there was an argument made by alan greenspan that the benefit to the consumer, the benefit that accrues to the consumer, outweighs thing negatives to the larger economy, including oil stock and oil workers. do you think that's true? >> i think it's true for countries that are simply consuming oil. >> i get it. >> what is the part of the world that has all of a sudden the best economic statistics? maybe china still has the best economic statistics but the area that has come from the poor man of the developed world instead of the leading man of the developed world is europe, for us it was probably in many ways our most vital industry. even though we wert generating net energy from it, we may not have been -- >> but a lot of people were employed throughout the recession. >> it circulated money throughout economy. now you cut that out. rails have gone to pieces. so many people that produce sand, people that produce water. i mean these have mult multiplie effects. for someone who wants to buy something at walmart, et cetera, it's completely dependent on oil and financing industry, it's not g

businessstill in that where alan greenspan was in the are business, but they saying everything is ok, not worry about it. we are data dependent and we will watch the data. we are preparing and basically warrant a does not rate increase. betty: should they turn a blind eye to death blind eye to the markets? dan: with wage growth and job growth and inflation, they have gotten themselves in a position in the last eight or nine years in the financial crisis of , iaging financial markets think they should be moving away from that but not all the sudden going cold turkey, blind to the markets. aey are weaving and i have lot of confidence in the basic abilities to look at data and do the right thing. i think they have done href a job. betty: we will have much more with dan in the second half hour of the program. our closed, keeping eye on the markets. a huge decline across the board, including the naz act. losses.ome major ♪ julie: take a look at what is going on with stocks and we are dipping once again to the lows of the session as we head toward the closing bell. just got an e-mail at the

. >> who doesn't wear shows knowing more than alan greenspan. >> yes, he does. >> it's a riveting tailely to receive some oscar nominations this week. the film also makes you wonder what might cause the next global crisis. this past week the markets may have given us more than a hint. china's market plummeted 7% each day. the drop was so dramatic that trading was halted on both days. other markets around the world took big hits as a consequence. all the turmoil suggests a frightening possibility, a global recession born in china. richard, an expert on emerging markets at morgan stanley has been warning about that scenario for months. he says the world is about due for a recession. since the early 1970s, global downturns have struck every seven that have years on average. these days china is the world's biggest driver of economic growth. a reversal of years path when the united states powered growth. the world economy hinges on power like never before. beijing is mired in death and keeps on wracking up more. levels have skyrocketed to around 300% of the total economy. no developing coun

. >> so mike burry guy who gets his hair cut at super cuts and shoes knows more than alan greenspan and hank paulson. >> dr. mike burry, yes he does. >> seth: please welcome to the show adam mc [ applause ] >> seth: how are you? >> i'm good. seth: i'm so happy you're here. >> it's odd to see fred armisen playing base in your band.really cool though. isn't really cool? >> very cool. >> seth: and it's cool to have you back in the building. you worked here for a long time head writer at the show when you were here. >> yes. yes. >> seth: and i was as well. there were stories about you one of my favorites is you once orne in his office and pretended to be yankee manager joe torre. >> that is true. [ light laughter ] seth: i can't imagine having the nerve to prank call lorne. but you fully did it. >> i'm not sure if it was nerve or i had been there a long time . >> seth: sure. >> by the way i love lorne. the first time, he hired me. so all love to lorne. however when he would do and you know this, he would do the y night meetings where he would pick the show. they would do the read through an

now, i have a question for you because alan greenspan basically said that we can print unlimited greenbacks because we have our own central bank andal, too, because we have -- and also, too, because we have the federal reserve branch. now, how do we expect that our economy mainstream and also, too, our wall street to exist and to continue with this $17 trillion deficit? now, you know, as we know we all, maybe most of you are not struggling, but if this continues, we will all struggle. and there might be bread lines and things like that. >> so let me just -- i think you've asked a couple questions. let me start to answer them. >> yes. >> okay. so the debt that people talk about, the federal debt is, you know, the difference between what the federal government spends each year and what it takes in in taxes. and it's actually 3% or something now. it's not a big deal. it's not a terrible thing for the government to borrow a little more than it spends each year. it borrowed a lot more during the crisis, and that's not terrible either, because that was a good time to stimulate and to be spending

