why is it that people like larry summers and tim geithner came back? they were the month responsible for early, failed policies, so why did obama go back to them instead of the people that you described as the canaries in the coal mine, the people who had identified some of the problems? guest: one of the people i quoted in my book, a former senior regulator, said this to me. obama did not run for president to fix derivatives. this was not his area of expertise. he is a brilliant man, he certainly understand the gravity of the problem, but he did not understand until he became president just how deep it was. he saw people like summers and tim geithner as fix-it guys. i think he assumed that they would be able to fix it, considering they were partly responsible for it. certainly, we are seeing some signs that obama has realized, as sommers is leaving -- the president recently named elizabeth warren the head of this consumer panetta protection bureau, which is a great part of this new law. she is certainly considered a very progressive voice. she is one

larry summers was an expert mechanic who was going to be able to haul it out of the ditch without realizing just how deep the ditch was because of some of summer's own handiwork in the '90s. of course, once you choose your top officials, it becomes difficult to walk that back. but certainly we are seeing some signs now that obama has realized summers is leaveing. the president recently named elizabeth warren as head of the new financial protection bureau which is really one the best parts of the new bill, new law. and she's certainly considered a very progressive voice as one person described her to me, she's one the few people in the administration who don't have robert rubin on her speed dial. robert rubin being the former treasury secretary who was the mentor to a lot of the officials. >> host: austin goals by. we are hearing more about him. >> guest: he wasn't part of the process. very close aide to obama. the interesting roll that he played was that he was one the people that was nudged aside by larry summers. who at the beginning of the administration, obama was waxes about him. larry

it it's about what kind of the narrative and now according to this book we're finding out that larry summers obama's top economic adviser was who was causing the volcker rule to baseball who was dragging its feet you know back in october according to this book according to you know during that time when they wanted the volcker rule to get pushed through when banks were back on their feet but yet we're still able to get subsidized money from the government which was a very fair for obvious reasons you know they're trying to push the volcker rule and that it was summers that was dragging its feet on that and it was summers that was causing discord and holding up some of those things that were possibly blamed at that time on timothy geithner we're not excusing anyone here but we're just you know this brings up a different story there are thousand of it now was it just a vocal rule anything else that we should know that larry summers tried to thwart in his day. well you know this is something that you know this this book these ads are painting portrayal of him as being you know kind of thorn in

and cornell west just said that -- all he had to do was say publicly that larry summers had a problem with black people, and the harvard faculty left rallied to his support, and larry summers became the first university president in the history of the modern research university, a hundred years, to be censured by his own faculty and then fired. then he had to resign, he was forced to resign because he was crippled. so university administrators are intimidated by their pack allty unions -- faculty unions which are all, usually, i should say, dominated and can controlled by the left. there's a good reason for that. these leftists, their agenda is political. a true scholar doesn't want to be bothered with departmental politics. so i, i was, i have been and this campaign has been tarred and feathered. i mean, they've not only accused me of being mccarthyite, thought controller even though i've defended ward churchill, even though i've defended edward who was a flaming leftist, appointed dean of the law school at uc irvine because they then withdrew the appointment when some conservative d

and then you have roger aldeman replacing larry summers, possibly.esn't it seem like it's always the conservative choice? >> i want to add to david's list. i think don't ask, don't tell is a big test right now. extending the unemployment benefits is a big test, too. on the tax cuts, i think it's a huge mistake to compromise at all. the president made the case. we should not borrow $800 billion, $700 billion from the chinese to give millionaires a tax cut. you ought to stick to that. you ought to put it up for a vote. make the republicans vote against middle class tax cuts without an option to extend the tax cuts, even for two years. you guys are both right. if they extend it two years, then another two years, then another two years. them permanent. as far as roger goes, i have to tell you, yeah, let's put paul in there. put somebody on our side in there. >> so we literally have not had a show on the program that has disagreed. everybody says fight on the tax cuts. yet somehow obama decides no, we're not going to fight on the tax cuts. where is he get

