and that's the profile of mr larry summers he was a front runner and the race for fed chairman. and it's time for the daily deal with bob english and i hope your suit is comfortable they're here for a while well thanks for joining us now let's talk about sovereign debt now and starkly the japanese have had one of the highest household savings rates in the world and the citizens patriotically buy government bonds at very high rates but with an aging population forced to spend it savings to survive the rate has plummeted over the past decade and in europe there are concerns about some countries becoming insolvent which raise concerns about the fate of the european union itself yields on spanish italian portuguese greek and even french bonds have become unhinged at times since the financial crisis in higher yields mean higher interest payments a vicious cycle in the here even in the u.s. where bonds are thought to be relative. save there are concerns what happens when the largest marginal bond buyer that is the federal reserve stops buying treasury debt as a part of quantitative ea

fees available to those in academia and who better to highlight this conflict of interest then mr larry summers. we are now seeing reports that he's the top pick to replace a federal reserve chairman bernanke so let's see where summers got his start he began his career at mit in the late seventy's where he first met ben bernanke the mario draghi of stanley fischer who he would eventually succeed as chief economist at the world bank it was there that he drew criticism for his views on toxic weights now not talking about the actual are not talking about financial toxic assets which he later supported and actual toxic waste he approved a memo that said quote i think the economic logic behind dumping a load of toxic waste and the lowest a wage country is impeccable the underpopulated countries in africa are vastly under polluted. later in the late one nine hundred seventy s. while serving as deputy treasury secretary he worked closely with robert rubin and alan greenspan to overturn the glass steagall act and he also worked to ban proposed regulation of all privately traded derivatives he testified

larry in rockville, maryland, independent. caller: hi. you said a lot of things i agree with, mr. summers. one of the things that you said was these organizations are so to and so complicated, have a pyramid into one guy is just and reasonable. it is not practical. that is partly what caused the problem we are in right now. jamie dimon as far as ceo is probably one of the brightest. he kept jpmorgan out of this mess because even though they developed a scheme they could of purchased these defaults ops, which is different than the whale problem, they could have made big investments but they chose not to because they knew they were risky and he kept his company away from them. that part of why they ended up in a good position. he himself is one of the best managers, if you read its history, he's a great manager. however, the organization's are way too big. not just his. it is citibank and all those banks. they need to being somehow or another broken up in a managed way. guest: yes, i think you captured a lot of the public opinion. guy, very very smart accomplished. a lot of people are big fa