states are underfunded. we'll see fights between public and private sector bail-outs. we'll see fights between union and nonunion bail-outs. they should treat everybody the same. one reason all these pension-- one reason -- are underfunded is federal reserve policy that's kept interest rates so ultralow that these pension funds can't get a return on their fixed income. >> okay. those are fair points. sally, i want to stay on the issue of public pensions, if you don't mind, because the public pensions create the most ire, in the most danger right now. should we bail them out? >> look, two points here. first of all, you know, we even use the language of bail-outs it tends to evoke what we did for the banks. bailing out a bunch of private sector big banks because they took reckless, risky bets -- >> should we bail out public pensions? >> right. we have these public obligations to public workers, to teachers, who we said, come take this job, get underpaid, work long hours, deal with our kids that we don't want t

but they're woefully underfunded. they're trillions of dollars underfunded in terms of promises and trajectory. somebody has got to pay for that. the answer to that somebody is going to be the currently unborn, and that transfer is a taker transfer by people who aren't part of the system that works. >> i actually think that's an interesting point. in a sense, at least when i listen to what nick is saying, i don't hear the description of takers and moochers and makers. i really don't. i hear a system of a couple of programs, we're talk being social security and medicare that have accounting short falls, and those can be addressed through public policys in ways they think are not only essential to ensure that those programs have the durability they should, but are very much within the realm of policy management. we can do this. it's actually not all that hard. >> it may not be all that hard. i see the arithmetic he's talking about, but the problem is, if we want to make these programs work, you have basically two answer

yes they're badly underfunded because the progressives have sought to use the resources of the city for all manner of things other than education and other than holding people accountable and there is the writers the teachers make seventy five thousand dollars a year is a moment if they were really if you are on a fifty it's another you know or could just one of them say you. i'm going to say if you couldn't pay me fifty thousand dollars a year to work in one of these inner cities as i've done to solve for x. y. and right i have one eye of the works in the detroit in or in the inner city schools in detroit you live you know you're going higher rate tom you're worth it but why won't you allow innovations like lead in the catholic church government letting could be riveted given the respect that you're on here organization we're doing everything we can there be those and home there always just we shouldn't be using our money to support a religious home they're making forty two percent more than their public than their private school counterparts yes let me just let's have that right s

state houses, expenditures are outpacing income, and public pension obligations are drastically underfunded. as we reported in december 2010, some believe a day of reckoning is at hand for many states that could require another big bailout package. >> the most alarming thing about the state issue is the level of complacency. >> meredith whitney is one of the most respected financial analysts on wall street. she made her reputation by warning that the big banks were in big trouble long before the 2008 collapse. now she's warning about a financial meltdown in state and local governments. >> it has tentacles as wide as anything i've seen. i think, next to housing, this is the single most important issue in the united states and certainly the largest threat to the u.s. economy. >> why aren't people paying attention? >> 'cause they don't pay attention until they have to. >> whitney says it's time to start. california has a credit rating approaching junk status. it spends more money on public employee pensions than it does on the state university system. arizona is so desperate, it sold off the s

not just blaming unions. >> is it really underfunding the city?that equivalent to not being able to pay for om of the promises when an economy has changed so much? >> in many cases it is because a lot of the cities depend on a property tax base that has eroded and is not coming back when the economy comes back. if you're going to take a sensible, thoughtful approach, thing like an eroding tax base, thing like a change in the service levels we demand from schools, have to be part of a reasonable compromise where everybody's putting their -- >> how are you --. >> what's the issue of the fact that things change? what about the fact that things change? for example, in the united states, i mean, here we are with a different demographic story, we're living longer, people talking about living to 100 now. in fact, social security hasn't changed at all. so, shouldn't we be changing based on the evolution of a country, of a city? i mean, that's one of the issues. if you're going to be living longer and needing more of the benefit from the country, don't you

state lawmakers approved a sweeping reform aimed at shoring up the badly underfunded system including payout caps, larger employe contributions, and higher retirement age is mostly for new hires. it could save the state as much as $55 billion over 30 years. many republicans argue the reforms cannot reach far enough. lawmakers also approved a bill allowing hundreds of thousands of undocumented immigrants to get california driver's licenses. it would apply to people under 30 who are eligible for work permits. the bill now heads to the governor. >> and gasp near san mateo after a construction crew broke a pipe. several were evacuated. the leak was captain half-hour and no one was hurt. neighbors on the peninsula are keeping a close eye out after two men were spotted impersonating pg&e workers. police say the impostor's tried to gain access to at least one birling game home yesterday afternoon. alissa harrington with more on the scheme that police say they have seen before. >> police say this type of disguise where a person dresses up as a utility worker is nothing new but what is confusi

