watching the economy implode when it does op no one did it better perhaps for longer either than alan greenspan during his tenure as chairman of the fed from one thousand nine hundred seven to two thousand and six so much that he earned the nickname alan bubbles greenspan there's a headline from the new york times about mr bubbles from two thousand and five one reason well he cut interest rates to one percent in two thousand and three and two thousand and four many credited his easy money policies for creating the housing bubble and he's also credited by critics with contributing to prime crisis and the bus that it was look at this tour reportedly packed house in a speech back in two thousand and four when interest rates were still super low he said adjustable rate mortgages might be a better deal for homeowners let's pull out some quotes he said that americans preference for long term fixed rate mortgages means many are paying more than necessary for their homes he said also to if we could pull out the next line of that. despite rising debt levels of bankruptcy filings it appeared american hou

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 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

and-- >> no, he probably said, i don't think alan greenspan is solely responsible, but there was fannyreddy and risk taking-- >> and what i want to race with you though is this. if the genie is out of the bottle and more companies saying, i don't know what you're saying, ben, but we see inflation and i'm sure we're going to get others, no other reason to blame lousy earnings on that. then, he's going to be in a corner, right? >> well, sure, but i think that charlie is starting to get at it-- >> which charlie, gasperino or payne. >> you're the only one that calls charles payne charlie. i would never call him charlie. >> neil: he prefers mr. payne, but-- that's what i would call him, yes, absolutely. but, low interest rates are part of it. and the other thing is where we are not seeing inflation is in wages. remember, we still have high unemployment. employers are not having to raise wages for their employees, right now. and by the way, this is not remotely a political issue or an ideological issue and there's no conspiracy here and that's what i think charlie gasperino had right. bernan

not just american presidents adam smith who you know alan greenspan practically went to worship at his grave. you know and say you know this is the champion of free markets he saw what happened with the british east india company and he said this is not capitalism capitalism is small companies. with real opportunity competing in an open market and he especially wrote about the theory of moral sentiments right up and that was his so there is an arc that arguably you can draw from from marbury vs madison or the supreme court first took on the power to declare was unconstitutional which is not given a constitution through dartmouth true through the first dash or so the pacific railroad for santa clara county. and then into. verses for laid away and and first national bank versus palladio all the way to citizens united none of these decisions and grover cleveland eight hundred eighty eight and state of the union are a said corporations have become the masters of the people the iron heel is on the throat of the people throughout this entire arc there has never been a legislature that has vo

serve as a model for other nations seeking to punish their leaders are listening to idiots like alan greenspan of banks stars like hank paulson. put a picture of the need when i was like nine years old and she told the truth. i mean i am going to get it and i was having. that interesting. he was kind of a guest today. i'm very proud of the role that al-jazeera has played. good. luck. you know sometimes you see a story and it seems so for lengthly is think you understand it and then he lives something else and you hear sees some other part of it and realize that everything is all you know not i'm charming welcome to the big picture. for.

serve as a model for other nations seeking to punish their leaders are listening to idiots like alan greenspan and bank stars like hank paulson. has put a picture of the need when i was like nine years old and she told the truth. i mean i am an. avid hockey is take an interest. she was kind of a yesterday. i'm very proud of the without you she has placed. her body. you know sometimes you see a story and it seems so for like you think you understand it and then a glimpse something else and you hear sees some other part of it and realize that everything is or you don't know what i'm charged welcome to the big picture. for.

bank may end up taking over much of the allocation of capital so here you have iran's disciple alan greenspan with the help of ronald reagan who deregulated the markets in the name of iran and in order to end communism and what if we had fear communism by financier by the way famously did take medicare and social security in her later years which is a total hypocrite and her philosophy doesn't make any different than sense but what you're saying here is that what these bankers are telling you is that life in two thousand and eight is. they want to they can push the button and markets stop working completely because there is no price discovery there is no free market capitalism is just asked of allocated by the central banks that are using that privilege to write laws to make it easier for them to become richer and to destroy the economy and that people on the street who they will characterize as terrorists if anyone objects to the mac the fact that their wealth is being stolen but by pushbutton autocracy this is an evolution an autocracy you just simply push a button and credit freezes pannik

