and the next morning mrs. graham came up to my desk and wasn't used to seeing her around my desk, either, and she said, carl, do you have any more messages for me? and it was also just before that story that when we had the information about mitchell and we started to understand about this -- the money and how it went from more than just the bugging at watergate, a couple days earlier we were discussing how to write this story and we met bob and i in the vending machine room off the newsroom floor and i put a dime in to get a cup of coffee, also to show you a difference in that year -- era, you could get a cup of coffee for a dime. i felt a chill go down my spine literally. it's the only time i ever felt a chill. >> mitchell jumped out of the vending machine. >> that's right. and i said, oh, my god, this president's going to be impeached. this is about eight weeks before the break-in. and woodward said oh, my god,er' right. -- god, you're right. there was some logic to it. and woodward said we can never use that word

mr. graham brady. >> as he strives to restore sanity to our national finances, will my right honorable friend also give a word of reassurance that the budget next week will seek to encourage and support those who save and provide for their own future? >> my honorable friend is entirely right. we have got to make sure that, in what we do, we actually help those who try to do the right thing, to save and to look after themselves and their families. the first thing that we have to do is keep control of inflation, to keep the bank of england independent, to make sure that the budget supports the tough approach on inflation, which is the worst thing for savers. the second thing that we can do is make sure that we do not discourage saving by having so many people reliant on a means test. that is why we are committed to linking the state pension back to earnings. but what i would say is this -- there are no easy ways of reducing this deficit. some people believe that it can be got all from one area or all from another. i am afraid that it is going to be a difficult task. we will do everything we can

doing what we do and when our records were subpoenaed by the re-election committee and a lawsuit, mrs. graham tos i am going to take possession of your notes. >> can you see the picture of furred getting out for limousine going into the d.c. jail? e point is, she was willing to take the responsibility for the institution. does that situation exist tay? i think much less so. i think also we have a media environment in which we are losing to some extent because of the pressu of speed, manufactured controversy, gossip, the web partly, which i think is a great reporting platform but we also need as removed to these platforms to bring to them the standards of the desk of the old jrnalism. >> very quickly in rebuttal, i am saying they're very good examples of journalism and t spirit is there. if you -- if you used to have a staff of 200 and you now have a staff of 100 which is what happens to a lot of newspapers, they cannot do the digging and in-depth reporting but i think the vitality is their and my argument is that the people on the business side need to find that business model and things will

doing what we do and when our records were subpoenaed by the re-election committee and a lawsuit, mrs. grahamof your notes. >> can you see the picture of furred getting out for limousine going into the d.c. jail? the point is, she was willing to take the responsibility for the institution. does that situation exist today? i think much less so. i think also we have a media environment in which we are losing to some extent because of the pressure of speed, manufactured controversy, gossip, the web partly, which i think is a great reporting platform but we also need as removed to these platforms to bring to them the standards of the desk of the old journalism. >> very quickly in rebuttal, i am saying they're very good examples of journalism and the spirit is there. if you -- if you used to have a staff of 200 and you now have a staff of 100 which is what happens to a lot of newspapers, they cannot do the digging and in-depth reporting but i think the vitality is their and my argument is that the people on the business side need to find that business model and things will get better. but i agree

mr. graham was for, i made a mistake. the market did not discipline itself. in fact, the market took extraordinarily irresponsible steps. what i hear, i tell my friend from new jersey, the people saying is, don't let the big guys trample on us. don't let the big guys put us at great risk. don't let the big guys make decisions that they take the risk and we take the loss. that's what i hear the people saying. and that's what i think this deal is designed to respond to. this week mr. boehner compared reforming wall street to killing an ant with a nuclear weapon. that may sound colorful, but this is the greatest economic crisis that any of us, and i'm looking around this floor, have experienced in our lifetimes. and i'm closer to experiencing the last one than any of you on the floor. but none of us, even at my stage, were alive during the great depression. so this is the first time that we have experienced such a deep, deep recession. but i will tell you, the eight million americans whose jobs it took away, i think it was -- think -- away think it was a mighty

doing what we do and when our records were subpoenaed by the re-election committee and a lawsuit, mrs. graham i am going to take possession of your notes. >> can you see the picture of furred getting out for limousine going into the d.c. jail? the point is, she was willing to take the responsibility for the institution. does that suation exist today? i think much less so. i think also we have a media environment in which we are losing to some extent because of the pressure of speed, manufactured controversy, gossip, the web partly, which i think is a great reporting platform b we also need as removed to these platforms to bring to them the standards of the desk of the old journalism. >> very quickly in rebuttal, i am saying they're very good examples of journalism and the spirit is there. if you -- if you used to have a staff of 200 and you now have a staff of 100 which is what happens to a lot of newspapers, they cannot do the digging and in-depth reporting but i think the vitality is their and my argument is that the people on the business side need to find that business model and things wi