. >> started with the idea that medicare is catastrophically underfunded, 40, $50 trillion underfundedaccording to the government accounting system, that they require employers to use, present on the accounting, and it's going to squeeze out spending on everything else, probably even including defense, and it's not -- [inaudible] same deductibles, same coping. >> different premiums in some cases. >> so two questions. why would democrats support, basically demagogue cuts in medicare, which i think at, i should be paying 10 times the deductibles and co-pays to someone else. so why would they demagogue that and let medicare got every other program they care about? every other program they care about is going to be cut because of their support for medicare. why would republicans propose any cuts in medicare? they can just let it go ahead and eat the rest of the budget and they can live with the government that has medicare, defense and interest on the national debt, which would be fine with them. >> the answer to any question that begins why would political party a demagogue -- [laughter]

we have underfunded pensions. underfunded healthcare liabilities.iness owner is scared to hire people. we have to get some of the uncertainty out of the way. dennis: do you think we would have done visibly worse as an economy if the fed had not have done qe1 and qe2? >> market stays up, market goes down, people get worried they see their 401(k)s go down. yes, if you keep the stock market up, people feel a little bit better. dennis: we just on friday, i think it was, hit a five-year high on the stock market. a lot of people perish. what happened to stocks if the fed on thursday does not take new measures to soak up the economy? >> that is in. the action is based in. without it, we are going down. the volatility will increase. dennis: if the fed comes out on thursday with some new extra measure, stocks do almost nothing. you would not go so far to advise planned to sell out of their non-retirement account stocks or anything? >> i want to hedge a risk. the rule of losses. you lose 40 you need 80. loose 50, you need 100. people are not back where they w

they have been most underfunded liabilities for their public pensions. behind in paying their bills on time. when there was republican control of the house, we took a fiscal mess in got it straightened out. we are only spending 97% of revenue and we have restored the money that was taken from the cash reserve. we projected five years in advance. we have a sustainable budget and we are looking at further reductions in taxes and regulations to grow jobs in the iowa economy. [applause] barron's magazine recently came out with the rating of all 60 states in terms of their fiscal management or mismanagement. i am proud to say that i was ranked second only to south dakota. [applause] obama's state, run by his friends from chicago, ran second last to connecticut. i know we can do better. mitt romney will do better for america. he will do for america what republican governors have done for their states, not just here in iowa. and look at indiana and michigan and wisconsin, all elected recovered -- republican governors. all have reduced taxes and regulations and

>> so starting with the idea that medicare's catastrophically underfunded, $40, $50 trillion underfunded according to the government accounting system that they require employers to use, present value accounting, and that it's going to squeeze out spending on everything else, probably even including defense. and it's not a means-tested program. it doesn't -- we pay the same co-pay, same deductibles. >> different premiums in some case. >> but it is -- it's not like medicaid or anything -- >> right. >> so two questions. why would democrats support, basically demagogue cuts in medicare which i think are -- i mean, i should be paying ten times the deductibles and co-pays of somebody else, so why would they basically demagogue that and let medicare gut every other program they care about, every other program they care about is going to be cut because of their support for medicare? and then why would republicans propose any cuts in medicare when they can just let it go ahead, eat the rest of the budget, and they can live with a government that has medicare, defense and interest on the national

border agency that's just a third of one percent it's an incredibly small amount and historically underfunded and still cripplingly under-resourced the u.k. border agency is now under pressure and the latest revelations that more than one hundred fifty thousand migrants the missing could just be the tip of the iceberg it's very rare that hundred fifty thousand figure came from the couch where people have applied to extend their leave to remain in the u.k. being refused and they go into a much bigger part of a million sounds about what a number of people here. in london immigration lawyer amir's eighty tells us this the food regencies to have any hope of reducing the number of missing migrants they need to resit clean change their approach i think the. you need two percent stop promoting a very tough line because the people who absorb the top flight in the media or of course the markets and sells and they don't come forward if the u.k.b.a. promote a transparent and fair lines they will take every case individually those that deserves they want to go but these individual groups can stay those p

unfunded pensions, retiree health care, underfunded social security, medicare promises. that's the problem. they are not deficits and debts today but they will be tomorrow. >> two clocks on the stage, want to circle it back around. two clocks on the stage at the rnc. yet governor romney really focusing in his big speech about creating 12 million jobs in four years. can he cut debt like the way he says he wants to and the party wants to and create so many jobs at the same time? i'm hearing so much more about debt -- debt and jobs at the same time and i'm wondering if one is at cross purposes with the other. >> we'll see. these concepts, i think we can all agree on. we'd like to have a lower deficit. we can use this money for more productive uses. we'll see if the promises prescription can work. then you look at the details which are so difficult. this congress can not even reform the post office because they don't want to cut any local post offices in their home districts. so you can talk in a general way about cutting deficits. when you get to the details, people get col

