christina lagarde. what happens next in europe? are there any solutions and what does it mean to the united states. going in style. it's high fashion week in new york. style is going high tech in this $200 million business. "wall street journal report" starts right now. >> what's making news as we head into a new week on wall street. the world central banks are working together to help ease the debt crisis in europe. five banks including the u.s. federal resesh, the ecb, and banks in spiwitzerland will ope new loans with new credit and allow them to pay a longer period of time. that will help the debt in struggling countries. >>> fourth day in a row of games. the markets ntinued up on friday. retail sales for flat for the month of august, weaker than the two-tenths of a percent reported by congress. spending aounts were about two-thirds of the country's economy. mixed and wholesale news on retail levels. the core index rose 2%, while the core consumer index was just up one fourth of a percent. the post office is looking for a stamp

lagarde also said... the global policy should not be driven by day-to -day investor's panic. english "and we really try to look at the fundamentals of economies, we try to look at the policies that have been decided and more importantly, the implementation of those policies." related to that, billionaire investor george soros told cnbc... that the european debt crisis is more of a threat to the global economy than the collapse of investment bank lehmann brothers in 2008. soros also said the united states is already in a double-dip recession... blaming the republican party's opposition to president obama's jobs and tax policies for steering the economy away from recovery. meanwhile... the leaders of korea, the united kingdom, australia, canada, indonesia and mexico have sent a joint letter to the g20... that calls on euro zone countries to act swiftly to resolve the euro crisis. the letter urged all european economies to confront the debt overhang... to prevent it spreading further afield. kim nari, arirang president lee myung-bak has arrived in seattle,... on his way back to

imf chief, christine lagarde has called on world leaders to take global collective action. english "overall growth is continuing to slow down. the advanced economies in particular are facing an anemic and bumpy recovery with unacceptably high levels of unemployment. the euro area debt crisis has worsened. financial strains are rising and again without collective bold action there is a real risk that the major economies slip back instead of moving forward." speaking at the woodrow wilson center in washington dc... the former french finance minister said... advanced economies are now in a period of "weak growth and weak balance sheets"... which reverberate into a crisis of market confidence, and prolonged lukewarm demand and investment. at the same time... emerging markets in general... have been overheating... causing inflationary pressure and upward credit growth. under the intertwined systematic global economies.. lagarde said that, if advanced economies plunge into another recession... emerging markets will also be pulled down too. her comments are seen as a preview of th

lagarde says the global economy is mired in a crisis of confidence. and that the problem is being made worse by, quote, policy indecision and political dysfunction. she's calling on european leaders to take bold, collective action to deal with the debt problems that are threatening to strangle europe's already anemic economic recovery. >> and ms. lagarde will have an eye on that meeting of the euro zone finance ministers in poland where the continent's debt crisis will be top of the agenda. timothy geithner will be joining those european finance ministers at that very get-together. that's an indication of just how seriously the united states is taking europe's sovereign debt problems. cnn's jim bolden is in poland and joins with us a preview of what's going on there and what we can expect. i had there, jim. lagarde, fighting talk from the former french finance minister whoin tre who interestingly enough was trueing to draw a consensus there this time last year. >> she is looking for a consensus or a consensus statement out of the people meeting here o

and it has to happen. >> christine lagarde there talking to our reporter. as greece continues to battle to meet the conditions of the first rescue package, prime minister is in berlin meeting the chancellor ahead of the key vote on thursday. that's when the german parliament will vote on making changes to the financial stability facility. the fst. a fund created to combat the european debt crisis. >>> germany will be central to any -- it's a key player in the efforts to in all efforts really to stabilize greece's economy. clearly, a lot at stake. mr. pap droe is meeting with ms. merkel. we have a reporter on the line from berlin. but first we'll speak with athens. it seems there are many crunches in greece but today is a particular crunch with the transit workers on strike again. >> reporter: yes, charles. it's interesting to hear the comment of the director of the -- christine lagarde saying that paying is basically necessary. you can almost coin a new phrase, austerity fatigue. because this government and the previous government -- during the first ten ye

