and alan greenspan writes books. >> don't even get me started on filmore. all i'm saying with this is, look, we're now looking a year later for a pound of flesh. go after all the banks. to your point earlier on. then what do we do with all these punishments. i think in the end, they just go into a big, old pot. washington compounds the sin by sending the money they say banks were flagrantly using on the part of their customers. it's a vicious and critical circle. >> and the poor people in terms of their intermediaries who bought these bad loans and lost money on them, they get bupkis. they get nothing. and that's the real crime. it goes to the bureaucrats and not the victims. >> and this is andrew cuomo's problem. they prodded the banks to make these crappy loans. and the only way you could make them is through securitization and the federal authorities agreed to do that. >> do you think that those who took out the mortgages, $50,000 a year, took out a $1 million mortgage and you would almost think that person had his arm, you know, held. and where is his r

gold is the ultimate form of payment it's the settlement currency but what have they done alan greenspan testified twice before congress that central banks stand ready to lease gold in increasing quantities should the price rise they carry gold the bald gold out on loan as the same line item cash accounts receivable we know they're not the same thing we're seeing in an environment where an assets being with the price of the assets being suppressed not supported not by users but by owners and not for the obvious reasons as to interfere with the interest rates say interfere with the pricing mechanism of you know half of all the transactions and so we don't know what things should cost we don't know what a barrel of oil should cost or what a mentor warship should cost or what our suit should cost or our food. you know as these food prices go up social political geo political crises the arab spring you know wasn't really the tunisian kid sell on fruit that would himself on fire that started it or was it food prices going up and people not being able to eat historically when the price of food

gold is the ultimate form of payment it's the settlement currency but what have they done alan greenspan testified twice before congress that central banks stand ready to lease gold in increasing quantities should the price rise they carry gold the bald gold out on loan is the same line item cash accounts receivable we know their top the same thing we're seeing in an environment where an assets being with the price of the assets being suppressed not supported not by users but by owners and not for the obvious reasons to say interfere with the interest rates to interfere with the pricing mechanism of you know half of all the transactions and so we don't know what things should cost we don't know what a barrel of oil should cost or what a mentor warship should cost or what our suit should cost or our food you know and as these food prices go up social political geo political crises the arab spring you know was a really the tunisian kid selling fruit that would himself on fire that started it or was it food prices going up and people not being able to eat historically when the price of food

your calls onto stocks, i want to play for you --, and that alan greenspan comment that alan greenspanhe week. >> there were covered so sharply and for so long, you have to assume somewhere along the line they are going to get significant correction. we are not say that grossly overpriced at this point in the historical context. >> are we in the midst of a significant correction? >> no. i do not think we are in the midst of a significant correction. i think what is happening is that there is regional tensions, more geopolitical issues. i think that that is going to be a negative for the global economy in terms of growth. growth, but we are not getting inflation, which will keep the federal bank on hold which will be good for the bond market. we think that bonds are pretty decent. >> you have the gm numbers? >> coming out with a miss in terms of the consensus. july auto sales rose 9.4%. this is a disappointing number if you look at what would be expected gain. to reportl expected increases year-over-year. number, wage inflation in particular, that investors have been watching very close

alan greenspan warned against irrational exuberance and then the bubble crash ed and so peope hear this and they say, i could make a lot of money before it crashes. >> yes, and so people need to caveat it by it may be different. if you look at how the dow is up, and the s&p at record highs, and there is reason to understand why this bull market is looking mature, and the valuations are maybe getting stretched, but the problem is whether that is a bubble, because it is very, very debated issue. one thing that feels different, chris, you and i covered the other bubbles bursting. at the time, there was a private sector herd mn mentality and everybody running in, and nobody worry worried, but they ran for the exits at the same time. and this bubble is being driven by the central banks, and they are move ning to the exit, and waving the flag, and with the possibility of the excesses they are deflating without it bursting in the disorderly way, but it does not mean correction, but it is not going to be feeling the same as bubble bursting. >> and what about tech? people say it feels so bubbley

