federal reserve board. prior to that he was associate rector of the division of international finance and senior economist. he is taught has taught at the university of california's school of business. joe if he could start our discussion off. [applause] >> is very wicker or is someone going to turn the page? thanks for having me here, michael and i would like to talk about what the federal reserve can and should be doing to help restore full employment. let me just start by saying that it is true that we are, the federal reserve has said its policy rates at zero, the lowest it's ever been and that is the bounds for reasons i won't go into, but it doesn't mean that it is all the federal reserve can do. the federal reserve, monetary policy works in general by tilting the balance between savers and spender so when monetary policy wants to increase spending coming and going, they lower the rate of return to savers which makes it more attractive to borrow and spend. when they want to slow the economy down they

captioning institute] [captions copyright national cable satellite corp. 2011] >> coming up, federal reserve chairman ben bernanke on the current federal budget debate between president obama and congress. our financial coverage continues with bob mcdonald on the fiscal situation of his state and later joint chiefs of staff mike mullen's remarks on military leadership and the middle east. >> what i try to do is tell a story with visuals instead of words. i'm writing paragraphs, they just happen to be with images. >> carol guzy has won the award more than any other journalist. >> great thing about being a journalist is the variety we get to experience, so many parts of the human condition on so many different levels. >> she'll talk more about her craft tonight on c-span's q&a d. you can also download a podcast of the show. it's one of our many signature programs available online at c-span.org/podcast. >> federal reserve chairman ben bernanke held the first news conference in the federal reserve's 97-year history. after a meeting with the central bank's monetary policy committee. he addressed

federal reserve board. prior to that he was associate director of the international command and senior economist and has taught at the university high school business. joe if you can start the discussion off. [applause] >> is there a quicker than i can -- is somebody going to turn the page? >> thanks for having me here, michael. i would like to talk about what the federal reserve can and should be doing to help restore full employment. let me just start by saying it's true the federal reserve said the policy rate to zero, the lowest it's ever been and that is bound for the reasons i won't go into. but it doesn't mean that it's all the federal reserve can do. the federal reserve monetary policy works in general by tilting the balance between savers and spenders so in the monetary policy wants to increase spending to get the economy going, they look for the return return that makes it more attractive to borrow and spend. when they want to slow the economy down they raise it which makes it more attractive to s

yeah i think that's unquestionable i mean the notion of jabbing against a federal reserve was extremely fringe and eccentric and now there's a national mass movement consisting of you know people in the streets chanting and the fed to us from all over the spectrum are recognizing that federal reserve policy contributed to the crisis well ron paul now heads the subcommittee in the house that actually you know covers the federal reserve is right on that issue has been amazing and you have a point in years ago nobody knew what the federal reserve was and now i mean most people yeah absolutely no one intended using it or at least know that that is a term that exists that's had something to do with the economy hopefully they know a little bit more than that but that set aside from the ideas that could ron paul be a viable presidential contender. well we're seeing some reason to believe. a c.n.n. opinion poll this is actually kind of staggering from last week actually showed when they matched up against obama the republican candidates ron paul actually was doing the best of all of them agains

president obama's put the federal reserve in a position where he feels compelled to hold the federale at zero, why hundreds of billions of dollars worth of treasury bonds. the joint economic committee republicans just released a paper onhis subject as well titled too loose for too long. the federal reserve is taking great risks with inflation, would not be necessary if the other levels -- levers of the private economy that the government can impact were set to go. dr. hall, i look forward to your testimony. >> thank you. congressman cummings. >> thank you, mr. chairman. i want to thank you for calling this a today to enable us to examine the current state of the plug-in or nation that i also think a witness, dr. hall, for appearing before us today, and for following up with my office return my question from last month's hearing. we learn from today's report, mr. chairman, in april the private sector added 268,000 jobs resulting in an increase in nonfarm payrolls of 244,000 jobs. these numbers are heartening because they follow 13 consecutive months of positive job creation. in fact,

