my question is a quick one that many americans peel that china has become the united states bank. and what you see the future and if you can give some highlights between u.s. and india financials? >> sure. >> i'm secretary a vice president of india, i'm sorry. >> okay. as to china, at the beginning, i pointed out that the notion of free trade in a world in which someone is manipulating its currency is bizarre. it's bizarre. now that doesn't mean i'm a big fan of chuck schumer or any of these people. but it is nutty. and the notion that china which holds the ious, that's somehow a benign fact is also crazy. they are coming here next week, sometimes, the chinese. they will, i believe, agree to modest sanctions on iran, at least meaningless sanctions. they will offer a little bit of currency fluxuation and flexibility in return for us making a private agreement to not sell arms to taiwan and a wh

we need large banks that have very, very sophisticated product capabilities. we have big companies in the united states that want to raise capital in, say, europe or asia or china or india. and american banks should be providing that versus foreign banks. i do worry that if activities are limited from american banks, the europeans will pick it up. there's no talk about this point of any of the products or services that we have on the table for potentially disappearing. there's no talk in europe, for example, of that happening. and i would worry a lot about the fact that we are the financial capital of the planet and i would hate to see unnecessarily i would hate to see a situation where we lose a lot of business to banks. >> woodruff: another... >> please, judy. i'd also mention, too, that proprietary trading, if you think about the last two or three years, it wasn't actually at the root of the problem, nor was a lot of the derivatives activity that took place. >> woodruff: it's interesting you say that just heard larry summers who advises the president talk about the fact that there was no ability on

get in trouble when other companies and to what extent we want as if banks that could cause problems to operate in the united states. we do not for example allow the citizens to banquet financial institutions based in iran. we of clear rules that prevent you from transacting with financial banks in various countries because we regard that as not consistent with our national interest. i think those criteria have to be reassessed. we should push our allies to come with us and make the banks safer. but if we want to cooperate i think we have to reassess what we allow them to do in the country with our financial system and remember the driver, what people want to participate in in this economy is the dynamism of the innovation, the new companies, the resourcefulness of the people and i think what i hope again we will once again be the resilient credit worthiness of the corporate sector and government sector. that's us. you get to work in the financial markets if you play by the rules. noss any other basis. it's the united states and that is to what you can say to the outside world. other countries by the way in all oth

the united states banks are closer to those standards most likely than the european and other banks are> thank you, steve. appreciate it. >>> straight ahead, mike huffman tracking the stocks beyond the big caps. >>> then it is time to go off the charts. amazing amazon, the company reporting after the bell, trading at an all-time high. should you buy it or not? two minutes' time, we'll give you an answer. >>> the dow in the back stretch of this trading day coming back just a little bit. welcome back to "power lunch" as we look at some of the stories we're following at 36 past the hour. >>> us airways ending its tie-up talks with united airlines. centurytele looking to buy quest communication. and two economic reports find home sales rose sharply last month and jobless claims fell last week. michelle? >>> we want to go beyond the big caps, finding smaller names that are big movers today. mike huffman is standing by with those. >> i like to do theme stuff so i'm doing lunch box for "power lunch." in addition to starbucks, the coffee giant, a big food chain is providing more anecdotal evide

that is the experience of a lot of countries and the united states in the 1930's. the big banks are becoming bigger. to be to fail now and they will become too big to save. they have a funding advantage and their attitude is let's get bigger. the markets allow them to become bigger. this is not a market outcome economy in this regard. this is people who captured the state and the intellectual rall missile but is not that of the left as site thomas jefferson but i would stress for the modern thinkers how much we john johnston cord university chicago professor in the free market school who was worried about regulating capture and absolutely right to worry about that. but what we see is state captured. he got a prize for this work. it's take that further and think about the state being taken over and twisted to the end of your particular interest group. how did we get here? how did we find ourselves in this awkward on a pleasant secretion? the answer is pretty simple. i mean i know there are many dimensions to what happened prior and we go through that in the book and there are ma

