what did you make of secretary geithner? >> he said he's comfortable. i just have to worry. we have 3,000 of the 8,000 banks in the united states. by the definition of their own regulators, they are dangerously exposed on commercial mortgages. we see a problem that's coming that's getting bigger in the years ahead. and six of the 19 stress tested banks, just to give you an idea about concentration, six of the 19 stress tested banks have commercial real estate mortgage portfolios that are larger than their tier 1 capital. this is an area, just to give you an idea, by the end of this year commercial real estate mortgages will have shrunk in value, the property underlying those mortgages, by about 50%. this is a big problem. it's a problem in our future not in our past . >> woodruff: i listened to your exchange with the secretary. he didn't seem to be nearly as concerned as you are. is this a definitional difference here as much as anything else? how do you explain that? >> you know, i do have to say, i really wish that the secretary had said your numbers are wrong. or some par

secretary geithner. >> thank you. thank you members of the panel. as you know, in the fall of 2008, as we confronted the worst financial crisis this country has seen in more than 70 years, congress and the previous%% administration mobilized extraordinary financial response. their accion started the process of stabilizing a system that was on the verge of collapse. when president obama came into office, he took the necessary steps to start to finish the job, to start to save the economy from what could have been a second great depression. lasttdecember, outlined an exit strategy. i want to update you briefly on the progress and the ultimate cost. first, because of the actions we took, alongside actions of the federal reserve and the recovery act, the economy is growing again, exports are rising, manufacturing output is rebounding, businesses are investing, and so far, this year, the economy has treated half of 1 million jobs in the private sector. economy is in a much stronger position to the cost of credit for homeowners,,consumers, and businesses

secretary geithner. >> thank you. thank you members of the panel. as you know, in the fall of 2008, as we confronted the worst financial crisis this country has seen in more than 70 years, congress and the previous administration mobilized extraordinary financial response. their action started the process of stabilizing a system that was on the verge of collapse. when president obama came into office, he took the necessary steps to start to finish the job, to start to save the economy from what could have been a second great depression. last december, outlined an exit strategy. i want to uudate you briefly on the progress and the ultimate cost. first, because of the actions we took, alongside actions of the fedeeal reserve and the recovery act, the economy is growing again, exports are rising, manufacturing output is rebounding, businesses are investing, and so far, this year, the economy has treated half of 1 million jobs in the private sector. economy is in a much stronger position to the cost of credit for homeowners,,consumers, and businesses ha

secretary geithner. >> thank you. thank you members of the panel. as you know, in the fall of 2008, as we confronted the worst financial crisis this country has seen in more than 70 years, congress and the previous administration mobilized extraordinary financial response. their action started the process of stabilizing a system that was on the verge of collapse. when president obama came into office, he took the necessary steps to start to finish the job, to start to save the economy from what could have been a second great depression. last december, outlined an exit strategy. i want to update you briefly on the progress and the ultimate cost. first, because of the actions we took, alongside actions of the federal reserve and the recovery act, the economy is growing again, exports are rising, manufacturing output is rebounding, businesses are investing, and so far, this year, the economy has treated half of 1 million jobs in the private sector. economy is in a much stronger position to the cost of credit for homeowners,,consumers, and businesses ha

geithner is continuing the bailout.find it distasteful that one of the immediate things that we say needs to be cut are entitlements, when clearly i think wall street could use more austerity. frankly, i think if we're going to have a budget surplus there has to be a real economic recovery, which means systemic regulations in the system. i think we need to return to things like glass stiegel -- like glass-steagal, which is one of the things fdr was able to get through. >> we are pursuing pretty vigorously regulatory reform. and i expect that to be on the floor prior to us leaving for the july 4 break. so i am very hopeful that we will have very significant regulatory reform sent to the president. my view is that the major failures of the bush administration were fiscal responsibility and regulatory neglect. we saw it in the financial community. we were seeing it with the oil spill. that is in part due to extraordinarily -- extraordinary negligence on the part of bp as well as the negligence of react -- of regulators to