>> larry summers knew perfectly well about this. >> why did they reject it? >> they rejected it because they thought, i think, that they couldn't do everything and that this didn't have their priorities... >> rose: well they tried to do everything. >> well, they started on this business of stimulus. >> rose: and what was wrong with the stimulus? >> i don't know what was wrong with the stimulus. but after that everything stood behind those priorities. >> rose: okay. basically the president would say to you and to anyone else and his advisors was look, what we tried to do with the stimulus was stimulate the economy, that's what it was about, economic recovery act was what it was called and we wanted to make investment that would have a real benefit over the long term so therefore it was energy, education and health care. those were three things we thought were important. now, they didn't say a whole lot about building infrastructure at that time. >> that's right. >> rose: the argument against it voiced by some was this, it does not create jobs quickly. >> well,

larry summers became the first person in the modern research university to be sentured and fired. then he had to force to resign. he was crippled. university administrators are intimidated by the faculty unions, which are all usually i should say, dominated and controlled by the left. there's a good reason for that, the leftist, their agenda is political. a true scholar doesn't want to be bothered with departmental politics. so i have been, and this campaign has been tarred and feathered, they not only accused me of being mccarthy, even though i defended lord churchill, i defended irwin who was at law school at uc irvine because they then withdraw the appointment when some conservative donors finally woke up to the fact that he was a leftist. i defended irwin. i did so. i debated. i have no respect for his political views for sure, but you can't fire somebody for their political opinions. it doesn't matter, i am portrayed as the torquemada of the university. worse that, there was the systemic campaign to say that i was lying, and, you know, made up the facts when i reported what s

. >> in fairness, larry summers did a heckuva job -- [laughter] >> you don't want to use that phrase, dude. >> i don't think i have ever heard anyone call the president "dude" before it a lot of politicians are worried about this, but it will take away the focus from getting votes. >> i said as much a few weeks ago, and what i said maybe wasn't right. this become an outlet for people all the liberal side to demonstrate how they feel about the country and issues as well. it is something i was not -- it is of the i did not think was going to be manifested just like the glenn beck rally, which brought out a lot of people on the right. >> jon stewart says this will be polite, that there will be signs that say, "i disagree with you, but i don't think that you are hitler." >> democratic operatives are upset because it takes people away from their home base on a critical weekend, when it is getting people ready and organizing the get-out-the-vote operations. one of the bases here is the liberal base, and the youth days. if this generates a real kind of excitement that goes back on sunday, it

have you been offered larry summers' job? have you spoken to the administration in terms of taking a role, or is this just speculation in the market? >> absolutely speculation. you know, i've got -- i just retired as chair and ceo of caterpillar. i'm looking forward now to doing a number of things with outside boards and other business activities. i continue to serve on the t-rab. and through that vehicle? >> the president's economic recovery advisory board. i think the prab, it will get reconstituted i believe early in the year. it gives the president an opportunity to drew on the private sector for economic advice. i would like to see it used more. i think i've given -- i've provided a lot of input for example for the need on infrastructure investment as a key part of the stimulus in the early going. we went with more a transfer payment instead of investment with that stimulus bill. and i think we wasted a lot of money that could have been put to productive use and strengthened our economy for the long-term. >> jim, good to

you are not going to take larry summers' job? >>>x$'m not a candidate for any job.m going home to charlotte. you can count on that. >> rose: you are not a candidate nor will you accept any job from the obama administration? >> i'm a big fan of the president and i'm going home to charlotte, that you can count on. >> rose: does thatÑi sound likea sherman statement to you? >> it did indeed, yeah. and >> if nominated i will not serve. >> rose: i didn't hear him say that. >> i think roger would doll a terrific job. >> i do, too, and i know him quite well. he lives in jackson, stays in jackson, wyoming, has a home there. >> rose: so if you go to wyoming you can't be all bad, can you? >> no. >> rose: stay with this idea. so where is the common ground other than we have to do something. >> i think the common ground is first people have come to accept the era of deficit denial is over. i think that's been an enormous leap on the part of most people. two, i think when we put out $4 trillion of real cuts in the deficit that people saw there was substance behind what we were sa

