deregulated was imploding now this was finally being asked to act ironically the pitch was made by a republican treasury secretary henry paulson a former c.e.o. of goldman sachs in the years that that firm made massive profits in housing securitization and speculation. when the stews in order to avoid the continuing series of financial institution failures and frozen credit markets that threaten american family's financial well being the viability of businesses both small and large in the very health of our economy the question would government intervention fix the problem or make it worse would it reward the companies that profited from massive for on who would it lead to more fraud. treasury secretary henry paulson and fed chairman ben bernanke he began a push through what might be called the final plunder the real story was not widely know except soon into the on c.-span on thursday at about eleven o'clock in the morning the federal reserve noticed a tremendous drawdown of the money market accounts in the united states to the tone of five hundred and fifty billion dollars we were having an electronic

he and other republicans blasted the national debt. the treasury department says it topped $16 trillion last friday. the fed has poured in more than $50,000 worth of red ink for every man, woman and child in this country. get ready for another fight over the debt ceiling. that will be reached by the end of the year. >>> good news out of detroit, auto sales kicked into overdrive. demand for full-size pickups jumped 16% helping make august the strongest month for auto sales in three years. as dean reynolds reports, the increased demand means businesses are more confident the economy is recovering. >> 5 million americans either build or sell cars and trucks and workers showing up for the midday shift at gm's plant in arlington, texas, were smiling. >> that's wonderful. i hope they keep going up. everybody here needs to keep working. >> sales growth in august exceeded predictions and led usually cautious company executives like kurt mcneill of gm to crow about their progress. >> when you think about all the jobs that we provide to the u.s. and the supp

. >> reporter: while 60% of democrats voted for the package, 67% of house republicans voted no. a frustrated treasuryd, a rescue package is vital to salvage the economy. >> we need it as soon as possible. and we're just committed to working with congressional leaders to get it done. >> the members who had been in a tougher re-election fight or are in one now, they voted no. anybody who hadn't been in a tough political fight in a long time, they voted yes. there is -- it was clearly a political vote for these guys. they know the election is coming in four weeks and they are very, very nervous about being for this thing. >> so wall street looks a whole lot different than it did four years ago. the stock market up, but what does that mean for the two men running for the oval office? coming up in our next hour, why president obama seems to be ahead, despite economic figures which indicate he should be way behind. here's what happened... i was talking to my best friend. i told her i wasn't feeling like myself... i had pain in my pelvic area... and bleeding that wasn't normal for me. she said i had to go t

the treasury department says it just hit $16 trillion for the first time ever. republicans and democrats continue to debate on ways to trim the deficit. 10 years ago but that was just over $6 trillion. fedex has slowing economic growth hurting demand. fedex it moves goods all over the globe and is a bellwether for the economy. automobile sales are picking up. pickup trucks carry u.s. auto sales to their highest level in years, led by ford. firliving social has a daily deal letting starbucks drinkers double their money. amazon may show off three new devices this week. more on that in the next hour. for now that's business news at bloomberg headquarters in new york. linda bell reporting for abc 7 news. back to you. >> thank you. 4:39, 76 degrees. >> it the day that the nfl fans have been waiting for, the start of the regular season. but it will be a little different on the field this time captioned by the national captioning institute --www.ncicap.org-- >> turning to the aftermath of hurricane isaac. the army corps of engineers says it's going to look into whether fortified d

republicans. we've written it up at the treasury and now i'll pass it through congress and no cherry picking, gentlementhat. he's delegated the construction to people up on the hill and that hasn't worked because congress is broken. >> i keep bringing up what the economist, a generally conservative publication said about mitt romney's 59-point economic plan. he said it reads like "fifty shades of grey" without the sex. paul ryan has a more detailed economic plan and bob reich and some of our studies indicate that it could end up costing jobs rather than creating the 12 million jobs over four years they think you were party to writing. >> yea. i don't see how that can be. the fact is that we have this massive deficit and this massive debt and creates uncertainy and makes people unwary about investing into the future and that makes everybody want to locate their activity offshore. governor romney wants to get ahead of the curve on those things and he's doing so in a balanced manner that broadens the base so it's not a big revenue reduction when it cuts the rate. so i think that having lower marginal rate

