we don't know in modern economies what helps an economy continue to grow and to remain strong and to prosper as it inknow vates, particularly as the economy and the culture and the society becomes relatively well off. it is a known phenomena that it is hard for individuals who are relatively well off to take outsized risk and put everything on the line. back to my original story, if you think about the swimmers in the contest, in order for the united states to prosper, we

that were not participants in the global economy 30, 40, 50 years ago. and we have a huge number of individuals in those countries who were not part of the global massive of international consumers. they were behind the iron curtain or the bamboo curtain in very rigid economies. state-owned -- state-controlled economies with very little real economic opportunity. and now we face a very different world. we face a world with a number of rapidly emerging economies that are major players on global finance, on global trade, on global technology and on many other areas as well. so we need to find ways of ensuring that in this system that was developed and nurtured after the war we find a place for these emerging economies to play a role. they benefited enormously from the system. now i think it's just as important that they assume greater responsibilities for that system. and this is a rules-based system so gradually one of our goals, one of our challenges is to bring these countries into the global system in a constructive participatory way where they guideli

and based on the needs of our economy and the globalization of the economy, we have to keep doing that. i talk to small businesses that would like to go global. they need someone who speaks languages, who knows the cult e culture, who can market for them. they can't get visas in or out, and it's difficult. and similarly for countries to invest in jobs, and many of them have a terrible time and like a third of people from china to invest and create jobs are turned down and not able to get through the immigration process. it's broken in a lot of ways. and there are many parts of the policy that are a huge problem for the economy. >> you have been over 30 year for the partnership for new york city. >> i guess so. >> and you told us earlier you have 50 people. what kind of money do you have to raise every year? and i know you are involved in other associations to raise money too. >> yeah, our annual budget is about $12 million a year. >> and what do you spend that on? >> mostly people. >> and do you lobby yourself? >> i do. >> do you have to register. >> well, not in washington, i am state

what is the proper balance for the fed between academic and business views on the economy? >> depends on whether you speak to someone with an academic background. [laughter] >> first let me say i got an e-mail from john williams this morning in response to my congratulatory e-mail over the weekend coming and he pointed out, john is a ph.d. economist and has a different background than mine to people born in the san waukee and valley of california are on the fomc. this is on president i want you to know. all the people in bakersfield, modesto and fresno should be proud that we've made it. if you're from that part of the world did you know why we should be proud, right? i think it's healthy to have a mix on the fomc. i have many colleagues who are ph.d. economists who pursue their careers largely in the economics profession, largely domestically in the academic world or in the federal reserve and the of course bring perspectives to the table that i don't have or at least not deeply embedded in my mind, and i think the few of us that have business experience try hard to bring

economy, frankly. we export about $60 billion a year to japan or about 5% of our total merchandise exports" >> reporter: one of the biggest u.s. exports to japan is the construction equipment. so that sector might actually benefit as japan rebuilds. erika miller, "nightly business report," new york. >> tom: here are the stories in tonight's n.b.r. newswheel: retail sales rose at their fastest pace in four months in february up 1% to $387 billion. but analysts say rising commodities prices helped boost wisconsin governor scott walker signed into law a bill taking away nearly all collective bargaining rights for the state's public workers. walker said the law will create enough budget savings to rescind layoff notices sent to 1,500 workers. talks between the n.f.l. and its players union collapsed this afternoon. the players are moving to de- certify their union that would allow them to file an anti-trust suit against the league. nfl owners are expected to lock the players out. >> tom: still ahead, presid

of the twentieth century have been mixed economy state market economies i mean what would roosevelt's new deal was an attempt to introduce a large state sector into what had been an uncontrolled private sector tried to do the reverse to introduce market into a state economy the chinese did it the hungary and had done it even before but short of course it's doable but it's going on around the world you know if it was going in reverse direction because what do you think that that's the data that's the difference but on the other hand there's no evidence that it wasn't possible i mean it's a long process and i don't actually agree with jeffrey in the sense that he didn't carry the process through to the end you would have had to have the temperament in the power of stalin to impose full democracy on russia in one thousand nine hundred nine hundred ninety the problem was group which off was the quintessential anti stalinist he had come to dismantle the system and let me remind you of one other thing i admit i've known going to. for twenty years i'm not entirely objective to be fair but ge