darren gersh reports. >> reporter: every couple of months, you'll see a federal reserve bank president on "nightly business report." but did you ever wonder how they got to be a reserve bank president? they are selected by boards of directors at those reserve banks, boards that are overwhelmingly made up of business leaders and bankers. and for barney frank, the congressman who co-wrote the financial reform bill, that is the problem. >> to have people who are simply picked by private citizens who have a disproportionate, vested interest, for example, in higher interest rates setting this government policy is undemocratic. >> reporter: frank has introduced a bill to restrict voting on interest rate policy at the federal reserve to the chairman and six governors who are appointed by the president and serve as permanent members of the fed's key policy-setting committee. that committee is called the federal open market committee, because the decisions made right here at this table result in hundreds of billions of dollars of securities trading hands in the open market. and buying and selli

president obama's put the federal reserve in a position where he feels compelled to hold the federalds rate at zero, why hundreds of billions of dollars worth of treasury bonds. the joint economic committee republicans just released a paper on this subject as well titled too loose for too long. the federal reserve is taking great risks with inflation, would not be necessary if the other levels -- levers of the private economy that the government can impact were set to go. dr. hall, i look forward to your testimony. >> thank you. congressman cummings. >> thank you, mr. chairman. i want to thank you for calling this a today to enable us to examine the current state of the plug-in or nation that i also think a witness, dr. hall, for appearing before us today, and for following up with my office return my question from last month's hearing. we learn from today's report, mr. chairman, in april the private sector added 268,000 jobs resulting in an increase in nonfarm payrolls of 244,000 jobs. these numbers are heartening because they follow 13 consecutive months of positive job creation. i

the federal reserve system. the couple of cabinet secretaries came to new york to interview goldman to get his intake, his input on what the federal reserve system should look like. and i felt like in reading the transcript of the hearings it could have been laid talking to henry paulson as opposed to henry goldman talking to the cabinet secretaries in the early 1900's. his prescription for what the new york federal reserve should look like which would be the most powerful member of the federal reserve banking system as well as how banks were to get access to the federal reserve bank if they needed the funds if they were in a crisis situation was played out 100 years later and goldman was a beneficiary of that, so it was eerie how long goldman has had an influence in washington and where this all began with henry goldman, but then after sidney weinberg basically every leader of the firm was either interested in the politics or came to washington and part of the reason is because goldman has now especially very m

they're not you know whether it's the federal reserve or our foreign policy just think how many times i we've gone to war by distortion of the ever. and as you know and lie our way into war whether it was world war whether it was vietnam war or you know going into iraq i mean they have that you know deceive us. and then when the people distrust the government then any question government is called a conspiracy theory you know in a a doodad to say that you're not a moderate every there yes every everything is a conspiracy but i think the best thing is you should only believe the conspiracies that are true and have of course there's a conspiracy of people getting together and thinking how are we going to manipulate the money supply but in the in the intellectual way those of us who think that we should have a different system you know we sit around talk so we conspire and write if necessary use the word loosely we can spiral how we're going to change the world and how we get more people to understand economics. but it's almost like why is the government so stupid if you don't like consp

the federal reserve is working with other u.s. regulatory agencies to implement dodd-frank reforms in additional areas, including the development of risk retention requirements for securitizations sponsors, requirements for the over-the-counter derivatives and incentive compensation rules and risk management standards for the counterparties and other financial markets utilities. the federal reserve has made significant organizational changes to better carry out its responsibility. even before the enactment of the dodd-frank act, we were strengthening our supervision of the largest and most complex financial firms. we have created a centralized multi disciplinary body to oversee the supervision of the firm's. this committee uses horizontal or cross firm evaluations to monitor interconnectedness and common practices among firms that could lead to greater systemic risk. it also uses additional improved wanted of methods for evaluating the performance of the firms and risks that might pose and more efficiently employs the broad range