stein, who did a superb job for president nixon, is going back to the university of virginia, and alan greenspan is taking over. and he has been on board, i think, 2 days. that is a distinct change. i think mr. greenspan will do an excellent job. we are soliciting, through the economic summit, the views of a great many people from the total spectrum of the american society. their ideas will be vitally important in any new, innovative approaches that we take. so, i think, between now and the 28th of september, when i think the second day of the summit ends, we will have the benefit of a great many wise, experienced individuals in labor, management, agriculture, etc. >> this will give us new approaches that are wise and that official. governments and some commercial cartels, notably in saudi arabia, are restricting oil production, in order to keep oil prices artificially high. the u.s. cannot do anything about venezuela, but they can do things about cartels. what steps and actions will you take in this regard? >> i think this points out vividly the need and access -- to accelerate every aspect of

recent comments that we saw from alan greenspan when he spoke about hubris. russianothing to stop and they ran for three years. we think yellen is in a similar position. we think she is nervous about some of the valuation but we do the primary will be concern. the primary concern is for the labor market. quickly, you are overweight for european stocks. a lot of talk about equities in europe. the possibility of qe for ecb. what has driven your move to redirect? , you get a monthly investor and fund managers gather to discuss views. over the past few months, there's been a lots of discussion where people of them bullish on your. what has been key is people thinking the economy will recover. after contracting for so many call it the earnings starting to grow and margins increasing. it is coming through. if you look at what happened so far this year, we have not gotten there. say-year-old weighing on earnings. in the second quarter particularly. we had some more witnesses there. weaknessesssist -- theres. >> we will catch up with you in a minute. we will talk by

here's another article that shows you what the interventionist of the likes of mark carney of alan greenspan ben bernanke and janet yellen of everybody who's been at the e.c.b. average cost of reason a child hits two hundred forty five thousand dollars to recent child born in twenty thirty to the age of eighteen it will cost the middle income couple just over two hundred forty five thousand dollars according to newly released estimates from the u.s. department of agriculture that's up four thousand two hundred sixty dollars or less two percent from the year before it does not include the cost of university college or anything like that and it's also making capitalism look at this and they said well this is a ten fold increase in the cost of raising a child from one nine hundred sixty and if you average that off that's actually four point four percent inflation per year since one nine hundred sixty so that exposes this inflation right four point four percent inflation is closer to the actual rate of inflation the two percent that the government talks about there are enormous amount of one hun

even alan greenspan is weighing in saying it is time now, the markets have been on such a steady clipturn around. why do you think this is an election point now? >> i think it is an inflection point now because the fed took us to this point and now it's up to the economy to get us to the next point. and even to justify where we are. of even just a week ago of 4%, to show that we are on track to justify the market and to get it to higher levels. >> what will give us a correction? we have had so much geopolitical risk. nothing has sent the markets down 10%. >> over the weekend, it was a taper tantrum last week. that got the market going. and we have global geopolitical uncertainty in lots of places -- israel, and the ukraine is what is affecting the market today. and isket is tired looking for any excuse. it is probably really healthy. >> where do you weigh in on valuation? >> i think valuation's are fair, not cheap. but they will look cheap in retrospect if, in fact, the economy is on a 4% or more growth rate for the next couple of quarters. belief, you can safely invest. if it is not

. >> what is your view of alan greenspan?> the most of the board of thing about him to five farmers story in. and look in hospital to be one of the interesting things fix az left jazz music. he was a jazz player in the 40's. and any bones suggested he took a jazz players approach to the economy. it was an prize. he said there was no plan. he was very savvy. he responded quickly. the most supportive thing in terms of his curious as early on. he essentially safe. it was a big loss street crash. >> of problem to a certain degree of confidence. >> us right. very cheap money, lowered interest rates, pumps huge amounts of liquidity into the system had averted a 29-style disaster in 87. o.c. to that early on the to intention is to keep repeating it which is essentially what he did. by 2010, the very cheap- policy follow interest rate, the search for yield and people investing in high-risk products to get that yield which creates the instability in. >> and a think it comes across as obsessive interventionist. >> i was the style. he s

he warned that the financial innovations most in the audience, including then fed chair alan greenspanng the financial system safer were actually causing a financial meltdown. three years later, he was proved right. in the wake of the 2008 financial crisis, the annual meeting was ceased upon by ben bernanke to signal significant shifts of monetary policy including asset purchases which helped balloon the fed's balance sheet to $4.4 trillion. there year it hosts janet yellen, and gauging the strength of the u.s. labor market, a discussion that could see passions run as high as the backdrop of this powerful gathering. patricia sabga, al jazeera. >>> this issian net's yellen's first appearance to the conference this jackson hole. market watchers are going to be playing close attention to every word, right, chris? especially interest rates. labor is the theme, though. a lot of people think unemployment rate. but she is going to talk about a lot more, right? >> yeah. for years we looked at basically the unemployment rate to tell us the health of the market, but now there's more retired folk

