so freddie mac and sallie mae and companies like this, the quasi-government organizations, they encouragedbody, encouraged the banks -- make the loan, regardless. the argument was if you do not make the loan to people who cannot afford it, you are discriminating against people. and all of us are guilty. we wanted to help everybody. there are no quick simple answers and we tried to create one. and you create a bubble and then the bubble collapses. >> we have had bubbles throughout history and they manifest themselves in various ways, whatever it may. and we will have them in the future. human beings, we get smarter about a lot of things in terms of how to produce things and become more productive. we do not get rid of the basic human emotions. and greed and fear will always operate the same way. thomas: you are dealing with a balance of greed and fear, greed and fear, greed and fear. and every decade or so, greed gets out of context and eventually leads to enough fear and something blows up, and we all just say, how could we have been so stupid? >> to go back and revise history and say i di

two years ago, remember, it was john mccain who pushed so hard with the fannie mae and freddie mac reform measures. he sounded that warning bell. people in the senate with him and his colleagues didn't want to listen to him and wouldn't go towards that reform that was needed then. i think that that alarm has been heard, though, and there will be that greater oversight again thanks to john mccain's bipartisan efforts that he was so instrumental in bringing folks together over this past week, even suspending his own campaign to make sure he was putting excessive politics aside and putting the country first. ms. ifill: you both would like to be vice president. senator biden, how, as vice president, would you work to shrink this gap of polarization which has sprung up in washington, which you both have spoken about here tonight? sen. biden: well, that's what i've done my whole career, gwen, on very, very controversial issues, from dealing with violence against women to putting 100,000 police officers in the street to trying togged something done about the genocide in -- that was going on in b

so we've moved way away from that. where the federal government lends through the small businesses administration and the department of energy and department of education and fannie mae and freddie macon so they can claim that the federal government is taking care of the nanny state comes up that they're taking care of everybody in the country. it doesn't add up in the country. you can't run that without a profit motive. >> you look at those after the wake of the recession, more businesses closing than being started and that was a big change in america and we're still seeing it. it's the lack of new business creation. i should ask you, how much of that, how big of that is that in the problem we're looking at. >> it's giant. the best spot for new workers to get a job is in a new business and the formation is-- is basically half of what it used to be. so that means there's just not jobs for young people coming into the economy. trump gave a millennial speech yesterday and said that, that my plan will be better for young people and he needs to say that more, i think. maria: we'll keep watching that. david malpass. as trump is looking at swing states of florida and large portion of cuba

freddie mac, j.p. l moore begun and board of the reserve. fall also organized this event so thank you paul for getting us all here, and al will start with you. >> thank you. >> thank you very much alex i hope i didn't scare anybody when i knocked my sign there punished trying to get to that and i got to it and i couldn't open it. another sign of age. >> liquidity problem. >> couple of minutes from now i'll be able to solve it. very good to be here. panelist struck it firmly in advance to try to hold our remarks to 8 minute which is made me think reminded me of mark twain famous should have been a shorter letter. any case i'll try to meet the requirement i know maybe a little late here. i believe that professor scott is a very good book as you all know well, a lot of books have been a number of books have been written from various perspectives about the financial crisis and several i would argue are really essential to appreciating the scope, nature, and significance of the event of ben bernanke and secretary paul's book. they all think helps us understand what it was like fo

freddie mac bought 270 billion subprime, 2005-2008. they were recklessly chasing the worst of the financial crisis. so the idea that this was not a fundamental breakdown of underwriting and risk judgments in our economy, a fundamental breakdown of enforcement and regulatory sanity, and that somehow what you want to do is lame this on what was a successful effort to help lower income and minority families become homeowners just does not come anywhere to being proven by any fax anywhere. on immigration, there is some kind of huge increase in people coming over the border? where is that fact from? that is not the case. we need comprehensive aggression reform to include more skill-based immigration, but we are never going to, nor should we do that, if we don't have confidence in immigration reform. as a people, it is terrible to have these people living here who have been here for a long time, living in the shadows, fearing their families being broken up. it's wrong, we should have a path to citizenship, and economically, when people have to live in the shadows, it is harder for them to pay taxes and get

freddie mac for more. >> how do you think of the issue of regulating the banks though? the regulatory component of his job? >> right. sonarrative i think of greenspan after the crisis when he went from hero to zero was that this guy got interest rates correct because inflation was about right. but the regulation blew up. what i discovered from that is that the fed did more on finance than we think. in 2001 it passed a whole new set of regulations on what kind of subprime mortgages would be allowed. . people don't know this. so it was amazing to see read greenspan debating this, the staff is excited. then the industry just roots around it. >> so when you think about how this -- how history will ultimately look upon alan greenspan, is he -- what'd you call him? hero to zero? or is he going to have a more nuanced -- >> i think he'll go from zero to ten. maybe eight, nine. he made one huge mistake at the end of his tenure. he did not raise interest rates fast enough. i'm talking 2004 and 2005. he was obsessed with targeting inflation. we learned inflation is not the biggest threat to economic growth. you want to target fin