in a shameless attempt to capitalize on the volcker rule, i tried the semi-biblical volcker know thy enemy. [laughter] now, that was rejected as too narrow. i mean, how many commercial bankers are there? fewer than before, we know that. someone else suggested a much more expansive volcker rules. [laughter] and now that was cute, and the knell on my left, the -- the fellow on my left, the tall one, he loved it. [laughter] but it was knocked out because as the poet said too cute ain't cute. so instead we took the title, "the triumph of persistence," and that's was that describes how paul volcker did what he did. in researching this book i had access to both the personal and professional sides of paul volcker. he dumped into my lap the entire contents of a walk-in closet in his apartment. [laughter] including the elementary school report cards that had been carefully preserved by his mother. he also authorized my reviewing his extensive fed correspondence held in the archives of the federal reserve bank of new york. the fed did not like that one bit. [laughter] federal reserve makes the

the volcker rule label was announced to the press by obama january 2010, paul volcker by their role. -- by the president. he heard his name and thought what is that? i think the phrase in the book describing paul volcker is the man who could find fault with the mona lisa. [laughter] he made a living saying no. goldberg 1970s one. inflation 1979. speculation 2010. the underlying story line is trust which is the title of the last chapter of the book you can go there and skip the stories obama appointed him chairman of the advisory board the former president of italy wrote paul volcker a letter that still sits in a coma frame on his desk that says we trust you. and i show how he earned the trust and to follow-up with the lessons he learned about trust and his father senior 1930 through 1950 had a quotation from george washington hanging in a frame behind his desk in a letter he wrote to his officers at the time it said do not suffer your good nature to say yes and you ought to say no. remember it is not a private cause to be injured urban if it did buy your car is" he has said no ever s

if you by this one or paul volcker, you will make enough money.t zuckerman is a guest all the time. for anybody who wants to become a star in the real estate world, boston properties, breakfast, power breakfast with mortgage. mort. >> meet president clinton and obviously everyone wants to hear from former president clinton especially he solved the fiscal cliff if we recall. many years ago. liz: we had a nice surplus back then. >> yes, we did. liz: behind the scenes at facebook is another one. is this newer item? >> never had this one before and this with the top executives there and that's going to be a great time. liz: mark zuckerberg, will be there? >> we're not promising that but you will have to go and find out. >> lunch last year was the second highest bid outside of a meeting with the pope at the vatican. so we have 24 hours to get this up. okay? substantially. liz: 24 hours, everybody. before we go, you, bob have been known as the president's ear right for banking. >> i'm very close to him. liz: what is happening with the fiscal cliff, him

well, paul volcker -- that name may ring a bell. in 1971, paul volcker was an unknown working for another american. henry kissinger, who you may have heard of. before he became secretary of state. he was still national security advisor. volcker's paper, which are when i read a few years ago, i thought it was the most remarkable document ever to emerge from washington in the last 50 years, 60 years. asked a simple question. now that america is losing its surplus, looking at the emerging economies of the world -- primarily germany and japan at the time -- how will we retain our hegemony? he said we could not recycle our own surpluses. we must recycle other people's surpluses. and this is what happened between the mid-1970's and 2008. the u.s. utilizing its trade deficit with the rest of the world has been operating like a huge vacuum cleaner. sucking into the united states the net exports of europe, japan, and lately china. thus providing exporters -- germany, japan, or china -- with the requisite demand necessary. so, the ever expand

well, paul volcker -- that name may ring a bell. in 1971, paul volcker was an unknown working for another american. henry kissinger, who you may have heard of. before he became secretary of state. he was still national security advisor. volcker's paper, which are when i read a few years ago, i thought it was the most remarkable document ever to emerge from washington in the last 50 years, 60 years. asked a simple question. now that america is losing its surplus, looking at the emerging economies of the world -- primarily germany and japan at the time -- how will we retain our hegemony? he said we could not recycle our own surpluses. we must recycle other people's surpluses. and this is what happened between the mid-1970's and 2008. the u.s. utilizing its trade deficit with the rest of the world has been operating like a huge vacuum cleaner. sucking into the united states the net exports of europe, japan, and lately china. thus providing exporters -- germany, japan, or china -- with the requisite demand necessary. to keep the factori

