the bubble bursts but all throughout the building up of the bubble people are convinced that alan greenspan said in the one nine hundred ninety s. there's a new paradigm there smoking their own belly button lint they're getting high on the on the on the high prices maestro that sometimes till there is a collapse of this minsky machine is going to capture the irrationality of markets it makes it possible to capture you can model actually virtually any system you lock in you can model whether it's using exactly the same basic technology of engine. as it developed over the last thirty is broken by simulink and visit him and vince him and stella that engineers would be aware of but economists have never gone in that dynamic direction saw him getting out as a tool it's not actually he doesn't and caption like minsky but it lets me express minsky and most people build any model so long as it's on a mic and it's monitoring i think one should do that you'll get all the stuff minsky was talking about was in the fundamental way minsky had a accurate vision of the real world but you can't express that

what that price represents never enters his brain and then finally max on that on the story of alan greenspan and saying that stock prices are determinant of everything every record dow jones point cost two hundred million dollars in federal debt we're hitting all time highs in the dow jones but there's no such thing of course as a free lunch where does it come from here is the invoice in the past five days alone total federal debt rose from sixteen point six four trillion to sixteen point seven trillion an increase of sixty one billion dollars in five days amounting to one hundred ninety eight million six hundred ninety seven thousand and sixty eight dollars for every of the three hundred and seven dow jones industrial average points again this week because remember us debt is the asset that allows the fed to indeed to monetization and as a result hand over trillions and fungible reserves to banks while they're saying that the accumulation of debt two hundred million dollars of debt for every day jones point is meaningless and the only way they can possibly say that is if the federal reserve

>> well, we are using alan greenspan to talk about the market. i am sure he appreciates it. >> well, it is a dramatic move upwards, but it is not a crash, but consolidation. >> we are down 30 points today, but it does not count. >> it does not count and talking about a 4% or 5% pullback in consolidation. >> we had it in february in the 3% decline in february. and that is the pullback right now. >> and that took a day and a half, right? >> yes, here is the thing, up 11% on the year so far and tyler hit it right if we end the year up 11%, and would you be disappointed if we ended the year up 11%? >> i would be fine here. >> and that is -- >> i have the people who are pulling money and they feel like 11% is good, and they are banking the money elsewhere, because they are good for the clients now. >> the average hedge fund in the first three quarters of the year is up 4.9% which is half of the s&p and most of the big, and this is long term, and most of the hedge funds are underp underperforming and end of the quarter, you will see more performance. >

alan greenspan to a four-year term as chairman of the federal reserve. umacher: on his first day in office, chairman greenspan revealed his wish list -- a dollar which is always stable, interest rates which stay low, and employment which stays high. schoumacher: his first action as chairman of the board of governors was to reaffirm volcker's tight money policy, a long-range policy that most economists believed was crucial to maintaining orderly economic growth. but if there was one sector of the economy that was far from orderly in 1987, it was the stock market. 40. asia, 784. schoumacher: greenspan feared a collapse. but what could the fed do? securities analyst roger kubarych. when chairman greenspan came in office in august, one of the first things he did was to launch a series of studies -- call them war games if you like -- that did include both the board staff in washington, members of the board, and the new york fed, on a number of possible scenarios for market disruption, financial market disruption. schoumacher: on october 19, 1987, greenspan got

i spoke with form early fed chairman alan greenspan. he said with respect to the sequestered, rising asset prices both in stocks and housing may in part overset the otherwise dill tear just effects of the federal spending cuts. are you in that camp at all? >> not especially. there's a little bit coming from stocks but the main thing is housing is coming back. we've bit very few house force a long time. household debt is coming down relative to income. balance sheets are in better shape. we have in a way, we've been down so long there's no place to go but up, so the private sector is starting to recover. >> the economy is, you seem to characterize it as luke warm. why are stock prices as high as they are today and do you think they can move up from these levels? >> two things. the economy is luke warm, profits have done very, very well. we've had for whatever reason, a major shift of income away from labor to capital. profits are very high. the other thing is interest rates are still very low, so money has to go some place and it bids up

