alan greenspan calls the 2008 recession, wage price freeze and price commodity freeze, caused a lot of the problems in the '70s. andrew jackson shut down the bank. so for everything from paul volcker and reagan, you have a lot of government people that have gotten this wrong. i'm not in the camp that janet yellen is all knowing. she missed her window and now she's reacting to the market. >> andrew jackson? that's a little much. >> some are saying that hamilton should never have created the fed. but you're the one who likes what they have been doing. >> when you have a job that needs to be done, send a woman. >> there we go. >> oh, wow. >> i have to send that to jonas. quick response. >> if if you look at the history of this country when we didn't have central banking, that was a scary time. i will take the frothiness over the panic. i personally think this is the strongest economy right now. personally, it is a fact and the whole world right now, and in that case as an american invest investor, you don't need safe havens like gold. in america, stocks and bonds do well. gold is down 40%

you remember a time when they would ask alan greenspan about the currency and his canned comment wasot on the dollar, that's the treasury's jurisdiction. robert rupert would say strong dollar policy. is all of that out the window? the dollar is treated much differently under a yellen fed. >> they seem to be afraid of a strong dollar because it would have a slightly negative impact on exports or something like that in the short run. i think a strong dollar is the linchpin of the world financial system if we wanted to be the key currency in the world, we should be pursuing a strong dollar policy. otherwise it's impossible to be the linchpin of the world financial system. >> in our last 20 seconds, bob, they've done things that they need to reverse, of course, programs, policy, balance sheets, and the reversal of that or the normalization is going to result in a stronger dollar, period. if they don't want a stronger dollar does that mean we'll never see normalization? your final observation. >> i think the federal reserve is afraid of itself. they have not raised interest rates for seve

us.s whalen with the stock market is important to the country, alan greenspan date on that idea.on me to bankers, do they pull in their bankers for next year? chris: the chinese turmoil quieted things down, we were looking at a record year, 14%, 50% growth and corporate issuance. whateal issue is to see happens in september, the new issue market comes back and we start to see volumes again and it will be ok. we lost august, china took august. vonnie: what was the fear? chris: fear of what they do not know. i have been saying for a long time that the chinese growth numbers -- once you start to shake investor confidence in what they think they know, the cognitive illusion we all have, then the markets get royal. because the street cannot deploy liquidity none of the big banks can deploy liquidity. tom: i want to talk about which bank made the dumbest decisions 2004, 2005, 2006, who is the trophy holder? chris: the once not with us. they rolled their balance sheet. 2004 was the peak, $4 trillion. chris: countrywide. they were a quarter of that number. tom: coming up, important conve

and alan greenspan says there's more pain to come.om from the former fed chair straight ahead. >>> and listen up, all you "star wars'" fans. >> yeah! >> it is force friday. new "star wars" merchandise is in store as disney begins cashing it in on the next "star wars" franchise before it hits theaters. we will take you to the toy store as the second hour of "squawk box" starts now. ♪ >> live from the beating heart of business, new york city this is "squawk box"." >> cincinnati band, right? >>> welcome back to "squawk box" here on cnbc, first in business worldwide, i'm joe kernen along with becky quick. andrew is off today. liesman is here. >> why did you hit him? >> i don't know. >> it was like a serious about hit that wasn't just like a love tap or anything. >> it was a bro punch. a bromance. >> because football season is now going and you got the jets going? >> felt close to you for a second. >> you know, it was -- >> it was a moment for both of us. jobs friday. >> for you anyway. >> it is less than 90 minutes away from the august re

even alan greenspan hinted at that. the political fodder that got president obama elected.omehow that resurrects itself with the shaky stock market going into the election with the shaky economy. people are saying is simply does not work. we have got to try something different. >> when the candidates continue to tell people that the way you prospers by solving wealth inequality rather than the way you saw wealth inequality is go become wealthy, when the candidates keep beating that drum have a segment of the population who sits back and says my will elect someone who will make me wealthy. that hasthat has not happened in the history of man. you have never had people in power make other people wealthy. this is the greatest economic system in the history of mankind. the little man has a better chance right now. ii mean, a better chance right now today than he has ever had. charles: you are amazing. i appreciate you coming on the show. >> in honor to be with you. charles: floyd mayweather, undefeated world boxing champion on the cusp of rocky marciano's record. he is next, and