barack obama has demonstrated whether it's larry summers on the economy or the generals, when it comeso military policy and that reverence for establishments has made it very hard for him to really lead. >> schieffer: all right. i'm very sorry. our clock has struck. thank you all so much. be back with some final thoughts in a second. across the country when the economy tumbled, jpmorgan chase set up new offices to work one-on-one with homeowners. since 2009, we've helped over 200,000 americans keep their homes. and we're reaching out to small businesses too, increasing our lending commitment this year to $10 billion and giving businesses the opportunity to ask for a second review if they feel their loan should have been approved. this is how recoveries happen. everyone doing their part. this is the way forward. ♪ crossing borders with ease ♪ ♪ clearing customs' a breeze ♪ ♪ that's logistics ♪ ♪ a-di-os, cheerio, au revoir ♪ ♪ off it goes, that's logistics ♪ ♪ over seas, over land, on the web, on demand ♪ ♪ that's logistics ♪ ♪ operations worldwide, ups on your side ♪ ♪ that's logistics

. >> the president's economic team was led by larry summers, and while i think they-- they knew thingsad, i don't think they were aware they were going to be as bad as they turned out to be. in fact, they predicted that the highest unemployment would go would be 8%. >> you think we'll see unemployment actually get to 10%? >> i don't think so, bob. >> reporter: what the president's chief of staff, rahm emanuel, believed was that the stimulus package would work and the economy would start to turn around in the beginning of 2010. >> couric: the $800 billion package consisted of public works projects, aids to states and tax breaks but the republicans wanted the tax cut to go even further. >> the house republican leadership met with president obama at the white house. they brought a few ideas to the president, including tax cuts. the president told the republicans, elections have consequences. i won. >> couric: days later, as the president was leaving the oval office to try to seal the deal with republicans, the g.o.p. sent word-- they would not vote with the democrats on the stimulus plan

bourne was fired forced out of government by alan greenspan and larry summers because she wanted to regulate against fraud she was shocked to learn that alan greenspan told her over lunch that he believes the markets are better at regulating fraud and he is against it so now he's saying oops when he safely away with his pension fully intact yet he's working for over there pepco with bill gross advising pimco and the tories front runner an insider trader so you guys make good money doing fraudulent activities while in office out of office you probably can't go to the bathroom without committing some fraudulent activity thankfully my final note here this was sent in by a viewer of the show who actually is using one of these mac's kaiser gold coins here's a picture of oh i sent an email that demanded evidence to put my picture on the new russian global gold coin not haven't heard anything back yet then finally max you know those gold coins as max keiser gold coins might come in useful for the final savers versus speculators dead or versus creditor bubble of all jeremy grantham the fed is creati

beginning with president obama's posture in his conversation with jon stewart: >> in fairness, larry summersd a heck of a job trying to figure out. [ laughter ] >> you don't want to use that phrase, dude. [ laughter ] >> pun intended. >> bill: okay. here now body language maven tonya reiman. what i'm interested in is the happened. beginning of the conversation one finger. i do that a lot that's why i'm interested. then the hand changes. >> when he starts pointing down? >> bill: yeah. >> that is at this point lay dominant position when you pound your hand down on a table you are demonstrating how strongly you feel about it he loses that power though because he doesn't hold eye contact. in order for the power to be there, you have to pound at the same time you make eye contact. >> bill: what about -- look, see the hand there? that's after stewart hits him with the you don't want to say that, dude. then the hand opens up. what does that mean? >> well, he completely got taken over by that and he lost all control of his self-awareness, so to speak. the finger is open. he became nervous, the exten

. >> charlie: what about people at the time the secretary of treasury and larry summers and people at the fed. did they have a sense it was coming. >> rubin and greenspan is like a decade later. no, nobody had any sense -- what happened by then is you have this burgeoning market and the proliferation of derivatives and what you have in the 90s is the beginning of a push by some people to say they're dangerous and ought to be regulated. something needs to be done other than just letting them go untrammeled in the market place. >> charlie: why didn't those people listen to those people? >> i think one is this ideology about modern finance that innovation is good and we shouldn't do anything that would stymie it. >> charlie: and the market is always right. >> and those two things combined plus lobbying money from the financial industry and it's implicit because everybody thinks the same way and explicit because there was money changing hands. >> charlie: so what happened when somebody knew what they had to lose knew what pay mess they were in. you talk about merril lynch and stan o'neal.