balance sheet this year, joining me to talk more about the global economy is former chairman alan greenspan 1.4% who you do you think we can break out of this stall that we're seeing in terms of economic growth? >> it is going to be very difficult. first let me just say that obamacare is clearly underfunded, but so is every social benefit program that becomes underfunded when are we going to get one that has more money than it needs? but this is very important issue, because looking in background, is a very much more difficult problem than even obamacare. and this is essentially the fact that for the past 50 years, entitlements have been going inexorably partly from side of the republicans, i should say mainly from republicans and to less aer extent from the democrats. but the problem is that that number is crowding out dollar for dollar gross domestic savings gross if domestic saifksz key to gross domestic investment leads to productivity what our problem is what the problem of across the developing world has been, for the last 8 or 9 years, is essentially that we have very slow rate of pr

this is the alan greenspan conundrum, making another appearance in the treasury market, one that spellsower yields. cycle, theate hiking 10 year yield slipped, mystifying the former chairman. and inflation appeared to mark a return to that conundrum, especially china, the biggest foreign haver of treasuries, so we money going into the treasury market keeping that rally going despite this environment where the cost of borrowing is going up. right, let's look at what is with 28 minutes before the start of the session in hong kong. here is sophie. the dusting off the tech route, limited impact in the market sanguine about the upcoming fed decision, but the dollar helping support asian currencies, led by the korean won, snapping a three day drop. treasuries are keeping steady. market volatility has tumbled to a four-year low. a ship, retail sales, factory output, and fixed asset investment out of china in an hour. aussie shares climbing ahead of that. south korea, and improvement in the jobless rate to 3.6%, so the kospi is set for a new record. up .2%. oil the biggest casualty of the , cru

coming up, former federal reserve chairman alan greenspan my special guest.headlines. a week of big swings as the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple

alan greenspan was never a regulator. he was always an interested director.ation has become more and more important. the trend seems to be shifting the other way. ultimately, credit and credit .xtension is at risk the risk of another recession because if the price of credit rises in a levered world, then the ability to service becomes at risk and company start to default on positions, start to be liquidated, and markets move the way they should not move. erik: something to be vigilant for. bill, thank you as always. bill gross of janus henderson. we would love to see him or in our building. vonnie: particularly on those final comments, we will get some reaction from bruce richards, who will be joining us at the top of the hour. thank you. let scott to some developing news, oil trading much lower following inventories. gasoline demand is lower as well. at a time when things typically build, but everything has gone against the grain here. ,rude imports rising last week 8.3 million barrels a day. the bill goes against all expectations. down four .4%, trading at

alan greenspan. and tune in for another episode of "wall street week." thank you for having us in your homes. we want to wish you a happy 4th of july. charles payne is here with "making money." charles: stocks ended mostly higher. i'll show you my ideas and strategies. senate republicans heading home for the 4th of july recess without a new bill on healthcare, missing their ownself-imposed deadline. the call for a repeal underscoring the divide in this republican party as they head on out. katrina, golly. obviously we know the republican party is a party of ideas and a lot of different factions. this is something of a let-down, isn't it? >> yes. although you have many republicans who feel that this particular bill isn't the way to go, they made promises. and now it's time to deliver. charles: your organization got some of the blame. putting out the negative ad against one of the holdouts. do you feel responsible for making this thing worse, your organization? >> not at all. the on reason why we ran that ad is unlike the other senators opposed to the curr

liz: marianne rafferty interviews former fed chairman alan greenspan.pisode of "wall street week." thank you for having us in your homes. we want to wish you a happy 4th of july. charles payne is here with "making money." charles: stocks ended mostly higher. i'll show you my ideas and strategies. senate republicans heading home for the 4th of july recess without a new bill on healthcare, missing their ownself-imposed deadline. the call for a repeal underscoring the div t

are we in an alan greenspan situation? this is what alan greenspan had to contend with.having a rate hike, but yields went lower. are we going to see the same situation? josh: we haven't seen that for a while. we are living in a slower growth world structurally. trend growth is lower. we are in a seemingly higher situation related to opportunities. all those things constrain the real interest rate. they keep real rates lowered. alix: that is a fundamental call versus we have china and portfolio managers and japan buying. which is it? josh: fundamental. the fundamental macro drivers, demand for investment capital. those have continued to be both pushing and holding down real interest rates. it doesn't mean it can't be a cyclical upward pressure from time to time. the global cycle seems to be per from -- improving. other central banks may start to pull back a little bit on stimulus. that can put on -- upward pressure. all this is constraint which are structural which keeps real rates from going back to where they were in the past. the conundrum is still alive and well. ali