later, secretary of the treasury tim geithner will be on capitol hill this morning to testify about the troubled asset relief program known as tarp. live coverage at 10:00 eastern. >> based on what you've read and heard and what your questions and answers are, you don't deserve to be in the senate judiciary committee. >> as senators prepare for elena kagan's confirmation hearing, look back of the supreme court decisions. you can check error cspan video library. >> now the former obama campaign secretary steve hildebrandt about mobilizing young voters in 2010 and includes a former strategist for republican senator scott brown. the center for american progress hosts this event. this is almost one hour. >> the moderator for the panel is erica williams. she is the deputy director of progress 2050 and serves as the senior adviser to campus progress. i will turn it over to erica. >> welcome everyone. we are a very, very large generation. these are people born after 1982. we are predicted to make up nearly 20% of the american electorate. that is pretty big. the project that i worked on now foc

i will leave that up to treasury secretary geithner he makes these decisions. >> how long would you expect people like charles schumer and american manufacturers who have lost jobs so quickly, how would you expect them to wait? >> my expectation is that they're going to be serious about the policy that they themselves have announced. now, what i am going to do is work with people like senator schumer and manufacturers who are affected by these trade imbalances, and i think we all have the same interests, and that is the united states can compete with anybody, as long as we have got an even playing field, and as i indicated in my opening remarks, we are prepared to enter into trade agreements with korea, and one of the things we discussed here is is there a way to reinvigorate the doha round, which has been stuck for a very long time? so i agree with the statement in the communique that trade can be a source of prosperity for everybody, but it has got to be a fair deal. and it is not just currency, by the way. their chinese partners about%- what they're doing with barriers, what are they do

geithner hired them to represent the new york fed during the aig bailout. most significantly, the bill does not require any government rescue of a troubled firm be done at the lowest possible cost, as required by the fdic when it takes over a federal bank. treasury officials said that is because they would use the rest of powers only in rare and extreme cases. the managing director of the washington research firm federal financial analytics said it essentially gives treasuryyand blackjack. wheat -- a blank check. we have been asking secretary gunnar for a long time how much thii resolution authority would cost, and he refuses to answer, so we do not know. we do not know whether we are talking $seven trillion -- house republicans have written him two letters asking him for a price tag, and he says it is impossible to know. brad sherman asked him in a hearing in this very room. "how much will the bailout ability cost -- >> time has expired. gentleman from pennsylvania. >> i yield my five minutes to the chair. >> the answer to the question is of course no one

those hearings with the congressial budget ficeirectoorheffice management and budget directr secrety geithner or we heardromr. bernanke, we heard the same thing. growth in this count and speing anit'sot to be stoppe they don't offer tolutions but it's a very simple solutio you don't spend what you don't have. was nbe19 ofnids on my mate granotr's side. the good german rm woman that she was. she had a sple sayingthose who go borwing goes a sorrowing. she de sure all9 of us underd that. you don't end what you don't have. and we cannot spe o way out of this mess. we're going to be doing that alle're doing right nownd we have beedoing is mortgaging the fu of the next genetionf americans. and you know, the questionn you talko parentout there and say, are your kids gng to be bettef thou are, and mo pares don't believe it. hey ink their kidsre going to have a harder me of it than they have andhat's a d sign for america future. mrs. luis: will theentleman yield? mrlatta: i yield to the lady. mrs. lummisyou know, the art that i havto my left, the viewers' right, isxy illustrating what the ntman s just

the new york fed in particular and tim geithner who was the president at the time and is now the treasurysecretary had a big role in this. there were very much involved before the crisis in trying to get better organization and better control of the trading of these cds',. at the time it was very chaotic. there's effort to get the trading better documented and more transparent the fed is continuing to work on that process. the issue on exchanges, exchanges are good. they allow for price discovery and setting up margins and providing capital so that you don't have to worry about your counterparties when you make a trade or derivative. but exchanges are not always practical for a very idiosyncratic and small special types of derivatives because it changes something where you trade large pools of homogeneous product. it have to have the ability to trade specific individualized securities off the exchange. that does not mean they are not regulated. in the new bill, but therthere e substantial capital and transparency. it would have to be public what your critics and considerable responsibilit

