instead, the pass back from omb came right at the time of the announcement of the president. and as you go, the president had to go down to the kenneday space center ensign change some things because of the mistakes that were made in the rollout, which unfairly characterized the president as an opponent of human spaceflight, which the senator knows him to be an avid proponent. so, dr. holdren i want to ask you, when omb came back, did oab consult you in the final determinations of the nasa budget? when i say you, i am talking about your organization. >> the answer to that in brief is yes, absolutely, but let me answer the question in a little more detail. as you know senator nelson this was not an ordinary year. it was the year in which a determination was made after receipt of the augustine report that really fundamental changes in the priorities and the structure of nasa's's human spaceflight program we are going to be necessary and of necessity, the process of figuring out what those would be had to be integrated with the fy2011 budget process. and that is the way it was d

if i could get myself into the head of omb. $50 million appropriated in fyi nine and 30 -- fy09. >> i had long talks with peter roraback. when you do -- the money is all accounted for. you cannot say that you have to get it down to zero before you get more money as your negotiating contracts and figuring out what to do with it. that is the stupidity of what they are saying. they know that is not good budgeting. they know that you should not let something go to zero and then start all over again. >> i will be happy to really engage with omb on this. there is another point that your question has ended that is very important for the department as a whole. that is being able to look at how grants are down -- down in a way that is your to your to your. really look at them structurally in terms of how cities and states really operate. that is something that i have asked our folks to begin to look at. the current methodology may not be the best kind of methodology, but i will be happy to read engage omb. >> can you help us? >> i will

informed and listen to you and give you latest updates in the campaign, take out your old, and check omb to 77007. >> reporter: in 2010, officials know they have to do more than just press the flash. to get your attention, they're expanding their use of social media, from facebook to twitter. >> what you have seen in this campaign to the degree that had never happened before, is people going online to learn about their candidates records. >> reporter: from his laptop in the campaign office of mack ehrlich. he is up the guy who updates media's sites including bob ehrlich.com. >> reporter: and he promotes the republican's campaign appearances. bob ehrlich monitors the instant feed back. >> go, ehrlich, go. >> it's fascinating ta there's that many people tuned in to what we're doing every day. >> reporter: ehrlich says his campaign social media out reach is not just for younger voters. >> a lot of folks my age and older are commun communicating n facebook. >> reporter: an expert at social media says the candidates should not rely too heavily on new technology. >> just having a facebook page

instead, the pass back from omb came right at the time of e announcement of the president. and as you go, the president had to go down to the kenneday space center ensign change some things because of the mistakes that we made in the rollout, which unfairly characterized the president as an opponent of human spaceflight, which the senator knows him to be an avid proponent. so, dr. holdren i want to ask u, when omb came back, did oab consult you in the fal determinations of the nasa budget? when i sa you, i am talking about your organization. >> the answer to that in brief is yes, absolutely, but let me answer the question in a little more detail. as you know senator nelson this was not an ordinary year. it was the year in which a determination was made after receipt of the augustine report that really fundamental changes in the priorities and the structure of nasa's's human spaceflight program we are going to be necessary and of necessity, the process of figuring out what those would be had to be integrated with the fy2011 budget process. and that is the way it was done. th

first of all, not only the cia but leon panetta is a-- is a gifted, experienced former omb director, former white house chief of staff, one term member of congress, house chairman, you know, leon panetta knows, not simply where the bodys are but where they are buried and who buried them. i think it was tough. and the white house was-- i can't understand why they did it. >> lehrer: they didn't give him anyway out. >> no way out and a half an hour before his meeting with the president, where hess resignation was to be demanded, they released the-- leaked the fact they had been interviewing a couple of weeks his successors. that just is not a way of inspiring loyalty. >> lehrer: yeah. >> i do agree with that. and this is not exactly the first time they've been unnecessarily tough on people. maybe they want to show some muscle or maybe it is just in the flow of things things got confused and lost am but it is true that they have a record now of being unnecessarily tough. and maybe that's just chicago politics, i don't know. >> lehrer: okay. well, look, tuesday's primaries. let's move to

