. >> will you do the same on fannie mae and freddie mac? >> certainly. on the financial services committee, we will try to understand what is happening within the home ownership market place and understanding the cost and losses to the taxpayers from fannie mae and freddie mac and the legislative ethics. much of that will be dealt with with the financial services committee. we are going right into writing the legislation for that. i want to take some of these wider range issues like securitization and state bailouts and get into the nuts and bolts of it. >> one thing that has hung over a lot of these answers is the weak economy. if the economy were to get better, that would help the foreclosure issues and the state issues. gdp has gone up 3.4%. what is the republican congress going to do about the economy and jobs? is there anything you guys have for these next few months to try to address these problems directly? >> we believe the massive expense of the federal government has hurt the economy and hurt job growth. we could do more quantities in easing. w

we learned, for example, just as one example that already fannie mae and freddie mac have demanded that a set of banks purchase back $35 billion of loans where those banks-- fannie and freddie-- breached their representations and warrantees. already those banks have ponied up $20 billion. we found instances where banks did not disclose to investors what they knew about the mortgage securities they were selling. so there's lots of new information. >> woodruff: a lot of information to pour over. let me read you the dissenters. there were four dissenters, four republicans. three of them together came forward and among other things they say it is dangerous to conclude that this could have been avoided only if the regulators had done more and if there had been more responsible bankers. they're saying that that essentially is a simplistic conclusion that leads... is going lead to simplistic changes. >> well, sometimes simple is powerful and right. our conclusions were based on an exhaustive year-long inquiry and here's what we believe very strongly. this didn't need to happen. it was avoidabl

freddie mac you never see what is going on inside. >> what fannie mae and freddie mac did was they assumed the mortgage lending was less risky than it turned out to be. under other circumstances, i do not think it would follow the policies that they did. these were two institutions that promoted home ownership and promoted the housing industry. they were extremely thinly capitalized. they had small capital bases for lending. they felt that the losses would be minimal. they helped power the house and bubble. but they were not the only ones powering the house and mobil. the same practices were filed in the private sector as well. in my view, it is a false dichotomy treate. go back to everything going down. you do not think so? >> what the think is worst that coun? >> that the united states would default on its debt. 20 years ago, that was inconceivable. i do not think it is one to happen. it is not inconceivable. the people who borrowed from us will have to take a hair kept and receive 90 cents on the dollar. -- a year cut -- a hair cut and receive 90 cents on the dollar. people would lose f

first three months of the new congress and they are the wickedly cables, fda recalls fannie mae and freddie mac, the failure the financial crisis, corruption and in afghanistan and business regulation. when looking at the golden gate bridge not a lot of traffic on this sunny afternoon. stay with us will be back after ♪ let's go out to the dmv ♪ it's ok that we're number four hundred and three ♪ ♪ we'll find ourselves a comfy seat ♪ ♪ and watch some shows and stuff ♪ ♪ ♪ let's follow that lady with the laptop ♪ ♪ and watch day-time dramas at the bus stop ♪ [ male announcer ] now you can watch hit tv shows on your laptop and smartphone with at&t u-verse tv. now get up to $300 back in promotion cards. at&t. rethink possible. this is the scene as they were celebrating picking up the coach. the team is to ride back on campus sometime soon not exactly sure when. that's what kron 4 vern and glad will join us live. it vern are you there? >> i could tell you that the team is still on the plane and the plane is still in the air. they haven't landed yet i guess there's a delay getting out of miami after t

freddie mac said today the average rate on a 30 year fixed loan hit 4.8% this week. it was 4.74% last week. rates hit a record low in november of 4.17%. interest rates have done little to convince future home buyers to make a purchase because many believe prices are still coming down. >>> and pending sales rose in november, marking the fifth increase in six months. the economists caution because people are buying forclosed homes. >>> take a look at wall street, stocks managed to tick higher pushing the dow to it's highest level since summer of 2008. the dow gained four points finishing just shy of 12,000 points. the nasdaq picked up 15 points closing above 2,070. >>> it appears drug smugglers are getting creative. several people prepared a catapult and launched packages over the fence along mexico's border with arizona. mexican authorities reportedly disrupted the catapult operation and found 30 pounds of marijuana. >> how about a stroll through the garden? john fowler joins us now with remarkable research into why house plants could one day be used at security check