i just look at these negotiations, and secretary geithner said here you all are they think a week or soago, who u.s. him about indigenous-- he said there were various agreements being discussed but the highlight was essentially china was going to move into the world procurement effort as part of the negotiations, and i said, what an exple of slow walking. they promise that 10 years ago, and yet his seretary ts at the witness table and says that is what we are looking forward to. they are joined to-- going to join the world procurement. we need to have a much more aggressive effort, egg knowledge with secretary locke has said about examples of one sort or another but what is indisputable is we are falling further behing tariffs up to 30% onome green goods, i want, as chairman of the trade subcommittee and somebody who is consistently, to use your words mr. ambassador, works to expand the global trading system, because i think trade is a democratizing force. it is good for workers and they think it helps generate market for exporters and those products are good for people around the wo

person financial council, which is a combination of regulators, including ben bernanke, including tim geithner and so forth, creates a situation where things can be dropped. we all know from working in different companies that the more meeting you have, the more people you get together looking at other details, the less potential there is for thoingz get done. i agree with him on that. and it is good that there's a way to resolve potential failure in investment banks, or in insurance companies and the like. the problem is that right now the biggest institutions that still trade a lot and still carry enormous risks and assets that they themselves evaluate because there is no objective means to evaluate them, are a bank of america combined with merrill lynch. goldman sacks is now a bank holding company. so it's under the purview, but it is still a company that takes on a lot of risk and trades quite actively in terms of its own profitability-- 80% of its profits come from trading. morgan stanley is a bank holding company. so what's happened in the last two years, is we have a financial structure

as a result, secretary of the treasury geithner backed away from issuing a report that was required bythe congress in mid-april which would have forced him to label china as manipulator of its foreign currency, which they clearly are. but he backed away. he gave them a pass. he took their snalz they were going to move. but he gave them kind of a deadline, and the end of the deadline period was this g-20 summit coming up a week from now. so we're just about at the end of the open period and the signal now from the white house is china, it's time to move. if you don't do it in the fixture few days, you're going goat some pretty sharp push-back from here. >> suarez: well, the chinese did some sharp push-back on their own and said this is china's currency. it's not a fit discussion for the world community. are they signaling that they're just not going to give in on this? >> they never want to give in to the foreign pressure, and that's why it's peculiar that they've waited to let the thing boilun again. the chinese statement on its face is ridiculous. for the chinese to say the currency i

as i said in the opening, treasury secretary geithner, yesterday, when appearing before the congressional oversight panel, hamp said,, "this program was not designed to prevent foreclosures." it was not designed to sustain home ownership. he was then asked about the home ownership rate level. what would be a market- efficient number? someone offered 65%. he tended to agree that was an objective. geithner said he agreed with the assessment that housing will only stabilized as more homeowners becomrenters again. do you guys agree with that? do you agree with our treasury secretary that the market will only stabilise as more homeowners become renters? that seems contrary to what our whole goal was in trying to stabilize homeowners in their homes. >> congressman, i am not qualified to answer the treasury secretary. in response, i would say that when we focused on hamp as an industry we wanted to create a uniform base line across the couny. there was no baseline modification. there were all kinds of proprietary programs. in the last year, we have done a great deal with respect to hamp get to a

the tight low -- a tight rope that some of a progressives what is as follows -- we criticize tim geithner, the oil companies, wall street, everybody but obama. because we feel a little bit do you see about criticizing obama. -- feel a -- goosey about criticizing obama. we play an inside game and outside game and don't have that right yet. we have to hold this administration accountable big- time not just for peace deal things but deliver -- but to deliver a politics that is sustainable so that itoes not get short circuit in before it has a chance to get started. we havto redouble our efforts to rebuild a movement. if you look at things a the past 50 years where we have made progress, gay-rights, women's rights, civil rights, the rights for disabled people, every one of those was the result of a movement. if you look at the areas where we have gone backwards, economic justice, that's the one where we did not build a strong of movement, notwithstanding the heroism of the labor movement. my only conclusion from that is that as powerful as racism was and as powerful as sexism was and as power

