. >> osgood: questions for ben bernanke. and mo rocco that you the cathedral. and more.first, headlines for this sunday morning. pope francis ends his visit to the united states today with a mass in philadelphia that is expected to draw a million people. yesterday, he drew a huge crowd in front of independence hall. he was joaned by aretha franklin. president obama is here to address the 70th session of the united nations. the president will meet with vade me putin. and raised the dole both during the hajj pilgrimage. at least 769 people died, many were iranian. demanded an 'polity. as many as a dozen people were injured night after a crowd rushed a concert stage. it's quieter than usual in paris today, the city has proclaimed sunday a day without cars. only buses, ambulances, police cars and fire trucks are allowed in central paris. here is today owes weather. ought i am is in the air with rain and thunderstorms including carolina and gulf coast, cooler across the plains, but warmer than usual in the mountain best. sunny and nice across the heartland. >> next -- this ge

imagine hearing those words from ben bernanke. bullish for asset prices for a long time. joe: you think other central banks may be inclined to flirt with negative rates. you may turn the blue line. david: they have a method that was developed and well thought out. i we going to model long between 1 and 2? slow growth, slow recovery. it is a wonderful economy. it is not going in recession. it is growing. you look at vacancies. how much more room is therefore improvement? david: we may go lower because the gap is closing. but it still is enclosed. you are going to talk about women and women's roles in your lineup. look at the unemployment rate for single moms. women who have households. to 2007.a monster gap scarlet: you are doing our job for us. joe: how much do you attribute to skills mitch matt and how much is cyclical? david: how do we know that any world we are in now where we have data that doesn't tell a story? the markets of to struggle with this confusion because the markets can't answer the questions. answericymakers can't the questions. they keep moving the dots.

still with us is jon faust former adviser to ben bernanke and janet yellen.ou have three charts kind of summarizing this pape they're you wrote that you presented at jackson hole. one is labor share of income. explain why that is so significant. jon: well, labor share of income you can always think of income being divided into that going to labor for wages, say, and that going as a return to capital. and labor share had been very stable for most -- for a long period of history around 66% to 70%. and in recent years, it's fallen from nearly 70% to closer to 60%. and a lot of people think that that's part of the story behind the -- behind the worsening income inequality in the united states. and what my paper was about that i wrote with indiana university is that many of these variables that have long-term trends that don't seem related to the business cycle necessarily could be important to fed decision making. and when you think about labor share in particular, we might imagine there's a lot of people out there on all sorts of the political spectrum who think

. >> given the job to keep stable all landed on bernanke's desk. >> to froze credit market. >> the worst in human history why didn't more experts like you see it coming? >> we didn't. there were problems in the housing sectors, in subprime mortgages we didn't see what i think almost didn't see was vulnerability of the financial system. person. he grew up in small down lillon, south carolina, where his father owned a pharmacy started by his pharmacy. then in now lawyer often visited their grandparents. >> my grandpa's bedroom was right here. the real action took place in

advisedrew levin, you yellen and bernanke particularly on communications strategy.s or anything that stood out to you and something that yellen said that you are taking away from it? andrew: yes. someone asked her about the communication's of the last week and she was absolutely right in saying that it is very challenging to communicate in probablyronment with -- complicated crosscurrents, writing was the phrase, and with a wide range of views of how to interpret the developments. she gets a lot of credit as a consensus builder to reach a decision at this point in time. wasll say that the dot plot introduced and adopted by the fomc is a way to be transparent about the diversity views. it was not intended to convey the rationale for the committee's decisions or the strategy of the committee. it is a bunch of dots, like a survey. and i think that what the committee needs to do, and she said it is an unfortunate state of affairs and i agree with that . they committee needs to improve its communications companies to have a more systematic, transparent policy strategy, t