graham. >> thank you, mr. chairman. >> and then we will, ju for planning purposes, senator graham, we'll go for you. >> okay. >> and then we'll go to senator schumer and then we'll take a short break. does that work for -- >> that's good. >> okay. >> senator graham. it's all yours. >> thank you. >> so far has the hearings been phat you thought they would be? >> i'm not sure i had -- i'm not sure i exactly pictured it. >> let's try to go back in time and z say you're watching these hearings and you are critical of the way the senate conducted these hearings. are we improving or going backward? and are you doing your part? >> i think that you've been exercising your constitutional responsibilities extremely well. >> so it's all those other guys that suck, not us. >> i don't think -- >> it's all those other witnesses that were too cagey. all right. fair enough. now, do you know greg craig? >> will say one thing, senator graham. >> please. >> it just feels a lot different from here than it felt from back there. >>

mr. thomas. we will now move to senator graham. >> thank you very muc, mr. buffett and mr. mcdaniel said, per your insightful comments. mr. mcdaniel, you said that inc. the research into its rating process. e chart that is about to be -- ced to g >> can we place it where it was before? >> be real time keeps ticking. >> newborn. >> this chart indicates -- move on. >> this chart indicates securities that were rated by moody's. the blue and the red or the cdo's. the first of the yellow boxess in october 2006. it was something south of $1 biion issued. when a new pea research service issued a report -- moody's research service issued a report saying that the u.s. housing market downturn is in full swing due to single-family housing production, house prices are falling at an increesing -- in a increasing number of areas. the word crash is used to describe the situaon in areas of the country that represented about half of the outstanding mortgages. how was that information inc. and to the ratings process is of the new peace? >> the analysts and ratings -- moody's. the analyst and

mr. thomas. we will now move to senator graham. >> thank you very much, mr. buffett and mr. mcdaniel said, per your insightful comments. mr. mcdaniel, you said that inc. the research into its rating process. the chart that is about to be -- ced to g >> can we place it where it was before? >> be real time keeps ticking. >> newborn. >> this chart indicates -- move on. >> this chart indicates securities that were rated by moody's. the blue and the red or the cdo's. the first of the yellow boxes is in october 2006. it was something south of $10 billion issued. when a new peace research service issued a report -- moody's research service issued a report saying that the u.s. housing market downturn is in full swing due to single-family housing production, house prices are falling at an increesing -- in a increasing number of areas. the word crash is used to describe the situation in areas of the country that represented about half of the outstanding mortgages. how was that information inc. and to the ratings process is of the new peace? >> the analysts and ratings -- moody's. the

mr. thomas. we will now move to senator graham. >> thank you very much, mr. buffett and mr. mcdaniel said, per your insightful comments. mr. mcdaniel, you said that inc. the research into its rating process. the chart that is about to be -- ced to >> can we place it where it was before? >> be real time keeps ticking. >> newborn. >> this chart indicates -- move on. >> this chart indicates securities that were rated by moody's. the blue and the red or the cdo's. the first of the yellow boxes is in october 2006. it was something south of $10 billion issued. when a new peace research service issued a report -- moody's research service issued a report saying that the u.s. housing market downturn is in full swing due to single-family housing production, house prices are falling at an increesing -- in a increasing number of areas. the word crash is used to describe the situation in areas of the coury that represented about half of the outstding mortgages. how was that information inc. and to the ratings process is of the new peace? >> the analysts and ratings -- moody's. the analys

graham. >> thank you, mr. chairman. >> and then we will, just for planning purposes, senator graham, we'll go for you. >> okay. >> and then we'll go to senator schumer and then we'll take a short break. does that work for -- >> that's good. >> okay. >> senator graham. it's all yours. >> thank you. >> so far has the hearings been at you thought they would be? >> i'm not sure i had -- i'm not sure i exactly pictured it. >> let's try to go back in time and z say you're watching these hearings and you are critical of the way the senate conducted these hearings. are we improving or going backward? and are you doing your part? >> i think that you've been exercising your constitutional responsibilities extremely well. >> so it's all those other guys at suck, not us. >> i don't think -- >> it's all those other witnesses that were too cagey. all right. fair enough. now, do you know greg craig? >> i will say one thing, senator graham. >> please. >> itust feels a lot different from here than it felt from back there. >> i

