and dubai and elsewhere.tion, does the trouble in dubai affect the port situation in u.s., as i recall many ports here are kind of dubai management? guest: good point, yes, we have many ports that are managed by dubai. and it was a hot potato at one point. it should not impact our ports from a security standpoint or otherwise. host: why does this matter? why should we care about dubai? guest: i don't know that you care about dubai but what it bsz the -- what it says about the rest of the system. it's a city built on debt, it's the ultimate representation of capitalism and represents a larger problem not just in the united states but around the world. and raises a question of what other emerging markets are time bombs. and are we going to be problems? and how will that revirbrat and come back to the united states? this is an economy that is not flat. host: andrew, thank you for being with us. guest: thank you for having me. host: afghanistan the present strategy is outlined this past week. and the senate will

light of the dubai world default. does the railroad agreement represent a shift to an alternate form of economic activity? >> thank you. i'd invite anybody else's comment on that because i'm not an engineer and i'm not a conductor and not an economist either. it's seen as an additive and not as a competitive. on the other hand, analytically it is seen as competitive. and what i have to say here comes from two of dubai's leading economic strategists, analysts, decision-makers. and both of them have told me that when sa-lalla in oman is connected to this railway network, and it's not at this point, even in terms of the feasibility planning, we see ourselves losing up to 20% of what we have now. why? because for the traffic going in the gulf, the bulk is going for the markets in iran by way of dubai. and they know every inch of the 550-mile southern iranian coastline there. but it's a detour to go into the gulf. if you think of the east/west maritime routes heading west towards the suez canal to the atlantic and beyond,

we started the week with financial-related news with the dubai situation and actually traded really, really well. the news this morning with the jobs report, we initially traded great and then we sold off. it's kind of a confusing week and hard to put your arms around it. >> the dubai incident didn't prove to be a big problem. as far as the overhang is concerned, we talk about these deals balanced budget extremely diluted, but the fact is, we know, we knew before the bank of america secondary came along that this was going to happen. i think citibank was the one that we're interested in happening next. we've got to figure out what the u.s. government is going to do. >> i would imagine the option activity is not very active. citi is only a $4 stock. >> it's a $4 stock but the markets are only a penny wide, so you've got professionals getting in there, trying to make something happen. but dan talks about the markets rolling over this morning. that's not entirely unexpected. we had seen the s&p example didn't want to be away from $1100. we have seen that before. everyone wants to take t

dubai will get $10 billion in emergency funds, to save its state-owned conglomerate "dubai world" from default. and on wall street, the dow jones industrial average gained 29 points to close at 10,501. the nasdaq rose 21 points to close at 2212. those are some of the day's main stories. i'll be back at the end of the program with a preview of what you'll find tonight on the newshour's website. but for now, back to jim. >> lehrer: this is make-or-break week for negotiators at the climate summit in copenhagen. ray suarez is there, reporting for the newshour, the word from him tonight is that efforts to craft a deal are moving very slowly. >> suarez: it was one more demonstration of how tough it will be to get agreement in copenhagen. a 1997 treaty, the kyoto protocol, threw the 2009 talks into temporary disarray. >> suarez: a bloc of developing nations, led by african countries, walked out. they said developed nations had done too little to cut greenhouse gases, under kyoto. lumumba diaping of sudan heads the 135-nation bloc. >> we are not afraid. we know that the developed countries hav

senator dodd talked about the international baubles and what happened in dubai, but i

also, and looked at by's economy and its impact on other -- a look at dubai's economy with andrew ross sorkin. live at 7:00 a.m. eastern here on c-span. >> this week on "the communicators," discussion on fcc efforts to adopt formal rules regarding net neutrality. joining us are representatives from the open internet coalition. >> gentleman, if you would, just give us a basic 101 about your organization, why it was formed, and who the members are. >> sure. i am in washington -- a washington lawyer who was asked to assemble a coalition of companies like a day, amazon, google, others, stakeholders, consumer groups, civil rights organizations, people who use the internet to help advocate for the federal communications communication, policies that preserve and open the internet. >> yes. netcompetition.org was formed three years ago. it is pro-competition, free- market oriented, and it represents broadband interests. literally the entire sector. some include large companies people know, the two cable using your line to connect to them to inspect the kind of content that is traveling over tha