how far we've come where now in the world of money ah ha kodesh policymaker at a central bank like volcker is referred to as. hard money central banker and that my friends is hard money. all right let's wrap up with loose change dimitri we can delve more of this fun video that we showed at the beginning of our show have you ever wondered what three hundred fifteen billion dollars in gold bullion looks like well a certain chemistry professor whose name is martin holy a cop visited the gold vault at the bank of england how did he get that i did not accept to find out here's a look. i've never seen so much go in front of the season so much of any elements so we're standing here and each show here it's got a ton of go which is worth thirty five million pounds. so a fifty six million dollars not taking out a lot of space i'm just so impressed that this guy got access to the bank of england when do you think we'll see this in the new york fed well i never know i mean they did have an audit you know ron paul wanted like a real legitimate audit in the parking lot it they might do something like th

. >> reason that volcker rule was put into law,ecause some of the banks had been actually betting againsteir own customers, they urged them to get into a fund, then 1 they were in the fun, the bank took opposite position, there is a dup exty of interest between the bank, the volcker rule would stop that by disallowing the proprietary trading. tracy: i worry most about the fees, that we will be nickeled and dimed to pay for this. the big banks are smart, it will trickle down to us, community banks will get killed. every time we make a trade, we as little people will get hurt. i'm not sure i agree 100%, but you are right that community banks, they are good banks doi s yoeperson service. and financial sector has made profits every single quarter, since the fall of 2008, and by a lot, they have 0 lobbyists for every member of congress, they spend more month on lobbying than any other sector of the economy. i'm not that concerned about a little bit extra. i do not think that will happen, and we really need to protect the markets better. tracy: but 400 of anything sounds like too much to me. ba

volcker's life and career. police chaplain describes circumnavigation. her book is round about the earth. at 10:00 eastern we conclude the prime time programming with our weekly afterwards program. this week dr. marty makary discusses health care reform with richard davis of memorial hospital. this is booktv.org for more on this weekend's television schedule. >> with a month left in 2012 many publications are putting together good bear your end list of notable books. booktv will feature several of these lists focusing on nonfiction selection. these nonfiction titles were included in foreign policy magazine's must read books. in breakout nations, in pursuit of the next economic miracles, the head of emerging-market in morgan stanley reports on growing economy and a shift in global economic power. senator rand paul of kentucky argues against what he deems far reaching government regulations in government bullies, how everyday americans are being harassed, abused and imprisoned by the fed's. in the new religious i

[inaudible] >> my question pertains to the volcker rule. regulators earlier this year came cautiously optimistic they could finalize the rule by the end of the year. that seems a bit unlikely at this point and as you know, lawmakers are calling for utley to yuri implementation bill and a rule. given the fact is such a lengthy process can you tell us where things stand? how much closer are we too are a final rule, have agencies worked out there differences and if you made a prediction on what we might actually see a rule? >> we have made quite a bit of progress. is a difficult complex rule as you know and i think i recall 18,000 comments or something like that. so it is a lot to look at. there are a lot of concerns that arose even from foreign, enters about the effect on the bond markets. so a lot of work to do. i think there is quite a bit of agreement. i won't save final agreement but quite a bit of agreement on key points among regulators at this juncture and if congress gives some other instruction we will follow that we have not receive

. >> volcker?d paul volcker on the program a month ago. >> volcker started out to be a simple issue and has become one of the more complex issues in banking since it's now -- bankers didn't figure it would affect smaller institutions but now it affects institutions all the way down to $50 million community banks. and it's got people running around with their hair on fire trying to figure out how to implement. >> would you buy -- giving everything you just talked about, would you buy bank stocks? >> i would buy bank stocks selectively. i wouldn't buy the industry. i think this shapes up to be a reasonably good year for the larger banks, because of where they're started. remember if you back out the reverse split and citibank it's a $4 stock trading for a fraction of where it once traded. same could be said about bank of america. as the economy heals and then as the housing secretarier comes back, i think they can expect to see some improvement there. there's also a ton of capital, excess capital in