the second bank of the united states is a well-run bank. nicholas biddle was a charming character by all accounts. and jackson was struggling to really get his point across, though he didn't have that much going on capitol hill. and yet even less support was nicholas biddle started to run for the trunk urge people to vote in his direction. but as biddle thought back and as biddle extended the campaign contributions, and as biddle, when biddle said on contracting in order to make the point that you cannot reina us and how much people believe that jackson was onto something. and this is what jefferson was warned about. feet they debated these issues at the beginning of the republican hamilton was right i would say are most or much of the economic substance, but jefferson -- that's what was on the boat. represent have a very important point which is absolutely correct, which is you must fear the arrival in the entrenchment of the financial aristocracy. that's what jackson paced and prevailed against. that's a teddy roosevelt faced very similar

united states. same with the banks. they have been caught with their hands in the cookie jar, or the piggy banks or whatever. and they still are able to effectively bribe the members of congress to dilute the legislation that should be passed to properly regulate. >> they completely thumb their noses at the white house. >> and they can charge on their credit cards interest rates that used to have the mafia sent to jail. >> this is nothing new. will rogers talked about the best government money can buy and we still have that in the united states. and that is not a free society, it is a bought and paid for society. >> this is true. can i just get back to banks for a second? recently citibank sent me changes in my account in about -- i don't know. >> 50,000 tiny, tiny words. >> i have two magnifying glasses. >> if you don't like it, what are you going to do about it? nothing! >> nothing! >> well, i have very good news for our viewers. the marvelous thing is that our viewers can turn this program off without penalty. you ca

andrew jackson thought the second bank of the united states was too powerful in the 1830s. and a lot of people thought andrew jackson was great. you know, he took a bullet our in his career. the second bank of the niceties was a well-run bank. nicholas little was a charming character, by all counts. and jackson was struggling to really get his point across that he didn't have that much pull on capital hill and had the support once nicholas start to spin freely to encourage people to vote. in his direction. but as google fought back, and as biddle extended the campaign contributions, and as biddle, when biddle said i am contracting credit in your to make the point that you cannot reign as in, people began to understand that jackson was onto something and this is what jefferson one. is what jefferson warned about. jefferson and hamilton debated these issues and hamilton was right i would say on most or much of the economic substance but jefferson, jefferson had a very important point which is absolutely correct. which is, you must fear the arrival and the intention of a financ

many people feel that china has become the bank of the united states. how do you feel about that?>> as to china at the beginning i pointed out that the notion of free trade in a world in which someone is manipulating currency is bizarre. it is bizarre. that does not mean i am a big fan of chuck schumer or any of these people, but it is money. the notion that china which holds quite a lot of our ious that that is somehow of the ninth fact is also crazy. they are coming here next week sometime, and i believe they will agree to modest sanctions on iran. i think they will offer a little bit of currency fluctuation flexibility, in return for cuspsus doing a private agreement to not sell arms to taiwan and a whole bunch of things that they want. the president would not let the dali lama in the front door. he used the back door which he reserves mostly for israelis. [laughter] . india you noticed the president ha .no carrierringconnect 1200 . . so i think we have to stop predatory acts by unculp bents. it wouldn't bother me if we had a rigorous stand in relation to market share. i'm not

the worst bank in the united states and we put our money there. we also considered bank of america which wasn't quite as insolvent as citigroup so we didn't put our money there where if things were functioning normally be should have put our money in a local community and that was solvent. >> host: right and i always feel grounded by invest my money into short-term cds of the failing banks. after the crisis started banks that offered the highest interest rates under the cds with the countrywide banks coming under but you knew that your money was safe because it was invested and guaranteed by the fdic and so this is a distorted market on many levels. boris madoff is a cpac or psychopath? we haven't really gotten into the personal element here. he's a person in analyzing this nearly a decade what on earth do you think made him do this? have you ever spoken to him or communicated with him and it has always been assumed his family knew about this and that his wife knew if it was possible for him to trick the fcc for so long would it have been possible

andrew jackson fought the second bank of the united states was too powerful in the 1830's and a lot of people felt andrew jackson was crazy. he took a bullet early in his career. they said the latest seeking out of the bullet. the second was a well-run bank, nicholas biddle was a charming character by all accounts. and jackson was struggling to get his point across though he didn't have that much support on capitol hill and even less support once nicholas biddle started to spend freely to encourage people to vote in his direction. but as he fought back, and as nicholas biddle extended the equivalent of the campaign contributions and as little contracted the point that you cannot reena san people began to understand jackson was on to something, and this is what jefferson born about. jefferson and hamilton debated these issues at the republic and hamilton was right and jefferson, this is how we started the book and jefferson had a p absolutely correct which is you must fear of the rifle and the entrenchment of a financial aristocracy. that is what jackson faced and prevailed against and