but it remains to be seen how long dubai can hold its commanding lead. decision makers calculate they will lose 20% when that happens. they can offload at salalah and take it to athens and places beyond, and not ship with a degree that they have done thus far. >> let me go back to the human question and come at it from the other side. in the final communique, the yemen position is coupled with a prior statement about saudi arabia's rights to defend its territorial integrity, its cultural integrity, and how would you respond to so much of the western reporting and other members of the gcc seeing the threat of saudi arabia from the immediate the sport -- and meet the speech from yemen? and the other question, whether there is something approaching a war here where the shi'a threat is being staged from yemen has a serious threat to the kingdom? >> it is difficult to know because it is in the most remote regions of yemen, the northernmost regions. it is not far from the sadr and -- the saudi arabia and south. it is also one of the most inaccessible in saudi

from there i was in delhi and dubai to washington, d.c. much oversight do you think homeland security has or the president has when it comes to these issues? we're dependent on a lot of different people. we still shouldn't lose sight of exactly how many flights are going out. over the last ten years the bureau of transportation estimates about 99 million flights that have touched the united states, sort of coming and going over the last tennessee years. only six are tied to terrorism-related issues, four from 9/11, richard reid was one of them and this one. if you think about it statistically the chances are to say unlikely doesn't do it best. the sky is not falling. we need to be careful about that. >> larry: is there a dangerous we're overreacting based on the statistic jack just gave us? >> i think it's lessons learned, and we need to examine at all times if there was a failure. we don't want to say that because the statistics are in our favor that we can't look at the incident and see if anything else can be learned. there's a very goo

don't you think dubai is a little bubble of the west in the east than even you can cut down dubai intofurther slices and you can look at it as both western and eastern and also mixtures in between? this was something that kind of did not lead into a deeper conversation. just to say that it seems that there's a -- there's a new elite that is running iran these days and they are quite divorced from the revolutionaries who overthrew them in the 1970's and even the first generation who had a good 30 years through the diplomatic postings or through philosophical things in the east or the west and then their kids grew up and they went to university and some of them grew up in denmark or the u.s. or canada. and so you have this whole new generation, many of whom were in the streets. i call them the third generation who are even more capable of seeing things in the shades of gray. then you have the second generation who is in power today. and many of the people in power today come from the revolutionary guard. and many of these people while their colleagues were off in copenhagen and paris and

when the bush administration said they wanted to relinquish control to a dubai company, yeah, it's arisis. it's not about the airport. i never said that. and until we look at it in a global way, we are not going to be anything by reactive. >> larry: last night on the show. someone said jan net napolitano should resign. >> i don't think so. she was not making something up. and whoever told her that, that is who should be fired. i think he was taking orders and that is the scary part about this. >> i don't have a basis for mowing that somebody whispered in her ear, here is what you say sunday -- >> larry: you have not heard the last of this. thank you very much and happy new year to you both. actor charlie sheen was arrested by allegedly assault hig wife brooke on christmas day. her lawyer speaks to us in 60 seconds. >> larry: welcome back. on christmas morning, actor charlie sheen was arrested in ap espn colorado. let's listen now to the 911 call made by charlie's wife, brooke. >> tell me exactly what happened. >> my husband had me, with a knife and i'm scared for my life and he threa

ports to a dubai company but then we still don't want to inspect containers coming from overseas, yes is a crisis. it is not just the airport. i never said that. until we look at this in a global comprehensive way, we'll be nothing but reactive. >> larry: last night on this show, dan burton, the congressman from indiana, said that janet napolitano should resign. should she? >> i don't think so. this wasn't janet napolitano going rogue and making something up. she was given a directive to defend the system. and whoever told her that, that's who should be fired. i think janet napolitano was taking orders. and that's the scary part about this. >> i don't have any basis for knowing that somebody whispered in janet napolitano's ear to say this is what you say on sunday. i'm not that much of a conspiracy theorist. >> larry: you haven't heard the end of this. actor charlie sheen was arrested for allegedly assaulting his wife on christmas day. >> larry: welcome back. on christmas morning actor charlie sheen was arrested in aspen, colorado. charged with domestic abuse, criminal mischief, menac

