former treasury secretary hank paulson. a look back at the stressful days of the financial crisis. a look ahead to where he thinks the economy is headed now. >>> renowned cellist yo-yo ma makes beautiful music. but how does he make a profit? digital dollars, classical music and transformational money. "on the money" starts right now. >> announcer: this is america's number one financial news program. "on the money," now, maria bartiromo. >> what's making news as we head into a new week "on the money." the markets returned to rally mood with a bang. the dow industrials posted the best three-day winning streak in nearly a year, with triple-digit gains on tuesday, wednesday and thursday. the streak, though, was broken on friday. the move came after fed officials were out and about, saying that the fed had no immediate inattention of raising interest rates. and that the markets had misinterpreted ben bernanke's statements last week. lloyd blankfein told me -- >> chairman bernanke said we'll be very data dependent, but if the dat

also, hank paulson here in aspen. he worked with ben bernanke. i asked him if he was surprised the feds still had to do so much with the stimulus five years later. we will also talk about china economically and u.s. relations. a tomorrowic, as you know bill, that hank paulson knows well. we will get his insights on china. on this market day driven by the fed, jim grant of grants interest rate observer coming up. and market in the triple digits, bill. >> yeah. let's get you updated on how we are trading now. dow was up 165 points at the high of the session. off that now with gain of 123. back above 15,000 at 15,033 today. nasdaq also with a pretty smart gain of three quarters after percent. 25 point. at 3401 and s&p 500 index. higher by the financials, by the way. that's the leadership group the last three sessions as we move higher here. s&p is up two thirds or 11 points at 1614. >> much of the action today, a reaction, to two federal reserve policy makers. assuring investors that ben bernanke may have been misinterpreted and he is not easing up

joining me now is former treasury secretary hank paulson. ce to see you again. >> maria, terrific to be here. >> thanks for joining us. is the economy strong enough for the fed to start moving away? >> the way i look at it is this. ben bernanke has done an excellent job of preparing the market for the fact -- for the fact that this extraordinary intervention by the fed and extraordinary low interest rates, that will eventually have to end. he's been reassuring about it. because he said if and when the economy is strong enough, he is going to phase this program out. he has made it very clear that this isn't the time to do it but that the time will come when the economy is strong enough. as i look at it, from a hundred thousand feet, what the fed has done has been very important. because over the last five years, we have had a very necessary massive deleveraging of economy and financial system and we have been able to grow in and around 2%. so that's quite an accomplishment in and of itself and fed's policies have been to a large extent respons

instead, hank paulson gave the land, worth billions of dollars, to the wildlife conservation society and took only a $34 million text deduction. when this was brought to the attention at the meeting, the directors fined paulson $100 million, but the dirty deed was not unwound. today the 800,000 acres remains unproductive. trillium had anticipated revenues of $150 million annually from its project. instead, the wildlife conservation society is now trying to figure out how to develop it as a site for eco- tourism, which is pure foolishness. the sad tale is the reality of sustainability. it is only a notion, the purpose of which is to fool people to think that environmentalism exists on a higher moral plane than the rest of us. it is the environmentalist that are thinking of and planning for the future. otherwise the rest of us would just wreck the planet for future generations. sustainability is a con, a fraud. the real essence of sustainability is denial, saying no, no, you cannot cut trees down, no, you cannot use fossil fuels, no, you cannot use water. you're not even supposed to be.

hank paulson, thank you so much. >> thank you, charlie. >> rose: hank paulson, former treasury secretary, head of the paulson institute, former c.e.o. goldman sachs. we'll be right back. stay with us. >> rose: tim turlly is here, he's chairman and c.e.o. of ernst & young. the firm is a global leader in tax and advisory services with 170,000 employees worldwide. under his watch, it's more than doubled revenue. he has steered the company through trying times within the profession, including the enron era, corporate scandals and the financial crisis. after 35 years at ernst & young, he retire on june 30. i'm pleased to have him here at this table for the first time. welcome. >> great to be here. >> rose: so how many years in the accounting business? >> well, for me it's been 36 plus years at ernst & young, fall the same firm. it's been just wonderful. >> rose: how has it changed other than the clear impact of technology? >> oh, my gosh. i'd say probably the biggest shifts have been around the capital shift that we're all seeing in the world, and so the business is much more global than it's

to use it well congress did pass the seven hundred billion dollars tarp program and guess what hank paulson used most of it the problem the money went mainly to the big banks and institutions that behaved recklessly and the world financial system into disarray what paulson promised congress and the american people was something entirely different that the money would be used to help homeowners who were underwater on their mortgages well it's nearly five years later in the tarp money has been repaid nominally that is but that's not the whole story and maybe it's a little bit disingenuous for the treasury to quote spike the football so for more on this we turn to prime interest producer justin underhill justin what's the deal with all these bailouts very well recently the treasury launched a website that detailed in its interactive in a detail the amount of money that's been spent on the bailouts as well as how much has been repaid and it's pretty fun to click around and see the different amounts that have been given out and how much has been returned and as we can see in one of their charts

