i wanted hank paulson's take on the political environment in washington.zabeth warren and the antiwar street sentiment that still prevails six years after the financial crisis. he calls it regrettable. hank: i believe very strongly that income disparity is a huge issue in this economy. when i was treasury secretary -- i think it shock some people i -- i believe that is a problem. i think the way to solve that problem is not pointing the finger scapegoating republicans . people scapegoating china or wall street. we have had demagogues throw the history of this country. -- throughout the history of this country. we need problem solvers. peter: do you think in this involved -- deepika in this environment -- do you think in this environment -- hank: it is regrettable that bankers are being demonized. i view markets and banks as being a noble profession. i think in terms of difference they can make, in terms of helping people plan for their retirement. in terms of funding innovation and new businesses there is nothing wrong with pointing fingers at the banks an

right here, secretary hank paulson.staying with us. he's got a new book. it's called "dealing with china." plus we'll talk about the eu much more on "squawk box" ahead. i care deeply about the gulf. i grew up in louisiana. i went to school here. i've been with bp ever since. today, i lead a team that sets our global safety standards. after the spill we made two commitments. to help the gulf recover and become a safer company. we've worked hard to honor both. bp has spent nearly 28 billion dollars so far to help the gulf economy and environment. and five years of research shows that the gulf is coming back faster than predicted. we've toughened safety standards too. including enhanced training... and 24/7 on shore monitoring of our wells drilling in the gulf. and everyone has the power to stop a job at any time if they consider it unsafe. what happened here five years ago changed us. i'm proud of the progress we've made both in the gulf and inside bp. >>> earnings alert. bank of america set to report. we'll talk banks wi

i am pleased to have hank paulson back at this table.ome. >> charlie, it is terrific to be here. >> rose: now here you rewrote a book your first book now you written this and now think, are thinking of a third book. this is your post secretary life is about? >> no. i am afraid a, you know, you and i were jobbing beforehand that when i told wendy i was maybe going to write a second book she said i think i might date again. and this wasn't --, you know the crisis we got to relive it emotionally, but this was a harder book to write, more difficult book because the crisis is the beginning, the middle and the end, and this was just more difficult. >> rose: and the thread that runs through it is china? >> yes. the thread, it is all china. >> rose: what is your love of china. >> rose: what is your affection for china? >> well -- >> rose: what is your interest in china? >> so let me -- the reason i spend the time i spend there today because i think everyone needs to ask themselves where can i make the biggest difference? and the history i have t

charlie: hank paulson is here. he is the chairman of the paulson institute at the university of chicago. he has traveled to china more than 100 times. he has built unparalleled relationships with china's most important business and political leaders. he has brought the lessons he learned to this book "dealing with china: an insider unmasks the new economic superpower." i am pleased to have hank paulson back at this table. hank paulson terrific -- mr. paulson: terrific to be here. charlie: you are thinking about a third book. [laughter] mr. paulson: you and i were joking, when i told wendy i was going to write a second book she said i might date again. [laughter] this wasn't -- the crisis we got to relive emotionally. this was a harder book to write. the crisis was a beginning, a middle, and end. charlie: the thread that runs through it is china. mr. paulson: it is all china. charlie: what is your love of china? what is your interest in china? mr. paulson: i spent the time i spent there today i think everyone needs

former secretary goldman sachs ceo hank paulson will weigh in. i am blocking it. an amazing video of a chinese high-rise 57 stories up built in 19 days. we'll be right back. [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. my feet felt so heavy at the end of the day. they used to get really tired. until i started gellin'. i got dr. scholl's massaging gel insoles. when they're in my shoes my feet and legs feel less tired. it's like walking on a wave dr. scholl's massaging gel insoles, i'm a believer! if you're running a business legalzoom has your back. over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. >>> taking a midday dip, the company may face a u.s. lending probe, focusing on the loan

