other fannie mae executives who got v.i.p. loans from countrywide include then vice chair jamie gorelick who earned $26 million over four years at fannie mae and now represents b.p. and former c.e.o. franklin raines, who earned $90 million in his five years at fannie mae. the amounts of their loans aren't known. but gorelick, raines, and others have said they would haven't taken any loans if they thought they were getting a special deal. >> i am unaware of preferential treatment given to me by countrywide. >> reporter: in all, documents show at least 42 fannie mae officials took 153 v.i.p. loans from countrywide, sometimes three and four loans per person. in this 2001 e-mail, countrywide officials talk about giving a below-market loan to fannie mae's then-c.o.o. dan mudd. >> on top of giving a loan below cost, they wanted to make sure he was very pleased with the service. no question at all, they knew they were losing money and they knew they were currying favor that would be valuable. >> reporter: mudd says he did not seek an

we'll talk fannie, freddie and where the economy is headed next. it's not your grandma's truck. from gourmet to high tech and it may be coming to your neighborhood. "the wall street journal report" begins right now. >>> this is america's number one financial news program "the wall street journal report." now maria bartiromo. >>> here's a look at what's making news as we head into a new week on wall street. a massive yore haul othe nation's financial system is now law. president obama signed a sweeping reform act just this past week which was enacted in response to the financial crisis that began in 2008. the law creates a council of federal regulators that oversee the system and defect risk. financial entities whose failures hamper the system and housed within the federal reserve. earnings drove the markets higher most of the week last week. the dow snapping a two-day losing streak on monday and rose again on tuesday and on thursday on strong profit news. the markets continued up on friday. not all of the earnings news was good. some big companies falling short on revenue expect

let me tell you another one, fannie mae and freddie mac. in 2007 which is when the democrats first came to power, we did what the republicans never did and we did put legislation in place to change them and using that authority frank puts them in a conservatorship. if we had done that earlier, there would not have been as much damage. >> charlie: and we continue this evening with a look of creativity. how do you get it and what can you do with it. >> i think the important thing is that creativity is not making up things, at least in science, just in your head. you have to know a fair amount of information about different fields that are related, different ways of thinking about problem solving. and make up your own solution, putting all those pieces together. >> actually define creativity as something that's new and original and useful. and they're actually saying that we can teach that this schools by what we often call the creative problem solving process. learning, to fact find but then still what's important. it's about diverge empt thi

fannie and freddie proved that this definition can be highly destructive. oochecongress could have writte, madam president, legislation to address key issues that played a role in the recent crisis. on government-sponsored enterprises, fannie and fredy, the bill is silent aside from a mere study. on the tri-party repo market, the bill is silent. on runs in money markets, the bill is silent. on the reliance of market participants on short-term commercial paper funding, the bill is silent. madam president, on maturity transformations that allowed the shadow banking system to effectively create money out of aaa-rated securities, thereby make the system much more vulnerable, the bill is silent. on the financial system's overall vulnerability to liquidity crisis -- crises, the bill, again, is silent. madam president, we know with certainty that all of these factors, none of which are addressed in the bill, were integral to the recent financial crisis. and while we do not want to write legislation that only deals with the last crisis, we do want to enact a law th

it also includes the fate of a fannie mae and freddie mac.abilene, texas, on our independent line. you are on. caller: hi. i am a first-time caller. i am inquiring about the premium mortgage insurance. host: you are listening to feedback. mikki question or comment, please. caller: this would apply to fha loans about 10 years ago host: there may be some interference on the line. let's go on to rockville, maryland, on our democrats line. caller: in order for someone to get reelected regardless of whatever party, they have to have accomplished in getting things past or blocking things from being passed. in the partisan environment we have, don't you need comprehensive things to get something passed? if it is just piece mill and things are salt and you do not have something substantial to show to your constituents, how do you expect to get their endorsement for the next election cycle? guest: that is an excellent question. presidents have more pressure, in particular members of congress and the senate. the only one of many members of the team vot

