meineke. >>> we're back with secretary of treasury, timothy geithner.e ask you about this, because i talked to a number of businessmen, and a lot of them said, can we tell geithner to stop beating up on business, tell obama to stop beating up on business? we feel like we're the villains, like we're being mistreated by congress. >> if you listen to what the president says, i feel at times the same way. we feel deeply that the strength of the economy depends on the work of the united states. their work at putting things at risk again. the president understands that. >> do you feel it fair to say that they've been battered unfairly? >> the financial system? >> let's talk about the financial system. >> the financial system has suffered a dramatic loss of trust and confidence largely because of the judgment many of the leaders of our institutions made in managing those institutions. the consequences of those choices were vae damavery damag to people across the country, and i think those firms will still have to do a lot to try to earn back the trust and conf

meineke. >>> and we're back with secretary of treasury, timothy geithner. let me ask you about this, because i talked to a number of businessmen preparing for this conversation. and a lot of them said, can we tell geithner to stop beating up on business, tell obama to stop beating up on business? we feel like we're the villains, like we're being treat like criminals. congress does it and they don't stand up. the businessmen are heroes. >> if you listen to what the president says, and i stay all the time, we deeply understand that the future strength of the economy depends on the work of the united states. the judges they make and their willingness to take risk again and put money at stake in the economy again. the president understands that. >> do you feel it fair to say that they've been battered unfairly? >> you're thinking about the financial system? let's talk about the financial system. again, the financial system has suffered a dramatic loss of trust and confidence largely because of the judgments many of the leaders of our institutions made in managin

and i just came to know that secretary timothy geithner with henry kissinger and mr. rubin, that is the kind of relationship between tutor and student that inspired me until i am thinking about teachers that i can name you are as great as they are and i found one. and this is when i was in northwest university in china, there was an old professor in that university. he was the very same in geology. in the 1920s -- founded by the conversation by allied forces who invaded china once i came to study in the united states, stanford university and the university of chicago called these universities. ladies and gentlemen, you may not necessarily know this person i am going to talk about, i just know his english name. he is very great, outstanding scientist. i can tell that the structure and composition, there are five schools of theory. the most popular school of these theories was advanced by the one that i mentioned. and he was initiator on the most popular, authoritative school on the structure of the shell of the earth. we were young and eager to learn from him and we as

we are joined by the secretary of the treasury, timothy geithner. thank you, mr. secretary. good to see you. give us your sense of the state of the american economy. there is some good news. a couple days ago there were jobless claims that were 100,000 worse than expected. what's going on? >> it is better, but we still face enormous challenges, and it's going to be a while before we're confident we're going to have any sustained recovery in place. but we have an economy falling at a remarkably rapid rate. we were losing jobs at 600,000, 700,000 a month. the rate of the declining economy is still dramatic and the rate of job losses still very significant. those are encouraging signs we're seeing improvement in the financial markets, more confidence by consumers, and businesses here and around the world, and that is due to the strength of the policies that this government working with the congress and countries around the world have put in place. the policies have been

timothy geithner says absolutely. sure, we can do that. he gives him a temporary one-year waiver of the rule, which, by the way, just, you know, just meant that he could not only hold the shares but also so that he could serve on the board of directors, oh, and also, mr. friedman can also now stay on the board and buy an additional 52,000 shares of goldman sachs. in the meantime, he makes $3 million. now, just so you know, goldman sachs, they have learned their lesson. i mean, look at them, they're profitable now. sure, they took all this money, and they took this money over are here, sure. sure, they took your money. they paid it back, you know, through tarp, but this was their money, from a.i.g. and they have learned their lesson, no more derivatives, no more c.d.o.'s or anything like that, and they won't really do oil speculation -- as much as they were, i'm sure, but they have a new derivative. it's called the green environment. they have just purchased 10% of the chicago climate exchange, and $1 billion of carbon assets. that's fantas

timothy geithner and ben bernanke are now in a power struggle over who should be the country's top consumer watchdog. >> our proposal is designed to preserve the opportunities for innovation. many of the practices of consumer lending gave innovation a bad name. what they claim was that innovation was often just predation. >> bernanke once responsibilities tuesday with the central bank, while timothy geithner wants to create a new consumer protection agency. the dow jones is giving back some of its gains and is down 27 points, but still holding above 9000 right now. the nasdaq is currently down 19 points. >>> a new program -- county employees have until september 18 to apply for a reduced interest rate to buy their first home within the county. so far, about 10 people have closed on homes. there are currently about 2500 vacant homes in prince william county. >>> we turn to the weather now on this friday. you can tell the humidity is hanging around and so are the storm clouds, so what are our chances for heavy rain? another cloud night like last night? >> we could have a couple storms. -- ano