to use it well congress did pass the seven hundred billion dollars tarp program and guess what hank paulson used most of it the problem the money went mainly to the big banks institutions that behaved recklessly and the world financial system into disarray what part paulson promised congress and the american people was something entirely different that the money would be used to help homeowners who were underwater on their mortgages well it's nearly five years later in the tarp money has been repaid nominally that is but that's not the whole story and maybe it's a little bit disingenuous for the treasury to quote spike the football so for more on this we turn to prime interest producer justin underhill justin what's the deal with all these bailouts very well recently the treasury launched a website that detailed in its interactive in a detail the amount of money that's been spent on the bailouts as well as how much has been repaid and it's pretty fun to click around and see the different amounts that have been given out and how much has been returned and as we can see in one of their charts

and forget hank paulson goldeneye next treasury secretary he threatened to use a bazooka on the markets back in two thousand and eight but the european central bank said it won't be using any big bazooka and turbans and when it comes to sharp jump starting lending and the eurozone market participants had hoped that e.c.b. head mario draghi would bust out with another large money printing scheme sterilized of course but it looks like no dice for the big banks and this is after we reported last week that spanish banks were already going all in with their nation's debt looks like the european lender of last resort will be lending or bailing out much later. and here is what's in your prime interest.

and forget hank paulson goldeneye next treasury secretary he threatened to use a bazooka on the markets back in two thousand and eight but the european central bank said it won't be using any big bazooka intervention when it comes to sharp jump starting lending the euro zone market participants had hoped that e.c.b. head mario draghi would bust out with another large money printing scheme of their lives of course but it looks like no dice for the big banks and this is after we reported last week that spanish banks were already going all in with their nation's debt looks like the european lender of last resort will be lending or bailing out much later. and here is what's in your interest. it was first president kennedy who called a for a federal program to provide federally subsidized mass transportation to americans has a wish came true and one nine hundred sixty four when president lyndon johnson signed the urban mass transportation act and to law and establish what became to the federal transit ministration as a national project injected a three hundred seventy five million dollars an

he was all hank paulson. then guess what? he got booted out of office and they brought in another guy. so, i'm like man, this is going to work with this guy, too. every new attorney that come n you have to sit down with them and meet them and tell them what this means to you and what you can do and what you can't do, see if they'll go with it. and, so, the new guy came in and i was like, i don't know if he's going to go with this, but let's try it anyway. so, this is where we met william brahas. i'll tell you a little about him, too, and his story. i'll wait for the advertisement. [video presentation] >> money for your gold. [video presentation continued] [speaker not understood]. >> all right. william brahas, 20 years old, how we caught him, too, he used a lot of the internet. he was all over youtube, facebook. his girlfriend was big in helping us locate him. she put it on her facebook. you know, i don't know if you guys know this, too, when you take a picture and you post it on your facebook, it gives a little longitude-lat

but people like hank paulson, who is the former u.s. treasury secretary and now the chairman of the paulson institute told me that this is a very unique event and should be paid attention to. the fact that our president, barack obama, is participating in this really unique meeting with president xi in an informal environment, extensive meeting, shows that he and our government has their eye on the ball and they recognize. we recognize and china recognizes that this bilateral relationship is extraordinarily important and there's a terrific opportunity for them to build a comfort level with each other. >> this relationship is, as paulson said, very important in terms of trade, in terms of what it could do for both the u.s. and china. and also, i was speaking with the former ambassador to china for the united states, john huntsman, who said that it's really coming at a time when the political backdrop is favorable to getting things done. >> in terms of the u.s. and china, they're political ribbons. the ribbon is very distinct. and sometime

a, because bill is there, but they've got hank paulson. exclue guest at 4:30 p.m. >> stay tuned. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. my name is mike and i quit smoking. chantix... it's a non-nicotine pill. i didn't want nicotine to give up nicotine. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. [ mike ] when i was taking the chantix, it reduced the urge to smoke. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of the

he is mingling with hank paulson and and looked at his sturdy year career and said what do i have to show for it? and it is very interesting, all of the descent hatpins after he steps down from the helm of mackenzie. he becomes close -- closer to raj rajaratnam and in 2004 he gives a taco at columbia i have a watch a tape of the talking and you have a sense trying to figure out what is he going to do or achieve a new high? and it seemed he was really struggling. >> host: the success at mckinsey was not enough? he was probably in vicious. >> i read the book of course, many times and was up nights it was so gripping it was like a novel and a great shakespearean tragedy. but i got the sense there is the underlying that may not have been the case with a huge wave of sympathy is that correct? >> in the pitcher that we all saw was in a very stoic man he was a dignified statesman and when i went to calcutta to interview members of the family and luckily i went there before he was indicted, they spoke to me very openly. and said was the affected by his father's death? isn't they said they di