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larry summers on the left and hank paulson from the right. on the u.s. economy, growth is back, but there's a problem and it gets wider every year. on china, is it a friend or a foe? also, a pope and a politician trading tough talk. why is the president of turkey taking on the vicar of christ? and what does it say about turkey today? then david brooks games out the 2016 presidential field. nd avenue and jeffrey sacks tells us why 2015 is our last chance to act on climate change. but first, here's my take. the obama administration's foreign policy energies are now fully engaged in the middle east. negotiating the iran deal, sending special forces into iraq, supporting saudi air strikes in yemen, working with the syrian rebels. whatever happened to the pivot to asia? remember the basic argument behind the pivot was that the united states was over invested in the middle east, a crisis-prone region of dwindling importance to the american national interests. asia, on the other hand, is the future. of the world's four largest economies, three are in asia if pu

secretary treasurer hank paulson has just released a new book dealing with china.s why it is so important to have a relationship with what he says is the world's largest economy. we are joined now by peter cook chief washington correspondent. he spoke to paulson. what was your take away? peter: he does talk about the problems with the chinese economy and the fact that the double-digit road we seen in the past is not going -- growth we've seen in the past is not going to continue and that china needs to make changes to its economy going forward. he says he has cautious optimism that the folks we deal with on a regular basis -- he traveled to china all the time even though he's no longer the treasury secretary -- and he's confident that they have the tools and the will to make the changes, but it's what to be difficult. here is paulson about why he wrote the book. henry paulson: i wrote this book because this is by far the most important bilateral relationship, and it impacts business leaders. because china has now come up the value-added chain and they are now a for

mark: former treasury secretary hank paulson. coming up, who will stand druckenmiller -- who will stan druckenmiller back in the 2016 elections? ♪ mark: welcome back. a tense moment at today's ecb press conference in frankfurt, germany. a protester jumped up onto a table where president mario draghi was speaking. demanded an end to what she called the ecb dictatorship. the woman was taken into custody. after a short break, mr. draghi resumed speaking. interest rates, unchanged. aaron hernandez has been sentenced to life in prison with the parole following his conviction today of first-degree murder. a jury in massachusetts found hernandez guilty in the shooting death of odin lloyd who was dating the sister of hernandez's fiance. the conviction will be automatically appealed to the state's highest court. hernandez was selected by the patriots in the fourth round of the 2010 nfl draft. coming up stephanie ruhle's exclusive interview with stand druckenmiller and his take -- with stan druckenmiller. the president with the boston -- t

as the ceo of goldman sachs -- hank paulson offers his take on doing business with the people's republiccook sat down with paulson to talk about the history of the relationship. henry: they are a formidable competitor in addition to being a partner. we will be competing on the one hand and partnering in the other. it is very important for the united states of america to get some important things done. virtually every major global problem we have is easier to meet if we are working with china. global growth, climate change etc.. peter: not every american shares that you that they want to see the united states helping china. they see china as a threat to their own job. you take a different view? henry: yes. i understand that you. what i saved -- i understand that you. view. what i say to people, that is one of the reasons i wrote this book. we need to recalibrate our relationship with china. china will act in their interest and we need to act in hours. it is in our interest to find areas to work with them because there are many areas where we are not going to get the result we need. peter:

in his new book "dealing with china", hank paulson takes a dive into the realities facing china and thehighlights the critical relationship between our leaders and their president. hank joins me now, the founder of the paulson institute, it's great to see you again. you know china so well. more than 100 trips, you were going there as the goldman sachs ceo and meeting leaders when they were on their way up. what worries you most about china right you? >> what worries me most, really is that we have a new china, and it's transforming itself under the leadership of their. president is and it's emerging to become a formidable competitor and so the thing i'm most concerned about is that the united states properly recalibrate this relationship and take a more strategic approach. >> under your successes, what have wre seen? have we seen enough focus as the u.s. gets so bogged down in the middle east and the terror threats? are we doing enough regarding our relationship with china? >> i think we can always do more because there's a tendency to go -- and very understandably from crisis to crisis

