under estimate the risk because they thought that alan greenspan or ben bernanke he would step in and save everybody well of that plus the bonds that arrived upon the shores of europe had a aaa rating thanks to fish and moody's and s. and p. so yes they had a false sense of security now the banks are underwater then greece goes underwater now italy is underwater spain's underwater because they were sold bonds that had a aaa rated guarantee from the u.s. but it turns out that these bonds are not worth one hundred cents of the dollar they're not even worth zero cents on the dollar well in fact why they sell how they sell treasury bonds is sounds like how they sold this gold to the people in poland we are dealing with the loss of confidence in the entire financial system and an urgent need for safe investments the environment for gold is perfect and you hear this about u.s. treasury bonds. treasury bonds are sold by hucksters they are guaranteed confiscation of wealth as a guaranteed zero return guaranteed loss if you're buying a twenty year bond with zero percent near zero percent coupo

and for those who don't know, alan greenspan was head of the federal reserve board. collapse, and all leading up to it, he said we don't need to regulate. we don't need to regulate the market. and it turns out he was wrong. after the collapse he said, i was wrong. it turns out we need to regulate the market. who said not to regulate the market, ayn rand. the fact that they looked up to her is amazing. talk to me more about her philosophies. how extreme is it? do the clips do her justice? >> if anything, the clips under state her philosophy. you could spend an hour just going through the various things that she said over the years. one of the things that she said for instance, one of the concepts she opposed was democracy. she said about democracy, i want to read her exact words. she said democracy is a form of collectivism that denies individual rights. she said democracy is a totalitarian manifestation, it is not a form of freedom. she was anti-democratic in addition to being atheistic and anti-everything about this country going back to the found founders. >> cenk:

but obviously they did not survive alan greenspan's world that he wrought the the tenth circle or their eleventh circle of hell that is our financial system on earth now speaking of those who have not survived alan greenspan and the world of zero rates in bailing out bankers that he has rocked the economy still my retirement apparently the weak economy has been tough for small business owners across the board in america but for entrepreneurs in their sixty's and seventy's the consequences have been particularly vexing they all find themselves max in business purgatory they say and again this is like those you know safe government bonds that money to passkey invested in here that all the baby boomers in america read the same exact bet of selling their house and then selling their small business to fund their retirement but all they have left behind them are these bankrupt generation x. ers and why yours who can't afford any of these they have so much student debt that they can't afford to even buy any of these homes or businesses right what the expectation that interest on their retireme

alan greenspan was the bartender. he liquored everybody up. [laughter] and, of course, people act stupid when they were drunk. you should have seen some of the people were acting last night over at tao. [laughter] >> so let me ask you this question, my final question -- >> i wasn't at tao last night. [laughter] >> well, you missed out on a pretty good party. la. [laughter] >> the essence of my defense of -- >> at least the hangovers you get from that alcohol wear off. >> so this is the question. at least when wall street makes bad decisions, the people who lose money, right, are the investors and the people on wall street themselves. and isn't that the way it should be? >> well, that's the way it should be but, unfortunately, that's not the way it is. >> so this is the point i'm getting at. we've created this kind of protective bubble over wall street and over the big banks with too big to fail and all of these bailouts, right? and so now we have a system that wall street has almost incentivized to take the big risks because of fannie mae and

this was a time when alan greenspan is pushing interest rates to super low levels and then telling peoplethe fundamentals of the housing market are sound. should take out adjustable-rate mortgages. everything's going to be fine. london standards are robust. absolutely went right over there heads. whereas meanwhile the free market, which is blamed for the financial crisis. the free market was trying to say to people, stop doing this. don't buy five houses of investments and you have no jobs -- the free economy was trying to put a red lights on this in 2001. stop, stop, stop. all you have is a hammer, everything looks like a nail. read our interest rates, but that over rate cuts. stop speculating and letting people do something else. don't they go get rich thing in your house. let interest rates go up. he wouldn't do that. he kept pushing them down. the set of lights being read, everything was green. this is a problem caused by the fed so it's about time we talk about it. >> host: thomas words, what of your other books are some of the other topics you've written about? >> guest: a few years

this was the time when alan greenspan is pushing interest rates at the super low levels and then telling people the fundamentals of the housing market are sound you should take out adjustable rate mortgages, interest only, everything will be fine. lending standards are robust. absolutely went over their heads where meanwhile free-market which is blamed for the financial crisis was trying to say to people stop doing this. don't buy the five houses of investments you are not living in and have no job of free economy was trying to put red lights on this in 2001. stop, stop. but when your allin greenspan, the federal german all you have is a hammer that is lowering interest rates. we need lower interest rates so we got 11 cuts in 2001 and instead of the red lights saying stopped speculating in real estate lending interest rates go up to tell people do something else don't think you're going to get rich sitting in your house, he wouldn't do that he kept pushing them down and so instead of the light being read, everything was green. this is a problem caused by the fed so it's about time we tal