alan greenspan. we're going to find out if he sees any similarities between today's environment and the situation back in 1996. the last time we had this kind of run when he gave his now famous irrational exuberance speech. andrew, first, give us more of the morning's top stories. >> before we do that -- >> jerry mcguire is an incredible statistic. i feel like we're jinxing these guys. the dow is now looking for its 11th straight day of gains, its 11th consecutive friday of gains. it hasn't been down any day in march or any friday of the year. guys, i feel like we're starting to jinx it at this time. it is the ides of march. >> we are going into st. patrick's day. >> andrew did not. >> neither did you. >> whoa. >> i've slipped right into joe's role. i poofed my head this morning. >> it looks good. he would be proud. >>> let's talk about another couple of corporate headlines this morning, including boeing. anyway, here it is. boeing says it is confident it could have its grounded 787 dreamliner jets f

and then there's alan greenspan.s what alan greenspan said about the market earlier today. >> right now by historical calculation we are significantly undervalued. the reason yet stock market has not been significantly higher is there are other factors compressing it lower and irrational exuberance is the last term i would use to characterize it at this moment. >> '96. >> i remember when he said it when it went up into the 1,000 points like that it would be an ironic book everyonend if this says the opposite. >> that would be something, wouldn't it? >> you call the top like you call the bottom there, but i just -- i think that this is a market where people are saying i can buy bank of america. it used to be at 50 and now it's a 12 and before the mortgage pushbacks and i'm using bank of america and best buy because these are not the highest quality. they're not best in class. hewlett-packard has a bit underneath it and what that says to me is give me something that was down a lot that i haven't really missed. when i s

let me ask you, though, are we now into the irrational exuberance zone that alan greenspan warned about years ago? > > you know, there are a couple ways to look at this. some folks are saying - and this is the truth - that a lot of retail investors haven't yet gotten into this market yet, they are still reluctant. and if you buy that and you believe that retail investors are now going to storm in and push this market higher, then we aren't irrational yet. but at the same time, you have to realize investors - not just u.s., but around the world - have been putting a lot of money into equities, obviously, as we hit multi-year highs now and the dow eclipses its 2007 highs. but i am sort of caught in the middle. i think right now, what we have to look at is earnings. i think there are a good amount of stocks that have reached irrational exuberance levels, but there are another group that is still of value, and that is where you want to focus your energy. > it is funny when you contrast this with what is going on in the rest of the economy - jobs are weak, we don't have strong growth right n

and we'll get alan greenspan's views on the economy right now. first here's a look at the international markets and how they did today. >>> a big night in the big apple for samsung tonight. it's expected to launch its newest smartphone, the galaxy s4. the company rented radio city music hall for the unveiling. samsung hopes it will help it gain share over apple's popular iphone. apple is still number one with 34% share. samsung has 19%. joining us with more, dennis berman from "the wall street journal." dennis, a lot of hype for this new samsung phone. what's new? what are the bells and whistles? >> of course, the hype -- it's supposed to be unveiled at radio city music hall. they chose a pretty cool venue for it. they're not saying precisely, but there have been some things that leaked out their business speculation. one of the possibilities is perhaps that the phone follows your eye. so as you look at your phone or looking down at an imaginary phone, it knows as your eye moves, and it perhaps adjust its web browser or do a number of other funct

. > i want to back up just a minute, though, to friday, and on friday alan greenspan was talking about the fact that he believes there is no irrational exuberance to stocks right now on cnbc. was that a buy signal, a sell signal, or no signal at all? > > i think it was a continuation of the existing buy signal for the most part. clearly this market has been establishing areas of value to the upside. one thing that traders need to be aware of is the fact that when a market moves from point a to point b, it doesn't go in a straight line, it pauses, and kind of regains strength if you will, or regains momentum, and those areas of pause are considered to be areas of value where the market trades sideways before it develops again vertically. in this case, it has been upside vertical development. anybody who is short this market is trading an opinion, not the market. the market clearly has been establishing areas of value to the upside, and until that changes, basically you are trading opinions. > what do you see in the week ahead? i know we have a fed meeting coming up. > > i think all eyes

