elements, why the market, the track that the market can organize all these economic forces so milton friedman deploys this fable of the pencil. leonard reed writes the slow story about how simple pen sold, this very commonplace consumer item really shows you that the people who make their graphite and the people who mail the what and so forth, they don't know how to put it all together, they don't know how to make a pencil and market it and move it around the world. and yet through the magic of the market this comes together and we're able -- right, so students take the story which was popularized by milton friedman and his theory and one student group him with a giant step dancing pencil then went around to students. >> host: it was a big hit. >> guest: who wouldn't love that? who wouldn't be thrilled to end by these young pro capitalist activists, many from christian colleges and a majority of these colleges, to come in and teach schoolchildren about the magic of the market and about economic citizenship and how all sorts of american values are rooted in private property. these are concepts

basically milton friedman agree with that point of view. >> i like the idea of. and that somebody happens, a lesson we all got side, but isn't that what we're doing, the way we are printing money? >> yes, and i come back to the first point i make this morning. there is a lot of money destruction also given the situation in the financial sector and banking sector and the fed is compensating at the moment, largely compensating that money destruction. now, if the money creation and credit creation in the private sector starts reviving, i repeat myself but i think it is free essential to understand that, then the fed has to go back from has to step out of the game. and so at the moment i think honestly we in europe because we can talk about the european central bank and have been very stupid in that respect i think, you can learn a lot from mr. bernanke, we must be very thankful that we have a guy who understands this mechanism and acts accordingly. there are risks involved but not doing that then you get the great depression. sure as hell. >> now, why does the germa

it was milton friedman that said nothing so permanent as a temporary government program. we need to make sure that t.a.r.p. does what it needs to do and then wind it down and get the taxpayers back as soon as possible. i know you feel that way. i want to commend you, mr. allison, for your willingness to serve and your efforts at fannie mae. i also want to be mindful of what i think we're going to need to do to get out of this economic recovery. we need to be mindful of the successes of this economic turn around will be driven by small business and middle class families. it is important, as i said earlier, to repay the tax payers as quickly as possible and not to just reinvest the funds because we have them. i think this money was specifically put out for a specific reason and we need to keep that in mind as we move forward. and we also need to understand the community banks play a critical role in the life bloods of our small rural communities across this country and they really weren't the cost of the economic problem, at least from my perspective. and maybe most difficu

. >> milton friedman said this. i do not often quote him but it is worth quoting in light of what you just said. he said few trends could so thoroughly undermined the very foundations of our free society as the acceptance by corporate officials, of a social responsibility other than to make as much money for their stockholders as possible, that is included in this article in the new england journal. i would just like to say, the fact that insurance companies can invest in tobacco companies, seemingly contradictory assumption if you're talking about public health, of note to this committee when we mark up the legislation, professor acker, i believe health care is a human right. everyone deserves it. that means no financial barriers, all medically necessary services are covered. the draft bill under consideration, many badly needed reforms, has a very strong public plan option. even with this, it is clear that millions will still remain uninsured and underinsured. what are the models for health-care finance that would

that's certainly scared us because we believe in the old-fashioned milton friedman idea that inflation is simply too many dollars chasing too few goods and that money creation is a real scary thing and i am worried about inflation too. and minammi could see what was happening with spending and debt and again this didn't start with barack obama. this started actually ander george bush. if you look at what happened under the bush presidency one of the reasons he will be regarded with-- is a failure, the federal budget when george bush entered office was $1.9 trillion. when he left office it was close to $4 trillion so we saw a doubling in spending over the last eight years. one of the themes of the book is simply that policy really does matter and it is interesting last night i was on the larry kudlow show on cnbc and i was debating someone on the other side and he was basically saying the reason the economy has collapsed and we are in this freefall of their recession right now is that the republicans listen to people like art laffer and peter tanous in you and larry kudlow. i smiled and

my big pet peeve is education and i'm, i'm the cochair of the milton and rose friedman foundation for the school choice because i think the way to solve social problems at this point is through education and i think that can only be done with some fort of school choice. >> evans, georgia. you're on with over stock.com. al on the republican line. >> good morning. >> good morning. it's a privilege to talk to you mr. burn. appreciate your comments on naked short selling. i have two questions. what exactly was the volume of failures to deliver and f c-spac-spccs response and aren't internet sales taxable in just about every state and they're looking at you as the low-hanging fruit rather than audit their own tax? >> this thing called naked short selling created