the economy scaled to new heights. an average annual rate of 11.2% to reach 38 trillion. annual revenue increased to 3 .1 trillion yuan. major breakthroughs are attained in cutting edge science and technology such as lunar exploration programs and supercomputers. great progress was made in modernization, national dissent, and the army. programs accelerated and people's lives improved significantly. comprehensive progress was made in education, sign, and technology, culture, public health, and sports programs. the number of new other jobs in connection increased by 57.7 million and agriculture workers found employment. the per capita disposable income of urban residents rose by an annual average of 9.7% and per capita net income of rural residents by 8.9 percent in real terms. the social security system covering both urban and rural areas was progressively refined. major progress was made in reform and opening up. new breakthroughs were achieved in crucial areas and the economy further improved. last year, foreign trade

the meantime we're going with this theme of the gorilla running through the room their own economy has been taken and they're paying austerity measures and order to finance the banker heist lord hutton public sector reforms who will lose out so lord hutton remember who whitewashed the whole tony blair. put the b.b.c. totally on the back foot during the hutton inquiry that's correct but he's come up with these new public sector reforms in which workers in the public sector will face a radical overhaul of their pension schemes but here's a paragraph that stood out to me more public sector employees who are now living and drawing a pension for longer has created an estimated thirty billion pound black hole in the pub when the public finances so thirty billion pound black hole and people are outraged at these public sector spongers you know who's stealing all our money from us did you see any outrage for these two have lines one from two thousand and nine bank bailout to add up to one point five trillion to public debt that's from two thousand and nine years from the end of two thousand an

find out what's really happening to the global economy. to. hunger for the. voice face to face with. the took. a. little about talking about japan's triple disasters and its impact on the global economic recovery. but first let's see what russians think about the global economic recovery. all encompassing tragedy that is our saying japan has heart of the country its people and has a great impact on the world that's many now say it might disrupt the global economic recovery the public opinion agency live out of said ask russians to assess the prospects of russia's economic situation sixty three percent say it will remain at the current level sixteen percent see negative changes and fifteen percent say it's about to improve but will earthquake tsunami and nuclear disaster have the global economic impact and will it modify the course of recovery that. ok patrick i'd like to go back to you and there's been three things that made mention of this program and i want to tie them tightly together a possible double dip nuclear energy and the price of oil because they a

the economy is not a fixed pie. when you expand the labor curve, a simple economist will say the price of labor goes down and we're all hurt. the more people that work here, the more people that are chasing jobs and we're all doomed. wrong. the expansion of the available labor force creates opportunities that did not exist before. you have innovation and entrepreneurialism that increases the actual size of small and medium-sized businesses. they consume and that expands the demand curve. you have a dynamic economy for 90% of u.s. born workers that enhances their wages. the other 9% got whacked up side the head with globalization and immigration and everything you can list and they need help. getting rid of immigrants doesn't really help them. the final point is if you look at the last 15 years, 25% of publicly traded companies in the united states are essentially from the bay area region and one out of four was started by an immigrant. we have great data on this because it's all transparent. you can look it up. you

but what we'll be looking at is the state of the economy. our mandate from congress is to look at inflation and employment and so those are the things that we'll be looking at as we determine how to withdraw or maintain o policy. >> the quantitative easin monetizing of debt or however we term that, has caused some concern about our currency, long-term value of our currency, and it's caused a lot of us to look at ways to create a more substantial or more soundness and stability to our monetary policy. in 1981, former chairman greenspan wrote in "wall street journal" about an idea of using five-year notes payable in gold that the federal reserve would issue or excuse me, the treasy department, payable in gold or dollars to create some standard as just a test, and a lot of folks are talking about some form of standard -- some way to create some boundaries for our monetary policy. have you given any thought to the idea of a gold standard or ways like that, issuing bonds payable in gold that would begin to create some standard for our currency? >