bill where the federal government wants to decide who will get credit in the future of the united states. what a bankr in illinois will make and give permanent bailout authority to the federal government and bypass congress that is the federal government coming in in a thuggish way, if you will and taking over the boardrooms of private industry. this is what makes people unsure about their government right now. >> sean: i think a lot of people are raising legitimate questions about the debt. about the deficits. about a weakening of our national security. abouti, a lack of moral clarity in the war on terror. these are legitimate questions. there seems to be a coordinated effort to intimidate, silence and demonize any critic of this administration, this house of representatives, this leadership. you in particular have been singled out. i want to know what do you think is behind this from your perspective? >> well, one word we've heard a lot in this last week "violence." when people on the right are disagreeing with the obama administration we are fomenting violence. i think violence is when the democra

bank in the nation. it's owned by all of us taxpayers, 34% owned by the united states government so we felt they were not at risk of going down. they were in the west bank of the united states and we put our money there. we also consider the bank of america which wasn't quite as insolvent as citigroup so we didn't put our money there. where things were functioning normally we should have put our money in the local community bank that was solvent. >> host: and i always joke about all i invest my money in the short term cds of failing banks. after the crisis started banks to offer the highest interest rates on the cd is for the countrywide banks that you knew your money was safe because it was invested in guaranteed by the fdic and so this is a distorted market on many levels. was madoff a cicione hat or psychopath? talk about we haven't really gotten into the personal element here. he is a person in analyzing this from the early decade what do you think made him do this? have you ever spoken to him or communicated with him and it has always been assumed his family knew, his wife knew. it was possible for

many people feel that china has become the bank of the united states. how do you feel about that? >> as to china, at the beginning i pointed out that the notion of free trade in a world in which someone is manipulating currency is bizarre. it is bizarre. that does not mean i am a big fan of chuck schumer or any of these people, but it is money. the notion that china, which holds quite a lot of our ious

reminds me of rescuing the auto industry in the united states. or the banks. you know, this is greece, the country, within the euro, is it too big to fail? there is far more at stake than simply greek membership of the euro. if greece cedes from the union, who is going to be next? that's the assurance the market is looking for right now. a simple statement on the table that there's $45 billion available, we'll see about it next time around, won't cut it. >> marc, this is christine. i want to ask you this from my point of view here in asia. we all remember the asian financial crisis and how the imf got involved. are you also a skeptic when it comes to imf involvement in the greek rescue package? will it mean a lot worse for the country? >> a lot worse? it probably certainly means there's going to be a lot more strings attached. and it certainly makes life difficult within the eu. i think if it winds back the tapes here, really what we have to consider is, how did we get into this mess and essentially what it boils down to is nothing to do with greece at all. it

united states by impeding the i.r.s. department of justice documents went on to say swiss bankers made 3800 trips to the u.s. to market swiss bank secrecy to united states clients interested if attempting to evade the united states income taxes. which prompted the i.r.s. to establish a new unit. >> we have a new global high wealth operating unit, where we are taking a unified look at the entire web of business and economic entity controlled by high wealth individuals. >> i think the attitude is there is gold in them there hills. >> made easier when u.b.s. agreed to turn over the nameses of u.s. citizens who have assets at the bank. >> it was a $20 billion program. 19,000 american taxpayers. i use the word loosely because they were not taxpayers, but theoretically should have been taxpayers. >> reporter: the i.r.s. offered amnesty for those who came forward voluntarily and some 15,000 americans did so to avoid prosecution. bradley burkenfeld at american working for u.b.s. was the original source of all the information about americans evading taxes. ironically, he is serving 40 months in jail for his evidents. ep though he exposed

trouble in other countries and to what extent we want massive banks that could really cause enormous problems to operate in the united states. we do not, for example, allow u.s. citizens to bank with financial institutions based in iran. we have very clear rules that prevent from you transacting with financial -- with banks in various countries because we regard that as not consistent with our national interest. i think those criteria have to be reassessed. we should push our allies to come with us and to make their banks safer. but if they won't cooperate then i think we have to re-assess what we allow them to do in our country with our financial system. and remember, the driver -- the big -- what people want to participate in, in this economy, is the dynamism. and once again it will be the resilient credit-worthiness of the corporate sector and the government sector. that's us. you get to work in our financial markets if you play by our rules. not on any other basis. it's the united states. and that's the way it works and that's what you can say to the outside world. other countries by the way -- not all other countries h