bernanke manipulated this market -- >> you're talking about ben bernanke, the former federal reserveboss. >> that's correct, and janet yellen followed suit. shest just a minimum my -- >> but they have run out of weapons. we're going to get to this in the next segment but if the fed is powerless now, they can't prop this up now, then what? >> well, that's the point. now the market is going to have to live on its own and that's why i think the fed should stop manipulating. they should start neutralizing rates and getting them back to where they should be. yes the market will come down at bit but will send a signal to the world that america is confident about our future and that our next president is going to create jobs and we're going to create growth and get back to being number one in america -- in the world, excuse me. >> having you on long before you said nice things about fox business. craig smith, very smart money manager. >>> let's look at where money was going today. i try to look at the half full glass here and look what is going on with the ten are-year note. this seems arca

we asked ben bernanke if china's slowing economy is a threat to the u.s.e. from bobbleheads to beer, don meets the people turning it into souvenir central. >>> time to show you this morning's headlines. "people" magazine says hillary clinton turned down two marriage proposals from her husband, bill. video from a new magazine is on the website. >> after law school graduation he asked me to marry him. i said you know i can't say yes now. i can't do that right now. and then about a year later he asked me again, and i said no. he says well i'm not asking you again until you're ready to say yes. >> the video is for actress lena denham's new video news segment. she says marrying the president was a big leap of faith. >>> the new york post reports on a big change in the upcoming season premiere of "the simpsons," homer and marge are separated after homer is found in bed after narcolepsy drives him out of the house. the couple have this heir. ups and downs over the years. the producer says the show shows how marriage is constant work. >> i'm having a hard time pro

former federal reserve chairman ben bernanke on the list, but not his successor janet yellen. before the 9/11 anniversary. nicole: top u.s. officials testify in a rare open hearings before house panel national intelligence director james clapper along with cia director john brennan and fbi head james called me with just a few officials to answer questions on china. the security breach at the office of personnel management general told and issues cyberthreats always front and center. lauren: these are the latest quarterly numbers from the yoga wear posting a second-quarter profit of 34 cents per share. revenue coming in at $453 million. just topping estimates. wait for the stock reaction. coming up, are you ready for some football? after an off-season with the deflategate, new england patriots are ready to get down to business. >> i'm not going to comment on anything that doesn't involve the game coming, which is huge. lauren: new england kicking off the season tonight against the pittsburgh steelers. we will have the latest in sports. massive flooding hits japan forcing thousa

. -- fordy expected to bernanke to announce the tapering and then he thought they would do it in december. sure enough, they did it in december. alix: you are not of the mind that the dollar -- they are throwing in the towel? banks are looking for parity for the euro-dollar. >> i do not see it that way. parity was looking for this year. i thought it was a bit of an exaggeration. to say that the dollar -- look at the futures market. you can find it on ips. the euro, the market is still net short all the major currencies, including the euro. joe: something you brought up, the fed is looking at market-based measures of inflation, if you point out -- two days after yellen spoke, the san francisco said came out with a note that said there is no predictive value in that. do you agree with that? >> that is -- listen to what mario draghi says. the break evens, but there is a lot of noise as well as a signal. there is an assumption that the fed hits its target, a better predictor of future inflation than market based. because there is so much noise. the best guesstimate is what it was last month.

bernanke made it clear, we can take the balance sheet up, down, take the duration long or short, and we can change short-term interest rates independent of each other. this is a new policy construction. he also said something else. he said negative rates are acceptable, implied was that they are spreading, which is different. he admitted that in 2008, he was afraid of negative rates because of the distortions they made introducing to money market funds in banks. he is not afraid of them now. he will say that in a meeting. it suggests to me that the other central banks of the world are accepting negative rate, he says they are working in europe. imagine hearing those words. i think that low, long-term rates, it could lower prices for a long time. joe: so you think other central banks are inclined to flirt with negative rates. in the us, we will talk about the economy picture. i some measures we are not doing too badly, if we are looking at the measures, the blue line. fairly close to 2.0. you think that we are not far off the targets? david: i think the estimates are good estimates. t

