liquidity that is happening in greece so perhaps this is what they were just listening to sir alan greenspan but i grant spence said that the inherent conflict of interest between the broker dealer a special system on the floor of the exchange which encourage insider trading was needed to facilitate liquidity or market making and so he turned and i way from obvious front running and stealing on the exchange but now that little piece wiggle warm a fraud has become the de facto operating system of the entire u.s. and u.k. economy it's all run on front running and fraud and the defenses always were market making what's what blankfein famously has claimed many times over again and what the all the bankers claim is that we're not stealing we're making a market it's not fraud it's f r. you d. it's trending on the nasdaq and we're making a market in it and you can buy into it as well why are you looking at us as if we're committing some cover so don't you get it you can become a fraudsters well. well we're going to come back to greece in a moment but i want to go back to london first so we're talki

among those friends, the laissez-faire, libertarian chairman of the federal reserve, alan greenspan, the right-wing republican senator from texas, phil gramm, who once called wall street "a holy place," and later would become a high priest at the global banking giant, ubs, and the democratic secretary of the treasury, robert rubin, former co-chair of goldman sachs and tireless advocate of taking down glass-steagall. in the weeks before its repeal rubin left government to join, are you ready for this, citigroup's board, the very financial giant made possible by glass-steagall's elimination. and so it was -- the fix was in, the path was cleared all the way to the top. >> sandy called his friend the president last night and invited me to join in on the conversation and we had a good talk. so the president was in fact told last evening about what was going to happen. >> you got that, i'm sure. wall street was telling the president of the united states what was going to happen. within two years, glass-steagall was deader than a doornail. with the stroke of a pen, president, bill clinton,

some of you heard me, used to be the vice chair of the federal reserve when alan greenspan was chairman. he came before the finance committee on deficit reduction. he talked about health care. reducing costs of health care. we are doomed. everything else is window dressing. i said to him in a question and answer. what is the recommendation on health care? how do we save money here? he said i'm not an expert. he said this is what i do. i find out what works and do more of that. that's what he said. i find out what works and do more of that. you mean find out what doesn't work and do less of that? he said yes, that's right. we have seen this movie a couple of years ago. we saw it with the auto industry. what the auto industry has done is right size the enterprise. they had more employees and plants. with the market share that they held. they went from 1970 market share to 2009 from 85% to 45%. they wreren't making cars that people wanted to buy. that has changed. an industry in this country that a lot of people thought was dying has come back. a lot of people think the post office is a re

what thirty six percent of a condom is believe you can predict outcomes and it is the maestro alan greenspan i think that helped brainwash the economy into believing that you can create outcomes with this magical wand and magical thinking but that's exactly what stephen king says indeed bunking economics is that the number one chief. is ill conceived notion of economists is that you can predict economic outcomes or market outcomes and it's hard coded into the basic textbooks of economics that somehow economics is a science like chemistry where the outcome can be predicted that's false economics is like a social science where the outcome is completely unpredictable and the second you understand that the second you understand why ben bernanke and his crew are complete charlatans by putting forward some other theory it's simply not true look at the track record over the past ten fifteen fifty one hundred years based on the central banking theory it's been a catastrophe so as ever thanks so much for being on the kaiser report thank you matt. and albeit while our shirts match. it's a magical the

more frequently on this show why don't i play you a little but how about fed reserve chairman alan greenspan former one talking about why the us is credit rating doesn't matter. i was because we can always print more money to do that so. i love his face but let's stick on this ok let's let's listen to new york times columnist and nobel prize winning economist paul krugman talking about why the u.s. government should spend spend spend its way out of the doldrums as he explains it and is asked by for reid's a korea they're going to borrow more spend more but that is what the economy needs right now not worries about the deficit and i think in a way we may. we may be approaching a somewhat advantages position for that so the mainstream the establishment get involved in the economy spend spend spend print print print and kirkman wrote his last column not last one but in a column last month that the fed shouldn't start raising interest rates any time soon you know they're near zero have been and are expected to continue to be so washington consensus again do something intervene whether it's in a

