is this all that paul volcker wanted? when he said this bill with some of its composite "took some of the purity -- with some of its compromise took some of the purity of what i wanted to see." >> it's very true to all of the things that paul volcker and the president said at the beginning were going to be essential, because what it does is, again, it puts in place a set of much stronger basic constraints on risk-taking across the financial system and he was obviously decisive in helping shape this and helping explain it, helping sell it. the volcker rule is an important part of it. what that rule does is a simple thing. it says if you are a banker, you own a bank, we don't want you taking advantage of the station, of the privilege of being a bank and using that to subsidize a bunch of risky activity that could imperil the stability of the system. that's a simple, just constraint and the bill achieves that. >> charlie: let's take a look at that. so deposit-bearing banks now will not? or will be able to engage in proprieta

that's one of the things paul volcker and others have said.we need to separate proprietary trading and certain risk-taking with traditional deposit-bearing accounts. >> correct. that's right. and i think paul volcker has a very good point which is that you don't want this risk taking to be under the umbrella of a sort of deep-pocketed parent that can bail you out if you go wrong. part of the reason why hedge funds did so well is that they're typically small entrepreneurial boutiques where the managers have skin in the game, their own money is in the fund. so if they mess up, they're not going to be bailed out by the government and it's their own money which is on the line. when you put a hedge fund in five golden sacks or inside some other big institution there's a deep pocketed sugar daddy there might bail you out. >> rose: but wasn't that, in fact, the hedge fund run by bear stearns the first indication the subcrime crisis was on its way? >> you're exactly right. in 2007 the best hedge funds went wrong and they were bailed out by the parent.

rates, deregulation, and trade opening, combined with this inflationary monetary policies unr paul volckerntrast, president obama and congressional democrats have pursued anti-growth policies at have hindered this recovery. businesses are slow to hire because they fear higher taxes. there is just telling regulation and a dysfunction in washington that is in geologically driven and increasingly anti business. instead of encouraging business, president obama has given entrepreneurs reason to worry. businesses are not reluctant to hire because they are waiting to see what washington will do for them. they are reluctant to hire because they are afraid of what washington will do to them. ominously, president obama and congressional democrats are insisting on reckless increases in congressional spending now and in the future. this puts the aaa reputation of+ the u.s. government into jeopardy for the first time since alexander hamilton resurrected the finances of the united states after the revolutionary war and put us on tthe road to becoming an economic superpower. the congressional budget offi

standpoint, which is lowering the tax and regulatory burden, getting the inflation rate down with paul volcker, and really encouraging an upbeat entrepreneurial country -- this is what we need. i don't recall ronald reagan ever turning around and blasting a businessman or a banker for making too much money or living high off the hog, that kind of rhetoric. i never recalled that. reagan was uplifting. he said, here's the problem, here is the solution. he was a man devoted to more entrepreneurship in the private sector and not the expansion of government. so, my great hope, unlike the call, is while reagan has passed a way, his ideas will move on. host: juanita joins us from cincinnati, ohio. the democratic column. caller: hi. i am sitting here listening to this man. i have a journalism degree from ohio state. and i never had such god awful in my life. but i have two statements to make. no. 1 -- we had something in school called content analysis. in the eight years when mr. reagan was president -- here in cincinnati -- his policies designate -- devastated my people. you could argue that until yo

you can see the hog with the former fed chief paul volcker. that is elizabeth warren standing behind the president. the story today -- larry bird and from the business roundtable -- table said the work that the president to sustain economic growth and job creation. the article tells us the first visible results of the new law may come in about two years, the deadline for the consumer regulator to create a simplified disclosure form for mortgage loans. that is from the president yesterday. on fannie and freddie reform, this is from "the financial times" today. pittsburgh, good morning to you. howard on our democrats line. caller: two things. the first thing is, can you do a "washington journal" evening edition? your program is so popular. i wonder if you could go out at 7:00 a.m. at not -- at night and do a "washington journal" evening program. host: our problem with being consistent about it is that we guarantee live coverage of the house and senate. it would get interrupted many nights in the middle of the week. that is why we started and sto

it will help enforce the paul volcker rule which prohibits proprietary trading and limits investing in hedge funds and private debt refunds at banks and bank holding companies. it will have a role in supervising systemically important financial utilities such as clearing houses that are important to the stability of the payment system. moreover, the fed will continue to play a very key role in helping the economy recover from the effects of the financial crisis. while the economy is growing, it is not growing fast enough to help millions of americans who lost their jobs as a result of this crisis. civilian unemployment rate declined from may to june. it remains far too high. business investment demand as measured by data on fixed nonresidential investment remains subdued because of excess capital -- excess capacity. while the headline price indices continue to increase about 2%, you are on your other measures suggest we are moving toward price deflation. in may the core cpi increased by just 0.9%. is evident the economy is going to need all the help the fed can provide over the coming

