geithner and boehner on fox news sunday. what happens if there is no deal? will there be a market melt down. we'll ask the sunday panel about the political and policy realities. all right now on fox news sunday. hello again from fox news in washington. it is nine days and counting until the u.s. hits the debt limitt. can the nation's leaders come up with a last ditch plan to raise the debt ceiling. we'll talk to john boehner in a moment. treasury geithner, welcome to fox news sunday. >> good to see you, chris. >> chris: congressional republicans are working on a two-stage man to cut spending right away and raise the debt ceiling next year and then a mechanism for more cuts if approved the debt ceiling would be raised in, will the president pass that into law? >> we have to lift the default from the economy. for the next 18 months. we have to take that threat off of the table through the election. but we also want to try to make sure we come together and make tough choices and lock in long-term savings. we need to do those two things so the economy is stronge

treasury secretary tim geithner and secretary geithner welcome to "fox news sunday." >> good to see you, chris. >> chris: congressional republicans are working on two stage plan that would cut over a trillion dollars in spending right away and raise the debt ceiling into early next year. then there would be a mechanism for more cuts that if approved the debt ceiling would be raised past the 2012 election. will the president sign that into law? >> chris, let me tell you what we are trying to do what the president is trying to do is first and most important we have to lift this threat of default from the economy, you know, nor for the next 18 months. we have to take that threat off the table through the election. but we also want to try to make sure we come together and make some tough choices, lock in some long-term savings to help get our fiscal house in order. we need to do both those two things so the congress can get back to the business to make the economy stronger and get more americans back to work. >> chris: so for lack of a better word i will call it the boehner plan, would the

geithner. congthe president tells congress to come up with its own plan, but republicans are making an offer democrats can refuse.'ll f we will find out what the gop plans to do before the financial markets open in asia from the top republican negotiator, speaker of the house john boehner. geithner and boehner only on fox news sunday. plus, what happens if there is no deal? will there be a market -- meltdown? who will get the blame? we will ask our sunday panelas about the political and policy realities, all right now on." fox news sunday. >> and hello again from fox news in washington.riel it is now nine days andhing counting until the u.s. hits the debt limit. with the collapse of talks about a grand bargain, can the s nation's leaders come up with a last ditch plan to raise the debt ceiling before august 2nd. t we will talk with speaker john n boehner in a moment. key now there is another key figure at the center of the talks. g treasury secretary timeith geithner. "fonews welcome to fox new

secretary geithner claims republicans are blocking nominations they can kill or form. senate republicans have been clearer that the structure of the bureau of consumer financial protection needs to be properly reformed before we consider a nominee to lead it. we have urged the president to adopt three specific reforms. establish a board of directors to oversee the bureau. diversifying the leadership of this powerful fledgling you're saying would ensure that consideration of multiple viewpoints. secondly, subject the bureau to the preparations process to ensure that the bureau has an effective oversight and does not engage in wasteful spending. third, establish a safety check for the provincial regulators. one of the best consumer protections is a safe and a sound bank. i believe the most serving claim made by the secretary is that republicans for the forces of opposition to reform. the statement reflects the unfortunate view that anyone who does not support their idea of reform must be against any reform. that is nonsense. as i have explained and reiterated, there are

. >> is it possible that timothy geithner might decide to leave the treasury department? >> i think those news reports seem like they were a little ahead of where secretary geithner is, but if he were to step down, it would be hard for

geithner is downplaying reports once a deal with reached to raise the nation's debt limit.e was asked about it at an event yesterday. geithner says his family is moving back to new york so his son can finish up high school here. he'll be commuting back and forth. so he's not leaving. geithner is the only original member from president obama's economic team, by the way, and the rumor mill is already spinning, as you can imagine, as to who might replace geithner if he does leave. names that have already popped up include jp morgan chief jamie diamond. that's news out of cnbc. back to you. >> very interesting speculation. thanks very much, nicole. have a great holiday weekend. >> you guys too. >>> speaking of our holiday weekend, we want to know what kind of weather we're going to have, tom. >> so beautiful you're going to want to put the top down on your minivan. >> just going to roll it right back. >> you can borrow my circular saw. >> i'd rather borrow your corvette. >>> right now we're in the 50s to near 60. the suburbs have rural areas, a gorgeous morning under way. right

