we got geithner as secretary of the treasury. he had been at the fed in new york in october 2008 bailing out everybody in sight. general electric got bailed out. morgan stanley, goldman sachs, all of the banks got bailed out, and the architect of that bailout then becomes the secretary of the treasury. so it's another signal to the financial markets that nothing ever changes. the cronies of capitalism are in charge of policy. >> you name names in your writing. you identify several people as the embodiment of crony capitalism. tell me about jeffrey immelt. >> he is the poster boy for crony capitalism. here is ge, one of the six aaa companies left in the united sates, a massive, half-trillion dollar company, massive market capitalization. i'm talking about the eve of the crisis now, in september 2008. suddenly, when the commercial paper market starts to destabilize and short-term rates went up. he calls up the treasury secretary with an s.o.s., "i'm in trouble here. i need a lifeline." he had recklessly funded a lot of assets at ge

treasuries. even though the first big bond auction of the year met with strong demand today, there are concerns bond investors may not fare as well in 2012. suzanne pratt reports. >> reporter: the outlook for treasuries this year is something of a mixed bag, but that hasn't stopped people from coming to investment offices like this one to pour millions of dollars into bonds. it's no wonder investors are still enamored of bonds. last year, treasuries returned about 10%, beating corporates and stocks. after all, u.s. government bonds have long been regarded as a safe haven. for that reason, some experts predict treasuries will be a good bet this year, and with europe still in turmoil, there are even fewer risk-free investments. >> you no longer have a lot of european peripherals, and even some of the european core countries are no longer considered safe. all of that in an environment where more and more people are buying bonds, so that's very supportive of the treasury market overall. >> reporter:

nine economy is in in europe people lead to treasuries i think as well because historically treasuries have been the safety trade and the safest place to put your money gold has played a role certainly since one nine hundred ninety nine when we begin recommending it was two fifty three now it's hovering around sixteen hundred it has had a good run but in the financial markets the paper asset that is represented by the u.s. treasury still maintains its flight to safety status and to my mind that just in bold ins. mr geithner and mr bernanke even more because they believe that that status will be maintained regardless of what happens even if congress can't get its act together and balance the budget the the treasuries and the dollar have asserted themselves as specially you know i was especially shocked in september of two thousand and eight the dollar rallied twenty two percent right after lehman brothers declared bankruptcy in a very real way it reasserted itself as the event to some extent of course and that's also there's a website because so much of it is the character that you've w

thisyou would arrive in plaza known as the treasury, but in fact it is not a treasury. it is a bad one name -- it is b aedouin name. they did not know who could have made of these monuments and so they thought it must have been egyptians. it is actually the temple and tomb and would have looked very dramatic as you came out and stood here and saw this over your head. there is a massive central staircase that led to about where we're standing to the entrance and it would have been painted in bright colors. it would have had a coating of white plaster and all of the details and figures would have been in bright colors. >> how old might this be? >> if it was finished in last 25 years of the last century bc, we are talking about 2000 years. >> is the architecture greek or roman? >> it is what we call hellenistic. the closest parallel is the architecture from alexandria. the iconography is very greek or greco-egyptian. the symbol do you see perched on the pediment is the crown of isis. the figure of the central round portion is isis holding a cornucopia. on each side are dan

ten year treasury yields break out so right now they're saying that u.s. treasuries remain among the safest assets in the world they're considered safe everybody's buying them the yields are driven down but what could prove those investors wrong u.b.s. asks they give a few reasons for the answers but the one that's most interesting to me they say alternatively the appeal of u.s. treasuries could be eroded by common bond issuance in the euro zone creating the potential for a larger homogenous market for european government debt that could rival u.s. government hedge money that however seems a remote possibility well this is what the currency war is all about you know a couple of years ago it was thought that the euro would be a replacement for the dollar on the currency side this was the reason why up to thirty percent of global trade was done in europe then the euro started to break apart or be challenge with all of these sovereign defaults are being rumored and downgrades so but now the competition will be who can issue the most. sovereign debt so the now

treasury market and yield. go up that are talking inflation south station arbor i know you're coming back after the break by popular demand no more gas than a shower just gonna stay sane after. the gas all right don't go away. well with the. technology innovation all the developments around russia. the future covered. right to clean. one hundred money. more than sixty square kilometers of environmental devastation. are still surprisingly in line i'm finding we're just. getting bad out here. but not saying hardly any birds squirrels you know. you know i don't know what's going on here. greed on our q. one stream cascading from mountain slopes to view is miss moments. but this beauty brings dance at a speed of more than two hundred kilometers. the steps of a long. welcome back to the kaiser report by mary skies are with station over time to find out what your predictions were at facebook dot com forward slash max kaiser stacy over max the most popular of the sixty four predictions made by viewers of this program