ask alan greenspan. >> dagen?i predict record gas prices on election day, they've got to drop 40 cents a gallon to tie the price on election day, that's not going to happen not even with the saudis in your pocket. >> adam. >> ben explained that the saudis act to stabilize global oil prices, they don't care between obama and romney. >> they couldn't fact in 45 days. >> 45 days from now, just like ben bernanke couldn't have waited another 50 days. >> why do you compare bernanke. >> he doesn't care. >> no comment on bernanke. >> neil: i connect the dots. you choose not to (laughter) >> i want to thank charlie and dagen. up next, we've got stock surging, but what happens if and when they start falling? our gang has the pick that can rachel quit the corporate grind to start her own interior design business. she's got a growing list of clients she keeps in touch with using e-mail marketing from constantcontact.com. constantcontact is easy and affordable. it lets her send out updates and photos that showcase her expertis

whether there was going to be a cut in interest rates before the election and if they did that alan greenspan would have been tinkering with the electoral process. you know, the election is still also two months away. there is no way that the fed chairman, with his mandates, could sit on his hands and whistle dixie as he watches things get worse or at least not get better. now, could he have done other things? yes. there are a variety of other technical things he could do. he could -- which would have had an effect, but going for this model in this way, i can see why the republicans are seething and spitting feathers. it will have an effect. but from bernanke's point of view, he probably had no choice. >> are we going to see this effect, do you believe, before the election? >> good question. bernanke told us that qe1 and qe2 did have an effect. it created growth and did improve the situation. now, most people seem to believe that over the next couple of months as the money goes in, unemployment will come down. but i think it will be naive, it will be more than that, naive, silly, between now

ask alan greenspan. >> dagen?> i predict record gas prices on election day, they've got to drop 40 cents a gallon to tie the price on election day, that's not going to happen not even with the saudis in your pocket. >> adam. >> ben explained that the saudis act to stabilize global oil prices, they don't care between obama and romney. >> they couldn't fact in 45 days. >> 45 days from now, just like ben bernanke couldn't have waited another 50 days. >> why do you compare bernanke. >> he doesn't care. >> no comment on bernanke. >> neil: i connect the dots. you choose not to (laughter) >> i want to thank charlie and dagen. up next, we've got stock surging, but what happens if and when they start falling? our gang has the pick that can make you money even if that market goes down. even if it goes-- . any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at

i don't think most of the american people thought that alan greenspan made any sense at all. wall street over a ten-year period, bill, spent $5 billion on lobbying and campaign contributions. and they got what they wanted with democratic support. >> and? >> we are where we are. and how do you take them on? >> yeah. >> well, you need a political revolution. you need a grassroots mobilization which says among other things, "you got to break these banks up." we need a financial system which supports the productive economy and job creation. >> but that's a conundrum, because, you know, some people criticize you because you're what they call "too cordial" to the democratic party. on the other hand, some people who support you say, "well, if he is not cordial to the democratic party, he won't be able to slip a progressive idea in here and there." that's a tight rope to watch, isn't it? >> it is. it certainly is. you know, ever since my -- when i was first elected back in 1990 to the house -- >> as a socialist. >> as an independent. but, if you ask me, am i a democratic socialist, c

rates and the economy presumably on expectations that chairman ben bernanke and his predecessor alan greenspan would discuss or implement a stimulus money printing measure to lift asset prices but as i've explained the fed is essentially at the the head of the river of cash and up until recently that river of cash would irrigate the economy equally jobs would be irrigated wages would rise the manufacturing sector would there be a benefit to them they'd have rising wages you'd have real estate rising you'd have stocks rising but due to financial engineering and the adoption of derivatives and high frequency trading that irrigation now is being manipulated so that the cash only goes into stocks a few stocks owned by insiders in washington and wall street and that's the only place it goes and one bedroom i think it was a part of congress was as we're worried about deflation we're worried about deflation he fails to say that he engineer or as you just pointed out again in the stock market that's where the inflation is going that's the inflation dow jones getting close to fourteen thousand without

reported refusing to regulate fraud in the derivatives market you know she had that isn't it with alan greenspan and robert rubin and so there has been under the so-called libertarian flag a move to deregulate because of their interpretation of the government that is being interfering with your thoughts well again hard i would argue that that is pure nonsense and that you've got some people that are trying to use the libertarian banner it as a cover for yet more theft this time by the financial industry the fact of the matter there is that the creation of unbacked credit within the financial system that is the giving of credit with no collateral wind is nothing other than counterfeiting. if you look at it from a mathematical perspective that's exactly what you have you have ten thousand units of production and ten thousand units of credit currency in one unit of one by one you know to the other if you can met make another ten thousand units of credit currency here then you have stopped all in value from all of the people who currently held credit in currency because now one unit of production re

again and was responsible pretty much for a lot of the financial disaster we see had in hand with alan greenspan he helped destroy the world and that was robert rubin he's in this next story max i didn't see the group defraud billions from us ally. november two thousand and seven were. robert rubin went to abu dhabi convinced shaikh akhmed bin ziad al nahyan who was the managing director of the abi dhabi investment authority to give them seven point five billion dollars lo and behold they lost it all for them so according to wiki leaks documents that were released last year but now are coming to light in an investigation done by alter net the u.s. embassy to the u.s. secretary of state and secretary of treasury december twenty second two thousand and nine they wrote on december fifteenth citigroup announced that the aboud abhi investment authority has filed an arbitration claim based on city's alleged misrepresentation of a.t.i.'s november two thousand and seven seven point five billion dollars vestment the arbitration claim sixty four billion dollars in damages so eighty eyes investment was sup