. >> there is hope according to christine lagarde. >> having a little bit of patience while pushing theleaders into the direction where they have to take much needed action, more action than what has already been done. >> her optimism about the global economy is not shared by the world bank president. >> i still think that a double- dip recession for the major economies is unlikely but my confidence is being eroded daily by the steady grip of difficult economic news. >> they called on industrialized nations to take action spreading to developing economies. >> let's go to our washington correspondent. you were covering the conference. what did the world's main lenders have to say? >> the time for mauling through was over and the government in japan and america and europe must act to address the financial and economic problems. -- the time for mulling through was over. otherwise, their troubles might become the problems of the world. this might make a bad situation even worse. we might not see a recession in the u.s. and in europe. christine lagarde said that the world economy is at a ver

that is why christine lagarde is calling for collective action, for political parties to resolve their differences. the markets share her view. they are adding pressure to the political leaders gathering here. they are worried about the lack of growth around the world and the fact that they are not convinced that central banking moves like the ones we have seen from the american federal reserve will be enough moving forward. >> thank you for joining us. the relationship between the u.s. and pakistan is complicated at best. today, there was another risk. the most senior military officer has accused pakistan's spy agency in planning and conducting the attack on the u.s. embassy in kabul. >> admiral mike mullen, america's most senior military officer. he is close to retirement. he spoke with blistering frankness, asserting that pakistani intelligence is helping militants attacked and killed americans in pakistan. >> the network access as an arm of pakistan's = -- acts as an am of pakistan's services. it planned the attack as well as an attack on our embassy. >> the tins attacked the u.s.

christine lagarde and david leonhardt. this is a typical conversation that we have at the woodrow wilson international center for scholars. i also want to thank the ronald reagan building an international trade center for providing today's venue. it is the official trade center of washington, d.c. on a personal note, what a pleasure it is to see the new director of the imf, who happens to be a woman, so gracefully and completely to address the toughest issues that affect our world today. thank you very much. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> sunday on "newsmakers," henry waxman talks about republican plans to roll back regulations on the environmental protection agency and other energy issues. that is at 10:00 a.m. and 6:00 p.m. eastern on c-span. >> the first thing, you see the flash and everything. the next thing you hear is them cry out in pain. the second thing i heard was, if i have lost anything special, shoot me. >> sunday,

the news coincided with a call from the head of the imf, christine lagarde, for bold action to break the vicious circle of weak growth and high debt. >> the euro area debt crisis has worsened. financial strains are rising. without a collective, bold action, there is a real risk that the major economies slip back instead of moving forward. >> christine lagarde there. for more on the action taken by the central banks, i am joined by a reporter from the bbc. thank you very much. the bank of england, the central bank -- what have they agreed to do and why is it significant? >> have agreed to make dollars available to commercial firms -- they have agreed to make a dollars available to commercial firms to have been impacted by this debt crisis. they have not been investing. these firms in europe need dollars. they have been freezing up because they do not have enough dollars that usually come from the commercial firms. therefore, all of these central banks are stepping in where the private investors will not and making these dollars available, these much-needed dollars that have not been a

global economy faces a threatening downward spiral this is christine lagarde the new i.m.f. chief and she says europe needs to take its foot off the fiscal brake and shift to growth intensive measures and told the danger has passed insisting that germany has leeway to stimulate demand right so she's saying no austerity measures are bad for the west it is but this isn't that the i.m.f. just recommended for grace austerity measures that's correct i'm not sure she includes them in the west well but the prescription that damn f. is offering is gets a from ic they should just offer schizophrenia back bonds and float those on some global exchange that's pays off on house gets a front the i.m.f. can be that's right well it is also this story this ongoing story between savers versus speculators and as the article points out her comments are certain to cause fear e. in berlin where the i.m.f. is viewed as an agent of keane's ians and french mischief mrs le guard was friend. finance minister until two months ago well you know germany is sitting on a pot load of money and all these oth

are now if we talk about europe christine lagarde of the i.m.f. now is warning of doom and gloom saying the global economy is going to spiral downward unless we pocus on stimulus rather than austerity but i'm just wondering is it a little too late for that after already we've seen so many stimulus measures just go across europe after now we have a debt committee or you know a super committee here in congress that's about to enact to miss measures here in the u.s. as well you know it certainly seems like it i mean if you can get from an economic standpoint you could make a very strong case that in the u.s. and in europe stimulus would do a lot of good and is exactly what is needed right now in the u.s. it's all politics preventing it the government certainly has the firepower to do it if the congress were willing to go with it but i don't think there's any chance of that happening and in the year and in europe it's not even clear that they have the firepower to do it certainly. the peripheral countries definitely don't retire in greece and italy an