racially secretary tim geithner has the sole authority to determine how our debt obligations are met by deciding which bills to pay and when to pay them so if republicans really want to play hardball the president can direct tim geithner to play hardball right back at. is there cannibalizing federal pension funds he could cut into federal assistance to states whose republican senators and congressman are blocking a limit on the debt increase hey john boehner you don't want to raise the debt ceiling that's fine but kiss all that federal money ohio gets every day by using that money to pay off our debt no more highway funds no more medicaid funds nowhere education funds no more nothing oh you're out of business. the next day glenn beck's web site the blaze posted a creatively edited version of my take on their website with the headline lib talkers calls on obama to star people in red states which isn't exactly true i was hoping president obama would get the message about how to force republicans to have a little skin in the game in the debt ceiling negotiations not exactly calling for

geithner.e has said he may leave after this deal is done but who do you think would make a good treasury secretary? >> i have never been that excited about who the president has picked to fix us with our financial problems. ben bernanke and tim geithner did not predict the housing bubble and i think their economic policies created the bubble. and the recession and the joblessness. i put that the feet of ben bernanke and tim geithner. that figure was a mistake and wrong policy to put them into high office. i think they felt was during the housing boom in prices. it would have to be somebody who believes in the marketplace and that interest rates should not be manipulated by the government and credit should not be manipulated by the government, and we shall allow the marketplace who help us make wise decisions about what price of things -- what price things should be. >> who would be your dream candidate? >> it is probably better to talk about the policy. sayn't think i will get any nor will repu

treasury secretary timothy geithner talked about a decline? consumer spending and a drop in small business optimism during an appearance before the house small business committee this week. the focus of the hearing was the difficulties small businesses are having getting funding. geithner blamed the recession, specifically citing the impact on construction businesses and community banks. the secretary said the administration is trying to help pass things like tax breaks and regulatory reform. he urged congress to help give owners more access to credit. >> we've already approved ten states for the state credit initiative including the announcement today that kansas will receive funding to spur more than $132 million in small business lending. these capital programs are one of the most cost effective ways we know that congress can help encourage small business lending. every dollar of capital tal that congress provides can be leveraged to support lending that's many multiples of the government's investment. >> republican congressman sam graves f

. >>> treasurely secretary timothy geithner says he's staying on the job. there had been reports that geithner might leave the obama administration after the current round of budget negotiations. but geithner says he's been commuting between washington d.c. and his home in new york. but plans to be at treasury department for the foreseeable future. >>> if you are heading to tahoe, bring your bathing suit and maybe your ski clothes. the ski resorts that will be open for business this fourth of july week. >>> and it major -- westbound san mateo bridge traffic looking good. we'll tell you more about morning commute on a friday straight ahead. [ male announcer ] bring home a complete meal for your family. 10 pieces of the world's best chicken, 3 large sides and 6 biscuits. enough real food to feed a family of 4 or more for just 20 bucks. today is a kfc day. today tastes so good. >>> well skies are clear. temperatures will be in the 70s- 90s. you don't have to worry about fog on the coast. temperatures continue to warm up. >>> global warming could shrink norther