secretary geithner's chief of staff from goldman sachs. question goes to the hiring of the secretary geithner's chief of staff. we have tough rules. we have lived up to those rules and in every instance. i thnk that the hiring in that case, there were a series of recusals ere put in place that have been stctly observed. so i think that we have, we have lived up to our standards in that regard. and, indeed, i thnk in all of our, in all ofourhires, it makes for a lot more work for us when you these tough rules. but we have abidedby those, ided by those rules. and certainly that case is no exception. >> time for one more question. [inaudible] >> what do you think of te adequacy of the obama administration dinitn of high value data sets? one definition basically which is what the obama administration, should we subdivide that so th accountability, fo example for third parties regulated like people who build baby carriages release thr data. but stinguished that clinton highdata data sets were high level officials in the ageny are made more acco

secretary geithner's chief of staff from goldman sachs. question goes to the hiring of the secretary geithner's chief of staff. we have tough rules. we have lived up to those rules and in every instance. i think that the hiing in that case, there were a series of recusals were put in place that have been strictly observed. so i think that we have, we have lived up to our standards in that regard. and, indeed, i think in all of our, in all of our hires, it makes for a lot more work for us when you these tough rules. but we have abided by those, abided by those rules. and certainly that case is no exception. time for one more question. [inaudible] >> what do you thinkof the adequacy of the obama administration definition of high value data sets? one definition basically which is what the obama administration, or should we subdivide that so the accountability, for example, for third parties regulated like people who build baby carriages, release their data. but distinguished that clinton high data data sets were high level officials in the ag

when democrats put geithner and summee in top economic policy positions, that enables and strengthens the right wing postulate to make gains. i would say the situation is more a 180 then what you describe. this policy is strengthening, not weakening, the right-wing backlash. when these become the correct side of this divide, it will be a progressive populism that challenges the economic forces in close, cleared solidarity with working people. host: they listen to glenn beck at all? guest: not really, i prefer to read the transcripts. guest: he says they are preparing to put americans into concentration camps. guest: i think the concern about civil liberties is much clearer in terms of what we have seen since 9/11. and i understand i will not be invited back again. he invited me on his tv show to attack general electric as owners of nbc. he also challenge the owners of his network, and i don't think he was too happy with this segment. all kinds of crazy things will be set by glenn beck and rush limbaugh. -pit can set your watch on that. it does not mean because the enemy of our enemy i

faleery sumners, and timothy geithner, and rahm emanuel do not see themselves as part of the movementwe often see them as part of the problem. i urge you all to read his newest book, "a presidency in peril." here is the questi is for debate, is this obama's problem or is it ours? what can present rigid what can progressives do to make sure that -- what can progressives do to make sure president obama does what is necessary, and how do we make sure that the guys behind obama on the cover of the latest book you not botched the opportunity for a new american renaissance of a better future for all americans? to give you our first perspective on this, let me introduce d'arcy burnearcey ber. she ran for congress and 2008 from washington state, and while she was doing that she organized 58 otherouse and senate candidates to campaign for responsible plan to end the war in iraq. that was unveiled at ts congress. two plays and central -- she plays an essential role in helping the progressive caucus because there are real force for change. please welcome her. [applause] >> when i was approached

tim geithner will be on capitol hill where in the morning to the morningtarp. a recent report from the treasury shows that it has been repaid over $194 billion. live coverage at 10:00 a.m. eastern. >> supreme court justice clarence thomas on the prospect of a new justice. >> is bringing in a family member and it changes the whole family. it is different. it is different than what it was when i first got here. i have to admit, you grow very fond of the court. >> with the confirmation hearings starting june 28, learn more about the nation's highest court in c-span's latest book, "the supreme court." providing unique insight into the court. >> now, some perspectives on u.s. counterterrorism strategy from cia and fbi officials. we get an insight on the terrorist threat against the u.s. and ways to use intelligence to combat. this is about one hour 20 minutes. >> good morning. let me welcome everyone to george washington university on this sunny, hot day. you are in for a 3 today. this is building on a serious we have had on intelligence officers to come to share th