we probably could imagine a different path with a central bank for the united states during the 19th century. maybe that would have been good. we didn't have that. but we also didn't have an economy dominated by a few very powerful finance years distorted in the way that other places state and other places struggled with in the century including europe and latin america. i think andrew jackson made the right call. we can argue on the economics, politics -- you know, you probably guessed from my funny accent i am an immigrant. i've been here 25 years, citizen for ten years. i thought long and hard before becoming a citizen. i took a test. who became a test before becoming american? there you go. a few of you. did the rest of you even know there was a test? i did well on the test. i think we have a very good constitutional framework and iain incredibly strong position but as far as i can see from my reading then and now there is nothing that says we have it forever. there is nothing written or assured that says you don't get taken over and don't get a distorted like so many other count

andrew jackson thought the second bank of the united states is too powerful in the 1830's. and a lot of people thought andrew jackson was greedy. you know, he took a bullet early in his career. they said the lead is looking out of. the second bank of the united dates with a well-run bank. nicholas idol was a charming character by all accounts. and jackson was struggling to really get his point across, but he didn't have that much support our capital hill deity the most support once because biddle started to spend freely to encourage people to vote in his direction. but as adults thought back into adult extended the campaign contributions, and when transfers that i'm contracting credit in order to make the point that you cannot bring a sin, people begin to understand that jackson was on to some and. and mrs. what jefferson had warned about. see jefferson and hamilton debated the issues at the beginning of the public and hamilton was right there with the almost or much of the economic substance, but jefferson this is how we start the boat. jefferson had a very important point

but he fought valiantly against the second bank of the united states which was the first great central bank of america because they had 120 years earlier than renewed it in jackson fought it with everything he had and prevailed and it was a great triumph of one system already becoming corrupt because nicholas biddle was using it to elect his own friends. central banking has sent them. jumping ahead 1907 we have the point* of extraordinary growth during this period with long stretches of hard currency where gold and searle silver or gold alone are the only real basis of the currency where there is no filed printing except for money goes crazy, a great immigration because serious new jobs in industries with doubling or tripling the population of the united states and creating the world's greatest civilization in this is all done without a central bank without a federal reserve for anything like that. it is our great was a fair point*. so that was chilly laissez-faire and the democrats were more than the republicans at the time. the great free marketers. it happens periodically pro-growth

bank of canada closely hiking. is there any possibility for contagion over here for the united states with that? well, actually, the bank of canada yesterday said that they were going to hike, that they were -- they had told us previously that they likely wouldn't hike rates until after the turn of the mid year. now they're telling us it's probably going to be quite quick when they move to raise rates. the question now is how much will they raise rates? the impact upon the fed is going be minimal. the fed has no intention whatsoever of tightening monetary policy here in the united states until much later this year. so the canadian dollar, it has moved rather dramatically higher in the course of the last 24 hours, nicole, and well it should. all things being equal, canada looking closer to the united states except stronger economically, now with higher rates, capital is moving to canada, that says it should be. >> the first g-7 country to do that, how significant is that? >> actually, it was more significant that australia had already moved. canada is going to follow. the rest of the g-7 will fol

state of the union address, creating and sustaining clean energy and green jobs. so to talk more about that, joining us live is fred hottsberg, president of the export and import bank of the united states. joining us light, bright and early on the west coast of the united states. now, the obama administration wants to double exports in the next five years. that was laid out in the state of the union. how do we do that? >> well, we do that to export a lot of american goods and services around the world. the world is rebuilding at a rate we have not seen in decades, perhaps more than ever before, building roads, airports, power generation. so it's gloeg growing at a rapid rate. american economies make the product to fooel fuel that need. >> well, it seems as banks are deleveraging, the small business is the guy that suffers most. that's where the export/import bank really comes in. that's where your role is key. how do we become more of an export driven economy where we're looking at 10% compared to almost about 50% in germany? >> you're correct. we're at about 10.5%. germany is just under 50%. we actually, if you look at the first two months of this career, january and february,