federally regulated mortgage giants freddie mac and fannie mae say that institutions a loan. brown says freddie mac and fannie mae already ignore similar certain assessments. >>> june sales rose by 1.3% in the bay area with almost 8,400 homes closing escrow. the median home price was $170,000 which is unchanged. >>> stocks turned around in the final hours of trading today on word of a possible deal between goldman sachs and the government. the settlement ends a lawsuit against the company. >>> california has the largest number of illegal immigrants who qualify for the dream program. california has 553,000 or 26% of the 2.1 million immigrants who could apply for legal status through the proposed federal program. texas is second with 258,000 illegal young people, followed by florida with 192,000. >>> it is finally happened, bp today plugged its leaking oil well. details ahead. >>> and this is gulf seafood, but is it safe to eat. today scientists are starting to find out. >>> now we're learning who paid a record amount to own the warriors. >>> it was near 100 degrees in some nei

>> we won't preserve fannie and freddie in their current form. we have to bring fundamental change to that market. we'll have a good case for looking at preserving or putting in place a carefully designed guarantee to homeowners have the ability to borrow to finance a home even in a very difficult recession. we're also going to have to look at the broad set of policies we put in place to encourage home ownership and low income americans get access to affordable housing. we'll take a very broad look at how best to do that. we'll begin that process quickly and consult broadly and i think that there's going to be very broad support among republicans and democrats for a sensible reform to fix this system. >> let me go through quickly as i can the big tax issue. the bush tax cuts set to expire. the administration's plan is to let them expire. raise taxes on wealthy americans above $250,000. don't let them expire and keep them going for those $250,000 or less. even democrats, like chairman of the budget committee, says bad idea to raise taxes on wealth

a few of them were approved prior to fannie mae and for -- freddie mac concerns being raised. the program is caused while those concerns are address. but it was about 20 applications. >> the concern was a communications issue? >> with a green finance program what it does is it allows property owners to prepay their loans for property improvements on energy efficiency, removals, and water conservation through a lien on the property. fannie mae and freddie mac have expressed concern that they maintain their priority status. that issue is what has a dialogue under way within the financial community and government as to how to resolve it and make sure that we can move forward with our program effectively. we are not alone in that. many communities have that concern. >> thank you. >> any public comment? seeing no one, onto the next item. >> commissioners, before that, is this a good way to get information for the tangling questions? >> that is not often the case. >> next item? >> in this case, employee recognition. i would like to call attention to a typo that i made. we all believ

fannie mae and freddie mac were put into conservatorship. they were the first major institutions to be reformed. we also in this house passed a bill to control subprime lending. the gentleman from alabama had been the chairman of the subcommittee with jurisdiction over subprime lending in those republican years and never produced a bill. he said it was our fault because he wrote a letter, myself, mr. miller of north carolina and we didn't tell him we'd vote for im. i wish i could have it back. i wish i knew i was secretely in charge of the republican agenda. i wish i knew they wouldn't do anything unless i said they could but nobody told me. where were they when i needed thome to be more powerful. the republicans never checked with me as to what they were supposed to do. it's 2007, we did pass such a bill to restrict subprime lending and the wall street journal attacked us. they said it was a sarbanes-oxley for housing. sarbanes-oxley is about as nasty as you can get for "the wall street journal" and here's what they said about subprime lend

and with financial reform in the rearview mirror, the administration is moving on to fannie mae and freddie mac. the treasury will hold a strategy session august 17 to figure out what to do with the mortgage giants and their bloated balance sheets. so far, taxpayers have spent $145 billion stabilizing fannie and freddie. >> tom: still ahead, will apple's success rub off on its business partners? tonight's "word on the street" has three under-the-radar stocks tied to the iphone maker. >> susie: as we mentioned, b.p.'s new c.e.o. says cleaning up the gulf is at the top of his agenda, and congress wants make sure that happens. today, senate majority leader harry reid rolled out new legislation requiring the oil giant to clean up its mess and pay for damages. it's all part of a much-smaller- than-expected energy bill that leaves producers of clean energy out in the cold. darren gersh has more. >> reporter: the president called the slimmed-down energy bill working its way through the senate "a first step," and he vowed to continue pushing for a broader bill addressing climate change and renewabl

