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Grethcen Morgenson says investor Paulson who handpicked the bad apples from mortgage securities that were placed in the basket called Abacus 2007-AC1, and sold by Goldman to institutional investors, knew exactly what he was doing. Paulson paid Goldman $15 million for creating and marketing the Abacus deal according to the complaint by the SEC. Gretchen does not fail to disclose the ultimate irony of these happenings in her own subtle manner. Paulson, a graduate of the Stern School of Business, and of Harvard Business School, makes a living out of shorting high-flying shares in the tech bubble, and now in the mortgage securities bubble. This time in 2007 he makes an estimated $3.7 billion in 2007 and $2 billon in 2008 for his hedge fund with investors from pension funds, endowments, wealthy families and individuals. The irony- a Congressional committee invites him to testify in November 2008 about the credit crisis, they ask him for advice in solving the credit crisis. The other irony- Paulson gives $15 million to the Center for Responsible Lending, for a center that would provide foreclosure assistance to borrowers under water....

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In Room for Debate, the Editors of the New York Times ask experts from a professor of securities law at UCLA to banking regulators and finance specialists about the Goldman Sach's Abacus deal and the SEC investigation.

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SEC files civil lawsuit for securities fraud against Goldman Sachs for the Abacus deal.

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James Pressley reviews Simon Johnson and James Kwak's new book - "13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. " He suggests reading the first and last chapter for what the authors recommend, limiting banks to no more than 4% of GDP in assets or $570 billion maximum, and investment banks to 2% of GDP or $285 billion. Pressley agrees that incremental steps are not going to change the situation. And the authors have thought this thing through, with Simon Johnson, a former chief economist at the IMF and writer of the Economix columns in the New York Times on the current crisis in Greece, Portugal and Spain. Some of their analysis on that crisis has been borne out by developments, as Greece lurched towards default with the slow response of Germany enlarging the dimensions of the crisis, and requiring a larger bailout for Greece of $160 billion in late April.

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The western pharmaceutical companies see the potential for a big increase in sales in developing countries with better pricing to reach a larger number of people. Earlier this year Glaxo said it planned to reduce prices to two thirds of the levels in western countries, and charge 25% of prices in western nations to people in the 50 poorest countries. As a result Glaxo now forecasts a 10% increase in sales in 2010 in the Asia-Pacific area, after a 9% increase in 2009. The overall impact on public health will however be limited as even with this price reduction these medicines will benefit a fraction of the people. Today the combined pharmaceutical sales in Asia, Africa and Australia are $90.8 billon. According to IMS seventeen economies including China, India, Russia and Brazil will see pharma spending grow by $90 billion in a five year period 2009-2014. Of this China's demand will grow by $40 billion in this IMS Report on "phamemerging" economies. The upshot: phamemerging will account for 20% of global sales by 2013, up from 16% in 2008....

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Charlie Rose talks to the prime minister of Singapore about China's role in world affairs, its view of America and of its own experience, what's uppermost in the minds of the leadership, and the rise of a post cultural revolution leadership which has grown up in 30 years of post cultural revolution market economy and internet access to information.