review describes how the united states will reduce the role and numbers of nuclear weapons with a long-term goal of nuclear free world. >> ifill: paul solman explores small community banks versus institutions deemed too big to fail. >> size does matter but you don't need to be a large institution in order to be successful as a financial institution today. >> lehrer: and we get an update on the deadly wave of bombings in iraq from rod nordland of the "new york times" in baghdad. that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by:

a surveillance program of communications coming into and out of the united states, and some financial programs having to do with banks in europe. these were top secret programs that the bush administration believed were very, very effective in fighting this long war, and "the new york times," after listening to pleas from the highest levels of the bush administration, published those stories, and we all learned about what is short-handedly called the domestic surveillance program and the like. and "new york times" won a pulitzer prize. is that a good thing? and on the -- i've been imbedded a few times in the war in iraq and afghanistan. there's a big debate about the role of the report on the battlefield. do we have to rethink both the role of the media and even perhaps the first amendment when we're talking about this struggle. do you want to take a crack at that? >> if i could just place the question a little broader context in terms of the degree of transparency that now exists in any war that we're fighting. now, you mentioned a negative sort of consequence of that, which was compromising techniques to fight our

united states of america. it was sort of like the banks had their lives in conduits wittes were off-balance edn with implicit guarantees. that was a little bit like what fannie and freddie were. we were racing against time to stabilize those before we knew some bad earnings were going to be coming out from the bank sector in particularly the lehman brothers losses so that was a race against time. we were fortunate that we were able to get it done without the markets becoming spooked or unstable, so that is why what i had heard in china got my full attention. >> there is a front-page story in the journal this morning about freddie and fannie, and it is very much worth reading. i believe that said there is now 111 billion that has been put in by the federal government, but it is expected that much more will so in effect, it presently looks like the federal government will lose more money and freddie and fannie vanden aig by some markets. >> when i look at these programs overall, we will get every penny we put in the banks back with a profit. and i think when you look at all of the other programs, we may be surprised at w

bank in the nation. it found by all of us taxpayers, 34% owned by the united states government, so we felt they weren't at risk of going down. in the united states we put our money there. we also consider bank of america, which wasn't quite as insolvent of citigroup. and so, we didn't put our money there, where things were functioning normally, we should have put our money in a local community bank that was all that. >> host: right, and i always invest my money in the short-term cds of failing banks. i mean, after this crisis started, banks that offer the highest interest rate on their cds with the countrywide things going under, but she knew your money was safe because it is guaranteed by the fdic and so this is a distorted market on many levels. was madoff a sociopath or a psychopath? we haven't really gotten into the personal elements here. he is a person. in analyzing this for nearly a decade, what on earth do you think made him do this? have you ever spoken to them or communicated with him and it has always been assumed that his family know about this, that his wife knew. it was possible for him to t

that money allowed the united states to purchase the largest banks in this country and the united states federal government still owns those private banks. city bank, bank of america, that money also athroid federal government to buy a.i.g., the largest insurance company in america. barack obama, who is now our president, was elected in november of 2008. shortly after his election, he went to then-president george bush and said, president bush, i would like to have something under $20 billion, i want to set up an automobile task force because if we don't spend money now, chrysler and g.m. could fail and to prevent their failure and to prevent job loss we need to have an automobile task force fund. so president bush was on his way out the door, ending his presidency, president obama was about to begin his he gave that amount of money over to president obama and his team to set up the automobile task force and we all know what happened. the automobile task force was set up, literally billions of dollars were pumped into chrysler and g.m., and what happened? chrysler filed bankruptcy. g.m.

banking model. >> have an apartment in the united states. you would've had investment to investment to your securities. as i remember, that didn't get publicized much, but it was a huge shock. did they consult? >> if they did, it wasn't with me. now remember the icc was the regulator. the sec with the regulator for the lehman brothers and was the one that had the lead in preparing for the bankruptcy, you know, because we knew that was going to be a possibility. we hoped to avoid it. and they were the ones that would have been talking to the various authorities during that period of time, but it sure came as a surprise to a lot of investors in a surprise to me. >> hank, you and i own an entire investment trading firm in its early family asset can't tell it. and we've got all these people making lots of money. your head of the compensation money. what sort of arrangement do you have with them? is anybody make 25 or 50 million a year? how are you going to treat these people so that they keep money for us and they don't leave and go someplace el