and freddie it is guaranteed by fannie and freddie it is not really at risk of loss but fannie and freddiehem. >> of course, standing behind that is the house which as collateral so that is the protection is doing it there is a default, again there is recourse to collateral summer movie go for the asset-backed security program. >> there are laws that underlie as a but the man he was if you may were secured by the actual houses and generally ginnie mae buys and securitize as though fha loans. >> but still the numbers that indicate greater federal support for the economy but we're not out of the woods? >> absolutely even with double counting each hess belts -- spill to increase their commitment by a staggeng amount of money. >> what is the one thing you want to leave with this commission at this point*? i think you have done a great job. but stay what you want to stayhat what we should know. >> one of thenduring frustrations that we have all the treasury has come a long way from transparent save we still have some ways to go? but looking at the housing program makes the program better and mo

now, freddie and fannie are not government organizations.they're qusi government -- quasi-government. and when they started doing thing, the assumption was the federal government would come and bail them out. so freddie and fannie are getting -- this is 2003. real estate market's booming. president bush says, watch out, freddie and fannie are getting in trouble. i need more authority as president to control fannie and freddie. paying many lobbyists up here on the hill dishing out hundreds and hundreds of bills. this is freddie and fannie, they're starting to get in trouble. president bush says we got to regulate them. now, the democrats, on the other hand, the guy who is now in charge of taking care of regulating freddie and fannie because he's in the majority now. this is congressman frank, the democrat. he says these two entities, freddie and fannie, are not facing any kind of financial crisis. 20/20 hindsight we say obviously you are wrong. i'm sure he'd admit he's wrong. they were facing fanl crisis. and as they start to crash and collap

fannie and freddie proved that this definition can be highly destructive. oochecongress could have writte, madam president, legislation to address key issues that played a role in the recent crisis. on government-sponsored enterprises, fannie and fredy, the bill is silent aside from a mere study. on the tri-party repo market, the bill is silent. on runs in money markets, the bill is silent. on the reliance of market participants on short-term commercial paper funding, the bill is silent. madam president, on maturity transformations that allowed the shadow banking system to effectively create money out of aaa-rated securities, thereby make the system much more vulnerable, the bill is silent. on the financial system's overall vulnerability to liquidity crisis -- crises, the bill, again, is silent. madam president, we know with certainty that all of these factors, none of which are addressed in the bill, were integral to the recent financial crisis. and while we do not want to write legislation that only deals with the last crisis, we do want to enact a law th

fannie mae and freddie mac were put into conservatorship. they were the first major institutions to be reformed. we also in this house passed a bill to control subprime lending. the gentleman from alabama had been the chairman of the subcommittee with jurisdiction over subprime lending in those republican years and never produced a bill. he said it was our fault because he wrote a letter, myself, mr. miller of north carolina and we didn't tell him we'd vote for im. i wish i could have it back. i wish i knew i was secretely in charge of the republican agenda. i wish i knew they wouldn't do anything unless i said they could but nobody told me. where were they when i needed thome to be more powerful. the republicans never checked with me as to what they were supposed to do. it's 2007, we did pass such a bill to restrict subprime lending and the wall street journal attacked us. they said it was a sarbanes-oxley for housing. sarbanes-oxley is about as nasty as you can get for "the wall street journal" and here's what they said about subprime lend

