larry summers, why has that not happened? recession's a very different recession than the ones we've seen historically. the ones we've seen historically were caused by an inflation upsurge, tight money, the fed hit the brakes and then this economy skidded out of control and then the fed took its foot off the brakes and the economy recovered rapidly. this was a very different kind of recession caused by overleveraging, excessive asset values, and when those burst, those bubbles burst when the de-leveraging takes place, when you have a massive contraction in the private sector's propensity to spend, then it takes a long time. >> larry, what do you say to your critics? okay. you just debated john taylor of stanford a couple of times, john do cochran is a colleague of yours, another colleague in the "wall street journal" today. they acknowledge the financial roots of this deep downturn. but they also argue that bad policy responses, too much stimulus spending for the short-term, too much borrowing, obama care because of its taxes

is coming, and they're sending copies to larry summers. summers writes back, "well, this doesn't sound like language a treasury secretary would use. you know, it sounds, you know, it sounds a little amateurish. it doesn't quite have the gravitas. you know, i don't think this is ing to insre confidence when you deliver." so they-they get very nervous and they tear that draft up and they're frantically reworking it. secretary geithner's time was up. >> you have everything set up-- a vip audience, cameras, all the press. markets are expecting something big, and they're expecting details. so the secretary walks out and frankly looked nervous. and he comes to the podium and the artwo teleprpter there. >> thanks to all of you for coming here today. >> he starts his speech, but he's just not good athis yet. and so his head's turning from one teleprompter to the next, and he gave the whole speech going like this. >> our plan will help restart the flow of credit. it will help clean up and strengthen our banks. >> at that point, geithner had never gi

and bring in larry summers, formerly the president of harvard. >> unfortunately, larry summers, who i'veor very long time, it's kind of exhibit a with regard to this phenomenon. now there is the revolving door which is a three-way or triangular way of involving academia, politics, and policy positions and major industries and financial-services, which is probably the most important of them, slightly behind would be energy and telecommunications. larry summers, first as an academic and then as a senior government official, but this point has held almost every senior policy position in economics -- by this point, he has held almost every senior policy position in economics. he participated in the deregulation of the american services industry and a heavyweight, after he left the clinton administration were the invention became secretary of treasury, then became president of harvard -- where he became the secretary treasury, the become president of harvard. he also began consulting for hedge funds. after he was forced out as president of harvard, he increased his consulting activities earni

you and larry summers have exchanged... you've clearly when he was in the white house you had a lot of conversations with him. you've had conversations with the president. larry summers had an opportunity to influence policy. they say they got all the stimulus they could from the congress even though it was a democratic congress. they got all they could have. they could not have got an trillion three but you wanted more. they couldn't get it. >> well, to a certain extent that's water under the bridge. >> rose: okay, fair enough. >> i don't want to rehash that too much. >> rose: okay. go ahead but the point is now to make the... what i think disturbs me most about that record is that for a couple of years obama creed it had intellectual argument. he stopped even talking about the economy and turned to this focus on deficit which is was short-term deficits which was wrong headed and was playing into the hands of people who have the wrong ideas for the economy. so now is the time to push for doing things right. i know it will

superstars of the financial world. >> you had this infamous, now, time magazine cover with bob rubin, larry summers and alan greenspan, called "the committee to save the world." and that just sums up the attitude of the times perfectly. >> by the end of the clinton administration, the folks in the treasury-- geithner, summers, rubin-- felt like there was an established playbook for dealing with a financial crisis. the first thing you had to do was come in and flood the banks with money, so that they would keep lending, as difficult as that was to do politically. >> narrator: it was an approach geithner took with bear stearns-- spending lots of money to respond to a financial crisis. but treasury secretary henry paulson thought geithner's strategy might send a dangerous message. he started publicly reminding wall street of one of the most basic tenets of the free market: moral hazard. >> i'm as aware as anyone is of moral hazard. i am also aware of... >> moral hazard poses the question: if you bail somebody out of a problem they themselves cause, what incentive will they have the next time to avoid

cents analyst than ian bremmer, larry summers said that, fareed zakaria. mutar kat. >> norell rubini, dominique barton, sir martin sirel, the list goes on who are endorsing this book. thank you for tacking time to see us. >> thank soches for having me. always a pleasure. >> rose: back in a moment, stay with us. >> steve coll is here. the president of the new america foundation. he is also a two find petroleumitieser price winning author, also a staff writer for "the new yorker" magazine. for 20 years he was a foreign correspondent and senior editor-- editor at the "washington post". in his new book private empire, exxon mobile and american power, he investigates the world's most profitable corporation which in many ways operates as its own sovereign nation. a case he makes am i'm pleased to have steve coll back at this table. welcome. >> thank you, charlie. >> rose: here is the question, i read the title of your book, the most recent bin laden, before that ghost wars, grand trunk road, eagle on the street. then the taking of getty oil then the deal of the