alan greenspan's rise to the top, one of the great stands of the time. >> guest: alan greenspan was a character i originally planned on doing a 2000 word section on him. to the whole history of the modern financial service industry, his attitude, it is derived from lack of i and rand, he was in accolades of hers. he was very famous for being this great predictor of economic events but when i looked it turned out he had been wrong about almost everything he ever predicted. he was mostly, sort of like a lot of famous hangers on who hang around rock bands or other celebrities, famous for being somebody who was really good at telling politicians what they wanted to hear. the gift of being like a president was what allowed him to serve in the capacity he did for so long, not that he was a great economist, it was that he was very skilled politician. >> host: "the divide: american injustice in the age of the wealth gap" came out in 2014, what was thrown on the dock was not a wall street firm but housed in the opposite direction, moved to the north, a family-owned community bank in chinatown

i will never forget alan greenspan's irrational exuberance comments back in 1997, where he said stocks overvalued. 2000 andntil march of had one of the greatest bull markets in our history. stay with us. we will talk about the fed in the stress test. our next guest talking about the banks, a reverse public ritual that belongs to the past. this is bloomberg. ♪ yvonne: this is "daybreak asia," i am yvonne man in hong kong. betty: i am betty liu in new york. one of the big banks stumbled in part two of the fed's annual stress test. capital one has to shore up risk oversight to fix material weaknesses. us,t minerd is back with cio of guggenheim partners. josh rosner joining us, as well. i do not get the sense you like these tests. josh: i do not like these tests. they were important during the crisis, they gave a sense of confidence that the fed has this. but at that point, there was a lot of missing information the fed did not have, they were take-home exams. now the fed is saying we will focus on one specific portfolio each year, primarily. betty: the fact that some banks, fewer and fewe

. >> hi, i'm alan greenspan. how are you?we have to update that so next time you say hi, i'm janet yellen >> that guy was so great he's like, no you're not >> he wasn't a plant -- >> no, he wasn't no, you're not you're on idiot. basically -- >> hi, i'm alan greenspan. how are you? >> dirty look. >> briefcase i had the -- the overcoat. check out the futures this morning. >> do people remember the briefcase indicator? >> i don't know. >> i'm worried about the next generation >> "squawk box" will be right back >>> time now for today's aflac trivia question -- are you ok? what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think. visit aflac.com and keep your lifestyle healthy. aflac! >>> now the answer t

it is a new model for financial opportunity and former ford chairman alan greenspan thinks that the finanicalchoice act is the right choice to help citizens realize their dreams for pope thinks to the chairman for his leadership and we support h.r. 10. i yield back. >> i yield one minute to the ranking member. t >> thanks for yielding. and even the president even knows anything about american history but that is no excuse for this body toe ignore the recent history of this country. to return us to the commission of a regulatory environment too far as the worst financial crisis that i have experienced in my lifetime, the recession. millions of people lost their jobs and everything they worked for. because they were completely unprotected against brele institutions and creditorsin against them. so institutions and organizations to use deceptive practices so the of cfpb under this legislation would be barred would be going to bat for those who take advantage of. it makes no sense for a we ought to reject it. >> i am happy the to yield one minute to the gentleman from ohio. stron >> as we rise in

alan greenspan's conundrum back rate04, 2006, there was a year cycle, now we have almost the same thingslowing growth and inflation marking a return of this riddle. especially after china, the second-largest holder of treasuries, said it is ready to buy. let's take a listen to another fund manager talking about how active prices and equities also are highly valued in that is of concern. >> it worries me a lot. valuations, ift there is such a thing as the 11th decile, that is where they are. bond bullse crazy and stock bulls have been doing well. but everyone thinks that will change soon. yvonne: it is interesting, bonduries the least bad investment at the moment. we will watch that bond rally. in the meantime, we take a look out of washington. fired fbi director james comey set to testify to congress that president trump asked him to end the investigation into the then national security adviser mike flynn. his prepared remarks were prepared prior to the hearing. it let's bring in our national security editor to track the developments out of d.c. good to see you. what was the biggest tak