banks that had been sustained by banks and subsidies -- >> do you knew tim geithner knew enough hank paulson knew enough at that time for that -- in other words it was a panicky time 2007 and so was 1929 by the way. >> theodore roosevelt asked them to fix it with treasury money. it was bigger in 2008. the main constituents was the banking system and the argument was that without the banking system to be saved in this manner everyone would come to their atm machines and couldn't get money out. the reality was the contracts with aig could have been preserved with far less government money than was ultimately spent because it wasn't this $700 billion bailout, it is a multitrillion dollar policy that is still going on. if we really firkd it it would not have still been going on and it wouldn't have been so global. >> if we agree with you or not agree with you, it is still a great read. nomi prince is a fellow at demos, the hidden alliances that drive american power. coming up, the college students who say they're stuck with worthless degrees and tons of debt from a failed school. >> do you think

that was hank paulson on our air this morning.cerns. >> the liquidity of u.s. market have been of great strength. our treasuries are the most liquid and deepest in the world. it's part of what adds to the strength of the u.s. economy and the strength of the u.s. when you look at the factors that are at play in terms of what's happening in the markets today, there's an awful lot of things beginning on that have been changing. i've heard questions raised that suggest that there may be just one thing that is driving the evolution of economic -- the economic environment. there are many things at work. we're in a recovery period where we're coming out of low interest rates into a world of more normal interest rates. >> i think specifically the concern was if we were to go through another crisis again, i think jamie dimon mentioned this events like what happened on october 15th in the bond market, for instance make us vulnerable. >> if you look at october 15th, we've looked hard at october 15th. >> what happened? >> 0 kt 15th there were

charlie: hank paulson is here. chairman of the paulson institute at the university of chicago. he has traveled to china more than 100 times. he has built unparalleled relationships with china's most important business and political leaders. he has brought the lessons

. >> help us understand the rationale for the 6% plus number and what you thought of hank paulson's numbers>> basically, i agree with hank. china's growth model is running out of steam and what they are in the middle of doing is transforming the economy to a new growth model, not just based on low cost low wage labor intensive, manufacturing for export and a whole bunch of state investment to a new growth model based on personal consumption and explosion of services industry plus a much more vibrant entrepreneurial sector. in the midst of restructuring a growth model, which has been around for 35 years, in the last two years flipping this into a change is difficult. the economy is in transition. why do we pick 6%? that's my understanding of what the chinese see to be the fundamental number to sustain general stability in the economy and to continue to generate sufficient employment jobs growth and living standards. therefore, if 6 was threatened as a fundamental basement they would intervene and they've got the capacity to do so. >> let's talk about that. which is to say, during this transf

hank paulson testifies and i will give you what i am refuting in cheney's memoir.i said at that time i took what some people know as the washington read for your name in your index. i can tell you by the way, but almost every book about politics mentions benjamin franklin. the reason i know that is by the time they get to benjamin franklin, and he's not in it. [laughter] but i turned to cheney spoke in his memoir in 2003 we submitted a bill to reform fannie mae and freddie mac, the financial services committee chairman barney frank killed it. the problem is i was not chairman in 2003 or four or five or six. the house is being run at that time by tom delay. when they raise this, if i was giving orders to tom delay i would not -- there were other things i would have done. i would've stopped the the big tax cut and i would've told them not to go on "dancing with the stars." [laughter] i said in the book that in 2003, chairman barney frank killed the bill. i felt a kinship to iraqi weapons of mass destruction. he lied about what both of us were doing in 2003. i gave a

bush henry hank paulson has led the u.s.ort to help china develop its economy and to persuade beijing to play by the rules. now the former goldman sachs ceo has distilled the lessons he's learned about the world's largest economy in a new book titled "dealing with china." >> and how have you seen china's economy change over that time? >> well, just dramatically. i tell the story in first part of this book about working with the chinese leaders on some of the landmark transactions the first ipo of china mobile or their first oil deal petrochina and helped drive reform and opened the country up to more competition and economic development. >> reporter: paulson credits chinese leaders for moving towards a free market economy over the last four decades and thereby lifting hundreds of millions out of poverty. and he sees xi jinping china's president as a committeded economic reformer who has amassed extraordinary political power in service to those reforms. >> he's also staked out a very important agenda domestically strong anti-