i'm alan greenspan, how are you? [ laughter ] >> that guy. i want that guy.et that guy. i said, hi, i'm alan greenspan, and he is still somewhere, probably, still around somewhere. he said, what? like so many viewers, like, what an idiot, looked at me, and that was what his -- i'm alan greenspan. hey, it could happen, joe. fed chairman, why not. i don't know. it's a good life after "squawk box." >> yeah. all right. when is throwback thursday? >> you're asking me. >> in a couple weeks. >> all right. jason, thank you, david, you got any color, by the way, on the big beer deal? >> lots. >> hear from you in a bit? >> a lot. meg whitman joining us, a huge potential deal, and sab and all things that may go on. >> a lot of things have to take place. >> certainly are, including the time clock. more on that. >> we'll talk soon. thank you. >> why -- you laughed. i've never seen you laugh. >> never seen me laugh? at something you said? >> or done. >> or done. >> laughing at the expression? >> the whole thing. that was pretty good. >> thank you. when we return, that guy'

congealed on the notion we were at full employment and could not move the rate even a notch lower and alan greenspan was totally unconvinced by this, believing we could, and we did. the fed did not raise interest rates and the economy grew strongly for another 3-4 years and the unemployment rate went down to 3.9. do we know that we are on the verge of something like that, no , certainly not. suppose you put probability, that is a 20% chance. do you want to squelch that? some people are thinking about that. all that said, interest rates can't stay near zero forever. they have got to come up. you are talking about arguments over months, not years. condition willt cause janet yellen to recommend interest rates rise? the most important thing she is looking for is tightening in the labor markets. people are coming back in. labor force participation. the partially employed at people who want to work longer hours, and things like that. i want to emphasize the inflation rate. if the inflation rate starts moving up she will take that as a big signal. guest: what are we going to learn? we are not going to see

i think alan greenspan started us on the path that central banking and monetary policy could kind ofigate if not crush or flatten out recessions. what's happened is the cleansing to refresh is now missing from the system. should we get a global recession? what's the encore performance. if you looked at the balance sheet, what are we going to do? look further in the negative territory? these are the questions that we should have been asking last year. >> let's see what happens. rick santelli in chicago. >>> when we come back, the new messaging system that some are calling the bloomberg messenger killer. the ceo of symphony will join us live after the break. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second...boom, you had your first accident. now you have to make your first claim. so you talk to your insurance company and...boom, you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual'

even alan greenspan, who i answer is devoted to free-market ideas, as needed -- admitted the crisis forced him to reevaluate his neoliberal associates. we saw scott walker roll out an attack on them. leo 13thand for defended the unions. you can look at the circumstances of the shop owner who provides a living wage. the phrase living wage entered the american lexicon in 1906. it was based on leo's writings. the catholic belief is that every person is entitled to a living wage. the shop owner is a good catholic and wants to live by his faith and extends the living wage and his competition across the street doesn't, what in the market rewards the good guys? as greg gregory writes in his book, commenting on the transformation from a mercantilist to a capitalist system, "in effect, outside the price protection afforded by guilt, catholic practices have compelled to consult competitors to act as if driven by inquisitive desires even when they were not." gregory describes the shift from the good society to the goods society which raises the an blem withl pro capitalism. capitalist that we and the

he cornered with many unfamiliar with israel's government, alan greenspan. with carson now closing in on trump, does he have most to lose, i suppose, if he makes a mistake? >> not at all. dr. carson has shown that he has the values that the american people are looking for, that they are looking for a new diki of leadership. because right now washington is broken and the political class is failing us. when you look at dr. carson's experience, whether it's been the 57 countries he's traveled to, the 68 doctorates, his views and values he has about protecting america's national security, we feel very confident that he'll do well on those issues. >> i want to come to you last before we go. when we spoke yesterday you said that if trump picks a fight, jeb bush should fight back. we've seen some of that recently. is that in your view the best strategy? because as we know, donald trump likes a fight. he likes a chance to respond. it can be a risky one as well for jeb bush. >> i don't know there is another option, jim, particularly with this debate setup. when you'r

say inflation and unemployment grows and now even financial stability but you have people like alan greenspanwho are saying we shouldn't be regulating things. they know much more about what to do and they believe in self-regulation. .. >> making the poor people poor. >> yup. >> and the rich people richer. that's creating inequality. >> former vice president dick cheney ankd former executive assistant liz cheney, looks at american'shi foreign policy and security. [applause]