reporter: neither does he, insisted treasury secretar timothy geithner >> innation in products-- that's verimportant to us. this is one of the great strengths in our syste we just let it g a little too far away from any bac sense of gravit weeed to bring that balance back a little bit. >> reporter: but every regator inown is shooting at some aspect of the new agency, calling it powers too broad or its structure o insular. testifying lat, federal reservchairman ben bernke, f.d.i.c. cef sheila bair and others we all asked whether they would take backome of the powers the ainistration wants to take from them and gi to the new agen. as fra predicted, they all agreed. >> yes. >> reporter: thaunited opposition is one reon treasury sectary geithner wants to movby the end of the year on regulatory reform. bankers, brokers andven regulators allave reasons to rest change. the adminiration fears reform will only t harder if it slips into next year. darren gersh, "nightly biness repo," washington, d.c. >> suzanne: stronger tn expected cporate earnings have helped undern stocks this week and push th

today, it sent treasury secretary timothy geithner to capitol hill to sell lawmakers on a new consumer financial protection agency. but geithner ran into opposition from many of the people he works with every day. darren gersh explains. >> reporter: today's hearing was as much about power politics as regulatory reform, a fact noted with some amusement by the man who called the hearing, house financial services committee chairman barney frank. frank opened by marveling at the complaints he is hearing from the nation's assorted financial regulators. >> they can argue that taking the powers away from them may not make sense, because the powers that will be taken away from them are in very good shape because they have rarely been used. >> reporter: which is why barney frank and the obama administration want to put the power to protect consumers into a new regulator, the consumer financial protection agency. the goal is to make sure products like abusive sub-prime mortgages never again threaten the system or consumers with disaster. the obama administration wants to go further, requiring fi

you can't do that unless timothy guided geithner comes to the rescue. please, please, can we have stevens who is on the board oversee goldman sachs? sure, of course. timothy had geithner says absolutely. sure we can do that. he gives them a temporary one-year waiver of the rule which meant that he could not only hold the shares, but this one that you could serve on the board of directors and also, mr. friedman, he can also stay on the board and buy an additional 52,000 shares of goldman sachs. in the meantime, time, he makes $3 million. now, just so you know, goldman sachs, they have learned their lesson. look at them, they are profitable now. sure they took all this money and they took this money over here. sure, they took your money. they paid it back through tarp, but this is their money from aig. they learned their lesson, no more did he river activities. they're not going to be doing oil speculation as much as they were. they have a new derivative, the green environment. they have purchased 10% of the chicago climate exchange and $1 billion of carbo

hanging myself in front of timothy geithner!o the president last night at the 100th anniversary of the ncaap, he said although racism is still no excuse for not reaching one's potential, he added about the role of the government as well. here it is as well. >> government programs alone won't get our children to the promised land. yes, government must be a force for equality, but ultimately if we are to be true to our past, we also have to seize our own future. each and everything. glenn: i got my dashboard messiah obama smoking. did you just say seize your own destiny? you are such a knucklehead, coming from the president who wants to spread government into every facet of our life, and finally, the last story, i think we might as well all go to crazy town. flip it over. yeah, baby! nasa has released the refurbished video of the first ever moon landing. oh, this makes sense in an upside-down world. why? because the government looked at it and they said this is awfully grainy, and also because they later add added a mitted that th

treasury secretary timothy geithner assured worried chinese investors that the economy will begin toecover. so what are the chinese so worried about asking what that means for all of us? joining us is a senior economics writer for "the wall street journal." it is not a particularly good sign when china is worried about our economy so much. what are they so worried about our economy, our debt? >> you know, greta, i am getting tired, too, of all of these boring countries, like germany, france, switzerland, and now you have communist china lecturing the united states about spending too much money in terms of government, too much debt, deficit. the chinese own billions of dollars in our debt, and they are getting worried we will not be able to pay that back because we are taking on such enormous deficits. this year alone, greta, i am estimating $2 trillion in deficits for one single year. it is unthinkable. greta: one year ago, and held about $506 billion of our debt, and it has now balloons by $300 billion. one year ago, it was actually japan that was number one in holding the debt, and