bush treasury secretary hank paulson.ind out why he says climate change in china is among the biggest problems. >> see you again today at noon. you will be here? >> i will, we come by almost every day to deliver your mail so if you have any packages you want to return you should just give them to us i mean, we're going to be there anyway why don't you just leave it for us to pick up? or you could always get in your car and take it back yourself yeah, us picking it up is probably your easiest option it's kind of a no brainer ok, well, good talk ♪ >>> good morning. it is tuesday april 14th 2015. welcome to "cbs this morning." an airport worker trapped in a cargo hold of an airliner forces e anenmergcy landing. cell phone video captures panic on the plane. >>> we're in iowa where hillary clinton started the her last presidential bid. marco rubio calls for a changing of the guard. >>> plus he's here masters champion jordan spieth in studio 57. >>> but we begin with today's "eye opener," your world in

larry summers on the left and hank paulson from the right. on the u.s. is back, but there's a problem and it gets wider every year. on china, is it a friend or a foe?

was the thought apparently looking not at no more of the secretary of the treasury at the time, hank paulson. if a large finance bill institution would drag down a lot of others. both happening in 2008 -- 2007 into 2008 it says these mortgages began to fail financial institutions holding mortgages and mortgage-backed securities had to write down their assets vary substantially. when you write down your assets, your capital declines. another declines. another is uncertainty whether they had done enough writing down and they were not in fact insolvent. they certainly looked weak over the insolvent. investors are worried about this. as we approach the first few months of 2008 one institution in particular had done a lot of investing in the housing business bear stearns which was an investment bank and still lives an investment bank looked like it was going to fail in the government stepped in and rescued it by providing $29 billion in risksharing funds provided by the fed to jpmorgan chase, and very large bank to buy bear stearns and saved it, rescued it. rescue their shareholders after they go

here's former treasury secretary hank paulson weighing in on china.his morning on "squawk box." >> i'm not surprised by the growth rate and the growth rate isn't really what i look at. i look at the source of the growth. china has had great economic success as we all know. and you know, taken hundreds of millions of people out of poverty. second largest you know economy in the world. and this is a company, a country that has a growth model that is running out of steam. >> all right. growth model running out of steam. stock market that has doesn't appear to be running out of steam at all. who has thoughts? >> i would say that the national past-time in china right now amongst the urban middle class is stock market speculation. you've goat $385 billion in margin right now. which i think is at 2 x number over what it was six amongst ago. you've got millions of brokerage accounts being opened up shanghai on fire. hong kong stocks on fire. the ling between the two, mainland investors investing outside of the mainland for the first time ever. they've going t

we have seen so many on the financial crisis area hank paulson probably most famously. bernanke you have to add? peter: you can make the case that bernanke was the person most at the center of the crisis. we have seen tim geithner's book come out. there is a risk that bernanke has waited too long for this book. that he waited to deliver this book. i think there will be a lot of interest in what he has to say. personal experiences, tough moments. it comes out in october. we have been knocking on his door, asking for an interview. the message we have gotten is wait for the book. matt: maybe he will come for jobs they annual only 10 bucks. -- in you will only 10 bucks. peter cook, always a pleasure. we will take a quick blake on -- a quick break on market makers. i spoke with a billionaire on monday. olivia: about guns and hunting. matt: i bought a compound bow while i was there. we'll show you that interview. ♪ olivia: still to come, who has a bigger -- the network that put together saturday's big fight. matt: not just another store for hunters and fishermen. who else but

. >>> former treasury secretary hank paulson ran the bailout that helped wall street keep from crashingon your stomach and they say it packs a punch like espresso. we'll show you some of the effects here ahead on "cbs this morning." at chili's, fresh is now. now chicken smoked in-house, and no more waiting for the check. new smoked chicken quesadillas on chili's lunch combo menu, starting at 6 bucks. fresh is happening now. i want...regularity. i want good digestive health. i just don't want to have to think about regularity. natural benefiber helps support digestive health...and maintain...that word. you know what it tastes like in water? water! except this water makes you feel great. benefiber. now in stick packs. advanced design makes it easy to protect your dog or cat from fleas and ticks. discover seresto. with the performance you expect from topicals in a non-greasy collar seresto provides protection against fleas and ticks for 8 months. seresto. brookside chocolate now has a crunch. brookside crunchy clusters - crispy multi-grains and sweet fruit-flavored pieces dipped in rich da