were fabricated engineered and created out of some black cauldron and which is there and christine lagarde is a little but she's on the box. he's not even human these last few minutes explaining that he doesn't even have a heart because the valve just like a lame valve made out a flaw so this m.p.u. sad one too many sound has obviously his brain is shrunk a little bit but he's been suspended for two weeks but he'll be back in two weeks great well these his ideas are wrong and what's wrong with finland anyway they are blocking the whole passage of the collateral that we needed to get this loan but as if but that's good then you should default greek said default so let them clock it but they don't need a military hanta this guy has taken too many sound right but he's saying that they are trying to block it by not accepting the collateral while the same time saying they need to do a military intervention are totally conflicted that proves the fact that they've drawn and they're so into did did the was doing their out there makes no sense and in finland it's not sound i stand corrected. but ta

into a dangerous phase of the crisis so far what do you think i mean what is the role of christine lagarde look arter the i.m.f. the world bank in these months and years ahead. i don't know that they have a rule the world economic forum at davos hold on with the i am the bank for international settlements have all said that they expect that we would have to total the debt in the system again within the next ten years to carry economic growth the reason that we got in trouble in two thousand and seven in the first place is people couldn't pay their debts so if we doubled the debt are we going to make the payments and at the end of the day is the problem there's too much throughout the system not just in the united states but worldwide and it has eclipsed the ability to produce and have that excess capital put to that purpose sometimes it just makes you want to ask the question how many times are we going to learn the same lesson over before we actually get it carl that enter in i thought i want to thank you so much for aftermarket karl than turner and that is going to do it.

christine lagarde, ms. lagarde is saying that number is being quoted in a misleading way. we can't confirm exactly what that number is referring to at the moment. certainly the imf is trying to tamp down that piece of news which is rolling around the markets at the moment, nina. >> you can imagine the banking sector very much front and center stage after news of that $2 billion loss at ubs and give whan you said, that doesn't help the situation either, does it, andrew. more on that after we come back. >>> we will also be speaking to jennifer delgado who will have your business travelers forecast. stay with us. [ male announcer ] you never know when, but thieves can steal your identity. turning your life upside down in a matter of seconds. hi. hi. you know i can save you 15% today if you open up a charge card account with us. you just read my mind. [ male announcer ] just one little piece of information and they can open bogus accounts, stealing your credit, your money, and ruining your reputation. that's why you need lifelock. lifelock is the leader in identity theft prote

christine lagarde head of international monetary fund warns the world is in this together. >> it's ahat concerns each and every country, each and every member of our institutions. we are in this together and we can pull out of this together, because from the fund's perspective our analysis says there is a path for recovery. >>> well, that's nice to know, a path for recovery richard quest. could that path go steeply downhill before it gets to the end? >> there is a new reality. there's a new seriousness. i would say it's come in the last two or three weeks. people are now talking about finance ministers, analysts, economists, everyone talking about a window closing to sort this thing out. if you look at the last four or five days in the market, that's exactly what we are seeing. this window is getting tighter and tighter. but we're hearing the same rhetoric. christine lagarde is a fine finance minister and leader of the imf, but you've got to do more than say we're in this together. angela merkel has to do more, sarkozy has to do more, the president has to do more. whichever way we lo

the imf made it clear christine lagarde out there pushing. let's face it, we're all in the same economic boat. if we don't have our oars in the water at the same time we're going to be in trouble. >> want to talk about the president preventing, did he, economic disaster. did he make things worse. s are things as bad as it seems. perception versus reality in this economy and president next on "your $$$$$." nice wheels. oh, thanks. keeps me young. hello there, handsome. your dinner's in the microwave, dear. ♪ where do you want to go? just drive. [ engine revs, tires screech ] mom? ♪ it's schwab at your fingertips wherever, whenever you want. one log in lets you monitor all of your balances and transfer between accounts, so your money can move as fast as you do. check out your portfolio, track the market with live updates. and execute trades anywhere and anytime the inspiration hits you. even deposit checks right from your phone. just take a picture, hit deposit and you're done. open an account today and put schwab mobile to work for you. ♪ ♪ co