trish: yeah we didn't even put alan greenspan in there, guys. he is worried too.k, when you talk about importance of getting off of zero, is this in part tied to some of your concerns we hear being expressed by some of these bigwigs on wall street? >> well, look, there are always issues to have to worry about. not so much. we do have to at some-point move to neutral, i agree with keith, we're going to have extraordinarily accommodative monetary policy for several years to come. in fact, we need better fiscal policy, tax reform, regulatory leaps in order to make it easier for the central bank to move to more neutral position. that will not come for at least another year-and-a-half, if it even comes then. trish: all right. look, okay, so you're looking for quarter point. we'll see whether we get it. thursday the big day, everyone stay here, 2:00, we will have the decision for you. i got an interesting note from a friend, cliff, who runs babson capital, he basically said, that i have never seen so much focus on a 25-point basis cut, potential rate increase, rather in

about a debt bubble brewing, which we have heard some people voice concerns about that, including alan greenspan here on the show. larry, what are your -- what are the things that could really derail this market this months? >> we have to take a look at it from two perspectives, trish. one is are we making a short-term trade, and two, are we playing the investors' game for long-term. if we look at it from a long-term perspective. trish: you're buying, right? long-term. you're in this for ten years, don't worry. >> absolutely. even shorter than that, too. the next six, 12 months or so, we feel the fed has backed themselves into the corner so much with are we going raise or not going to raise? there's data out there that's all over the place that suggests they should raise and data that says we might not want to raise right now because the economy from some is not as strong and they're not capable of handling it. they're not going to get into a massive raising cycle. the last time they raised is 04-06. trish: they said if they were to move and were to hike by a quarter percent, they actually would

even alan greenspan who i am sure is as devoted to free market ideas as anyone in public life in the last 50 years admitted that the crisis forced him to rethink his neil liberal assumptions. at the micro level we can point to this attack on unions, we saw scott walker rollout and attack on that. be owe xiii defended unions. consider the circumstance of a shop owner who wishes to provide a living wage, but for the presented the american lexicon in 1906, john ryan stock dissertation at catholic university based on rio's writings, catholic belief is every person is entitled to a living wage but if the shop owner who is a good catholic and wants to live by his faith extends a living wage and his competition across the street doesn't, what in the market rewards the good guy? as fred gregory observes in the unintended reformation commenting on the transformation from a mercantilist to a capitalist system, quote, in effect outside the price protection capitalists practice is compelled myrtle competitors to act as if it were driven by increases in desires even when they burn not. he describ

rose by more than i think $22 billion, and he was the beneficiary of the housing bubble that alan greenspanlaims he could not see, but i wrote about was very obvious long before the bubble popped and so did a few other people. so neither of the two gentlemen here has a clean hands. another let's go to heated exchange from wednesday night. this time it is regarding trump 's suggestion bush's views on immigration were influenced by his mexican born wife. >> to subject my wife into the middle of a raucous little conversation was completely inappropriate, and i hope you apologize for that, donald. >> i hear phenomenal things. i hear your wife is a lovely woman. i don't know her. >> she is absolutely the love my life and she is right here. what are you apologize to her right now? >> i want do that, because i said nothing wrong. nermeen: john nichols, could you respond? >> this is a huge part of what donald trump does. the way he has played american media, and you star really example of it just in that moment in the debate, the way yes played american media is to say absolutely outrageous things,

even alan greenspan, who i'm sure as devoted to free market ideals as anyone in public life in the last 50 years admitted the crisis forced him to rethink his assumptions. at the microlevel we can point to, again this attack on unions. we saw scott walker roll out an attack on that. i will stand with leo xiii who defended unions. we can consider the circumstance of a shop owner who wishes to provide a living wage. the phrase living wage entered the american lexicon in 1906. john a. ryan's dissertation at catholic university. based on leo's writings. catholic belief is every person is entitled to a living wage. but if this shop owner who is a good catholic and wants to live by his faith, extends a living wage and his competition across the street doesn't, what in the market rewards the good guy? it was observed in the book unintended reformation, commenting on the transformation to a capitalist system, outside the price protection accorded by guilds, capitalist practices compel competitors to act as if they were driven by desires even if they were not. it was described the shift from the