. >> what about the fannie mae /freddie mac has story? number one, we do not know much about them anymore. you do not see much coverage -- you never see what is going on inside. >> what fannie mae and freddie mac did was part of the boom, and again, they assumed that the mortgage climate was less risky than it turned out today. i do not think they would have follow the policies that they did under different circumstances. these institutions were created by congress to promote home ownership and promote the housing industry. they were extremely thinly capitalized, meaning they had very small capital bases for trillions of dollars of lending. the assumption was that their losses were going to be minimal. they helped power the housing bubble, but they were not the only force powering the housing bubble. the same practices were followed in the private sector as well. so the argument that now people are having, which is that it was all fannie and freddie's fault or all the private- sector's fault, in my view is a false dichotomy. they both wer

america jumped over 6% after it agreed to pay $2.8 billion to mortgage finance giants fannie mae and freddie mac to settle claims over bad mortgages. the nasdaq was driven by apple which rose over 2% after one analyst raised its estimates and price targets. goldman sachs gained almost 3% after a report it bought a stake in facebook at a deal worth $50 billion. optimism the economy is mending came with a price. overnight in asia, oil inched back towards $92 a barrel. keep an eye on johnson & johnson today after it announced partnership with boston scientists on a ground-breaking blood test for cancer. >>> and finally, a reminder our troubles are not exactly over. the u.s. treasury website reports as of the last day of 2010 for the first time the national debt topped $14 trillion. >>> well, miami millionaires light it up. shaq gives a teammate a lift, and denver's mascot comes up golden. plus in last night's orange bowl, luck was literally on stanford's side. your early morning sports headlines are straight ahead. >>> besides a little rain in houston and cold air in the northern plains a peaceful

the bank will pay $2.8 billion to fannie mae and freddie mac. fannie and freddie will use the money to buy back home loans issued by countrywide that have gone bad. oil prices rallied along with stocks on prospects of a sustained u.s. recovery in the new year. crude hit a 26-week high, rising above $92 a barrel before falling back a bit to close at $91.55 a barrel in new york trading. is facebook worth $50 billion? that's the price it's being tagged with. goldman sachs and russia's digital sky technologies invested half a billion dollars in the social networking site last week, putting facebook's total value at $50 billion. still ahead, in tonight's beyond the scoreboard: union negotiations with billions of dollars at risk. how the economy affects talks between the n.f.l. and its players union. >> susie: as we reported, encouraging economic news was the catalyst for today's market rally. american factories are running at the fastest pace in seven months. the manufacturing index of the "institute of supply management" jumped in december. also toda

three weeks -- that fannie mae and freddie mac are in. it was three weeks for him to convince mr. low-carb, who used to be the overseer -- mr. lockhart, who used to be the overseer, to take action. >> i wanted to find out more about the extent of accounting fraud. we know about rigo 105 and rigo 108 -- repo 105 and repo 108. >> that is a publicly known case. the attorney general of new york has filed an action and we account the transaction. we do look at off-balance sheet positions. ok. >> ron oral, market watch. there was legislation that never made it to the final draft that would cap leverage of financial institutions at 15 to one. the argument was that it discouraged the u.s. to compete against financial institutions in other countries. based on your research, are you disappointed that there is not a cap on the rich? do you feel that it would have been in force properly if there was a cap? what are your thoughts generally on the leverage situation of these large financial institutions. >> let's be clear. regulators had and have the authority to control leverage. the sec could

>> guest: well, he does refer to, you know, fannie may and freddie mac. he was imploring the house essentially to act on the issue and deal with banking reform. i don't recall anything about the execution in the book because he tacks very little about his time in texas. >> host: right, to let you know, we have a few minutes left. what we haven't talked about that you wanted to bring up from the book, so if you think about that for a minute as we take this last call from san jose, california. go ahead, patrick. >> caller: i want to thank you for being there, c-span. it is a service to the american people to educate them and to make them informed on these matters of great importance such as the lives of presidents. i feel, though, that in this recent panel discussion you have done a disservice to c-span to show the president being interviewed and selling his book only to have a follow-up show where the representatives that you have selected, the three panelists all seem to be apologists for the policies, positions, and activities of the president being sold