sacks full of research to write about this calamity, he had no interest in treasury secretary hank paulson or ben bernanke or the ceos of wall street's big investment banks, who he believes had no clue what was going on while it was going on. he wanted to tell the story through the eyes of people who were paying attention and who knew that a financial disaster was inevitable. >> but there were a handful of characters who actually had seen it coming and made a fortune off of it. and there were so few of them, and there were so many people who had been on the other side that i thought--that i kind of wondered who they were and why they got themselves into that position. >> what they saw. >> what they saw. almost more how they saw. >> how many people were there, do you think, in the world that understood what was going on? >> between 10 and 20 investors at most, and this is from a universe of tens of thousands of people who could have conceivably made that bet. >> the first one to see that something was seriously amiss in the burgeoning subprime mortgage market was dr. michael burry, a califo

. >> by september, bernanke and former treasury secretary hank paulson went to capitol hill to urge a massive bailout of the banking system. >> at that period, i thought we were pretty close to a global financial meltdown. >> how much danger was there? how close a call? >> it was very close. it was very close. we--the congress passed the bill that gave treasury the right to put capital into the banks in the first week of october, and it was in the second week of october that the crisis reached its peak. and if we had not had those powers, we could have had a much, much worse outcome. so it was a very dangerous situation. >> that second week of october, the dow fell 18%, its worst week in history. in the midst of the crisis, bernanke had freedom to act immediately. he doesn't need prior permission from congress or the president. while they debated on capitol hill, bernanke cut interest rates nearly to zero, then he used depression-era emergency powers to launch a dozen rescue programs of his own. there was support for money market funds, mortgages, short-term lending to small businesse

live from the aspen ideas festival with special guests such as goldman sachs lloyd blankfein and hank paulsontalk markets, fed policy, the economy, beautiful aspen mounts, all sorts of things there. much, much more. all coming your way tomorrow. >> a great conference every year, exactly. >> yes. >>> this is an incredible story, unbelievable, still shaking our heads over this. the u.s. owner of a medical supplies factory in china is still being held captive. not by authorities, but by his own employees. i mean, it's the wild west meets the far east. >> and they all kind of locked arms and jumped in front of me, and keep me from leaving. >> we'll talk about the perils of doing business in china coming up next. >>> also ahead, what was mckesson's board thinking when it approved a $159 million pension to the drug distributor's chairman and ceo? $159 if you didn't hear me the first time. we're going to talk about what happens when boards run amock, with the former apple ceo. vo: i've always thought the best part about this country is that we get to create our future. you get to take ownership of t

mitt romney, hank paulson.he world is full of people whose original training is not what they would go into later on. >> brown: we'll continue that discussion online but for now richard brodhead and john lithgow, thanks very much. >> great to be here. >> brown: and you can weigh in. has humanities education been useful in your life? tell us on our newshour facebook page. >> suarez: at the capitol's emancipation hall today, a statue was unveiled of the freed slave, abolitionist and human rights advocate frederick douglass. we present now some excerpts of the ceremony in his honor. >> abolitionist, orator, author, statesman, defender of women's rights, champion of human and civil rights for all, douglas to him, freedom and equality were tangible he carried them in his heart until it ceased to beat. in his words, and i quote, "in a composite nation such as ours, as in law, there should be no rich, no poor, no high, no low. no black, no white, no black, but common country, common citizenship, equal rights and a com

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plus, hank paulson's message to president obama. and in china's president 11 ahead of -- oh, no, xi. not -- >> it's not president 11? i'm sorry. ahead of today's summit in californ california. caught up with paulson. we'll join us with his comments, next. even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. ♪ ♪ ♪ ♪ >>> okay. all is right with the world, andrew. >> you said you were going on to be out. >> "the wall street journal" -- you did the "new york times" op-ed. "wall street journal," thank you for data mining. the nsa's meta data surveillance is legal and necessary. legal and -- isn't that incredible that you could -- >> two newspapers. >> once again, two newspapers. and i was already down as -- if rand paul can get there -- >> i know. but he says they do talk about the rib rals who spent years warning about the knock on the door if not republicans who are predicting the program -- .then they go and talk ab

." >>> coming up lloyd blankfein and hank paulson.le can i.t. innovation play towards a clean energy future? energy opportunities. meet the chal college, join the brainstorm in association with shell. >>> good morning, everybody. welcome to "squawk box." joe is on vacation. he'll be back next week. let's start with today's market agenda because it is a fairly packed one. we do have weekly jobless claims coming up. they're set to hit the tape at 8:30 eastern time. we have pending home sales at 10:00. plus we have a whole lot of fed speak as well. fed speakers could shape today's session. we have new york fed chief dudley speaking at 10:00 a.m. they say that no one other than bernanke or janet young has more credibility about conveying what direction the fed might take. on top of that, you also have some other fed speakers including governor jerome powell and dennis lockhart. on squawk yesterday they were talking about policy and central bank's communication. >> as the economy improves, people should expect interest rates to go up becau