you can't do that unless timothy guided geithner comes to the rescue. please, please, can we have stevens who is on the board oversee goldman sachs? sure, of course. timothy had geithner says absolutely. sure we can do that. he gives them a temporary one-year waiver of the rule which meant that he could not only hold the shares, but this one that you could serve on the board of directors and also, mr. friedman, he can also stay on the board and buy an additional 52,000 shares of goldman sachs. in the meantime, time, he makes $3 million. now, just so you know, goldman sachs, they have learned their lesson. look at them, they are profitable now. sure they took all this money and they took this money over here. sure, they took your money. they paid it back through tarp, but this is their money from aig. they learned their lesson, no more did he river activities. they're not going to be doing oil speculation as much as they were. they have a new derivative, the green environment. they have purchased 10% of the chicago climate exchange and $1 billion of carbo

sean: timothy geithner promised the american people that the effect would be "felt almost immediatelye wrong. it will take almost -- at least -- >> and you made a wrong left turn on the way to the wedding. they are 10 minutes late. we made a mistake. it is 1.5 points higher than they thought it would be. that is a massive mistake. sean: he was saying " catastrophe," "crisis." he was saying if we did not pass it, unemployment would be at 9%. >> start looking at what happens next. their budget projections are 4% growth next year. whatever the deficit is now, however that it is, it is only getting worse. >> frankly, the greatest critics happen to be the liberal economists who they relied on in the beginning that are pushing them toward additional deficits, additional stimulus plans. >> they really did not rely on that. paul krugman wanted him to spend more money. he was critical when it happened. he is the leading liberal economist by far. he did not do that. he did not do what was suggested. sean: the people he is listening to, lawrence summers, timothy geithner and the rest of them, th

>> this is timothy geithner's house. >> it turns out that geithner bought this house for $1.6 millione market. and now he is actually raising the asking price after the housing market tanked nearly 30% thanks to fed policies he helped to implement. >> how county american people trust the policies of a man who can't sell his house? this is how it seems to me. that this hard-working, honest home-owning american is suffering at the hands of this man. bret: pretty good.

and chinese officials in washington, both treasury secretary timothy geithner and china's top economic policymaker spoke of some hopeful economic signs. the chinese official said the world economy is at a critical moment, moving out of crisis and toward recovery. >>> and then from britain, some leading economists have set an unusual message to queen elizabeth about the financial crisis. they said they were sorry. the "observer" newspaper say the letter followed to the queen. last fall in which he demanded to know why no one had anticipated the credit crunch. the letter says the financial wizards who believe they could manage risky debts and protect the financial system were guilty of wishful thinking combined with hubris. >>> finally tonight a story we found irresistible as you're about to see why. at the zoo in sydney, australia there, is big news in the elephant family. actually it's small news. the first elephant ever born in that country. his parents came from thailand. his name is luck chi. it means son or male child to thai and was selected from more than 30,000 names entered in

timothy geithner and secretary state hillary clinton are also taking part in these meetings. we may be one step closer to a health-care compromise in the senate. there would not require businesses to have health care coverage. the compromise would also prevent insured companies denying coverage to any applicant. >> michelle obama promoted her husband's health care plan out of richmond. she said that a health-care overhaul would create a great emphasis on prevention. the d.c. representative in congress is asking for answers in the shooting -- they are asking for civil rights investigation for the death of joiner. police said that he had again when officers shot him. at this moment, there is still no sign of why the officers ot >> we are live with a message. >> this is the parking lot where the attack happened, and attacks so violent that some of the officers postponed their holiday vacation to try to tack -- to try to track down the suspect. tonight, the suspect is going to jail for a long time. he was nearly beaten to death in a savage robbery christmas eve. wayne williams wa

with china shiftg from export- led growth to growtht home, treasury secreta timothy geithner wts to see the trend continue. china's success in shifting structure of econo will be huge contrution to bringing about more rapid glol recovery >> reporter: but china has fueled the shift wh large increases in bank lendg, a trend th worries some servers, says the u.s. cha business council's john frisbie. >> so thu.s. will have its own questions abt china's exit strate from that to avoid inflation down the road,ust as china is going to be talng about our own it strategy to avoid inflation here down e road. >> reporter: this meeting billed as a dialue and it is high level: byncluding secretary of stateillary clinton,he obama team is gnaling the breadth of issue china and the u. face. but the very se of the meeting and the sizef the two nations underscores the difficul of making quick changes. >> this makes it very portant at this dialogue continues a that the united ates be in a positi to nudge china in the rit direction as it emerges as the leading ecomic power of th21st century. >>eporter: one