graham commission. what changes should be made for the future. >> thank you mr. chairman. good to see you. i wanted to ask you a couple of questions. just to make i am clear about them. many of thendations apply to floating vessels. but i think this could potentlly leave out about 1/3 of what are called mobile offshore drilling units. only one third of those would be considered floaters so, are you consering that definition and have a tighter consideration and make sure we don't have a loophole or is something i missing about the difference between these facilities? maybe mr. black is better to answer this. i don't know. >> let me just say we are aware of the distinction and the moratorium in place applies deep water drilling. the notice that i tald about earlier that impose a safety requirements for dri occur is now in the shallow water waters i will have steve black comment on the concept of the vessel. >> senator, thank you. if i understand your question correctly, theres usually a different risk profile. the recommendations areintended to cover all of the mobile drilling rigs. we may n

graham. >> thank you, mr. chairman. congratuations. i think it will be a good couple of days. i hope you somewhat enjoy it. and i think you will. like everyone else, i would like to acknowledge the passion of senator byrd, who was a worthy ally and a very good opponent when it came to the senate. my association with senator byrd during the gang of 14, i learned a lot about the constitution from him and as all of our colleagues remember, just a few years ago, we had a real -- real conflict in the senate about filibustering judicial nominees and senator byrd and a few other senators who came up with the extraordiiary circumstances test that would say that filibusters should only be used in extraordinary circumstances because elections have consequences and senator byrd was one of the chief authors of the language, defining what an extraordinary circumstance was. i just want to acknowledge in his passing is going to be as will to the senate. and the thing that we all need to remember about senator byrd is that all of us are choosing to judge him by his complete career. and histor

graham. >> thank you, mr. chairman. congratulations. i think it will be a good couple of days. i hope you somewhat enjoy it. and i think you will. like everyone else, i would like to acknowledge the passion of senator byrd, who was a worthy ally and a very good opponent when it came to the senate. my association with senator byrd during the gang of 14, i learned a lot about the constitution from him and as all of our colleagues remember, just a few years ago, we had a real -- real conict in the senate about filibustering judicial nominees and senator byrd and a few other senators who came up with the extraordinary circumstances test that would say that filibusters should only be used in extraordinary circumstances because elections have consequences and senator byrd was one of the chief authors of the language, defining what an extraordinary circumstance was. i just want to acknowledge in his passing is going to be as will to the senate. and the thing that we all need to remember about senator byrd is that all of us are choosing to judge him by his complete career. and history

graham? >> thank you, mr. chairman d thanks to each of you for your very illuminating testimony. i amgoing t start by going back to a comment that was made by president jer and his generous introductory comments, which he said that america could not turn away fr risk and continue to be a great nation. i agree with that, but wth a couple of caveats. one, is risk to whom? what seemsto have been happening is that those who were creating the increasingisk were also finding ways to hand that risk of to other entities, those other entities might be the montana pension board. they might be the united states government, and they have turned out to be the people of america in terms of lost homes, lost jobs, and lost all. the second caveat is that risk is a different concept of recklessness. one of the things, and i'm going to probe, is the recurring adam in american society where we see a bright warning lights going off, which are ignored ntil they mature into a catastrophe. we have one of those happening today in the gulf of mexico where there were warning signals that that type of extra

graham commission. what changes should be made for the future. >> thank you mr. chairman. good to see you. i wanted to ask you a couple of questions. just to make i am clear about them. many of the rations apply to floating vessels. but i think this could potentially leave out about 1/3 of what are called mobil offshore drilling units. only one third of those would be considered floaters so, are you considering that definitio and have a tighter consideration and make sure we don't have a loophole or is there something i am missing about the difference between these facilities? maybe mr. black is better to answerthis. i don't know. >> let me just say we are aware of the distinction and the moratoum in place applies deep water drilling. the notice that i talked earlier that impose a safety requirements for drillwill our w water waters i will have steve black comment on the concept of the vessel. >> senator, thank you. if i undstand your question correctly, there usually a different risk profile. the recommendations aintended to cover all of the mobile drilling rigs. we may need to get more i

mr. chairman. >> the sound i think is now off. i think they are trying to fix it. so we will all have to talk much louder during this interim period. senator graham>> good morning. nothing wrong with it here. thank you both. general petraeus, what would happen if in the future the taliban took over part or all of afghanistan from our national security perspective? what would be the consequence? [ inaudible ] >> some of those will make their way back into afghanistan and enjoy sanctuary as they did prior to 9/11. [ inaudible ] >> on a scale of one to ten, one being not to significant, ten being very significant, what would taliban control of part or all of afghanistan mean to us, national security wise? [ inaudible ] >> closer to ten than one? if we were not there now, what would happen? [ inaudible ] >> i think the taliban would take control of certain areas of the country, othersing might evolve into war lordism and you might end up with a couple of different civil wars going on between different ethnic groups, even sectarian groups and some war lords overlayed on top of that. >> this is june 2010, are we winning? >> winning to a counter insurge