and may live to sell their stock for-profit come even though the taxpayers they lose cbo $36 million, omb50 million. is that correct? >> well, let me just-- if in ct the preferred stock interest loses money it is unlikely they are going to get anything in the way of balance sheet is construct did, the preferred stockholders are going to get paid first before the common stockholders get anything. it is true that the stock is trading, common state-- stock is trading. no dividends are being paid on that sto, so it is a bet on the company's future. >> given it is trading for $33 a share today, there must be a lot of people, a lot of smart people, a lot of analysts who ink the current stock will be repaid. >> that would be the inference you withdraw, yes. so that is good news for the taxpayer. the common stock is suggesting preferred stock is money good. >> okay, but te equity, the pre-bailout equity was not wiped out in the steel. >> it was substantially diluted. substantially diluted but not wiped out. >> if i may though, you have to take the price of the common markets that. the 80% of the

and may live to sell their stock for-profit come even though the taxpayers they lose cbo $36 million, omb50 million. is that correct? >> well,et me just-- if in fact the preferred stock interest loses money it is unlily they are going to get anything in the way of balance sheet is construct did, the preferred stockholders are going to g paid first before the common stockholders get anything. it is true that the stock is trading, common state-- stock is trading. no dividends are being paid on that stock, so it is a bet on the company's future. >> given it is trading for $33 a are today, there must be a lot of people, a lot of smart people, a lot of analysts who think the current stock will be reid. >> that would be the inference you withdraw, yes. so that is good news for the taxpayer. the common stock is suggesting preferred stock is money good. >> okay, but the equity, the pre-bailout uity was not wiped out in the steel. >> it was substantially diluted. substantially diluted but not wiped out. >> if i y though, you have to take the price of the common markets that. the 80% of the stock t

over the past 36 hours from the president and the chairman of the federal reserve and the head of the omb and the treasury secretary, what is your sense of where they see the country right now economically? >> well, they both see, all of the above see the economy as growing and becoming very positive in all the indicators. the same thing is shared by members of the business council. they see jobs beginning to increase, they see inflation staying down and interest rates are down and the overall feeling is that the consumer confidence is growing and when consumer confidence grows, people will start to spend which will be attra attractive to the economy. >> are you seeing the same things in your businesses? your company is the largest franchisee of marriott hotels, you have 100 auto dealerships. those are two economically sensitive parts of the economy. are you seeing the same things? >> we are one of the largest owners of marriott franchise and we are $1 million in auto sales. in the hotel business we're seeic occupancy stabilize and rates are beginning to come back, but the pricing power i

in fact, he was the last guy running omb when it there was balance in the budget and he knows about housings now at revolution health. mr. raines, good it have you with us. >> thank you. >> i want to get a sense of what the room was like. i was watching the speech here. after the speech, the president spent some time talking to federal executives include, it was not interrupted by applause. >> that's true. the president gave a very serious talk and i think he wasn'tx pecting to get a big reaction. he was talking about why his policies made sense to an audience that had multiple experiences and they have been beat up a little bit and support things that the administration does. i think the administration is still working out its arrangements with the business community. >> does business feel picked on by the business administration? >> i think the answer would be yes that the administration scored political points at their expense. of course, a lot of the political points were earned and the president is not as though he is making this up about the problems in the business community, but i t

. >> the ceo says we, meaning that taxpayers, will lose $36 billion the omb since delete clauses 50 billions there's a spread. can you help me close the gap to understand and how you can pay back evrything and no one says to the contrary. >> i would love to be the to buy back everything we go and investors can take a 50 billion-dollar loss. i would be able to if there would be tomorrow and nobody would because we are a strong vibrant company with a lot of money. i can't tell how they do the analysis but i'm confident you'll get your money plus a profit. >> and specifically what is the exit strategy? when you come up one of you have to write a one-page exit strategy to pay back the taxpayers what would it be? >> the first goal was make sure we pay back the federal reserve's so we are working hard to monetize the assets we have and we continue to look at other strategies and different points of modernization so the keys to pay back the $52 billion. once that is paid back an the fed is covered keep in mind we are doing that as quickly as we can knowing that we of the 2013 we still would like to

but i do say that, both that omb and homeland security, they should have seen this and caught it. my hope is that the present -- no one can doubt his 74 new york and his understanding of the debt that we are under. -- no one can doubt his sympathy for a new york and his understanding of the threat that we are in there. thank you, everybody. >> i may be cutting its in little early. >> [unintelligible] >> [unintelligible] >> that was the first question i asked her, the concerns about the position of privilege. she answered it very honestly. she is supportive of the men and women who are fighting to protect us and supportive of the military as a whole. i do not feel her judicial philosophy will be hurting the men and women who served. clark's [unintelligible] -- >> [unintelligible] >> i am not sure who is introducing her. i am waiting for [unintelligible] i am looking forward to it being fair and open and respectful. those are my three top priorities. i am one to learn about her. there is not much then you can do -- there's not much of that you can do in a three-minute meeting. >> th

