so paul volcker writes a memo to the president says, we should stop that. and then congress gets it and they say we should. that three-page memo turns into a 300-page bill the summary of which is 41 pages to the point where paul volcker says, uh, i don't like this anymore. is that why people don't like zmong because what happened is the simple clear rule that would have been easily regulated is attacked by lobbyists, bankers, special interests and turned into oatmeal. >> well, that's one way of looking at it. the fact is the volcker rule is a very good idea as originally proposed and how that translates to legislative language. that say responsibility we have. it has to turn into legislative -- it didn't add provisions it translated. you know what, that is so insider what is important. >> stephen: what you call insider we call the business of congress. it's not just putting it in legislative language it's people finding what they call exceptions, what we would call loopholes. you how does that get in there to change what is a pretty clean rule? >> even paul

i am sure larry summers probably has different ideas and paul volcker, i feel sorry for paul volcker look what he did under ronald reagan with the tough decisions and what he advocated and warren buffett sold his soul and he is saying they got it wrong but they didn't, he does not want to seal like -- seem like a robber baron. and he found a way . >>neil: if you had to advise him now what would you do? >>guest: he can get through repatriation of corporate profits. quickly. >>neil: cutting the taxes. >>guest: bring $1 trillion back. $500 million could go to buy backs but $500 billion would go to direct job creation and no one watch this show would have to pay a nickel for. and cut corporate taxes, a real tax cut for everyone who makes money not just, stop being so selective in trying to help have thirled versus that american, and bring us together as a country. there is still time to do it. i'm not hopeful but there is time. >>neil: okay, all right, charles payne, thank you very much. in the meantime, he bet big on a government bailout and now, well, he is out. and veggie nutrition...

when i was the vice-chairman of the fed, and i had many meetings with paul volcker because of the time he was the chairman i was the vice chairmen he used to tell me on his if you remember the first part of the ronald reagan administration before the policies were enacted into law the economy was in a deep recession. 1982 was probably the debt of the largest postwar recession since the one that we are in now. the unemployment was around 10% ha. adel on the true policy to break the back of inflation, which has ed meese pointed out was near 10% of the annual rate. you can't imagine what that was like now. you probably do if you were around then to read some of the younger people can probably imagine with the was like economically at the time with interest rates hovering at 20%. the economy was in terrible shape and paul volcker would say to me it's lonely over here at the fed because i used to the central banking as an independent institution politicians are always trying to manipulate the federal reserve board to savor their policies since usually the pressure is to stimulate monterey p

the last one i am a, when i was vice chairman of the fed, and i had many meetings with paul volcker, because at the time he was chairman, i was vice chairman, paul volcker used to tell me on his monitor national monetary claims, if you remember the first part of the reagan administration before the policies really were enacted into law, the economy was in a deep recession. 1982 was probably the depths of the largest postwar recession since the one we're in now. unemployment rate was hovering near 10%. the monetary policy was still very tight. to break the back of inflation which as ed meese has pointed out was near 12%, an annual rate. you can't imagine what that was like now. you probably do if you're around them. some of the and people can probably imagine what that was like economically at the time. with interest rates hovering near 20%. economy was in terrible shape, and volcker would say to me, you know, it's very lonely over here at the fed, because i'm used to to the central banking as an independent institution. politicians are always trying to manipulate the federal reserve

paul volcker even saying, listen, that volcker rule, that shouldn't have my name on it. do you get any sense that there's even a kabul on either party that's saying, listen, as i know that there are people that are in our government who understand what we're talking about. >> yeah. you know, more of what you're hearing, i think, at this point, because the problem is so acute. i mean, i take jimmy's point, it's incestuous, but look at what happened last week. an agreement was reached, the market went up. part of the reason why we've had quite a bit of uncertainty over the past several weeks was whether or not they could reach a deal. obviously part of the key message here at the g-20 is to get this resolved. so most of them, from the political context, i think the concern is, we've got to get this straightened out and get on sound footing, at least with regard to this issue, and then we can go back and sort of make those arguments. but i think there's a real sensitivity to how sensitive, frankly, the markets have been reacting reacting to these various decisions. i was fr

other people who were not elected, paul volcker did it, but he was at the fed, he didn't have to run for reelection. but ronald reagan tolerated the volcker crackdown on inflation. >> rose: and sported it. >> and supported him. so that stuk. it takes a certain sort of person willing to do things that really stink. >> rose: what about romney? what about the way he's campaignd? what about what you know about him gives you some sense that he deserves a serious look by america. >> first i was not thrilled at all with his cpaign four years ago and i say that because i had the same take everyone had. it was artificial. it was phony. when you see him at a business group it was good, when you'd see him at a conservative group he was terrible. artificial. he gave a convention speech at the convention which was among the worst speeches in american history which is say something. so i'msort of impressed by this. he took an honest look at his own campaign, took full ownership of the failure and did a correction and he's emerged... i've never in my life covering politics seen a candidate impre as

he gathers around him in the fall of 07 and the spring of 08 and ecumenical team led by paul volcker, democrats and republicans, bill donaldson, that fec cheese and the bush, robert rice, one of your favorites here. they're all together. the ubs wall street tighten. there together because they are afraid. people are feeling the shutters on the landscape, feeling it shake. and obama, right from the start, is saying that -- sang the things that almost no one else is saying. many to reform financial capital, reform the system of credit. the american economy rather than in some it was against it. to kill off the volatility that we feel even now as we run up and down these problems of fear. really his guide. almost two years. he is the kind of avatar, the kind of champion of tough love, you know, after greenspan's demise of the most part, having pushed for the bubble across 20 years, one bubble to the next .. he returns to stand behind obama, credibility. this is sized up by the summer of 2008 as trouble, trouble for another team, called a team b and that's the team lead for the most part

and i think in manufacturing as paul volcker has said it would be useful if we had more civil engineerses and mechanical engineers then financial engineers. but if you look at the beverage curve as a relationship between job vacancies and unemployment, it is not unusual at the beginning of a recovery to see vacancies. to see where we get back on the old relationship. it is not clear to me that we're seeing something all that different from the ordinary dynamic, it is just that we haven't had such a sharp recession where we have had these kinds of data. >> are you on a path to get to full employment in my lifetime? >> well, you told me over the weekend that you called your mother to celebrate her 86th birthday, so i think that says something about your genes. i think we need to be folk yussed on both the short -- focused on both the short run and the long run. the president proposed the jobs act. i think if we look at the problems coming from europe and how that might affect demand for american product, the jobs act is the right medicine for the economy to support demand and continue the p

a good example is there were a number of people who wanted to replace paul volcker who felt that to -- some of them probably did not think he was tight enough. they wanted strict money-supply targets imposed. from time to, -- time to time, it would drift above targets but we were in a recession. but reagan held a very firm and a supportive of the fed. there was pressure from the white house. as i gave this example, there was never a call from the white house demanding that we cut interest rates during that time. they did understand what was important to which i think was the case in 2008. the need for liquidity for the banking system to avoid runs on banks and people pulling deposits. that was important in 1987 and in 2008. he would have never supported the bailout. i don't know that those people protesting know what they're protesting about. but they appear to be anti-wall street. i do sympathize with a piece of that. i do think we of what the banking system get to the point where if institutions are too big to fail and their art to much credit capitalism, reagan would not have suppo