trichet said market intervention should be based on multinational decision. a few days after the march 11th earthquake and tsunami in japan, g-7 nations intervened jointly as the yen surged to a record high against the dollar. new york stocks plunged across the board on thursday sending a key stock index down more than 500 points. the dow jones industrial average ended the day at 11,383. that is down 512 points from wednesday's close. the dow fell more than 500 points for the first time since december of 2008 when the layman shock triggered an economic slowdown. sell orders surged on the back of lingering worries about the u.s. economic slowdown. remarks by european central bank trichet suggesting concerns on the outlook weighed on market sentime sentiment. 500-point plunge results in a 4% loss with the dow ending in an eight-month low. to see how tokyo stocks are doing, we'll cross over. how are things kicking off today? good morning to you, bit of a negative start following from the losses on the dow with the nikkei down 190 points, the topics trading lower

loufr, jean-claude trichet and the european bank had every opportunity and investment to preserve the euro. those who want to leave it, the italians, maybe the greek, we don't want to deal with it. the fact is the moment jean-claude treesh heir wajea jean-claude trichet walks into the room and will buy every greek, italian bond, much like ben bernanke relieved our problems in 2008, trichet is eventually do the same thing. no one wants to buy our national debt. the central bank does but it does go to the actual problem, hiding in treasureries or resolution in europe we are not getting investment, not getting production and not getting employment in western europe or in north america. >> all right, well, first of all, i think the bottom line is, that the story we were, have been told about our debt and our deficit as being problematic is a lie. i mean -- >> how so? >> the fact of 9 matter is -- >> a lie it's a problem or what it's origins are? >> a lie insofar as we were told we need to get the debt and deficit down because we won't get loans. >> a complete lie. with a reserve currency.

. >> and jean-claude trichet is worried about the jittery financial markets. he wants to leave interest rates unchangedat 1.5%. in an apparent bid to at support struggling bureau's own countries. >> i always said that we were totally transparent in what we were doing. it is an ongoing program. >> the eu commission president has warned that the euro's own debt crisis is spreading. in a letter to the european governments, they urge to live the fund. none of these signals have done anything to calm european investors. markets continued their downward spiral. >> we still have huge problems in the southern half of the euro zone. the central bank has to make up for the shortfall of politicians. we have the debt solutions that only tackle the symptoms of the crisis. >> in his letter has sparked a discord over the handling of the crisis. germany criticized the chief's comments. pumping more money into europe's rescue fund would probably not ease market fears either. >> the stock market route has hit equities across the globe. the mood is generally pessimistic. he send

ecb president trichet, the commissioner for monetary and policy affairs, and the chair of meetings of eurozone finance ministers all appeared before ministers of the european parliament monday in emergency debate to press for swift implementation of the summit agreement, but they face their fair share of criticism. >> the president of the euro group had been called in to answer some tough questions at an emergency hearing of the european parliament. parliamentarians criticized the handling of the ongoing crisis with france and germany singled out in particular. >> the french and germans used to meet at government level to anticipate the problems facing europe, to solve them together, and to make other proposals. now, they meet for sound bites for consumption back home. >> the franco-german proposal for a common economic governance also came under fire. the europe group head even slipped into sarcasm. >> i do not believe a credible economic government in europe can convened twice a year and then by some miracle expect the rest of the planet to fall on its knees out of admiration. >> th

and a big risk if you're a monetary policy official, ben bernanke or trichet in europe, the economy can spin into a deep recession. >> people are deleveraging as you said. even if borrowing costs are low, people aren't necessarily going to start spending more. they need to deleverage first. so you're pushing on a piece of string in a way. >> but if you push really hard on a string, sometimes you end up pushing it and i think the they're here is that, yes, the demand for money is very low, but that means perhaps the fed has to to be all the more aggressive in doing something p we tend to have the view that the entire american economy is on its back. but really 90% of americans still pay their mortgages, we still have a lot of people who would potentially buy a house if the mortgage rates came down just a little bit more. so at the margin, there is still some effect that can be gained. >> let's take a hypothetical here. aggressive printing of money to get the u.s. economy going again. what would the impact of that be in asia? >> well, it's a bit tricky for asia because obviously a lot of

jean-claude trichet at the european central bank said there were exceptional market circumstances.ll these factors together and you've got to ask yourself is it a blip or was the canary starting to tell us that the air is bad. >> what's the answer, ali, to that question? >> richard is a little off. a canary tells you when there's a problem in the mine. the appropriate analogy is a squirrel running around your garden. if you see one of those they run around for no reason. this was just jitters. investors were saying i don't want to be caught holding the bag and they sell out. oh, my gosh those stocks went down too much. this is market schizophrenia. i don't think the gas is in the air for the canary to be smelling. >> don't agree. i don't agree because of the reasons underlying what we saw. yes the volatility was there, but the volatility was symptomattic of what's happening underneath. interest rates for 013, come on, ali -- >> let me tell you why. i'll give you evidence. wolf, the united states gets downgraded. we covered this. united states gets downgraded. it cost the u.s. less