ben bernanke is currently serving as second term as chairman of the board of governors of the federal reserve system. the honorable sheila bair is the chairman of the federal department insurance corporation and recently announced she will be stepping down as the chairman of the fdic at the beginning of july when the current term expires i would like to think you for all the work you have done to serve the people of the united states. i will truly miss you come july and wish you well in any future endeavors that you pursue the honorable mary schapiro was the chairman of the u.s. securities and exchange commission. the honorable gary eve ensler is the chairman of the committee future trading commission. mr. john walsh's the comptroller of the currency of the office of comptroller of the currency. i thank you all for being here. secretary, you may begin your testimony. >> thank you. jarman johnson, a ranking member shall be, members of the committee, i appreciate the opportunity to update you on the treasury department implementation of the dodd-frank act. although our economy and financial mar

federal reserve have not produced more results now in the long run with all these all this borrowing it's going to be disastrous for us well look there are elements a look at york is that is look at the number of americans that are employed for example last year only forty five point four percent of all americans have a child that was the lowest number since one thousand nine hundred three but if you look at the number of americans only sixty six point eight percent of american men had a job last year that was the lowest number ever recorded and now michel now michel that there are some of the statistics you pointed out in a recent column on what's happened to the american dream and another that you point out is that forty one percent of all jobs in the u.s. are low income so this job growth that we're seeing and some of the biggest gains last night were in retail manufacturing healthcare restaurants we know mcdonald's announced i'll be hiring sixty two thousand workers are these more of these low income jobs and are those the jobs that they merican dream with bells on. that's exactl

government and the federal reserve have a sense and we've got them all in an all out it's going to stimulate the u.s. economy in the short term the u.s. government has been doing all the stimulus packages so trillion in house in dollars in debt this year alone the federal reserve has struck interest rates to rock bottom of it and doing all this quantitative easing so the truth is that the unemployment should be much lower than it is right now it's actually discouraging to see you know all these efforts by the federal reserve have not produced more results now in the long run. all of this borrowing is going to be disastrous for us and our mother element to look at here is that is look at the number of americans that are employed for example last year only forty five point four percent of all americans had a job that was the lowest number since one thousand eighty three and if you look at the number of american almost sixty six point eight percent of american don't have a job last year that was the lowest number ever recorded and now michael now michael does there are some of the statistics yo

he is the president of the federal reserve bank of kansas city, and he thinks the federal reserve isg all the wrong moves as it tries to guide america to recovery. welcome. >> thank you very much. delighted to be here. >> so the most important thing the federal reserve does is set interest rates. and by keeping interest rates very low ever since the financial crisis, essentially at zero, it has allowed banks, corporations, but also individuals to borrow money cheaply. this has fueled this recovery such as it is. you're saying we need to stop that, we need to raise interest rates. there are a lot of people who look at you and think, this is crazy, this is the weakest economy since the great depression. the recovery is the weakest since the second world war, and in this context, to raise interest rates would put the brakes on the recovery such as it is. >> first of all, i think it's important to remember that the policy that was implemented today was the policy that was implemented during the crisis itself. we are well into our second year of recovery and we have to think forward from

member of the federal reserve banking system as well as how banks work to get access to the federal serve bank if they needed funds, if they were in crisis situation, was played out exactly 100 years later. and goldman was the men beneficy of that, goldman sachs was. so it was eerie how long goldman has had an influence in washington and where this all began. it really began with henry goldman. but then, you know, after sydney weinberg, basically, every leader of the firm was either interested in politics or came to washington. and part of the reason is because goldman has now, especially, pretty much an up and out mentality. once you have made your pile of cash at goldman sachs as a partner, you know, they sort of force you out. which is very interesting. other firms, you know, they're not set up like that. when i worked at lazar ferrer, for instance, people like steve ratner wanted to be treasury secretary. they never got there, steve ratner was the car czar, but, you know, there was this mentality that, yes, public service is important, but, you know, until we get sort of tapped o