the first one under a alan greenspan. in the middle you have ben bernanke. and then janet yellen. she said inflation can be noisy. she said g.d.p. can be noisy. what is not noisy? >> the fed are being noisy at the moment. why they are being noisy, they are not targeting inflation 2017. they are targeting their own credibility. even though there has been a spriking downgrade in the inflation expectations from 1.9 to 1.6 for the year, they are keeping that policy path unchanged. therefore i think in 2017 it is the case of out with dependency and in with restoring credibility. francine: if they are wrong, it will really hurt their credibility. >> they don't want to shake the boat or change the course very abruptly coming from the message they gave at the end of the year. i think the fed is trying basically to keep things standardy. i think the result of the -- it is not necessarily shocking. the tweak in the balance sheet, it is very important. kind of the unknown factor we have now. it is going to be extremely smooth. that's pretty much the big message we got from yesterday's confer

skeptical actually about what i considered the irrational exuberance to borrow a phrase from alan greenspanhe election, the election of mr. trump and having a republican-controlled congress because just legislative process would tell you with only 52 republicans in the senate, that was going to slow thing down. they will need to pull democrats on to this legislation. obamacare that would be a tough sell in the united states senate, to be repealing or reforming obama's legacy. so i think the stock market did get a little ahead of itself. neil: dan, maybe it is not about any of that. what do you think is going on? >> neil, as you know, good to see you again, it is just a lot of very, what i consider money manipulation the public is not aware of. if you look at price of the stocks balance sheeted with the federal reserve and money put in, we've been talking about over five years, yet this came continues to go on. neil: what is the game? what is the manipulation? >> the game, money flow is going into the system. we don't know exactly where it is goings. that is unwith the issues but the federal

many just took the fed for their word, jim bunning stood up and challenged them-fed chairman alan greenspan and many of his colleagues looked at him in dismay because they believed that the fed just deserved deference and this great economist should always be taken as being right in what he was doing. but jim bunning in the end was right. as fed policies ended up being one of the causes of the great recession of 2008. senator bunning's legacy lives on. in his amazing wife mary and their many children and grandchildren, including his grandson eric bunning, who has been an important part of my team sense i first took office. and i just have to tell one story from the campaign trailsmark of my colleagues have told these stories but i've got to tell one that's personal to me. jim bunning was a legend and we all revered him and when i made my first run for congress, it was kind of coming down the homestretch and we were the underdogs, but i really respected senator bunning and i wanted his political experience and advice. as we were going down the homestretch of the campaign, it was a tight elec

with a they talk about somewhat rich valuation, you and i remember alan greenspan of the 1990's talking. to tightenmething it, it was too late, we were getting ready for the recession. i think that's the likely result if the fed continues to hike. guy: the eurozone inflation remains very subdued. if he starts talking up in the eurozone economy, we will see what happened yesterday, just the beginning. the euro will go rocketing higher and will dampen down and the ecb will not fail to deliver this exit from stimulus in think it will be with to show us. komal sri-kumar: absolutely, guy, that is my view. world, banks all of the ecb, bank of england, bank of japan, they are trying to talk tough but it is not going to work out, especially in the case of the eurozone. he cannot afford to have the 1.4% to 0.5% against the dollar. that is as the ecb is tightening. that is going to be a negative, negative for investment. before too long, the ecb is going to reverse policy. keep in mind in italy, we have banking issues. as have not had elections yet and they will have it in the beginning of 2018.

us.r hooper with say this, alan greenspan has told me repeatedly that a good financial system goes rightdo you agree? peter: absolutely. the improving health of the u.s. banking system, the growth of factor thatis a after pence a good macro performance. the problem is in the u.s. economy the supply side is growing slowly and productivity is not picking up, but aggregate demand is moving along well. francine: thank you, so much. bank hooper of deutsche still with us. coming up, an exclusive conversation with governor mark carney. we did not talk about bank policy, it was agreed beforehand that we would talk about climate change. longer-termfx and -- some of the effects longer-term of climate change. european stocks down 0.3%. this is bloomberg. ♪ francine: this is bloomberg surveillance. let's get straight to the first word news. we are expecting a decision on sky and fox news. here's taylor riggs. eliminateopean union a major roadblock to progress in the brexit talks. the block could back off its demand that judges protect the rights of european citizens who live in the u.k. that would p