. >> politicians created it. [ inaudible ] >> that alan greenspan encouraging the kind of loans, too. it was all over government. >> politicians perpetuated this. they wanted to get re-elected. they were using our money with no consequence of the future. they didn't care at all what happened to the subprime loans or what happened to fannie and freddie or all the rest of it. all they were concerned about is getting re-elected so they made promises they could not keep. >> i disagree with that. >> they made americans feel they are entitled to the bigger, better house. neil: you know politics very well. john kennedy's success says a thousand father's failure is an orphan. and orphan say bank. no saints but plenty of others. >> they have their house forecloseed. >> half of the b of a settlement is not paid in cash, it's reductions in mortgage amounts. >> they're going to wear that out, david. the bottom line is if you see that -- >> i will see that. neil: i've got a new subprime loan. >> b of a already paid 60 billion. >> countrywide and merrill lynch -- [ inaudible ] >> you want me to be

. >> that's alan greenspan, of course, dumping the water on our colleague, or nbc colleague andrea mitchellnews. the former fed chairman dumping the ice bucket on andrea mitchell. i don't know. what do you think? >> that's awesome. >>> let's do final trades. steve? >> i'm going with apple. i think the call is very well through march. >> >> going with apple. >> and josh? >> long rigs, short bieber. >>> thanks for joining us. for now, "power lunch" begins right now. >>> halftime is over. "power lunch" and the second half of the trading day starts right now. >> did i hear them say short bieber? wow. >>> big news from the american housing sector today. housing stocks are up. if there's new confidence in the home market, will it translate into new levels for stocks more broadly? canada now says it may be having second thoughts about buying that super, super expensive jet. they're not the only ones. who will this mean for lockheed martin? >>> by now you have seen the ice bucket challenge. there you go.

. >> host: what is your view of alan greenspan? >> guest: i'm a historian, so i look at what people do and they're sort of personalities, that's very important. and one of the interesting things about him is he loved jazz music. he played the saxophone in the 40s and he would suggest that he took the jazz approach to managing the economy. it was a very improvised. i quote people that worked with him and he said there was no plan. he was very savvy about markets and he responded very quickly to what the markets were doing and the most important thing in terms of his career was very early on in 87 in his tenure as the chairman of the federal reserve essentially in his own mind he saved the western world because of the crash of 87. the big wall street crash. >> host: which prompted a degree of self-confidence. >> guest: that was tricky at that time. you put huge amounts of liquidity into the system and effort the 29th by a disaster. once you do that early on in your career and you play those tunes again if you are successful doing one

i will tell you he was quite positive about alan greenspan and his activist monetary policies. it kind of surprised the rest of us because he believed the federal reserve should not manipulate interest rates at all. but interest rates fluctuate. increase the money supply to study rates -- steady rates. anyway, we don't really know what he would do in that regard. but this book, "the great contraction," this was the chapter that starts with the famous line about the money supply. that was printed separately as a little book. it is about 100 pages long. it was a new introduction by who was alive in 2007 and 2008 when this was written. anna swarts wrote the introduction in 2007. you know what she said? she said everything is just fine. nothing is wrong with the system. she missed it. most of us missed it. there were austrian economists and others that predicted it. arethey were predicting -- predicting crises every year. you always have to be careful about who predicted the great recession. but she definitely missed it. the chicago school in general missed it. this is one of the c

. >> and just getting back to the fed, ill, we had -- you know, we had former fed chairman alan greenspano where he talked about the economy, and he was a little less enthusiastic about the economic situation here, and i want to just play part of what greenspan said to us. >> we are running out of buffer in the economy. we do not have the capability, should, for example, we run into a major conflict in the middle that requiresere a major increase in our defense budget. our defense budget is headed in the direction where in two or three years it will be at the lowest level relative to gdp since before world war ii. we do not have the physical resources. >> right. >> similarly, we do not have the physical resources to respond to global warming. >> would you agree? >> well, of course, that is not about the federal reserve at all . >> no, it is not about the fed. >> i would agree that we have a problem. i would say we do have a problem, but it is primarily a budget problem. it is that we're squeezing down on defense and on other things because of the significant fiscal deficits that are proje