. >> the volcker role rule. >> she knows this stuff as well if not better than they do. real talent, i sat in hearings with her and tim geithner, her ability to conduct a hearing, the performance and theater aspect, she's ripped geithner to shreds and has no fear of going after democrats, republicans and the like. it's partly that public aspengts, the aspect hearing what henry waxman did with tobacco executives she could do with wall street bankers and that's what should strike fear in some of these guys. >> i'm actually really curious to see how -- what the relationship between the white house and wall street and the business community is. and harold meyerson has a great op-ed in "the washington post" that ran yesterday, ben. i will read it to you. it says -- zing. harold outlines the top contributors to mitt romney, goldman sachs, bank of america, morgan stanley, jpmorgan chase and credit suisse. if you look at who donated to the president, university of california, microsoft, google, u.s. government and harvard university. if you talk about where ideas are coming from

would be impotent the inflation was something that he couldn't couldn't get under control in the volcker prove that it actually couldn't do that or coincided with the bull markets at the end of a bull market in bonds the mentality is there's there's nothing that the fed can do to create inflation. or and in this case they would be the b.o.j. because abusers of i think the head of the fed in that regard they've been doing it for longer periods and so i don't think so but jim graham made a very good point so yeah yeah great point so let's move on because we can't say it any better than mr grant can probably because we want to let you know that the california highway patrol division chief became the best paid officer in california and in many states collecting four hundred eighty three thousand dollars and over four hundred eighty three thousand five hundred eighty one dollars in salary pension and other compensation according to bloomberg now for context this is more than the president of the united states makes in his salary of four hundred thousand dollars a year of course there are othe

well, paul volcker -- been named may ring a bell. in 1971, paul volcker was an unknown working for another american. henry kissinger, who you may have heard of. before he became secretary of state. volcker's paper, which are when i read a few years ago, i thought it was the most remarkable document ever to emerge from washington in the last few years. looking at the emerging economies of the world -- primarily germany and japan at the time -- how will be paid back germany? he said we could not recycle our own surpluses. we must recycle other people's surpluses. and this is what happened and 1978.e mid-1970's the u.s. utilizing its trade deficit with the rest of the world has been operating like a huge vacuum cleaner. thus providing exporters -- germany, japan, or china -- with the requisite demand necessary. so, the ever expanding trade deficit was not an accident. it was a very clever way of replacing one that surplus recycling system with another. it was one where america had a surplus and america decided instead of doing what germ

did you hear how he started with, i'm in volcker's place? ironic. >> in volcker's place, that's right. >> steve, thank you for this. appreciate it. bringing us some extra fed news this morning. let's talk about some other headlines this morning. we're going to get another fresh batch of economic data in just about an hour. the november consumer price index expected to show a drop of 0.2%. core rate which excludes food and energy is seen rising 0.2%. later this morning, we can get november industrial production figures. also greek leaders are proposing a new tax reform bill with a top tax rate of 42%. that would hit people making more than 42,000 euros a year. the equivalent of about $55,000. the current top tax rate in greece is 45% for those earning more than 100,000 euros. finally, business sentiment in europe is slumping in part due to economic uncertainty ahead of this weekend's election. the bank of japan sentiment index dropping to minus 12 from minus 3 in the prior quarter. that was a bigger drop than economists were expecting. mr. ke

well, paul volcker -- been named may ring a bell. in 1971, paul volcker was an unknown working for another american. henry kissinger, who you may have heard of. before he became secretary of state. whener's paper, which are i read a few years ago, i thought it was the most remarkable document ever to emerge from washington in the last few years. looking at the emerging economies of the world -- primarily germany and japan at the time -- how will be paid back germany? he said we could not recycle our own surpluses. we must recycle other people's surpluses. and this is what happened between the mid-1970's and 1978. the u.s. utilizing its trade deficit with the rest of the world has been operating like a huge vacuum cleaner. thus providing exporters -- germany, japan, or china -- with the requisite demand necessary. so, the ever expanding trade deficit was not an accident. it was a very clever way of replacing one that surplus recycling system with another. it was one where america had a surplus and america decided instead of doing what