and looks like stronger than expected income, and this will help a lot of the banks in the united states including companies like goldman sachs which also had a relatively good day. finally, i want to note rail cars and i don't normally talk about rail cars, but these are companies that make parts and equipment for the railroad industry. all doing a little bit better in the last five or six or seven trading session s which is interesting there. is not a lot of news out here, but business is slowly getting better. maria, back to you. >> thank you, bob. with dow at 11,000 and the start of earning season moments away, how should we be investing in the environment going forward? joining me to talk about that is tony dwyer with collin stewart and dan greenhouse, with miller taback, and david faber and sue herera. tony, would you put new money to work right now ahead of the first quarter earnings season? >> no. you could walk in tomorrow and have a two to three percent correction. you have to look at the market dislocation of what we went through in the last ten years and these returns are his

united states. we do not allow u.s. citizens to bank with financial institutions based in iran. we have very clear rules that prevent you from transacting with financial banks in various countries because we regard that is not consistent with our national interest. i think those criteria have to be reassessed. we should push our allies to come with us and to make the bank safer. .. >> it is great to be back here at the colony library i had a great time last year. the basic question why chronicle and commemorate the word list of calvin coolidge a president renowned for doing nothing and for saying less. to us because the premise of the question is ee flawed. they would be you silent cal coolidge as a fill your who as a man who not only accomplish nothing but one pundits famously charged possess a veritable genius for inactivity. that all depends on how one defines an activity, and presumably he meant to dam calvin coolidge as the and imaginative listless neater and that is bad. but if it activity is defined as a spirited brilliantly eloquent act of opposition to government interv

out the fact that in canada where there's actually a higher concentration of the banking industry than in the united states prey to the same kind of excess that we found here in the united states. we also need, and i know the chairman and chairman lincoln are working through this on the question of derivatives. where should they be housed? because they do provide important tools it when used appropriately. and there will be a spirit of debate whether we should break off derivatives functions from financial institutions. i look forward to that discussion. but i do want to make sure that simply breaking off these products into a more unregulated sector of the industry, we get an effect if we don't do it right create a greater harm down the road than we've got right now. so the first challenge is to make sure that we don't fall prey to the simple solutions and recognize the complex of these issues. the other challenge that we have to be aware of is the converse. i know the chairman has heard, the i know the presiding officer's heard, any of us who tried to get into this issue, have had folks from the financia

banking model, the liability of the model. >> that wouldn't have happened in the united states. he would have access to your securities.as i remember that was -- it didn't get publicized much but it was a shock. did they consult -- >> if the date it wasn't with me. remember the fcc was the regulators of the fcc was the regulator for lehman brothers and was the one that had the lead in preparing for the bankruptcy because we knew that it was caribbean in possibility and we hope to avoid it and they were the ones that would have been talking to feed various authorities during that period of time. but it sure came as a surprise to a lot of investors and a surprise to me. >> hank, you and i owned a huge investment banking and trading firm and it's our only family asset. we can't sell that and we've got all of these people making lots of money. you are the head of the compensation committee. what sort of arrangement you have? can anybody make 25 or 50 million a year? how will you treat these people so they don't leave and go someplace else? >> we have to talk about what it is we are doing. >> let's say we are doing it today

bank bailout a lot either. no. they're questioning the birth of the president of the united states and using violence-tinged languageng to the lowest common denominator at tea party rallies deliberately doing it over and over again. that's just irresponsible. >> you know, errol, we've had violence in this country affecting ron's family, our country. we're out of time. we all know what we're talking about in the weeks up. thank you, ron reagan errol lewis. >>> i'm going to have thoughts on moderates and middle of the roaders. a. [ male announcer ] missing something? like 2 pairs of bifocals for $149.99 at sears optical, with progressive lenses for just $25 more per pair. hurry in to sears optical today and don't miss a thing. (announcer) regular kool-aid. goes almost three times further than soda. kool aid. delivering more smiles per gallon. she told me ok, maybe it wto kill the weeds. and you did. along with the grass. i used the wrong stuff. there were dead spots everywhere. this is the right stuff. ortho weed b gon max. it kills weeds down to the root. even the tough ones like dandelion and crabgrass. but unlike t