of the same thing about what's his name alan greenspan yeah well another misguided journalist writing about the maestro unfortunately there are just going to suffer when you win over the world problems up to realize what's going on well and then the idea for a headline that some people had was zero and said they care what kind of thing you think ok let's switch gears and that by hammering mr bernanke i want to talk about m.f. global because mr rogers you said very early on that m.f. global broke the sacrosanct rules and the commodities market taking money out of segregated accounts mr rogers it has been five months since m.f. global declared bankruptcy customers are still missing their money. is still blocking free there have not done a lot of consequences i'm curious where is this leading are we going to see next that you know chase customers wake up one morning and see that there is money taken from their accounts from j.p. morgan is that the message this is sending well it might where we'll have a better way but this is sending a terrible message to the world you're never supposed

thousand nine hundred eight a west wrote us about yesterday's capital account we did a segment on alan greenspan we talked about his and rand influence and this viewer said another great show the guess is entirely wrong about greenspan being around acolyte he was a free market capitalist and gold standard proponent many moons ago but he completely sold out as fed chair and you know we actually we made that point we question our guest about that we agree with your assessment of the rand greenspan situation but since we're on it we thought we'd leave you with this very bizarre anecdote about greenspan's old days when he was reportedly close with an rand and she basically went off the rails over a married man named brandon whom she had an affair with and excommunicated him from the group no matter how you view writes about this in his book griftopia and says this wouldn't be worth mentioning but for the hilarious fact that greenspan signed that excommunication degree to me which read because nathaniel branden and barbara branden in a series of actions have betrayed fundamental principles of objecti

. >> we're joined by jim cramer and former chairman of the federal reserve alan greenspan. >>> sevenears ago, i looked around at this business and realized something profound, nobody was speaking directly to you. and nobody else but you. yeah, you. part-time individual investor, home gamer didn't have anywhere to turn to for advice about the stocks except for your broker or financial adviser. but at the end of the day, their motives can be mixed. and why i think most professionals do a darn good job they do have to serve multiple masters. i decided to create a show where you, the viewer, the client would always come first. fortunately and luckily i'm independent enough in real life to make it so you can be my sole master. here we are on "mad money's" seventh anniversary, a show where i'm part of the team run by our fabulous executive producer regina gilgan. and you need to see who makes me look good every single night. this is a rare look inside what i call the sanctity of the control room. okay. from the very beginning, we've had a simple mantra around here. if you want to stay in t

. >> we're joined by jim cramer and former chairman of the federal reserve alan greenspan. [ artis brown ] america is facing some tough challenges right now. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. >>> seven years ago, i looked around at this business and realized something profound, nobody was speaking directly to you. and nobody else but you. yeah, you. part-time individual investor, home gamer didn't have anywhere to turn to for advice about the stocks except for your broker or financial adviser. but at the end of the day, their motives can be mixed. and why i think most professionals do a darn good job they do have to serve multiple masters. i decided to create a show where

. >> we're joined by jim cramer and former chairman of the federal reserve alan greenspan. >>> seven years ago, i looked i'm here to unleash c'mmy inner cowboy. instead i got heartburn. [ horse neighs ] hold up partner. prilosec isn't for fast relief. try alka-seltzer. it kills heartburn fast. yeehaw! without the stuff that we make here, you wouldn't be able to walk in your house and flip on your lights. [ brad ] at ge we build turbines that power the world. they go into power plants which take some form of energy, harness it, and turn it into more efficient electricity. [ ron ] when i was a kid i wanted to work with my hands, that was my thing. i really enjoy building turbines. it's nice to know that what you're building is gonna do something for the world. when people think of ge, they typically don't think about beer. a lot of people may not realize that the power needed to keep their budweiser cold and even to make their beer comes from turbines made right here. wait, so you guys make the beer? no, we make the power that makes the beer. so without you there'd be no bud? that's ri