but fannie and freddie have their own regulator. it is so complicated. the administration says they will propose a new government role in the mortgage financial system. that fannie and freddie could be a thing of the past. it will be a huge fight on capitol hill. host: when did the white house say they might weigh in with some proposal on have to do with fannie and freddie? guest: they have been hinting at it for months. it is likely to be a debate that comes up next year. host: on the democratic line, from houston, texas. caller: good morning. do they realize that a lot of these banks own these payday loan companies? it is a back door way. i feel the biggest problem is the credit bureau which is so corrupt. it is the one that needs to be totally regulated. secondly, the republicans are so mean-spirited that they never, ever want anything that will help the smaller, lower class people. they only want to help big business. every time it comes up for minimum wage to be raised, they vote against it. anytime there is an ounce of money that will go out the do

but government financiers fannie mae and freddie mac say they will not longer accept liens because they have risk of default. >>> developers are worried new air quality guidelines can delay or stop affordable housing projects. developers are concerned about new requirements to conduct produce control studies for projects near freeways or refineries and other high pollution sources. that new rule would apply to most transit oriented development in the interbay area. >>> the young museum is opening their doors and inviting the public in. the d young is one of six museums offering free admission for part of the weekend. it's part of the free family event. >>> coming up on ktvu channel 2 news at 5:00, while many bay area cities are seeing more empty store fronts, san jose is welcoming a new ross store. >>> and that is our report, i'm john sasaki for tory campbell and everybody here at ktvu thank you for joining us. our next report is at 5:00. have yourselves a great day.

slow economic growth and kill jobs and they are angry the bill doesn't take aim at freddie mac and fannie which had to be bailed out by the government. >> the bill addresses most of the problems and makes a good start. it's not perfection but in the real world, we don't get perfection. >> reporter: for the banks, the new rules go into effect as they continue their come back from the recession. wells fargo and morgan stanley beat wall street expectations announcing billions in profits the last three months. alexis christoforous, cbs news, wall street. >>> in the gulf of mexico, bad weather is threatening to delay bp's efforts to permanently plug the damaged oil well. a storm in the caribbean has a 60% chance of becoming a tropical storm by friday as it moves into the gulf. if that happens, ships would have to leave the spill zone. bp couldn't keep an eye on the capped well. this is a live look at what is happening under water. without the ability to observe the cap, bp says it may have to open it up for nearly a week and let the oil flow until the weather clears. >> we said before if we ha

fannie mae and freddie mac are the problem. we have to stop bailing out financial institutions and get rid of fannie mae and freddie mac. when people are willing to invest their own capital, then we have a solid economy. you cannot rely on taxpayers to bail out corporations. >> thank you very much. next question is for senator mccain. foreign affairs. general casey says the american forces could be fighting in afghanistan for another decade. you have said we need to stay in afghanistan and won. we have-- until we have won. are you willing to stay there for another 10 years, even as members of your party began to call this a losing war? cal will we know if we have 1? -- how will we know if we have won? >> the same way we know in iraq. there is a functioning government. they have a government that is functional. i would remind you that, when everybody else said that john mccain's candidacy was doomed, because of my support forsurge this -- for this surge -- i said i would rather lose a campaign than one lose a war. afghanistan is

. >>> they're down to penny stocks but fannie mae and freddie mac jumped after the administration said it's organizing a conference on housing finance in august. >>> elsewhere general electric, the current owner of this network, will pay $23.4 million to settle federal charges some subsidiaries paid illegal kickbacks to the iraqi government to win contracts under a u.n. program. >>> and, finally, at australia's jenolan caves, once the site of an out-of-this-world location shoot for "star trek," staffers have added an eighth language for conducting tours. the "star trek" language of klingon. how about that? >>> well, the rangers walk off happy, a-rod comes up empty on his birthday, and t.o. has a new home. >>> plus, a little circus action helps the blue jays put away the o's. your early morning sports headlines are straight ahead. >>> a strong cold front's going to bring relief to the heat for some. your regional forecast is coming up. you're watching "early today." if you're just waking up, this is "early today." and in sports, the cincinnati bengals already feature one brash superstar