secretary geithner and even elizabeth warren say the banks are paying us back. but all they are paying back is the tarp money and they are not even paying all of that back. even if they pay back all $700 billion, that could not possibly be enough. in fact, there are 12 treasury programs to bolster wall street banks that have cost taxpayers $727 billion, about half of that is what is being paid back by tarp. plus, there are 24 additional programs at the federal reserve that assist private banks, and those costs -- are you sitting down? $1,738,000,000,000. so the total of these federally orchestrated bailouts is $2.4 trillion, not $700 billion, $2.4 trillion and rising. the number is staggering. it's huge. wall street has no intention of paying back $2.4 trillion to the american people and no one is holding them accountable, not this congress, and not the administration. now, what has wall street done for main street? nothing. all they're doing right now is consolidating their power as the bill that comes to us later in the week will do. meanwhile, wall street big

faleery sumners, d timothy geithner, and rahm emanuel do not see themselves as part of the movement,ten see them as part of the problem. i urge you all to read his newest book, "a presidency in peril." here is the question is for debate, is this obama's problem or is it ours? what can present rigid what can progressives do to mak sure that -- what can progressives do to make sure president obama does what is necessary, and how do we make sure that the guys behind obama on the cover of the latest book you not botched the opportunity for a new american renaissance of a better future for all americans? to give you our first perspective on this, let me introduce d'arcy burnearcey bne she ran for congress and 2008 from washington state, and while she was doing that she organized 58 other house and senate candidates to campaign for responsible plan to end the war in iraq. that was unveiled at this congress. twplays and central -- she plays an essential role in helping the progressive caucus because there are real force for change. please welcome her. [applause] >> when i was approached abo

geithner said he agreed with the assessment that housing will only stabilized as more homeowners become renters again. do you guys agree with that? do you agree with our treasury secretary that the market will only stabilise as more homeowners become renters? that seems contrary to what our whole goal was in trying to stabilize homeowners in their homes. >> congressman, i am not qualified to answer the treasury secretary. in response, i would say that when we focused on hamp as an industry we wanted to create a uniform base line across the country. there was no baseline modification. there were all kinds of proprietary programs. in the last year, we have done a great deal with respect to hamp to get to a uniform baseline. however, there will be followed and there will be defaults. i think the focus needs to move beyond modifications to foreclosure prevention. i believe those are the programs we should focus on. >> do you believe more people need to be renters? >> the hamp program and other modification programs are built to ensure that the payment is affordable. what hamp has done is se

>> as the president and secretary geithner said this weekend, we are encouraged. we will be monitoring the progress. implementation will be the key. we are going to keep an eye on that. >> hard the president describe that? >> i did not talk to him specifically about it. but i think his statement says it. >> the second part of the question was, when should we expect the release of the current report? current report? will that be [unintelligible] >> it certainly will not be before. in terms of the prime interrogatory reforms that have been put in place -- in terms of the financial regulatory reforms that have been put in place, that will be the discussion. >> when you say you'll be watching it, is there anything else that the president will be saying this weekend? is there anything that you want them to do now? >> and nottgoing to get ahead of that conversation. i encourage you to get on one of the phone calls that will be happening. >> has anything changed at all in terms of bp being more transparent, more forthcoming with information? anything at all changing? >>

faleery sumners, and timothy geithner, and rahm emanuel do not see themselves as part of the movement, and we often see them as part of the problem. i urge you all to read his newest book, "a presidency in peril." here is the question is for debate, is this obama's problem or is it ours? what can present rigid what can progressives do to make sure that -- what can progressives do to make sure president obama does what is necessary, and how do we make sure that the guys behind obama on the cover of the latest book you not botched the opportunity for a new american renaissance of a better future for all americans? to give you our first perspective on this, let me introduce d'arcy burnearcey ber. she ran for congress and 2008 from washington state, and while she was doing that she organized 58 other house and senate candidates to campaign for responsible plan to end the war in iraq. that was unveiled at this congress. two plays and central -- she plays an essential role in helping the progressive caucus because there are real force for change. please welcome her. [applause] >> when i was

geithner said he agreed with the assessment that housing will only stabilized as more homeowners become renters again. do you guys agree with that? do you agree with our treasury secretary that the market will only stabilise as more homeowners become renters? that seems contrary to what our whole goal was in trying to stabilize homeowners in their homes. >> congressman, i am not qualified to answer the treasury secretary. in response, i would say that when we focused on hamp as an industry we wanted to create a uniform base line across the country. there was no baseline modification. there were all kinds of proprietary programs. in the last year, we have done a great deal with respect to hamp to get to a uniform baseline. however, there will be followed and there will be defaults. i think the focus needs to move beyond modifications to foreclosure prevention. i believe those are the programs we should focus on. >> do you believe more people need to be renters? >> the hamp program and other modification programs are built to ensure that the payment is affordable. what hamp has done is se

