| 00:00:08 |
Unidentified Speaker, -
MONTHS AGO THOUGHT T.A.R.P. FUND STARTED BEING DISTRIBUTED. ONLY ON MONDAY ARE WE WENT TO FIND OUT WHAT IS ON GETTING THE BALANCE SHEETS. THIS FRIGHTENS...
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| 00:02:51 |
Unidentified Speaker, -
AND UNDERSTANDS AND THE SOLUTION TO THE PROBLEM HAS TO BE GIVEN SO THAT THE SLIGHTLY ABOVE AVERAGE GUY UNDERSTANDS. SO, HOW ARE WE ALONG THE RECOVERY?...
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| 00:07:27 |
Unidentified Speaker, -
IN THE LATE 1970'S AND SALT AND EXPLOSIVE RISE IN THE RATIO OF DEBT TO GROSS DOMESTIC PRODUCTS. NOT ONLY IN THIS COUNTRY
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| 00:07:37 |
Unidentified Speaker, -
BUT MANY OTHER COUNTRIES. ONCE YOU END UP WITH DEBT, PUBLIC AND PRIVATE DEBT IN EXCESS OF 3.5 TIMES THE SIZE OF YOUR ANNUAL OUTPUT, YOU ARE ARGENTINA....
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| 00:13:27 |
Unidentified Speaker, -
LITTL BIT BETTER WHEN OF THE PROBLEMS WE FACE IN ALL OF THIS IS WHAT I HAVE REFERRED TO AS THE GREAT FOR GETTING. WE LEARNED A
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| 00:13:35 |
Unidentified Speaker, -
GREAT DEAL ABOUT HOW ECONOMIES CAN BE IN CRISIS DURING THE 1930'S. WE TOOK A NUMBER OF PROPHYLACTIC MEASURES TO PREVENT ANYTHING LIKE THAT FROM HAPPENING...
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| 00:20:53 |
Unidentified Speaker, -
WISDOM. FOR EXAMPLE, LAST YEAR THERE WAS A MYTH OF DECOUPLING EVEN IF THE U.S. WOULD CONTRACT THE REST OF THE WORLD WOULD HAPPILY
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| 00:21:01 |
Unidentified Speaker, -
DECOUPLE FROM THIS U.S. ECONOMIC CONTRACTION AND USUALLY PEOPLE SAY WHEN THE U.S. SNEEZES AS THE U.S. CATCHES A COLD THIS TIME IT WAS THE FIRST FINANCIAL...
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| 00:28:03 |
Unidentified Speaker, -
THINK DESERVES TO BE POINTED OUT. ONE IS THAT THE FINANCIAL SYSTEM AS WE KNOW IT AT THE COLLAPSED. AFTER THE
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| 00:28:15 |
Unidentified Speaker, -
BANKRUPTCY OF LEHMAN BROTHERS IN SEPTEMBER 15 THE FINANCIAL SYSTEM REALLY CEASED TO FUNCTION AND NEEDS TO BE PUT IN ARTIFICIAL LIFE SUPPORT. AND AT...
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| 00:34:45 |
Unidentified Speaker, -
ME. I DON'T HAVE ANY PARTICULAR EXPERTISE ABOUT WHAT THE ECONOMY IS GOING TO DO TODAY OR SIX MONTHS FROM NOW. I DON'T HAVE ANY PARTICULAR EXPERTISE...
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| 00:35:01 |
Unidentified Speaker, -
SKEPTICAL BECAUSE AS I HAVE SAID TO OTHER PEOPLE THE RATE AT WHICH THINGS ARE DECLINING DURING THE FIRST QUARTER MEANS IF THAT DECLINE KEPT ON PRETTY...
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| 00:43:34 |
Unidentified Speaker, -
HIM THE OPPORTUNITY TO DEFEND HIMSELF. I THINK MOST PEOPLE THINK THE GOVERNMENT DID WHAT IT HAD TO IN TERMS OF ADOPTING A SERIOUS STIMULUS DESPITE THE...
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| 00:44:23 |
Unidentified Speaker, -
OUT TO BE RIGHT IS GOING TO BE 3% GROWTH RATE NEXT YEAR, 4% A YEAR AFTER THAT, FOR WENT 6% THE YEAR AFTER THAT IF YOU BELIEVE THOSE NUMBERS YOU WILL...
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| 00:47:15 |
Unidentified Speaker, -
INVESTMENT. THE VERY FACT -- FOR DEFICIT IS FALLING OR RISING. A VERY FACT THESE DEFICITS TELLS YOU THE SUPPLY OF
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| 00:47:25 |
Unidentified Speaker, -
SAVINGS FROM THE SECTOR IS IN FACT THE DESIRED SUPPLY OF SAVINGS FROM THE PRIVATE SECTOR IS IN FACT A GREATER THAN THE AMOUNT OF THE FEDERAL GOVERNMENT...