. >> larry summers has been coming here for three years. as one of the older participants, summers has a wealth of knowledge and experience, he knows the importance of emotional support. >> i have been through relationships, the unemployment, the trouble at home out in the street, and i just share with them my experience. >> kevin wilson believes men in motion is helping him become a better father to his three-year-old son. >> well i would always want my son to be a better person than i am. i want him to go i can't understand the things that i have done. > >> the national center for children and families started men in motion thirteen years ago. to give a helping hand to former offenders. >> we try to get direction and guidance so that we can be role models by what we do, and what we say. often people talk about what they are going to do. we actually try to show it. >> today it has grown into a therapeutic center, especially for 29-year-old jason brown. >> i'm going to be straight and make progress and have a role. [ applause ] >> congratul

former treasury secretary larry summers wrote in this week's "financial times" and in the "washington post" a country that pursues austerity to the point where its economy is driven into a downward spiral does its creditors no favor. as in if you keep cutting and earning less, you have less money to pay back the interest and the interest doesn't get smaller. we checked in with our outfront strike team made up of ceos, entrepreneurs, innovators, they overwhelmingly say no to more stimulus. john donohoe wrote the biggest threat to the economy is the growing deficit. we need to get simpson /bowles implemented soon after the election. and stewart miller told me we need to let the free markets work and start to focus on deficit reduction. you can see more about our strike team as always on our blog. but now one man who has made the fight against government spending his mission, senator tom coburn of oklahoma. he's the author of the new book entitled "the debt bomb." he is outfront tonight and good to see you, sir, in person. >> good to see you. >> i want to cut right to the chase here abou

and when i came to treasury, i came at a time when larry summers had just become the secretary. he really elevated the importance of anti-money laundering as a -- not just a domestic issue, but as an international issue. saw the threat of money laundering internationally something as the treasury department should be more involved in. so we pursued those issues for the two years that i was at treasury. and the issue began to gain some greater attention both within our government and internationally. i left, as was noted in july of 2001 as this was developing, but hadn't, i don't think, taken hold. in the meantime, the part of treasury which i now lead was completely transformed. we lost all of our law enforcement agencies. but gained something enormously important that has sort of fed our growth as an important player in that security. and that is two new offices, a policy office that is specifically dedicated to developing innovative approaches to combatting elicit finance. in the intelligence shock, we have, at the treasury department, our own intelligence unit comprised of an

larry summers. a former student of and former boss of marty feldstein. [laughter] marty, let's start with you. what should be the priorities for tax reform today? tax reform has all kinds of good priorities. people talk about what will improve growth, competitiveness, raising revenue. many of these are at odds with each other. and depending on what your priorities are, you would put forward different kinds of print -- reform. can you lay out what should be the priorities? >> you began by saying that larry and i come at it from different perspectives, and that is probably not quite right. we come at it from different political party affiliations, but larry and i have been talking about raising taxes for 30 years. i hope that comes out as we are talking about specific issues we've got a serious, cyclical problem now, but i think the tax codes that we put in place that i hope congress put in place next year, we have to be bought for the long term. there is, in a sense, conflict among them, but there are always trade offs. it is a question of picking things

at citi group made one hundred twenty six million dollars during his time there reportedly and larry summers who has been in and out of public service and a aca done academic his rate did ok when i look back at what he reported for two thousand and eight two point seven million dollars that year in what is no speaking fee a lot of them from the big banks five million dollars from a hedge fund so there is really seem to be the payoff for deregulation that just isn't there for regulation dr roberts when we get back i want to talk about all of this. looking at europe which is switching gears but still some of these issues there look like you wanted to to say a finishing thought you have a couple seconds if you want to do. well didn't ruben come into the treasury for him right he did is he the chairman of goldman sachs so he comes he comes to good sex the treasury goes back to the back it's the revolving door we know that the speaking fees are really the alarming thing to me i thank you we will be back with more with dr paul craig roberts economist and former assistant secretary of the treasury

sheryl sandberg, facebook's chief operating officer-s a former protege of larry summers. she worked at the treasury department. she's very familiar with how washington works. i think you see that reflected in how the town approaches. >> do google and facebook share legislative agendas? >> i think they share common goals. i don't know if their agendas necessarily would be shared. google is particularly invested i think -- the reason why their lobbying figure is so high is because they are the subject of an antitrust probe. so they are working very hard to change or build impressions and relationships. lawmakers who could be seen as potential allies if this becomes a matter that goes to court with the department of justice. but facebook doesn't have those sorts of problems yet. initially they were doing mostly outreach, now they're representing their policy positions. some things like policy legislation they have common goals. they both have a ton of consumer information. they both have likely very strongly against privacy regulations, that sort of thing. age verification,