the federal reserve was ahead of the crisis because the new york fed, and in particular, timothy geithner the treasury secretary had a big role in this. the fed was involved before the crisis trying to get better organization and control of these cds because at the time it was pretty chaotic. there was an effort to get it better documented, more transparent, etc. and i am assuming the fed is continuing to work on this process. the issue of exchanges, exchanges are good. they allow for price discovery, setting up margins and provided capital so that you do not have to worry about your counterparty when you make a traded derivatives. but exchanges are not always practical for very idiosyncratic, small, specialized types of derivatives. they exchange where you have a large quantities of homogenous product. that still does not mean they are not regulated. because in the new bill, and in the new regulatory rules, there would be substantial capital the banks would have to have behind it. there would have to be transparency and considerable responsibility for regulators to oversee it. one of the

when democrats but people like timothy geithner in top positions they become accessories to wall street, and labeling and strengthening the right-wing populist for electoral gains, i would say that the situation is the one lady from what you describe. these moderate policies from the administration are strengthening and not weakening the white -- right-wing backlash. when we get on the correct side of this divide it is going to be progress of populism the challenges a weak economic force and is in close, clear solidarity with people. host: do you listen to blend back at all? guest: not if i can help it, i will read the transcripts. host: "putting americans -- he is telling radio listeners that progressives are preparing to put americans into concentration camps." guest: unfortunately this kind of rhetoric continues today. i was on his program once. i understand i am not to be invited back again. host: why? guest: he invited me on the television show to attack general electric, buu i also challenge the owners of his show and i do not think he was happy with the segment. crazy things are

today with his national security team, president obama will have hillary clinton, joe biden, tim geithner, rahm emanuel, and the list goes on of those who will be meeting with the president about afghanistan and pakistan. we want to know what you think this morning. should president obama fire general mcchrystal? marsha on the line for drepublicans, what do you think? caller: i do not think general mcchrystal should be fired. this is nothing but a witch huntt pt is awfully funny that he is making these kind of comments about the war when his own fiancee was murdered by al-qaeda insurgenns. none of the quotations else was directly related to general petraeus. -- i am sorry, general mcchrystal. they were all mentioned by unnamed advisers. i would think that in this day and age of reputable journalism, someone would want to mention those names. host: what do you think should happen to general mcchrystal's team? according to the "rolling stone" article -- here is a copy of it. by the way, it is on our web site, c-span.org, if you're interested in reading the whole thing. the inner circle has

i would have to defer to secretary geithner and the president to the extent of our foreign nations. >> if you would refer to him. >> yes. >> we welcome both of you. the conventional research. 15 percent and 20 percent of all products made in china are equivalent to 8% f china's annual gross domestic product. unfortunately this problem seems to be getting worse. i remember back in 1995. the chinese pledge to close down all large intellectual rights violators. that obviously did not happen. i also remember the chinese and the republican and democrat administrations. the chinese have even launched a yearlo campaign against piracy in 2005. i cannot discern any lon-term overall benefit from that particular exercise. most surprising today i am unaware of a published specific and detailed plan for permanently solving the issue of intellectual property violations. such a plan is not included in the joint strategic plan and intellectual proprty enforcement which was relead just yesterday, if i recall correctly. why should we believe this administration would be any more effective? >> center, w