we've got the geithner team, the boehner team.nday dpl maybe the security team can find the votes. to me, that's the big question this morning. you have what speaker boehner reportedly asked the president yesterday or laid before the president. we'll hear that later today before the asian markets which is this two-tier plan, a short-term increase on the debt increase and a super committee formed later to tackle nearly $4 trillion in debt. timothy geithner saying this morning he doesn't think the speaker has the votes to get that done, even a short-term increase. what do you think. >> we're going to talk to him about that. it raises the question are the democrats going to be in a question where we'r they're sayg we're willing to hit the deadline, to crash the august 2nd deadline to ensure, in fact, that we exceed the deadline just to prevent the possibility that we might exceed it next year? that's a pretty hard case to make. we'll see how secretary geithner answers that question when we talk to him at the top of the hour. >> chris

i mean, it's one thing for secretary geithner not to pay his taxes for four years in a row. it's quite another to put a nation at risk by refusing to send out the payments for the debts as they come due for the u.s. and it should also be noted that there were hundreds of billions of dollars that the united states owes to the united states. so the united states doesn't pay itself, what are we going to do? send out a notice that we're -- the united states didn't pay the united states so we're deadbeats now? come on. there is so much political gamesmanship going on and we were sent here to deal with the critical issues of this country and being financially responsible is one of those things. now, i doubt that very many people actually look at the back of their dollar bills and i know they're having more and more trouble getting those dollar bills, but if you look at the back of the dollar bill, on either side, you see the two sides of the united states great seal. that was adopted initially in the first version around the time of the revolution. and the eagle has changed a litt

whereas, geithner and many others, outside and inside economists, say, listen.this is about the u.s. credit rating, it's about how wall street views what's going on, so there is more to it than the actual is there money in the treasury to pay for this. >> candy, timothy geithner was in the room here in new york a few years ago, september 14th of 2008, when a bunch of smart minds sat around and said the market will be able to take the collapse of lehman brothers in stride and he saw what happened the next day when they let that happen. so i think he is probably on the side of people who say we don't know what is going to happen if we miss that deadline, i don't want to be around to see. >> right. i mean, in fact, i think that most people will say we're not exactly sure what will happen because it's never happened before. >> right. >> and, you know, look. let's face it. congress -- washington needs a deadline. that's as good as deadline as any. >> who takes the brunt of this right now? you hear both sides and you hear a lot of blame being put on republicans saying

. >> do you believe the deadline established by tim geithner is a real deadline and if you're going to describe to your constituents in kentucky the damage that are going to be done if the united states were mixed and fall into default, which tell the men do you believe there would be significant economic consequences as president obama said this week? >> ultimately, if a country keep spending more than it takes an, as to borrow more money. what i would say about the deadline is it the -- the deadline has already been moved three or four months and they could move again. the real thing people need to realize is that we bring in about $200 billion in revenue and spend about $20 billion on interest. there is plenty of tax revenue to pay the interest on our debt and never default. the responsible thing from the press -- for the president to do is to take off the table and say we will not default. we think it is the appropriate right thing to do. >> let me follow-up on that. the president said at a press conference today and there is a bipartisan commission on this that there would be sign

republicans say geithner is crying wolf. chuck todd, kelly o'donnell, capitol hill correspondent, both join us now. chuck, first to you. the white house says that the deal has to be done by july 22nd in order to get it passed by august 2nd. they say it is a real deadline. address that and also of course the talk about whether or not tim geithner, now that we know his son is going to return to high school, they never were able to sell their house in west chester county, new york. whether or not he's looking for an exit strategy. >> let's take on first the part about the july 22nd deadline. this is, according to the way the white house puts it, is that this is the only way, if you want to meet august 2nd, you've got to get it basically done by july 22nd, because to get the bills written, to get them marked up, to get them passed through both the house and the senate, get those three-day waiting period, you put all that together and essentially that's what they're saying, that in order to get to august 2nd you need to back it u