average working people the banks were basically borrowing money very very cheaply and in fact under alan greenspan they could get money basically almost at that at zero cost and when you can get money that capably well what how do you make money will you make money by pushing the money out in terms of loans and so the banks were basically providing loans to anybody who could stand up straight they were doing it but many of these loans or these mortgage loans were you know had balloon clauses at the end people didn't even know what they were getting now you might say people should have been away or but i don't know about you i have i've bought houses before it's not easy to go through line by line annoyed exactly what you're doing you have to trust that somebody knows what they're doing and trusts basically was not called for because the banks were trying desperately to move the money to create loans to create this entire subprime loan market that padded the pockets of a very a lot of very very wealthy investment bankers and traders and and others but ended you know who ended up holding the bag and

alan greenspan called him a republican alice rivlin and he behaved that way. he came and and reinforced the things that she had said and once that happened and the next director followed him and did pretty much the same things, they were often running in the sense that once you create a culture you sustain it over 10 or 15 years, it is pretty well ingrained. >> has the cbo been used as a political football in the past? >> absolutely. the one nothing you can say about organizations that produce information, they cannot use that information. whoever it is might be a supporter or opponents of a particular policy can clearly use a cbo cost estimate to have a bad policy or good policy, the clinton health care reform. in 1993 or 1990 for the cbo came up with a network that the clinton health care reform, saving money which the clinton administration could cost money. that someone could look at, a good reform or a bad reform but people who posted reform grab that particular conclusion and tried to use it to their best end which was to try to see if they could kill th

alan greenspan right before the monumental doubling! so is all of this bubble speak, is it warranted? or has skepticism become so thick as to be, well, too thick? can beso skeptical we descend into being cynical, or perhaps irrationally negative. i don't like the market today. i didn't like the way it acted, didn't like the plunge in gold. that's been european weakness, i didn't like the decline in europe. i don't like the transports going down seemingly bad today. . i do see lots of problems short-term. including an israel/iran missile crisis that could end worse than our own cuban missile crisis. still, i come back to thinking we have become irrationally unexuberant. i've got to do more than that. i've got to show you the differences between now and last time we were at these levels and we should've had the wand out last time. so you understand why this generation's current bubble heads are full of hot air. all right. first let's tackle the dow. all right? let's deal with it. in 2008,]v"c we traded above 13, the excitement, it was pal

as a matter of fact, i have asked both alan greenspan and ben bernanke in committee about this, about the morality of an economic summit, and they said -- and the economics of it, and they said they have to keep interest rates low and do this to look at the big picture, and some peoplethat is not very nic. guess who suffered? there are people living on social security. and their cost of living is going up a lot more than 2%, so he said that is a consequence it could be six or seven or eight%. the other thing when the fed gets involved, people do things they should not be doing. they invest because they think there is going to be a lot of savings. they may build too many casinos in las vegas and all the different things, so this is the mischief of the federal reserve, and eventually, it will be dealt with. when they finally destroy the currency they have to go back to somebody people know about and they trust. they have run away inflation, but only gold and silver can be legal tender. they also said you could not emit hills of credit, which is paper money, and they also said we give yo

alan greenspan. >> he was a terrible net negative. you might agree with her on that.iday of the month t is the third friday following the conclusion of the reference week when it conducts the surveys. the reference week must include the 12th of each month that usually means it's the first friday but doesn't always. so it's not the first friday. has nothing to do with that, the third friday after the reference day. >> reporter: >> there's some weeds for you. >> there's going to be a test and next march, a year from now when will it be, rick, can you come up with that? >> reporter: all's i know is that i believe we're going to have good friday keep people on the floor and probably have early closes, so whatever the rule is, obviously it doesn't have an asterisk for major religious holidays. >> i heard something correctly from rick and mohammad, you said if the fed raises rates people are going to flee the equities market and rick you said if they raise rates -- >> reporter: not the fed. the fed can only control it a certain point. believe me when rates are destined to g

alan greenspan, the chairman of the federal reserve, kept interest rates low. he did this because he saw no wage pressure. wage pressure would have prevented the bubble from occurring in housing. however, what was not discussed was the fact that we had millions of undocumented workers coming across the border for work in this country. at low wages. the cows are out of the barn. nothing can be done about that. we will get our way out of this mess slowly. we have to have a comprehensive immigration process to defend bubbles like this in the future. host: talk about his concerns about people coming across the border illegally to take u.s. jobs. guest: if somebody is doing something illegal lay, i am not a lawyer and not making a judgment on the legal side. in terms of the economics and the effect that will have on jobs in the united states and the unemployment rate in the united states, it depends on whether legal american workers would be willing to take those jobs that the legal immigrants are taking. if they are doing work that other americans would not prefer

