. >> woodruff: and paul solman talks to harvard economist ben friedman about the college graduates who still flock to wall street, three years into the financial crisis. >> it's all the more troubling when i think that, after they leave us, so many of them go into activities that are not economically productive for the country, for society, even just narrowly, for the economy. >> woodruff: that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> brown: the jobs numbers for may fell well short of expectations today, and that raised questions about the direction of the economy. but the direction on wall street was clear-- a sharp spiral down, fueled by renewed doubts about the recovery. on the surface, at least, the american work force made gains in the may jobs report. the labor department reported the economy added a net o

friedman? >> i think it should be continued now, especially in light that the program -- now or verifying items up front. i think that will actually help see much more positive results out of the program. >> mr. heid? >> i would add for the 80% of the mods happening outside the program there is no government payment of any kind. the program itself -- i would continue it. i would finish the enhancements already made. i would not expand it. >> it should continue. >> i would ask treasury to provide clear information, which the promised many months ago, about re-default rates. they have published virtually no information about re-defaults. the mortgage metrics report -- you need to know how this program is doing compared to the way rob occ has been tracking modifications. >> i now yield 5 minutes to the gentleman from california, the ranking member. >> thank you, mr. chairman. i think we have both heard enough to know we need to have treasury back here well before the october end to talk about less

friedman? >> i think it should be continued now, especially now that you are identifying and verifying items up front. i think that will help us see much more positive results of the program. >> for about 80% of the modifications outside of the government program there is no program of any kind. i would continue the enhancement of ready-mad i would not expand it. -- the enhancements already made. i wou not expand it. >> i would ask the treasury to provide very clear information that they promised many months ago. they published virtually no information about the faults. -- the faultdefaults. you need to compare it to the way that oec has been tracking for months. >> ank you. i yield back. >> i now yield to the ranking member congressman eisa. >> i think we both have heard enough to know that we need to have treasury back here well before october to talk about lessons learned and if there is to be any modification or extension, to get to a sooner rather than later. but wouldn't you agree? >> it

milton friedman gave that particular idea and there is a gold standard and other things.i don't know if i can test your patience but for various reasons, my own research was on the great depression. one of the contributions that i and others made was that the malfunctioning of the gold standard which tied together the monetary policy of every country was one of the major causes of the depression when it became international. there are many dangers and risks to the gold standard not to mention practicalities that would be difficult to put in place. there are good reasons why we left the gold standard in the 1930's and got rid of it entirely later on. my question would be that the fed is not a perfect system but compared to what? there does not seem -- the evidence of 180 countries in the world, there are a couple that share a central bank but i don't know of any bad doesn't have a central bank unless they used other currencies. somebody has to determine how much currency is to be issued. somebody has to deal with the issues of national stability in modern economies. of the

friedman. the new york time's columnist. >> throughout the washington metropolitan area tonight, people are tuning in to the pbs newshour for an intelligent recap of the day's events, but many of these viewers are not yet supporting members of weta. if you're among the viewers who enjoy the news and public affairs programs on weta, and you're still not among those who support weta, now is the time to call the number on your screen. your support will help us bring you the best news and public affairs programs on television. that's what we do here. david? >> your contribution to weta s much more than financial support. it is a gift of the world to all people in the community. it helps us continue to bring all the insights, discoveries, controversies, cultures, excitement, and entertainment the world has to offer to our community. without your contribution, this world is inaccessible, along with all the enrichment it brings. make your gift now, and help us ensure that everyone in this community ha

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your sister lives here, angelina friedman is a coastal sciences for the environmental defense fund.thank you for being with us. you have had the opportunity to go out into our estuaries and wetlands along the shoreline as a. coastal for those that are watching us on cable and satellite networks on c-span and those listening, and around the country and around the world, describe for the country and for the world what you have seen and how this oil has inundated our louisiana wetlands. >> last weekend, i went out to the grand isle area. the oil had reached the shore already. it was in thick pools in the sand and seeping into the substrate. there were animals that were affected. it was on the rocks and in the water and also i went out a few times this week down to the delta. i saw the wetlands there. the oil had come in. the oil was pulled around the wetlands and i had seen some oil off the coast and off the short. >> as a coastal scientist, when you see the inundation of oil along the wetlands, what is your first thought? >>çó oil in the wetlands is nevr good. it can cause chemical an