we recommended making the costs of fannie and freddie bailouts transparent to the public, that is to the taxpayer. we offered initial steps toward the never -- inevitable unwinding of these institutions. yet, madam president, at every turn the democratic majority blocked efforts for at least establishing reform here. the democrats prefer approaching this bill in reforming the mortgage giants is a stay. let me repeat that notion. in order to address a bailout that has already cost american taxpayers roughly $150 million to date with unlimited future taxpayer exposure, the democrats proposed a study. it does not take a study to determine, madam president, th that $150 billion in unlimited loss exposure needs to be addressed immediately, now. congress could have focused, madam president, on securities market practices that were known to have contributed to systemic risk in our financial system. again, democrats overreached, i believe, once again. for example, the bill gives the securities and exchange commission, which has failed to carry out its existing mandates, a new systemic risk m

we reet now have $13 trelion of debt, five trelion of fannie mae and freddie mac. we can't grow at 4% to sex%'s year until we address that issue i believe. >> rose: "teem" magazine and daefd rubenstein next. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: "time" magazine has a powerful photograph of a young afghan woman aged 18 who had her nose and ears cut off on orders from the taliban because she fled her abusive in-laws. the story in "time" is not only about this young woman but women in afghanistan and what has happened to them in afghanistan. joining me is richard stengel, managing editor for "time", and joe klein writes about pakistan this week. begin with the cover. tell me about how it came into being. what were the powerful forces in your own head that said we have to do this, and what were the restraining forces that said maybe not? >> yes. well, charlie, we had aaron baker, our afghanistan bureau chief there, who had written a very powerful and emotional story about how afghan women were blos

. >>> the white house will hold a conference next month to discuss the future of mortgage giants fannie mae and freddie mac. together they own or guarantee about half of all u.s. mortgages. the two companies had to be bailed out during the financial meltdown and it cost taxpayers $145 billion so far. >>> general motors has put a price tag on its new electric car. the volt will cost $41,000. but a federal tax credit will shave about $7,000 off that price. chevrolet is already taking orders for the volt, which runs on battery power with a small gas engine for backup. the official launch date is in november. >>> and you may want to take your mother's advice and remember to sit up straight, especially during a job interview. a careerbuilder survey finds bad posture could sink your chances of landing a new job. the survey of 2500 hiring managers finds body language mistakes like bad posture and a weak handshake could hurt you in a job interview. betty, remember, eye contact at all times. >> that's right. that's right. and sitting up straight. okay, i have to remember that. my mom always gets

treasury bonds but also the housing bonds fannie and freddie bonds so china should cut u.s. treasury holdings economist says so this is two economists in the state media. former academic advisor to the central bank wrote that although assets and other currencies and forms are not ideal replacement for u.s. treasury bonds diversification should be a basic principle when demand for u.s. treasury securities a strong it's a rare opportunity for us to gradually pull back so these are the same sort of you know speaking of alan greenspan he's to send subtle signals to the market insiders about what his next move was of course nobody in the population knew how to read alan greenspan but he was sending them signals of what to do to protect themselves these are the same sort of equivalent in china these economists are telling people what the program will be very soon now shang money and another economist who works with the state told the paper also that china should invest more of its two point five trillion of foreign exchange reserves and hard assets such as gold well they're buying

have we done anything about freddie and fannie? no. it's still hugely in debt and we are bailing it out all the time. what's the result? we will be in a lot of trouble. this is what hurts. unemployment. look at the private sector unemployment numbers. look at the red line. that is the public sector? have we created jobs? sure have. hired census workers. the jobs that pay for the government are going down because these policies make a difference in people's lives. whenever i think of unemployment, you gentlemen are both gentlemen. both of you have wives and kids and i suppose that somehow wired in the back of our minds, when i have a wife and kids, i need to take care of them. that's the fundamental thing i'm supposed to do as a dad. if i fail at that, i'm a miserable failure in my own mind. i'm picturing a set of policies that the democrats proposed to put people into houses they couldn't afford to pay for so they will default on their mortgage and they and their kids are going to be sitting on a sofa out on the street. that, to me, is