because the reason that the federal reserve is printing so much money is because brock obama and congress are spending so much money they're not collecting enough in taxes and so ben bernanke is printing up the difference and the result is rising prices so you know you can think of higher gas prices as simply a tax because the government didn't raise taxes in. raise income taxes or stay or all taxes they decided to run a deficit and have the fed monetize it the way we pay for it is higher prices because as senator taking our money the government is taking our purchasing power and the result is that gas prices go up food prices go up so all these prices are rising because brock obama is spending so much money and running these huge deficit so rather than i you know commissioning a study he should just look in the mirror and find a cause and if he really feels the pain of the average american as he pretends he does because of the pump he cut government spending he'd shut off the space right now but this is how we're paying for government we're paying for it now with four dollar gasoline but

the federal reserve is working with other u.s. regulatory agencies to implement dodd-frank reforms in additional areas, including the development of risk retention requirements for securitizations sponsors, requirements for the over-the-counter derivatives and incentive compensation rules and risk management standards for the counterparties and other financial markets utilities. the federal reserve has made significant organizational changes to better carry out its responsibility. even before the enactment of the dodd-frank act, we were strengthening our supervision of the largest and most complex financial firms. we have created a centralized multi disciplinary body to oversee the supervision of the firm's. this committee uses horizontal or cross firm evaluations to monitor interconnectedness and common practices among firms that could lead to greater systemic risk. it also uses additional improved wanted of methods for evaluating the performance of the firms and risks that might pose and more efficiently employs the broad range

president obama's put the federal reserve in a position where he feels compelled to hold the federalunds rate at zero, why hundreds of billions of dollars worth of treasury bonds. the joint economic committee republicans just released a paper on this subject as well titled too loose for too long. the federal reserve is taking great risks with inflation, would not be necessary if the other levels -- levers of the private economy that the government can impact were set to go. dr. hall, i look forward to your testimony. >> thank you. congressman cummings. >> thank you, mr. chairman. i want to thank you for calling this a today to enable us to examine the current state of the plug-in or nation that i also think a witness, dr. hall, for appearing before us today, and for following up with my office return my question from last month's hearing. we learn from today's report, mr. chairman, in april the private sector added 268,000 jobs resulting in an increase in nonfarm payrolls of 244,000 jobs. these numbers are heartening because they follow 13 consecutive months of positive job creation.

did not have a fed to buy the debt, we do not have to be responsible because ultimately, the federal reserve will keep the interest rates from going up, either we cannot borrow. the federal servo print the money and keep interest rates low. it is always there to do that not go that facilitates the growth of government. the fed is a culprit and we have to address that's. we cannot solve our problems without looking at the monetary issue. [applause] the great thing about what has happened in the last four years is that all the sden, the federal reserve and monetary policy has become an issue out on the table. that is a great victory and i think so many of you live helps. -- thank so many of you who have helped. we did not get our fed bill passed. it was not passed in the senate. a lot has happened. we got a partial audit and we are getting more information a it is astounding. as much as i had anticipated it would be very bad, mor than a third of these trillions of dollars that they have pumped in to help out their friends, a third of it went to overseas banks. not to the americans who are losi

. >>> also ahead, the federal reserve, the markets and a lot more. 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. >> i'll be back with more from brazil coming up. >>> but first, let's get the headlines of the week with tyler mathisen. over to you, ty. >> thank you so much, maria. here is a look at what is making news as we head into a new week on wall street. federal reserve chair ben bernanke made history this week but not a lot of news. for the first time, a sitting chairman met the media and held a formal news conference following a fed meeting. mr. bernanke said the fed is watching inflation very closely. >> while it is very, very important for us to try to help the economy create jobs and to support the recovery, i think every central banker understands that keeping inflation low and stable is absolutely essential. >> during the meeting, the fed kept interest rates at near zero percent, lowered its growth projections and improved it