alan greenspan is 86. marion barry is 76.reme singer mary wilson is 68. >> actor rob reiner is 65. tom arnold is 53. she was on spin city and friday night lights connie briton is 45 and recently retired shaquille o'neill hits the big 4-0 today. if it's your birthday, happy birthday. we'll be right back. >>> good morning. welcome back to 9news now. it's 5:46. we always have weather first and that means howard bernstein is with us. >> temperatures down in the 20s in many areas. >> i brought the jacket but not the gloves or the ear muffs. >> this could be the last morning i wear earmuffs maybe for a long time. i may be putting them away for the season. let's face it, winter's dead after yesterday. s that was its last gasp. looks like a nice warm-up headed our way. >> we're in trouble now when you proclaim it dead. >> have some faith. let's get to the bus stop forecast. got to get away from these two. with temperatures in the 20s, i can do my thing, down in the 20s and low 30s under clear skies. thankfully winds aren't too bad. w

you know, the job of a central banker as alan greenspan told us here at pimco several months ago is to be seen as constantly in motion during periods of financial stress, which is what we have now. there were periods following qe1 and qe2 and ben bernanke applied the brakes. he doesn't want to make that same mistake again and morph the u.s. economy into one resembling the lost decade in japan. you know, since there's no fed meeting in may and twist expires at the end of june, i think the april meeting, which is obviously next month, is a lock call time for pretty strong hints. >> looking at some of these higher yielding picks you increased your securities from 38% to 52% in february. is that a bet on improving housing market or more quantitative easing. and on the equities, the high-yielding equities, let me ask you, do you worry that the performance won't be there? at the end of 2011 everybody was talking about dividend payers they didn't hold up theechb you were getting that steady income? >> first of all, in terms of the mortgage market, yes, it's the best to some extent on qe3, but

. >> well, don't forget that the alan greenspan. so even if the premise of my question is wrong, we'll just continue. >> bernanke is the first one to hold press conferences, to sit down for cover stories, to give lectures like he has starting this week at colleges to kind of fend off the right. >> all i know is never let a faulty premise stop a good story. i think what's interesting is in the past when you've seen the public get on the central bankers, if you go back to the william jennings brian era, there wasn't a fed then, but there was monetary policy. if you go back to the '70s, the feds were saying, we want more money, higher farm goods, et cetera, they were angry when the tea party segment of the public, becae you're killing our legacy and so on and the public has been trying for tight money. you would think the public would be happy he was getting us out of a near depression/recession. this is a very curious period. i think no matter which way, though, the pressure is coming from, he's got to sort of insulate himself and go

alan greenspan right before the monumental doubling! so is all of this bubble speak, is it merited?r has skepticism become so thick as to be, well, too thick? can we be so skeptical we descend into being cynical, or corrosive, 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 a harbinger of 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 that could see the market lower 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 must 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, we traded above 13,000, the excitement, it

now, paul volcker left the chairmanship in 1987 and he was replaced by alan greenspan who, almost 19 years from 1987. as the quote suggests, one of the important accomplishments of greenspan through most of his tenure was achieving greater economic stability. as he says, greater economic stability has been key to of living in the united states. improvement in the stability of the economy that the period has been -- come to be known as the great moderation. as opposed to the great stag nation of -- stagflation or inflation. this was a striking phenomenon, the great moderation. the first picture here shows you the variability of real g.d.p. growth. so the graph covers the period from 1950 all the way up essentially to the present. the line just shows you quarterly growth rates in g.d.p. so a sharp line, a sharp peak shows an increase in g.d.p. growth, a negative decline shows a fall in g.d.p. growth. these are quarterly numbers so you can see the bounciness, periods of growth followed by periods of slower growth. the yellow bar is a one standard deviation band, a measure of the average

>> alan greenspan said, it's not a national market. there's all different areas.line prices go up, the suburbs will look less attractive, right? center city will look more attractive. and that's more naturally a rental market. so rental apartments might take precedence. are we building more of them. it's already starting to happen. >> robert shiller, thank you so much for joining us today. always appreciated. in the meantime, today -- >> want to bring your attention to deckers, hitting november 2010 lows. this is a classic example of momentum in reverse. one of my pals points out that this stock, people loved it. 40% higher. >> on a sunny, shiny day here in the northeast, beautiful day out there. today's sunshine stock is cabo ceramics. it's a houston, texas, energy company that makes products of fracing for natural gas and oil in the u.s. they also have technologies that prevent oil spills, and also help to contain them. shares are up, oh, goodness, about 6% so far today. for the year, though, the stock is down significantly. >> i almost did it as a disaster du j

