his predecessor alan greenspan believed in policy by discretion, and it was sort of we're doing thisecause we think its best. we're not going to tell you the reasoning behind it, and ba bernanke has gone out of his way to discuss the policy. he has not use the average person's vernacular, i think he does his best to describe why the fed is doing what it's doi doing. >> in this case what does this mean? >> very low interest rates for a very long time. the fed is going to remain supportive of the economy regardless of this small retreat from the won't buying stimulus that it undertook today. >> it's not a signal that it's going to be reduced another 10 $10 billion after that. >> he suggested that might happen but that's not been the case. >> it's very dependent on the data and we'll see it going forward. if we see significant declined in the unemployment rate, we look at john growth and they look at unemployment rate moving because people are moving or leaving the labor force. it's important to recognize that the fed does not look at one number. looks at five or six numbers in the mark

thousand and eight when the financial crisis that was the byproduct of the bad monetary policy of alan greenspan well that blew up on ben bernanke he's watch ben bernanke is monetary policy is even more reckless and irresponsible than was alan greenspan said it's all going to blow up on janet yellen. now one thing that's been said about here is that it's just a form of trickle down economics the banks get the money and prosperity it's supposed to supposed to turn it all down to everyone else do you agree with this well you know it's not it's not going to work i don't like maybe calling it trickle down government or something like that or trickle down inflation somehow if we create a lot of inflation and let wall street finance sears' get rich that it's going to benefit everybody else it's not what we need is legitimate capitalism we need real wealth creation we need production we need good paying jobs that might come from a vibrant economy you don't get that when you just have cheap money sloshing around the banks you have some people getting rich based on this but it's basically at the expense

thousand and eight when the financial crisis that was the byproduct of the bad monetary policy of alan greenspan well that blew up on ben bernanke is watch ben burnett ickes monetary policy is even more reckless and irresponsible than was alan greenspan said it's all going to blow up on janet yellen. now one thing that's been said about here is that it's just a form of trickle down economics the banks get the money and prosperity it's supposed to supposed to turn it all down to everyone else do you agree with this well you know it's not going to work i don't like maybe calling it trickle down government or something like that or trickle down inflation somehow if we create a lot of inflation and let wall street finance sears' get rich that it's going to benefit everybody else it's not what we need is legitimate capitalism we need real wealth creation we need increase production we need good paying jobs that might come from a vibrant economy you don't get that when you just have cheap money sloshing around the banks you have some people getting rich based on this but it's basically at the expense

bernanke, we saw, voted much the same as alan greenspan did. for many fed governors, their last meeting, by tradition, they do not. >> markets still trending lower. what did wall street here or not hear? >> trending lower, but as we discussed, not a lot of surprises or shocks in the market. that is what analysts were writing about this morning. i have one note from an analyst who says theties fed does not want to create any disruptions, and that is basically what i'm looking at. the yield on the 10-year note coming down a little boy -- a little bit, maybe two basis points. we are seeing continued pressure on the equity markets, but again, that looks like a lot on the earnings forecast, and we are seeing gold taper a little bit on the back of this fed decision, but a lot of that looks like fear trade money coming out of the merging markets and into the safe havens of u.s. treasuries. >> before we wrap this up, i guess we would be remiss if we did not talk about bernanke's legacy. >> i think he was the right man for the right time. the fact is we

these people were pushing alan greenspan to do that and he would not do that. he lowered the interest rates way down to one percent, then he started jacking them up very quickly. people who had variable interest rate mortgages got really whipsawed. alan greenspan encouraged them to go into them. he actually encouraged subprime loans. he was behind a lot of the policies that led to a disaster for a lot of middle-class pop families. for those saved by obama's program, there were many who were not, and many of those were on the doorstep of the federal reserve and other regulators. this gentleman is absolutely right. >> this is the last year for ben bernanke. what do you make of his tenure? >> ben bernanke was a remarkable figure. number one, he missed the blowup when he came in. most people forget that. he was warned that the big banks were into the mortgage market, but he said that if the mortgage market had a problem, it was the loners out there and it would not affect the big banks, but he was wrong about that. in terms of stepping in after the -- after the dis