economy. it remains to be seen if these campaigns will work. in the meantime the egyptians that depend on tourism suffering. hardship goes beyond people. >> this camel might be in pain, but it is lucky that is being treated for an abscess. veterinarians brought feet for the animals, many of which have not been getting enough food since the tourists stopped coming. >> that means that people here have no income when they cannot feed their animals. yesterday i saw a woman but 12 children. two horses had died. to camels were purchased on credit. she could not even field -- feed her children. >> dozens of horses and camels have already died. this woman grew up in egypt but now lives in austria. she has come back to work with an animal welfare group. convinced that the recent revolution will be good for the country. >> i have been living abroad for 25 years now. >> since the 25th of january i think they will learn arabic. >> the spirit of the revolution is felt everywhere, especially with students t

it indicated that one of the best thing we could do for our economy, was to it as a congress, adopt a long-term plan that made sense and that would show the world economies that we were committed with dealing with our fiscal problems. would you agree with that? >> yes, senator, i was the first commission. to the extent we can we address the longer term trajectory, which was not sustainable, we could ensure lower interest rates, great confidence and it would be, in a minimum, helpful to the current recovery. but more importantly, it would protect us from fiscal or financial crisis down the road. >> you don't need to comment on this if you'd like to. i would add that congress budgets at a one year at a time basis, frankly, we have to look at the year we're dealing with as we move forward. although i'd agree we have to look long term, we don't adopt long-term budgets here. at least historically. thank you very much for your involvement in that context. in the context of the transparency issues that you've discussed, i'd like to focus on gse reform, fannie mae and freddie mac in particula

he is trying to get the budget lanced and grow the economy. one of the things i think is pretty modest is asking among public employees some shared sacrifice. and if you take a look at what he is actually proposing, it's fairly modest. state workers will have more collective bargain rights than federal workers have. they'll have better benefit packages on health care than what federal workers have. with the collective bargaining, he is not repealing it, he is simply mod fight it, which is far more generous than what many other states do for their state workers. but he is trying to give local government the tools they need to balance their budgets so that local government, county executives, mayors, don't have to lay people off or cut essential services. he is trying to give them the tools so they can get this modest shared sacrifice among their employees to balance their budgets as well. >> you're talking about long-term fixing the country's fiscal issues and the debt and the deficit we face. when would you expect if in fact your plan is if pl

activity for every one dollar in the program by these people spend all that money stimulating the economy was from consumer to retailer to wholesaler grower i mean every step along the way it's making money federal spending is the definition of economic stimulus and it's been used every time our economy started to slow and every time it's been effective yet for some reason today federal spending is off the table but tax cuts for the rich. now we know why republicans are doing this but why the president obama on top of all that unemployment insurance is due to run out this year spending more and more people off assistance rolls and further crippling working class families across america for reasons that i can't understand president obama negotiated a one year extension of unemployment benefits last year there were some publicans received their two year extension of tax cuts for the rich meaning heading into the two thousand and twelve election millions of people's unemployment benefits are going to run out upset in them and also crashing the economy and add insult to injury president obama

find out what's really happening to the global economy with much cause or were no holds barred look at the global financial headlines and two kinds a report. the world. bringing you the latest in science and technology from around the world. we've got the future covered. download the official t. application on the phone oh i pod touch from the i choose ops to. launch all she life on the go. video on demand on she's mine gold costs and says feeds now in the palm of your. question on the call. plays the topic of a. plane. ticket to. the celeb. hello and welcome to cross. stop guying peter lavelle japan's agony in the world's x. globalization we are told is a process that can benefit all that's when times are good but when a disaster hits a major economic controlling power the forces of globalization punish the entire international system where does japan go from here. to. discuss the impact of japan's multiple tragedies i'm joined by patrick young in vienna he is the executive director of d.d. advisors and dallas we have lloyd dumas he's a professor of political economy economics and pub

