and there isn't a hank paulson or a one institution that can almost unilaterally do this. in the case of europe, you need everybody to get together and politically, as we've seen even in our own country, it is so very difficult on the downgrade side, it's exacerbating it because people are reading the papers, they're watching what we're talking about. they're calling their brokers saying, oh, my goodness, i can't believe this is happening. in reality, if you look at what's happening in the bond market. treasuries rallied yesterday. yields went down. that means that investors actually thought that treasuries were a better bet after the s&p downgraded them than before. >> that's the great irony of all of this. treasuries, people now rushing to them, despite what the s&p said. andrew, i read what hank paulson said on the deal book, he suggested that he saw this as a moment perhaps where the united states could come together once and for all and do something about the root problems that are causing our economic woes. but given what we've seen over the last couple of months, th

. >> you don't think hank paulson falls in that category?k paulson had his problems, too. but i don't think treasury secretaries matter. this is bigger than the treasury secretary and bigger than a white house. i wouldn't think of any set of policies that you could have done that would have gotten the economy back on the feet and roaring in two years. >> eric: it may be bigger than one white house but not bigger than one white house and one senate. if the senate but republican, you would have had spending cuts and we would haven't been downgraded. >> dana: i don't know if that is necessarily true because you had republicans in charge for eight years and when president bush tried to bring up social security reform they went running for the hill. >> bob: you think this guy starting out with everything against him? >> he admitted he hadn't paid his taxes on time. people have problem with tack taxes. he is the secretary of the treasury. >> bob: i've had a few of my own. i had illegal maids. many of them. >> dana: if we keep going, bob is in trou

that was the first one, it didn't work and hank paulson didn't do it, and didn't do it, so that stuff is still on the balance sheet. remember, they recapitalized and gave them money and that's on the balance sheet. if we go into a double dip recession, that stuff, cdo's, mortgage-backed securities, you name it, tied to consumers, they go down in price, banks got to take big write office. >> we couldn't bail them out again and there's no political will. >> that's the best news. >> and the problem, there'll be no problem. >> you know, that, no, no, no, they are too big to fail. if citigroup went under with 800 billion dollars in deposits, we're bailing them out because the fdic funds. >> and this congress is going to bail them out? this congress won't let this president spend money on anything. >> they won't. >> they won't, that's the problem we've got. >> and i think if too big to fail comes back and bites them-- twice in a row the atm machine didn't work and-- >> got to have the money and-- >> and currently the money in and out. >> that's a crucial little jump. and then ben stein, how

for ten years have been getting all of the money they've extorted from government whether it's hank paulson back in two thousand and eight or now barack obama who is just a puppet of wall street extorting once again for free handouts free money again for the too big to fail banks and this is going the way of all these other countries of saying where they've downgraded the debt great for bankers great for fees great for christmas bonuses this year for the kids but unfortunately horrible for anyone living in these countries where the american public is having their worth decimated by wall street banks and j.p. morgan and goldman sachs are to america's middle class what buffalo bill was to the buffalo population in america their interest in wiping them out it's foolish to think of this in terms of republicans versus democrats this is about savers averse to speculators speculators want interest rates at zero percent and they want u.s. treasury bonds the junk savers who are not getting any return on their investments because interest rates are zero are buying gold which is about to hit another n

virtual impeachment and they're going to basically put a gun to the economy said the same way that hank paulson put a gun to congress and said back in two thousand and eight and extracted and extorted three quarters of a trillion dollars for his banking buddies now boehner and his group of politicians his friends in washington are putting a gun to obama said and say either you abandon your president say you give us all the power or we're taking this economy down it's what we've been calling in the show financial terrorism is the most pernicious and ugliest form of terrorism in the world and al-qaeda look like mother teresa in terms of scope damage and the destruction of human life and boehner is kind of like a terrorist with a suntan he's the suntan terrorist financial terrorist from washington but it's also part of their banana republic in ization that we've talked about this a number of times as this often happens like in the egyptian economy where how egypt fell apart how will bark left office is because they were turf wars between the various monopolies over the sectors of the economy so wh