and ina and treasury secretary timothy geithner says the two nations are committed to build a more stable global economy. yet today the obama administration sought to assure china the u.s. will deal with the soaring budget deficit. china uses its massive trade surpluses with the u.s. to bolster its economy. >>> a bipartisan group of the senate finance committee is working on a compromise health care plan but it does not include the president's push for a government-backed insuran option. president obama will continue his push for universal health care and aarp town hall meeting today. nearly 10% of all health care dollars in the u.s. are spent treating obesity. according to the centers for disease control and prevention, medical costs for obesity- related illnesses have soared as high as $147 billion just last year and officials say the health-care system is suffering because of it. >> if you go with the flow in america you and of overweight or obese. it is not a change in the genes but a change in environment. >> the only way to have real savings in health expenditures in the future is t

. >> timothy geithner says two days with talk wi top inese officia have produced reements on measuresor revitalizing gbal growth. both countries will treat foreign firms equally in governmentrocurement deals. china says it will st up domestic demd. the u.s. has long called on china to reducetsxports to furowth. >> good progress has bn made on reviving e middle eas peacprocess during talks with benjamin netanyahu some of the biggest film studios in hollywood are suing the swesh file sharing site, pirate bay, becau they say it is still allowing internet users to illegally download their flms. >> earlier thisear, a swedish court stenced four peoplto pris for breaking copyrigh laws. >> there were some big gains r right pares in last month's european elections. it tk hard lineapproach to minorities in the country, particular the roma or gypsy polation. dominic uston has been to hang area to find out wre the ght wing support is coming from. >> meet theung aaron guards. theyay ty want to se proper law enforcement. others believe they are rig wing extremists. [speaking in nive tongue] >> ts i

treasury secretary timothy geithner made this announcement on monday. so double headlines coming off here today. the chart that we're showing you shows a minus 5%. the stock was down about 1 1/2% in regular trade. so it's weakening up by about 3% or 4% in the extended hours on dell. so we're continuing to track both these stories, maria, and update you accordingly if need be. >> now, they are saying, dell, matt, that they're looking at some stabilization in demand and it's really just a sequential growth here. but the stock is still selling off in the extended hours. this may very well be setting the tone for tomorrow. >> it could be. and that's interesting because i was reading this sxag are they hiding here? they're playing up a positive. stabilization. we're talking about all this change and the rate of change stuff, and that's what they're looking at. and then they mention the margins. but i've got to till, maria, i look at a lot of these margin things, and when you cut prices to move goods your mairnlg's going to take a hit, but you're moving stuff

treasury secretary, timothy geithner. all this was about taking the cooperation of the two sides even further. the economy will be number one. interesting to note, though, that since the bush administration saying that china now has one of over the united states, being in a better position than the united states, of course china is going to want to know how much the stimulus package that the u.s. is working on will stabilize the economy, china holding $50 billion of u.s. treasury bonds. they have been very worried about the stability of the u.s. dollar, so lots and lots to discuss. >> a very important meeting. we will have more on that. you are watching "world news today." stay with us. coming up -- outlining the way ahead for afghanistan. the british foreign secretary makes an offer of reconciliation to taliban fighters. also, why the american military in iraq are continuing their patrols. that is despite an official withdrawal of troops from the country last month. the trial of the burmese democracy leader aung san suu

and to help calm nerves around the world, treasury secretary timothy geithner heads to the middle east this week, his mission to reassure officials their investment in the u.s. are safe. geithner is scheduled to hold high level meetings tomorrow and wednesday with government and business leaders in saudi arabia and the united arab emirates. >>> the two-week selloff in oil prices continues in asia this morning. crude prices have fallen $14 a barrel, or 19% since june 30th. that's been welcome news at the pump. gas prices have fallen about two cents during the last two weeks to a nationwide average of $2.56 a gallon for regular. >>> and goldman sachs is expected to report blockbuster profits tomorrow. analysts predict the bank earned more than $2 billion last quarter thanks to placing winning bets across world markets. it's a dramatic turnaround just nine months after being slammed by wall street's worst crisis since the great depression. michelle? >> claire leka here in new york. claire, thank you. >>> a custody hearing scheduled today for michael jackson's children has been delayed. ja