president obama nominated geithner as treasury secretary in 2009.now here's what geithner told former president, bill clinton at a clinton global initiative event when he was asked about his future. >> i live for this work. it's the only thing i've ever done. i believe in it. i'm going to be doing it for the foreseeable future. >> for the second time in six years, minnesota state government is out of money. and close for business, the state's democratic governor and republican-controlled legislature could not agree on a budget on how to close a $5 billion deficit. the shutdown doesn't affect prisons or nursing holes, but it does involve other things, a big hassle for campers who have to leave the state parks on this busy fourth of july weekend. don't miss my show saturday and sunday. your money. and how you invest in this kind of climate. >> the barenaked ladies, a good canadian band, because it's canada day. >>> walmart offering ten cents off gas for the rest of the summer. you have to buy the fuel using a wal mart gift card or credit card so you'v

secretary geithner, thank you for being here. well, you just heard what jonathan said about what's on the table. is it possible that there will be a framework deal in place by 4:00 p.m. this afternoon. >> i hope so. again, both leaders recognize they're running out of time. they need to get this process moving in the house by monday night to achieve that deadline. they need to have a framework that they know with complete confidence will pass both houses of congress and is acceptable to the president and that should happen today. >> you think it can happen before the markets open in asia? >> well, again, what they're trying to do if you listen to what the speaker has said is try to make sure they demonstrate that they have a framework that can pasasboth houses of congress and the esident can sign and we're making progress, they are. >> jonathan raised several incarnations of potential deals. the two-part deal, the grand deal. what will it be? >> well, there are two types of frameworks that are on the table. one is the framework t

let's start with treasure riff secretary timothy geithner.id something about the possibility of a grand bargain that seemed to be a little bit different than what we may have been hearing the last couple of days. >> you know, we had these press conferences, remarkable press conferences on friday night. the president and the speaker boehner blaming each other and, you certainly had every reason to believe that the talks had collapsed. but i think as they are looking to try to find some answer, and the republican plan would basically be a short-term plan, a trillion dollars in cuts, gets you into early next year. then you have got to go through this all over again. and democrats aren't buying that. the treasury secretary dangle the idea let's go back to the grand bargain. they had basically agreed on $800 billion in new revenue. it fell apart when the president asked for auto% more. 1.2 trillion. boehner gave the impression let's go back to the 800 billion that we were agreeing on. and geithner did. and boehner then said, you know what? my deal

. >>> treasury secretary timothy geithner will stay on the job for now. there has been speculation that geithner might leave following the current round of budget talks. when asked about his plans yesterday geithner said "we have a lot of challenges as a country" so he'll stay for the foreseeable future. >>> weekly jobless claims were down. the labor department says 1,000 fewer claims were filed for unemployment last week but the number of claims filed over the last 12 weeks remains above 400,000. >>> borders, second largest u.s. book store chain, has agreed to sell itself. borders is under bankruptcy protection and the sale to investment firm for $215 million is tentative. >>> and betty, the trend for fast food restaurants to serve alcohol is growing. burger king started selling beer at so-called water bars in miami and kansas city and two sonic restaurants in south florida will start selling beer and wine, so now betty it's burgers, fries and a beer but that's only when it's a fancy date. >> that's right, you spend a little extra on that one, ashley, jo

geithner says his family is moving to new york so his son can finish high school there. but he will commute back and forth so he says but the rumor mill as you can imagine is spinning as to who might replace him, if he does go. names that popped up recently j.p. morgan's ceo and jeff imelt. also mortgage rates are holding for a third week. the average wait on a 30 year fixed is 4.5%. also pretty tentative signs of improvement in the housing market. those are the latest out of cnbc. >> nicole, thank you. the latest to get in the tablet business is hp. here is scott budman with a look at the touch pad which goes on sale today. >> yes, we have been talking a lot about tablets. this one a lot of people have been waiting for. it's from hp. >> is it powerful enough and big enough. >> with all of the attention paid to tablet computers, hp face as huge challenge. the silicon valley giant is famous in the tech industry. when it comes to tablets it's behind. >> this is the hp touch pad. >> now trying to make up ground with this, the touch pad. it looks familiar with a big differen