. >>> former federal reserve chairman alan greenspan told cnbc today he thinks the problem of getting too big to fail is getting worse, not better. one reason as he explained to me in an interview for "nbr" this morning is the structural flaws he sees in in the dodd/frank reform laws. i begin my conversation with the man who coined the phrase "irrational exuberance" in 1996, by asking whether we're anywhere close to that giddy spirit right now. >> nowhere close. the characteristics of what has been going on recently are actually more related to the removal of various types of what we call major areas of uncertainty, and the so-called tail risk, meaning the risks that are very unlikely to happen. but if they do, they have a very large impact. europe has been hanging over the american markets now for quite a while. and the removal of that risk, at least temporarily, i think it is only temporary, has enabled the underlying forces of the market to begin to come into vision. and what those forces are, are the deep-seated exceptional discounting that is going on of stocks to a point where s

scott, a record not seen since the days of alan greenspan. >> yeah, it's been a while since his nameame up in the news. good morning, greenspan, you'll remember was the chairman of the federal reserve before ben bernanke. he was also famous for a speech he gave warning investors of what he called irrational exuberance. now, irrational exuberance has become famous in the financial world. and here's something that should give you pause. he said that back in late 1996 when the markets were on exactly the same winning streak as they are today. the dow has closed higher ten days in a row. it's looking as if that streak may end today. it's a volatile day on the markets. they call it quadruple witching. this is when various options contracts close, but it is possible we could set an 11-day record. the last few closes on the dow have been just barely positive. you know, two points and five points. so not impossible that this afternoon we'll see another record high. back to you. >> we'll take all those little increments as we can get them. >> exciting news there. meteorologist christina loren

this is the maestro, alan greenspan. and i just say that to say, if he misses it that bad, maybe mr. bernanke would miss it. actually, the "wall street journal" documented when mr. bernanke was advising alan greenspan, the federal reserve chairman, about the bank mortgage situation in the mid-2000, 2003, 2004, 2005, he was advising mr. greenspan to keep pouring the low money out, keep encouraging banks to lend, lend, lend. and he rejected the idea that we were in danger and then, whammo, we had this fabulous -- this horrible recession of 2007. so i just would say, this chart shows us that we need to get our house in order. and the american people know that. they tell me that everywhere i go. and why won't congress respond? the house has responded. i know my democratic friends don't like to hear that, but this budget that paul ryan produced, it's not a perfect document but it changes the debt course of america, it balances a budget. we could do the same thing. if we wanted to do it a different way, let us do it a differen

alan greenspan came out a few years ago and said during the credit crisis there was fraud but quite frankly nobody's taken picked up the ball you had attorney general holder that came out and said sorry the banks are too big to prosecute i mean you're the attorney general of the united states of america saying banks are too big to prosecute ok so you're throwing the ball into the court of the politicians or it's not i mean what place what i say in the book max is that people have to take personal responsibility the way you can do that is by going out and saying look i'm going to designate my vote to who i think is going to make change you need change to alter the system to get us back on track if you thousands like what are you going to mean that's used to defend a rapist in other words a woman because she happens to have physical attributes desirable by men should not be forced to live in a concrete suit and she should be allowed to walk freely in society without fear of rape so i what i'm saying is people should be able to live in a society fear of financial rape from bags in the city of

now we have the great central banking global banking robbery and i think he kind of looks like alan greenspan in this photo with this like crumbs hanging out of his mouth and flipping off the global audience right old school you know rob a train get much respect and i do that right i mean i get my gang signals worked out. well you just robbed of baghdad trade these global banking systems are being robbed and we see right after riot and across nations across europe americans don't seem to care yet they seem to be very happy as long as nominal highs keep being reached well then i'm out. been told that they are in on the robbery and that their enjoy life style that's tied to america's robbing of natural resources america's u.s. dollar global policy that gives them the ability to buy stuff in dollars and out of the pay for you know slave labor in china america's been told you know you're in on the robbery and to some degree they are the going to be the last just suffer the consequences of this social bank heist so they unfortunately won't be able to act in time to save them you know again back to