friedman celebrates that coming from a different perspective. federal reserve, the most powerful economic institution in the world perhaps, is infamous to the whole spectrum for narrowing the public participation, doesn't want to share secrets. and we're setting up a dead panel that also is from president obama which is also going to take the handout of congress. don't you think tt this economic and philosophical direction to narrow the range of policy choices contribute just a little polarization and frustration to the part of voters? and just bring it home a very concrete way. think about the charges and range of options being hurled at greece and the debtors states in your. it's virtually the washingon census back 10 years later. >> did you really see death panel? [laughter] >> death. [laughter] >> okay, sorry. i thought you -- we were into the medicare commission. listen, i mean, i have been struck, not by the sort of narrowness perspectives on the financial reform. i have been struck by the range. there are a group of intellectual critics w

friedman, what do you think? >> i was not around the secretary when he made the comment, but i do believe it is a fact that not all homeowners can afford their mortgage payments. and as a result, like many of us, if you spent too much money on something you have to cut something else out. that could very well be what he meant. i think as a general policy of homeownership is a great thing, if people do not get greedy and can pay the mortgage and can afford all those things that go along with home ownership. >> my time is expiring. in listening to all of your testimony is about how you have been approaching homeowners i can tell you that the anecdotal stories that we hear from realtors, from nonprofits try to assist homeowners, is that loan servicers are not responsive, that it is an incredibly difficult process even when you have a social worker that is sitting and guiding someone to the process. that in fact you are making decisions that do not model the market. when their a short sales that are offered you allow

if you think you are a socialist, read milton friedman, a famous capitalist. if you're a capitalist, we karl marx. if you think you are a republican, listen to the democrats, and vice versa. do not object all out of hand and be willing to change your mind. do not fall into the trap of being rigid and simplistic. it is ok for us at times to blame and be dissatisfied with others and to hold them responsible, but it is not ok to oversimplify it paint everyone it should not be acceptable to denigrate entire groups. not all companies, not all c.e.o.'s, not all media,,not all students. among these groups, there are some terrific people, and among those groups, there are some terrible people. to categorically judge them as equal is just ignorance, and it is not fair. it is not just korea is just plain wrong. -- it is not just unfair. it is plain wrong. [applause] one must be accountable to oneself. shakespeare said it. "to thine own self be true proprietor -- be true. if i want to know all about you, all i need to do is talk to your teachers, your friends, your colle

friedman? >> i think it should be continued now, especially now that you are identifying and verifying items up front. i think that will help us see much more positive results of the program. >> for about 80% of the modifications outside of the government program there is no program of any kind. i would continue the enhancement of ready-made. i would not expand it. -- the enhancements already made. i would not expand it. >> i would ask the treasury to provide very clear information that they promised many months ago. they published virtually no information about the faults. -- the faultdefaults. you need to compare it to the way that oec has been tracking for months. >> thank you. i yield back. >> i now yield to the ranking member congressman eisa. >> i think we both have heard enough to know that we need to have treasury back here well before october to talk about lessons learned and if there is to be any modification or extension, to get to a sooner rather than later. but wouldn't you agree?

lisa friedman, a deputy director and editor of wired, andrea stone senior washington correspondent for aol news. paul weiss and fall, courtenay iraqi usaid haiti task team and guest of the speaker. andy alexander for the "washington post" mrs. sah, the wife of dr. rajiv shah for improvement for the best part of education. andrew snyder, associate editor to plunder and chairman of the speaker's committee. donna leinwand, speaker committee member who organized this event. >> sean carroll chief of staff for usaid and guest of the speaker. kathy bunk of communications consortium, and skip, and in a writer for the international bar association among others. he's a member of the press club foreign corresponddnts and photography committee. thank you. [applause] two weeks after today's speaker was sworn in to lead the u.s. agency for international development a devastating earthquake struck eda. president obama instructed dr. rajiv shah to take charge of the u.s. response to this disaster just a few hundred miles away from the u.s. mainland. since then the u.s. government has committed more th