the great irony of alan greenspan is he was considered a free market guy and he was that way when it came to regulation. but then when you look at his policies whenever there was trouble in 1998 he bailed out a hedge fund. not a bank, not an investment bank. totally unregulated hedge fund in an effort to sort of support the financial sector, the financial market, get the stock market going again in the middle of a huge bubble. so yeah, i think the fed is continually i think intervened in a way that has been damaging in the long run to the financial system to the health of our banks and our investment banks. because firms began especially under greenspan to take risk, specifically because they felt the fed would bail them out. and i think now it's become very explicit this sense that the fed can rescue financial actors from their bad decisions and it shouldn't surprise anyone when people make worse and worse decisions whether they're sort of being backed upper by the fed in the way they have been. >> making riskier and riskier decisions, when talking about greenspan when as you said w

tell us what is next for alan greenspan. you have just blown up all of your assumptions from decades past. you are 87 years young and still obviously working hard, like you said thinking about new things every day. going back to commodities trading? something else? >> i don't feel a day over 85. [laughter] it's hard to tell. i am sufficiently a statistician no, i will not live to 175 so somewhere between now and then, it will come to an end but i presume at that point i will still be trying to solve equations and let somebody else take over from there. >> thank you. thank you so much for being our guest tonight. let's give him a hand. [applause] >> why would you trust them? look at their track record. this is not a question of trust. this is a question of finding a way to stop them from doing that one way to stop that is to get rid of all the enrichment

of economic thinking, that is quite distinctive, i think, from the previous two fed chairman, alan greenspan ben bernanke who were both conservative economists and i think based on her writings and things she said in her speeches going back more than a decade, we can expect to see her focus on the employment issue in a way that i don't think we have seen a federal reserve chairman do for a while. >> and she's in a position to make a difference? >> the important thing about federal reserve chair people, i guess we have to use that term now, is they have an influence that goes way beyond the specific mandate of the fed mandatory policy. their economic thinking is enormously influential not only in washington but around the world. this there is the most important economic job in the world and the second most important job in washington after the president. so i think her four-year term, during that time we're going to see a lot of testimony and discussions with congress that will shape new thinking on unemployment. >> so gillian tett at the same time she has expressed worry about joblessness, s

not as good as alan greenspan with a 65% rating.vents have a way of putting performance into perspective. the janet yellen era starts monday, she'll be sworn in, the first woman to lead the fed. coming up, the future of google glass in focus. this is the year most americans could get a taste of the smart glasses. we'll take a close local them. this is "real money," right here. take a look. >> oh, man, really. >> amazon delivered a 21% jump in sales. that increase was less than analysts this pr debted. the world's largest online retailer fuelled expectations when it announced the amazon prime service had a record-setting holiday season. more than a million people signed up for the premier service during the third week of december alone. it cost 79 a year in order to get three 2-day shipping and access to a streaming library. it announced it will consider raising a price by $20 to $40. it's clicking for google. the company reporting its best sales in years. thanks to a 31% rise in the number of people, the number of times people click

look what happened to alan greenspan's legacy four or five years later. here is what it tells you, what matters is what comes next. alan greenspan was called the maestro, navigating the american economy brilliantly and then we had a financial crisis and it hurt his reputation, lasting into the history books. what matters now is is the economy going to pick up? is there going to be another financial bubble? if bad things happen that reflect on ben bernanke's legacy. if we get out as the fed is expecting, if inflation doesn't take off he will end up finishing strong. lori: a personal question and you can say no way. what is your legacy? is next for you? have been so close in your coverage of reporting on fed chairman ben bernanke and colleagues referred to as the fed's favorite mouthpiece, is there a book in the works by you? what is the plan? >> i keep covering the fed. there are a lot of people involved in making decisions and it is not just one person, not just ben bernanke. i try to get to know a lot of them. look around the world. there is a lot of int