.$8 billion to settle claims it sold bad home loans to mortgage finance giants fannie mae and freddie mac. the settlement is tied to mortgages made by countrywide, which bank of america bought during the financial crisis. myspace will reportedly lay off 550 employees or half its workforce. the trouble social networking site has lost revenue and members to its bigger rival facebook. news corp which owns myspace is looking for ways to cut costs and make the company more attractive to a buyer. and toshiba is racing the stakes in the tablet wars. it's offering a larger screen than the apple ipad and will include an upcoming version of google's tablet software. no word on yet how much it will cost when released in june. that's your moneywatch. for more stay with cbsmoneywatch.com. in no, i'm alexis christoforous. >>> it looks like facebook will change addresses. it's fixing up the sun microsystems campus in menlo park. facebook told palo alto it will be moving out. the company has been in palo alto since 2004 shortly after it was founded in a harvard dorm room. the sun campus was vacated after

this is the biggest mortgage insurer for fannie mae and freddie mac. the good news? fewer delinquent loans. the bad news? take a look here at the earnings. losing more money than anticipated in the fourth quarter. revenue saw a double-digit drop. that loss led to the stock losing a fifth of its value. 20.5% lower. this is a 30-session chart. shares had been climbing at the end of the year, expecting a better turnaround. didn't happen with the fourth quarter. it wasn't alone in the sell-off. fellow mortgage insurers p.m.i. group and radian dropping at least 15% each. genworth lost 5%. after the close, ebay announced better-than-forecast results, and its outlook was ahead of estimates. now that was some good news as ebay has struggled to turn its online auction business around. shares popped in october in anticipation of a strong fourth quarter. coming into the numbers, shares were down 1% but bounced up 3% after the close. speaking of outlooks, it was a weak outlook from semiconductor maker cree. shares shed 14.5%. take a look at this move lower today. since hitting a

the bank has agreed to pay $2.8 million to government-backed mortgage giant, fannie mae and freddie mac. but it is trying to recoup losses from mortgages they say had faulty information. >>> toyoting new facing new leg troubles over its so-called runaway cars. "the l.a. times" reports several companies are suing the automaker. the lawsuit claims certain models had a defect and should have had an override system. >>> the day after learning facebook is getting a huge, new investment we're finding out how much former rival myspace has fallen. the social network is reportedly planning to lay off maf of its 1,100-person staff. many experts say this as a sign that myspace will eventually be put up for sale. >>> microsoft has restored e-mail for thousands of user, after messages and folders started disappearing on thursday. all missing messages has been returned to > oprah >>> oprah winfrey's new cable network is off to a strong start. preliminary numbers show 1 million million people tuned into o.w.n., during primetime over the holiday weekend. only espn and usa network ranked higher among wo

>> to me, it is to get fannie mae and freddie mac in a more privatized environment where risk reward is more traditionally accepted. that the american dream is to own a home you can afford and to look at these entities and get more privilege at sector involvement and control who they lend money to and basically wind them down and make them more private. >> okay. let me move on to health care which you also raised. is there a chance for health care repeal or do you see room for compromise? all this talk about the individual mandate making individuals buy insurance. you talked about compromise on that early on. do you disagree that it is unconstitutional? lot of republicans believe that. >> i think that the problem of the individual mandate is that everybody is going to be under a government run plan. i was with seven republicans and seven democrats that required everybody to be covered. you did away with employer deductions and allowed individuals to buy health care into private sector across state lines and it was revenue neutral. you will see the fight on obama care across the board

said it would only cost $25 billion for the congress and the country to take over fannie mae and freddie mac. we're up north of 150 billion and it's going up. >> the worst political scandal is president obama's attempt to persuade joe says tack to drop out of the pennsylvania race, democratic primary so that u.s. senator arlen specter would win. worst political scandal. most underreported story of 2010, pat. >> the illegal aliens are going home and they're being deported, their numbers are reduced and nobody is mentioning that fact. the attrition policy is working if the obama administration would pursuit stronger they'd after great record ?oomplt excellent. eleanor. >> most underreported president obama's accomplishments, i'll mention one that a lot of people don't know about, the student loan reform which got the banks out as middle man. republicans are going to try to repeal that. >> the gallani verdict. he was acquitted of all but one charge when he was tried in civilian court. this was a disaster for the obama holder policy, and this could mean the death nail for that process. >> mark.