you underfund entities like the commodity futures trade and the s.e.c. we don't have to guess. we'll have what we had before which is no regulation, financial interest being irresponsible with no check. >> eliot: kinard's book was one of the most self-interested of improper behavior i've ever read. it was a markable diatribe about government doing anything to ensure integrity in the market. >> he is very explicitly for and i heard him say this just last friday, if a bank is in trouble not because it made bad loans in particular but if there was the kind of economic problems that led -- we should bail them out. critical about -- i said to them boy, if i was running again, i would want you to come to my district and campaign on that. >> eliot: trumping the logic. switching gears for a moment, you have got ton do a little bit of a back and forth a log cabin republicans who are allegedly on their face. you called them uncle toms. you wrote a defense which i thought was incredibly persuasive. explain what this is all about. >> yes. i am all in favor of republicans who are otherwise

many of them making up rules many of them underfunded many without proper training for all of them involved to partisanship many who want to alter or bend the rules. >> eliot: partisanship has gotten in the way of easy reform that could overcome these mechanical problems. i want to raise one more constitutional challenge, which is the electoral challenge. what is this that we're talking about and why do we have it any more? >> it's a vestige of the 18th century. as it stands, it works and warps to voters. >> eliot: explain that. >> sure, basically in order to win the presidency you've got to get 270 electoral college votes. and you know, what you can basically do is really quickly take a look at which ones are solid. which one are guaranteed. >> eliot: democrats will win new york, why spend monday there. >> why spend monday there, you'll get new york's electoral college votes. all the campaigns concentrate on the swing states. we arewe hear about the swing states but it's the electoral college votes that have them focus on the swing states. the person who actually got the highest popular vo

i just wanted to add a point about the underfunding. samhsa reports that only 2 percent of people with severe mental illness actually have access to evidence-based supported employment. and, and the, the mismatch between what we fund and what is effective. what we know from some of our research is that in the long term, people who work use the mental health system less and so the savings, the cost savings can be phenomenal over the long term. one area, which we really haven't talked about a little bit is, individuals in recovery starting their own businesses. and i know you mentioned your husband is in recovery, and you want to talk about how he got into business? well, yes, he's in recovery and, fortunately for us, it wasn't out of necessity that we created our business of, you know, a safe haven. it was out of a desire to help others that may be suffering from something that he went through, but didn't have the resources to get the help that they need. so we decided, as a charitable thing, to just open up, you know, a recovery home. w

and it is about to get the governor's desk, lawmakers approved sweeping reforms to shore up the underfundedme that voted for the deal are not happy for it, joe vasquez joins us with details on what will change and what will not. >> it is the kind of thing we have been hearing about for years, maybe you have friends or fami h

pensions are underfunded because of the market crashed during a recession communal equities have recovered since then. ashley: rich edson, thank you very much. who on the government payroll are making the most money, if you are wondering. in tonight's top five from the most ridiculously overpaid government workers according to business insider. number five is a sewage worker in new york city making more than $197,000 a year according to the "new york post." christopher carlson of brooklyn were more than 2100 hours of overtime to bring home the huge paycheck. number four are lifeguards. like the beach. earning $200,000 per year in orange county, california. the two lifeguard chiefs at the newport beach area, raking in the big bucks says the city faces the highest debt in the county. number three is a suspended prison surgeon in california earning more than $259,000 a year. this despite being accused of incompetence. number two is a hospital executive at the university of texas makes nearly $842,000 a year. he is actually retired and takes on this monitor has philanthropy work rate and the n

that they are underfunded. undermanned. people do not have the experience they need.was said, not by me, but by a senator. the capital markets are a public good. much like a highway. we need to have clear rules about the speed limits and who can use the hov lanes. we need to make it clear what the rules of the road are. do you agree with that? >> i agree with that. i have a couple of caveats to it. when you are on the highway and doing 200 miles per hour in your ferrari and you hit a hospital zone, you have to slow down even though that ferrari can do 200 miles an hour. it is about rules. it is about common sense. it is about a very simple test, gerri. what we are about to do with a rule, a piece of technology, is it right for the most sophisticated ruler. take care of that person. they will be back in the market. everyone will benefit. connell: i had a traitor tell me this week speed kills. >> a fast price is not the best price. a fair price is what everyone seeks. you can go 200 that ferrari, you do not do it on a public street in manhattan. that is the answer. basi

