize, you'll have lots of energy for us, matt. good to be be you on this friday. gdp, what is your take on the market reaction? better than expected headline. obviously some of the consumer numbers in tland there. >> we've been building up to it all week, erin. and trading here on the cboe and the volatility futures, they were kind of predicting a correction that we didn't have and it really swept out the shorts with the rally yesterday. so kind of the response this morning, we're a little flat. it's going to be kind of muted. i think a lot of traders down here will be trying to get out of options premium.m. i don't think a lot is going to happen and everybody is going to look to get out of h

christina romer. we'll get her take on the prospects for recovery this year. plus are emerging markets getting too pricey for investors on "fast money" final call. and after the bell taxing the rich to pay for health care reform. we'll debate whether the plan makes sense. first a look at the most active stocks on the new york stock exchange led by bank of america and citigroup. access tfavorite courses) pommrites peaps a night at the theater wi extra special seats additional hotel ght, o treat yorld in perfect harmon pceless look for world on your mastercard to g rewards and offers thatatter to you. >>> welcome back. good to see you. let's take a look at today's business headlines. swiss drugmaker roche saying its carciva cancer drug improved the survival of patients with advanced lung cancer when used right after initial chemotherapy. roche says it will use the findings to support its filing of the drug as a firstline maintenance treatment for lung cancer in the u.s. and europe. meanwhile, a federal

. >> well, christina romer has said they're going to come out with their new projections in large part because the work she did along with jared bernstein obviously had the wrong projections when it took a look at the stimulus package. but the issue here is nobody really understands the urgency, and what the american people are now starting to distrust is that urgency. we all collectively agree we need to do something about costs, we need to do something about the uninsured. the question is how do we do that, and why do we have to have a gun to our head to do it, and that's what people are becoming angry and impatient about. >> remember vice president biden a week or so ago said they misread the economy. then he said no, we just had incomplete information. and now the white house is asking members of congress to take a very important vote with incomplete information, and i think it's imprudent. sean: it's cumulative because they're passing bills they haven't read, the stimulus bill, the cap and tax bill, a lot of these congressmen are feeling the pressure. let me show you how bad it go

christina romer is here. we'll have the conversation with the doctor here after this. serve. ♪ to deliver the technologies... vital to freedom. ♪ to help carry hope to those in need. ♪ around the globe, the people of boeing... are working together -- for what matters most. that's why we're here. ♪ could save 'em hundreds on car just telinsurance.e geico it's actually doing it. gecko vo: businessmen say "hard work equals success." well, you're looking at, arguably, the world's most successful businessgecko. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, pecially if it's marked "the gecko." come on people. >>> good friday in the morning. i'm contessa brewer. government figures released just this morning show gross domestic product fell 1% in the second quarter better than the 1.5% than expected and better than than the drof-off from the first quarter this year when the gdp fell 6.4%. how do we characterize t

the second point, on your very network, christina romer repeatedly said we'll do whatever it takes. she was pressed. will there be another stimulus? >> i might not have been seeing the same interview you saw, but i saw joe biden say point blank he's not blaming the previous administration this is now this administrati administration's problem. i think it is very refreshing to have an administration taking responsibility. the previous one never did. and kept digging holes deeper and deeper. >> here is the problem, okay? the first part of stimulus hasn't worked enough, whyo we think sometng of morethat sn't worked is going to work? >> a lotof onomists saying that obama needs m money in the stimulus to be able to patch up e economy. world r ii was what broughts of the great depression ultimately in addition to the spending by fdr. by comparison, the $787 billion stimulus is in a drop in the bucket. >> it's not a drop in the bucket if they spend it better. isn't the real problem the execution, not the dollar number? >> that's a big part of it. the part of the spending that's already gon

he has got christina romer. neil: when he is awake. >> he has got to use surrogates.t hillary clinton has to go to asia to get air time, if there is something wrong with the president hogging the airwaves -- if hillary clinton has to go to asia, there is something wrong. they took regis philbin off even though he is giving away money, and this guy is taking money. so what has to happen here? he is the best salesman. you're absolutely right. he has got to pace himself, be selective, or he will diminish his credibility. neil: the less he stands to repeat what regis philbin did and the more likely he can sell this? >> absolutely. neil: the more distance away, the more people are raising hackleckles about it. >> no matter how good a salesman -- you know, you can not pour perfume on a skunk. gary re-or chuck schumer or nancy pelosi. he is the best they have -- harry reid, chuck schumer, or nancy pelosi. neil: thank you very much. >> thank you, even though you bad mouthed be at the beginning -- me at the beginning. neil: i did, did i not? in 1977, an 8-year-old boy picked u

ed burnstein, the chief economist for the vice president, and kiss tina roamer, they did a -- christina romer, they did a paper that plotted what the economy would do without the stimulus and with the stimulus. look at where the economy is. andrew: these unemployment projections were made by president obama's economic team back in january. >> yes. what what it shows is that their performance is worse than they thought it would be if they did nothing. andrew: now you're looking at the actual unemployment figures, and you can see the difference, the green, between the gene and the red, what the actual unemployment is just about 10% and what they predicted it would be, somewhere down around 8 1/2%. >> exactly. andrew: don't they know that all the borrowing and spending they have been doing has not only made unemployment less, it's made it worse? >> it really has made it worse. it makes perfect sense. i mean, if you tax people who work, and you pay people who don't work, don't be surprised if you find a lot of people not working. this program takes from people who are workers, and gives to people

same with christina romer. reality check? >> they botched it. sean: hannity right. >> they botched it, and one of the most important things you can do to improve confidence is you have to set expectations, and part of setting expectations is lowering the bar, not raising the bar, and the expectations going into this were far too high. even if the predictions were that the jobs were going to come in 2010 or 2011, it was the wrong type of stimulus package. sean: i hate to say alexis was right, but you underpromise, you overdeliver. they way overpromise. when joe biden has to admit we misread the economy, we guessed wrong, unemployment they're saying is much higher than what they promised it would be if they passed the stimulus. >> not only that, but in the op-ed that president obama wrote which i thought was quite incredible. you save those for big moments. but something that was missing was that they were going to create or claim 3 or 4 million jobs, and now that is no longer around. sean: we lost 3.5 million jobs since january. >> 9.9%, probably