we want to be confident that is one to be supervised and some basic pat dubai. again the incremental capital needs relative to what is identified under the stress test. those of the issues ahead. >> two of those board members are treasury picks or whatever. how much interaction do you have with people on the board? >> we have what you would expect in not more than you fear in the sense that again-- >> my fears are rampant. >> i'm not sure what your fears are. our obligation is to make sure again that there is in place a plan for getting back the viability that has a reasonable prospect of working. we want the new management and board taking a fresh look that amount that to be as strong and robust as possible. at the same time of course we need to reassess what the increments of capital needs would be and that is the process we are undertaking now. >> okay, my time is up. thanks. >> mr. sellars. >> mr. secretary i would like to shift in terms of a fine down with the large banks. my "new york times" this morning tells me that something we all kind of already knew,

with their integration into global economic trends, so when we look at countries like turkey, like dubai, malaysia and indonesia we see medal classes that are getting enriched by the global economy that see their future as religious but the kind of religion they follow is in some ways globalization so it is conservative, it is paez but it supports capitalist activity in living harmoniously with others in a global economy. >> what ramifications to is the business class have an american foreign policy? >> we don't pay as much attention to them as we ought to. we don't think of the fact of what transform china transformed india, transformed latin america, eastern europe and asia that created a stable, prosperous democracies was the middle class in those countries that were dependent on private sectors that were integrated in the global economy and we don't think in the muslim world you are not going to get them to where brazil, argentina taiwan or unless the same class the gut those countries to where they are also becomes an power in the muslim world so we are looking for the solution and

all of a sudden, this little place called dubai became worldwide news and moved equity markets around the world because of concerns about debt level and the question about how much debt there is, not in the government face but government-related entities. recent reports say that debt in that small country is i was in did you

for example, they asked me about the west against the east, and i said that dubai and was a little bubble of the west into the east, and you could even cut it down into further slices and look at it as being both western and eastern and all sorts of and eastern and all sorts of pictures in there is a new elite running who ran right now, and they are divorced from the revolutionaries of 1979. this is a generation who had a good 30 years through philosophy and courses in the west or even the easy to get the grips with this world, and their kids grew up, and they went to university, and they went to denmark for the u.s. and canada, so you have a whole generation who are even more capable of seeing things in shades of gray. then you have the second generation, who seems to be in power today, and many people in power today come from the revolutionary guard, and many of these people, while their colleagues are often copenhagen and washington, they were fighting. they were defending the country in the trenches of the war for eight years, and they did not have the opportunity to do this. . runnin

a look at the dubai economy. following that. a discussion on the debate and the senate in the healthcare legislation. that's live at 7:00 a.m. eastern here at c-span. >> as we get better and better at what we do, we run a risk of overconfidence and ar owe against. he's our guest tonight on c-span's q and a. now highlights from saturday's senate debate starting with senator john mccain. this is a little over an hour. minority now has -- the republicans now have 45 minutes for debate. mr. mccain: mr. president, i ask unanimous consent that -- the presiding officer: the senator from arizona. mr. mccain: the senator from utah, the senator from kentucky, the senator from new hampshire, the senator from georgia, the senator from florida, and the senator from idaho -- wyoming be included -- they all run together out there -- be included in the colloquy if that -- the presiding officer: without objection. mr. mccain: mr. president, very quickly, i just want to remind my colleagues that the aarp continues to be referred to as endorsing t

what we had in china to what we saw in due -- dubai and warnings that we can't maintain our economy ifake steps to change the path. we are taxing too little and spending too much. again, not something i was worried about during the downturn. even this year i think deficit cuts are appropriate as the economy recovers, but we need a plan in place to get us out of this fiscal disaster. a compligs is a really good idea. certainly picking a goal to get the debt under control is critical. host: craig says w w. added $5 trillion. guest: there is no one that should be seen as part of the problem. neither one is a fiscaly responsible party. unfortunately what we see is the party that's out of power kind of talks about things that are irresponsible not because they are so concerned about budget debt as it is a good way to stop the policies of the other party. and the reason is, this is hard. it is hard to say to voters i am going to reduce government spending or raise taxes even though that is what -- clearly what the government budget says we have to do. they are promising et voters more things