treasury. that's half a day's federal spending. if you think about it to let that happen not just the president but the republicans could have sent shock waves through the country couldn't have done things to the american economy that tim geithner the treasury secretary said would have been worse than the 1930s depression. >> in response to the book the white house spokesman says the president was absolutely commit to do preventing a default. >> oo time for your first degree weather update. maria molina has a gad start for us. >> it's another cool start across the northeast. not as bad as yesterday. yesterday we were talking about temperatures in the 40s across parts of northern new england. burlington a little warmer today. 61 in new york city. over in philadelphia looking at a current temperature of 59 degrees. we will be a little warmer in the afternoon hours. 79 for a high in new york city. as we head westbound minneapolis you will notice a major change today. yesterday you saw high temperatures in the 90s. today low 70s possibly a high of 70 degrees. we have a strong cold front in the upper midwest. a lot -- ahead of that still ho

. >> reporter: republicans have expressed some concern the current fed has been too cozy with the treasury and the obama administration. but that concern may fade after the election. >> i think you'd see a move away from that, so that's easy to say now, before someone has the reins of power. if... when they actually get the reins of power, they might actually prefer to have a more cozy relationship. >> reporter: the three men most often mentioned as likely romney fed picks are columbia business school dean glenn hubbard, harvard economist greg mankiw, and stanford economist john taylor. >> among those, i think mankiw would be the most activist and taylor would be the least activist. mankiw would perhaps be the most likely to consider q.e. right now; taylor would be opposed. >> reporter: taylor has criticized bernanke for the fed's aggressive bond buying and is considered an inflation hawk. while hawks may be popular during an election, actually picking one for fed chairman may not sit well with a new president concerned about boosting growth. for his part, hubbard has given few signals abo

george bush, republican president of the united states, hank paulson, republican secretary of the treasury, and ben bernanke, who i think is neither republican or democrat, but appointed by the republican -- mr. frank: he is republican but three times appointed by george bush to -- mr. hoyer: and came to us the country is in trouble, at risk of going into a depression. we need you to act. and who acted? the democrats in a bipartisan response to president bush. who walked away? 2/3 of the republican party, the president's party. 2/3 of them walked away, and as a result we failed the first time. we came back and added another 30 democrats, 172, and the republicans couldn't even get to 100 to support their own president to keep this country out of depression. ladies and gentlemen, two years ago, as the previous election approached, election unveiled the long list of pledges. their pledge to america reads, and i quote, plan to create jobs and economic uncertainty and make america more competitive. must be the first urgent domestic priority of our government. so first we offer a plan to get peo

treasury. that's it. now, that's half a day's federal spending. if you think about it, to let that happen -- not just the president, but the republicans -- could have said -- sent shockwaves through the country, could have done things to the american economy that tim geithner, the treasury secretary said would have been worse than the 1930s depression. >> sean: i mean, it's so dysfunctional. it's far worse than we ever said. here's what really bothers me in all of this. we have 25 million un- and under-employed americans. one in six americans in poverty. 49 million americans on food stamps in this country. we are really -- and nearly $6 trillion at the end of obama's first term in new debt. this is be a game anymore. this is about as serious a crisis as we have faced since the great depression and getting worse. >> and this was last year. they fixed it by postponing everything. >> sean: yeah. >> no cut, no tax increases. no sensible alinement of the federal budget. so we are going to in december or january be back in the same mess and the federal government is going to be in the position where there is no congressional authorization to pay its bill