it is providing support to the economy. that, while it's true food and energy prices have risen a lot, inflation itself is pretty well anchored, expectations are well anchored, and you shouldn't be worried about the value of money. >> reporter: the most avid audience for the fed's press conferences will be found here on wall street. long-time fed-watcher tom gallagher says investment pros will look for any instant clarifications reporters can wring from the fed chairman. >> i'm not sure the average person is going to stop what they're doing to tune in to watch the press conference. i think the ability of the fed to say we have press conferences to explain our actions will improve the perception of the fed's accountability to the congress and the public. >> reporter: and that is important. economists argue if the public trusts the fed is doing a good job running the economy, people will be less worried about inflation and they may be less likely to put off big purchases that add to growth. darren gersh, "nightly business rep

but first let's see what russians think about their country's economy. on waves amid this process with the ongoing outrage happening in the oil rich middle east region prices probably gold have risen dramatically many now say the andras has direct effect on oil prices and global economic recovery the russian public opinion research center asked citizens about their prospects for russia's economic situation forty four percent believe it will experience positive trends during the next twelve months however another twenty eight percent do not see this in such a positive light how will these attitudes change in light of for the oil prices hikes as protests grip the north africa and the middle east and will eventually do real the global economic recovery. ok michael before we went to the break we're talking about the strategic impact of all of these changes in the arab middle east oil producers and you want to jump in and maybe extrapolate or continue with something that william was saying if it's say for example of saudi arabia were to go off the rails. yes

to the economy. it has prospered ever since. new york has done well by the rich. >> how big is this place? >> 8.2 million people in terms of our population. it is 1 million greater than we were two decades ago. >> you are bigger than a lot of states here. why did people want to live in this dense area? >> people like to live in a place that is dynamic that is showing leadership. new york has long attracted people from our around the world to come here. for people like myself, i came here from wisconsin. they say new york is made up of people who did not fit in where they grew up. it is a diverse community. that is what i fell in love with when i first came here. i found it to be so diverse and exciting. learning new things every day. >> where did you grow up in wisconsin? >> madison. at the time the university of wisconsin was being blown up. i was raised in the county. i would have liked to go to the university but my parents thought i would be better off if i went to a college called st. olaf colle

find out what's really happening to the global economy with my stronger for a no holds barred look at the global financial headlines tune in to congress report . here with god to. japan a crisis itself for the last sighted stricken nuclear power plant ice coating systems up to more reactors appear to be faltering and skyrocketing fears of a total nuclear meltdown the same problem is exactly what triggered the explosions on monday and tuesday. authorities claim a radiations are reaching dangerous levels near the plant so far two hundred thousand people have already fled. to three thousand people last confirmed dead so far i don't know four thousand are officially missing since friday's make a quake and colossal tsunami but reports suggest the final toll will be much higher . level exabytes from the international atomic energy agency head to the disaster area to offer their assistance some say the devastation is proof that the world to come to cope with the problems it has helped to create and the nuclear power comes at too high a price. to argue stay with us the report is next. i am ma

the second lesson is that even as a -- even if there is economy growth, this economy growth has to be shared by all people in the country. shared in different area of the country, but also shared by all people. and i think that the egyptians and twnearbyans case -- two nearbyians -- tunisians case is observation is that what's happened in some countries in terms of revolution when we look to the tunisian and egyptian case we see the regime maybe was , i don't know if we said that in english, scler rotic -- sclerotic. it's better in french. and remember that when the president was re-elected in november, 2009, some weeks after there was mobilization from many people to -- a new candidate in 2014. imagine this people, young people, opened their eyes under the regime and we said to them that we have to live under the me system with the same values, with the same injustice until 2019. and i think that is also the case for the egypt hosni mubarak , then we can say there are many hopes in these countries and that the arab group is not a monolitical group and the regime in bahrain is totally