that we're at full employment and couldn't move the unemployment rate even a notch lower, and alan greenspan was totally unconvinced by this, believing that we could, and we did. the fed did not raise interest rates. and the economy grew very strongly for another three, four years, and the unemployment rate of 1.1 went down to 3.9. now, do we know that we're on the verge of something like that now? no, certainly not. but suppose you put some probability weight, suppose that's a 20% chance, do you want to squelch that? i think at least some people on the fed are thinking about that. all that said, gillian and the others are right, interest rates can't stay near zero forever, they've got to come up, so you're talking about arguments over months, not years, and when interest rates are going to go up. >> rose: let me understand, at markets. glen mentioned labor force participation. the u-6 that includes partially employment and people who want to work longer hours and things like that, and i want to emphasize the inflation rate. if the inflation rate moves up, she'll take that as a big signal. >

alan greenspan, and ancient morning must-read.ded to increase slightly, the pressure on reserve positions. let me throw this to ethan harris. tos the fed have the tools do what it is deciding to do, the tools our new to achieve the old results. can they get that done? >> they can. they are going to have a quarter that will have a low end and a high end. that vote is a complicated way of saying we are going to hike 25 days. the good old days of fed speak, they're going to raise from zero to 25, from 25 to 50. it will be hard to get the country to go in the middle of the range. something above the low end. the scheme of things, is an important if it is a few basis points lower than they would like? not really. brendan: what is your first draft of the janet yellen fed? >> it is not that fascinating. , the secondrnanke story. she is focused on getting the recovery and economy in place. not an uber-dove, she is a situational dove. tom: what is sick, i remember where i was february 4, 1994. that is how important that statement was. expl

. >> you gets supercuts doesn't wear shoes knows more than alan greenspan. >> yes he does.broker chris hill stays at laquinta he fires up the free wifi, with a network that's now up to 5 times faster than before! so he can rapidly prepare his presentation. and when he perfects his pitch, do you know what chris can do? and that is my recommendation. let's see if he's ready. he can swim with the sharks! he's ready. la quinta inns & suites take care of you, so you can take care of business. book your next stay at lq.com! la quinta! maria: welcome back oil trading higher this morning -- carrying yesterday's losses slowing energy demand gasoline on decline, down 2 cents from a week ago, at cme in chicago the latest action good morning phil. >> hey good morning, maria, hey gasoline prices have been coming down, they have been coming down quickly, but that may slow just a little bit. yesterday we had two major a pipelines went down on could lon yal for gasoline in the midwest they were down that caused a slight disruption in imports going to see oil move the other big story engend

alan greenspan told us -- faber was right. remember?ievable, a cameraman there, he'd come around the corner alone, greenspan, and just walk -- not on a crosswalk, you know, just trot across the street and walk up these steps to the building. i guess that was -- we were innocent back then, weren't we, steve? unbelievable. >> well, it was nine years ago, and i think it was the great mark haines the best of determining -- >> whether it's a fat or thin briefcase then. >> right. >> funny thing, he talked about it, see how much stuff -- there he is. actually, right there. >> joe? joe? it was nine years ago. >> see what he says here. >> hi, i'm alan greenspan, how are you? >> look at that guy. [ laughter ] >> i've seen that act on tv, just keep walking. anyway -- >> it was nine years ago, joe, no ipad, no iphone, you couldn't tweet about it. >> thank you. >> there was no twitter. >> bernanke rode in an suv with tinted windows. that was not as good, but greenspan had the trench coat, we played music as he trotted across the street. the good ole

brendan: alan greenspan said 20% capital requirement forget the other regulations -- done to you -- doneut your coffee when you read that? >> think that is too high. but i agree with the thrust. if you have strong capital requirements and reasonably effective risk regulation everything else that the risk regulators to has little effect on systemic risk. brendan: if not 20% what is the ratio? 15%? >> i think it is lower than that. i would actually say that some of these extra layers of capital -- the world historically tells you that diversification is a good thing. with the regulators are saying is you are more diversified so you need more capital. brendan: coming up next, john kerry is in philadelphia today talking about the iran nuclear deal. ♪ . tom: off the radar for americans and on the radar for europe. this is a major station within eastern europe. those are police officers on the steps keeping people from the middle east out. so they cannot go to germany. the district -- distance from budapest to munich is somewhat the distance of new york city to cleveland. that is the distance