lagarde says the global economic kr crisis is to blame, and the funding would go to countries in needy, and spain. >>> two american hikers held in an iranian prison are on u.s. soil for the first time in two years. josh fattal and shane bauer spoke out in their first news conference. iran arrested them along the iraq/iran border, held them in jail for two years for spying. fattal talked about how they were treated as hostages. >> many times, too many times, we heard the screams of other prisoners being beaten, and there was nothing we could do to help them. the solitary confinement was the worst experience of all of our lives. >> sarah, josh, and i can now finally leave prison behind us. we want more than anything to begin our lives anew and with a new appreciation for the sweet taste of freedom. >> fattal, bauer, and sarah shourd were all arrested in 2009. they were released on $500,000 bail each. shourd was released last year. >>> 6:35 now. today jury is expected to begin in the case of a maryland state law maker accused of using his influence to benefit a grocery store chain. ulyss

christine lagarde's remarks and next. the headed the sec testifies before congress about sec oversight and funding. after that, a medal of honor ceremony. >> watch more video of the candidates. check the latest campaign contributions to c-span's website for 2012. it helps you navigate the political landscape with the twitter feet and update from the campaigns and the latest polling data plus links to c-span media partners in the early caucus states. it is all at c- span.org/campaign2012. >> country should take courted in action. christine lagarde spoke at the woodrow wilson international center for about 55 minutes. this was a first major speech in washington since taking over as chief this summer. >> good morning. good morning. i am director and ceo of the wilson center. we are honored to host christine lagarde, and the new chief of the international monetary fund for her first public speech in washington, d.c. i am pleased to recognize many of my congressional colleagues who joined director christine lagarde at breakfas

christine lagarde used theword dangerous.nd our economic recovery too, doesn't it? >> it's a huge issue. europe is our largest trading partner. you hear a lot about china and india and brazil these days but the united states trades mostly with europe. europe trades mostly with the united states. anything that goes wrong there means jobs will dry up there. the broader picture, richard quest was talking about the mechanics of financial failure. why is this happening? the reason this is happening is because in europe as in the united states, people are realizing that growth is going to be slower than predicted. which means whenever growth is slower than predicted it means you're less in tax revenue, more expenditures on unemployment and things like that so your deficit gets worse. that's the fundamental problem and why all these countries like greece and italy, they realize they need more money to finance larger deficits than predicted. the underlying problem is no -- slow economic growth, lack of jobs. >> back to our word assoc

matter of mathematical formulas that are being spread out of a cheese whiz can being held by christine lagarde that's all they have no assets there there's no money it's just a fractional claim on it that that will never be repaid i notice you're on like some sort of familiar term with christie we're going to receive calls you have all the time you know she's trying to get herself out of this mess she created ok well this guy goes on to explain that productive wealth has been trapped in a web of parasitic theft counterfeiting liability evasion non-regulation and prosequi tauriel non accountability all the fundamental attributes of a functioning exchange economy have been warped to reward creative criminals. here that's absolutely correct and you know moral hazard is the polite way to say outright larceny they're arsonists they're looters they're plunderers and. you know the butane is so nineteenth century eighteenth century you need something something new well how about waterboarding yeah that could be you know that's a modern way to extract. a terrorist waterboarding ok yes well because it's

so where ever these are on elected officials the to me geithner's the larry summers and christine lagarde of the world walker stalk of course riots soon follow greece new austerity new riots the more the greek government does to get bailout money the more likely its citizens are to riot the more they riot the more its g.d.p. suffers apparently the troika is insisting on one hundred thousand more people be fired in greece and they're also demanding deeper pension cuts so we know how the greeks respond to this max but the goal is loss of sovereignty the goal of the troika is to strip greece of a sovereignty because they want to extract rent from that economy by seizing the income producing assets and they want the greeks to be slaves on that in their own country that's the goal and this is the troika which is just a rebranded hunta if you remember the hunter was in greece not too long ago greek people rose up got rid of the other got the troika well how come they're not doing anything about the troika and they must have run out of energy to deal with it well max who are the troika the e.c.b