it was engineered with the help of federal reserve chairman alan greenspan and top economic advisors at the treasury, larry summers and robert rubin. >> the american people either didn't agree or didn't understand what in the world i'm up to in mexico. >> i think it started with the bailout of the banks in 1994 during the mexican peso crisis. >> reporter: for investors it was a sight for sore eyes. mexico's stock market actually soaring instead of plummeting for the first time in weeks. all this, an immediate reaction to news of a major international aid package -- nearly half of it from washington. >> that was allegedly designed to help mexico. it was $20 billion with no approval from congress that was used, i think inappropriately out of a treasury fund. and why were we doing this? it's because the big banks were too exposed to some bad loans that they had written in mexico and elsewhere. >> wall street banks. u.s. banks. >> wall street banks. wall street banks. the banks of the day, citibank, bankers trust, the others that existed at that time. and so the idea got started that was

he also was an advisor to alan greenspan. before taking office as a member of the board of governors, he was an advisor to the board of monetary policy, director of the division of monetary affairs, and the deputy staff director for monetary and financial policy. he has written extensively on issues related to monetary policy and its implementation by the federal reserve. >> thank you, kevin. thank you, both kevins. thank you for the opportunity to read your proposed legislation and for the opportunity to comment on it. this is a very welcome effort. in my opinion, and this is a constructive way to respond to concerns about past and potentially future performance of the federal reserve. open up the debate. open up the debate on objectives. the optimal central banking is thought of as the elected representatives giving the central bank the objectives and the central bank having to assert independence to move instruments around to achieve those objectives, and then be held accountable for them. i want to concentrate on the mone

there was theory alan greenspan was seen leaving his house with a stuffed briefcase.s going to change rates that day and traders should get red xwrip you should know as long as the fed posts things like charts showing that -- showing their bond yields, i will be a fan of the twitter feed. finally, you should know when greg smeth said that goldman employees routinely call their clients muppets. goldman sachs actually has represented muppets as in the muppets. >> you are looking a little sheepsih. >> in 2003 the family of jim henson, creator of the muppets, who died in 1990, bought their father's company back from a german based company that acquired it. the financial adviser for that deal one goldman sachs and company. my guests are going to come back ask tell us what they think we should know this week right after this. this one's for all us lawnsmiths. grass gurus. doers. here's to more saturdays in the sun. and budgets better spent. here's to turning rookies - into experts, and shoppers into savers. here's to picking up. trading up. mixing it up. to well-earned mudd

he advised ben bernanke in the 2008-2009 financial crisis and served as a key advisor to alan greenspanhe was a 40-year member of the federal reserve. before this he was an advisor to the board, secretary of the federal open market committee, director of the division of monetary affairs and deputy staff director for monetary and staff policy and a few more junior positions. he's also written extensively on monetary policy and implementation by the federal reserve. >> thank you, kevin. thanks to poth kevins, actually. thank you congressman brady for the opportunity to read your proposed legislation and for the opportunity to comment on it. this is a very welcome effort. in my opinion this is a constructive way to respond to concerns about past and potentially future performance of the federal reserve. open up the debate on objectives. the optimal central banking is often thought of as the elected representatives giving the central bank the objectives and the central bank having the independence to move their instruments around to achieve those objectives and then be held accountable for

. >> jim cramer and former chairman of the federal reserve alan greenspan. >> let me guess, i will getown show. >> in honor of this one, rick santelli is on set. present over here. >> good to see you. >> take a look at this. don't let it fall. only rick santelli can deliver a cake in style. "mad money" baker's union. >> you're a gem. thank you so much. >> happy anniversary, everybody. >> thank you to everybody at cnbc to give us the show, to nbc to give us a chance, to one of the greatest teams in the world that makes me look good every single day. >> jim cramer, ladies and gentlemen. >> seven years of television, quite something. >> we've got plates, we've got forks. i want the piece with your head on it. >> done your way, my friend. it's a humbling thing. love the show from the get-go. the network so supportive. no joke, i got to tell you, 100,000 people make this show look good, including the people who watch it every night. >> you're selling short the enthusiasm, energy and passion you bring to the show every day. you've got big plans for tonight. >> yeah. we are going to go over t