a speech by alan greenspan in 2004, notable for outlining then many of the same issues janet yellen is pledging to raise rates if the economy develops as they forecast. read span said that -- -- greenspan said that -- michael: that is exactly the message janet yellen gave us last night, saying if the economy develops as forecast, we will go ahead. but if not, we might not, so you as an investment professional have to decide whether or not there forecast is going to come through -- to come true. liz ann: keep in mind, the fed has not been great at forecasting. that is fine. frankly, there are not many people who have been great at forecasting. one of the important facets of that, and janet yellen has said this. it particularly rates to inflation because they will move when they are supposed to move and they expressed that they will move, not just at the point inflation gets to their target. but when they see the leading indicators. so when the conditions exist for an eventual move, that is when they will move. they have held back on that on the job's side because we are at the point whe

it wouldn't have happened under alan greenspan or bernanke.that rather appalling, to tell you the truth. >> we only have ten seconds left. my final question to you, do you think we'll see another round of qe before we see any rate rise? >> yes, i said that on december 24th of 2014 standing right here with you. i think we will because of this debt overhang. i wasn't sure what was bothering -- she won't say it, but she spooked the market herself by being so dovish on thursday. >> when it comes to international t should be the effects into the other pillars. it shouldn't be a preempttive scenario where that stands alone. am i not correct. >> correct. she set off forces, we saw it on friday, because you have the ecb guys talking about how to lower the euro. >> yra harris, thank you. sara eisen back to you. >>> up next, millennials may be doing majority of online shopping, but they're not the ones spending the most money. i >> you will follow up and find out? >> the navajos have not reached that issue with me. >> to the chairman, chairman bishop's

so who gets his hair cuts at super cuts knows more than alan greenspan. >> yes, he does. >> you know what, i'm pissed off, the american people are getting screwed by the big banks and i'm getting madder and mad are. >> it's unbelievable. >> then this guy walks into my office and says -- >> there's some shady stuff going down. if it keeps raining the levee is going to break >> a big old party. a few outsiders saw what no one else could. the whole world economy might collapse. >> i'm sure the world's banks have more incentives than greed. >> you're wrong. >> no one is apaying attention. >> the banks got greedy and we can profit off their stupidity. >> you want to bet against the banks. >> they're going to think we're >> fraud has never ever worked. eventually things go south. that? >> how can the banks let this happen? >> it's fueled by stupidity. >> tell me the difference between stupid and legal and i'll have my wife's brother arrested. >> do you have any idea what you just did? you just bet against the american economy. ah ah >> if you're wrong, you can lose it all. >> the banks def

. >> this morning, fed chair alan greenspan was on squawks box. this morning he noted, let's stop worrying about a quarter point rate hike if we get one. because we've got entitlement spend something which is now three times more than it was 40 years ago. we have all these other monetary and fiscal challenges and that we're too obsessed about a potential negative outcome from a quarter point rate hike. would you agree with that? >> yeah, i think he's right. i think the economy can stand a 2% nominal policy rate ultimately but i'm not sure that the risk markets can. at the moment the forward yield curve in the u.s. is forecasting a 1.25% policy rate two years from now. that pricing significantly impacts stock prices. high-yield bond spreads, arbitrage possibilities and real estate and private equity markets. so in my opinion, the fed and other central bankers went too low and for too long, and now it will be very difficult to significantly reverse course. but interest rates at 2% probably wouldn't hurpt tt the economy, they would hurt financial mar

neil: used to be indicator for alan greenspan. >> it has reach ad new low.s is your fault. >> thank you very much. >> janet yellen one. most powerful people in the world? neil: what do you have against her. >> i don't necessarily have anything against her but -- >> necessarily? >> she is super dove. i think she should have raised rates a year ago and i think we wouldn't be having this stupid conversation. >> she -- >> i agree with you, stuart, 100%. neil: a charge against all fed chairman. >> think about it. why is this agency playing such a central role in our lives? neil: because no one else is? >> they're unelected. almost no transparency. neil: where would we be without the fed acting? >> i agree. neil: janet yellen is where? >> should we know a little more about them? neil: she got to where the event. the decision has been made. the decision has been made. >> i think charlie makes the right point thousand, neil. the fiscal policy has been nothing. it has been nothing. and so janet yellen and the fed have become increasingly more important with this, we'