you failed to say that this should come after zero in these amidst a report on tarp loises -- after omb release is a report on top will -- tarp losses in 2013. why did i think they did that rather than 2010? >> i suspect that they wanted to be confident that the financial industry was in a stronger point that the fee would come into effect, and it is in a stronger position than anyone expected. >> with they also want to know more about -- what they want to know more about how much the losses would be after three years? >> yes, we are early and we are early because we thought it was the responsible painted it. >> can you understand why a look suspicious that the administration is submitting a plan now when the tarp losses are not fully known? can you understand why this looks like a political stunt to distract the public from a very unpopular tarp program and a transparent attempt to make it look like the administration is not in the back pocket of wall street? >> i cannot understand that. we're doing the responsible thing, which is in the face of a crisis that caused enormous damage to

peter is a colleague of mine and his unique take on privacy is -- he used to be on the omb.now you are back 12 years later. i am sure they were important, interesting things. [laughter] but i respect your privacy. [laughter] so my question for you is very simple. in the last 10 years, a lot has changed, technology, consumer environment. from the regulatory side, what has changed? >> thank you, andrew. andrew has been leading a lot of efforts at the white house to think through these things. one thing that is the same is the role isntia is playing today, reviving a role that it played in the 1990's. one of my first talks had to do about the institutional structure is going forward. seeing revived attention here incomers is one thing that is the same as before. one thing that is different is the number of people who have had a chance to work on these issues. in 2001, one grouwithin compania group of people who work on expertise. one way to frame the change, i think there are two compelling vision within the obama administration and one is how useful data is and empowers indivi

you failed to say that this should come after zero in these amidst a report on tarp loises -- after omblease is a report on top will -- tarp losses in 2013. why did i think they did that rather than 2010? >> i suspect that they wanted to be confident that the financial industry was in a stronger point that the fee would come into effect, and it is in a stronger position than anyone expected. >> with they also want to know more about -- what they want to know more about how much the losses would be after three years? >> yes, we are early and we are early because we thought it was the responsible painted it. >> can you understand why a look suspicious that the administration is submitting a plan now when the tarp losses are not fully known? can you understand why this looks like a political stunt to distract the public from a very unpopular tarp program and a transparent attempt to make it look like the administration is not in the back pocket of wall street? >> i cannot understand that. we're doing the responsible thing, which is in the face of a crisis that caused enormous damage to our

but i do say that, both that omb and homeland security, they should have seen this and caught it.- no one can doubt his 74 new york and his understanding of the debt that we are under. -- no one can doubt his sympathy for a new york and his understanding of the threat that we are in there. thank you, everybody. >> i may be cutting its in little early. >> [unintelligible] >> [unintelligible] >> that was the first question i asked her, the concerns about the position of privilege. she answered it very honestly. that she is supportive of the td men and women o is introducing her. i am waiting for [unintelligible] i am looking forward to it being fair and open and respectful. those are my three top priorities. i am one to learn about her. there is not much then you can do -- there's not much of that you can do in a three-minute meeting. >> thank you, senator brown. we have to go to vote. thank you. >> have you been briefed all [unintelligible] >> well, good morning, everyone. it is a pleasure to have you here with us. before i begin, i want to introduce the wonderful people on the sta

he's also occupied senior positions at both cbo and omb as well as within cms itself.hose of you who around the country and don't know what all those things me, go to our web site and it explains all the acronyms. mark, thanks for being with us. >> sure. it will be some overlap in comments that you've heard so far, so, with my inflection of my voice or with gestures i'll try to make it sound different. [laughter] so the first thing i would say is that the commission has, there was a framing of the problems at the beginning of this and for several years now the commission has maintained that fee-for-service incentives are, fee-for-service is part of the problem. that it is not designed to coordinate care. it does not focus on quality, volume is what it rewards. and for many years we've been pushing for different strategies for reimbursing providers in medicare that would promote focus on quality and try to be more judicious in the use of resources. and many of the ideas that are being contemplated now, medical homes, bundling strategies, acos, more focus on primary care