money, it depoff -- guest: what i think the democrats have left out of thet equation is what milton friedman, one of my favorite economists of all time used to tell us. there's no such thing as a free lunch. if the government spends a dollar, peter, the dollar has to come from somewhere. so when the government spends $800 million that may create jobs on those projects, by the private sector shrinks by $800 million. that's the reason with -- comes from highland's new jersey. foe just listen to this. the station is, like, giving me an ulcer. i mean, the country, i mean, this is my country. i love it. but i see it's going deeper and ddeper and deeper. i mean, everybody i talk to. my neighbors. there's people losing their homes all over the place. there's forclosure signs. people being hauled out into the street homeless people who have owned their homes 30 or 40 years, and that generation is all homeless. in the last four or five years, i've seen so many homeless people. it's rid clubhouse. i, myself, owned my house seven years. i'm young. 35 years old. cancer. my husband lost his job. all thro

angelina friedman is a coastal scientist for the environmeal defense fund.come. >> thank you. >> there have had the opportunity to go out and to our estuaries and wetlands and along the shoreline as a coastal scientist. for those watching along the cable and satellite networks on c-span and those that are listening around the world, describe for the country and the world at you have seen how this oil has inundated our wetlands. >> i went out to the grand isle area and the oil had reached the shore already. it was in pools the sand and going into the substrate. and unfortunately, there were animals that were affected. it was on the rocks and in the water. i also went out a few times this week down the delta a saw the wetlands. the oil had come in and coated bottom of the wetlands and was pulled around th. i have seen some oil off the coast to. >> as a scientist, when you see the oil on e wetlands, what is your first thought? >> it is never good. it can cause chemical and physical damage to the wetlands. some of themave a certain amount of resilience to them b

angelina friedman is a coastal scientist for the environmental defense fund. welcome. >> thank you. >> there have had the opportunity to go out and to our estuaries and wetlands and along the shoreline as a coastal scientist. for those watching along the cable and satellite networks on c-span and those that are listening around the world, describe for the country and the world what you have seen how this oil has inundated our wetlands. >> i went out to the grand isle area and the oil had reached the shore already. it was in pools on the sand and going into the substrate. and unfortunately, there were animals that were affected. it was on the rocks and in the water. i also went out a few times this week down the delta and saw the wetlands. the oil had come in and coated bottom of the wetlands and was pulled around them. i have seen some oil off the coast to. >> as a scientist, when you see the oil on the wetlands, what is your first thought? >> it is never good. it can cause chemical and physical damage to the wetlands. some of them have a certain amount of res

milt friedman gave that an idea and there was the gold statement, and i don't know if i can test youratience, but for various regions, this is a short question. my own research -- my own research on the great depression was that the malfunctioning of the gold standard, which tie together the monetary policies of every country on the gold standard, was one of the major causes of the depression when it became international. there are a lot of dangers with the gold standard, not to mention practicalities that need to be put in place. there's good reason why we left the gold standard in the 1930's. i guess my question would be, it is not a perfect system, but compared to what? and there does not seem to be at this point, the evidence of 180 countries in the world, i don't know of any that does not have a central bank unless they have an open currency. someone has to run the monetary policy. somebody has to deal with the issues of stability in modern economies. i believe that will be the case in the united states and i think it will should be a highly qualified central bank that does it. >

it is milton friedman and the supply side economists and the republican party versus the keynesian demand side democrats on our side and our republican friends in the earliest parts of this decade, up until 2006 and then 2008, controlled every %% lever of government, controlled the house, controlled the senate, controlled the white house, implemented their economic policies across the board and in ohio the republicans controlled every statewide office, including the governorship for 16 years and the state legislature for longer, controlled everything and implemented their policies. their energy policy, their foreign policy, theii economic policy, they deregulated wall street,,they continued this path, this role of appointing industry lackees to critical oversight positions on wall street, critical oversight positionssin the oil and gas industry, even big donors to oversee fema. and over the course of the last few years we have seen how this philosophy when implemented works. and it works for those multinational corporations, it works for wall street, it works for the oil industry, but qui