discuss the impact of japan's earthquake disaster on the global economy and if it's a double dip recession do stick with us. can. start. flowing and welcome the crosstown time peter lavelle japan's agony and the world's globalization we are told is a process that can benefit all that's when times are good but when a disaster hits a major economic and trading power the forces of globalization punish the entire international system where does japan go from here. you can start. to discuss the impact of japan's multiple tragedies i'm joined by patrick young in vienna he is the executive director of d.t. advisors and dallas we have lloyd dumas he's a professor of political economy economics and public policy at the university of texas at dallas and author of the book the technology trap and in chicopee we cross the michael lynch he is president of strategic energy and economic research and another member of our crosstalk team yellen hunger all right gentlemen this is crosstalk that means you can jump in anytime you want michael i'd like to go to you first the first question a lot of people are

-- to the economy. to what extent are you all doing things in these areas, studying or looking down the road to anticipate some of these issues? there are to them that i want to talk about. -- there are two of them that i want to talk about. one is climate change. this will result in dramatic weather swings at the extremes that will have a devastating impacts, economically, that make new orleans look like small potatoes. in the west, in the gulf, in florida, in places where just the two points or three points of temperature change have dramatic impacts on whether conditions. the second is on the growing gap between well off in this country and people who are not well off in this country. the gap is growing. i think we are about to experience a greater growth because this whole fannie and freddie discussion and the way it is being shipped now will result in fewer and fewer people of modest wealth and incomes being able to be home owners. the great bulk of low-income and moderate-income people 12th is in

is the tories for shipping jobs overseas what's going on here our economy is facing a dark dark road ahead as president obama is playing right into the hands of republicans who really and truly and seriously are willing to ruin america for political gain after the two thousand and eight financial crisis our nation was facing a choice go the way of f.d.r.'s new deal of produce the forty golden years of the middle class from one thousand nine hundred nine hundred eighty or go the way of the conservative conservatives whose policies of tax cuts for the rich are created fourteen trillion dollars in debt ever since reagan first started this and impoverished working people ever since reagan declared war on working people shortly after president obama won the presidency in two thousand and eight time magazine ran this cover speculating that he'd sweep into office in this time of peril and push through a new deal to uplift the working class just like f.d.r. did after all what he campaigned on but today more than two years into his presidency barack obama is looking more like f.d.r.'s predece

but what we'll be looking at is the state of the economy. our mandate from congress is to look at inflation and employment and so those are the things that we'll be looking at as we determine how to withdraw or maintain our policy. >> the quantitative easing, monetizing of debt or however we term that, has caused some concern about our currency, long-term value of our currency, and it's caused a lot of us to look at ways to create a more substantial or more soundness and stability to our monetary policy. in 1981, former chairman greenspan wrote in "wall street journal" about an idea of using five-year notes payable in gold that the federal reserve would issue or excuse me, the treasury department, payable in gold or dollars to create some standard as just a test, and a lot of folks are talking about some form of standard -- some way to create some boundaries f our monetary policy. have you given any thought to the idea of a gold standard or ways like that, issuing bonds payable in gold that would begin to create some standard for our currenc

even as our economy has grown since then. partly because our economy as a whole is more efficient. we're adapting. we're producing more oil. and we're importing less. our automakers, for example, are manufacturing more fuel-efficient cars, some that now get more than 50 miles to the gallon. and our consumers are driving more of these cars. in december, democrats and republicans came together to pass a payroll tax cut that is already helping to grow our economy and create jobs. in the wake of rising gas prices, it should also help act as a cushion for working families. this doesn't lessen our commitment to do everything that we can to get gas prices down. but that tax cut will total for the average working family this year or an extra $80 or so showing up in your paycheck each month. that tax relief package is a key reason that even with these higher prices economists and investors like warren buffett believe we should still expect solid growth and strong private sector job creation this year. now, the hard truth is, is that as long as our economy depends on foreign oil, we'll alway

