Too Big to Fail

" Or democratic strategist Julian Epstein says he's bailouts are working -- I don't know I. I have a great deal of respect for your degree due respect for Paul Volcker when Paul Volcker is saying -- litany of recent -- it."

" Why don't think he's saying that I don't think anybody would deny that first all the economic recovery plan is working and secondly. That you call bailouts -- more effectively bridge loans that the recovery plan for the major institutions -- there was Wall Street -- the auto industry is also working. And -- say that -- here originally and one this Republican president was pushing yeah. Aren't like you -- I -- send -- back. You know I was in fact in and I said on the air many times on this network and else -- that the Bush Administration deserves a lot of credit. For the financial institutions coming back because I think they bit the bullet went wasn't politically -- and they did -- last October and I would give the Bush Administration some credit for. But it is working AIG is paying back some loans stood and about 3334 the banks are paying back. Somewhere between -- 13850. Billion dollars worth of loans and I think the philosophical question is. Is when we're in an economic tough time -- more in a recession that some people -- could lead to a depression. Is it appropriate for the government to step in would effectively what our bridge loans to get. Very critical institutions. Pass that very --"

" I don't you also set up a series of expectations that these same institutions are others. Will demand money as well we saw that in short order from the car guys and and a lot of the other -- guys is that what you do for than you do from -- and and and that we're doing it would housing credits people don't buy homes without cable don't buy cars without tests -- compromising that we set up this all of a sudden. Feeling of entitlement here in -- that he's out of the bottle --"

" I think you have an excellent point and I think that's -- correct I think the point of Volcker is making here is that there is a limit that next time. You come around and we have some -- and failures of some major institutions particularly. I think vocal was talking about the folks that are involved in traditional banking -- when you get into the insurance industries and those are involved in more speculative kinds of transactions. Would -- for saying that the government isn't going to be there are big Big Brother isn't over there to tell -- if you make bad."

" Give an accident don't generous senate every time I did this president and others as I hate to -- Where we're not on the card visit Donovan as a president than -- deeper into the hands of as and then they get deeper in the educational loan business and and they kind of stay in the -- it. They don't -- it's like knee went on the -- into a party and the last gasoline and I got to do -- say O'Neal stopped ordering paper viewing meeting on food. And I'm just tell -- yeah. They don't leave Julian -- just yeah they're good company at the parties in the open here well have been a much and I were talking but I'm just say that's what happens when you do a good --"

" Let me tell I think that's wrong with first of all because I think the president has said they want out of the auto industry and they want out of the business of being involved in the financial sector. As quickly as they can't secondly. I guarantee you with you --"

" Had a little and I love you dearly when they get and so did -- this thing we're dictating pay now we're setting new rules on derivatives on. We will airline like they do -- house Julian ordering pay per view and raiding the refrigerator I'm not."

" anywhere. You are you welcome anytime you want and I've I've -- but I America's saying I don't like the government getting getting getting it to pay scales and salaries and bonuses -- adrenaline when there. But if you ask any political adviser at the White House they will tell you the last thing in the world they want. Is to be involved in the auto industry to be involved in the Wall Street car sector. Because things are always gonna go wrong this is a political nightmare. War time president and for his -- that they don't wanna do this okay -- there was a pretty strong consensus of experts they'll. That would need to do what I temporary basis and all the data. It's -- and apparently -- I was summertime -- fund our brand's success not come here hows thread your refrigerator that Julian thank you are."