today, the federal government literally owns banks, the largest insurance company in the united states. the federal government owns over half of all home mortgages today in the united states. chrysler, gm, the student loan industry and now health care. you add all that up and it's 51% of the private economy, for the first time in the history of our nation. the federal government owns or controls 51% of the economy. that's not what we have been in the past. we are a free market economy. this is completely the antithesis of that. >> i think people are disappointed that the taxpayer dollars have been used to do things to bail out people that got themselves into a mess they were in and many americans are waiting for their bailout. all attention being put on wall street and not enough attention on main street. that's not a white argument, a tea party argument. i think a lot of americans who feel that way. the question is what do we learn from the fact that the new york times/cbs news poll suggest that so many in the tea party movement think that the president himself is un-american and that

united states. yet neither wants to contemplate the major reforms needed to banks. i think we owe it to future generations to make sure the implosion in our banking system never, ever, ever can happen again. >> we are going to have to leave this question. we are moving to a question from beth anne. >> i am an immigrant and have been in the uk for 13 years. i recognize that immigration is becoming a problem in the country. what measures will you introduce to make the system more fair? >> how would you make immigration fair? >> first, iten the borders so we no who is coming in and who is going out. previous governments removed the exit control. i would want to see those reinsmalled immediately. we have ef right to police our borders. secondly, i would make sure we direct people who come to and work in this country to those areas in the country where of course i have a job and have someone that can voich for them. this is not unreasonable sprain placed on public services. 1k3* thirdly we have to do something about the legacy of the chaos. lots of people are coming here

united states overseas. what should be done here, what should be done rather than this exercise, as the fed has said, in causing a highly disruptive and costly effect on banks and their customers and having serious consequences on the competitiveness of the united states? remember, we are competing in the world. that may have escaped -- escaped the attention of the agriculture committee when they wrote this language, but we are in a world competition on the -- derivatives are not a unique american product. they are a world product. so these are jobs that go overseas, this is credit that goes overseas, this is business that goes overseas, this is main street that will be affected by this language. how should it have been done? well, it should have been done in a rational way, not in a punitive way. we know that the derivatives market was not transparent enough. we know that there was not enough capital, liquidity, margin, whatever you want to call it, behind the products and the counterparties that were exchanging products in the derivatives markets in the over-the-counter system. we know, because we got a.i.g. as example number one, that a tremendous amount

outside the united states, some people point the finger exclusively at washington and at the united states for the cause of the world recession. but i also read in newspapers that some central banks of other countries and some private investment banks of other countries bought into the same mortgage-backed securities and derivatives without taking a look at what it was they were buying and not having a clear sense of what the value of what they were buying was. is it accurate to strictly point the finger at the united states and say this is a u.s. problem that sunk the world into a massive recession? >> you are absolutely right. this crisis was so damaging both here and around the world because it was a global crisis in many ways. the causes were global in many ways. we messed up a lot of things here but the crisis wouldn't have been as severe if it hadn't been accompanied by a set of policy choices outside the united states that made many countries very vulnerable. just to give you an example. so even with all the mistakes we made in our financial system, our system still was relatively small with respect to the share of our economy. the best example, if you look at for the smal

united states. this is where we were born. we can out of the bank of america card and we've been at it the longest here and have the largest product suite. however call our growth places where we are growing the fastest tends to be places like asia pacific, latin america. so when you look at something like australia where the regulators took in my view an extremely ill-conceived course. thus far they've refused to back down and you look at the empirical data. with the reserve bank of australia thought was that by artificially suppressing interchange it would somehow benefit consumers and they were also hearing from the very few because in australia the merchant population is fairly concentrated. merchants who said what we would like you to artificially lower our costs. they did artificially lower the cost of the retailers. so the retailers and the austral the rpf was for digital currency and retailers elsewhere in the world. but not surprisingly those retailers didn't lower their retail crisis. they didn't provide extra coupons. they didn't provide

united states overseas. what should be done here, what should be done rather than this exercise, as the fed has said, in causing a highly disruptive and costly effect on bankstheir customers and having serious consequences on the competitiveness of the united states? remember, we are competing in the world. that may have escaped -- escaped the attention of the agriculture committee when they wrote this language, but we are in a world competition on the -- derivatives are not a unique american product. they are a world product. so these are jobs that go overseas, this is credit that goes overseas, this is business that goes overseas, this is main street that will be affected by this language. how should it have been done? well, it should have been done in a rational way, not in a punitive way. we know that the derivatives market was not transparent enough. we know that there was not enough capital, liquidity, margin, whatever you want to call it, behind the products and the counterparties that were exchanging products in the derivatives markets in the over-the-counter system. we know, because we got a.i.g. as example number one, that a tremendous amount of c