. >> i think ben bernanke and janet yellen were doing a favour, reflecting the the fact that there's a lot of slack in the economy. and taking actions by lowering the center rates, the fined rate and the candidative programme to stimulate an economy that needed a lot of help. i think i agree with josh there's evidence of a lot of slack. interest is the lowest continue been. there's unemployment among workers whom you think, economy going at a robust pace. the employment rate for prime age male workers is only about 4.5%. as recently as 2070 was # 8. and i think they were trying to reverse that, and there's a lot of gap between where we could be and where we are. if you are going to borrow money to add to the size of your kitch in, to add plant and employees will you not do it if it costs a quarter of a per cent more. well, a quarter percent increase will translate into consumer behaviour. many interest rates from equity loans, outo loans, credit guards are tied to the prime rate and it moves with the fed fund. >> will it mean a larger increase. a quarter of a percent. half a per cent

you look back to what bernanke , howabout makeup inflation maybe that is not so bad.e inflation builds up and we get some extra down the line, i don't think that is a bad proposition. there was an interesting point of view, unwinding qe. loans and deposits and what that lines up telling you. if deposits are increasing but bank loans are staying steady, it means banks don't need few we anymore because they have enough to go around and there is not enough loans. david: what the charter showing his overtime deposits and loans move up in lockstep. as a new loan is made offsetting liability is the deposit. after the crisis when the fed embarked on qe is when they paid for the bond purchases they go on bank balance sheets as excess reserves. what has happened is the fed funds rate is the rate at which they borrow from one another. when he has 2 trillion of cash reserves at the fed for all banks, they don't need any overnight funds. that market is essentially dead and that is a problem for the fed. for them to actually raise overnight rates, they are having to experiment wit

we had a situation where bernanke told us they were going to start the taper in september. and so everybody was waiting for the taper in september. and they pushed it out to december. and at the time there was an alignment between the budget on september 30th and the debt ceiling. they were right on top of each other. this time they are about 40-50 days apart. so it is not as risky this time around. but in the end, if we do get a continuing resolution they would probably push it out just 30 days. >> okay. and let's say there is a shut down and that is the reason the fed does not hike. if the political bite heats up into december is it possible that the rate hike could be postponed beyond that? >> exactly. so if we push out to october and to december the ted cruz's of the world, they want to catch up with donald trump. so if you are a ted cruz and you've got the chance to really present a ton of media alpha for your campaign by making a big, big problem for the rest of the republicans, you could see a problem in october and then toward the end of the year. absolutely. >> so

ben bernanke used to talk about raising the inflation target and he got shot down and that was in 2011. you take risks and do crazy stuff when unemployment is high. when your unemployment rate is at five and none of the models are predicting anything very well, you probably want to step back and say there is risk management to be done. then you want to step back even further and say, this is not the time to double down on to en get extra devilish -- extra dovish right at the end. and the market wants almost endorsement of all that has been achieved. and that endorsement is sort of taking the stimulus away in very small increments and showing the market they can handle a 25 basis point move. that is all we want to see. joe: right now, the markets are forecasting still close to a 50% chance of a move by the end of the year, either october or november. does that sound right to you? david: i think it is higher. i think the market got spooked. they delivered a message that was probably not 100% intended to be delivered that way and it will cause reaction in the market having second thoughts

do not miss this tomorrow -- the former advisor to fed chair janet yellen and former chairman ben bernankebe on with us tomorrow for "what'd you miss?" david: thank you very much for watching. alix: emily: twitter's board needs to discuss the ceo search. who investors want to see in charge? i'm emily chang and this is "bloomberg west." billion loan a $2 against alibaba's stock. system gaining traction with corporate giants like cisco and unicorns like spotify. all of that ahead on "bloomberg

back in 2011 or 12 when others raise the rates what did bernanke do? he didn't. he embarked on qe1, 2 and 3. now opposite is happening. federal banks are -- transitory effect has gone away that bernanke used to raise rates. trish: we'll do all we can to depress our currency making our goods that much cheaper than american goods. our goods in contrast become more expensive because our fed is doing the opposite what everyone else is doing. how is that good for our economy? >> not necessarily good for every single company in the economy but remember in the united states our economy is 65, to 70% consumers. and that matters a lot. trish: jamie my, thank you so much. we'll continue coverage of the markets. you will join me shortly. i want to get to the big story, everyone. the new election polls. dr. ben carson coming out of near obsecurity to be in statistical dead heat with donald trump. moving from 6% in july to more than 20% today. that support, well, coming straight from the establishment candidates. from jeb bush, he is dropping to 7 percentage points. scott wal