for ten years have been getting all of the money they've extorted from government whether it's hank paulson back in two thousand and eight or now or barack obama who is just a puppet of wall street extorting once again for free handouts free money again for the too big to fail banks and this is going the way of all these other countries of saying where they've downgraded the debt great for bankers great for fees great for christmas bonuses this year for the kids but unfortunately horrible for anyone living in this country also because the church is most what you saying is all of this is all constrained to well it's in their best interest in other words most of the economy in america over fifty percent of the economy is tied to investment banking and wall street trading so they control the g.d.p. for them to continue to make money they need to look for new business new revenues turning america's aaa rating to junk will make them many many billions of dollars in fees it's just simple economics and simple business just follow the money but if everyone can see that issues piling debts on to deb

would have happened this could have led to all kinds of things potentially uncontrolled you know hank paulson of the time back in two thousand and eight walking into congress mentioning things like martial law and very scary things that everybody wanted to avoid at the same time we're having this too big to fail discussions we've had too little of the discussion around the idea or too big to save if something is just too large to save everything we're doing and attempting to avoid too big to fail we're doing this we think time wasting resources shuffling trillions where they're actually doing no good they're just disappearing into a rock hole we're not getting any bridges out of the deal our energy infrastructure isn't being or all we have no new educational initiatives we don't have any investments that all we're doing is taking sunk cost that is wrecked debt we're just trying to recall creative destruction shouldn't been happening isn't happening because it can't be hidden forever it's going to come out in the meantime what we've done is on very unfortunately we're used to the odd time in a

get away with this massive fraud number they and when hank paulson went to congress i think story of three quarters of a trillion dollars it was all that we got to keep these markets open we can't afford to go bankrupt you can't afford the counterparty risk we can't afford the systemic risk and barack obama just put his phone as. and now to have years later it doesn't matter barack obama but not enforcing the law by not following the constitution it's going to blow up anyway well apparently a.i.g. is planning to file similar lawsuits against goldman sachs j.p. morgan and deutsche bank and of course after that will come the rating agencies because j.p. morgan goldman sachs and deutsche bank were selling products that were aaa rated by s. and p. but with all these things falling apart everybody losing their aaa america falling apart into a bucket of fraud and nothingness i want. bring up one final headline to think of another option another reality that we could be facing today what if barack obama had been a leader the bull case for gold gold is rising because the world's monetary sys

. >> you talk to economists, i'm talking about conservative economists hank paulson, what are they sayingbill? we need to spend more money. we need. >> bill: we don't have any money, juan. we don't have any money to spend. >> taxes on the very rich. there is no reason with a we shouldn't tax the rich if you are so concerned about there aren't enough rich to tax. they don't exist unless you tax all their money; all right mary katharine. >> what americans are saying according to polls they disprove of president obama's handling of the economy in particular at 70 something percent. ill. >> bill: it didn't work. >> he is proposing more stimulus. maybe a new federal department because that will work real well. here is the deal he can't put that on paper as a actual plan it has to be a vision that the cbo can't score. >> bill: the president won't commit to slashing the budget. that drives the deficit up. that's why we got downgraded. number two, he won't do what reagan did, cut taxes, try to stimulate the private sector. he still believes the public sector can lead to jobs. that's what it is. n

obama was largely in response to george bush and hank paulson asking us to bail out the financial structure of america. we have to get real about what the problem is. the second piece of this, senator box eer has a great dea. if we do it, we will save 600 more jobs than what the house is setting out to do. three, we need to pass the infrastructure, which is bipartisan. we have introduced this with lindsey graham of south carolina and mark warner of virginia. we have $2.2 trillion of infrastructure deficit in america. china is putting 9% of gdp into infrastructure. the united states of america is putting 2% or less into it. we have $80 billion of loss every year just to bail out just the grid problems with our energy structure to highways that are clogged because we don't build a transportation system. we know how to do this. we could have patent reform. there are millions of jobs wrapped up in the beaurocracy of patent reform that isn't moving forward. we could have regulatory reform so we don't take ten years to get business people a decision. there are countless things we can do. yes, we