[chatter] >> shortly after this vote, secretary of the treasury tim geithner put out a statement supportingeffort and calling for congress to move ahead with a final vote in the house and senate which could take place next week. here are some of the components of the bill which would establish anxym] independent consumer protection bureau inside the federal reserve. it creates a new 10-member oversight committee to look out for major problems at financial firms and throughout the financial system. it aims to make it traded derivatives more transparent forcing most derivatives to be bought and sold on clearing houses and exchanges. there is a debate between the house and senate negotiators on the derivatives portion of the bill. title six. >> altadis gay couple of minutes. the senate agriculture committee for a longer response but let me take a few minutes to give a general response to a title seven in the counter offer. a lot of work went into this last evening this is not just all happening the last few minutes over 110 proposals for the conference based text and literally all night by sta

i am going to leave it up to secretary to tim geithner to make a determination as to the pace. he is the expert when it comes to examining the currency market. i will say that we did not expect a complete 20% appreciate over not, for example, simply because that would be extremely -- overnight, for example, because it would be extremely disruptive to world currency markets and the chinese economy. all the lee, china has to make these decisions based on its sovereignty and its economic platform. we have said consistently that we believe the renminbi is undervalued, and that provides china with an unfair trade advantage, and that we expect change. the fact they have said they are beginning that process is positive, so we will continue to monitor and verify how rapidly these changes are taking place. i think that we will be able to track a trajectory, and if that trajectory indicates that over the course of your, the renminbi is appreciated a certain amount that is more in line with economic fundamentals, then hopefully, not only will that be good for the u.s. economy, it will als

host: before we get to calls we know tim geithner the treasury secretary was recently in kline talking to them about trade and monetary type issues. how are the tkpwofpts getting along these days as they talk about the dollar and trade issues? guest: i think reasonably well. i think there was a period four to six months ago where we were hitting bumps in the road. i think those have been mostly patched up. the relationship is constructive and productive. i think that they had a good set of meetings in beijing a couple of weeks ago in the so-called strategic and economic dialogue that was led by the treasury secretary and secretary of state hillary clinton. host: how about your own meet g meetings an visit to china? what were you doing? guest: i was in beijing talking to primarily to university based economists looking at what china has to do to sustain the economic growth over the long run. they have had a record run. they have grown more rapidly for a longer period of time than any other country in recorded history. and many people were worried there were factors that could drag down

in fact more than 100 of us on this side of the aisle sent a letter to treasury secretary geithner that urged him to let tarp expire. in fact we introduced legislation to force the expiration of tarp. we voted against the majority's legislation to divert tarp funds for other spending. but the treasury secretary extended tarp to this october and the majority did nothing to stop it. just as we are again getting close to having tarp expire, the majority brings up a bill that creates what is essentially a second tarp program and it will last for years. so who wants to keep tarp going? rather than doing something that creates more certainty for small businesses to grow and add jobs to this economy, the majority is repeating the same failed initiatives that helped grow our national debt to over $13 billion -- trillion in the past two years. we have had record bank failures, including four that were tarp recipients. when those tarp recipient banks failed, the taxpayers and vestment of $26.6 billion -- 2.6 billion was wiped out. more have missed their dividend payments. these missed payments ha

it was the head of the crisis because the new york fed in particular and geithner now the treasury secretaryad a very big role on this. it was a ball before the crisis in trying to get better control of the trading of cds's. the return to get the trading better documented and more transparent, and the fed is continuing to work on that process. the issue on exchanges -- the changes are good. they allow for discovery and the setting of margins and providing capital so that you do not have to worry about your counterparty when you make a trade in derivatives. but exchanges are not very practical for idiomatic specialize derivatives, because the exchanges were you trade large quantities. you still need to have the ability to trade specific individualized securities of the exchange. but that still does not mean that they are not regulated. in the new bill, there would be added to new regulatory roles, substantial capital the banks would hold behind it, transparency, it would have to be public which you are treading, and considerable bore responsibility for regulators to oversee it. one of the big

in other words, if federal regulators like treasury secretary geithner fail to do their job, then these same regulators can simply ke over, dismantle or prop up any financial institution that they choose at taxpayers' expense and that's what i would call a bailout. that's the government picking winners and losers in the marketplace as the same reckless approach that caused the markets to undervalue risk, inflated the bubble and left taxpayers to clean up the mess when it burst and it must end. house republicans say, never again. and we have developed a responsible alternative. bankruptcy. it's a fair and unbiased process insulated from inappropriate political pressures and removes taxpayers from the equation. due to recent hearing, federal reserve bank of kansas city president, agreed, calling enhanced bankruptcy, and i quote, a process that he ensures everyone -- that ensures that the largest instutions will be dismantled if they fail. he continued, i prefer a rule of law that takes away discretion from the bureaucrat or from the policy person so that the crisis -- so that in the crisi