president bush tried to rein in fannie and freddie.t was the objection of people like chris dodd and others who blocked that. barney frank, the current chairman of the senate finance committee -- these are good men, but sometimes will make wrong decisions. really find out about its on monday morning when we see the consequences. host: a couple of stories about the fall campaign in newspapers. president obama steps up money chase, eight fund-raisers in two weeks. related to that, democrats set to spend millions on ads. the democrat said on wednesday they're prepared to spend $49 million on television ads during the final weeks of the midterm elections. later in the story it says there's the two to one edge over republicans and raising cash. what does this say to you? guest: to me it says the democratic party, even though all the polls would suggest that they will lose their majority, at least in the house, and seven or eight seats in the senate, november 2, they will not roll over and play dead. they are anything but dumb. they're rathe

in 2006, i and others fought to reform thready and fanny. -- ought to reform freddie and fannie. >> mr.deakin, you have the final word. >> you did support and the sea. fannie mae and freddie mac or the problem. we need to get rid of them. when people are willing to invest their own capital, then we have a solid economy. we cannot rely on the taxpayers to bail out big corporations. >> the next question goes to senator mccain. general george casey has said american forces could still be fighting in afghanistan for a another 10 years. you have said we need to stay in afghanistan until we win. are you willing to stay for another 10 years that that is what it takes? even as some in your own party are calling for removal? >> we will know how we won in afghanistan the same way we won in iraq. when they have a government that is functioning for the people. everybody else says that john mccain was doomed because of my support for the surge. i said that i would rather lose a campaign than lose a war. afghanistan is long, hard, and tough. i spent the fourth of july with general petraeus in afghanistan.

one big piece of the puzzle left out of this big reform, fannie mae and freddie mac, they're the private company that's made billions and whose executives made billions while buying risky mortgages. taxpayers kicked in $145 billion and counting. republicans wanted them to wind down like other big financial firms in trouble, but that was removed from the bill. experts are mixed on how well the new law will work. according to an a.p. poll, 64% of americans aren't confident the law will prevent a future meltdown. katie? >> katie: sheryl attkisson on capitol hill. sheryl, thanks very much. in other news tonight, b.p. could be just days away from completing that first relief well. but drilling was stopped today because of this: a big storm way off in the caribbean. forecasters say there's a 50% chance it will become a tropical storm within 48 hours and it could reach the gulf by the weekend. kelly cobiella has more. >> reporter: with a storm brewing hundreds of miles away, the work to finally plug b.p.'s blown out well has come to a halt. b.p. stoped drilling its relief well until the threat

go back and look at some of the things that the clinton administration was doing with respect to fanniehome ownership, a bigger part of their portfolio, pushing them to lower their standards so that more low-income people could qualify for fannie and freddie loans, and discontinued -- look, the bush administration was also guilty of this. the bush administration fell under the same sway of thinking that, you know, homeownership was good, everywhere, and we need to do a lot of things to encourage it. even among people who might be responsiblecially or ready to take on a mortgage. i think across the board politicians in both parties encouraged home ownership among communities and economic groups for whom home ownership might have been the best option. een the best option. host: shares of freddie mae and freddie mac will begin trading over-the-counter thursday nearly a month after it was delisted by the new york stock exchange. we are talking about coverage of and the editorial opposing the dodd-frank proposal. we have someone on the republican line. caller: i am 72 years old. not one thin

this is freddie and fannie not facing any kind of financial crisis. they aren't facing a financial crisis? this is congressman frank who is in charge of fixing this problem, which he hasn't fixed yet. these two entities, freddie and fannie aren't facing a financial crisis. they have plenty of money to slop around capitol hill. so we like them. the more people exaggerate these problems, the more pressure on these companies and less we'll see in terms of affordable housing. interesting. they aren't in any kind of financial problem, huh? they brought the entire world economic system down because of these policies. now people had the gal to say that -- gall to say that free enterprise doesn't work. the loans were cut into pieces and sold all over the world and there was no market for them anymore. we were called in congress a couple of years ago and told hey, you have to do this big bailout, $700 billion to get the economy back in line, why? because we didn't manage this thing correctly. the interesting thing is, now with the economy going bad, the democr