intbankruptcy -- sorry, as we go into this financial reform, i would hope that we remember milton friedman once said, capitalism is a profit and loss system. the profits encourage risk taking anthe losses encourage prudence. mr. speaker, we must have freedom to fail in this country. we cannot have too big to fail and more importantly, we cannot have the politicalization of the process by picking and choosing people like freddie and fannie to get $6 trillion worth of full faith funding from the american people in order to guarantee what ultimately was to a great extent their fault. we went into a financial collapse because when homes became unaffordable, gimmicks were produced. the american people watched their government create most of those gimmicks and even today the american government continues to fund a 3.5% down form of financing as tugh homes will only go up in price. so i look forward to working on a bipartisan basis to get this bill right in conference. i yield back the balance of my ime. the speaker pro tempore: the gentleman yields bk the balance of his time. the gentleman from

if you think you are a socialist, read milton friedman, a famous capitalist.u're a capitalist, we karl marx. if you think you are a republican, listen to the democrats, and vice versa. do not object all out of hand and be willing to change your mind. do not fall into the trap of being rigid and simplistic. it is ok for us at times to blame and be dissatisfied with others and to hold them responsible, but it is not ok to oversimplify it paint everyone it should not be acceptable to denigrate entire groups. not all companies, not all c.e.o.'s, not all media,,not all studen. among these groups, there are some terrific people, and among those groups, there are some terrible people. to categorically judge them as equal is just ignorance, and it is not fair. it is not just korea is just plain wrong. -- it is not just unfair. it is plain wrong. [applause] one must be accountable to oneself. shakespeare said it. "to thine own self be true proprietor -- be true. if i want to know all about you, all i need to do is talk to your teachers, your friends, your colleagues, y

friedman, what do you think?> i believe it is a fact that not all homeowners can afford their mortgage payment. like many of us, when you spend too much money on something, you have to cut something else out. that could very well be what he meant. i think home ownership is a great thing. if they can pay the mortgage and afford the things that they want. >> in listening to all of the testimonies about how you have been approaching homeowners, there have been stories that we hear from realtors, as people tried to assist homeowners is that the loan servicers are not responsive, even when you have a social worker guiding processes. you are making decisions that do not respond to the market. one thing would be really helpful to have known services on one side of the room and have realtors on the other side of the room. we are hearing a different story from what you are telling. >> your time has expired. mr. kucinich. >> to the gentlelady at the table. each of you represents lenders. i remind each of you that without t

tom friedman said, a crisis is a terrible thing to waste. we cannot let the crisis that has happened in the gulf pass us by. we have faced disas tergs in this country before -- disasters in this country before and we have moved to act. after the "silent spring" in 1962 and the santa barbara oil spill happened in 1969, the environmental movement took stronghold in the united states, congress followed up by adopting the clean air act, the clean water act, the national environmental policy act, in short order. . we will debate the acts we have to take following the crisis in the gulf, but today we are joined in unanimous thought that the ocean is impornt and it warrants its recognition. we mightay that it's a very salty week here in washington. june is the national oceans month. this week is the capitol hill oceans week where members of the ocean interest and science community come to washington to petition their government. and yesterday was world ocean day. and for over a month now the nation has been experiencing the worst marine disaster in

been performing in-hair rently governmental functions in iraq and afghanistan since even milton friedman's minimalist definition of the basic functions of government renders that verdict. second, congress should ban the use of armed contractors for moving security in combat zones and instead use direct hire employees. if the u.s. government is going to engage actively in countries where the lives of its personnel are at high risk, we will need to build up our in-house capacity to staff those missions appropriately. as i have argued elsewhere, it makes good sense for the government to harness the energy, efficiency and creativity of the private secretary nor as many ways as possible up to the point -- in iraq and afghanistan. as many witnesses before me have testified, iraq and afghanistan are our first two contractors h involvement in vietnam, contractors represented 14% of the american presence on the ground, today they are the majority presence on the ground in iraq and afghanistan. why is this rise in percentage of contractor involvement in war important? it's important because our curr