i do not think you would have that conversation with alan greenspan or ben bernanke. >> so given youhave an understanding of for priority, ordinary households, real wages, unemployment. how much leverage does she have? doesn't really come down to the speed with which she jots back the stimulus money? ofwell, that is a big part it. her priority is going to be getting the u.s. very carefully out of this unprecedented monetary stimulus. almost $4 trillion since the beginning of the financial crisis. but i think also she will be experimenting with new tools. she is going to use forward guidance, going out to the markets and saying we're going to keep interest rates low until employment is higher and the economy is more robust. will the markets believe her? a few months ago when the fed began to hint about it tapering, you saw a real interest rates begin to go up and that did derail the housing recovery. >> fascinating interview. i am sure people are reading it around the world. thanks very much. now for a look at some faces and places that few people ever see. photographer jimmy nelson h

i do not think you would have that conversation with alan greenspan or ben bernanke. >> so given youhave an understanding of for priority, ordinary households, real wages, unemployment. how much leverage does she have? doesn't really come down to the speed with which she jots back the stimulus money? ofwell, that is a big part it. her priority is going to be getting the u.s. very carefully out of this unprecedented monetary stimulus. almost $4 trillion since the beginning of the financial crisis. but i think also she will be experimenting with new tools. she is going to use forward guidance, going out to the markets and saying we're going to keep interest rates low until employment is higher and the economy is more robust. will the markets believe her? a few months ago when the fed began to hint about it tapering, you saw a real interest rates begin to go up and that did derail the housing recovery. >> fascinating interview. i am sure people are reading it around the world. thanks very much. now for a look at some faces and places that few people ever see. photographer jimmy nelson h

crash of eighty seven the day after the week after the president's working to financial creatives alan greenspan ronald reagan and robert rubin treasury secretary a lot of people don't even admit that this exists but not only does it exist but the mandate has expanded so that the u.s. government effectively is managing markets all over the world with a trillion dollar line of credit it's just become an out of control monster what do you think well first of all having sat on this group it has no power it doesn't orchestrate anything so the idea that it's a plunge protection team doesn't really add up however i laid out that in the first second because on on tuesday october twentieth which is the day after the monday crash yeah the government won in about s. and p. futures contract our body leverage credit as an actor you that's a market manipulation interference i thought of this group but you got the group wrong the point is the group you're referring to now is a bunch of bureaucrats who are two levels down but what does matter is when the secretary of the treasury and the head of the federal re

research about in 2006, alan greenspan left on a high in history has not been that kind.bernanke going to be judged by the markets as he steps away? thatthink in some ways jury has to remain out because we only started on this road of tapering, nevermind trying to normalize rates which remain at historic lows. and the fed will be glad they have managed to get onto the road of slowing down asset purchases. they hope they can stick to it over this year because as a very unconventional monetary policy with some of these consequences we have been discussing, they will be relieved to no longer be using it. they can then start to focus on rates. i think he had to repair a lot of damage and address a very bad situation and it is coming out. >> the new one of coleman rate -- 6.5% unemployment rate seems to be pushed to the side. inflation is still too low. it is half of what it should be. >> even though growth has been robust and been improving to a large extent over the past year, the fed of members expectations about the long-term level of fed funds, they have been getting push

i expected to build on the monetary policy framework that i inherited from paul volker and alan greenspan. they solidified the feds commitment to low and stable inflation as foundations of our economic stability, and they gradually increased transparency. for example, chairman volker introduced a money targeting framework to help guard the fed's attack on high inflation in the early 1980's. and the practice of issuing a statement after each meeting began under chairman greenspan. i believed that a more transparent approach would make policy more effective and further strengthen the fed's institutional credibility. in particular, as an academic i had written about the approach used by the bank of england and other central banks. by making public some simple information about policy goals and strategies for economic forecasts, the central tanks -- banks provided the economic framework to help the public and participants understand and anticipate policy actions. the provision of the goals and policy plans also helped to make the central banks more accountable for achieving their stated objec