the federal reserve banking system. when after the panic of 1907, they decided to create the federal reserve system, the couple of cabinet secretaries came up to new york to interview henry goldman to get his intake -- his input -- on what the federal reserve system should look like. i felt like in reading the transcripts, it could have been lloyd blankfein talking to henry paulsen, rather than cabinet secretaries in the i recallly -- in the early 19 00s. his description, be the most powerful, as well as how banks were to get access if they needed funds in a crisis situation, was played out exactly 100 years later. goldman was the beneficiary of that. it was eerie how long goldman has had an influence in washington and where it began. it began with henry goldman. after sidney weinberg, basically every leader of the firm was interested in politics or women to washington. part of the reason is because goldman has now, especially, very much up and out mentality. once you have made your pile of cash as goldman goldman sachs

that is why it has devalued and the reason why we ought to get rid of the federal reserve.rs and applause] >> now there are a lot of reasons why we shouldn't have a central bank. it isn't authorized in the constitution. it devalues currency and bad economic policy. but the one issue that really is dangerous to our cause of liberty is that it allows the expansion of government. if we did not have a fed to buy the debt, the moral hazard provided by congress, because ultimately the federal reserve would keef the interest rates from going up. they will print the money and keep interest rates low. it is always there to do that. that facilitates the growth of government. whether it is growth of government to fight wars we shouldn't be in or providing a cradle to grave entitlement system. we cannot solve our problems without looking at the monetary issue. [applause] the great thing about what has happened in the last four years is all of a sudden, the federal reserve and monetary policy has become an issue out on the table. that is a great victory, and i thank so many of you who h

federal reserve system does not mention gold in it once. the federal reserve act doesn't mention gold in it once, and yet everybody assumed when it was set up, it would be set up on a gold standard. it was so widely assumed nobody put the words "gold" in the federal reserve act. and that's the way it operated for the first 20 or 30 years. so there was just one other thing i wanted to mention on guns. i found this pretty funny. in connecticut, in 643, there was actually a statute that required you to bring your musket to church and i think i'll stop with that and take questions here. if you don't mind, make sure you speak into the -- do you have a mic you want them to speak to? we're okay? i'll just repeat the question if we can't hear. if we're ready to go, we'll take questions. yeah, just raise your hand and we'll get the mic over here. such a huge group here. >> we were talking about bailouts at work today. we were discussing how does that work like california who's almost bankrupt and they may need a bailout. how does a state get bailed

the move higher comes as the economy may hit a summer soft patch and the federal reserve prepares to end its government bond-buying binges. >> suzanne: a summertime investment strategy for when the fed buying stops. you're watching "nightly business report" for wednesday, may 25. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made pole by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. susie gharib is off tonight. i'm joined by my colleague suzanne pratt. suzanne, stocks moved higher today, putting a halt to a three-day selloff. >> suzanne: tom, one of those bumps could be the completion of the federal reserve's bond- buying program, scheduled for the end of june. the $600 billion strategy is known as qe2, or quantitative easing. its goal has been to keep bond prices high and interest rates low. >> tom: so, what will the end of qe2 mean for your portfolio? erika miller reports. >> reporter: ask anyone on the street a

now what was your second question about the federal reserve? the that is certainly true the federal reserve with the congress has given such open-ended authority to the fed that it can do what ever it wishes. it can have 600 billion, a trillion dollars, they are spewing out trillions of dollars we don't know who is getting the money interest free and congress has virtually no -- they've given away all the power. >> private organizations? gannet it is and it is not. you have the open market committee has made up of the presence of private banks but the goal board of governors, they are appointed by the president with advising and the have to serve 14 year terms but it is true that the congress basically said that this federal reserve board should be guardians for the economy, and no blame if something goes wrong but we just wash our hands like any responsibility which to me is just a gross, gross navigation of ressa accountability to the members and again, the equally if not more pernicious element is it is secret. they make loans. they are maki