as grave as many suggest and what does happen here and do the new i am happier director christine lagarde calls for stimulus rather than austerity a little bit too late joining me from our studio in new york to discuss that is joe weisenthal deputy editor of the business insider now joe i want to thank you so much for joining us tonight and for starters i don't know where to start we hear so much bad news so many doom and gloom predictions almost every single day lately so what do you make of what we saw on the stock markets they start to plummet and start a rally and a close down but you said it could actually be a lot worse. yeah actually i think people should be pretty happy about what happened today i mean let's go back to friday and since friday we got the full f.h. if a lawsuit against the banks which is made of the financial sector very nervous we had a really rough weekend in europe with more concerns that italy is in making progress on its austerity measures that the greece deal might not have been the german hesitancy towards bailing out greece and maybe increasing these lots of

in christine lagarde, we are seeing that true, gold leadership. clear, positive, and responsible, and, obviously, this morning, we are all anxious to hear more. please join me in welcoming the managing director of the imf, a woman who had shattered all ceilings, christine lagarde, to make her first public speech in washington, d.c. [applause] >> thank you very much for having me and thank you for listening to my remarks this morning. i would like to first of all thank the wilson center for their invitation. i would like to recognize and give my deep appreciation to jane. in her long and distinguished career, she has worked in the executive branch, law, and we even share the privilege of having being chairman of law firms, which is a good training for managing egos. [laughter] and of course, congress, where she has served nine terms in the house of representatives, where we know there are no egos. [laughter] she has been and continues to be a devoted public servant. thank you very much, jane, for everything you do, and for having me this morning. t

christine lagarde spoke at the woodrow wilson international center. this is her first major speech in washington since taking over her job this summer. >> good morning. good morning, everyone. ok, i am jane harman, and we are honored today to host christine lagarde, the new chief of the international monetary fund for her first public speech in washington, d.c. i am also pleased to recognize many of my former congressional colleagues who joined the director at breakfast at the wilson center earlier this morning. some of them are here. some of them had to go back to congress, hopefully, to make productive congress that will solve this economic crisis, but they are or where or senators or wereollins of maine, mikulski of maryland, barbara lee of california. we're also joined by some of the wilson center board members, and i want to recognize our chairman, and by a number of ambassadors, a good friend of mine from the united arab emirates, cornelius smith from the bahamas,. welcome to all of you. it is a pleasure for me as the first president of the wils

director christine lagarde has called this coordinated move exactly what is needed how does pumping more dollars into the economy measure up to what america needs joining me from our studio in los angeles is no me friends author of it takes a pillage and her latest book a black two. day which comes out next month you know me i want to thank you so much for joining us tonight and for starters i want to your take on this move by the central banks here using this swap lines that were set up after the original crash in two thousand and eight to make these short term loans do you agree with christine legarde is this exactly what's needed or not quite. this is exactly what has been shown not to work which is the reason we're in this situation right now those swap lines were put together in two thousand and eight to two in two thousand and nine to basically fund the banking system a global banking system that was severely destructive to itself and to the rest of the world and continues to be so the only difference is that where the bulk of that destruction was seen to be first seen ited states

." >>> international monetary fund chief christine lagarde issued a clear warning to economic policymakers around the world. she said the path to recovery is narrowing. at a news conference for the annual meeting in washington the imf managing director talked about a striking balance between reducing deaf sis and also maintaining growth. >> what needs to happen is that medium-term, long-term solid, well anchored measures that will actually aim at restoring good public finances by reducing deficit, by stabilizing debt and gradually reducing it has to be first and at the forefront of any agenda in those economies. but having said that, as long as in the medium term and long term this is well anchored, some countries can accommodate growth in the short term. and if you're asking many which country, clearly the united states is one that comes to mind right away. but it's a balancing act once again. there has to be a parallel track of what can accommodate growth in the short term by slowing down the pace of consolidation and how strongly and definitely and well anchored other measures that will

in fact, it might be necessary to make clear that christine lagarde would be the last nonchinese head of the imf. in a world awash in debt, power shifts to creditors. it's happened before. after world war i, european nations were battered by debt. the only country that could provide credit was the united states of america. for america, providing desperately needed cash to europe was its entry into the councils of power which brought a powerful new player inside the global tent. today's crisis is china's opportunity to become a responsible stakeholder in the global system. if this doesn't happen, by the way, hold onto your seat because we are in for a rough ride. let's get started. >>> for the last eight months jeffrey immelt has held two jobs. he is, of course, the chairman and ceo of general electric but also moonlights as the chairman of president obama's council on jobs and competitiveness. in other words, his second job is to get a first job for the one out of six americans who are looking for work. so what is he going to do? i talked to him about jobs, the american economy and ge