you're taking over from a person, alan greenspan, whos been deified. you become chairman of the fed. are you gonna walk in the office and say, okay now everything's different? right, im taking over from god and im changing everything. i think that would have been asking too much of anybody i don't think anybody would have done that. >> reporter: so, mixed grades before the crisis high grades during. but what about the fed's policy ever since, so-called quantitative easing in which the fed continued the expansion of the nations money supply begun during the crash, an expansion that the fed is only now, gradually, tapering off? mightn't all the new money, an lead to inflation and another crash landing, risks that the feds new chair, janet yellen, will have to contend with? has expansionary policy since the crisis as you know many critics alleged-- >> including me. >> reporter: --set us up for another fall? >> reporter: again, conservative economist charles calomiris. >> the fed under bernanke under the last two years has created inflationary risk that co

but so did alan greenspan when he left office. bernanke's final chapter will be written for another few years. remember, 2000 five, ben bernanke said we won't have a housing problem. 2005, ben bernanke said we wouldn't have a housing problem. he gets it on youtube. >> going to go down under, firefighters fighting a 45,000 hectare -- what is a hectare? a fire sparked by the extreme heat that has been leaking during over the south of the continent. and a lot of stories about the australian open and how it is affecting the tennis players. every day this week, temperatures over 100 degrees which seems odd because it is so cold here. some matches had to be suspended yesterday. winter currants have washed up enormous quantities of trash meanwhile on the beach in indonesia. an annual phenomenon during the winter does right into being a major indonesian tourist attraction in the summer. brazilhermen in gathering from copacabana beach as a lightning storm of dover rio de janeiro. powerrains causing outages. that is a cool picture. >> very

alan greenspan would say it is a tight labor market. >> what is your number this morning? the headline number is 218,000. >> 196,000. >> that is in line with the consensus, i will say 170,000. >> is there a wager? >> a case of mountain dew. >> 221,000. it is only if the weather impacts this. the weather did not show up. >> it will show up in january's numbers. dead onave been recently. i love your optimism. john herman with mitsubishi. thank you. >> we have to twitter question of the day -- we are crowd sourcing intelligence. where in the u.s. are you seeing jobs created? we would love to know what you see out there. made a, ipo's have strong comeback in 2013 and the momentum is set to increase this year. that is our next topic in our single best chart coming up on "surveillance," ♪ >> good morning, everyone. mon dieu is the title of our next idea. it's the story of the president and actress and reports of a private a pair that have become -- a private affair that has become public. holland reveals an affair he is having with a french actress. he called it an attack on his

it's not as good as alan greenspan, retiring with a 65% approval in 2006. >> there has been a new breakhose suffering peanut allergies. >> we're going to talk about improving the quality of life for those affected. >> one hollywood star let and a controversial superbowl ad, pressure on scarlett johansson. >> great barrier reefs, risks to the national treasure. >> speaking of national treasures, quarterback peyton manning looking for a second superbowl ring sunday, going up against one of the nfl's young guns. we will preview the matchup. real reporting that brings you the world. >> this is a pretty dangerous trip. >> security in beirut is tight. >> more reporters. >> they don't have the resources to take the fight to al shabaab. >> more bureaus, more stories. >> this is where the typhoon came ashore. giving you a real global perspective like no other can. >> al jazeera, nairobi. >> on the turkey-syria border. >> venezuela. >> beijing. >> kabul. >> hong kong. >> ukraine. >> the artic. real reporting from around the world. this is what we do. al jazeera america. >> good morning, welcome t

alan greenspan had reacted to the asian crisis.hen it came, it was substantial and it was going to have a material impact into the u.s. economy. 400ey's raised by 200 to basis points. the south africans raised by 50 basis points in the currency went down. we are seeing some volatility, but it does not take that much of the great leap of the imagination to see these countries are going to have to close their current accounts quickly with huge effects on the ripple across the world, and we still have not talked about china. >> yeah. this would be a reason for saying, i would say, you should not have left rates this low for this long is much q.e. this is not a great place to start. we created this with over easy money for such a long time. but now that we started normalizing, some of the currency weakness corrects. these countries are much better managed. so far, the strain is an emerging market currencies more than an emerging market bonds. we are not seeing, so far, it is not going to cause huge problems for countries. but but but b