it's nothing like the bernanke fed, at least not once bernanke got his act together. these jokers -- and i don't use that term lightly -- have caused a tremendous amount of selling and losses in your portfolio. idealen should tell these various presidents and governors that she doesn't want them to talk about rates and instead they should confine their comments to issues involving the financial health of their respective regions giving the fed chief herself the input she needs to make the right decisions. still i'm not about to stamp some smiley face on any rate hike, that's because of the sixth negative and maybe the worst, the needless fed-induced surprise factor. there are always plenty of hapless hedge funds that bet the wrong way with borrowed money and some of them might have to liquidate if they roll snake eyes. at times the stress is your fellow shareholders or at least the highly margined renters who hurt you with their flailing, not the actions of the companies themselves. that said we -- meaning you and i -- can navigate anything the fed throws at us. if th

. >> you know what to me sub prime is staying it smacked bernanke. >> when he gets there, all is well? >> coming up next, your tweets and the final call from the "options action" bids. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. checking out the listing on zillyeah, i like it. this place has a great backyard. i can't believe we're finally doing this. all of this... stacey, benjamin... this is daniel. you're not just looking for a house. you're looking for a place for your life to happen. zillow. ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place

do not miss this tomorrow -- the former advisor to fed chair janet yellen and former chairman ben bernankee on with us tomorrow for "what'd you miss?" david: thank you very much for watching. alix: have a wonderful afternoon. ♪ >> from our studios in new york city, this is "charlie rose." ken friedman was a successful music executive with no experience in the food world and then he decided to open a restaurant after jamie oliver introduced him to april bloomfield carry he knew he had found his partner. together, they opened the spotted pig in 2004. it was an immediate hit and it continues to maintain its popularity more than a decade later. this is a place where normal people go to feel like celebrities and celebrities go

the near zero interest rate policy was instituted by ben bernanke. it was his response to the global financial crisis of 2008. now it is janet yellen's job to exit the strategy, perhaps on thursday. >> it is an historical event. it has been seven years since the fed cut rates to zero. for the first time we are approaching the situation where they can start the process of normalization of interest rates. >> the possibility has already affected international financial markets. the process of higher returns could attract a lot of international money back to the dollar, draining the world's emerging economies of investment. >> there will be volatility. we have already seen turbulence being transmitted into those markets. there will be more, regardless of when the federal reserve moves. >> the economic -- organization for economic development and corporation is eager to see a rate hike. >> on the eve of the much awaited decision from the fed, we go to lars hunter in new york. what is your view of will they or won't they? lars: for sure, they won't. that i

bern bernanke wanted to take a risk. >> focus on these guys that's the whole thing.kly guys fed doesn't hike by the end of the year then what? >> they will by the end of the year. i don't think they'll do it thursday. >> put a selloff. >> because they put it out there. i don't know. i mean, i'm the worst at predicting when stock market will crash. and i don't to be on the -- >> no answer for me. >> no, not on that. >> i think that they're in a box they have to do it at a some point. they don't want to do it now they should have done it a year ago. but think of it this way they're going raise rates as economy slows that's what's happening here. >> how does it work? >> for the countries that tried the same thing we shall see. thunk very, very much. chris christie now is jumping ugly on some republicans. remember when he rallied against speaker boehner at the time of sandy and slow aid? he doubled down on fellow republicans. how do you think that's going down? there's no one road out there. no one surface... no one speed... no one way of driving on each and every road.