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| 00:49:57 |
Unidentified Speaker, -
ONE CUTTING THE MONETARY POLICY, THE SUPPLY CONTRACT AND INTEREST RATES OR OF FALLING AND THAT MADE THE CREDIT
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| 00:50:03 |
Unidentified Speaker, -
CRUNCH WORST. NOBODY BELIEVED IN COUNTERCYCLICAL POLICY AND THE -- THEREFORE THEY WERE RAISING TAXES AND CUTTING SPENDING ON THE BALANCED BUDGET THAT...
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| 00:52:09 |
Unidentified Speaker, -
THAT MEANS HE'S CALLING TO HAVE TO DO SOMETHING
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| 00:52:11 |
Unidentified Speaker, -
ON MEDICARE AND MEDICAID WHICH ARE VERY LARGE ENTITLEMENTS AND I CAN SEE WITH THE PROMISE OF COVERING MOST AMERICANS HOMINY 95, 96% SAYING WE CAN'T GET...
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| 00:54:17 |
Unidentified Speaker, -
PRODUCING, THAT DEBT WAS ACCUMULATED OVER 25 YEARS OF LIVING BEYOND OUR MEANS.
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| 00:54:24 |
Unidentified Speaker, -
WHAT HAS HAPPENED IT ACCUMULATED MAINLY THE HOUSING SECTOR AND THE FINANCIAL SECTOR AND THAT IS NOW BEING NATIONALIZED. IT IS A LITTLE BIT UNFORTUNATE...
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| 00:55:13 |
Unidentified Speaker, -
COLLAPSING CREDIT, AND WE ARE CURRENTLY FACING THE
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| 00:55:24 |
Unidentified Speaker, -
DEFLATIONARY SITUATION. WHEN THE CREDIT RESTARTS, SUDDENLY THERE WILL BE A FLIP-FLOP WHERE THE FEAR OF DEFLATIONARY WILL BE REPLACED BY THE FEAR OF...
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| 00:56:48 |
Unidentified Speaker, -
SEEMS TO ME THE ANALOGY ARE BEING DRAWN HERE WITH THE VARIOUS DIFFERENT DECADES. PAUL SEEMS TO THINK FOR THE 1930'S
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| 00:56:57 |
Unidentified Speaker, -
APPLY. OF COURSE, WHEN KEYNES WAS WRITING THE GLOBALIZATION HAD BROKEN DOWN AND AS HE SAID, HIS RECIPE WAS INTENDED FOR THE CLOSED ECONOMY, NOT OPEN
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| 00:57:07 |
Unidentified Speaker, -
ECONOMY. PAUL TALKS IN WONDERFUL NATIONAL TERMS. I LISTENED IN YOUR COMMENTS, PAUL, THE WORLD IS ONE ECONOMY NOW AND WE HAVE TO THINK OF IT AS ONE ECONOMY...
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| 00:58:18 |
Unidentified Speaker, -
AND I HOPE THAT WE HAVE A CHANCE
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| 00:58:19 |
Unidentified Speaker, -
TO GET TO THIS BECAUSE IT IS A GLOBAL SAVINGS GLUT. THE WORLD AS A WHOLE HAS MORE DESIRED SAVINGS THAN THE WORLD AS A WHOLE WAS WILLING TO INVEST....
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| 01:01:28 |
Unidentified Speaker, -
AND GIVE EVERYBODY A REASONABLE CHANCE TO MAKE A CONTRIBUTION. >> ALRIGHT, I WANTED TO START OUT BY RESPONDING TO NIALL'S POINT. IS A GLOBAL ECONOMY...
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| 01:01:54 |
Unidentified Speaker, -
ALLOW A WAY TO EQUILIBRATE THESE SURPLUSES THEN THESE DEFICITS SO THAT THEY WEREN'T PERSISTENT. WHAT WE HAVE NOW IS THE SYSTEM OF COMPLICIT CHEATING,...
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| 01:04:18 |
Unidentified Speaker, -
WITH RECOGNIZING THAT THE PREVAILING VIEW IS FALSE THAT MARKETS ACTUALLY ARE BUBBLE PRONE. THE CREATE BUBBLES. THEREFORE, THEY HAVE TO BE REGULATED....