oversight economy:he that plans to investigate the bailout of mortgage companies, fannie mae and freddie macthe committee is also expected to take aim at stimulus spending during the historic recession. >>> well it is official, camilla harris now california's top cop, sworn in earlier today as attorney general, becoming the first woman and the first minority to ever hold that office. hundreds of supporters watched the former san francisco d.a. take her oath of office in sacramento. her journey to the ag's office came after a very close win over l.a. d.a. steve coolly. harris today pledging to make high-tech crimes a top priority as well as combatting gangs and mortgage fraud. >> today with this oath, we affirm the principle that every californian matters. >> harris is 46 years old and she is the daughter of a jamaica father and an indian mother. >>> well it is the final chapter for two east bay borders book stores. the border express at concord sun valley mall and the borders express in hayward are expected to close by the end of the month. they will join 184 other borders book stores nation

according to freddie mac, the rate on a 30-year fixed loan rose to 4.74%. but the rate on a 15-year loan actually fell to 4.05%. >>> on wall street, investors are worried that china may raise interest rates. that offset strong profits at morgan stanley and better than expected reports on home sales. the dow was down 2, nasdaq down 21. another fast food group is planning to ditch one of its brands. wendy's wants to find a buyer for its arby's chain. the roast beef sandwich chain accounts for 30% of wendy's revenue but it's struggling. earlier this week yum brands says it's keeping pizza hut and others but selling long john silvers and a&w. for more go to cbsmoneywatch.com. in no, i'm alexis christoforous. >>> progress on keeping the 49ers at candlestick park for at least four more years. the parks commission has approved a tentative five-year lease. the 49ers can opt out of a final year if a proposed stadium in santa clara is ready. it would also give the 49ers millions of dollars in rent credit to fix up the stadium. the board of supervisors still has to si

host: i want to ask you about fannie mae and freddie mac and what happens to them. what is your perspective on that? guest: i think no one is very comfortable with the intimate and freddie mac being around for the long run. -- very comfortable with the in the mae and freddie mac being around for the long run. in part of the operations will be privatized. the other part will be consumed in to the federal government. i do not think we will be using the words fannie mae and freddie mac 5 to 10 years from now. it will take that long to make the transition because you do not want to disrupt the mortgage market and housing market, particularly since it is so fragile. it will take a long time for the transition, but at the end of the day the mortgage finance system will be very different than it is today. i just want to say one other thing. i think a ultimately the mortgage market will require some government support. i think we're going to be able to see relatively low mortgage rates, and more importantly if everyone was to continue on with the 30-year fixed rate mortgage

pay $2.8 billion to settle claims it sold bad home loans to mortgage finance giant fannie mae and freddie mac. the settlement is tied to mortgages made by countrywide, which bank of america bought during the financial crisis. >>> more trouble for toyota. seven insurance companies have sued the automaker in an attempt to recover money paid to cover crashes they blame on sudden acceleration. the companies blamed 725 crashes on the alleged defect, and fault toyota for failing to equip its vehicles with an override system. toyota says the lawsuits are without merit. >>> toshiba is raising the stakes in the tablet wars. it's offering a larger screen than apple's ipad and will include an upcoming version of google's android operating software. the toshiba tablet will be on store shelves by the end of june. no word yet on the price tag. >>> well, if you want to impress a potential employer, put on a pair of specs. a british study finds job hunters are more likely to get hired if they wear glasses to their interview. a third of adults surveyed think people wearing glasses look more professional, and