the gulf between an alan greenspan and a wayne angell was pretty deep accident. think it mattered that much. david zervos with an update on important speech. coming up, retail will be out this morning. that brings up our twitter russian. what are you willing to pay full price for? ♪ >> good morning, everyone. that is correct, the lights are out on atlantic city. all-day coverage tomorrow on the that chrisles christie and all of new jersey are having. i guess i will call it an albatross around their industry. this is the industry -- interesting policy of atlantic city. we will look at that all day tomorrow. worldwide tou all our headquarters. i'm here with adam johnson and olivia sterns. scarlet fu is off today. sports.ey owned they now have plans to go granular. they will cover the southeastern conference. betty liu joins us with a new newe on the new s -- the espn. how big a deal is this? >> it is a big deal. college sports is a big deal for not only sports, but the television networks. you guys know the big ten network. now there will be the sec network, which

around 2006 or so alan greenspan went to congress and said we need to spend millions and millions of dollars to build terminals in the gulf coast to import liquefied natural gas. lng that call it because we were running out of gas in this country. now we depend on natural gas for everything from air-conditioning in this room to the lights and heating etc.. so we were in a desperate situation. if you think about it going back we have always been the last few decades just worried about our future and our dependence on others and these others are people we want to depend on. i remember in the backseat of my parents car and i was in 73 i guess. i was a little kid that i remember vividly a long line at the gas pump and that was because of the arab embargo. everything has changed in just a few years. right now we produce about $8 million a day of oil and that's up from 5 million just a few years ago. we are the world's largest natural gas producer as well. we produce more energy and general than anybody else. we pass rush and it's a dramatic remarkable change in just a few years. again we

. >> i was talking to phil gramm and alan greenspan about testimony on a surplus.span had the courage to say that they are bad features at paying down the debt. what is bad about paying our bills? >> there is nothing bad. i just want to say this. my model for the 10 year treasury yield shows that as a result of the massive reduction from 5% to 3%, that would have reduced the value of the u.s. government 50 basis points on the 10 year yield. we have already gone to a very low rate. faster than any other country has managed to do it. >> that is good. i'm 100% with you. what happens when rates go up and u.s. borrowing costs, because there with the debt -- >> ou worrywart. >> yes. up, butdebt has gone household debt has gone down and corporate debt has gone down. the rest of the world has gotten a lot more leverage in the last couple of years. the u.s. is one of the fewest economies that can limit high interest rates. the world is going to really struggle. >> a substantial part of u.s. data is short-term. the fastest-growing part of governments pending is going to be i

when alan greenspan was fed chair, he commented on fiscal policy often. >> did anyone listen?they did. it's important for the fed to talk about macro effects that other him or her and i think chair yellen would be well within her bounds to call for fiscal policy. yellenou think janet believes in the non-accelerating inflation rate of unemployment? if so, where would she put that number? >> the fed's staff but that number in a range from the low to mid fives will stop that is why we will within a years time be in that range will stop i think chair yellen is a very data-driven and good economist. if the data play out in the way i think they will, her hand will be forced. i know you think the fed is going to raise interest rates in 2015. forgive me if i missed you saying it. if you are there now, would you be raising interest rates today? >> the question were today is more about communication. fed has to explain exactly what it's looking at -- they have talked about a 19 factor model. it's too complicated unless you are asking the public to focus on a single index. step one is co

the depression firewall between commercial and investment repealed.s alan greenspan were determined regulate the not expanding sectors of the financial economy like derivative trading and security of mortgages. governments toer deregulate financial controls as conditionn and as a the crisis of the late 1990's. after 9/11 memories of the wettedwall coming down the at tide of officials to show strength. them to thinkred that displays of u.s. power enthusiasm. with memories of the jubilation in medicine them think that the bepling of saddam would greeted with the same enthusiasm of the wall.tling november 9, 2001, bush 43 day.red world freedom he said "like the fall of the defeat ofl and the areaism in eastern europe freedom will triumph in terrorism." nst a little over a year later observing the videos of the toppling saddam statue secretary of defense rumsfeld declared iraqis one cannot help the fall of the berlin wall and the collapse of the iron curtain." notions inspired than the strategy statement of 2002. you all remember the quoization the introduction, the great 20th centurythe totalis

