mr. zandi will tell you and others-- they're doing fine. they're very liquid. tens of millions in salaries. the housing market is still in a situation of crisis. we have to put americans in their homes in mortgages that they can afford. that i think is one of the largest failures we've had. >> reporter: a big debate certainly on capitol hill about' this. let's turn to the republican race for president. karl rove said just this morning that he'd put money on sarah palin running. but he says she's got to get in next week as he says, "you can only tease so many times in this cycle." do you think sarah palin will run? has she asked your advice? >> she has not asked my advice. i do not know. i certainly put some credence to karl rove. he's one of the guys who beat me. >> reporter: do you think she should run? do you think she should be president? >> that's a decision that is so personal. it has to do with your family and all of these things. it's hard for me to know where sarah should run or not. i think she would be very formidable. by the way, we have all these fr

so one of his advisors, mr. zandy, i also heard his comments this morning, and one of the things he says is we got to move from cutting to creating, creating jobs. i'm just trying to figure out, if we continue to go at the rate we're going, in other words, if we don't have -- we don't come one methodologies to create jobs and push that, we're going to find ourselves in some real difficulty, and we can only slide downward. and i don't want to see that happen, but i know the numbers aren't great, but can you tell us, what would you tell the president today? if he called you right now and said, you know, i usually don't bother you, but since he's leaving, can you all get on the phone and tell me what the deal is? what would you say? >> well, i would say that it is, of course, welcome news that the job growth has accelerated for over the last two months, so that is good news. but it's not yet strong. in fact, this is pretty helped job growth. and going forward, we really are going to have to do better in job growth in ord

mr. zandi was one of many advisors to my campaign. the key advisor was douglas holtz-eakin, former head of the c.b.o., who had no brief whatsoever for that proposal. please go ahead. mr. durbin: the second point i'd like to ask the senator from arizona, i think one of the real bedrock beliefs among republicans is that if you cut taxes particularly on the healthiest -- wealthiest people in america the economy will pros puss. didn't the debt of the united states double under the president and he left a shambles behind him? 2.3 million jobs lost in the first three months of president obama administration because of this failed economic policy which you continue to espouse, that if we cut taxes on the rich, america is going to get wealthier. haven't we tried it? where are the jobs? mr. mccain: could i take a little trip down memory lane with my friend from illinois who i had great privilege many years ago -- i don't know if i should mention the 1982 election, he and i came to the house of representatives together. you might recall that one

mr. zandi was one of many advisors to my campaign. the key advisor was douglas holtz-eakin, former head of the c.b.o., who had no brief atsoever for that proposal. please go ahead. mr. durbin: the second point i'd like to ask the senator from arizona, i think one of the real bedrock beliefs among republicans is that if you cut taxes particularly on the healthiest -- wealthiest people in america the economy will pros puss. didn't the debt of the united states double under the president d he left a shambles behind him? 2.3 million jobs lost in the first three months of president obama administration because of this failed economic policy which you continue to espouse, that if we cut taxes on the rich, america is going to get wealthier. haven't we tried it? where are the jobs? mr. mccain: could i take a little trip down memory lane with my friend from illinois who i had great privilege many years ago -- i don't know if i should mention the 1982 election, he and i came to the house of representatives together. you might recall that one of

zandi, thank you. >> thank you. >>> president obama on monday speak at the white house trying to restore the confidence. it didn't work. mr. obama says he has longer range plans and our chief correspondent norah has more on that for us. >> reporter: president obama spoke yesterday to reassure americans but it did not help. the stocks continue to tumble throughout the day. the president yesterday did not announce any any policy initiative but he did renew some calls for some initiatives he has long held on the table which he says can get bipartisan support. >> the most immediate concern of most americans and of concern to the marketplace as well is the issue of jobs and the slow pace of recovery coming out of the worst recession in our life. >> reporter: >> reporter: to combat this president obama pushed for extending the payroll tax cuts and unemployment benefits. subsidizing infrastructure construction and passing patent reform. >> these aren't democratic proposals. these aren't big government proposals. these are all ideas that traditionally republicans have agreed to. >> reporter: but recently departed white house econ