standpoint, which is lowering the tax and regulatory burden, getting the inflation rate down with paul volcker, and really encouraging an upbeat entrepreneurial country -- this is what we need. i don't recall ronald reagan ever turning around and blasting a businessman or a banker for making too much money or living high off the hog, that kind of rhetoric. i never recalled that. reagan was uplifting. he said, here's the problem, here is the solution. he was a man devoted to more entrepreneurship in the private sector and not the expansion of government. so, my great hope, unlike the call, is while reagan has passed a way, his ideas will move on. host: juanita joins us from cincinnati, ohio. the democratic column. caller: hi. i am sitting here listening to this man. i have a journalism degree from ohio state. and i never had such god awful in my life. but i have two statements to make. no. 1 -- we had something in school called content analysis. in the eight years when mr. reagan was president -- here in cincinnati -- his policies designate -- devastated my people. you could argue that until yo

it will help enforce the paul volcker rule which prohibits proprietary trading and limits investing in hedge funds and private debt refunds at banks and bank holding companies. it will have a role in supervising systemically important financial utilities such as clearing houses that are important to the stability of the payment system. moreover, the fed will continue to play a very key role in helping the economy recover from the effects of the financial crisis. while the economy is growing, it is not growing fast enough to help millions of americans who lost their jobs as a result of this crisis. civilian unemployment rate declined from may to june. it remains far too high. business investment demand as measured by data on fixed nonresidential investment remains subdued because of excess capital -- excess capacity. while the headline price indices continue to increase about 2%, you are on your other measures suggest we are moving toward price deflation. in may the core cpi increased by just 0.9%. is evident the economy is going to need all the help the fed can provide over the coming

combined with the disinflationary monetary policies under paul volcker and alan greenspan, reagan laid the foundation for two decades of prosperity. in contrast, president obama and congressional democrats have pursued largely anti-growth policy that have hindered this recovery. businesses are slow to hire because they fear higher taxes. they fear of regulation, and a dysfunctional washington that is ideologically driven and increasingly anti-business. president obama and this congress have given of entrepreneur is a reason to worry. businesses are not reluctant -- businesses are not reluctant to hire because they're waiting to see what president obama will do for them, they are reluctant because they are waiting to see what president obama will do to them. the reputation of the u.s. government is in jeopardy for the first time since the treasury secretary alexander hamilton resurrected the finances of the united states after the revolutionary war and put us on the road to becoming an economic superpower. the congressional budget office predicts that federal spending will grow to 25.2%

rates, deregulation, and trade opening, combined with this inflationary monetary policies under paul volckererity. in contrast, president obama and congressional democrats have pursued anti-growth policies that have hindered this recovery. businesses are slow to hire because they fear higher taxes. there is just telling regulation and a dysfunction in washington that is in geologically driven and increasingly anti business. instead of encouraging business, president obama has given entrepreneurs reason to worry. businesses are not reluctant to hire because they are waiting to see what washington will do for them. they are reluctant to hire because they are afraid of what washington will do to them. ominously, president obama and congressional democrats are insisting on reckless increases in congressional spending now and in the future. this puts the aaa reputation of+ the u.s. government into jeopardy for the first time since alexander hamilton resurrected the finances of the united states after the revolutionary war and put us on the road to becoming an economic superpower. the congressiona

rates, deregulation, and trade opening, combined with this inflationary monetary policies under paul volcker and alan greenspan. reagan laid the foundation for two decades of prosperity. in contrast, president obama and congressional democrats have pursued anti-growth policies that have hindered this recovery. businesses are slow to hire because they fear higher taxes. there is just telling regulation and a dysfunction in washington that is in geologically driven and increasingly anti business. instead of encouraging business, president obama has given entrepreneurs reason to worry. businesses are not reluctant to hire because they are waiting to see what washington will do for them. they are reluctant to hire because they are afraid of what washington will do to them. ominously, president obama and congressional democrats are insisting on reckless increases in congressional spending now and in the future. this puts the aaa reputation of the u.s. government into jeopardy for the first time since alexander hamilton resurrected the finances of the united states after the revolutionary war and