and if you try to find the warren buffett, it's like looking for a needle in a haystack. i say buy the haystack, buy the index fund which will guarantee you not average performance but above average performance. and incidentally, warren buffett says most people would be much better off with index funds than with actively managed fund. >> professor malkiel we here so much that the old rules don't work, buy and hold is outdated and diversification does not reduce risk because all of the markets around the world are interconnected. you say in your book these strategies still work. >> absolutely. diversification does still work. even though markets are more tightly correlated together because while they may go up and down together, the performance of different markets has been completely different. emerging markets have doubled during the first decade of the 2 012 the u.s. market went down. new on buy and hold clearly if we knew when the top was and when the bottom was we would be better off without buy and hold but the fact is when we try to time the market, we typically buy

morgan wells fargo bank of america warren buffett to a new it's got to be a new definition because it's fraud to to the degree of fraud fraud to the fraud it's a new hyperbolic fraud. it's called tangible charitable fraud. yes they've been able to securitize your fraud and you are flawed and of course. this is the argument you hear all the time they say we can't bring any accounting regulatory counted regulatory accountability to these firms because otherwise they'd go out of business let's suppose you have a thousand houses in the suburb of chicago which is the story that i'm quoting a terrible offhand but you have see every thousand houses in the suburb of chicago of which. one particular bank wrote the mortgages on the majority of them securitized sold the mortgages off to secure twice trusts and to securitize trusts allegedly owns the mortgage you still have this foreclosure for fraud closure issue of assignment but let's say they actually do on these mortgages. the houses are have dropped in value to close to zero if not negative due to incumbrances from the city taxes fines etc so

warren buffett is a loud cry of his involvement in the private sector. that being said, infrastructure is a public good. we all benefit from roads but no one person wants to underwrite it. i would argue that there are some clear public goods such as education. i do argue the private sector needs to be involved heavily. >> if you look at the deficit problem i don't think there is any question in the past several months we have gone a long way to confronting the problem. the american people are concerned about it. they don't say what to do about it. it shows they are concerned about it. we have a presidential commission which has a sensible report. everyone knows you have to raise taxes and we can do it. we have a policy problem in the process of being solved. we know what we have to do. >> quite the contrary. i think one of the problems across europe is the political cycle encourages governments to focus on the tactical problems. with things like infrastructure and education are much longer and tend to be solved -- >> [unintelligible] >> i think there is

. >> susie: warren buffett is retiring from the board of "the washington post" company after 37 years. his company, berkshire hathaway, is the "post's" largest shareholder. buffett didn't give a specific reason for stepping down, but he'll remain a director at the publishing company until the end of his term in may. he also says he'll continue to consult for the management. >> tom: in about a year, investors will have a better handle on the quality of loans bundled and sold as asset-backed securities. federal regulators today okayed new rules on that. firms selling those securities will have to review the loans making them up, then report the findings to the public. the rules are part of the financial overhaul law passed last summer. they take effect next january 1. euu? >> susie: in our "planet forward" segment tonight, we head to new york city. we look at how one of the world's most recognizable buildings is going green. the empire state building has been a landmark for almost 80 years. but when it comes to office space, it has lots of competition in newer, more energy efficient

about the other people that are billionaires out there you know think about the bill gates in the warren buffett of the world who have donated half of their money into a visionary you know a rat. with an honor now taking a little joyride but let's move on. let's talk about the fact that space adventures just announced that they do have this new deal with russia in terms of just sending tourists to the space station the last time a sense of money was in two thousand and nine right now in two thousand and eleven they won't send them until two thousand and thirteen at least why has there been this large gap interesting reason it's funny you should ask it's an interesting reason the reason is apparently not demand there is enough to me and for business folks who have money to travel to the international space station which i think is one default absolutely wonderful the problem was nasa is crowding out the seats and master came in with the shuttle we've spoken to have the shuttle program is ending this year and so nasa went out and bought a lot of seats as of the european space agency but nasa is re

