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President Obama telling supporters this week that quote we tried our plan and it worked -- quote.
The president perhaps should allow his Treasury Secretary to well.
To be updated here is the Treasury Secretary testifying before a house committee today.
But -- my general view on this.
Economy is not growing fast enough.
And -- plan is very high.
She humanity and -- -- in the housing market.
Well joining us out -- figure out exactly what's going on here is former deputy assistant Treasury Secretary under President Reagan.
Also president have been seeing in the global David -- -- great to have you hi Lou good being here I.
You know -- girls there's a lot of wanna talk about the Treasury Secretary is still a lot is -- The White House despondent saying on his plate right now.
But first the idea that the president's saying his plan work as Treasury Secretary is a becoming.
-- public master of the obvious what.
Is this is the best and administration can do.
You know I think there's.
Deep confusion so what -- the president had said few weeks ago that the private sector was doing justified are doing okay.
Which really isn't the case at all and so I think there's this disconnect and secretary Geithner is in the position of trying to.
Read between -- you know -- trying to compromise.
On language that really doesn't make sense from there from the get ago.
And and today telling.
Indeed the European.
Sovereign debt the banking system all of the problems they have.
And of course that the political.
Gridlock in this country.
Inspiring to create massive economic challenges for America I'm -- Terry how I feel.
I think that's pure bull I wanna know what you think as the -- -- you know it's it's always easy to blame somewhere else and but when you look at it.
I think what really hasn't worked at all is the idea of spending lots of government money and borrowing it because when you borrow the money.
The private sector knows that they're gonna have to pay it so it's actually a negative.
And secretary Geithner repeatedly in his testimony today said one of the things dragging down growth.
Is that they're not they're government spending is going down well it's not really going down it's just going up slower than it had been going up.
And that's not a negative if -- if you -- president.
I turned to him -- president.
Obama came out.
Called his cabinet together and said since everyone in the country is hurting a lot won't why don't we look for some restraint on spending that you guys come you guys and gals.
Come back with ideas on how you can cut your own departments -- see what would.
Happened to -- -- -- love it I think I think it's a terrific idea you know going to be would have the drama and the player of the campaign in the fall of 2008.
When the president.
Brought the candidates backed themselves McCain.
I mean he could -- this would be great great political -- there's just one problem.
It would be only his second second while.
Meeting that his department is -- -- sector I've heard stories are gloomy as we've been -- where he hasn't seen a lot of them for a long time.
And I think that's that you don't each of those cabinet.
Has a lot of workers working for them doing things that the president should be aware of -- should be meeting with him to find out what's going on.
We learned that the Treasury Secretary.
Sent a note to the bank can be in 2008 and his job then.
As president of the New York -- Doing so entirely -- for.
-- doing absolutely nothing about Libor and -- a London Interbank offered interest rate that is the basis for.
So many types of loans are all sorts of commercial and retail loans.
Throughout Europe and the United States.
Paula actually -- -- that around the world.
And then nothing happen.
He's -- he's being asked about it any sort of holds his hands he clocks about not having talked to the Department of Justice.
But at the same time it was 2008.
In the story we've been broken in the journalist -- what was going on in April 2008.
So I I mean what is this.
You know this is this.
For tough problem -- US lost control of the -- -- dollar market actually in the seventies the Jimmy Carter inflation.
And so dubbed the market moved over to London and they set up its benchmark.
And it's a pretty strange benchmark because it's like asking you what do you think you could borrow all.
At what's the interest rate that -- recorded.
Get a mortgage not that you did that that you think you might be able to so it's pretty subjective.
So you know -- change I think give the treasury had been more -- shown more leadership and been proposing.
Tax reform we desperately need corporate tax reform to get more job growth.
Some -- resolution to the debt limit increase did they wouldn't constantly be.
Having to answer these questions on our issues are just not leading.
Barclays has had a pony up.
Half a billion dollars in fines for its rolling something like war with everybody.
-- with any.
Basic knowledge sophistication I don't know what you would call it.
How -- the British Bankers' Association contrived.
Libor I mean there was no secret about it and in fact in 2000 there was a lot of sort of shook it -- thank goodness that rate is holding we don't need any additional fuel on risk assessment here.
It and so things look a little better it was managed there's no doubt about it.
It was a good thing at the time.
I don't wanna say that but what I want as I said allocated.
As far as me now.
The problem is the lawsuits are spiral I -- -- criminal procedures and sort creates just one more Pall over the news that one of the industries in the world that supposed to be innovative and supposed to help grow.
That hasn't been happening they're not making the loans to small businesses and so now we have another it's basically -- -- it didn't work act for lawyers.
If the waters are going to -- students -- without question.
But the bankers themselves and government regulators should be honest about what was going -- Because you could make all sorts of allegations about who was manipulating the major market index in 1987.
In the midst of the stock market crash.
How about transparency and honesty and openness about all of the I'm.
For that you know.
Under sarbanes Oxley.
The penalties are huge if and attorney general and and aggressive just US attorney.
Comes after you for criminal penalties and so it's it's really a bad situation all around.
David molpus it's always a good situation and you in the states or to --