coming conversions and we need technology so i think the manufacturing partnership which is mostly a underfunded, and has not been deployed should be supported and others have five times the help they provide their manufacturers. second i think exports. with only one per cent of our companies it is a staggering statistic and it's not just opening markets abroad. it is having a cultural familiarity and desire to go abroad and i think having the programs that can help manufacturers identify the markets and resources is critical you have to look for the tax policy. there is no doubt in my mind that china's policies are unfair not just to american workers but in my judgment unfair to their own middle class supporting the exporters in the regime at the expense of giving their own consumers access to the best products in the world and we need to make economic fairness the highest priority in our bilateral relationships with china and then on the tax policy we have to look at how do we incentivize manufacturers with the right tax credits to invest in the united states. >> i was wondering about export i

we have underfunded pensions across this country, at the federal level, at the state level.private and public. how can they possibly fix that and save the states at the same time? >> well, it's a big issue. many states are grappling with it. it is estimated anywhere from one trillion to $3 trillion of unfunded liability exists in the state pension programs for public employees across the nation. a additional $1 trillion unfunded liability exists in additional benefits like health care programs that states provide to retirees. so it is a huge issue. many states used consensus based process which they reached across the aisle, republicans, democrats, coming together, legislators and executive branch officials working together that will come up with a program to place the state pension plan on a road to viability but the sustainability of the current structure of state pension plans, ranks right up there with health care costs as the number two fiscal concerns for the states. ashley: david, what, well, what's the biggest chunk of federal money that goes to the states? what is t

the state's public pension funds are underfunded to the tune of $165 billion.he reforms are expected to save as much as $55 billion over the next 30 years. >>> a controversial proposition on the november ballot is designed to bring in more money for california. critics say this could backfire and cause the state to lose money and jobs. capital correspondent nannette miranda has the story. >> reporter: venture capitalist tom styer is trying to cement california's standing as the country's green leader by spear heading proposition 39 on the november ballot but how he wants to pay for the clean energy effort is controversial. take away what he calls a loophole allowing multistate corporations to it choose between two formulas when calculating state tax. was part of a late night deal in 2009 to entice republicans vote for the state budget. since then companies have chosen the farm la that means less money for the state. >> it is crazy to do that and we can't afford to give away over a billion dollars a year to companies from out of state. detroit automakers for exa

billion underfunded.bout $44 billion in benefits. where's this money going to come from? raising taxes? there goes all the families out of illinois. that's not going to help. all at the top of the hour. [ male announcer ] when this hotel added aflac to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! >>> a significant event ahead today for rescue workers and residents who lived near the world trade center at the time of the 9/11 terrorist attacks in 2001. the government is expected to announce it will officially recognize cancer amongst the illnesses that resulted from the dust emanating from the destroyed buildings. that means that victims and families will be entitled to financial compensation. up until now a law that compensated 9/11-related illnesses did not cover cancer because of an alleged lack of scientific evidence. so a tur

they have underfunded pension and it's a huge disaster. >> cenk: first of all the teachers did not create. and second of ram rahm emmanuel said he was going to increase the hours of the school. then he says i'm going to increase the hours and not pay you more because of the deficit. >> i should note, rahm emmanuel said you don't want to work longer. we'll hire teachers who will work in non-core subjects, physical activity, music art subjects like that so teachers continue to work seven hours a day. they'll receive a significant pay increase. but what they're disagreeing here is the evaluations. it's very unfair for the teachers. it seems like the teachers don't want to be evaluated. that's far from the truth. they are willing to be evaluated, but it's unfair to evaluate them based on standardized testing. there are so many students who are brilliantan but the standardize testing did not show their true brilliants. i was one of them. i did horrible on standardized testing. it does not show a student's talent as soon as and by the way you had a stellar gpa. it doesn't capture it. they say y

the schools need the help, they are overstretched, underfunded, but we also know that volunteering isn'tthe way, we also know it brings some resent. after all i did for the school, you gave my child that grade? >> right, right. >> it's not the standard of good parenting. if you are too busy, have a toddler at home, have kids in different schools, you don't have to feel guilty if you say no. >> it does become competitive among a lot of the moms there. >> that's what i was saying, never feel guilty they are not volunteering enough at school. it definitely is a mom thing. just say no or do what you can. there's a lot of volunteering opportunities either a night or perhaps a weekend or, you know, the one class trip during the year, which by the way, your child will probably remember going on. >> or may not want you to go. >> may not if they get a little older. definitely don't want you chaperoning the school dance, by the way. >> definitely don't want that. there's also some pressure for bake sales, first of all, not even allowed bake sales anymore because of the calorie police and the aller