that's out there but eventually like all bubbles it's going to burst treasury prices are going to plug interest rates are going to skyrocket i mean it's a huge disaster that is waiting in the wings and if you watch the president say the union address you would have no idea you know it's kind of the equivalent of the cap of the titanic sound of the all clear from the bridge even after they've hit the iceberg i mean we are headed for a real financial disaster yet he's talking politics as if this is business as usual and i want to get to the president but is there something that's counterintuitive there though that that does support the treasury market in the short term before rates will eventually rise because banks let's say they have no really good place to put their money especially with what the fed is doing twisting the curve which also doesn't make sense to me right because they're traditionally banks make money by borrowing short and lending long so it isn't there if they potentially see a recession or depression coming along don't they want to try to remain liquid for the foresee

a senior treasury official says the u.s. targeted the bank as it is one of the few remaining financial access points for iran with the rest of the world. >>> the head of the international monetary fund christine lagarde has asked the european union to boost the size of its rescue fund. >> in the economic outlook the imf will release tomorrow and only tomorrow, we will lower forecasts in most of the world. >> in her speech in berlin monday, lagarde said that the world economy faced a defining moment. she then urged the eu to contribute to a bigger bailout fund that will be established from its current balance of 500 billion euros. lagarde pointed out a possibility that financial turmoil in europe could worsen as costs to repay debts are expected to expand in italy and spain. she also urged eu members to consider issuing the unified euro bond to establish a system that would strengthen their financial integration and risk sharing. >>> let's get a check on the markets now. tokyo stocks are up moderately this tuesday morning. th

one in q two maybe it's whatever you want to call it but the treasury market has been really resilient and surprised a lot of people has it surprised you at all in the way that it's behave because the fed did stop that large scale action asset purchase program that it was doing for the first two years after one thousand people doing stupid things doesn't really surprise me anymore because it's been going on for so long i mean i saw it in the internet stocks i saw it in the housing market and you now see it in the government bond market but of course a lot of this is manipulation central banks around the world including the federal reserve are buying all these bonds and a lot of the u.s. banks because of the regulations are basically being forced to buy these bonds so there is a lot of phony demand for treasuries that's out there but eventually like all bubbles it's going to burst treasury prices are going to plug interest rates are going to skyrocket i mean it's a huge disaster that is waiting in the wings and if you watched the president say the union address you would have no idea yo

. >>> treasury secretary them they geithner says he may be looking for a new career.feelin' subway ♪ let's go [ male announcer ] hey, capital area! are you feelin' subway®? then heat up your day with the big hot pastrami melt! it's fresh toasted and piled-high with pastrami, then topped with pickles, mustard, and cheese. head into a subway® restaurant today for this melty, mouthwatering sub! ♪ let's go [ male announcer ] from our nation's networks... ♪ ...to our city streets... ♪ ...to skies around the world... ♪ ...northrop grumman's security solutions are invisibly at work, protecting people's lives... [ soldier ] move out! [ male announcer ] ...without their even knowing it. that's the value of performance. >>> welcome back. treasury secretary tim geithner says he does not expect to stay on the job and we have some good and bad news from the fed depending on how you look at it anyway. lauren simonetti is live in new york with this morning's business beat. >> good morning. the markets are on a high right now. what kind of news could affect it today? >> we get new ho

the treasury secretary today said he does not plan to serve if president obama is elected to a second term in office. and while he said he was confident the president will be re-elected, geithner also said he was confident the president would have the privilege of having another secretary of the treasury. geithner is the last member of the president's original economic team. >> tom: the disgraced former c.e.o. of healthsouth will spend less time in jail. richard scrushy was re-sentenced today, and his prison term cut to just six years. he was originally sentenced to almost seven years for his bribery conviction back in 2006. he got the reduced term after an appeals court dropped two other charges against him. >> susie: with the fed pledging to keep interest rates low for a few more years, investors are >> susie: with the fed pledging to keep interest rates low for a few more years, investors are chasing yield and some are taking on new risks. here's gerri walsh, president of the finra investor education foundation. >> investors currently find themselves in a difficult investing enviro