fannie mae and freddie mac give the taxpayers a contingent liability of $5.5 trillion. so what happens if these loans all blow up? that means the taxpayers are stuck with 5ds.5 trillion plus one, and know the math on that. $6.5 trillion in contingent liability for the american taxpayer because the people that don't understand free enterprise think somehow the only reason that thank somebody that doesn't have an income, doesn't own their home is because nobody's offered them a no down payment loan. and so you they're going to figure out -- and somehow they're going to figure out how they're still going to pay the mortgage payments on a house. now, that means -- here's your house, you have no skin in the game, and it takes at least six months to foreclose in most of the states on a loan like that, well, who wouldn't take a home for -- i wouldn't, actually, but there are many people that would take a home for no down payment, you get to live here for six months without making payments before we figure out how to evict you. we had a bankruptcy clawback bill that was brought

will hold a conference to look at ways to fix the country's broken housing finances and overhauling fannieae and freddie mac that have been run by the government since their near collapse in 2008. >> dairy queen asking the court to halt sales of blue frozen yogurt. the name is true close to another name. >> and they purchased quaker oats and they are planning new products, including maker mix up creations allowing kids to combine flavors and muti grain coming out for adults. >> consumer confidence and home prices are the right. >> voters in antioch will decide whether they want to pay an extra half cent sales tax to avoid further cuts. city council voted to put it on the november ballot. it would raise antioch sales tax to 9.7%. they say it may be the only way to avoid cuts to police and fire services. concord and novato city councils have voted to put an increase on their ballot. >>> san francisco voters will have a series of tax measures to consider this fall in addition to a car registration tax and hotel tax. san francisco supervisors have agreed to a citywide vote on increasing the ta

if fannie mae came in on a first-come, first-served basis at 55% of the bank approved, higher appraisal prior to any recession with the requirement licensed in a bonded contractor bid for a minimum purchase price upgrade, jobs would explode. not to mention the quickly expanding taxpayer rolls. host: in the latest edition of business week, james warren writes "the primary goal for businesses of all sizes and business owners of all political beliefs -- now the the stimulus is winding down they might have something else in common." this quote from dennis lane, "we can no longer for the government that we have, maybe they need to hire more workers to get even less done." speaking about the budget deficit on the states, here is part of the summer session from saturday. >> this is how we are positioning our states for success in the future. it will be important. successors and future generations can have a more sustainable state governments in their place. >> it will take a modification and expectation of the public based on what the government does. this is how they maintain the capacity wit

fannie and freddie proved that this definition can be highly destructive. oochecongress could have writte, madam president, legislation to address key issues that played a role in the recent crisis. on government-sponsored enterprises, fannie and fredy, the bill is silent aside from a mere study. on the tri-party repo market, the bill is silent. on runs in money markets, the bill is silent. on the reliance of market participants on short-term commercial paper funding, the bill is silent. madam president, on maturity transformations that allowed the shadow banking system to effectively create money out of aaa-rated securities, thereby make the system much more vulnerable, the bill is silent. on the financial system's overall vulnerability to liquidity crisis -- crises, the bill, again, is silent. madam president, we know with certainty that all of these factors, none of which are addressed in the bill, were integral to the recent financial crisis. and while we do not want to write legislation that only deals with the last crisis, we do want to enact a law th