robert rubin, larry summers and alan greenspan were determined not to regulate, not to regulate the expandingectors of the financial economy like derivative trading and securitization of mortgages. they forced other governments to deregulate financial controls as a condition for free trade pacts and as a condition for securing financial assistance during the asian financial crisis of the late 1990s. after 9/11, memories of the berlin wall coming down whetted the appetites and encouraged officials to use strength. displace of u.s. power would be met with enthusiasm. memories of the jubilation of berliners of 1989 made them think that the toppling of saddam would be greeted with the same enthusiasm as the dismantling of the wall. on november 9th, 2001, bush 43 declared world freedom day. he said, quote, like the fall of the berlin wall, and the defeat of totalitarianism in central and eastern europe, freedom will triumph in this war against terrorism. and a little over a year later, observing the videos of the toppling of saddam's statue, secretary of defense rumsfeld declared quote, watching i

around 2006 or so alan greenspan went to congress and said, we need to spend billions and billions ofdollars to build terminals in the gulf coast to import liquefied natural gas. lng they call it. that can be converted to natural gas because we were running out of gas in this country. obviously we depend on natural gas for everything from the air-conditioning in this room to the lights and heating etc.. so we were in a desperate situation. if you think about it going ba back, we have always been over the last few decades just worried about our future and our dependence on others and these others weren't people we wanted to depend on. i remember being a backseat to my parents car. i was 1973 or so. i was a little kid but i remember vividly being in a long line at the gas pump. that was during the arab embargo. everything has changed in just in a few years. right now we produce about 8 million barrels of oil it today and that's up. we are the world's largest natural gas producer as well. we produce more energy in general than anybody else. we pass rush and it's her dramatic or marketabl

robert rubin, larry summers and alan greenspan were determined not to regulate, not to regulate the expandingnd securitization of mortgages. they forced other governments to deregulate financial controls as a condition for free trade pacts and as a condition for securing financial assistance during the asian financial crisis of the late 1990s. after 9/11, memories of the berlin wall coming down whetted the appetites and encouraged officials to use strength. displace of u.s. power would be met with enthusiasm. memories of the jubilation of berliners of 1989 made them think that the toppling of saddam would be greeted with the same enthusiasm as the dismantling of the wall. on november 9th, 2001, bush 43 declared world freedom day. he said, quote, like the fall of the berlin wall, and the defeat of totalitarianism in central and eastern europe, freedom will triumph in this war against terrorism. and a little over a year later, observing the videos of the toppling of saddam's statue, secretary of defense rumsfeld declared quote, watching iraqis one cannot think, one cannot help but think of the

robert rubin, larry summers and alan greenspan were determined not to regulate, not to regulate the expandingectors of the financial economy like derivative trading and securitization of mortgages. they forced other governments to deregulate financial controls as a condition for free trade pacts and as a condition for securing financial assistance during the asian financial crisis of the late 1990s. after 9/11, memories of the berlin wall coming down whetted the appetites and encouraged officials to use strength. displace of u.s. power would be met with enthusiasm. memories of the jubilation of berliners of 1989 made them think that the toppling of saddam would be greeted with the same enthusiasm as the dismantling of the wall. on november 9th, 2001, bush 43 declared world freedom day. he said, quote, like the fall of the berlin wall, and the defeat of totalitarianism in central and eastern europe, freedom will triumph in this war against terrorism. and a little over a year later, observing the videos of the toppling of saddam's statue, secretary of defense rumsfeld declared quote, watching i

>> it's a little concerning because one of alan greenspan's stories was you shouldn't pop a bubble. just let them burst and then we'll clean it up afterwards. that didn't work out very well if you think about what happened to the american economy. >> right. >> so i do think that there are some on the fed who think that the financial stability risks are reinforce the argument that the fed should begin to normalize policy. we have a policy that is appropriate to an emergency situation. >> right. we have for years -- >> this is no longer an emergency situation in the u.s. economy. >> yeah, but -- >> so an emergency policy doesn't make sense any more. they are making real progress in halting the quantitative easing and they're tapering that out. >> if you go and sit on the other side of the aisle, the emergency is that no one has had any wage gain -- >> no point. we sit on the same side of the aisle together. >> they just had an editorial that did not raise interest rates anytime soon because the economy, the job market, the wage growth, people aren't going well. they think the fed have