the honorable president of the treasury board. mr. speaker, canadians gave us a solid, strong mandate to our government to to make the decisions on behalf of all canadians. and to look at the situation. >> i will say, mr. speaker, with that mandate as a prime minister has just said today, we have and are working on working on a plan for balance in a reasonable period of time. a reasonable and fair plan for kanld yans as well as for themselves to consider. >> the honorable member. mr. speaker, i had not expected such a response. already we can see irresponsible cuts by government having aa negative impact on people. we can think of those who are involved in the endless red tape and immigration system people have to wait weeks to get benefits and the government should understand that a false majority does not give them the right to cut the majority of programs. why is this government persisting in compensating major corporations profitable not creating jobs here instead of protecting the services that people need. >> the honorable trez

treasury bonds the population of the united states has to work in the future to pay off those u.s. treasury bonds we have to pay taxes in the future so every time the federal reserve writes a true check it creates paper dollars based money. but all those dollars are owed back plus interest on the bonds that it bought the treasury bonds and then the other form of dollars that exist are the credit dollars that are created through fractional reserve lending when you go and you buy a house or a car you sign a loan document when your pen hits that paper those dollars are created and get credited year ago. and there just a book entry for the bank but then you go and buy something with them and they go into circulation and they stay in circulation until somebody saves them up and pays down debt and that's a really key point right because a lot of it is think of expansion of money supply just in terms of base money of ok the fed's expanded its balance sheet it's tripled it base money has increased and this is the money supply but you're saying all that credit expands the money supply to th

treasury building last week the u.s. treasury became the oldest building in the world to be certified lead go l. the lead gold certification accord in the u.s. green building council thanks to an issue ordered by the obama administration the treasury building boasts several new environmentally friendly renovations that increase natural lighting use energy more efficiently and foster recycling conservation programs all told the new greener u.s. treasury building is saving taxpayers three and a half million dollars a year in lower energy costs well done i say it's also time to put jimmy carter's solar panels back on the roof of the white house. the bad the charlton public library in an agreed just case of overreaction the local library in charge massachusetts dispatched a police officer over the weekend to collect an overdue book from a five year old officer notified the five year old and her mother the two of the books were months overdue and had to be to return or paid for take a look. shannon benoit often reads to daugh

treasury dot gov and at the beginning of george bush's term to the end he raised the debt four point nine trillion in eight years this president has raised it over five trillion in less than four years how do you answer that well he always had only a hair and a depression no no. he added he added more in less then four and there is a dip then reuters did and a year ago said that he said he inherited he didn't say george w. bush gave him this go lowing wonderful economy and he destroyed it he said he had it he had badness when he came into office and he did nothing to improve it he made all he actually improved substantially we had twenty two consecutive months of private sector job growth if those people were not paying taxes there would be even worse than it is but you know what i've said i'm going to get woodward let him to increase the debt to disagree ok well let's take a break here and we'll come back with more with the big picture of the river. let's not forget that we had an apartheid regime right. i think. even one well. whenever the government says they're going to keep you

we talked to the secretary of the treasury, i don't recall -- >> robert rubin? he was the secretary of the treasury at the time. >> yeah, we would've spoken to him, i'm sure. and had bob rubin said, "no, the treasury feels this is wrong," we would've been careful. because obviously, the treasury recommends to the president on an issue of this sort. and there was no argument. no one said, "we'll have to think about it." and so a consensus built up. i don't think it started in the fed. i would guess it started in the industry, it certainly got into the congress. >> by eliminating the glass-steagall restrictions we free our financial services industry to maintain its place as the world leader. >> we dominate the world financial market, and we've done it with one hand tied behind us because we have the greatest economic system in the history of the world. but we can untie that hand that we have had tied behind us. and we do it in this bill by repealing glass-steagall. >> lawmakers inevitably learn as lobbyists tell them things. it's sort of like a doctor being sold

treasury secretary timothy geithner is speaking bluntly about his future. he says he's unlikely to be asked back for a second obama administration if the president is re-elected. he's been something of a lightning rod. at the treasury since leading the administration's response to the 2008 financial crisis. he's the only remaining top member of the president's original economic team. >>> great news this morning for people shopping for a new home. the federal reserve announced no plans to raise interest rates until the year 2014. rates will near zero. it's not good news for those holding cds or long-term bonds. little dividends will be paid out. the market responded well. finishing the day on a high note. the dow finished up 81 points. the nasdaq up 31 points as well. tokyo's nikkei average down 34 points today. the hong kong's hang seng was up 328 points. in london, the ftse opened higher. >>> starting today, the airlines are under government orders to reveal all surcharges are tacked on to fares. it forces airlines to advertise the full cost of a ticket, i