. >>> d today, hillary clinton and treasury secretary, timothy geithner, hold high-level talks with chinese government leaders in washington. >>> harvard professor henry louis gates and james crowley, the police officer who arrested him, could soon be sharing a beer at the white house. >> both men have accepted the president's invitation. ne yi de nies has more on the call that set it all in motion. >> reporter: this is sergeant james crowley on friday, taking an unexpected phone call. >> all these guys are looking at each other going, is this a hoax? >> reporter: david runs tommy doyle's bar, a cambridge police favorite. crowley was here when the president called out of the blue, verify comments about crowley's arrest of professor gates. the two spoke for five minutes. when he hung up, the bar went wild. >> the roar went up. people were high-fiving. sergeant crowley was probably the quietest man in the bar at that time. you know? i looked over at his face. what i saw was, like, a cocktail of emotions. >> reporter: perhaps inspired by the setting, crowley suggested that he, the president an

. >> reporter: secretary timothy geithner has the authority to handle the c.i.t. crisis. but won't say what, if anything, the government might do to help. scott gurvey, "nightly business report", new york. >> jeff: here's a striking development. the federal deficit has topped $1 trillion for the first time ever. and we are only nine months into the federal fiscal year. darren gersh has some perspective on this fiscal milestone. >> reporter: $1.1 trillion is enough to give every worker in the united states ten and a half weeks of paid vacation. $1.1 trillion is also about enough to provide health care coverage to every uninsured american for a decade. but is $1.1 trillion too much debt for the united states to pile on this year? budget expert stan collender doesn't think so. >> everyone, chill out. this is exactly what we should be doing right now. be grateful that the government is getting it right. >> reporter: right, collender says, because we have an economy to fix and that requires government spending to boost demand. but $1.1 trillion is a dramatic symbol with 11 zer

. >>> while there may be exuberance in one quarter of wall street treasury secretary timothy geithner tried to temper expectations today. he did so in saudi arabia, telling some the country's business leaders to expect what he called a gradual recovery with more than the usual ups and downs and temporary reversals. and yet he pointed to some hopeful signs. >> decline in economic activity has slowed. business and consumer confidence has started to improve. the housing markets are showing some signs of stability. the cost of borrowing, the cost of credit has fallen significantly. credit markets are opening up and these improvements have been more substantial and have come more quickly than many of us expected when they were designed in december and january. >> for more on the treasury secretary's trip to the middle east, we are joined again by fadel gheit, a managing director and senior oil and gas analyst at oppenheimer & co. thanks very much for being with us again. i want to start right away by asking you geithner's trip to the middle east seems largely aimed at keeping those countri

. >>> meanwhile, we also have timothy geithner talking today. so christine, break us down all of that if you would because the derivatives over the counter derivatives, make it make sense for the people at home. >> you're going to hear a lot about otc derivatives, over the counter derivatives, they are not traded on exchange, not regulated. the global market is like $450 trillion, that is way bigger than the world's stock market. these are things traded between companies, between third party investors and alike all around the globe that are not regulated and in some cases we don't know how much risk they could be posing for certain companies that might be important to the american or world economy. so the treasury secretary wants to see some smart, focussed regulation of over the counter derivatives for the first time ever. he's going to be testifying about that. now, look, these are not corn futures. corn futures are regulated by the commodity futures trading commission, they're on an exchange, these are very complex financial swaps and derivat

greta: timothy geithner. -- if they try to fire this guy. two but secretary of state hillary clinton. now, -- part two with secretary of state hillary clinton. now, the u.s. on the edge of catastrophe? catastrophe? what catastrophe?ophe before they will have a delivery system. any idea? >> i think we have time. i do not want to numbers up there. we have time. their program is not that advanced or sophisticated. you made a point which is very critical. it is not only what they might do but what others might do in reaction to what they might do. i think neither china nor we want to see the necessity for them to move in that direction. there becomes a time where your pursuit of nuclear weapons renders you less secure not more secure. i really believe that there are a lot of moving parts to this. i am not in any way saying it will be easy. you can begin to see the pieces on the chessboard. i think there is going to be a moment -- i do not want to predict exactly when -- when they will want to come back to the table to talk about the way forward.