ben bernanke is on a list.fer griffin, the stated goal for these attacks is to threaten but economy. more on this coming up. on the campaign trail, donald trump dealing with another gaffe this morning, this time comments on carly fiorina's appearance, he told rolling stone magazine, quote, but that that face? would anyone vote for that? carly fiorina's response coming up, features indicate higher open for broader averages, we are off of the highs and analysts showing strength at the open. will it staff higher? jon hilsenrath reporting, federal officials not close to reaching a decision on interest rates. the sixteenth and seventeenth next week. in europe we have weakness, we have seen gains but there's a reversal of fortune, european indices are down across the board with the isn't the 500 down 1%. the dax index in germany weaker by a fraction. asia set the tone overnight, the shanghai composite down better than 1%. there will not be a hard landing for the economy. i believe him since it is all controlled. afte

gary: did you talk to bernanke during that time? dick: no. i' m happily in that long-term unemployed category, and i intend to stay there until that chair becomes available. [laughter] i think the last few years they have waited too long to resume a pattern of higher interest rates. when people hear higher interest rates, they go into catatonic shock. we are not talking about going back to a 15% treasury long bond. we are talking about going from zero to come in a worse case, 1%. wouldn' t you have love to borrow, buy a house when the rates were at 1%? i think it' s silly. donald: they also assume -- assume that if we get to 1%, the yield curve is going to stephen. i have many people who have said the yield curve will possibly flatten. what is your outlook in terms of interest rates? james: i know it doesn' t make good tv to say ditto, but i do agree. for those people who are fed bashers, and i' m not among them, i do think they underestimate or don' t realize just how close to the brink we were but for the fed truly stepping in. do you want

bernanke it, and then janet yellen after that, got what they wanted. u.s. stocks, until recently, were on a six-year care. why is it we should not expect something similar out of japan, where stocks have done well since they began quantitative easing, or europe, where stocks have been outperforming? why is that not going to continue? marc: because in my humble book wealth is being created through, essentially, a mixture of capital spending and land and labor. if these three production factors are used efficiently, it then creates a prosperous society. as america became prosperous from its humble beginnings in the 1800s, or thereabout, through the 1960's, the 1970's, but it is ludicrous to believe you will create prosperity in a system by printing money. economic stuff is him at its best. in the meantime, there was a lot of money to be made in u.s. stocks, now? -- no? marc: i did not say the opposite, but unfortunately the money made in u.s. stocks with distributedid -- evenly. benefiteden actually from the stock market post-2009. it is not even 1% of the po

ask central figure to the world, was ben bernanke alan greenspan central bankers to the world? they were to a similar degree but janet yellen speaks it more openly. tom: i was stunned. because of thely last year when she has been asked questions on whether she would consider making questions and think about u.s. monetary policy based on the perceived impact it would have on a perceived market, and she basically said no, we need to operate with their own internal domestic mandates. clearly, she cited that as a reason for not moving. tom: mike, with your perspective, this is a new global speed, isn't it? part of it is in use. mike: it is but i want to ask nick because he follows the world, when the fed talks about raising or lowering interest rates, everybody pays attention. the brazilian finance minister talks about how terrible the united states is, but when mario draghi once to maybe do more qe -- maybe wants to do more qe, no one wants to. nick: this is a problem for but saide pboc has all that they don't want the fed to hike and they're concerned about implications with the

i'm just saying it smacked of bernanke in 2007 saying -- >> he didn't -- >> screaming all is well. >> didn't like that e-mail at all. >> coming up next, your tweets and the final call from the options pits. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. ahh... steve, other than making me move stuff, ces. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got

within bernanke's textbook, it is non-greek english. line is the fed is working in a model. there is a lot of noise outside the model. do those reaction functions work in 2018? jim: i think that is 100% correct. this is the way we have to think about it, what model is the fed working with. that is how we try to anticipate their reaction function. do we know if it works out of sample in 2018? the answer is we don't fully know. the -- but what we do know is we have a set of conditions that .ave tightened significantly equities have come down. it is going to affect the wealth going forward. we don't know how much this tightening of financial conditions will impact the consumer, the economy in the next quarter. tom: you may not know who jim caron is, but he is a rock star in the treasury business -- strategy business because he has had to go through a cycle where you are a little off the mark, a little on the mark. the battles of the fixed income more. mike: props to our bookers because they found people who have done this before. people wh