however, alan greenspan kept interest rates below because he saw no wage pressure.e pressures would have prevented the bubble from occurring in housing. what was not discussed is the millions of undocumented workers coming across the border for work in this country of low wages. the cows are out of the barn. we will dig out of the mess slowly. we have to have a comprehensive immigration policy that is effective to prevent bubbles like this in the future. host: talk about his concerns about people coming in across the border illegally to take jobs. guest: i am not a lawyer or making judgments on the legal side. in terms of the economics, the effect that will have on jobs and the unemployment rate, that very much depends on whether legal american workers would be willing to take those jobs that illegal immigrants are taking. if they are doing work that other americans would not take, it is not going to have a big impact on job creation. if they were doing jobs americans would be willing to take, it would have a bigger impact on the labour market and unemployment. host

report from "nbc nightly news" in 2004 on code red warning from then federal reserve chairman alan greenspannistration's projected $521 billion deficit for this year now threatens to short change social security. this is the baby boomer generation. >> the change is certain to place enormous demands on the nation's resources. demands we almost sure will be unable to meet unless action is taken. >> that was a big number. 521, if only, what a difference eight years make, two wars, one recession adding to it. earlier this month president obama's budget prediction predicted a $1.3 trillion for the ongoing fiscal year. the deficit would drop to $101 billion under the tax and spending policies. >> the academy award shows this weekend along with new movies in the theaters. here's a look at the film starring jennifer aniston and paul rudd. >> why are you not at work, george? >> i got fired. >> as soon as we can get back on our feet we'll come back to new york and right now my brother offered us a job and atlanta is the best place to be. >> that was "wanderlust." joining us now is amy palmer. good day

allows us to reinvest and i was at a breakfast where i was listening to alan greenspan the other morning and he said i've analyzed the investment in this country and our companies are doing everything except making long-term investments with fundamental innovation. and that is the chilling effect of not knowing what the playing field is going to look like taxwise, regulatory. you have to fight, what battle are we going to fight if we announce some big investment? and it's, but it's, therein is where the jobs are. therein where the success for the company is. that is the thing for success. we have a lot of ideas. >> can i deviate from that slightly? >> sure. >> teach us about operating in a different country where the playing feegd is -- field is, level is -- you can identify it. >> jeff gave the best speech on that one. >> you feel like you know what the future is. you can invest in more long-term way. the regulatory environment is more welcoming and allows you to do things in a way you like to do it in a little more -- >> david, look at a place like germany. has got well-established inv

however, alan greenspan kept interest rates below because he saw no wage pressure. wage pressures would have prevented the bubble from occurring in housing. what was not discussed is the millions of undocumented workers coming across the border for work in this country of low wages. the cows are out of the barn. we will dig out of the mess slowly. we have to have a comprehensive immigration policy that is effective to prevent bubbles like this in the future. host: talk about his concerns about people coming in across the border illegally to take jobs. guest: i am not a lawyer or making judgments on the legal side. in terms of the economics, the effect that will have on jobs and the unemployment rate, that very much depends on whether legal american workers would be willing to take those jobs that illegal immigrants are taking. if they are doing work that other americans would not take, it is not going to have a big impact on job creation. if they were doing jobs americans would be willing to take, it would have a bigger impact on the labour market and unemployment.

remember, alan greenspan thought market forces would keep from what happened with the financial institutions of the iceberg. who is to say this greece situation is resolved but it's not the only country that's got problems in europe. and ultimately we're going to have problems. >> michelle how do you not mention something you've been harping on for a while. if this greek restructuring is voluntary, then what good are any of the credit default swaps out there protecting you on your -- >> i don't bother to go into that. i discounted in the future already which is it will not be voluntary and it will not matter. all this b.s. we hear constantly about whether or not it's going to -- the math does not work. we cannot grow our way out of our medicare spending and we cannot, you cannot make the greek situation work without forcing it on all the bond holde holders. it will not be voluntary. that was my prediction in january and it's not going to happen. >> right now it's not greece. it's some other knucklehead in the eurozone suggesting that a frenchman or a belgian or a german parachute into athens