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| 01:04:38 |
Unidentified Speaker, -
RESPONSIBILITY FOR PREVENTING ASSET BUBBLES FROM GROWING TOO BIG. THEY HAVE EXPRESSLY REJECTED THAT, AS SAYING THAT THE-- MARKETS DON'T KNOW HOW CAN...
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| 01:06:24 |
Unidentified Speaker, -
HUMAN, BUT THEY ALSO
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| 01:06:26 |
Unidentified Speaker, -
ARE BUREAUCRATIC AND THEY ARE ALSO SUBJECT TO POLITICAL INFLUXES SO WE WANT TO KEEP REGULATION TO A MINIMUM, BUT IT HAS TO RECOGNIZE THAT MARKETS ARE...
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| 01:07:04 |
Unidentified Speaker, -
THE ECONOMY AND THEN IT WENT TO
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| 01:07:06 |
Unidentified Speaker, -
AN EXTREME. WE BELIEVE THE ECONOMY WAS BEST BECAUSE AS GEORGE SAID THEY ARE MARKET FAILURES IN THE FINANCIAL SYSTEM AND YOU CANNOT MAKE ACTIVITY. WE...
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| 01:08:50 |
Unidentified Speaker, -
AN ECONOMY IN WHICH ABOUT 4% OF
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| 01:08:53 |
Unidentified Speaker, -
GDP CAME FROM THE FINANCIAL SECTOR. SIOUXLAND ECONOMY IN WHICH 8% OF GDP CAME TO THE FINANCIAL AND KURITZ PEAK 41% OF PROFITS WEREN'T FOR THE FINANCIAL...
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| 01:11:33 |
Unidentified Speaker, -
OF THE STATE, TO SUBSTITUTE FOR THE PRIVATE SECTOR BECAUSE THAT IS THE ONLY THING PAUL
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| 01:11:39 |
Unidentified Speaker, -
THINKS WILL DELIVER GROWTH. WE ARE GOING TO REGULATE THE MARKETS. WE ARE GOING TO GO BACK TO
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| 01:11:45 |
Unidentified Speaker, -
THOSE GOOD OLD DAYS. YOU APPLAUD BECAUSE YOU THINK THAT IT'S A GREAT IDEA. WHERE ARE YOU IN THE 1970'S? JUST REMIND, WHERE WERE YOU IN THE '70S WHEN...
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| 01:13:31 |
Unidentified Speaker, -
TURN BY NOT EXTENDING THIS TEN MINUTES. BILL HAS THE FINAL WORD. >> JEFF WE KNOW WHERE YOU STAND ON BIG GOVERNMENT AND REMEMBER YOUR ROLE OF THAT IS...
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| 01:13:58 |
Unidentified Speaker, -
THINGS THAT WE HAVE TO DO, I AGREE WITH PAUL ON THE SOCIAL SAFETY NET, HEALTH, EDUCATION IN PARTICULAR. BUT WE ALSO HAVE
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| 01:14:07 |
Unidentified Speaker, -
TO LOOK AT THE MISTAKES POLICYMAKERS MADE IN THE LAST TEN YEARS.
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| 01:14:14 |
Unidentified Speaker, -
I MEAN, YOU KNOW, IT
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| 01:14:16 |
Unidentified Speaker, -
IS NOT NEWS THAT PEOPLE ARE GREEDY. THAT IS KIND OF HUMAN NATURE. IT IS THAT WE MADE CONSCIOUS DECISIONS NOT TO PUT LIMITS ON THAT NATURAL HUMAN IMPULSE....
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| 01:16:17 |
Unidentified Speaker, -
WHY? BECAUSE THERE WAS NO REGULATION AT ALL. THE
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| 01:16:21 |
Unidentified Speaker, -
THIRD DECISION, 2004. THE SEC ALLOWED BANKS TO GO FROM TEN TO ONE LEVERAGE TO 30 TO ONE LEVERAGE. AND GUESS WHAT? ONCE THEY WERE ALLOWED TO DO IT, THEY...
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| 01:17:22 |
Unidentified Speaker, -
ALL OF THESE POLICIES THAT WE
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| 01:17:25 |
Unidentified Speaker, -
ARE NO-- IF WE HAD BEEN MORE PRAGMATIC AND LESS IDEOLOGIC AND BELIEVING THE GOVERNMENT CAN PROVIDE A SAFETY NET, WE WOULD NOT HAVE THIS MESS AND WE WOULD...
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| 01:18:04 |
Unidentified Speaker, -
THANK EVERYONE ON THE PANEL. >> YOU ARE WATCHING A FRIDAY NIGHT EDITION OF BookTV. FOR MORE INFORMATION ABOUT BookTV PROGRAMS WITH SCHEDULES AND VIDEO...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.