a.i.g., fannie mae, freddie mac, germ motors, the student loan programs, that comes to to 1/3 and along comes obamacare, the nationalization of all of these entities, all fortune 500 companies and we come to the nationalization, mr. speaker, of your skin, your skin, and everything inside it, taken over by the federal government and the very taxation of the outside started the first of july if you walked into a tanning salon, 10% goes to uncle sam to pay for obamacare which is going to be a revenue-saving operation. we need to repeal obamacare and pull it out by the roots. i have in conjunction with michelle bachmann, worked intensively to repeal obamacare. she introduced a repeal on the first day. i introduced one on the first week. we have a discharge at the petition at the well, discharge number 11. we have 136 signatures and i wouldn't be surprised if it goes over 140. a discharge petition can circumvent a block by the speaker if 218 signatures on discharge petition number 11, that means obamacare comes to the floor of the house where it would certainly be repealed in the house, howe

example is the talk abt fannie and freddie mac constantly, their responsibility for the recession and yet there is a complete lack of discussion. i would love to hear them talk about what the federal reserve did last year with their brand of stimulus. fannie and freddie mac received about $145 billion but the federal reserve bought out $1.20 trillion of, i believe, the private banks' mortgage toxic assets. no one ever speaks about it. and i believe we need to have that dialogue from our conservative friends to get up -- a more full picture of what happened. host: susan, washington, republican line. caller: good morning, c-span. i've got several concerns. i live here in washington state. patty murray is going to be running against somebody -- we are not sure who yet to. but when we have the stimulus package, the board going to vote for that, i e-mail her along with other friends of mine that i was not supportive of it, and also of the health care package and she email back that well, she understood our thoughts but she was going to go ahead and vote for it anyway because she knew what

democrats are expected to take up another contentious issues, the future of government-run giants, fannie and freddie mac. >>> the average person on the street probably does not have any idea what the financial reform bill does. in fact, i would say probably a lot of lawmakers don't either. scott mcgrew joins us with a look at that. >> and that's okay. it really is. and here's why. many of congress can't say what the bill does, even though they're signing off on it. it's a regulatory bill. what the bill is saying, it's setting goals for, say, the fdic, the s.e.c., the new consumer protection agency that you mentioned. it doesn't say how to enforce the goals. it says stop the crisis that we lived through from ever happening again, but it's up to the executive branch in the future to determine how to do that. how to make financial companies and banks and hedge funds more secure. this makes those financial industries crazy, because they simply don't know what to expect. wall street does no what to expect from apple. lots of money. the broader markets will respond to apple's news it made the

are expected to take up another contentious issue, the future of government-run mortgage giants, fannie mae and freddie mac. >>> millions of people out of work are soon going to have their jobless e lesless benefit. senate democrats broke through a republican filibuster yesterday and so now a final vote is expected today. democrats won with support from senator carte goodwin, the newest west virginia democrat. the extension failed three times since june. republicans had argued that the $33 billion measure should be paid for by offsetting cuts in other spending. now, nearly 270,000 californians will benefit from the extension, according to the employment development department. but another 147,000 workers in the state have exhausted their unemployment maximum, so they're really not going to be helped by this extension. >>> it's 6:14 right now. there's a new twist in that argument over who owns facebook. there maybe, actually, a written contract between founder mark zuckerberg and a man who says he owns 80% of the site. >> this is just a weird story. who would have ever expected this? and

that the uneven treatment of the creditors financial institutions beginning with bear stearns an fannie mae freddie mac and of course everyone knows lehman brothers was the proximate cause for taking what was a significant financial crisis. but generating a financial panic. everyone lost faith. so i would be very sympathetic to that argument and i think he's correct. our analysis, the analysis that dr. blinder and i conducted began after the panic hit, after we were in the middle of turmoil and the financial system was on the precipice of a collapse and we asked the question, well if policymakers had not responded by provided equity to the banking system f policymakers had not responded by conducting bank stress test, if the f.d.i.c. had not stepped in and guaranteed bank debt issue ansesance f the f.d.i.c. had not raised deposit insurance limits to restore confidence, if we had not had all the plethora of tax cuts and spending increases that were all the various aspects of stimulus, then we what be in a measurably worse place. john is right there were a number of policy mistakes that g