warren buffett always talk about how he can afford. he's a public company. small private businesses are killed by the death tax every day because they can't afford to finance that amount of money. >> chris: quickly, do you think the tea party will be good for the g.o.p. in the house? >> i think fiscal conservative, all the fiscal conservatives coming in at one time and coming in to a group like ourselves who really want that aid and help, giving us a majority of the majority that cares about reducing waste, and reducing spending, it's great. >> chris: congressman issa, congressman upton, thank you both so much for coming in on this holiday weekend. and we're going to be following all the action in the house this year. >> we look forward to it. >> chris: you'll be busy. thank you. up next, how will tea party candidates govern as new members of congress? we'll talk with two of them when we come right back. [ male announcer how can rice production in india affect wheat output in the u.s., the shipping industry in norway, and the rubber industry in south america

warren buffett is leaving washington post. he joined the board in 1974, he said he will continue to offer any help to the company that management asks but he will step down from his formal role in may. for director struck a step down in h-p meg whitman is stepping in. she is one of five people on the board. this is her first public move since losing race. it is over holding six months after see all park or was ousted h-p has announced they will investigate the circumstances of his this partner and the severance he was given when he left beard he was forced out last year over allegations of inaccurate spends great expense reports and sexual harassment. 37 year-old is reclaiming the top job from 55 year-old eric smith who had been called and a decade ago. he will advisor, changes will start april 4th. sticking with google id is in the top five of fortune magazine's top companies to work for. top spot for the second year is sas, boston consulting is no. 2, wightman's food markets, google, and net apps wraps up the top five. fortu

warren buffett and bill gates could kick in and it would bring their grades up. host: democrat.hat are your thoughts? caller: we have a blizzard. host: good luck. be safe. can you turn the sound down? caller: you talked about the teachers and being able to -- what you think about the charter schools? we're trying to start a charter school here. the children will be taught by teachers with high standards. we talked about we are in the war but we're bringing troops home. why can we start making cuts? when i was in school, we had music, with a theater, we had sports. but yet, the football is still going big and band is not there anymore. fear is not there and things like that to get the kids' minds activated -- theater is not fair. guest: paper performance is a mixed issue. there have been some attempts -- pay for performance is a next issue. there have been some attempts. it is not a sure solution. we'll see where it goes. charter schools are no better than regular public schools according so some major national evaluations that have been done. charter schools are no panacea. ther

look at the deal warren buffett made with goldman sachs and look at the deal the american government on behalf of the american taxpayer made with goldman sachs. you'll be angry it whether you are left ring or white -- what you are left wing or right wing. i'm not saying they should not have bailed out wall street, they should have bailed out wall street with strings attached. [applause] i have many friends of mine who are good capitalist to sleep with a copy of "fountainhead" under their pillows. that's not how the capitalist system is supposed to operate. you take extensive risk, you may the wrong -- to make the wrong decision, and you go bankrupt. if you are too big to fail and you will be salvaged by the hardworking american taxpayer, what are you giving back? [applause] point,ack to david's this is fundamentally a moral issue. the founder of capitalism, when i studied economics at cambridge, we studied adams smith. the first book he wrote before he wrote "the wealth of nations -- the wealth of nations" was the theory of moral sentiment. you cannot have a thriving capitalist syste

look at the deal warren buffett made with goldman sachs and look at the deal the american government on behalf of the american taxpayer made with goldman sachs. you'll be angry it whether you are left ring or white -- what you are left wing or right wing. i'm not saying they should not have bailed out wall street, they should have bailed out wall street with strings attached. [applause] i have many friends of mine who are good capitalist to sleep with a copy of "fountainhead" under their pillows. that's not how the capitalist system is supposed to operate. you take extensive risk, you may the wrong -- to make the wrong decision, and you go bankrupt. if you are too big to fail and you will be salvaged by the hardworking american taxpayer, what are you giving back? [applause] point,ack to david's this is fundamentally a moral issue. the founder of capitalism, when i studied economics at cambridge, we studied adams smith. the first book he wrote before he wrote "the wealth of nations -- the wealth of nations" was the theory of moral sentiment. you cannot have a thriving capitalist syste