we want to growing economy in a place where america is still thg world's leading economy does not drive the economy the way it did even 20 years ago. when we saw 20 years ago thatve the world would have to wait on america to get its financial act together. the world is not waiting right now. b china, india brazil countries abroad are getting ahead. for going to remain competitive we have got to continue to invest smartly. the president said we have to make sure we educate. we have to invest in our of the structure and we haveat got to o able to out innovate and that means targeted research and development. unfortunately the house proposas on domestic discretionary to the exclusion of other areas of spending, but it also locus as s these cuts on remaining six to seven months of our fiscal year makes a disproportionate whack out of the key areas where wee must attain certain levels of investment if we are going to grow the economy to make sure the other cuts and the other revenue won't have to be as draconian. let me give you a couple ofi examples.ng i know the presiding officer comes fro

look like well it looks smaller than the economy we see around us today and it's also more localized because. globalization is based on cheap transport she will so as transport fuel gets more expensive that changes the the equations with regard to the comparative advantage in and in globalization so we will see more production regionally doesn't mean global trade will go away overnight or altogether at any point but if it is going to shift. also we're going to need to become more generalists rather than being more and more highly specialized. were more and more of us are going to have to know how to grow food how to you know take care of our so in terms of health care and so on. and so that's really going to change what they life looks like it's not just going to be a matter of hopping in the car and rushing over the other side of town to buy a new flat screen t.v. we're going to be more concerned about providing basic necessities for ourselves a good pair of new shoes or for example is going to be a much bigger deal for us in five or ten years there. has been ok well that's the book

find out what's really happening to the global economy with max cause or run no holds barred look at the global financial headlines tune in to kaiser report on our cheap. download the official. i phone the i pod touch from the i choose ops to. chauncey life on the go. video on demand season minefield comes an r.s.s. feeds now an up. one of your. wishes on the call to. kick. start. the. flow and welcome the crossfire gang peter lavelle japan's agony and the world's anx globalization we are told is a process that can benefit all that's when times are good but when a disaster hits or major economic and trading power the forces of globalization punish the entire international system where does japan go from here. we can. discuss the impact of japan's multiple tragedies i'm joined by patrick young in vienna he is the executive director of devi advisors and dallas we have lloyd dumas he's a professor of political economy economics and public policy at the university of texas at dallas and author of the book the technology trap and in chicopee we cross the michael lynch he is president of s

forbes wealthiest list reflects changes in global economy and the wealth of the world's billionaires was up twenty five percent in the same time that the wealth of the american population was down twenty three percent yes yes it's a clip takhar see you see normally capitalism is about risk reward risk reward winners and losers like this you say this is this is what f.d.r. garrard see during the depression when he brought in the f.c.c. and the f.b.i. seeing all the reforms like last legal but the last twenty five years thanks to j.p. morgan goldman sachs we have something like this. we go your money. so the average net worth of billionaires on forbes billionaire list is now three point seven billion compared to three point five billion in two thousand and nine it dramatically increased at the top so carlos slim is still the richest man but his wealth in two thousand and ten increased by twenty billion for example but then steve forbes the guy who runs forbes magazine he says. these are creators they're not plutocrats these are do or making things happen and when they do well we all do

two the question is what happens if the economy or when the economy relapses will the fed be able to up the ante and go for more or will we have some sort of systemic crisis and i think that. there are so constrained but i wouldn't bet on a q e three happening before some sort of systemic crisis happens no matter what scenario you paint looks like higher interest rates are coming at some point and this is what are so book ok so here you list as an example the reality is if you look at the the interest rates generally speaking interest rates for longer term maturities are an expression of the expected short term interest rates because there's obviously some risk premium for holding assets there longer deeded but the reality is is that if the fed has zero percent rates forever then there's no reason to expect five or six percent rates for ten year bonds so if the fed signals we're not going to raise interest rates anytime soon there's a there's a huge arbitrage opportunity at that point for someone to go out into the into the market but the bunch of long dated assets and then you know

