against fraud she was shocked to learn that alan greenspan told her over lunch that he believes the markets are better at regulating fraud and he is against it so now he's saying oops when he safely away with his pension fully intact yet he's working for over there pepco with bill gross advising pimco and the tories front runner an insider trader so you guys make good money doing fraudulent activities while in office out of office you probably can't go to the bathroom without committing some fraudulent activity thankfully my final note here this was sent in by a viewer of the show who actually is using one of these mac's kaiser gold coins here's a picture of oh i sent an email that demanded evidence to put my picture on the new russian global gold coin not haven't heard anything back yet then finally max you know those gold coins as max keiser gold coins might come in useful for the final savers versus speculators dead or versus creditor bubble of all jeremy grantham the fed is creating its last bubble. so he said to. what i worry about. the fed's activity. q e two is just the lates

well alan greenspan is a dork and a face a terrorist he should be up on war crimes but basically all the problems that the result of the fed's artificially keeping interest rates low have resulted in the growth of fraud in other words you need to distance center vies fraud you need to make the cost of money high enough so that the risks associated with borrowing to start your fraudulent activities are diminished if you make the price of fraud so cheap that any goombah can borrow billions and start anything crazy scheme that they can concoct in their diseased mind like a bernie madoff and then if they get caught they either go to some celebrity country club jail or pay a small civil fine or get put on the cover of some time magazine then you're not going to stop the flow noria well importantly earlier in the year we covered the fact that brooksley. bourne was fired forced out of government by alan greenspan and larry summers because she wanted to regulate against fraud she was shocked to learn that alan greenspan told her over lunch that he believes the markets are better at regulatin

alan greenspan, dr. greenspan, let me begin with you.we on our search for jobs and on our overall economic outlook? >> well, our search for jobs is still -- not doing too well. 10% unemployment rate is the consequence of the fact that this economy is not picking up the way it ordinarily would out of a recession. and the basic reason is that unlike previous recoveries when, for example, we would be getting very significant pick ups in building, residential, nonresidenti nonresidential, we're not getting that today. it's a big hole in the economy. and the reason, essentially, as far as the business sector is concerned is that business is highly uncertain about the future in a way which i've never seen it before and a way in which the data suggests has never, in fact, been so depressed. and unless and until we can begin to lift that uncertainty, it is very difficult to see people reaching out into the longer term. let us remember, buildings are 20, 30-year investments. >> right. >> what the data show is that extremely high risk aversion in

alan greenspan, dr. greenspan, l me begin with you.here are we on our search for jobs and on our overall economic outlook? >> well, our search for jobs is still -- not doing too well. 10% unemployment rate is the consequence of the fact that this economy is not picking up the way it ordinarily would out of a recession. and the basic reason is that unlike previous recoveries when, for example, we would be getting very significant pick ups in building, residential, nonresidenti nonresidential, we're not getting that today. it's a big hole in the econom and the reason, esentially, as far as the business sector is concerned is that business is highly uncertain about the future in a way whch i've never seen it before and way in which the data suggests has never, in fact, been so depressed. and unless and until we can begin to lift that uncertainty, it is very difficult to see people reaching out into the longer term. let us remember, buildings are 20, 30-year investments. >> right. >> what the data show is that extremely high risk aversion

in the united states the fact of the matter is that you know you had a good article even by alan greenspan saying it would look the u.s. would like a weaker dollar and so the u.s. feels a little bit of vulnerable on this point the argument from the u.s. side is that is that look we're not aggressively trying to weaken our dollar here we're just trying to provide a little bit of cushion here and that number you know what the fed did with the six hundred billion even though it's a big number it's still not you know two trillion dollars or this shock and awe that you know some people were concerned about and that we're actually going to try to be a little bit more measured and more balanced on our approach so so what we have here is is you know the u.s. i think vulnerable to this kind of criticism that that you mention the u.s. is not going to back off on pressuring china but to the extent that you know the u.s. would like to get a lot more aggressive pressure on on on china they are not really getting it but having said all that the chinese also are looking to and to some extent to deflate s

the alan greenspan, said. you can depend on the markets to correct themselves and know what they were doing and we found that they didn't. but this regulatory art of jerry corrigan and others like him were lost. we got into this period in which regulation was ridiculed. there was no regulation at all. we only found that out at the very end, during the nadir of this crisis when all of a sudden everyone from treasury secretary hank paulson and the bush administration ben bernanke, realize the financial system was something they no longer comprehended. and the extent that this sort of shadow banking crisis, these products that or off the books and not monitored, were sinking the system. that realization came far too late to do anything about it. host: michael hirsh writes in his book -- also lost was any sense, finance, would complete a least came to dominate economy rather than serve in this traditional role as a supplier of capital of the real economy of goods and service. talking about the serial major of the