this incredible you know infinitely you vision of the future that neoclassical economists or alan greenspan believe that they have which stops them behaving irresponsibly they look in the short term and they will push volume as much as they can so unless you find a way of breaking that link so how do you do that to me i think it comes down to look regulations you didn't bring in legislation didn't bring in which would make lending proportional to the income earning potential of the asset being purchased not of spross so you regulate lending you have to regulate lending speak you have to you have to you have to direct lending where it's necessary you can't have a functional capital system without banks lending money to finance investment and what i call necessary consumption so that has to has to exist but you have to have the volume of the land being related to the income flaws that lending generates now my understanding is that one of the stories that i've heard is that from the founding of this republican till the thirty's we never went more than fifteen years without a major national ban

alan greenspan when he tells me he read mathematical pieces, the places he published his men's journal. he said there's only four people understand them and they all read his journal. my second observation is based, having said that about the journal, the book is remarkably readable and is a fascinating, fascinating tale about the creation of the imf in the world bank, a particular moment in time. it's a tale about economic policy debates of enormous importance. and it is a tale about john maynard keynes and harry dexter white and benn prints purchased the both of them. it is new and i have been aware of before. but i just find this out by saying benn scott reviews in "the new york times" that most often people would trade their souls for. but be that as it may, there's bargains worth making. in that event, futuristic book. i strongly recommend it. benn. [laughter] >> thank you, bob. just to clarify, "the new york times" review is not quite out, so i'm not sure what i'll be willing to trade for. so thanks for the kind words, bob. anything you can do to keep the price that's up about cu

alan greenspan says that stocks are under valued and this is not irrational exuberance.actionsome. >> aye got a couple of reactions, first of all, with respect to alan greenspan, he's not very good at spotting bubbles, he's missed important ones and others have as well, he's not alone in that. but on the other hand, if you look at some of the numbers, price earnings ratios, ways that we try to evaluate whether stocks are are above or below their average. but you have to reck nice that corporate profits have been booming and that's one of the reasons why the stock market is i guess you could say legitimately arising. >> is everyone bearing the fruits of wall street. because if i look at your blog posts from this week. is this the rich getting richer again? >> it's a bit of a trickle down through your 401(k), when the market does better, a lot of people with retirement accounts do see things improving. but i mention profit booming, middle class incomes have been flat, so there is that income --- >> real time with bill maher was the soda discussion, it was a repate bait for

. >> it's not the hard economics that a ben bernanke has or alan greenspan, nose are guys that, you knowd coming up with series, and -- it's larry mcdonald pes liz: larry can tweet you. tweet me, larry. >> in any event, it's not quite that, and i'll tell you, andy gave us that information, and that put us on a lower rung, and does he go into the private sector? i think yes, and i tell you now, larry fink at black rock put dibs in, whether he takes it or not, i can't tell you. liz: your phone will ring from people saying we are putting it in for geithner. >> that's funny you mention that because a couple months ago when geithner announced he was stepping down thought he would go to citigroup, and chairman there might be a place to go, but he's close with larry, they work together well in the past, geithner head of the new york fed, and larry involved in the bailout stuff. liz: at citigroup, and the commerce secretary. >> a little different, though. liz: and the ceo of kelloggs. >> a little different. he's nice enough guy. liz: charlie's mad at me because i'm trying to catch twitter follow

the economy, these industry production numbers figured mightily in the tightening decision of alan greenspan. i bet if we get a number that shows strong industrial production, these bernanke blasters will call for his head for not immediately raising rates. maybe they're all short stocks. maybe they're not all in the market. i bet you some of them are actually not making money this year. let me give you the bottom line. unlike so many other talking heads, i actually like it when people are higher. i like it when you make money. i actually think that it's good, not bad for the economy. i actually trust ben bernanke, silly me. i say what's good for the economy is good for the stock market and good for corporate profits and good for you. which once again, we will hear about from a host of great american companies when they talk to us next week. let's go to denise in california, please. denise. >> caller: boo-yah. is this that sexy jim with a smoking hot body? >> no, no. this is a different jim. he's taken over that guy. >> caller: i have a question about petsmart. it's gone down since i bought