. >> and how about this, fly fishing with paul volcker.you can do that, you can buy the other auction items. >> charitybuzz.com. i've got to beat anderson cooper. finally, let's come to the car accident you had. >> yes. >> a strange case, where you had taken an ambien sleeping pill in the morning. >> i reached for my thyroid medication and took the wrong pill. i did it at 7:30 in the morning. i did what tom brokaw did. i took the wrong pills. i was on my way to the gym. got into the car. got into a car accident. but there was no alcohol in my blood. that's what happened. >> the case in general. >> yes. >> good luck with that. >> thank you. >> let's talk about taylor swift before you go. she's the hot woman at the moment. she's dating a british rock star. she was honored at the rfk centers gala. >> and incidentally, you can get one direction tickets, too, on the -- >> well, there you go. is she nice, taylor swift? >> so fantastic. such an amazing woman. she spoke. she gave about a 20-minute speech, sang 4 songs the other night. very deep, v

will you seek to enforce the so-called volcker rule, which would prevent them from training for their own account and staying away from the high risk? >> i think if you use the term enforce, we're not in the enforcement business. i don't see the compelling evidence where proprietary trading is number one related to the '08 crisis. you have to look to future crisis as well. this rule is so convoluted, so complex, that ultimately end users are going to be affected, it's going to drive up the cost of capital and harm employment even worse. it's one of these cases that did really appears that the cure is worse than the illness and the cure didn't even impact the original illness. >> we're going to have to leave it there. currently house republican congress fren chairman. >>> now to the developing situation in syria where the assad regime is firing scud miss else at its own people. the question is will chemical weapons being loaded on to the skids? we'll have the latest for you just ahead. wooohooo....hahaahahaha! oh...there you go. wooohooo....hahaahahaha! i'm gonna stand up to her! no yo

. >> my question pertains to the volcker rule. regulators seemed cautiously optimistic they would be able to finalize it by the end of the year but that seems unlikely at this point. lawmakers are calling for a two-tier implementation delay on the rule. can you tell us where things stand at this point? tothe agency's been able work out their differences? if you may, a prediction on when we will see the rule. >> it is a difficult, complex rule asy ou know. we had 18,000 comments or something like that. it is a lot to look at and there were a lot of concerns that arose even from foreign commenters on the effects of their bond markets. i think there is quite a bit of agreement on key points among regulators at this juncture. of course, if congress gives us other instruction, we will follow that. it is our intent to try to get this done early in 2013 ba. conference with us, we have had an election. governor romney said he would not reappoint you to a third term as chairman. president obama did not weigh in on the issue but he did win

i think paul volcker mentioned it and in response, 96 senators passed a sense of the senate resolution that this was an evil idea. >> here's the way i think about it. we're not going to get a consumption tax in this discussion this year or next spring either. the reason it's inevitable, on the republican side, it is the way to slowly do tax reform. peter's right, reforming the income tax is very, very hard. it is also the only way to pay for a larger government, if that's what the american people want. >> what really matters now, that republicans have moved on taxes somewhat, is that we have some movement on entitlements. not because it is necessary for next year or even five years' time, if you look out over two decades, that's where the u.s. needs to do something. that's where the president has a huge opportunity. he's got movement from the republicans. i suspect there will be movement, not just on deductions but on rates. that argument is over and now show leadership on entitlements and take on some sense the left of your own party and put out something bold there. >> peter, do you

. >> prop trading, the volcker rule. >> we'll see how that happens. basl 3, nobody excited about the implementation and the mortgage industry. i'm not going to say entirely digested but that's enough of a buzzkill on these stocks that it's fairly well priced in. now those who can execute the best and the actually can be leaders and show,000 how they can improve real profitable by right-sizing their businesses will outperform. >> now, you upgraded these three, citi, b of a and discover. you said you'd see meaningful upside protection for the whole group. >> yes. >> what kind of returns are we talking about for 2013? should an investor be buying into this now even though bank of america, for example, is the best performer in 2012 after being the worst performer in 2011 in the dow? >> yeah. i think bank of america has at least 35% upside from here. >> wow. >> so what happened last year, you know, going into 2012, investors were worried that they would have to do some massively diluted stock transaction so the stock way oversold, and i think that investor