because he knows that bond trader know, if you start to push italy off a cliff, greece off a cliff, trichetll step in and become a bond buyer creating the relief, by the way the reason the market relief today was on speculation indeed the european central bank will be forced to step in and be a buyer. just another kicking of the can down the road but gives you a short-term understanding. >> better if people knew what the european bankwa

host: some other names in case your and trichet. the "washington times" has a look at the campaign staff. raese sullivan is going to serve as the communications director. mark miner is the spokesperson. guest: it is hard to look at the election of 24 men and talk about what happened since then by referencing it. the point i'm making about the tea party is that since the election of 2010, they have become a lot more a popular breed in the last couple of months, they have become a lot more popular. they did well in 2010, but that is not a sensible approach. they were popular and no one would deny that. they are unpopular now and that is a change. maybe it is because of the media but more likely for what they have done in said. the tea party has done real damage to this country. most of the people in the country want a balanced approach. they want to cut spending, no doubt about it, but most think it is ok to stop giving subsidies to oil companies. the tea party system appeared most think it is ok to make corporate tax -- corporate jet

host: some other names in case your and trichet.he "washington times" has a look at the campaign staff. raese sullivan is going to serve as the communications director. mark miner is the spokesperson. guest: it is hard to look at the election of 24 men and talk about what happened since then by referencing it. the point i'm making about the tea party is that since the election of 2010, they have become a lot more a popular breed in the last couple of months, they have become a lot more popular. they did well in 2010, but that is not a sensible approach. they were popular and no one would deny that. they are unpopular now and that is a change. maybe it is because of the media but more likely for what they have done in said. the tea party has done real damage to this country. most of the people in the country want a balanced approach. they want to cut spending, no doubt about it, but most think it is ok to stop giving subsidies to oil companies. the tea party system appeared most think it is ok to make corporate tax -- corporate jet o

essentially all of the workers in the american public's seeming to have an angry debate about the role trichet public seeming to have an angry debate about the role -- seem to have an angry debate about the role the unions should play. >> we represent everyone. obviously, i support individuals that used to be part of the union, and those that do not. that is my role. i have to be fair and objective in how we run our programs, and making sure across the board there is a balance. i think that is what we have been able to do, and all we have to do is make sure you look at where we have made our investments in terms of federal funding. we want to continue to raise standards so that we do a better job. >> my sense is that some people do not mind the idea that unions have helped them, or the accomplishments that have helped americans to attain, but before the hour workweek, the right to minimum wage, -- like a 40-hour workweek, the right to a minimum wage, or overtime, but when they see them with rights that they do not have, they become resentful. when you see a state that has a debate over trying

. >> you have to put aside your bias and report to trichet and the reason why people of fox news ande and hate. >> promote media conference at george washington university, aspiring high school journalists on ethics and where they get their news information in today's multimedia environment. sunday on c-span. >> next, remarks by some of the 2012 republican presidential candidates and the vote for the iowa straw poll. the texas governor rick perry announces his candidacy for the republican presidential nomination. later, the weekly addresses by president obama and pennsylvania senator pat toomey. >> michele bachmann has won the iowa straw poll with 20% of the vote. she was followed by congressman ron paul with 27%, and former governor tim pawlenty with 13%. now remarks by six of the republican presidential candidates prior to the iowa straw poll vote. we will hear from representatives michele bachmann, ron paul, and thaddeus mccotter, as will former governor tim pawlenty, former senator rick santorum, and herman cain. this is just under three hours. >> wow. what a difference four year

experience, i think, political experience, and another i would add, and i think justice so my your trichet sotoma -- justice sotomayor is a good addition for this, knowing how try elsewhere, that is something that there should be more of on the court. -- how trials work, that is something that there should be more of on the court. >> six you mentioned it yourself, do you feel any similar views with regard to the religious issues, that there are protestants verses catholic and jewish vote? -- folk? >> as my dad used to say, to make a long story unbearable -- [laughter] i have a long answer so i hope you'll bear with me. one of the great things about studying the supreme court is that the membership of the court reflects what matters in the country at large. in the early part of our republic, the big differences -- everyone effectively was protestant, so that was not an issue. but the regional differences it really mattered at the supreme court. that is what mattered in the country. it was very important that there be a new york justice, that there be a massachusetts justice, a virginia just