. >> we have hank paulson on tomorrow, and he talks about china dealing with the reckoning in his viewalt with. do you agree with that? >> yes, absolutely. one thing you should watch is there was a 1 trillion asset shift from bank loans to municipal bonds. that's the beginning of an important reinstrumenting, which if done directly may be the beginning of the workout process, which is very much needed, as you just mentioned. >> good to have you. tim, please come back. tim moe talking about asia pacific >>> straight ahead financials are the second worst performers in the s&p 500, down 2%. so what should investors be expecting? could the sector turn around? more on that after the break. you can call me shallow... but, i have a wandering eye. i mean, come on. national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment. real mature. so you wanna get out of here? go national. go like a pro. >>> good morning, everyone. here is your cnbc news update. a trade commission led by penny prit

we saw a bit of a tapering and that's one of the reasons -- >> former treasury secretary hank paulsonromoting a book -- >> he is. >> he talked about -- he came out and said basically, listen you can play monetary games here. the chinese government can play monetary games but at the end of the day there has to be structural reform in china. >> yes. >> do you think they believe they can get away with fiddling around with monetary policy or do you think they'll attack some of the structural elements that are going on in the chinese economy? >> it looks as if they're attacking some of the structural issues. one of the arguments that have been made is that the economy can't progress without some of the structural changes. anecdotally, we've been hearing about some measures that are being put in place. if you look at the stimulus measures they are taking now, this 400 basis point cut, it's a big move but at the same time it's not big like it was back in 2008/2009. they are still much more conservative than they were in years past. we are seeing that the authorities are comfortable with a ce

. >> i was reading hank paulson's book "dealing with china," it's a wonderful book about how china isthe end and he's talking about debt be consumer debt municipal debt government debt, how they're going to hit the same crisis we are. what do you think? >> we have overwhelming evidence from history at this point that every single time you see a big boom in household debt nonfinancial corporate debt it leads to bad things. china is going right down the road. we know historically that's led to disaster. who knows if there will be disaster but history certainly points at it if you look at the evidence. >> thank you for being here. his book comes out in paperback in just a couple of weeks. professor of finance. there it is "house of debt." >>> time now for a "cnbc news update" with sue herrera. >> more on the massive migrant crisis taking place across the mediterranean sea. video of a wooden boat packed with migrants sinking. up to 900 migrants are feared lost off a boat sunk off the coast of libya over the weekend. >>> a smoking ban in new orleans goes into effect tonight at midnight. pe

previously according to ben ben bernanke and hank paulson, if one of those banks was overly indebted,overnment had to either pay all the debts or none of the debts. a big payoff for them or chaos. instead we said here's the deal. federal government can step in pay only those debts that are needed to prevent the downward spiral then this is critical. the secretary of the treasury under the law is mandated -- not authorized mandated to recover any outright that the federal government has to put into this from other large financial institutions of $50 billion or more. one, the institution fails, and two there is a taxpayer loan that the secretary of the recover from the other financial institutions. you recover the money for the taxpayers. is it they do carry a lot more capital now. some have argued they're forced to carry so much capital for some businesses that those businesses just aren't profitable. they were's they're getting out of them. there is a big complaint on wall street, there aren't enough marketmakers out there especially when it comes to bond trading. there isn't enough l

hank p aulson explores in his new book "dealing with china." the examines how the u.s. should work with the country going forward. i was joined by mr. paulson speak about the book. your book is called "dealing with china." what advantages to china have compared to the united states? secretary paulson: they have got some advantages and they have got some major disadvantages. i would say the biggest advantage they have is they still have the opportunity for rapid growth, even though it is going to be much slower, because they have at least another 100,000 people in poverty -- which is a disadvantaged -- but there is an awful lot of opportunity for continued growth albeit much less than the growth has been in the past. but the united states has far more advantages. i think the problems we have pale in comparison to those that china has. i think that there's actually more danger, at least as much danger in exaggerating china's strength as it there is an underestimating the potential. kathy: too many americans look at the education capacity, they look at the benefits that a controlled economy can have in terms of taking stimulus, anything, wow.