that was very important in the auto industry in the late 70's when volcker was smashing the working class. the state was doing this. a lot of workers were thinking in terms of how we make american number one again. i think one of the issues this people have to come to see that capitalism is a lousy system, even when it's working well. when it's working badly it's exactly what you said, you want to fix it. the main thing i care about, my experience with talking to working people is you may not name a capitalism, but they don't think the world is very good. they don't think that things are very fair or equal, and democracy is actually quite an. did not have much input into happens. the problem isn't that -- the problem is that they feel that there is nothing they can do about it. the question of fatalism immediately gets to the question of organization. if there isn't a way that they concede that they -- you know, structures that they can work through to change things, even if it takes some time, you don't see that often. yanase structures through which they can work through and build capac

falconing with my brother bobby or go fly fishing with paul volcker. and there is lots of set visits and going to see anderson cooper on one side or bill o'reilly on another. and lots of access to hollywood, to broadway. it's a really fun auction. >> for a great cause. i also just want to give a plug because i enjoyed it so much. your sister has done a documentary, people can see it on hbo, about your mom. so if people want to get an idea of where the center came from, sort of how it all developed, although that's not the focus of it, your mom is the focus of it, i think that's one place to go. i know you're proud of her. >> which has been short listed for an oscar. so all of you -- all of you voters out there in the documentary category, vote for rory. vote for ethel. >> spoken like a good sister. thank you, carrie kennedy, for coming on. logon to rfkcenter.org. >>> a stomach virus keeping secretary clinton from her planned trip to morocco in the middle east today. she was to join foreign ministers from all over the world to talk about the crisis in s

my question pertains to the volcker rule. regulators seemed optimistic they would be able to finalize a rule by the end of the year. however, that seems a bit unlikely at this point, and now as you know lawmakers are calling for a two-year implementation delay on the rule. given the fact that it's been such a lengthy process, can you tell us where things stand at this point? how much closer are we to a final rule? have the agencies been able to work out their differences, and if you may, a prediction on when we might actually see a rule. >> we've made quite a bit of progress. it's a different complex rushlgs as you know, and we've had i think i recall 18,000 comments or something like that, so it's been a lot to look at. there are a lot of concerns that arose, even from, you know, foreign commenters about the effects on their bond markets, et cetera, so there's been a lot of work to do. i think there is quite a bit of agreement. i wouldn't say a final agreement but quite a bit of agreement on key points among regulators at th

>> both the cftc and the sec have a role in implementing the volcker rule. i think, the commission hasn't taken any position on this proposal. we're actively engaged with, at a staff level with the agencies, other agencies to move forward with the volcker rule-making, taking into account of enormous number of comment letters we got, 18,000, very complex set of issues but i think we're making a lot of progress, and as a staff person our goal is continue moving forward with the implementation process as expeditiously as we can. >> and though i'm not familiar with the proposed legislation, the volcker rule is one of the more challenging, maybe the most challenging of rules i think the regulators were given, to prohibit one activity, proprietary trading, to help the taxpayers not bear some risk. and yet, permit things that are important in markets. market-making, hedging underwriting and the like. so prohibit one thing, permit another, and then where's the border or bondary between the two? so it is one of the most challenging, i think, and there is five regulat

. >>> two key facets of the fed will reach the finish line and volcker rule completed by the end of theon dollar derivatives industry. if any of this hurts competition abroad, expect banks to sue. >> let's see how financials fair. brendan how kin, the director of research at ebn. i don't know if you had a chance to see what she had to say. do you agree with that assessment? >> i did get a chance. i have a slightly deficit take. i certainly agree, banks have been on fire 40% versus s&p up the last six months. they've been terrific stocks recently. a lot of optimism gets put into these names and i see a lot of headwinds to tensipotentia pote it. >> being? >> regulatory pressure high. and keeping interest margins under pressure. loan demand is still pretty weak. cni, commercial and industrial loan demand is starting to weaken. you have political pressure and uncertainty, which remains high. there's a lot of problems here. one in particular, in regulation, i think is underappreciated here. you referenced it in your spot. the coming central clearing of derivatives mark, i think is a big prob