>> how does the road development you describe to play against dubai as being a financial center? does this represent a shift to an alternative form of economic activity? >> thank you. i am not an engineer so invite anybody else to comment on this. i am not an economist, either. it is seen as an additive, not as a competitive. on the other hand, analytically, it is seen as competitive. faugh what i have to say here comes from -- what i have to say here comes from analysts and decision makers. both of them have told me when one city in oman is connected to this network and it is not at this point feasible, we see ourselves losing up to 20% of what we have now. why? because traffic going into the gulf, the bulk of it is going to the markets in iran. they know every inch of the 550 mile coastline. it is a detour to go into the gulf. if you think of the east and west maritime routes heading west toward the suez canal and beyond to europe, it is one and half days of detour with the fuel and monetary savings and insurance, plus you have to go through a street where boards of london will

people from dubai. they are our strongest allies.ined, they were planning, all in afghanistan. afghanistan was the staging ground for 9/11. the question is not whether the terrorists will come from somewhere else, the question is that afghanistan, without viable security to protect of the territory, having free rein the terrorists will bring it back to where it was before 2001, a staging ground for extremist groups that could pose a threat to the united states. the question is not to change -- chase their nationality, the question is to make sure that afghanistan cannot serve as a safe haven and staging ground for al qaeda like it did before 2001. host: the question of corruption, i am wondering if you could talk a bit specifically about the u.s. concerns over corruption in the karzai government. guest: we take this issue very seriously. we have been at the forefront of criticizing corruption in afghanistan. it is no secret that the u.s. was very vocal in challenging the karzai government to address this issue. we have been very vigi

and then i said, do not think dubai is both western and eastern and mixes in between?his was something that did not lead into ideal conversation. that is just to say that it seems that there is a new elite that is running iran these days. and they are quite divorced from the revolutionaries who overthrew the shah in 1979, who had a good 30 years through philosophy courses in the west or even in the way east to get it -- get to grips on this world that they had burst upon so angrily. and their kids grew up and they went to university and some brought in denmark or the u.s. or canada. you have this new generation, i call those the third generation, who are more capable of seeing things in shades of gray. then you have the second generation in power today, and many of the people in power today come from the revolutionary guard. many of these people, while their colleagues were off in copenhagen and paris and washington, learning the west, they were fighting and defending their country in the transience of the iran-iraq war. y or another, and cannot actually taking executi

if you think about the problems created -- created in world markets by the fact that dubai defaulted on $40 billion of debt, think of what it would mean to global markets if the united states were to default on on $12 trillion of debt. for those who say, well, this is obama's fault, no. this is not obama's fault. he has been in office 11 months. and i would remind everyone that he walked into the biggest mess in 70 years. deficits and debt exploding, economic growth plummeting. all of that was happening before barak obama became president of the united states. he did not create the economic mess. he inherited it. he did not create the fiscal mess. he inherited it. those are things that he had to take on as the new president. there were record deficits and a doubling of the national debt. there was the worse recession of since the great depression, financial market and housing crises. ongoing wars in the iraq -- in iraq and afganistan. an unsustainable long-term outlook. when president obama came in, this is what was happening to deficits before -- before he took office. the deficits

we want to be confident that is one to be supervised and some basic pat dubai.again the incremental capital needs relative to what is identified under the stress test. those of the issues ahead. >> two of those board members are treasury picks or whatever. how much interaction do you have with people on the board? >> we have what you would expect in not more than you fear in the sense that again-- >> my fears are rampant. >> i'm not sure what your fears are. our obligation is to make sure again that there is in place a plan for getting back the viability that has a reasonable prospect of working. we want the new management and board taking a fresh look that amount that to be as strong and robust as possible. at the same time of course we need to reassess what the increments of capital needs would be and that is the process we are undertaking now. >> okay, my time is up. thanks. >> mr. sellars. >> mr. secretary i would like to shift in terms of a fine down with the large banks. my "new york times" this morning tells me that something we all kind of already knew,