what have you learned over the years and through the crisis through the discretion of alan greenspan zealand or john taylor? isert: i think discretion extremely important. the taylor rule as you say -- i suppose it is nobel prize potential. it is a description of what the fed has been doing. as to what it should do, i think that requires sensible human judgment and a study of history. ben bernanke was a great chairman because he was a student of the exact phenomenon threatening to repeat itself, namely the great depression and i think he understood some of he may not be big on this in the way he talks, but he understood the importance of the narrative -- and the importance of not letting a bank run go -- not letting people think there isn't decisive action being it fromen to prevent sinking into a depression. that depression narrative was on its way back. that is not something the taylor rule can deal with. it is something that requires presumably,nt and and taylor is a smart guy act sensibly. we cannot just rely on rules for monetary policy. especiallyight, given all the uncertainty

remember alan greenspan's conundrum in 2004 and 2006. u.s. yields were declining.ar story now. is the conundrum going to continue? gulf states, china, putting money into the u.s. treasury market back then. the greenspan conundrum, many reminded of that in this current environment. francine: the imf has raised its 2017 growth estimate for china to 6.7% while cautioning that reforms are needed to break away from expansion. -- debt-fueled expansion. >> we see the chinese government providing some support through fiscal policy and the way credit policy was being managed. we think this is the right forecast. we expect the economy to slow a little during the year, but we think 6.7% is the right one. francine: retail sales in industrial output data in the world's second-largest economy remained resilient while signs have emerged that measures to cool the property market are taking some effect. lets the to malcolm scott in hong kong. first of all, an upgrade, a vote of confidence, but what is the biggest risk left in china? >> thanks, francine. we've got this recognition o

assets that is a 10 year treasury one final point 10 years alan greenspan when we had housing boom talkedes long term rates with flat to going down we have same thing going on again right now. maria: jon you think quarter point move next week by fed on wednesday. >> put that in the bank. maria: all right, in the bank, jon hilsenrath thanks so much, right here fox business network all day coverage uk elections special reports from lou dobbs cavuto coast to coast 7:00 pm eastern we start to get results after the close tonight, out of london, coming up verizon makes cuts lay-offs expected from company after latest acquisition deal, deals there locked out of housing market why millions of young people are actually being shut out. we've got the story. back in a moment. ♪ ♪ at bp's cooper river plant, employees take safety personally - down to each piece of equipment, so they can protect their teammates and the surrounding wetlands, too. because safety is never being satisfied. and always working to be better. will you be ready when the moment turns romantic? cialis for daily use treats ed and

i don't like interest rates on a real basis that are negative we had this alan greenspan, bernanke, yellenra of negative interest rates i would like to see interest rates level. >> the critics who worry about the unintended consequences of remaining at zero for too long were worry being a bubble. >> yesterday the fed fund rate had the flow statement we can call it an everything asset bubble not in commodities particularly but in real estate, stocks, a variety of things. >> there's a real estate bubble? >> commercial real estate. >> you think the -- you have been thinking -- the stock market rally has been sticking in your craw for three years >> it's really interest rates that are the bubble. anything priced off interest rates are inflated as a consequence. >> what do you think how much of that do you agree with half of that quarter? three quarters >> so i guess i would disagree they're behind the curve by looking at inflation in the overall economy, it's still pretty subdued typical argument that the fed is behind the curve is that the economy overheated, there are signs of excess inflati

. >> alan greenspan told me years ago, when did you think about the testimony? testimonies are not about me. they are about the senators and congressmen hearing themselves. greenspan said that years ago today. big stories other than that. does this go away? it's not going to turn to obstruction of justice. dagen: it's all about trump and what trump told comey. maria: the federal reserve to a rate increase. what to expect. bluebird struggles to put its troubles in the rearview mirror. the right-handed company forced to resign. that is david omdurman. the latest fallout for that company next. back in a moment. ♪ think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov maria: welcome back to a board meeting that discussions had bluebird. tran 11 with the latest resignation had bluebird. >> good morning. ceo travis kalanick announced he would be