that does not include the $200 billion we spent on fannie mae and freddie mac. my youngest daughter is 16 years old. by the time she reaches maturity, we will have seen social security running in the red for years. last year was the first time a security -- social security began spending more money than it was taking in. we have and i know you account for the social security trust fund -- an iou for the social security trust fund. it is filled with iou's. why? because congress took all of that out and spend it. what are those iou's made out of demo our labor. shortly, we will have the specter of having to increase the amount that government is taking out of social security if we want to continue putting out checks at the same level. consider at the same time, medicare is scheduled, according to the government, to go flat broke by 2017. that is six years from now. six years from now, medicare is scheduled to be flat broke. social security is already running in the red. we are running deficits in excess of $1 trillion every year. we are at 60% of debt to gdp ratio

economic downturn but there was a pattern all right what we're saying is that while fannie mae and freddie mac. and the economic data of the past two years is not the result of the state pension the state budget crisis you could have seen these going back five years looking at these accounting sheets you could have seen these coming it's now just coming to a head because lawmakers have been kicking the can down the road and so. anyway you know it is it sure you may have seen this coming but who was supposed to see it coming was it supposed to be the workers who trusted their pensions to someone else that was investing them or the people they were doing at the first place alan greenspan i mean look at alan greenspan he was completely asleep at the switch we saw an eight trillion dollar housing bubble this wasn't the fault of some sort of worker in pennsylvania who was making thirty thousand dollars a year this was a fall of the government regulators who are in bed with wall street and did not regulate the economy we should be forcing the people who profit the most from this economic collapse wa

the kings of leverage or fannie mae and freddie mac. they were the two behemoths government-sponsored leveraged banks. their leverage grew 75 to one. it was often hidden in derivatives positions in off- balance sheet entities and through what is called window dressing, financial reports made available to the public. our report in detail instances in which lehman brothers and bear stearns worthy true leverage was masked. the heavy debt taken on by some of these financial restitutions was exacerbated by the nature of the assets they were acquiring with that debt. as the mortgage and real-estate markets turned out riskier and riskier loans and securities, many financial firms loaded up on them. but these firms were not alone. households took on more debt as well. from 2001 to 2007, national mortgage debt almost doubled. the amount of mortgage debt from 2001 through 2007, national mortgage debt almost doubled. the amount of mortgage debt per household rose 63%. even while wages were essentially stagnant. within the financial system the dang

panel is planning to investigate how regulation impacts job creation and the role of fannie mae and freddie mac. caller: i will be watching miss buck -- ms. bachmann. i wanted tea party to know that they should take their checkbooks. it is a couple of hundred dollars if you leave your car in the wrong place. i wish the 112th congress luck. host: what are your expectations? caller: i ame. i want to see how they maneuver to save money. we will be interested. we will be watching. host: what about the new rules that republicans will propose in the house? cut-as-you-go. caller: i do not know of it is very much money or how they are going to do it, but it will be interesting to see how that lines up with the constitution. i understand a plan to read the constitution every day. host: they plan to read the full constitution january 6. will you be watching? what do you think about that idea? caller: i think it is a good idea. drop the history of our country, we have not followed -- throughout the history of our country, we have not followed that thing well. host: we will have our coverage of that readin

freddie mac are says the 38 the rate dropped to 4.7%. 10:10 a.m., a break real quick here.town you can see the trip of the trans american but a lot of fog still out there. welcome back to kron 4 morning news time right now is 10:14 a.m.. salk and by the fog. we had at cool foggy morning. the startup below freezing. san rosa still freezing have 32, hitting a high of 58, calling it back down to 36 by 8:00 p.m., still cool the napa, upper 30's through fairfield, concord, livermore, los '40's through los gatos right now. visibility is low in the north bay. the orange indicating less than a mile. san rosa, at novato, napa, less than a quarter mile of visibility. conditions are improving through concord and fairfield. all the cloud cover moving above and over bringing right to this of northwest. the bay area is clear, that means we will see plenty of sunshine this afternoon. 58 san rosa, 54 san rafael, novato, mid-50s really help, upper 50s hugging the bay. upper 50s through the south bay today. you're 7 day around the bay shows us we continue to see the morning fog, with afterno