mark: i went back and re-read ben bernanke's famous speech on deflation.he polity is and has been followed to the letter. it's failed. it's turns out quantitative easing does not avert the risk of deflation. the employees of citigroup is talking about the global recession. he also seems very worried that they have not slay the dragon of deflation by any means anywhere. and the japan experience seems more and more instructive as time goes on. in the u.s.he u.k. you are not seeing that inflation forecasting horizon. and that is the bit that worries me. that if central banks have steered businesses -- if i was running a business in this environment, mi going to build a new factory? 0-- am i going to build a new factory? andreas: it is a discount rate. thatine: do you agree deflation is a huge concern? does it mean the ecb, whether they do extra q.e. or not? andreas: of course it is a huge concern of the markets. that is part of the reason we are seeing volatility. because the narrative today is that deflation and anything that might possibly lead to deflation

this weekend on "sunday morning" bernanke talks about why no one, including him, saw the u.s.us, what he learned from his own family about the great depressi depression. >>> a new look at the struggle to balance women's lives and their careers. ahead, a fascinating discussion with author anne-marie slaughter who is in the toyota green room, female announcer: through sunday, get sleep train's very best mattresses at the guaranteed lowest price. plus, pay no interest for three years on the best brand name mattress sets. but the best rest event ends sunday at sleep train. ♪ your ticket to a better night's sleep ♪ >>> 40% of american women are the bread winners in their homes but 56% of mothers say it's hard to balance work and family. anne-marie slaughter looks at these challenges in her new book "unfinish the business: women, men, work, family." she writes about making the difficult choice to leave her job at state department working under hillary clinton for academic career with more flexibility for her family. she's the president and ceo of new america. good morning and thanks

janet yellum, she took over from ben bernanke.y are all mulling the decision today and tomorrow as to whether this economy is now healthy enough to sustain a teeny tiny 25 basis point rate hike. a quarter of a single percentage point. in the past, we were in an emergency type situation and then the economy slowly started to strengthen and just a couple of months ago, yellun said it is the economy that can sustain a hike. but then sfr enter china. the stock market had huge problems. and china had to intervene so exports would be more attractive to the countries like the united states. the market had trouble. and here in the united states, we are seeing better employment numbers and unemployment rates, we saw hewlett packard suddenly announce they are laying off on top of the 55000 another 33300 jobs. and so head winds and paired with tail winds and it is anybody's guess as to what will happen tomorrow. it is a huge nail biter. >> with the market up 100 points right now, they are seem to discount the affect of a rate hike. >> people

matt: i love the ben bernanke quote, you can't eat your ipad. at my take a look bloomberg terminal, we have the rule out, i wonder what you think about what this says. if you put the neutral real rate 5%,o -- at 2%, and nehru at it looks like we should have raise rates sometime in 2011. we had another bout of qe after that. do you think the fed has missed the boat i a lot but -- by a lot? aaron: i drop your estimate of nehru. they had 4.9%. i think you are somewhere around 4.5 or 4.7. the fed lowered their increase of economic growth down to 2%. it had been 2.5 a little while ago. that's reducing the output gap. the fed is making up the output gap by saying the economy can grow as fast. the should concern policymakers of all sorts because long-run economic growth is the best solution to most of our problems. matt: where you put a new scroll real rate? -- a neutral real rate? no matter what variables you plug-in, you still get more than zero. aaron: it's a very useful concept. themember the size of recovery is proportional to the size of the rece

concerning to the overall market, but i think the other concern is is the fed losing zploel is the bernanke do we trust the fed? if you look at all the fed governors talking, is that really what we need? we've got all these governors saying, hey, we might raise rates, they come out of the meeting saying, oh, wait, we're not. i any financial markets have lost confidence in the fed to really understand what's going on in world markets. they should have been saying three months ago they're not going to raise rates because the world raised rates by entering in qe across the board except here. so i think there's a confidence issue. for a brief second it looked like we were going to brake out of the market volatility and malaise we've been in for the last month. it looks like that's not going to happen. would he have another four to six weeks of real volatility with multiple 1 and 2% moves a day because really we're still trying to figure out exactly what is going on in the fed's head because we're not sure they know what's going on. >> john williams, san francisco fed president, to him he still