at least sense alan greenspan.bembenek he gave a speech in jackson hole. he quickly rectify that with another address, and the markets may be looking to janet yellen tonight to try to give a little , taken fusionty of the markets. they don't have to raise rates, she does not have to when, but ketseast give mar guidance. mark: is at the message that is confusing or the interpretation of the message confusing? michael: it's the old, i don't understand what you think i said message. the rate of inflation is going to fall. that's not what they have been telling us for a long time. as unemployment falls we're supposed to see inflation build bike up -- backup. they put interest rate on hold, but still said something they would do some thing by the end of the year and you had fed bank president say, we are going to raise rates by the end of the year. a mixed message. betty: i know what is hard to predict, but the fed is data dependent. we are looking at december as a likely time to move. is much right to change in the nex

even alan greenspan, who i'm sure as devoted to free market ideals as anyone in public life in the last 50 years admitted the crisis forced him to rethink his assumptions. at the microlevel we can point to, again this attack on unions. we saw scott walker roll out an attack on that. i will stand with leo xiii who defended unions. we can consider the circumstance of a shop owner who wishes to provide a living wage. the phrase living wage entered the american lexicon in 1906. john a. ryan's dissertation at catholic university. based on leo's writings. catholic belief is every person is entitled to a living wage. but if this shop owner who is a good catholic and wants to live by his faith, extends a living wage and his competition across the street doesn't, what in the market rewards the good guy? it was observed in the book unintended reformation, commenting on the transformation to a capitalist system, outside the price protection accorded by guilds, capitalist practices compel competitors to act as if they were driven by desires even if they were not. it was described the shift from the

we can look at the 2008 economic meltdown here and around the world, even alan greenspan, who i'm sure is as devoted to free market ideas as anyone in public life in the last 50 years, admitted the crisis forced him to rethink his neoliberal assumptions. at the micro level we can point to, again, this attack on unions. we saw scott walker roll out an attack. i will stand with leo xiii who defended unions. we can consider the circumstance of a shop owner who wishes to provide a living wage. the phrase living wage entered the american lexicon in i believe 1906. a dissertation at catholic university. catholic belief is that every person is entitled to a living wage. but this shop own er is a good catholic extends a living wage and his competition across the street doesn't, what in the market rewards the good guy? as brett gregory observes in "the unintended affirmation," quote, in effect outside the price protection afforded by gildz, capitalist practices, mercantile competitors compelled to act as if they were driven even if they were not. he describes the shift from the good society to

we have an interview with alan greenspan at 1 p.m. eastern.ad, speaking with the legendary investor warren buffett. matt: he is at a manhattan steakhouse, of course, for his annual charity lunch. bigill tell you forked over bucks to get the opportunity to share a meal with warren buffett. ♪ pimm: this is the bloomberg market day. i'm pimm fox. matt: i'm matt miller. let's get to julie hyman. julie: as matt riley pointed out, we are's -- as matt rightly pointed out, we are still down on the s&p. the dow earlier was up as much as 330 points. it has pared back to some degree. the nasdaq is positive on the year, but has been bouncing back-and-forth edited in recent weeks. some of the best performers today, particularly in the azerbaijan hundred, tycho energy s&p 500,ularly in the o energy, its biggest one-day about 24%.f 1 -- of the company is waiting in -- wading in at a time that is somewhat tough for other energ ies. going back about 10 years, the acquisition activity in the utility industry -- you can see this is just for the u.s. and there ar

this period reminds me a lot of 1996 when received wisdom was telling alan greenspan we were up against the stop sign and couldn't keep growing fast and greenspan looked around and said, you know, i don't think so, and the fed held the interest rates, and the economy did, indeed grow quite a bit more. >> but there's no question about going back to the normal level of interest rates. remember the fed says a couple of years from now the fed funds rate, which today is essentially zero, should be at about 4%. so it's got to get there over a considerable period of time, move gradually, but if you're going to do that, you got to start some day. >> you do have to start some day and i think the fed is probably going it start in december, and, you know, the truth is macroeconomically there's not a lot to choose between now or december. i think this is probably like a three-year process of normalizing interest rates, so, yeah, we do have to start sometime and i just think the fed is not quite ready to do it. >> all right. gentlemen, thank you very much. we appreciate your perspectives today. two