bank of america settled claims with fannie mae and freddie mac over bad mortgages and they liked thes. they responded to gains that europe is higher today. we are still going to get more information on the economy on the fed meeting to give us a clue as to what they are thinking right now. the dow rose monday and we are starting at 11,670. the nasdaq was up. they are reporting sales later today. if the economy didn't stop from making the industry's biggest sales month of the year in the case of rising gasoline prices. forecast in the top 12.3 vehicles from 2o 10. nissan expected to be the biggest winner december with sales jumping 26%. gm and chrysler seen posting double-digit gains. toyota expected to report a full year sales drop mostly due to the global recalls. a $500 million investment has them thinking you can buy stock soon. the home of facebook is responding. bob redell is here with early risers. what's going on? >> very early. good morning to you. happy new year. we are a few blocks down from facebook headquarters in palo alto. yesterday goldman sacks and rushman investors a

fannie mae and freddie mac adopted some of the standards for their mortgages. the indirect effect has been great. some people talk about the number of foreclosures. if you look of the total number of modifications entered into since april of 2009 either under hamp or other programs, it does outpace foreclosure sales, completions by two-one. it is not enough. i think we are making this crisis better. >> my time is up. >> the chair recognizes the man from oklahoma for five minutes. >> i just want to get some clarifications. i am aware of some limitations that dodd-frank is placed on tarp and the boundaries of the new programs. is treasury willing to assure us today that there is no intention that any tarp funds will be used for state pension bailouts or state government bailouts? >> yes, sir pmi terrifi. >> terrific, you detail some of the numbers. the $410 billion, we have received back $320 billion. approximately one under $66 billion remains outstanding. we are missing about $9 billion? can you re-submit another report on that? >> i would be happy to do that.

secretary paulson when trying to deal with fannie mae and freddie mac asked for what's popularly mocked as the bazooka to say give me a blank check to deal with them and if i have the ability to use it, then financial markets won't expect me to have to use it but that turned out to not be the case and so i don't think there's anymore blank checks in that sense. >> how significant is the decision to raise the debt ceiling? i mean, just because the congress decides it's okay for the government to be completely overleveraged doesn't really make it okay for the government to be completely overledveraged and that u.s. investors will have confidence in the economy. so, how -- just because congress says, okay, you can raise the debt ceiling, that averts the crisis? how does that work? >> i guess you're looking at short term and long term crisis here. if you don't raise the debt kreeling that's a short term immediate crisis an all of the affects you would see from a long-term crisis happen right now because if the government can't borrow then -- legally can't borrow then you ur just stuck and t

the bank agreeing to a $2.8 billion settlement of mortgage repurchase claims by fannie mae and freddie mac. most of those mortgages were written by country wide originally which b of a then bought in 2008. it gives investors hope that other banks will soon settle up. >>> time now 5:22. california's supreme court refuses to hear an appeal on bay area air quality logs. making compressed logs and wax asked to be exempted from the bay area's no burn rules during spare the air alerts. says it should be allowed because they give off less smoke and particles than wood. despite the efforts, that ban will remain in place. >>> procrastinators, rejoice. this year there's no penalty if you miss the april 15th tax deadline by just a couple days. >>> also people spending the night in their cars. the problems they cause and what's being done to stop it. >>> good morning. southbound 680 traffic moving along pretty well heading out to the south bay. we'll tell you more about the morning commute straight ahead. >>> good morning. cold out there. fog and cold will give way sooner for others. hazy sunshine and

was asked by president clinton is because he wanted somebody's approach on that as it related to freddie mac>> mr. chico, -- >> i did not hear an answer to your question. >> you were one of the main partners at a law firm. had you explain what happened to the farm and the role you played in its collapse? if he could not manage that, how can you manage the city of chicago? >> i am not happy about what happened, but there is a vote of about 57 partners to close our business. we welled up our affairs and moved on. i did too. i started my business after that with two people. in the middle of that same recession, i have grown it to about 40 people. i am very proud of it. >> if i may, i have in my career never profited from public service. i have no government contracts with my little company. i took no government loans or anything like that. let's be honest, most of your clients are people who do business with the city of chicago. you have gone from one revolving door to another. quite frankly, rahm, you have gone from one government appointment to another. there is a difference in public service