geithner. they should determine such action is necessary for purposes of financial stability and not for the purpose of preserving the covered company. to ensure the shareholders do not receive payment until the claims are paid, ensured that unsecured losses is bailed losses in section 210. that's the fdic. make sure that the management is removed. ensure that members of the board of direct ortiz are removed. so -- directors are removed. so it's quite the opposite of what the gentleman talked about. it says if an institution has gotten so indebted that it should not be able to pay its debts we step in and put it out of business. totally opposite what happened to a.i.g. it does say, yes, in some circumstances there may be an inability to do these things. but only after the institution has been liquidated. the gentleman talks about it and talks about it and never mentions that this is only as the institution is being put out of business. it is very clear elsewhere in here that any funds expended

we know from visiting with treasury secretary geithner, that medicare is essentially bankrupt. we know that social security, when we get to the suwannee 30's will be taking in enough money only to pay out three force of the benefits it pays out now. so, to help this committee dispelled the persistent and dangerous myth that our entitlement programs are sustainable as currently structured, can you describe the fiscal and economic consequences of doing nothing on entitlement and simply allowing social security and medicare to run their course, and could you please put figure 1 backup? that was the one on the tidal wave of debt,because i'm concerned about the effect of doing nothing with our entitlement programs on this very tidal wave. >> you are correct that the tidal mud programs are are not self funded. they are unfunded liabilities to a significant extent at this point. they are t biggest single component of spending going forward. now, there are various ways to address this. you can cut other things but at some point you need to address the overall budgetary situation. if yo

i think that's just been clearly evident since paulson was at the treasury and now geithner is pretty much continuing the + bailout. i find it quite distastefuu that one of the immediate things that we say needs to be cut are entitlements when clearly i think wall street could use some austerity. and quite frankly i think if we are going to have a budget surpluu there has to be a real economic recovery which means some systemic regulations in the system and i think we need to 3 glass-steagall which is one of the things f.d.r. was able to get through. thank you. >> let me say as all of you know we are pursuing pretty vigorously regulatory reform and -pi expect that to be on the flr prior to us leaving on the -- before the july 4 break. i'm very hopeful we'll have very significant regulatory reform package adopted y the congress and sent to the president. it is clear from my -- don't know if it's clear. my view is that the two major failures of the bush administration were fiscal irresponsibility and regulatory negligent -- neglect. we saw that in the financial community. we are now see

i will leave that to secretary geithner, who makes these determinations. >> how long you expect people like charles schumer and american manufacturers who have lost so many jobs, how you expect them to handle this? >> we are not going to have a colloquy here, but my expectation is that they will be serious about the policy that they, themselves, announced. i will work with people like senator schumer, manufacturers, workers who are affected by these trade imbalances. i think we all have the same interest. that is, the united states can compete with anybody as long as we have an even playing field. as i indicated in my opening remarks, we are prepared to enter into trade agreements with korea. one thing we discussed this whether there is a way to reinvigorate the dhanapaldoha r. i agree that trade can be a source of prosperity for everybody, but it has to be a fair deal. it is not just currency, by the way. we have had discussions with our chinese partners about what they're doing on non-tariff barriers, what they're doing with respect to international property -- intellectual property.

i will leave this up to tim geithner to make a decision about the pace, and he is the expert when it comes to the currency markets. i would say that we did not expect a complete, 20% appreciation overnight, for example. this would be extremely disruptive to the world currency markets and the chinese economy. and ultimately, not surprisingly, this has to be made based on sovereignty, and the economic platform. but we have said that we believe that this is undervalued, and that this provides china with an unfair trade advantage, and that we are expecting change. and they are beginning this process and this is positive. and so, we will continue to verify how rapidly these changes are taking place and we will be able to follow a trajectory, and if this trajectory indicates that over the course of the appreciating, a certain amount, and this is more in line with the economic fundamentals, hopefully, not only will this be good for the u.s. economy, this is also good for the chinese and world economy. and more broadly, with the challenges that the world economy is facing, we have said in pi