the point you were making is a really important one and it goes back to some of the analysis alan greenspanmany, many years ago. he looks at statistical indices of fixed capital formation on u.s. financials, in u.s. nonfinancials and sees little lift in that. i think that's the key that what you do is at times like this when boards are frightened of making decisions, the average life of a ceo is four, four and a half years. chief marketing officer rolls over every two years. on average. in those situations you invest in the brand to maintain share or or increase share. they don't come to us, we go to them. >> i have to send it back to pebble beach but one last question, would you buy the facebook ipo. >> god you always put me on the stock. depends on the pricing. for my grandkids i would buy it. >> thanks very much. back to you, becky. >> andrew, thank you very much. sir martin great to see you. >> good to see you. aren't you lucky to be up at 3:00 in the morning. >> we are. >>> when we come back more of "squawk box" from coast to coast and later he joined us last year on this very set, and

as a matter of fact, i have asked both alan greenspan and ben bernanke in committee about this, about the morality of an economic summit, and they said they have to keep interest rates low and do this to look at the big picture, and some people are just going to suffer, and now, that is not very nice. because-who suffers? the very people who might want to save money, people who live on social security, it is going up a lot more than 2%. if you have a free market, do you know what people could make on their cd's? 6 per 7 or 8% because that is where the market could go. they invest because they think there has been a lot of savings. they might build too many houses, and all of the different things, so this is the mischief of the federal reserve. eventually, it will be dealt with. this is not new. destruction is around. when they destroy the currency, they always have to go back to something people have known about, just as the founders know. they put in a bid to put it in the constitution. they also said they could not emit bills of credit, which was money, and they also said, we give y

and i was at a breakfast where i was listening to alan greenspan the other morning, and he said i'velyzed the investment in this country, and our companies are doing everything except making long-term investments with fundamental innovation. >> right. >> and that's the chilling effect of not knowing what the playing field's going to look like tax wise, regulatory. you've got to fight, you know, what battle are we going to fight if we announce some big investment. but it's, therein is where the jobs are. therein is where the success for the company is. and that's the, that's the thing we're trying to get. we've got a lot of ideas, we just need to -- >> can i deviate from that slightly, but related -- >> sure. >> -- for you guys which is give us an example. teach us about operating in a different country where the playing field is a level -- the wrong word, but you can identify it. >> jeff gave the best speech on that one. >> yeah. where you feel like you know what the future is, you can invest in a more long-term way, the regulatory environment is more welcoming, and it allows you to

allows us to reinvest and i was at a breakfast where i was listening to alan greenspan the other morning and he said i've analyzed the investment in this country and our companies are doing everything except making long-term investments with fundamental innovation. and that is the chilling effect of not knowing what the playing field is going to look like taxwise, regulatory. you have to fight, what battle are we going to fight if we announce some big investment? and it's, but it's, therein is where the jobs are. therein where the success for the company is. that is the thing for success. we have a lot of ideas. >> can i deviate from that slightly? >> sure. >> teach us about operating in a different country where the playing feegd is -- field is, level is -- you can identify it. >> jeff gave the best speech on that one. >> you feel like you know what the future is. you can invest in more long-term way. the regulatory environment is more welcoming and allows you to do things in a way you like to do it in a little more -- >> david, look at a place like germany. has got well-established inv

never mind that federal chairman alan greenspan has since testified that this was wrong. that his unconstrained free market winner take all theory had never worked in his 80-plus year life span. never mind in the 1970's we used to spend 5% of our national income on discretionary domestic spending like education, job training, health, research, veterans, and infrastructure and more recently we have already peared that back to 2.5%. with this bill the majority tries to balance the budget on the packs of workers, middle class families, and small businesses and society's most challenged. they refuse to consider a fair distribution of our tax obligations. they even refused to close special interest tax loopholes. the bill if not amended chooses to shield an extraordinarily well off from any fair share of taxes over sustaining pell grants. student assistance promising opportunity to families. they choose allowing hedge fund managers the benefit of a especially low tax rates over meals on wheels for seniors. and they choose special tax credits for the mature, extremely profitabl