i have a question for you because alan greenspan basically said we can print unlimited greenbacks because we have her own central bank and also because we have a federal reserve branch. now, how do we expect our economy main street and our wall street to exist and to continue with the 17 trillion-dollar deficit? now as we know maybe most of you are not struggling but if this continues we will all struggle. there might be bred lines and things like that. >> you have asked a question -- a couple of questions. let me start with that. the debt that people talk about, the federal debt is the difference between what the federal government spends each year and what it takes in taxes and actually it's 3% or something now. it's not a big deal. it's not terrible thing for the government to borrow a little more than it spends each year. they borrow a lot more during a crisis. i was a good time to stimulate to be spending more. i've that's fiscal policy. that's the round up what the congress takes them and what spends about the treasury does. basically tonight we are talking about monetary policy wha

if you go back to the housing bubble years, alan greenspan could have stopped the public. simply through the fed's bully pulpit, his ability to call attention to the fact that house prices are hugely out of line. he didn't do that because he had no interest in doing that. his friends were making lots of money. you have on the one hand secretary clinton who received millions of dollars in speaker fees and campaign do nations. on the other hand, you have senator sanders who's been a life-long opponent of wall street. if you ask which one will be prepared to crackdown on the financial industry, i think you're hard pressed to say that would be secondary clinton. >> michael, your response? >> i think the secretary clinton's plan is strong, detailed, comprehensive, credible. she's issued a series of proposals to raen in risky shadow banking practice ps . to deal with the problem of trading in the shadows, to impose a tax on the riskiest forms of borrowing by the largest financial institutions. she has detailed enforcement mechanisms to ensure accountability from managers of the

i attribute the same to alan greenspan, don't know if he said it but liquidity is not at financial termut a psychological term but if we're in a state of psychological uncertainty or fear. >> yeah. >> do you see the hyg or the markets underlying the hyg getting a lot less liquid and therefore seeing a lot more downside? >> liquidity is a big issue in the market and will continue to be a big issue, dealer balance sheets and inventories shown tremendously post the financial crisis the buffer no longer exists, if you look at bid asks, the number of bonds trading, they have slunk so liquidity will continue to be a big concern. as you get outflows from mutual funds, from retail accounts including the etfs you'll see gap year and gap year price movement going for both on the downside and upside. when do you have bounces because you will have bounces. i agree 100. you'll see a lot of liquidity. >> more accessible to viewers at home, but is this a no-touch market because of the gaps up and down, sore this a short in your view given this vuca view of the market? >> vuca world. for the next 12 mo

. >> i led -- helped lead the effort as a member of the house financial committee against alan greenspan, against a guy named bill clinton, maybe you know him, maybe you don't. >> hillary clinton has carefully distanced herself from her husband's legacy on free trade, financial regulation and criminal justice. but she has also embraced bill clinton's economic successes. >> i'm not running for my husband's third term and i am not running for barack obama's third term. i'm running for my first term. >> but trump is trying to do to hillary what no republican has successfully done -- make bill political liability for her. trump wasn't always so critical of the former president's personal life. the clintons were guests at trump's third wedding and in the late '90s trump criticized "moralists in congress who express public outrage at the president's immoral behavior." >> he had sex but now they talk about the kind of sex, where it took place, where it was, on the desk, off the desk. i mean, it's so out of control. >> even in 2008 trump called unimportant. and he has his own complicated marital

$é÷ a photograph of fo apple ceo john sculley, no relation with hillary clinton and fed chair alan greenspang next to tipper gore. explain this early connection. here's the picture with john sculley and first lady hillary clinton. >> steve, one of the things that we found is the clintons and bill clinton in particular, this is in the 1980s, and 1990s, recognize that terrific growth of silicon valley reached out to key executives and personalities and potential donors in silicon valley and the clintons started relationships and maintained them. steve skully was an -- sorry, skully then the ceo of apple was an important donor to the clintons' earlier campaigns. and today we find that another silicon valley resident eric schmidt, the ceo of the chief executive of alphabet, the parent company of google, is close to hillary clinton. and it has invested in a company thast that's helping the clinton campaign develop its digital infrastructure as it looks towards the fall. >> this is what you write about in regard to eric schmidt, that company is called groundwork, which is developing cutting edge t