you want to cut government spending by 50%, eliminating the federal reserve to the department of homeland security? >> yeah i. under your plan, what would you leave for the federal government to do? >> i would like to default the constitution -- [cheers and applause] >> have you a government that provides national defense, but you don't have mill militarism. maybe we could take care of people at home if we weren't spending $1.5 billion a year on military. that money needs to be spent at home and we would have more defense, not less defense. i don't see why we should raise the national debt. you say default. probably not. they have money coming in. they can patch it over and pay it. that's the only way to get a message. it is nothing new. our country has defaulted three times. they promised at one time during the civil war to pay in gold. they refused to. in the 30s, they promised to pay in gold. they refused to. in 1971, they promised to pay foreigners in gold, we defaulted. once again, we are going to default. we are defaulting every day. that's what the prices are doing. they are defaul

reserves. we believe the federal government in combination with the people is better capable of assessing than are. we are not saying exactly what the reserve should be. at the head of its credibility, the bank of england which was then the central monetary agent in the world and now the federal reserve is, only kept about 5% on reserves against currency. on reserves against currency. until the federal reserve re- earns credibility, it will require something more like 30% or 40% but that is way above my pay grade. host: in addition to what we have been talking about, one viewer writes fri-- there's this idea is to pay the country's debt. guest: what a terrible idea. host: how much gold is there in fort knox? guest: the official gold reserves of the u.s. is about 8,000 tons for it is roughly four times as much as germany and they are number 2. host: how much money with that represent? guest: role hundred billion dollars. -- several hundred billion dollars. dollars. mr. lehrman spoke about this. mr. lehrman spoke about this. he talked about how america might be a net buyer of gold for a while. t

think this is just a random question but is the federal reserve a private or public bank it is i private bank. but pappa like how i think it's actually private bank ok. i think. it's actually a private bank for sure i'll be honest with you. i like to see families are resolved to solve. what you think about the fighters or i don't think care for the. public it's actually a private bank it's a bank and that and then to say that you're right to set up a nine hundred thirteen by big bank stars how do you feel about herman cain being chairman of the kansas city but a reserve. i can't speak on the back and i'm not familiar with that there's a concern you that he was chairman. this private. no don't concern me most all the louse were made before he ever got there now you know now so do you believe we should get rid of the fitters or oh yes definitely so doesn't it concern you that ok let's recap you know so how do you feel about herman cain being the former head of the kansas city federal reserve bank i don't know much about herman cain oh you know we. would you vote for herman cain. does his h

the federal reserve system doesn't mention gold in it once, not once, and yet everybody assumed when it was set up, it would be set up on a gold standard. it was so widely assumed nobody put the words gold in the federal reserve act, and that's how it operated for the first 20-30 years. one other thing i wanted to mention on guns that i found funny. in connecticut there was a statute that required you to bring your musket to church. i'll stop with that and take questions here. if you don't mind, make sure you speak -- is there a mic? i'll just repeat the question if we can't hear it. if you're ready to go, we'll take questions. yeah? >> just raise your hand. >> okay, such a huge group here. snow did it. >> i'll ask one. we're talking about bailouts at work today, and we were discussing how does that work like california whose almost bankrupt and they need a bailout, how does the state get bailed out or does that ever happened? >> it's never before happened in american history. i suppose if you want to stretch it, you could argue that in the revolution because the states had big debts

begins to flatline its reanimate with the help of cash injections from the mad scientists the federal reserve which lead to further devaluation this is the perversion of most monetary systems before big government in which the currency or medium of exchange actually have value of its own but is it consisted of something of value like a precious metal or was a certificate that was backed by something as the u.s. dollar used to be backed by gold and now we have somebody banks zombie dollars somebody voters anyway i've had a shotgun but utah has decided to try its own hand of the black arts of resurrection i'll be at with far less an affair is intentions than tyranny or the destruction of the productive class honest currency has fallen into the realm of myth and legend but in a story sure to make waves around jekyll island the state of utah has just approved a measure making it legal to use gold and silver as legal tender within its borders that's right in utah the federal reserve's not believing is no more the evil retaliation plot is pending. governor gary herbert signed the bill effective on