it is still a $5 trillion economy. it is more than a third of the size of the u.s. economy. as my colleagues have reported, they still make many goods a tour of the world. some companies have a very large share of certain goods in the supply chain of various shipchips in apple products, a chemical solvent used in paint for cars and those are disruptions. factors that are closing forcing american buyers, car makers computer companies, all over the world to halt production and/or look for other sources. you do have those kinds of distractions. we take for granted a lot of these conveniences of daily life and we do not understand that everything that appears in our supermarkets, that all goes through a really complex supply chain not just getting there through shipping channels, trucks trains, and logistics of the supplies that things come -- one ipad or one tv contains all sorts of parts made in different factories all over the world or made by different companies in asia. those can have in tax especially on short-term supplies. it is the longer-term that this is probably expe

you've got to get the economy growing first. our economy grew last year%.he year before that, 2.1%. the chinese are growing at 10%. it has been calculated that if we continue to grow at an anemic rate, the chinese will of the gdp as big as ours in 15 to 20 years. i consider that a national security threat. we about to get the economy going. on the other side, you start doing things to dramatically bring down the national debt every year consistently. for example, we have got to convert from an entitlement mentality to in a power but that -- to an empowerment mentality. any program that has an unfunded mandates on the state, we would change the rules. unfunded mandates means that government is trying to micromanage things from washington, d.c. we cannot. we must empower the states. we must empower businesses by improving and simplifying the regulatory environment. one of the reasons we do not have an effective energy independence strategy in this country is because of the regulatory environment. so you empower the states, and power businesses, empower indivi

economy. its enduring legacy may have been to codify the implicit guarantee of the too-big-to- fail. the tar, in essence, reinforced the bubble bailout cycle as the government's preferred business cycle. along these lines, "the government's actions in rescuing a ig continues to have a poisonous effect on the marketplace by providing a complete rescue that called for no shared sacrifice among aig's creditors. the federal reserve and treasury fundamentally changed the relationship between the government and the country's most sophisticated financial players. the aig rescue demonstrated that treasury and the federal reserve would commit taxpayers to pay any price and bear any burden to prevent the collapse of america's largest financial institutions and to assure repayment to the creditors doing business with them. so long as this remains the worst effects of aig's rescue on the marketplace will bring your." -- will linger." in general 2011, on the report, the panel noted "treasuries now on cours

economy here, john. what do you -- we're seeing some better signs in the jobs market, manufacturing. housing still a problem. but what do you make of what is going on in the economy right now? >> i think we came into this event with good momentum. i think jim's right. underlying growth somewhere between 3 and 4%. we're at 3.5% this year. so i think the risk of getting back into those double-dip anxieties like last year are relatively small at this point. which that in mind, jim, what do you like here if you are looking for bargains in the stock market. where do you look these days? >> i mention two things, bill. my favorite right now is emerging markets. they have underperformed really since last november fairly significant to the broader domestic marketplace here. and they've kind of lost their following as a result. in this country, i really like the manufacturing sector here. it is the clear leader of this economic recovery. manufacturing is leading. it's not only healthy, it's robust. and it's probab

economy is in great shape. they said the economy is improving. but not enough to meet our dual mandate. they made a specific point to do a nod to those who are hawkish. we understand oil prices have gone up, but we see it as a transitory event. in a economy with so many con traints on the u.s. consumer, it could be damaging in itself. it was a unanimous vote. i'm not sure it would have been unanimous if maybe the events in japan and what was going on in the middle east hadn't occurred. we saw a lot of hawks disconcerned. but for now, this sidelined them, and they said we'll talk about it, but we're going to vote unanimously. >> susie: we just have about 30 seconds left, mike. certainly this is a bad situation from the human tragedy, as well as the economic tragedy. any good going to come out of this? >> yeah. i think it is possible -- history is a guide to countries be how they react to things. japan's history is a very positive one when it comes to a national agenda to do something. i think in this case, rebuilding will be something a couple of