credit card pervvijze and predatory lending arguably it was making even though war and stifel and paul volcker said it wasn't a single financial innovation that has led to the increase in productivity for the atm machine and what is wrong with the atm is a british innovation and so the fees from the dollar to $3. so, that is another example. the ceos have been taking advantage of the governments to increase the share of that corporate income. more revenues have become that much more productive or not much more productive than the ceos and other parts of the world. but what they have become is better at getting a larger share of the pie. you have to admit there is a certain amount of cleverness but it hasn't led the economy to be more efficient to the investment or r&d spend on their salary. >> i like to do the division to take the u.s. economy since the early postwar years and roughly divides about in half. the first era was the legacy of the new deal of the corporations that viewed themselves as a coalition of stakeholders rather than just roofless capitalism strong labor unions of course tax

my question pertains to the volcker rule. regulators earlier this year have been cautiously optimistic that they would finalize the rule by the end of the year however that seems a bit unlikely this point and now she know lawmakers are calling for a two year implementation on the road. given the fact that is such a lengthy process, can you tell us where things stand at this point? how much closer are we to a final rule? have they been able to work out their differences and and a if you make him a prediction on when they might actually see a rule? >> we have made quite a bit of progress on this complex rule as you know and i think i recall we have it 18,000 comments or something like that so it's been a lot to look at. there are a lot of concerns that arose either from foreign commenters about the effects on their law and markets etc. so there's a lot of work to do. i think there is quite a bit of agreement. i would say quite a bit of agreement on key points among the regulators at this juncture and, of course his congress giv

. >> well, the size of the gap, paul volcker estimated the size of the gap at $ trillion. the investable u.s. corporate bond market is only $5 trillion. so you have a tremendous demand for credit and a limited supply of it. as much debt as there is, demand is outstripping it dramatically. we're doing so more expensely in this credit boom. >> and here is one example of where demand is coming from. moody's is lowering its outlook from illinois's credit rating to negative citing continuing problems with the state anticipate ability to fund its public pensions. illinois is being crushed by a unfunded liability and lawmaker res pushing to get various reforms passed month. moody's says that attack can be canceled. illinois being one case where this need is getting more and more pressing. >> the long-term ratings are under pressure because if you take a long-term perspective, it's not likely they're going to be able to make their pension goals over the course of, say, the next 15 years. but in the interim, while they're raising the fees, that produces another two to five years of

with volcker report and which is entirely operating how do you separate the banking activities? and the propertory trading. and then you have a green area and the three responses that are given are slightly different. img it makes a lot of discussions and it's good, but i don't think that this is that decisive. everybody recognizes that pure trading should be out of the responsibilities that you have. >> jean-claude trichet there talking with stephane. stick around. ahead on the program, we'll hear from the ceo of advertising publicist. find out what he says is more worrying than the actor's decision to leave the country. >>> france has recently seen a number of high profile citizens leave the country in what is seen as a response to higher tax rates. gerard depardue specifically left the country. >> i don't -- information which has been published recently, but gerard is a number of 5,000 people that have left the country. these people are not people with a 11 million euro sally, much less, but people who are the future of the country and this information is real and i think it

they had alan greenspan and paul volcker.hey discussed the fiscal cliff, and both, they smiled and said, we have to create account -- a crisis to get everybody off their duffs. they said there was no problem with the debt and money. they know how much money is out there, local and federal. host: i appreciate the call, from arizona, and all the calls in this first segment. up next, we'll continue this discussion with a discussion with our sunday round table. later, david jackson, white house reporter with ""usa today"." -- "usa today." we will be right back. ♪ >> the release started to get worried in the summer and fall of 1774. the british admirals and generals and diplomats were reporting to the crown that the colonists were sending ships everywhere to try to get ammunition and muskets and cannons. this was after the british had sent more troops to boston after the boston tea party and signed the course of acts -- the coercive acts. maybe the colonists did not intend to use the ammunition. it came with an order from council