well as we as the crimes of the federal reserve and the crimes of our government and the military industrial complex start to unfold and we start seen higher inflation and people can't afford food they're not going to be able to hide it so you're fooling yourself if you don't think that the government is going to come down hard on anybody that is a so-called activist these activists are going to be called terrorists and they're going to use the authority of the state come down hard on us so what i'm looking for in the future as we see price increases in food as we see people not being able to hold a level a basic standard of living the government is going to distract us with either a war externally another war or in some cases i believe they're going to use the military or police of authorities against the american people i'm talking martial law rounding up of individuals that can afford to pay for it necessary items and put them in camps that's what i believe a virtually this is going to lead to and that is the final prediction from george having car that i'm going to leave you with and i t

i mean i don't trust them as far as i could see him because he was you know chairman of the federal reserve in kansas city but i do look forward to questioning him yeah i want to know what we're out in a moment you know i want to play one of his answers i said his answer on immigration was really good. the immigration issue in america is not one problem it's full of problems it's securing the border in force and the laws that are there . promoting the path to citizenship that we already have we don't need a new path we've got to clean up the bureaucracy in the process and then number four this is where i believe you empower the states to do what the federal government cannot paint is not doing and he got a pretty good applause for that and what i was surprised is he was advocating a position where he's saying we need to clean up the bureaucracy we need to find a way to let more people in under the current laws that's a significant significant and not only that but he also allows those sort of more stern states like arizona allows for them to have their own autonomy to govern for in some pla

we have a boom, bust cycle created by the federal reserve, that needs to end. a lot of people believe that housing prices need to fall. it has not gotten down to a certain trend line. we have to hope that once it gets there, the market will be in recovery. you do not want housing prices to decline if you want construction dollars to return. we want a stable market. it is a hard situation. host: what about current owners of homes? guest: that is also important to consider. people will pay money on a house that does not have the equity in it for years. host: what about those that want to take a home improvement loan amount or help pay for college? guest: banks are still tighter than they were. it is for good reason. they lent this people this money, and it was a bad idea, because they were defaulting and there were foreclosures. we are seeing lending pick up, but it is still at relatively low levels. host: springfield, ohio, republican line. caller: you mentioned the auto industry was having a great year. i thought they are only going to come around 11 or 12 this

you're still here from the federal reserve building right here in d.c. i mean doesn't know what they're doing you try to think of these like the latino players zombie like growth rate over here and. this news really wanted to be there with the deal but. to actually just talk to them as i want it is amazing it's like you who's played like a zombie to brains like oh my god the son of the video there were in the vicinity and i think he was more afraid of me than i was afraid of and then he just wandered away well it could have been a lot worse you're really lucky i mean we have the story of robert wenneker in north dakota from minnesota with his incident there where he was just an awfully detained for this well we have the video footage because and this is really important because when cops do things like this there is a measure of accountability that we have now thanks to the internet and with the case of robert when it he was attained illegally in washington north dakota but was able to get this footage out almost right away and had a he was able to get a

number one and what did he do he had a public press conference first time in the history of the federal reserve as bernanke he was speaking the dollar was crashing gold prices shot up twenty dollars an ounce silver prices two dollars an ounce hey that data the news now so you see the way these things change so rapidly so going back to the economy because ron paul says issue on the economy is also one hundred eighty degrees apart from obama's and the standard for recently downgraded our debt rating some agencies would put us on the scene now or saying that we're going to not be a credible borrower anymore the u.s. government is not and i think the economic issues are going to be most important when it comes to obama's reelection people are going to be evaluating are they better off now than they were four years ago what do you think this means this downgrading by standard or two to our to our debt rating in terms of obama's ability to keep people happy. well it's going to be downgraded at some point in the g.d.p. to debt ceiling in the united states is ninety five percent of g.d.p. to dead it wa