they're the only adults in the room, i said the same thing about ben bernanke prior.g what it's been doing, this recovery, tepid, wouldn't be happening at all. the market is built on helium and wouldn't be moving at all. that might not be such a good thing, scott, but the fed is really the only action in today. >> it is probably for now and we may be all talking in high voices they were using helium, but here's the thing. to lindsey's point, the fed is an extension of d.c. janet yellen is under the thumb of the administration, so they -- >> scott, i love you dearly but not fair. >> i love you, too. they don't want to do anything risky before they election next year. that's for sure. >> they have moved in election area years. thank you. we have breaking news. i appreciate your taking the time. >>> you probably heard about carly fiorina and the face response, and i thought you -- wouldn't this be a agreement moment to talk to megan mccain, the recipient of zingers from donald trump. her dad chose to just quietly stand by her side. he could have gotten on mr. trump's lev

what you see from janet yellen is to avoid that mistake that ben bernanke made to avoid 2008 and 2012. alan: i have a different view -- guest: i have a different view. the problem is we have dollar influences. other influences. labor costs are getting into this. i don't think the fed can fix any problems david is talking about. the federal reserve is not there to ask structural process -- problems, stagnant incomes. they are fiscal policy problems. to say we don't have fiscal policy, let the fed do it, means that the fed is inflaming risks. glen: it is into the zone the fed is arguing for. there is no argument to keep rates at zero. raising the rate is only going to have a material effect. it is more a matter of putting the economy on a normal course. creating au are system that is getting hooked on the idea that money does not have a price. i lived in japan in the late 1990's and it is an insidious, subtle thing, this zero rate policy. .t begins to breed bubbles we are already seeing that. the longer it continues the more difficult the process of normalization will be and the more th

raise rates in september and the possibility that janet yellen will raise rates of december with ben bernankethere your to start in 2013 and then he started in december. you think people make that connection? mike: they are making the connection in the sense they don't think the fed has a good communications policy. on question is if they plan december, did they start to tell people in advance it is coming? when the fed did not going september, they talked of the possibility of a move after that. they said that the next meeting a would formalize the and of this process. if they do that, maybe they get back in the ballgame but you have people like citigroup coming out and saying based on what we know now, we don't think the fed will move late into the first quarter of 2016. if the fed has a message for december, it is not getting across to the markets. matt: maybe that is a janet yellen will put across a 5:00 p.m. thank you, mike mckee, joining us. radio and bloomberg bloomberg televisi for complete coverage of the fed chairs speech at 5:00 p.m. eastern tonight. if you are not near a radio or

the bernanke fed kept a close eye on the previous prices and would hold off based on those. janet yellen indicated she is keen to raise rates to get started to make sure that they don't get inflation get away from them and she's not paying that close of attention to what's going on in congress right now but ultimately they'll have to. if congress is threatening at the fault. if congress is getting ready to shutdown the government those can impact economic growth and consumer confidence and stock market. it's hard to see the fed raising rates at the same time. so if those things were to come together at one time the fed would have to punt until 2016 and wait for washington to figure it out. maybe washington does figure it out. fed stays on track, raises rates in december and we're in good shape but if it's a total crisis in d.c., the fed will have to pause. >> thank you for getting up early. >> as always. i want that tesla. >> 132,000. >> you guys could work that out for me. change, right? >> for you, maybe. >> yes, thank you. >> cnbc contributor. he's asking for a lot don't

meltdown of our institutions with such a magnitude that when i asked the chairman of the fed, ben bernanke, what he thought what the secretary said, he said if we don't act immediately, we won't have an economy by monday. this is an economy brought to us by the republican trickle-down economics. trickle down economics. tax breaks for the rich. if they result in trickle down and result in jobs, that would be good. if they don't, so be it. that is the free market. those are the comments of our republican colleagues. resistance to every appropriate regulation. a trickle-down attitude that took us to a near depression, the greatest recession that we have had. the economy that president obama inherited. in january after the september 18 meeting when the president took office, you know the figures. the unemployment rate was flirting with 10% and now just over 5%. the deficit was 1.4 trillion and now under $500 billion and we want it to go lower. the stock market has gone from just under 7,000 to 1,700. 10,000 point change in the stock market. the oil industry is on its eels and with the policies