. >>> this morning there's speculation that treasury secretary timothy geithner will leave the obama administration after the current round of budget negotiations. according to "the washington post," geithner told the white house to wait until a decision is made about the country's debt crisis before deciding whether to leave. geithner has told lawmakers they must strike a deal to reduce the deficit and raise the federal limit on borrowing by august 2nd to avoid a catastrophic default. >>> and today marks the beginning of a new era at the pentagon. secretary of defense robert gates left his office for the last time yesterday amid the applause of personal staff. the 63-year-old who has served eight presidents during 30 years at the cia and department of defense received a presidential medal of freedom as a going away president. former cia director leon panetta will take over as secretary of defense today, and general petraeus has been confirmed as the new cia director. >>> nbc has suspended one of its political analysts after calling president obama a derogatory name on the air. durin

that's when treasury secretary tim geithner said the u.s. will default on its debt obgations. though there was no break through, the president said today's talks has been "very conductive." >> i will reconvene congressional leaders here on sunday with the expectation that at that point the parties will at least know where each other's bottom lines are and we'll hopefully be in a position to then start engaging in the hard bargaining that's necessary to get a deal done. i want to emphasize that nothing

that was treasury secretary tim geithner.iting for this statement to talk about the debt ceiling and what fruits the negotiations had borne. but all he said is we are running out of time. we don't have time to go beyond august 2 so he wanted them to get back to work. let's listen to what senator mitch mcconnell said earlier today. we just heard from senator harry reid. >> it's time to change this debates all together. it's time to make it clear to the american people where the two partsies snrand this debates. if you are with the president and his vision of a government that continues to live beyond its means or you are with those of us who believes washington needs song medicine. either you want to borrow and spend our nation into oblivion or you want to get our fiscal house in order. alisyn: you heard from senators on both sides of the aisle as well as treasury secretary tim geithner. so what does the average american think about the sail mate on capitol hill? we'll discuss that next. >> we are in a debt crisis. the america

and i think tim geithner should be doing the opposite. no matter what happens on august 2nd there will not be a default. they will pay the creditors and full faith and credit of the u.s. government will be in fact and he's doing the opposite for political gain. i think the issue whether the rating agencies downgrade or not is beside the point. the worry that i have, stuart, is that if we pass a debt ceiling negotiation, that is not something that the-- international investors believe is serious about bringing this debt down, i think that's what could trigger a run on the dollar, an increase in the price of gold and an increase in

is geithner on his way out? >> i don't know about that. >> he said he will leave and he would not say he would stay until. end of the term, just for the foreseeable future. so i believe he's definitely going to leave. >> so he was told by the white house chief of staff it's time for are for you to move on? >> no, no. they can't get him a replacement. talk [everyone talking at once] >> he's been told his time is up. >> you couldn't get a new secretary of the treasury through! >> what about the former governor of new jersey? >> you mean former governor of jersey the -- >> come on! >> jon corzine! >> gold is goldman sachs! is this legislation or reasonable facsimile gets passed by both houses of congress, will it be an historic event, pat. >> i think if they got the obama big deal be historic. i don't think they'll get a small deal. i think they're going to get some baby cuts and increase in the debt ceiling. >> eleanor? >> if they increase the debt ceiling, okay, disaster averted. but it's hardly historic. >> you'

and i think tim geithner should be doing the opposite. no matter what happens on august 2nd there will not be a default. they will pay the creditors and full faith and credit of the u.s. government will be in fact and he's doing the opposite for political gain. i think the issue whether the rating agencies downgrade or not is beside the point. the worry that i have, stuart, is that if we pass a debt ceiling negotiation, that is not something that the-- international investors believe is serious about bringing this debt down, i think that's what could trigger a run on the dollar, an increase in the price of gold and an increase in interest rates. don't forget, stuart, this week, the gold price went to $1600 for the first time in history. now, these people are getting very worried about the u.s. >> okay, james? >> i would just add to that, to answer your question, yes, we are on the road to greece. if you look at the budget plan over the next ten years, the obama budget. another 10 trillion of debt even if we do nothing. in the 7 trillion r