federal reserve alan greenspan has weighed in against the policy of weakening the dollar and driving up exchange rates in the rest of the world. the u.s. central bank and china is also pushing down the u. ud to boost exports these currency wars could spark global trade protectionism and provoke a crisis much sharper than the one coming is only just recovered. time to see how the markets are forming now here in moscow the bourses have slipped into the red zone bank and was never among the biggest losers but helping lend support. putting on around one of the help of around a half percent on the r.t.s. this hour and stocks in europe's are falling this hour lou losses for the financial sector offsetting earnings announcement from the likes of siemens and bt group in london bt shares rose three point one percent after the telecoms from increased its forecast for full year earnings. back to russia. and a group of investors are looking to buy out into twenty five percent stake in north . this is according to realty news agency whose sole which also owns a twenty five percent stake in the ni

former federal reserve chairman alan greenspan. it was he that slashed interest rates and kept them love -- low. that is when the gold rush began. in 2008, his successor ben bernanke cut rates again and gold is now selling for $1,400. some are asking if the record price may have less to do with the high value of gold than with the low value of the dollar. said chairman bernanke, not only is he keeping interest rates close to zero, he is printing more and more money. the world bank president has called for the introduction of a new gold standard, an idea rejected by many analysts. >> we spoke with an analyst and asked if the current gold prices spur worries about the state of the global economy. >> definitely come up reseat the detriment around the globe. -- definitely, we see the detriment around the globe. given the backdrop of an inflationary policy, and the flexibility of asian currencies, they fear the global inflation will pick up to a fast. and people will go to gold as a safe haven. you do not actually have alternative sts.

. >> let's talk about alan greenspan recently criticized dodd frank arguing that it will impede economic growth. what is your response to that? >> that's like being called silly by the three stooges. alan greenspan's failure to do any sensible regular fwlags in the financial area is how we got into this mess. in 1994, the last democratic congress before the one that we are now losing passed a bill called the homeowners equity protection act mandating the fed to restrict bad mortgages. greenspan refused to do it. he said, the market knows better. he said, don't regulate derivatives. yeah, there was certainty. the certainty was that any financial institution can do whatever the hell it wants to do and it brought about this terrible crisis. we have responded to that and i think here his predecessor paul volker has a better part of the argument. we listened closely to him and others and we imposed some restriction that is greenspan should have imposed. now, the notion that we have created the uncertainty, this is the man who has acknowledged that his failure to use regulatory powers caused a

but alan greenspan was id logically opposed to regulation as he says in his own memoirs.vely turned his back on that part of his job. >> reading his memoirs. you have to be kidding, the guy heading the fed is a libertarian. you can't be a libertarian and run the fed. i want to throw another game out there. tim geithner. he was not there in the new york fed in the entirety of the '90s, but he was there in the worst of the bubble explosion. and he testified before congress when he was affirmed as treasury secretary, he said i've never been a regulator. did he misunderstand his job? >> you know, some people said one of the reasons that the guidance on nontraditional mortgages came so late in the game, came in 2006, the regulators cracking down. one of the reasons it was delayed was the new york fed. their belief in the power in the market. the market is making the loans. who was whispering in their ear -- the market was allowing the loans. >> the consumer advocates were screaming from the tops of the hill tops saying these loans will not be repaid. the fed, the occ did not d

it was alan greenspan who referred to that as the big fat gap. >> is david maxwell still alive? >> yes. >> did he talk to you on the record? >> yes. >> what did he do over those 10 years that specifically saved fanny? >> he took a company -- the washington post had a company -- had an article saying it was headed for the biggest financial disaster in modern history. it was going broke at a phenomenal rate. like many of the s&l posted, it had bought mortgages at a time of rising interest rates and was stuck with fixed-rate mortgages paying one thing all the cost of funding was going through the roof. money was just going out the door every single day. maxwell started to run it more like a business. he demanded accountability on the part of managers and changed some of fannie mae's policies and procedures soak, they would no longer commit to buying a loan at any interest rate from someone a year in advance and be stuck with that loan even when it turned out to be unprofitable. you could argue that maxwell put fannie mae on the course of being a bottom-line oriented company. like e

you say, to my read, some of your harshest critique for alan greenspan. >> what i was trying to do is show this mentality, this incredible contradiction in greenspan's personality, because he ideology -- he publicly advocated the ideology that government should be no part of wall street but he created the mechanism that allowed wall street to continually bail themselves out. there's a contradiction between no regulation on one hand, no government, and total welfare state on the other hand. and that's where we are right now. tavis: it's a great deconstruction of what happened when this crisis hit. the book is called "griftopia, bubble machines, vampire squid, and the long con gripping america." up next, jeffrey wright. tavis: jeffrey wright is a terrific actor which many of us know from his award-winning performance in "basquiat." his latest project of john guerre, "a free man of color." here, a sneak preview of "a free man of color." >> didn't you used to be a slave? >> don't be fresh, mama. even though born of a slave, i purchased my freedom and became my father's heir. >> my father'

