increasingly the universities are investing their own endowment money on the ventures that are launched by their own professors. there was a famous case at boston university where boston university invested about one-fifth of its endowment approximately $85 million in the startup company that was founded by its own professors to read the university's president himself invested in this and encourage trustees to invest in the company and finally when the company's financial situation deteriorated the university was accused of mismanaging the university's endowment in order to prop up the company. so those kind of financial conflicts are unprecedented and it's a kind of commercial activity on the part of the university that is significant. why is all this happening? in my book i spend a lot of time looking at the various different forces that converged to create the situation. but here i will just talk about a few. one is the cut back in high year education. i'm sure people in the room are aware of this. most of the state funded universities have experienced serious financial strain. since 1980 there has been the shift state budget that goes to fund high your education has dropped

university in new york. that's part of the state university of new york, where i once taught, and it's a wonderful place. c-span: where are you from originally? >> guest: i was born and grew up in boston. i live in a little town near the airport called winthrop. c-span: and where did you go to school? >> guest: i went to school at the university of massachusetts in amherst, and upon graduation i enlisted in the navy, went to officer candidate school. a--incidentally, i--i received messages, e-mail messages, from my old boss, the chief engineer on my second ship after the book came out, i must say. c-span: how--how long did you serve in the navy? >> guest: four years or active duty... c-span: what years? >> guest: ... in the reserves. i--i think it's 1960--was at ocs in the late fall, early winter of 1960, graduated beginning of '61, and i got out of the navy in, i guess, february of 1964, and i entered harvard graduate school several months later, that fall. c-span: what ex--what impact did your ex--your experience in the united states navy have on the way you feel about the military here and the military in japan? >> guest: well, i had good experiences in the navy. you know, i look back on those years when i was very young. but the--being in the navy alerted me to the security relationship with japan, the us-japan security t