alan greenspan did, and fast-forward people thought that was a mistake. >> the chairman has been very in not taking a victory lap. claiming some credit for avoiding deflation. he does deserve that, we did not have a japan outcome or a 1930's outcome. i don't think he is saying everything is fine and i did everything perfectly. he talks about risks going forward, he does talk about the challenges from potential asset price dislocations. thinking about costs and benefits of these policies. it is not -- he religious -- he realizes he has not shot a silver bullet. he deserves credit for avoiding really bad outcomes that could have been and so far have not been. >> we could liken ben bernanke to a pilot in a plane trying to pull it out of a dive. the passengers are going to give the captain the benefit of the doubt. is it possible that janet yellen could come to regret bernanke's commitment to what you call the open mouth policy, communication and openness at the fed. face challenging times trying to restore balance in a more normal environment. very tough to walk that line publicly. isit

i remember alan greenspan in his speech saying, you people tell us where the right levels are.entral bank just acts or reacts. that is what we are seeing now. we will react when the unknown planet rate is x, y or z. i think they are also looking at -- maybe it is the polar vortex effect. we are going to have two very strange unemployment numbers week on week. nobody will have been able to get to their office. be, iestion is going to think this is what they told us and this is what we already knew. i think the dichotomy is going to be, here's you have got to wait and see attitude. >> [indiscernible] >> it is utterly ridiculous. you have a situation with the bank of england -- i don't expect a statement today but mark carney has to get better levels. you are starting to see here in the u k, interest rate expectations at the end of this year -- they have gone back to about the middle of 2015. who knows what the european central bank is going to do? >> we are going to find out a little bit later. nice to see you. up next, we continue the central bank conversation. we have the ecb's

we did a series for the 25th anniversary of his inauguration and we had john paul stevens and alan greenspannd he would fly from california, he would come back just to introduce those people he felt so honored that they would make that effort. mrs. ford came less frequently. they had a running gag, they divided the country in half for fundraising purposes. he had america east of the mississippi, she had the united states west of the mississippi. >> a.j. is in alexandria, virginia, one of the homes to the ford family. hi, a.j. hi, a.j. >> i'm curious. is there a specific reason why the first lady invited king hussein for the first dinner she hosted at the white house? >> you know, it's interesting. the president became president on august 9. on august 10, she was informed, almost matter of factly, by the way, you do know that king hussein is coming in a week's time? she had nothing to do. this was something that had been arranged during the nixon administration and she literally was in her first -- within her first 24 hours was kind of thrown in, sink or swim, to organize a state dinner for t

i thought alan greenspan was kept rates too low for too long and when they came out they raised some slowly. a lot of arrogance goes along with the idea that we have this under control but we are not sweating are panicking. that makes me nervous. i wish you would show a little more nervousness about loafing. >> those books will be written in ten years. charles: this will be a great way to get back at his critics. if we don't have a giant inflation drought we will see. cheryl: thank you very much for sticking around and watching all this with us. dennis: climbing testimony about the administration's failure to pass several critical flaws in the cybersecurity of the health-care.gov web site. take a listen. >> since november 19th, 2013, testimony that has only been one half of vulnerability that we discovered that has been addressed or closely mitigated. what i say about one half is a little bit of work on it and it is still vulnerable today. dennis: joining us for a fox is exclusive the man you just saw in that clip david kennedy. the ceo of trust is easy, thanks for being with us so y

as a beginning expected to build on the framework that i inherited from paul volcker and alan greenspan. my predecessors had solidified the commitment to low and stable inflation as foundations of broader economic stability and they gradually increased the of monetary policy, deliberations and plans. volcker introduced a framework to help guide the fed's attack on high inflation in the early 1980s and the practice of issuing a statement after each meeting as cf one c again under chairman greenspan. i believed that a still more transparent approach would make policy even more effective and further strengthen the fed's credibility. in particular as an academic i to the targeting approach used by the bank of england and other central banks. by making public considerable information about policy goals and strategies with their forecasts, these banks provided a clear framework to help the ntslic and market participat understand policy actions. the plans also help make these banks more accountable for achieving their stated objectives. i was confident that we could adapt this type of framewor