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yesterday we had christina romer on from the white house who talked about where the jobs will be.sked her straight out, how do you measure how many jobs have been been saved or created so far. sley said it's not measurable. where will the jobs be? >> what we know is households are going to need to rebuild their wealth. the dominant feature of this particular down touch. i'm not looking for things coming out of household spending, those kind of things.. i'm looking for recovery that's sustainable in business spending in and in net expores, good places to see the economy firm up. >> business spending and exports, you hit on two very important elements too an economic recovery. are you optimistic that you're going to see business increased spending? businesses have been under pressure. what is it going to take for businesses to increase their investment, increase spending? >> three greens. number one, you want to have a little bit of a stabilizing of the household sector.r. you're not going to invest in something unless there is some market out there. number two, some easing of the c

studies, 2/3 of small business profits would be hit by those taxes, and i want to look at what christina romer, the head of the president's council of economic advisors, said a couple of years ago when she was a private economist, tax increases appear to have a very large, sustained, and highly significant negative impact on output. mr. orszag, wouldn't raising taxes that much on small business profits be a job killer. >> no, i don't know where you got your 2/3 number from, the vast majority -- >> the federation of independent businesses. >> would not be affected. i would be happy to refer you -- >> not 2/3 of businesses, 2/3 of profits. >> i understand. and again, what we are trying to do here, is a fiscally responsible health reform, i have actually run a small business and i would be happy to speak to folks about this. the most -- >> you have to pay 57%. >> the most important thing for small businesses is getting the economy back on its feet. that -- the key driver of small business activity, is demand for their product and that is what we are trying to do, getting the economy back on its f

i would recommend that you read christina romer, who is an expert of the great depression.: some of the items that you have written regarding the stimulus is "why the stimulus will not work" and "do stimulus packages work?" our last call is gone. we are done for this particular segment. thank you for being on the program. we are going to take a short break. when we come back, stimulus oversight and its disbursement in the state with pennsylvania gov. ed rendell. >> robert mcnamara and died on monday at the age of 83. this sunday we will agree air his book tv program when he discussed his book "in retrospect." he was defense secretary during the kennedy and johnson administrations. that is this coming saturday, 6:00 eastern. >> the u.s. government? >> private investors. >> i think some of it is government-raised. >> probably donations. >> probably from my tax dollars. >> america's cable companies created c-span as a public service. host: we are talking about stimulus oversight when gov. ed rendell of pennsylvania. what systems are in place to track the use of stimulus funds

obama administration made what you might call a strategic mistake which is back in january, when christina romer and jared bernstein issued the report that said -- >> top economic advisors. >> to the president, with the stimulus bill, we can keep unemployment around 8%. now, you have the administration, girding people for the fact it will go over ten and might go up to 1i678 and i think that is a real problem and then you have to ask, gee, if you diagnose the problem, wrong, did you also get the -- diagnosed the problem wrong did you get the medicine, the solution wrong which obama was asked and she said absolutely not, i want you -- >> look at his op-ed in the "washington post," it is revealing and the word taxes and regulations and incentives, nothing about hiring and he has a nice thing, increase this number of people getting degrees from community colleges and that is fine, but who will hire them? what incentives is he giving small or big businesses to hire employees? none, and -- >> the republicans have no ideas. >> you know, here's three ideas, cancel cap-and-trade, pull the bill, cancel t

christina romer, have suggested that the tax hikes that will be required to pay for the democratic health care plan will result in the loss of an additional 4.7 million jobs. in addition, mr. speaker, the democratic proposal will force drastic cuts in medicare advantage, causing millions of seniors to lose their coverage for prescription medicine, the cost of private health care will skyrocket, and one group estimated that 114 million americans will be forced out of their current private health care coverage and into government-run health care plans. mr. speaker, the democrats' job-killing health care proposal is the wrong prescription. it will cost millions of jobs. americans need a second opinion. i yield back. the speaker pro tempore: the gentleman's time has expired. for what purpose does the gentleman from ohio rise? >> i ask unanimous consent to address the house for one minute. the speaker pro tempore: without objection. mr. latta: mr. speaker, the people of the fifth congressional district in the state of ohio in the united states all want a job. last year at this time, the fifth

christina romer using her model would be that we would have created twice as many jobs at half the costgiven the fact that unemployment continues to rise we probably could have created ten times as many jobs as they have because their plan is not working at all. >> yesterday in an e-mail [inaudible] you think before voting on it as well as the case made available to the public 72 hours beforehand. >> i asked my colleagues to go sign a petition at let freedom ring.org that has this commitment. >> speaker pelosi downplayed the idea that you had any of the bills -- [inaudible] making health care reform bill. >> they don't want people to read this. they might find out how ridiculous it is. if you've watched how they've brought these major bills to the floor, they bring them to the floor, they bring a big amendment in the dead of night and pass it before anyone has any clue what's there. because as we found out when i went through the 3 16 page amendment that was filed at 3:09 a.m., members were appalled at what was just in the amendment. and i didn't even get through the whole amendment. ca