why he's doing this, political, why he and geithner say we're not going to default. we're going to argue about the size of government, if we do default, it will be catastrophic. why he's using that word i can't get into the guy's brain cells and it's just outrageous, that could spook the market. that's the one thing. >> neil: would the markets then lead the president and congress. in other words, in the fall of 2008 as you've written about, it was the original rejection of then president bush's tarp plan, to rescue the banks that led to this 777 largest point fall of all time. and then everyone just woke up and watched, all right, we've got to do something. >> what you don't see are the bond markets, especially the treasury market for us, a deficit mode. we have to sell eventually. >> the rates could skyrocket. >> there's an auction on august 4th, okay, says we raise the debt limit and still worrying, temporarily and do that auction, and if people boycott that auction, that's a real problem. that could set off a global catastrophe, that's an if. not going to say it h

. >>> treasury secretary tim geithner says that he is staying put for, quote, the foreseeable future. in the past 24 hours, there has been speculation that geithner might leave his post after the current round of budget negotiations. but last night in front of a live audience in chicago, geithner sought to dampen all that speculation but he did say that he has been commuting back and forth between new york and washington. >>> this is interesting. comedy central's stephen colbert is using a supreme court ruling to rake in some money. the fake newsman has formed a super pact. the federal elections commission says colbert can form the political action committee to raise as much dough as he can for ads for the 2012 campaign. super pact are a result of last year's ruling that corporation and unions can donate unlimited funds for election campaigns. >>> all right, folks. if you are heading around the bay area, as we get ready for the 4th of july weekend, we have a lot of sunshine coming our way today. already clear in many spots inside the bay and the valleys. just a hend of patchy fog at t

and today, treasury secretary tim geithner was positive a deal will get done. >> and the leadership in the congress understand that, the speaker understands that. the republicans and democrats understand that. it has to be a deal. failure is not an option. ter: republican senato jackie melksham leader mitch mcconnell blamed the breakdown on the white h insistence on new tax revenue. >> to get a big package would require big tax increases in the middle of an economic situation that's extraordinarily difficult ment. shannon box it's a terrible idea. it's a job killer. >> reporter: democratic congressman hollen said republicans were at fault for refusing to budge on new revenue. >> at the end of the day, what we're seeing is that the priority of our republican colleagues is not to get a deficit reduction deal; it's to protect special interest tax breaks for big corporations. after a meeting the leaders left the white house without appearing before waiting reporters, sources tell cbs news they will meet again tomorrow with the president as time continues to run out. >> i do believe that --

you get somebody in there who's not let's say like a geithner tim geithner remember tim geithner put it was it eight billion dollars of new york fed cast american dollars onto a plane airlifted to iraq and it promptly disappeared oh and by the way eric king of where erik prince of blackwater just happens to be now living the the big life there in the middle east i wonder where that money went well you're more likely to get the same exact sort of paradigm that played out in tahrir square which is remember what mubarak said at first first he met the people in a televised address saying oh i'll make a few little changes that was basically i'll have a commission to investigate whether or not there's been any fraud or corruption or torture and then he said there will be chaos if i step down this is a classic technique that the new york fed the u.s. fed the banks are occupiers always claim there will be chaos if we leave the scene do they try but they did in two thousand and eight famously with hank paulson in front of congress and they've done it every few months since the debt ceiling is

here is tim geithner. >> here we are 7 months later, we are running out of runway. i never thought they would take it this close to the edge and let politics get in the way of not paying our bills on time. >> reporter: other bit of concern when the white house it has been this much politics in 2011, there will be more politics in 2012 why they are going to need some kind of plan that will carry the nation's debt through the election next year into early 2013. >> gregg: speaker john boehner has been talking about a two stage process. what is the white house saying about that. isn't bill daley shooting that one down? >> it's interesting from the beginning, president obama has said he would like a big plan in terms of making substantial cuts to show we are serious about cutting the deficit. he would also like us to carry the nation through the 2012 election, but today the white house chief of staff was asked about the two-stage or two-tier plan. here is how he responded. >> if there are two steps fine, but do not of a step in the second part that lets the political sys