senator dodd talked about the international bubbles an what's happened in dubai. but i would like to talk about the bubbles, the potential bubbles here in this country. this last crisis was a result of a massive bubble focused probably on real estate and there's been a lot of attention lately on the fed's zero interest rate policy and whether it's helping create new bubbles. the worry, of course, is is it going to be about instant replay, different acteders, different script, same horrible outcome in terms of the movie, the horror movie we just went through. raising interest rates is one answer to deal with the bubble, but that's obviously tricky. i'd be worried about raising interest rates because it would hurt getting people back to work, which should be our number one concern. so could you talk a little bit about what can be done to deal with these potential bubbles before they burst given that you don't have the tool of interest rates as easily available because of the difficult economic situation? and then give us a little bit of your thinking on whether inte

for example, they asked me about the west against the east, and i said that dubai and was a little bubble of the west into the east, and you could even cut it down into further slices and look at it as being both western and eastern and all sorts of pictures in between. this is something that did not leak into a deeper conversation. but anyway, just to say that it seems that there is a new beat that is running iran these days, and they are quite divorced from the revolutionaries who over the shock -- overthrew the shah in 1979. their kids than grow up, and they went to university, and maybe some of them grew up in denmark or the u.s. or canada, so you have this whole new generation, many of whom were in the streets, and i called in the third generation, who are even more capable of seeing things in shades of gray. then you have this second generation, and many of the people in power today come from the revolutionary guard, and many of those people, while their colleagues were off in copenhagen and paris and washington, understanding and grappling with the west, they were fighting. they we

senator dodd talked about the international bubbles an what's happened in dubai.ut i would like to talk about the bubbles, the potential bubbles here in this country. this last crisis was a result of a massive bubble focused probably on real estate and there's been a lot of attention lately on the fed's zero interest rate policy and whether it's helping create new bubbles. the worry, of course, is is it going to be about instant replay, different acteders, different script, same horrible outcome in terms of the movie, the horror movie we just went through. raising interest rates is one answer to deal with the bubble, but that's obviously tricky. i'd be worried about raising interest rates because it would hurt getting people back to work, which should be our number one concern. so could you talk a little bit about what can be done to deal with these potential bubbles before they burst given that you don't have the tool of interest rates as easily available because of the difficult economic situation? and then give us a little bit of your thinking on whether intere

we want to be confident that is one to be supervised and some basic pat dubai. needs relative to what is identified under the stress test. those of the issues ahead. >> two of those board members are treasury picks or whatever. how much interaction do you have with people on the board? >> we have what you would expect in not more than you fear in the sense that again-- >> my fears are rampant. >> i'm not sure what your fears are. our obligation is to make sure again that there is in place a plan for getting back the viability that has a reasonable prospect of working. we want the new management and board taking a fresh look that amount that to be as strong and robust as possible. at the same time of course we need to reassess what the increments of capital needs would be and that is the process we are undertaking now. >> okay, my time is up. thanks. >> mr. sellars. >> mr. secretary i would like to shift in terms of a fine down with the large banks. my "new york times" this morning tells me that something we all kind of already knew, which is that city would very

so when we look at countries like turkey, dubai, malaysia, indonesia, we see middle classes that are getting enriched by global economy that see their future and interest in global economy are religious but the kind of religion they follow is in some ways globalization-friendly so it's conservative. it's pious but it supports capitalist activity and living harmoniously with others in a a global economy. >> what ramifications do the business class have on american foreign policy? >> well, we don't pay as much attention to them as we ought to. we don't think of the fact that what transformed china, transformed india, transformed latin america, eastern europe and asia created stable, prosperous democracies was the middle classes in those countries that were dependent on private sectors, that were integrated global economy. and we don't think that in the muslim world you're not going to get them to wear brazil, argentina, taiwan wear where it becomes empowered in the muslim world. so we're looking for the solution in the muslim world without looking at what is the force that's supposed t