we have timothy geithner, hi testimony finally beginning. have a great weekend. >>> beree get to this hearing, which is the important need to bring comprensive oversight and regulation to the derivative market i want to make a fe broader pois about the imperative of comprehensive reform. there isome who suggested we're trying to d too much too soon, that we should waitor more opportune moment. there are me who beginng to suggt that we don need comprehensive change even though the costf this isisas been brutally damaging to milons of american, ndreds of ousands ofbusinesses, tonomies aroundheworld, and to confidence inur financial system. there are someho will argue that by making regulatis arter and stronger weill desty innovation. and there a even some who argue that we should leave sponsibility for consume protection for mortg and consumer credit products largely where it is today no in my vw these voices are essentially argue that we maintain the status quo, and at's not something we can accept. it's noturprise that we're having this deba

ben bernanke wants responsibilities to stay with the central bank, while treasury secretary timothy geithnerwants to create a new consumer protection agency. >> our patchwork antiquated structure of oversite responsible created large gaps in coverage, allowed institutions to shop for the weakest regulator. >> still, lawmakers remain frustrated that nothing has been proposed by the obama administration that would prevent americans having to bail out so-called too big to fail companies in the future. >>> more money. an increase in the federal minimum wage pacs effect today. what it means for the paychecks of the lowest paid workers in our country. >>> and playing the name game. a famous coffee chain is testing a new concept. we'll explain. >>> but first, we'll head back outside for a check on the weather conditions. how about over in columbia. oakland mills middle school, where it is 81 degrees. it feels a little warmer. a dull metal clanking sound. bear groans. ♪ ominous music ferocious growling. roaaaaaarrrrrrr!!!! ♪ whistling bluegrass tune >>> the economy took a sudden turn for the better

timothy geithner tells china officials the u.s.ns to rein in the deficit to protect the china holdings. let's check future openings. we are set for a lower opening on wall street. that is your business news. live at bloomberg headquarters in new york, i am linda bell. excuse me. back over to you. >> thank you. >>> 6:39, 71 degrees. >> vo: since 2006, walmart has sold over 260 million compact fluorescent light bulbs. savi our customers over 7 billion dollars on their electric bills.sa msaveoney. live better. walmart.sa contritebula y wr,ped alrtce of every eligible associate's salary to their 401(k) and profit sharing plan. ...even if the associate didn't contribute a dime... ...making good jobs even better save money. live better. walmart. one >>> we are live in rockville the sporting. welcome back to "good morning washington." it is hot and humid outside. it is the first thing you will feel. temperature about 73 degrees. it is warm and muggy, just like the past severalda ys. partly cloudy, near ch, 90ce , an of afteoon storms. rig

timothy geithner is over in saudi arabia, and he's trying to let everybody know that our dollar is totally fine. can you explain the insanity here of a country that has as much natural resources as we have taking our money and sending it overseas, buying these natural resources that we have at 8 times what it would cost us if we used our own resources, and then borrowing those same dollars that we just sent this them? >> well, you know, the thing that is so frustrating about this, quote, energy bill, what do they call it, energy independence bill that we just passed, there is virtually no money in that bill for natural gas, for drilling oil offshore where we have huge amounts, more oil than saudi arabia. there is no money for nuclear power, so this is not an energy ingdz pence bill. it is a bill that basically shuts down our energy production and it will make it improblem, glenn -- think if you are a car company trying to recover or a steel company or chemical company or utilities company or light manufacturer, how will they compete on a global scale when we're doing all these things to ou

timothy geithner is not laying any fires.so really it's michelle obama, hillary clinton and i don't think you'll see janet napolitano launching any kind of a campaign.