pimm: that gave way to alan greenspan -- , ben bernanke and finally to janet yellen.decision today. i leave it in your capable hands. scarlet: we continue to discuss the implications of the fed move. ♪ scarlet: welcome back. i'm scarlet fu. learn if sergeant alburgh all stand trial for desertion -- sergeant bowe bergdahl will stand trial for desertion. bergdahl was freed 15 months ago in a controversial prisoner swap for prisoners at guantanamo bay. it is a sign that the recovery in real estate will need more time. housing starts declined 3% and july's figures were revised downward. building permits for single family homes increased. the number of buildings with five or more units under construction climbed to the highest level in more than four decades. vacancy rates for went totals -- for rentals are at their lowest since 1965. while the republicans were debating last night, hillary clinton visited jimmy fallon at the tonight show. she still cannot escape donald trump. the billionaire had some advice. >> a long campaign. traveling across our great nation, i'm listen

controversial guests, david stockman, joining us on janet yellen and, for that matter, ben bernanke and alan greenspaney martin. david stockman on your federal reserve. stay with us. what a morning. we are thrilled at you are with us. it is easy, even when it comes to remail -- retail. >> retail cutbacks are coming at macy's. the company will close up to 40 departments doors early next year, about 5% of their chain, but they are planning to open six more of their discounts this -- discount outlets called macy's backstage. intel will now no longer support the science talent search, which has produced eight nobel prize winners since 1942. they have offered no reason for that decision. if it is a day in the life of a royal, queen elizabeth presiding at the opening of a scottish train line. but the day is a milestone, she is britain's longest-serving mark -- monarch. she has rained for 63 years and seven months. her great, great-grandmother, queen victoria. congratulations to her. tom: i happen to be reading late 17th century english history right now by chance and there were times when it was not as calm

tom: alan greenspan would use the phrase "conundrum." janet yellen has the rosenberg conundrum. she wants to be an adult and look beyond the commodity implosion and say we do not care commodity, we are x deflation. how does that change her dialogue and analysis of december or into next year? david: i think that janet yellen, in the opening months she took over at the helm of the fed, when she is talking about that time lag between the end of qe and the first rate hike, i think she did not mention it for roughly six months. the veryadline news next day, but it made perfect sense. in the spring they should have moved off zero. but they got freaked out over the negative, what turned out to be an negative first quarter gdp with a seasonal maladjustment. gdp, we hadminal that in the second quarter of this year. david: i am going back to janet yellen. the thing that she said in her press conference was that the financial conditions had tightened, so why are we going to jump onto that tightening by raising rates at this particular meeting? here is the problem. -- i think they boxed the

reinhart, working in research and running research for all of the fed with a gentleman named alan greenspanak it is wonderful to to you. let me go to the money question, if you will. tothere enough inflation make janet yellen act? >> no. we just heard the federal reserve is well before -- well below its goal. terms of hourly earnings and wages, we do not see that building. the external dimension is such that import prices are going down and as long as the dollar is appreciating, there is not a lot of pressure on the fed to act. tom: explain the why and the what in this debate. there are people who say, let's go raise rates now and there are people like carl saying, no, as you just said. what is the thing that divides those two camps? of the is the end summer. the way to think about it is, the first day at summer camp when you bring the kids out to the end of the dock and you tell them it will be really nice ones there in the lake, some jump right in. some of them just put their toes in the water. some of them stand there and shiver. now.is them right they understand. they would like a posit

remember when we used to listen the alan greenspan i would get like that.e're used to bright lights. >> they get to me too. >> there's a lot of -- you can imagine the cartoonists would go crazy. it's a tough job she has. the weight of the world is on every move that they make and that is an unbelievable amount of pressure and it would get to me i know. the pope looked tired last night too. >> they have long days and busy schedules and the weight of the world on their shoulders. >> right. especially the fed. she was seen by emt staff on sight and then continued her schedule so it could definitely just be a 40 minute speech of reading fed stuff. >> i can imagine if you had a busy day and you haven't taken time to hydrate i can imagine that too. >> it's bad enough to listen to a speech. think about giving a speech like that, it would be even worse, right? >> take even more of your power and stamina. i understand that. let's get to the other big stories this morning. the new apple iphone 6s hits stores today. take a look at some pictures from sidney australia o