bob reuben were in the late '90s, to argue that the president of the united states at the time that the money was delivered to the banks't a man named president george w. bush is intellectually dishonest and directly manipulative of your desire to try to serve the interest of your special community, to try to accumulate power at the expense of the truth, matt. >> well i'm not arguing that, dylan. if i were -- >> so knock it off. >> if i were, you would be right. but i'm not, george w. bush gave us the bailout. and by the way, let me say, tea partiers, go look at who voted for the bailout, if you don't like it and vote them out of office. it's a lot more republicans and a lot more democrats. >> i like how he's populism when it's against wall street. isn't that convenient? i thought the tea partiers were all about populism. all of a sudden, it's no, no, protect wall street! nonsense. >>> next, a mixed verdict from the first independent at president obama's health care overhaul. the plan does cover more people, that's kind of the, that's how they get you in there and then it raises costs and takes care of every special in

banks and the people that work for them. and their investments around the world and around the united states. and i think anything that would be that massive and changing would go way beyond what could be accomplished in congress. don't overlook the value of the bill that we are debating. this bill really takes an important step forward to avoid a rerun of the recession we've been through. what you've talked about seen more massive restructuring. but i think it may be beyond our grasp. >> senator, thanks for the time. i know you got to run, i appreciate it. >>> joining us now, senator blanche lincoln, democrat from arkansas. senator lincoln, your reaction to the president's speech? >> i think the president is right on target in the sense that we really do have to get to the bottom of this. we've got to get true reform out there, we've got to get transparency out there. i think it will be instrumental in putting our economy back on track and building confidence among consumers and the marketplace. not only in the u.s., but worldwide. >> the president saying today, a vote for reform is a vote t

they had, we, the united states, the palestinians accepted the fact there would be a moratorium on the west bank but in jerusalem, jews could live wherever they wanted to live. >> neil: this was just for show and its the way they treated benjamin netanyahu -- it's is not show. what they did is they wanted to make israel into a pariah. it's outrageous in my judgment. the shocking thing is the support of israel in congress, they had a party, count on us. but they haven't stood up and said to the president, you're wrong on this, mr. president. >> neil: mayor, you're the only one in manhattan who is saying this. so why is that? >> well, there's several reasons. some would say chuck schumer is a great defender of israel, one of our -- >> neil: he couldn't have sported this treatment. >> what he says is he's working behind the scenes. if you talk to anybody else they say we're working behind the scenes. if must be very crowded there. [ laughter ] but chuck says if he's unable to get the obama administration to change his position, he will be speaking out. that's what he told me. >> neil: but they didn

united states. maybe he assumes the united states needs him and so it's a standoff. i don't know. >> yeah. i think what's the line when you owe the bank trillion dollars, you owe the bank a billion dollars the bank is in trouble. >> charlie: go ahead. >> he's got a fair amount of leverage and i think he recognizes it and he recognizes that i think we're in for the long haul to a certain extent. >> charlie: when you talk about the american effort, how successful has the state department side of this -- the richard holbrooke side of this taken hold? >> you know, i actually think there are limits to what you can do, as dexter said, in kabul because it's so kind of sclerotic there. and that the real diplomacy, where there is room for it is at the local level, provincial and district level and military and civilians, that's where they think they have hope and that's where they think they can make progress. >> charlie: how is mcchrystal different? >> from the last guy? >> charlie: yeah. >> he's different mostly in emphasis, but he is totally committed -- totally committed -- i mean, in every conversation -- to the overall strategy which is

there have been over 200 bank failed in the united states since january 1 of 2008.many of which did in fact, to millions of dollars to the deposit insurance fund. this institution was not one of those. there was no cost to the taxpayer or to the deposit insurance fund. my second point is that a majority of washington mutual mortgages were in california, florida. to other states that were particularly hit hard with the most severe price declines in real estate. and a third point i would make that i think is very important is that washington mutual suffered from a lack of diversity in its asset portfolio because of restrictions imposed by the statute under which it operated the diversification that took place was all in area of real estate related loans that if you added all of the assets together, with the 800 approximate institutions that ots supervisors, it would total probably a trillion dollars, maybe a little bit more today. and you would criticize that institution today because of its concentration in real estate loans. it is a problem that i believe congress n