republicans. we have written it up in the legislative language at the treasury.truction to the people on the hill and that hasn't worked very well because congress has been broken. >> i know you are responsible for part of the romney plan. i keep bringing up what part of the economist said about mitt romney's 59 point economic plan and said it reads like "fifty shades of grey" without the sex. when you look into that plan some of our studies over here indicate that it could end up costing jobs rather than creating the 12 million jobs over four years that i think you are party to writing. >> i don't see how that can be. the fact is that we have this massive deficit and massive debt and that creates a lot of uncertainty and makes people weary. we have the highest corporate tax on earth. that makes everybody want to locate activity offshore. governor romney wants to get ahead of the curve and doing so nat balanced manner so it is not a big revenue reduction. i think having lower marginal rates and certainty because you are ahead of the curve on the deficit i don't s

government is still bleeding money the treasury department says the budget deficit is at 16 trillion dollars for the first time ever republicansocrats still debate ways to trim the deficit the debt was just over six trillion just a few years ago ... the nonprofit group oxfam is warning about extreme weather link to climate change resulting in a sudden jump in food prices it says the cost of crops could more than double in one year ... mcdonald's has opened its first vegetarian restaurant it's going to be in india it will be in northern india pilgrimage sites for hindus and seek indians ... they are betting on the massive population and growing urbanization to boost sales with this vegetarian menu ... apple is staging a big event next week it will likely announce the new i phone version competitors and not standing by nokia launched two new smart phones with the microsoft windows software ... and 8.7 mega pixel camera wireless charging and screen sensitivity to detect gloved fingers ... amazon is also expected to show to new tablets and in e. reeder at an event tomorrow looking at the market stocks are trading higher with antic

george bush, republican president of the united states, hank paulson, republican secretary of the treasury, and ben bernanke, who i think is neither republican or democrat, but appointed by the republican -- mr. frank: he is republican but three times appnted by george bush to -- mr. hoyer: and came to us the country is in trouble, at risk of going into a depression. we need you to act. and who acted? the democrats in a bipartisan response to president bush. who walked away? 2/3 of the republican party, the president's party. 2/3 of them walked away, and as a result we failed the first time. we came back and added another 30 democrats, 172, and the republicans couldn't even get to 100 to support their own president to keep this country out of depression. ladies and gentlemen, two years ago, as the previous election approached, election unveiled the long list of pledges. their pledge to america reads, and i quote, plan to create jobs and economic uncertainty and make america more competitive. must be the first urgent domestic priority of our government. so first we offer a plan to get peopl

republican national committee holding about 10 times more cash. washington continues to pound businesses work more regulations. the treasuryore information with customers. the government saying that it is a way to fight money laundering. and it is another way for dc to clamp down on wall street. jack bogle is with us. would he think of this, jack? it is out of nowhere there. >> always good to be back with you, neil. it is a great idea. there is that tax dodge going on out there. the government in good conscience has to take action. i have a little bit in my new book called ideas for everything. ideas are a dime a dozen. implementation is everything. this is a good idea to get everybody out in the open. but the implementation is everything. as i look at this and read the complaints from all of these bankers, they are saying that we have all these little clients and so on. there is no reason in the world that i can think of where we can't limit the disclosure to a council decision. neil: when he think, a million older? >> i would say something much lower than that. $70,000, it could be 500,000. neil: but the people that hold

treasury department. that's 16 with 12 zeros. last week during the republicanntion, the gop displayed not one, but two big clocks up there. one kept a tally of the total national debt. the other showed how much it went up while the convention was in session. more than 8 1/2 billion dollars with a b. no sign of any debt clock here at the dnc. the democrats say the gop's proposed budget could ultimately kill millions of jobs. gerri willis is live this evening. it seems the democrats still tonight want to talk attention to the debt, even though congress people on both sides of the aisle had plenty to do with it. >> listen, $5 trillion of that came on obama's watch. that's one reason they're not looking at the numbers today. as soon as it ticked over to $16 trillion, you better believe that the romney campaign came out swinging, saying that obama left americans worse off than when he took office. now we also discussed it over the weekend, obama advisor david axelrod had this to say. >> the president's plan would do what the simpson bowles plan would do, cut the def