. >> my question pertains to the volcker rule. regulators seemed cautiously optimistic they would be able to finalize it by the end of the year but that seems unlikely at this point. lawmakers are calling for a two-tier implementation delay on the rule. can you tell us where things stand at this point? at the agency's been able to work out their differences? if you may, a prediction on when we will see the rule. >> it is a difficult, complex rule asy ou know. we had 18,000 comments or something like that. it is a lot to look at and there were a lot of concerns that arose even from foreign commenters on the effects of their bond markets. i think there is quite a bit of agreement on key points among regulators at this juncture. of course, if congress gives us other instruction, we will follow that. it is our intent to try to get this done early in 2013 conference with us, we have had an election. governor romney said he would not reappoint you to a third term as chairman. president obama did not weigh in on the issue but he did win

whether it's the qualified mortgage, volcker rule, the risk retention, the collins a member, the economic impact each one of these will persevere. today through will focus on just one specific area that is regulatory cliff, new regulation of your swap markets under title vii. so let me begin by correcting a comment, mischaracterization from friends across the aisle sometimes. republicans do not oppose already wishing. in the aftermath of the sub financial crisis republicans opposed additional regulations. believe it or not we do support regulation of the market. unfortunately, some or all -- colleagues present -- or usable directly swaps market altogether. this cannot be further from the trees. my colleagues and i support commonsense, thought the revelation of the markets about transparency and allow for main street and users to be up to effectively hedge the day-to-day operations. in a prudential manner. unfortunately, terms of proposals this has not been the case. recently the ctc had a global market advisory committee meeting with the foreign counterpart. during that meeting ahead of t

. >> we won't need paul volcker in the future?, all they have to do is start taking that balance sheet down and start detracting. >> that sounds easy, david. >> it's not easy but it will happen. his hotel, california, who wrote that song? >> eagles. >> i'll give him prince. >> we're going to party like it's 1999? >> yeah, we can party like it's 1990. listen, i'm not talking about the economy, i'm talking about -- you have so much money. >> raspberry. >> red beret. >> i didn't say red beret i cedras berry beret. >> i don't have monitors. >> so then, we will get to 6.5% on track in unemployment? this will work? >> now you're asking me a different question. >> do you believe in the new normal? like the pimco idea that we're going to have subemployment, permanently. >> the question that the fed is taking a chance. this is a different way to put it. the fed is taking a chance that 6% is where you start triggering inflation, okay? that's the real trigger here. >> on unemployment. >> they're going to go to 6.5. i think the fed is that th

. >> volcker put us into a recession. that was fully orchestrated for a reason and there was a lot of pain, but it set up an incredible two decade-period. and i think that's what howard is talking about now. >> it did with hindsight, but you never know. >> you don't. >> but you look at japan, they never did what they needed to do. and here we are, we escaped the financial crisis and the money market, it looked like it was going to freeze up and the huge fortune 500 companies. we avoided that but we just keep -- it's like we think we're permanently okay from negative situations and i don't know if we are. things happen in this world. it's still tough, right? >> it is. but this is a very important topic. >> you borrow too much and sooner or later austerity is awful. but if you can't just keep the credit card going if your kid has -- if it's 50,000, you don't say here's another 50. i don't want you to tighten your belt. >> that's why in the final analysis i think the administration recognizes that and they're going to -- >>

money center banks is what is coming over the next few years where you're going to see potential volckerakup of the big banks which will clearly benefit the regional banks and the asset managers here in the u.s. >> brian, i know a large part of this year was spent discussing whether or not there would be the so-called long to bonds goldman called it as generational departure from that bubble. i don't mean to make light of it but is 2013 finally the year? >> well, think about this, carl. you and i grew up in the '80s and '90s thinking about how we would buy bonds and buy bond funds because we'd clip the coupon and collect the income. we believe that investors are not buying bond funds because of income or that. it is simply because they think they are not going to lose money. it is a safety net. we believe as the economy slowly improves and surprises to the upside. we get through this fiscal cliff stuff. we get back to the business of america's business, interest rates will slowly tick higher and investors that have been buying bond funds the last few years will realize that they're losin