alan greenspan the former chairman of the fed has said america's pursuing a policy of weakening its currencynd this is what the current treasury secretary tim geithner said in response to that. >> i have enormous respect for alan greenspan and had a privilege of working with him but that's not an accurate description of the federal reserve's policies or our policy. we will never seek to weaken our currency to grow an economy. it's not an effective strategy for any country, surely not the united states. >> how do you assess, first, what the qe2 is, quantitative easing and isn't that viewed as certainly overseas as an attempt to weaken the currency just as they're accusing china of doing. >> well, i would say manning currency is beyond my pay grade so i don't normally get into that one. >> it affects business. >> i was one of the guys -- i've been in favor of everything so when they were talking about stimulus, home modification, the federal reserve is doing what they needed to, i don't think the country realized how close we were to a depression and i've said to the senator several times i do

i think it's a very of a bet for the world economy even former us federal reserve chairman alan greenspan stepped into the fray saying that the u.s. should not devalue its currency the move has divided emerging markets brazil condemning russia welcoming a new wave of capital inflows russia could actually benefit from that i mean it's in a different situation to the other say so-called bric countries russia has not had a substantial amount of capital inflows in the last couple of years in fact quite the opposite flaws in the last two years of total almost two hundred billion so it actually could do it reversing some of that in taking some money back a proposal from the head of the world bank for a new reserve currency met with silence in contrast with a desire in two thousand and eight to create a new world financial order on trade the g twenty is also struggling to get the world's leading manufacturers not just to sell goods but to buy them as well along with china germany opposed the u.s. suggestion of targets for cutting exist trade imbalances one ray of hope however is that all leaders

we could cut consumption and there are people like al alan greenspan who say we can't use all of this oil from the arabs. >> it's fewer t bonds observed by the chieps. you can make up for the impact by getting greater fuel efficiency. the idea was to have this thing kick in once the economy rebounds. the debt commission is talking about two-thirds spending cut, one-third revenue. the only way to solve the problem, cut the debt and create jobs is if both political parties declare a truce. >> the reason why we're in the economy we're in right now is because businesses are fearing taxes. you do realize that the reason why we'v we've got 9.6% employmt two years after the collapse because businesses are hoarding crash. >> no, they're not. >> yes, they are. >> in general i think wayne is actually correct. you want to not tax production like income tax, you want to tax consumption. the problem is we've already got a 15% gallon o 15% 15% tax on a. follow europe's lead. they've sold of highways, airports, bridges. it provides a wind fall for the government and allows the producers and the owne

federal reserve alan greenspan has also weighed in against the policy of weakening the dollar and driving up exchange rates in the rest of the world. the u.s. central bank accounts that china is also pushing down the yuan to boost exports its currency walls could spark global trade protectionism and provoke a crisis much sharper than the one from which the world economy is only just recovery. time see how the markets are performing out here moscow bosses are mixed with the my sex slipping into the red this rank and rolls that are among the biggest losers helping lend support is new and cynical which is pretty no more than one percent of the us and european stocks are making modest gains of the last is the financial sector offsetting earnings announcements from the alliance of siemens and bt group in london bt shares where its report will be sent off to the telecoms from increased its full cost. to russia now and billionaire owner jerry pascoe's rossella a group of investors looking to buy out into ross's twenty five percent stake in the nickel this is according to the news agency also own

federal reserve alan greenspan has weighed in against the policy of weakening lives all that and driving up exchange rates in the rest of the world picks chief of u.s. central bank china is also pushing to boost exports these currency wars could spark global trade protectionism and provoke a crisis much. from which the world economy is recovering. time and see how the markets are performing in here and mixed with my sex looking into the red bank and was left among the biggest names in helping lend support. it's going to run percent of the. every new york stock market pulling with losses for the financial sector endings announcements from the likes of siemens and b. secret and london for three point one percent for the telecoms increased cost. to russia now billy military pascoe's roussel and a group of investors are looking to buy out into rolls twenty five percent stake in the us nickel this is according to realty news agency will sell which also owns a twenty five percent stake in the nickel producer is currently in talks with investors to set up a pool in the bid in october into ross

and it was alan greenspan who became a big foe of the gses who referred to that as the big fat gap. >> so what did david -- is he still alive? >> yes. >> have you -- did he talk to you on the record? >> he did, yes. >> and what did you -- what did he do over those ten years that was -- specifically that saved fannie? >> well he took a company that in fact -- that was -- the washington post had an article that said it was heading toward the biggest disaster in modern financial history you know going broke at a phenomenal rate. it was run kind of like a government enterprise without a lot of focus on its -- on its -- on its bottom line at all. and it, like many of the s&ls, had bought mortgages and at a time of rising interest rates and so was stuck with fixed- rate mortgages paying one thing while it's cost of funding was going through the roof and so money was just going out the door every single day. and maxwell started to run it more like a business, demanded accountability on the part of -- on the part of managers, changed some of fannie's policies and procedures so that they no lo