the republicans will retaliate by not raising the debt ceiling and we have a treasury fall on top oft. stocks won't like that. >> it's the exact opposite of supplied side economics. higher tax rates and easier money when the other idea was lower tax rates and tighter money and strong dollar. this is all wrong, i know it's wrong. >> we're checking every box on how many things can we do wrong list? >> i'm trying to find out how long the good news in the stock market lasts. i have to ask that question. >> i give it about 45 seconds, larry. >> you're coming on the radio this weekend. i will ask you this question all over again. >> my pleasure. >>> up next, fed gone rogue? it appears mr. bernanke will keep printing money until the cows come home. house members kevin brady and brad sherman will face off on all of this. >> they agreed to increase the policy of accommodation by purchasing additional agency backed mortgage securities. >> 90% probability of this happening. >> the markets are move, traders are reacting. >> the idea is quicken the recovery and help the economy begin to grow quic

hour strengthening the of america forums -- our first witnesses will be former treasury secretaries jim baker, a republican, and bob rubin, a democrat. they will be speaking to our group to contact us if you would like to attend. i don't know if they are going to specifically talk about this, but one of the ideas we are going to talk about is this idea that you can broaden the tax base by getting rid of deductions and credits and loopholes and making the whole thing simpler, bring in more revenue that way. that allows you to lower rates. if all you are doing is raising rates on the current rickety, inefficient system, that is not the best way to raise revenue. but this what the simpson-bowles commission recommended, what the rivlin-diminish th -- rivlin- deomenici commission recommended. there are elements of this in the ryan budget. this basic idea of broadening the tax base and then using that to raise revenue rather than just raising rates is, i think, something that the party might be able to get behind. again, we have to work out the details, but there is a lot of potential. ant: let's hear from tyron

republicans hate the defense cutses. democrats hate the nondefense cuts. and then you have the treasurygives leverage to whatever party doesn't win the presidential election. i think odds are pretty high we'll get an agreement. >> i think the best place for both sides to start is in education because i sit in a lot of conversations with republicans. i spend a lot of conversations with democrats, and they agree on a whole lot more than they disagree on. so it seems to me that both parties could come together and say okay we're going to put the partisan politics aside and look out for the interests of kids, and let's focus on education first. >> schieffer: do you know what bothers me about all this and what really worries me is i sit here and watch the congress. i know what you say is true. there are certain things that both sides want to do, but even now, this divide is so wide, even now, on things they want to do, they can't figure out how to do it. i mean, for example, a farm bill. we had the worst drought in this country since the dustbowl. yet, they could not figure out how to pass a

arranged for strauss and the former secretary of state, republican bill rogers, to sneak into the white house one evening. they went in through the treasury building, the underground tunnel. bob never wasn't through the tunnel before. he said it looked like there's a fallout shelters, beds on the walls, and he couldn't believe he was there. he went to the residents of the white house and advised the president on what to do about thee iran contra scandal, and he advised him to get rid of chief of staff, don reegan, and bring in howard baker, someone who could really have a lot of credibility in congress with both sides of the aisle, had a lot of relationships with the press, and nancy reagan took this to heart, and at the time, strauss didn't think the president was listening to him because the president disagreed saying i would never do that or fire him. that's what he said to hellen when he got home, and he got a call from nancy reagan saying i don't suppose there's any way you want to help us here in the white house, would you? he declined. he said it would not be a good idea for anyone involved, but several weeks later, don was fired a