look at the deal warren buffett made with goldman sachs and look at the deal the american government on behalf of the american taxpayer made with goldman sachs. you'll be angry it whether you are left ring or white -- what you are left wing or right wing. i'm not saying they should not have bailed out wall street, they should have bailed out wall street with strings attached. [applause] i have many friends of mine who are good capitalist to sleep with a copy of "fountainhead" under their pillows. that's not how the capitalist system is supposed to operate. you take extensive risk, you may the wrong -- to make the wrong decision, and you go bankrupt. if you are too big to fail and you will be salvaged by the hardworking american taxpayer, what are you giving back? [applause] point,ack to david's this is fundamentally a moral issue. the founder of capitalism, when i studied economics at cambridge, we studied adams smith. the first book he wrote before he wrote "the wealth of nations -- the wealth of nations" was the theory of moral sentiment. you cannot have a thriving capitalist syste

warren buffett told a couple of days ago when we were talking hisut coming out here that th grade for tim s an a-plus. he is a relatively tough credit. if you look at tarp and look at the tanks in which ty had tough calls to make, those calls seem to he paid off. there remains a lot to be done. i would like to begin by welcoming timothy geithner, the secretary of the treasury of the united states. [applause] we will have an hour, but i would also le to get your questions. we will have an opportuni to include your questions. question per se, sometimes define what is on the minds of people. what are you hearing here at this conference? what do people want to know? >> i have not been here in several years. it feels very different. i think there is more confidence now that the most acute part of the crisis is behind us. i think that is even true globally. i have only been here for 24 hours, but what people have been hal is me about farare europe doing? how about the u.s. and china? and how confident are you that the american political system will be up to the challenges we still face as a

warren buffett and bill gates could kick in and it would bring their grades up. host: democrat. what are your thoughts? caller: we have a blizzard. host: good luck. be safe. can you turn the sound down? caller: you talked about the teachers and being able to -- what you think about the charter schools? we're trying to start a charter school here. the children will be taught by teachers with high standards. we talked about we are in the war but we're bringing troops home. why can we start making cuts? when i was in school, we had music, with a theater, we had sports. but yet, the football is still going big and band is not there anymore. fear is not there and things like that to get the kids' minds activated -- theater is not fair. guest: paper performance is a mixed issue. there have been some attempts -- pay for performance is a next issue. there have been some attempts. it is not a sure solution. we'll see where it goes. charter schools are no better than regular public schools according so some major national evaluations that have been done. charter schools are no panacea. th

and i'm not warren buffett. it is a scandal, and it's approaching a crisis point. the cost of compliance, the disconnection from tax provisions with what they were incomplined to do, the alternative minimum tax, the tax on millionaires who evaded taxes has morphed into a tax on the near rich who pay their taxes and no billionaire hedge fund is ever touched by it. i hope, mr. chairman, that we'll be able to move forward with this with dispatch because i think it is a symbol of whether or not government itself can respond to something that is universally agreed, is in need of fixing, but whether we can follow that path. in that connection i guess i have one question i would offer to ms. olson, mr. mcdonald, can we do this successfully if we disconnect the individual tax provisions from business, or do they need to be done concurrently? >> well, i think that although the business and the individual issue -- they present different issues and different questions, but i do not think you can do them separately. in part because so many businesses are pass-through entities

. >> during the new york h earing, you get a specific case where warren buffett was in front of you and you ask him specifically whether or not he and told by moody's employees that there were problems with the ratings and it was a crisis waiting to happen. he denied ever receiving that. it was our understanding that you actually have these documents, an e-mail in your possession, showing that he had been reached out to. do you touched on that and report? do talk a little bit about mr. buffet, who was shown to be pretty indifferent to the workings of moody's. >> we could not hear the last of that question? >> how much you touch on mr. in news testimony up york, in which you showed him during the questioning clearly to be a large shareholder who seemed divorced from the workings of the company. the earlier part of the question, whether or not you had in your possession and e-mail showing that he had been reached out to about the problems in the structured finance division geared >> on the first question, i will have to ask the staff to get back to you as to the new exchange. i am aware o

warren buffett told a couple of days ago when we were talking hisut coming out here that th grade forim was an a-plus. he is a relatively tough credit. if you look at tarp and look at the tanks in which they had tough calls to make, those calls seem to have paid off. there remains a lot to be done. i would like to begin by welcoming timothy geithner, the secretary of the treasury of the united states. [applause] we will have an hour, but i would also like to get your questions. we will have an opportunity to include your questions. question per se, sometimes define what is on the minds of people. what are you hearing here at this conference? what do people want to know? >> i have not been here in several years. it feels very different. i think there is more confidence now that the most acute part of the crisis is behind us. i think that is even true globally. i have only been here for 24 hours, but what people have been hal is me about farare europe doing? how about the u.s. and china? and how confident are you that the american political system will be up to the challenges we still f