jennifer: timothy geithner was on the hill today and he was meeting for an oversight committee hearing. here is what he said. >> the stimulus package is on its expected path in terms of the rate of change and in terms of putting money in the pockets of taxpayers. tens of thousands of teachers and firemen have been fired. there are some infrastructure projects that have started to take effect and they will have an affect on the economy in the second half of this year. the consensus is that there has been substantial improvements in arresting what was the worst recession globally we have seen in generations. those are the result of the actions this congress took, the administration put in place and complementary actions put in place by governments around the world. jennifer: do you agree that the crisis would have been worse? >> i don't agree. i agree that it would be pain because we are in a world recession, a contraction of the economy. the sooner we face up to this and the sooner we straighten out our banks, that is the key to where banks can start lending. there is a liquidity crisis

chun not strategic dialogue with timothy guideline -- timothy geithner. host: hosting the summit with secretary geithner. they have and op ed in the wall street journal about opening a new dialogue with china. at the top of their list will be assuring the recovery of the most but -- once recovery has taken hold, u.s. and china acted quickly to create and save jobs. also they focus some of this on policy recommendations for china. it involves continuing sector reform, spurring domestic demand and raising personal income. talking about the chinese. is it unusual for a secretary of state and treasury secretary to be so -- inserting themselves so much in another country's policy recommendations? guest: these are extraordinary times and we need the chinese to open up their domestic market and get them to spend more money in order to help us with our recovery efforts. this is unusual. this is also the first time that this kind of strategic balad has been held at this level. -- this kind of a strategic dialogue has been held. you can send us your comments by twi

after pressure from the treasury secretary, timothy geithner, and other officials, they restructure theorporate on its plans to the remaining 50 executives and payday next week, so you are probably wondering why the governor -- the government would allow a bailout of taxpayer money. they hope the government will condone for the bonuses to avoid another lashing. the package stands at 180 billion, so there are national kinds of outrage with the bonuses, putting the obama administration's the new compensation czar, kenneth feinberg, in the hot seat. bonuses were promised long before he took his job last month. his job is to oversee compensation of seven firms that have received large bailouts. too little, too late. rick: thank you very much. when we come back, racism, or misunderstanding? black kids asked to get out of the pool. . rick: a suburban philadelphia swim club is accused of racial discrimination against minority children. according to the director of creative steps camp -- we'll speak with her in a moment -- a group of kids in her care arrived at the valley club outside of philly

. >> secretary of state hillary clinton and treasury secretary timothy geithner discussed strategic andmatters with chinese government leaders in washington. >> and theful loans to bail out general motors and chrysler will be reviewed by the general meeting in detroit. >> finally this half hour, some of the most loyal customers of a small town donut shop in michigan have done something pretty sweet. >> police officers are reinforcing a stereotype and i found out it's a real success story. >> in tount of claire, michigan, a half dozen stores have recently shut their door. the local change is a donut shop. a group of loyal customers stepped in at the last minute and saved the place. and they already knew a thing or two. >> no calories added. >> about donuts. >> now i know where all the cops are. >> reporter: the claire police department now protects and serves -- donuts. ignoring that ol' cliche, earlier this month they bought the bakery. >> took us about ten minutes to decide we wanted to keep it going and let's buy it. >> customers are lining up from all over the country. both amazed an

. >>> president obama, secretary of state hillary clinton and timothy geithner open a two- day summit with chinese leaders today. it will address the challenges and opportunities which both nations face. susan roberts has more. >> the white house will turn to china to yank the global economy out of the recession. the obama administration is expected to stress that while the u.s. economy will recover it won't be because americans are spending more on foreign goods. that is because across the board americans are spending less and less. the nation's unemployment rate has hit 9.5% and those with jobs are saving cash at a growing rate. china has its fair share of economic woes, too. an estimated 30 million are unemployed out of 900 million workers and the largest holder of treasury debt. officials will look for reassurance their investment is safe, despite america's wobbly economy. >> reporter: few expect the talks to bridge sharp differences between the two sides but both are hoping it will lead to better cooperation on a host of issues. >> on north korea have been extremely gratified by

. >>> timothy geithner is in the united arab emirates today.with saudi arabia's king. he's looking to work with the leaders to build a stronger more balanced economic foundation. >>> gm says it will invest is $1 billion in brazil. 50% of the money will come from gm brazil, the rest will be borrowed. that's it from cnbc, first in business worldwide. back to msnbc. >>> welcome back. i'm david schuster live in washington. >> i'm tamron hall in new york. the big picture this hour, an 18th ethics complaint filed against sarah palin alleging she abused her office by accepting a salary and using state staff while campaigning outside alaska. she's pushing back with responses via twitter and they include quote, ethics issue would almost be funny if it weren't such an abuse of justice. she went on to say are these constant wasteful summed up ethics charges result of not caving -- it is so hard reading someone else's twitter. criticism, it's something easily avoided by saying nothing. those are her tweets. >> i haven't heard of thumped up. in the bigger p