the nation's debt has passed an historic milestone if treasury says the national debt has gone above $16 trillion for the first time ever. republicans are blaming democrats, especially president obama, for letting the debt reach this level. >>> today the group responsible for the metro silver line project is trying to repair his image with new ethics rules. the metropolitan airports authority has faced stiff scrutiny since a report this spring detailed lavish travel spending and questionable contracts. today it hopes to make those a thing of the past with new limits on what members can spend on plane tickets and meals and new rules on disclosing conflicts of interest so that contracts are not handed out to former board members. >>> 6:07. 77 degrees. the invitation from apple that may provide some foreshadowing of the next big release. >>> plus, a wet start to the day and it could get down right nasty. weather and traffic on the ones. >>> mcdonald's holding the meat. the burger giant's major change. heavy load in america. but mitt romney plan, a middle class to $2,000 more a year in taxes. multi-millionaires like himself hits the mid

the treasury department says the national debt has gone above $16 trillion for the first time. republicans are blaming democrats, especially president obama, for letting the debt reach that level. >>> in the day ahead, washington's airports authority will try to repair their image with new ethics rule. the group which is overseeing the metro silver line project has faced stiff scrutiny after a report detailed lav vir travel spending and questionable contracts. today they hope to make those things a thing of the past with new limits on what members can spend on plane tickets and meals and new rules on disclosing conflicts of interests so that corrects are not handed out to former board members. >>> a figure skating coach who competed in the 1988 olympic in calgary is behind bars in maryland. news4 spoke exclusively to his lawyer about the charges. 50-year-old gingrich teaches at the garden icehouse in laurel. new york police are not releasing a lot of details but they say the charges stem from an incident in lake placid last september. the city is a mecca for figure skating training and com

i want to show you a quote from treasury secretary timothy geithner on the night of july 29th when a proposal was passed in the house, the republicanwas john boehner's proposal to raise the debt ceiling but do so in two steps. the quote from timothy geithner is you can't veto and cannot be responsible for default. this is what he told president obama. woodward went on to write that anything had to be done to prevent what would have been a catastrophic default. he also writes that david pluf said if he caves, if the president caves to republicans on this issue it would have long lasting political repercussions and give republicans the upper hand going forward and they would be able to come back to this over and over again and force the president to go along with them. really interested behind the scenes stuff. the president never did have to worry about having to veto that because republicans dropped the demand that the debt ceiling be raised. what the president was trying to avoid was having to have the debt ceiling fight in the middle of this election year. >> a lot of these accounts, some of these were eyewitnessed by bob woodwar

market at least in a knee-jerk fashion, if you were to get a republican sweep, i think there will be this negative reaction in the treasury market that there will be a short honeymoon period where the expectation will be things will get done, we will see perhaps some uncertainty removed. when you remove uncertainty, that's not good for treasuries. dagen: not by any stretch of the imagination. in terms of what you have seen happening in the ten year, how much does the federal reserve get credit for that and what it is going to undertake because again you have charles plosser of one of the fed banks kind of shooting down what the central bank is doing? >> you know, i mean it is interesting, if you talk i think to chairman bernanke, he will tell you that the fed has played a role in bringing treasury rates down, but, you know, i think it is more of a safety trade, sort of coincidence that the fed had been buying at the same time this has been going on. qe 3, buying agency mortgage backed securities, not treasuries. dagen: right. would you add to treasuries here kevin? >> no, i don't think so. i think right here i'd probably

republicans last week at their convention in tampa highlighted the government's troubled finances with two clocks. they featured them prominently above the delegates. the treasury department released its latest balance sheet showing that the federal government owes more than $16 trillion. republicans pounced with statements, charts and speeches pointing to almost five 1/2 trillion dollars in debt during president obama's term. >> this is a serious threat to our economy. of all the broken promises from president obama, this is probably the worst one. because this debt is threatening jobs today, it is threatening prosperity today, and it is guaranteeing that our children and grandchildren get a diminished future. >> reporter: democrats who are discussing the $16 trillion debt point to president george w. bush's spending and tax policies, saying that, and a deep recession are a larger part of that 16 trillion than president obama's policies. >> putting tax cuts in the midst of two unpaid for wars and we increased the medicare prescription drug program cost and not paid for. so at the end of the george w. bush term he had doubled the deficit and debt of the united