. >> so as i was reading this weekend, warren buffett said 90% of life is showing up and that's whatting last year, got the information that the feds weren't spending money. and that they could spend it in providence. and they did. so thanks for that great story. so again, mayors, call to action. join dwc and get your person to attend as we put together the national agenda on job training to help you and the mayors, we need your support. i hope it's been supportive. a little nontraditional. i'm going to turn the microphone back over to my boss, our fearless leader at the work force development conference. [applause] >> thank you, steve. you know, you couldn't tell that steve was like a tv entertainer, could you? isn't he terrific. thank you, steve. join me and hats off. he did a fantastic job. [applause] >> and his sidekick, tom cavanaugh. thank you, tom. so we did hear a lot today but there were a couple of themes that resonated, business. business, business, partnering with business and that's where the jobs are and we really need to focus on building those partnerships so that the

. >> you had a very specific case where warren buffett was in front of you and you ask him to specifically whether or not he had been told by mÜhe these employees -- by moody's employees that there were problems with structured finance and the there was a crisis ready to happen. he denied ever receiving that. you had documents and e-mail in your position, showing that he had reached out to them. can you talk a little bit about be buffett who'd showed to pretty indifferent to the workings of moody's? >> what was the end of that question? >> whether or not how much you touch on mr. buffett's testimony in new york in which you showed him during questioning to be a major shareholder who seem to divorced of the workings of the company and the earlier part of the question, whether or not you had in your position e-mail that shows he had been reached out to all from the structured finance division. >> first, i will have to ask the staff to get back to you. that is about the e-mail exchange. i do not have that at my fingertips. we do talk about moody's extensively. we do talk about berkshire hatha

. >> you had a very specific case where warren buffett was in front of you and you ask him to specifically whether or not he had been told by mÜhe these employees -- by moody's employees that there were problems with structured finance and the there was a crisis ready to happen. he denied ever receiving that. you had documents and e-mail in your position, showing that he had reached out to them. can you talk a little bit about mr. buffett who'd showed to be pretty indifferent to the workings of moody's? >> what was the end of that question? >> whether or not how much you touch on mr. buffett's testimony in new york in which you showed him during questioning to be a major shareholder who seem to divorced of the workings of the company and the earlier part of the question, whether or not you had in your position e-mail that shows he had been reached out to all from the structured finance division. >> first, i will have to ask the staff to get back to you. that is about the e-mail exchange. i do not have that at my fingertips. we do talk about moody's extensively. we do talk about berkshire h

warren buffett told a couple of days ago when we were talking hisut coming out here that th grade for tim was an a-plus. he is a relatively tough credit. if you look at tarp and look at the tanks in which they had tough calls to make, those calls seem to have paid off. there remains a lot to be done. i would like to begin by welcoming timothy geithner, the secretary of the treasury of the united states. [applause] we will have an hour, but i would also like to get your questions. we will have an opportunity to include your questions. question per se, sometimes define what is on the minds of people. what are you hearing here at this conference? what do people want to know? >> i have not been here in several years. it feels very different. i think there is more confidence now that the most acute part of the crisis is behind us. i think that is even true globally. i have only been here for 24 hours, but what people have been hal is me about farare europe doing? how about the u.s. and china? and how confident are you that the american political system will be up to the challenges we still

. >> you had a very specific case where warren buffett was in front of you and you ask him to specifically whether or not he had been told by mÜhe these employees -- by moody's employees that there were problems with structured finance and the there was a crisis ready to happen. he denied ever receiving that. you had documents and e-mail in your position, showing that he had reached out to them. can you talk a little bit about mr. buffett who'd showed to be pretty indifferent to the workings of moody's? >> what was the end of that question? >> whether or not how much you touch on mr. buffett's testimony in new york in which you showed him during questioning to be a major shareholder who seem to divorced of the workings of the company and the earlier part of the question, whether or not you had in your position e-mail that shows he had been reached out to all from the structured finance division. >> first, i will have to ask the staff to get back to you. that is about the e-mail exchange. i do not have that at my fingertips. we do talk about moody's extensively. we do talk about berkshire h