only treasury secretary tim geithner remained and word has just come in that geithner is weighing leaving office after the debt ceiling crisis is resolved. he talked about it today at the clinton global initiative in chicago. >> i live for this work. it's the only thing i've ever done. i believe in it. i'm going to be doing it for the foreseeable future. people are interested because, you know, i have a family and my son is going back to new york to finish high school and i'm going to be commuting for a while. i'm going to be doing this for the foreseeable future. >> that's what the treasury secretary may have said out in public today. certainly not from what we are hearing from inside the white house. what will this mean for economic policy? joining me chief white house correspondent jessica yellin and jeffrey toobin here in new york. jessica, let me start with you. why now, of all of the moments to add one more name to the list of departures, this seems absolutely horrific for the president. >> well, frankly, eliot, the reason why now is because i think it leaked. i think that the treas

." >>> treasury secretary timothy geithner says he isn't going anywhere. geithner says he will remain as treasury secretary for the foreseeable future. he was responding to reports that he would step down once talks on the debt ceiling are done. geithner is the longest t rving of the president's top economic advisers and an architect of much of the administration's economic policies. >>> overseas markets are moving higher today after greece approved those strict new economic cuts. tokyo's nikkei average gained more than 50 points. hong kong's hang seng is up in late trading. in london the ftse opened lower. on wall street, the dow gained 152 points yesterday, the nasdaq up 33. >>> minnesota's state government shut down overnight. talks between the governor and legislature stalled over taxes and a $5 billion budget deficit. the shut-down coming right before the holiday weekend means state parks and the minnesota zoo will be closed. >>> the agriculture department says the nation's farmers have planted the second-largest corn crop of the last 70 years. the ne

can one argue that geithner is crying wolf? >>guest: well, the reason you were able to extend it this way is by essentially the government moving pools of money around in various accounts. you are taking money set aside for certain government pensions and putting it here. there is no single date when we absolutely know the ability to spend on interest rates goes to zero. really, what it is, the matter of routinely rolling over existing debt and reagainsting -- refinancing it. >> a legendary investor gave a rare interview to the "wall street journal" and he said "it's not going to be catastrophic." the bigger danger, he says, then a technical befault is raising the debt ceiling without any conditions to control spending. and you know what? same thing happened in 1995, he said the same thing in 1995 and the date came and went and nothing happened. >>guest: that is right. but he was talking about a managed technical default saying the payments will be delayed a couple of weeks so we can work it out. we are trying to work it out on

bad is the picture secretary geithner panned and like if said it is graham. this understandagues this. they know what is kno at stake.t it is not blanket for sure. but to irresponsible say default would not be an unmitigated disaster who don't know what they're talking about and are twisting the truth for again. americans have gotten the message.71% of 71% of the american peopledhis disapprove of the way republicans have used this crisis to force ideologicalhe ps agenda. it even the majority of republicansth disapprove of the compromise to put our entire nation or race. those who say this crisis would be a blip on the radar are a wrong. default would be a plaguegue tht could haunt and what haunts would haunt the nation for yearn to come.year t our credit rating would take years to rebuild. wou the country would never ever be the same. some will say this is an exaggeration but it is not. treasury secretary geithner tols us and business leaders in congress andco rating agencies d bankers, this country defaultsob on its obligations they sayliins secretary geithn