oversight economy he that plans to investigate the bailout of mortgage companies, fannie mae and freddie macthe committee is also expected to take aim at stimulus spending during the historic recession. >>> right now, the current blend of gasoline is at 10%. groups say the epa does not have the authority under the clean air act to approve a plan for fuel used in some engines but not others. >>> air trouble tell you about, a man arrested after making a scene on a flight to our nation's capital this morning. other passengers aboard the u.s. airways flight out of boston says the man refused to hang up his cell phone and sit down. they also say they heard odd noises from his carry-on luggage but investigators found no threat. he was formally charged with disorderly conduct and interfering with the operation of an aircraft. he will be back in court march 15th. >>> there is an unusual invitation from one of this country's biggest terror concerns in a letter obtained by the associated press today. iran invited russia, china, the european union with and allies in the arabs and developing world to to

stimulus spending that still may be out there, and while don't they get the federal government out of freddie mac and fannie mae and save billions in the process. >> chris: you'll say you will target the cuts. some will be cut more than the 20% and others won't be cut. >> i suspect that's what the committee will do. >> chris: are you saying that head start and f.b.i. and programs to enforce immigration would be off the board, off the table? >> the committee will make these decisions in the next ten days or so, i expect that we'll see the product of the appropriations committee. it will come to the floor of the house the week of february 14, as outlined by the majority leader. and the house will be able to consider this continuing resolution, to fund the government under an open process. some may want to cut more. some may want to cut less. i'm going to allow the house to work its will, because i think listening to the american people, the house will, in fact, respond with significant cuts in spending. >> let's look at the calendar, which you have just talked about, because the continuing resoluti

the kings of leverage or fannie mae and freddie mac. they were the two behemoths government-sponsored leveraged banks. their leverage grew 75 to one. it was often hidden in derivatives positions in off- balance sheet entities and through what is called window dressing, financial reports made available to the public. our report in detail instances in which lehman brothers and bear stearns worthy true leverage was masked. the heavy debt taken on by some of these financial restitutions was exacerbated by the nature of the assets they were acquiring with that debt. as the mortgage and real-estate markets turned out riskier and riskier loans and securities, many financial firms loaded up on them. but these firms were not alone. households took on more debt as well. from 2001 to 2007, national mortgage debt almost doubled. the amount of mortgage debt per household rose 63% to $149,500 even while wages were essentially stagnant. within the financial system, the dangers of all of this that grew more ominous because transparency was not required

. >> rose: what are you going to tail us you're going to do about freddie mac and fannie mae. >> in a very short period of time, in a few weeks-- i'm glad you raised that. again, even though i think the core of the u.s. familiar system is much stronger, and i think the basic framework reforms we legislated last year with the barney frank and chris dodd leading the charge, you know, is a very strong framework of reforms if, addressing the core challenges in our system. but we still have a mess in the housing finance business. it's now almost completely dependent on the dpft. and we're going to lay out reforms to kraut crowd private sector back in. and layoff us with a system that will not be vulnerable to the really tragic colossal failures not just in freddie and fanny but more generally, in oversight -- >> more consumer protection. >> absolutely. >> rose: do you worry that one of the 50 state or more may go into bankruptcy? >> i don't personally know, and that's not to understand state the gift. if you're a governor or mayor in the city or states now, it's still going to be very hard

or c america purchased the largest secondary home mortgage companies in america, fannie mae and freddie mac. your government owns them. the government out completely runs the student loan industry, and they took over socialized medicine. obama recently signed an executive order so he would now start implementing cap and trade, a national energy tax. this is stunning what has occurred in just two years' time. remember, we are americans. remember who we descend from. remember the greatness that belongs to all of you, because you are that self correcting power. we saw something very remarkable happened in this last election, and now is up to you to make sure we see something remarkable happened in the 2012 election. equality was what -- the most important thing they wanted, and our generation i think faces that darkest of all questions, because the failure to honor a bleak convey the rightful inheritance to america will be no less a threat and require no less a response from all of us. the answer is not with our political figures, i want you to know that. that is what lincoln told us. it is wi