she is the former chief of staff to larry summers at the national economic council.orked at treasury department. so those are some of the people that facebook has hired in the recent past to work on their staffs. we're going to be talking about facebook. its ipo is coming up. and we want to get gautham nagesh's take on it. the numbers rupp on the screen. republicans 737-0002. and 628-0205 are the numbers for you to call. gautham nagesh, the fact that we are doing a segment on facebook are we being a little outsized by this too as well because it's facebook? >> i don't think so. i think the short answer is that facebook is part of something like 200 million or 150 million americans' lives. it's almost as much a part of our communication system as cable television or wireless phones at this point. people rely on facebook. they invest a large portion of their lives and their personal data into it. and it's really the fundamental basis for the real name economy which will transform the real name economy on the internet which will transform the way we conduct ourselves on

i wanted to read you a quote, larry summers obviously worked for the president. but a very respected economist. he said and i quote, a country that pursues austerity does the credits no favor. i even though you want to redo the tax plan, do you agree with that statement? >> i do agree with that statement. but that's two separate problems. one problem is how we raise revenue. the other problem is how we contain spending. that's two separate problems. we have to first get this economy growing at a robust rate and exchange a tax code, throwing out the current tax code is the best way to do that and at the same time address the issue of how do we contain the out of control spending. two separate problems and i'm addressing with the book 9-9-9 and one of the biggest domestic challenges we have. >> i want to ask you in a moment how you're doing this during the election season, but first i want to ask you this. your passionate about this. you made it your cause. will you work with if he's re-elected president obama on this issue? would you be an emissary, an evangelist

larry summers. former chairman of the national economic counsel.former student of and former professor of -- [laughter] so i think marty, let's start with you. i want to start the conversation by actually working out what should be the priorities of the tax reform today? because tax reform has all kinds of good priorities. people taunt -- the simplifying the code. raising revenue. but many of these are somewhat center depending what your priorities are. put forward different kinds of reform. can you lay out what you think given where the u.s. economy is right now. what should be the priorities? >> guest: larry and i come out of different political parties and afill indication. larry and i were talking about taxes for thirty years. it's not too surprising that there's a lot of agreement. i hope that comes out as we talk about the specific issues. i think about tax reform in terms of the long-term impact. we've got a serious problem now. but i think the tax code that we put in place, i hope that congress puts in place next year, we have to think abou

larry summers top economic advisor for obama, in between 17 to $39 million almost all from the financialtry. from one hedge fund alone he got $5 million a year for working one day a week. that's how they do these unusual bribes. bill clinton giving $250,000 speeches over and over to banks. he now has $80 million. and the list goes on and on. why do you think democrats like tim geithner don't do a damn thing about the banks? because they also get paid by the banks. i'm going to bring in michael shure here. i think booker is guilty and the democratic party is guilty. >> cory booker is guilty of letting his ambition show. the democratic party if you think they are guilty yes, in fact they are. they are guilty of not doing more to indict some of the bad bankers -- >> it's not a mistake. >> it doesn't matter if it's an accident or intentional. what cory booker's book said he doesn't think everybody in private equity is a bad apple. he equated it with jeremiah wright which was foolish. >> if people like corps other or hal ford, jr. was not sellout -- booker is not a total sellout, hal is. >> i

. >> reporter: larry summers has been coming here for three years.he older participants, he has a wealth of knowledge and experience. he knows the importance of emotional support. >> i've been through the relationship, the unemployment, the trouble at home, out in the street, and i just share with them my experience. >> reporter: kevin wilson believes men in motion is helping him become a better father to his 3-year-old son. >> well, i will always want my son to be a better person than i am always. i want him to go beyond the things thaif' done -- that i've done. >> stay encouraged, brother. >> reporter: the national center for children and families started men in motion 13 years ago to give a helping hand to former offenders. >> we try to give direction and guidance so that we can be role models. often people talk about what they are going to do. we actually try to show it. >> reporter: today it has grown into a therapeutic center, especially for 29-year-old jason brown [ inaudible ] >> reporter: i'm jc hayward, 9news now. >> jason brown says men in

larry summers former treasury secretary, former student and former boss of marty feldstein. [laughter] so i think marrty, let's start with you. i want to start this conversation by actually working out what should be the priorities of the tax reform today? the tax reform has all sorts of good priority. people talking about boosting growth, simplying the growth, raising revenues. but many of these are somewhat at odds with each other and depending on what your priorities are, you would put towards different types of reform. can you lay out what should be the priority. >> larry and i come from different perspectives but that's not quite right. we come from different party affiliation but larry and i have been talking about taxes for 30 years and so it's not too surprising that there's a lot of agreement. i hope that that comes out as we talk about this specific -- the specific issues. i think about tax reform in terms of its long-term impact. we've got a serious cyclical problem now but i think the tax code that we put in place, i hope that congress puts in place next year. we