now, paul volcker left the chairmanship in 1987 and he was replaced by alan greenspan who, again, held the position for almost 19 years from 1987. as the quote suggests, one of the important accomplishments of greenspan through most of his tenure was achieving greater economic stability. as he says, greater economic stability has been key to impressive growth and standards of living in the united states. so in fact, there was so much improvement in the stability of the economy that the period has been -- come to be known as the great moderation. as opposed to the great stag nation of -- stagflation or inflation. this was a striking phenomenon, the great moderation. the first picture here shows you the variability of real g.d.p. growth. so the graph covers the period from 1950 all the way up essentially to the present. the line just shows you quarterly growth rates in g.d.p. so a sharp line, a sharp peak shows an increase in g.d.p. growth, a negative decline shows a fall in g.d.p. growth. these are quarterly numbers so you can see the bouncyness, periods of growth followed by periods of

that i am criticizing ben bernanke is rather than learning from the mistakes of his predecessor alan greenspan, he is just repeating them on a bigger scale. greenspans policies created for housing bubble. yes, fannie and freddie created entities were a part of the problem but take the fed out of the picture, those artificially low interest rates, the 1% that we had for years we never would of inflated this puzzle or have had teaser rates on adjustable rate mortgages all of this was the creation of the fed and the need these mistakes to try to artificially stimulate the economy from the recession and when the bubble burst in 2008 and we had that financial crisis which was clearly a creation of government what did ben bernanke do? did he learn from the 06? no. not only did he not raise interest rates come he brought that to zero. even people that didn't see the financial crisis coming and domestic. even some of those will say that a part of the problem was that the kept interest rates too low for too long. what is he doing, keeping them at zero even longer and they just announced these tests it

when alan greenspan retired, he said, i only gave congress what they wanted. wrong. it was a fiasco. you can't do it. thank you. host: the message of mr. bernanke for congress was? if the testimony was there a message? guest: in general, we need to be careful and cautious about this recovery, because of the number of issues hanging over it. the caller referenced chairman greenspan. and he felt as he left, and there was obviously a feeling when he left that the economy was in good shape in 2006 when the change of power came and chairman bernanke took over, and chairman bernanke is now seeing the severe credit decline we've experienced over the past six or seven years. and that is going to be hanging over us for a while. he pointed to two factors. one, the boom and bust in the housing market, and the other, the credit cycle as two factors that have been holding back this recovery, which means it's not like the recovery of the 1980's or early 1970's. and probably means that we're going to continue to see a relatively slow recovery. host: so here's the question. this is

then the question is when we create that climate which alan greenspan and others were a part of have you created a new set of interest that are going to turn out of that and a different way of asking peter schiffs question that are we in it in a system where we become addicted to a narcotic of cheap rates that is creating a different set of incentives and disincentives in the economy? >> having the interest rates are accepting come it's not a normal economic situation in the difficulty and extreme shock to the economy which comes along fortunately pretty rarely. .. .. and in a sense it was successful. mexico had a good recovery but there is a lot of criticism in the amount of money involved and why do we have to get so deeply involved. as i observed it, the first section of the united states government was to stay away. we don't want to get involved in every crisis every place in the world, so it's a small country and that's alright and we don't need to jump in. indonesia is a much bigger country. imf got involved and we didn't like the japanese getting involved. then it got pretty b

so long was the global imbalance and recirculation of china's foreign-exchange that created be alan greenspanundrum. it was a complete fallacy -- economics tells us you go through business cycles. at some point, a shock will hate you and it will cause an unwinding of balances. as we had lower and stable inflation rates, there was a greater willingness to extend credit and there was a push for a low yield environment that many people going up the risk curve. ultimately what was happening was as imbalances built up, the fed lowered interest rates which increased the credit bubble. we have a credible but it wasn't just a credible for the united states. >> you have much, much stronger regulations. >> when the housing bubble in the u.s. collapsed, and was the unwinding of accesses and one of the core reasons the canadian financial system weathered the storm so well was that the number of regulators is much smaller and can coordinate with each other. there are only five institutions overseeing the system. you could get people in the room and say what do we do and how do we deal with the problem? ca