." >> you write in here something fascinating, what alan greenspan said when he was here, and that'somic models and look at the logic behind it all and too none we just dismiss human behavior. >> human behavior and all the little details. all these derivative markets that blew up during the crisis. i'm an economist, i'll take some blame. we sat in the arm chair and i said i know how those things must probably work. never actually opened the contract, had a look at the terms. sometimes the reason why the economy plays because we get the big tur wrong but the little details end up to have a lot of consequences. they should have more of an interesting in those curious details. >> and sometimes human beings do not behave rationally like economists at universities studying models think they're going to behave, right? >> absolutely not. we make a big dins tings between a 2% pay cut, which that's terrible, u going to cut my pay by 2%? versus a pay freeze when inflation is 2%. it the same thing. that's also a 2% pay cut. it doesn't feel and those things can actually make a huge difference to

, income inequality is a great challenge for american capitalism even the former fed chairman alan greenspan one of the greatest challenges we face in america. >> income inequality is not the problem. it's a reflection and a lack of economic growth affecting the middle class and the working class. the answer is not to shift well. it's not to, if you will, make rich people poorer because that is not going to make poor people richer. the only way you're going to succeed here is with real economic growth and that is going to take things like education reform and require an infrastructure project in this country and require immigration reform and so forth. this issue can't be framed as income inequality. it will get you into the dead endish of politics redistribution. they have to fight back and on real mobility and on real opportunity for economic growth and advancement. when everything is growing you don't hear the debate about income inequality. this is a sign that too many people are drifting and falling and that ought to be the focus. >> politico's mike allen, thank you very much. >>> comin

if you would have given alan greenspan his grade, he would have gotten a great grade when he walked outan "a" for the iraq war? >> good point. no. can't do it. mission was not accomplished. >> professor parsons will stick sans ache grades other things for us. >> durable goods numbers and market reaction, next. >>> as we head to break, take a look at u.s. equity futures at this hour. the dow looks like it will open up at 81 points higher, the nasdaq after about 12 points. back in a moment. which makes you wonder. isn't that a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for you. e*trade. less for us, more for you. the fund's prospectus contains its investment objectives, risks, charges, expenses and other important information and should be read and considered carefully before investing. for a current prospectus visit www.etrade.com/mutualfunds. (vo) you are a business pro. seeker of the sublime. you can separate runway ridiculousnes

alan greenspan came to the rescue, 50 basis points, a great year in equity markets from september throughyear. >> right. the greenspan put was in place. i don't think we're in that space. the u.s. did develop because beyond yelleds cushions the equity market. the u.s. is better placed in a relative sense to much of the rest of the world. >> could potentially, if the same thing were to play out and the fed had to come in with a response, talking about a dangerous overvalued potentially situation yard to equities or high yield. before we get to that point, i wonder, how much leverage is there within the foreign exchange market? in other words, how much are people using funding currencies like the yen or other places to take positions and is that part of what's happening here? did we learn something about that on friday? >> i think there's substantial yen carried positions out there. the counterport to that on the em side, people washed out of those trades. i don't think there's a long, long em position. speculative accounts inclined to be short em. the big worry i have is china's got a larg

bernanke took over from alan greenspan and didn't make any changes for a while.e fed power to regulate those. greenspan ideologically explicitly refused to use that said the market could handle it. bernanke finally did invoke it, but once he did that, i think he did an excellent job. i think he deserves a great deal of credit. the argument about quantitative easing, the people who are critical of that, who essentially don't like -- and here's the point. the federal reserve has in america unlike almost every other central bank in the world what we call the dual mandate. under its statute, the government -- and bernanke, a republican appointee, has been very, very diligent in making sure that he pays attention to that and a lot of conservatives don't like it. in fact, many republicans wanted to amend the law and it was only because bernanke, a bush appointee, opposed them so much, that they never really got very far with that, so the attack on quantitative easing is an attack on the fact that the federal reserve should care about employment levels, because every ar