to the administration figures, whether it was tim geithner or whether it was hank paulson or ben bernanke, they have done a terrific job. liz: what is doing the best of all your businesses? does one jump out? jewelry, who knew? >> even though insurance had an increase in auto accidents at geico and particularly in the second quarter, insurance business has been quite good us to over the years and continues to be. liz: well, we can also talk about oil which is horrible, concerning the fact that oil prices have dropped exponentially. burlington northern railroad which gets so much revenue from transporting oil and oil product services, will you expect revenues will be lower this year than last year? >> we're the only railroad that's up on car loadings versus last year. but that's partly because we didn't do so well last year. oil is only 4% of our car loadings. people think it's a lot because there is the publicity attached. we carry 200,000 cars a week, 8,000 cars will be crude oil. 4%. so coal's big, grain's big, go down the line. but burlington northern actually is, it will probably have

current arrangement when congress calls them up in late 2006 to say who will you give these two and bernankesays and this is a pair of phrase i can't disclose the recipients because they will focus -- >> the issue is whether they need to be independent and if they are hanging over the fed the regulation might be changed after might be deciding to do this in the fed. that is implementing the policy in my view. >> thank you very much. >> doctor murphy you may be excused. any further witnesses. >> we have closing statements to the jury and first we are going to have doctor murphy and then doctor connor. we don't have time. what about like a minute? >> we don't have time. >> this is out of my hands. we don't have a have it is good to have been a freedom fest. that's why it's such a beautiful banana split. so what would you mentally translate your thoughts to the audience into the jury. very good job. thank you very much. okay ladies and gentlemen you have heard various witnesses. it's now up to you to decide. it is your job to determine whether the preponderance of evidence supports the prosecut

example we talk about on your show is ben bernanke, couldn't get a mortgage after he left the fed. so, the fact we're talking about a bubble means pretty good chance we're not one. deirdre: thank you both. you will be pack with me later. monica and michael, back with me shortly. person who has the largest real estate fortune in the world, blackstone's john gray. he has $100 billion worth of responsibility. speaking of global perspective, president obama met with cuba's president, raul castro. this is second time the leader had encounter. this is first formal one since u.s. and cuba restored dip proat that time tick ryelations in july. it has been intense week of conversations. yesterday president obama and russia's president putin clashed over syria. world leaders are grappling for solutions to the crisis in the middle east. >> translator: we must join efforts to address the problems all of us are facing, face generally broad international coalition similar to coalition. similar to hitler coalition it could unite broad range of force. >> let's remember how this started. assad react

it is perfect since late 2008 when ben bernanke went to zero. that is because all correlation increased when he went to zero. as a result, as long as rates are low and below zero on a real basis, the risk reward favors oil. that is to say, the broad dollar could be up 5% and oil would be flat in march of 2016. it of the broad dollar is down 5%, oil is up 40%. risk reward, i like oil. olivia: interesting. thank you so much and for making this time to join us. up, our chinese markets going to stabilize or should investors brace for a hard landing? nouriel roubini gives his thoughts, next. ♪ olivia: welcome back. i am olivia sterns. stocks plunging following the jobs report. let the with the market stands right now with matt miller. matt: stocks down across the board and it is level, we're going to see pre-close here a loss of more than 3% for the week, making this the second worst week on the s&p all year. 250jones industrial down points, nasdaq falling about 1%. i want to take a look at some old economy companies that are taking big hits, startin

i guarranty there will be no crossover votes for ben bernanke from republican. >> i don't know of anyl that has anything other than hillary clinton beat donald trump. >> there are none of those. trump is beating her. trish: actually changed recently. donald trump is gaining on hillary clinton in the national poll. everyone is gaining on hillary clinton right now. i think it gets right book to this sense of trust. american voters have a hard time relating to hillary. that is difference between hillary and joe biden. if you want democrats to be elected i can't understand why you wouldn't want to put your most likeable person out there. >> let me get a word in here. i think hillary clinton is hitting her stride. i think she is talking about issues much more important if she became president than email. we're talking about climate change. we're talking about prescription drug coverage. trish: my goodness. climate change. >> prescription drug coverage. trish: you heard her yesterday there, she actually sent biotech sector plunging because everyone knows we would get no innovation and the -