we're told it's accurate geithner is thinking about it. also told not to read as much into as others are. it's about living in d.c., close to the president and his political team and enjoyed the town more than he expected. would end up being a big surprise if geithner did leave. think about it, confirming a new treasury secretary would be painful and difficult. it would serve to relitigate the economic policy at a time that the republican presidential campaign is getting started. and it also could serve as a signal, we're told a lot of cabinet secretaries were given a window to leave, none of them are expected to leave now until november of 2012. at this point geithner doing this would be a real bombshell to the west wing. with budget negotiations still deadlocked, lay makers have ramped up the posturing in an effort to score points with the public, democrats and republicans are blaming each other for blocking a budget deal. kelly o'donnell, ain't no recess next week, huh? >> they claim they are going to work. let's see how much they get d

you don't have to know who tim geithner is. all you have to know is people are losing jobs.eryone in that area where that ad is running knows someone who lost a job. >> in 2008 this -- unlike 2008 this time obama has to run on a record. >> it is effective ad, but misleading. didn't take into account that most of those jobs were lost in the first six months of his presidency. it still doesn't get romney past the south carolina firewall. >> it is effective because it plays to romney's strength as a tremendous businessman versus obama who was never a businessman. >> that's right. they spent us into a keynesian coma. now it is time to give free market, small government -- -- [ talking over each other ] >> it is how we got here monica. >> to be continued. [ talking over each other ] >> all right, all right. >> coming up, sean's interview on how we can reclaim american states and promise from the cultural elite. you don't want to miss it. stay tuned. >> welcome back. carol swain is a professor of political science and law. sean sat down with her to talk to her about her new book.

do i want this life with a bunch of strangers telling me how great i am, or to our want to be geithnertarted out as? if i were to advise anyone, i would say, make sure you are surrounded by family and old friends. but was really important to me. from then on in, if you ask people who work with the, i do not think they are working with a mega sex god. tavis: you raise the question -- how do you not let this kind of fame that you have experienced go to your head? >> i stay glued to my piano when i worked. i write, i produce, i do my job. i do not look up, and i try to be kind to people. >> tell me about the music on "15 minutes." >> it goes back to the type of music i did in the beginning. it has got a lot of energy to it, but it is a little more energetic than anything i have ever done. i imagine this 15-minute story being about a young geithner -- guy who wanted to get his music out there. i wrote a batch of songs that would have the rhythm, but the problem is i do not play guitar, so i wrote it on a piano and thought i was being true to what a guitar player would play, so i went into

timothy geithner himself.sted in. >> one of the things we came away from yesterday was that friday the speaker of the house, john boehner, had walked away and said i will not negotiate with the white house anymore, and that's up to capitol hill, right? and i asked timothy geithner about this. >> over the course of yesterday, the president was in touch with the leaders and they were talking throughout the day -- >> an early-morning meeting. >> so the president is still actively involved in these negotiations? >> absolutely. >> with the speaker? >> yes. >> so there you go. the negotiations with the white house, according to the white house and treasury secretary guide inner, those negotiations are still going on. and also in the interview, which we taped about 20 or 15 minutes ago, that in fact he didn't rule out a big debt deal yet, so i would say the whole thing is still in flux. >> we keep talking about a deadline of august 2nd, but there's another deadline floating around that expires in a few hours. you nee

the study that secretary geithner agrees with said it pulls down our debt...ebt pulls down our growth by 1%, which is equal to one million jobs. from 2% to 3%, we would have had in growth first quarter except for the debt. so we've got to do something because the crisis is now and the problem is washington is... surging spending and we've got to bring that down. >> schieffer: let me ask you this flat question. do you think right now that republicans have the votes to pass an agreement, even if speaker boehner comes out and says i've agreed with the president on this? i don't know whether speaker boehner has the votes amongst the republicans in the house to pass something like this. >> well, depending on what their agreement is. that's the answer. if he's got tax increases like the senate budget that just leaked out-- the democrats have not made it public but their outline was made public. it was $2 of tax increases for every one dollar of spending cuss. that's miniscule. and $4 trillion is far too little. we're talking about only 5% reduction in the growth of