does alan greenspan just wait for the next crisis? t i finished recently that i do not know how it is going to resolve, but there's going to be a crisis. tom: you said that in the last book. michael: and he was right! these solutions come on the fiscal side. alan: yes. michael: it's not like people on capitol hill or people in westminster don't know what to do. they don't want to do it. what is the communication? how do you tell them? how do you get through to them about these issues? alan: this is one of the great problems of democracy. it goes back to the founding fathers. how you handle a situation like troublesome,s very but eventually you get things like margaret thatcher showing up in britain. their situation is far worse than ours. what she did is she turned it all around essentially by, as i the miners were going to strike and she decided -- she knew that they were going to strike. at that point, the government owned these coal mines and she built up a huge inventory so that when they went on strike there was enough coal in bri

a conversation with madeleine albright and alan greenspan.om washington and blended this june 27 grade i am tom keene. european eggs flat out front and center this morning. francine: you still tried to frome out the aftershocks thursday. markets across the board are little bit lower. certainly, it is the banks being hit the most. tom: we are really watching take tick.ake -- tick by right now, first word news in new york with taylor raikes. : british prime minister david cameron addresses parliament today. he says he will leave office in october following the vote to leave the eu. he is leaving details of the british exit to his successor. boris johnson says that fears of the consequences are wildly overdone and of sites are being ignored. says contingency plans are in place to shore of the economy. butays that he stands by the uk's in a position to confront the risk. according to people familiar with the matter, the italian $44rnment may inject million of capital into the banks. the brexit vote sparked a .elloff by italian investors the brexi

tomorrow, join bloomberg for an hour-long conversation with alan greenspan. conversation continues. ♪ david: welcome back to a special edition of bloomberg . breaking news i want to get to very quickly. comments continue to pour in. german viceom the chancellor. .here are no half memberships check this out. cameron should resign even sooner. >> this is really interesting. it is germany in conflict with itself. this is the sep speaking. we heard from the foreign secretary. he comes from a different party than angela merkel, a and as a result of which, there is conflict over how this will work. this should have been fairly quickly. angela merkel, from the cdu, which is the senior party saying, back off a bit, time to wait, maybe we should convince the u.k. that needs to go in a different direction. we will give them time to consider the options are germany is by no means unified. >> you talking about a fragmented u.k. on either side. for me, we are not just talking about a conversation of how this .esolves itself for a lot of people in the united kingdom, t

former chair of the federal reserve, alan greenspan best summed up the fears behind the brexit. >> i think this is just a tip of the iceberg. the reason i say that is that this -- the problem that's causing the british problem is far more widespread. fundamentally, what we are looking at is a massive slowing in the rate of real incomes across the whole european spectrum. >> so, is this the tip of the iceberg? that question is particularly important on a day like today, because that basically answers, are we going to see more selling pressure? are we going to see more volatility ahead? >> my answer would be yes. i do think this is the tip of the iceberg. now, the question is, how big is that iceberg and how long does it last. these things take time. when you talk about the potential break-up of the eurozone, is there going to be contagion to spain, i'm not worried about greece or the smaller countries. spain has an election this weekend and france, and there, you look at some of the banks today, they got absolutely crushed. that's going to be a problem for them. where the fulcrum is w

former federal reserve chairman alan greenspan says things will get worse before they get better. conversation with tom keene and mike mckee. the fundamental issue is the fact that it has to a hold.ound we're running out of people and everyone is very pleased with the fact the employment rate is rising. that we needll us more and more people to produce less and less. that is not a prescription for a viable political. iswhat we have at this stage stagnation. i do not rank there is anything out there that suggest a recession but i do not know that. ,hat i know is the money supply which has always been a critical time,tor is for the first going up remark we steadily, six or 7%, almost a straight line. is tilted up in the last .everal months it has added one percentage point or two. i think -- the thing we should be worried about now, which we have given no thought to whatsoever, is that this type of economic environment ends with inflation. historically, it has always ended up that way. >> i will get a lot of letters from people saying what is he talking about, there is no inflation,

what a joy yesterday to speak to alan greenspan. view went worldwide, greenspan on scotland. we will speak to mervyn king and -- have to ask the former could scotland leave? francine lacqua and tom keene, we continue with our coverage on brexit. ♪ are big,lly markets thanks advance. restoring trust in the united kingdom financial system. we are confident of the no-confidence in labor leader jeremy corbyn. the usual suspects are uncountable. they are many. the united to kingdom alchemy. in this hour, a conversation with marvin king. the morning, everyone. this is "bloomberg surveillance ," from our world headquarters in new york. explain to our global audience jeremy corbyn's tentativeness, his fragility with the labour party. with him we will speak in a minute. it seems that he will not step down, and the people who put him basearge are a very strong that probably will not push him out. cabinet, in the shadow cabinet, left, but it is unlikely that he will be -- i would look at central bankers as the real firefighters, and i would loo

as alan greenspan never was, a press conference to explain the fed's banking. alan greenspan was bed -- fed chairman not too long ago and now was unthinkable and now it is just normal. mike: what did you learn today about the fed's reaction? why would they consider giving their economic outlook? it is a further tightening of the labor market starts to show evidence of inflationary pressures. was interesting to me that esther george did not dissent decision because if you look at the data in a certain way you can see signs of that. for example, we see that the unemployment rate is just slightly below the fed's estimate, and we see both wages and prices accelerating, though from very low levels, not levels that scare anybody right now. but they are moving up, not down. if you are sufficiently hawkish, that would be -- those would be nals tol figures -- sig start getting onto normal interest rates but the fed did not think that way today. mike: you look at the economic projections they put out and they see inflation rising but the unemployment rate over the fallin

i do object i do object to the inflammatory rhetoric like calling alan greenspan a political hack, alan greenspan may be many things but a political hack he certainly isn't. or calling george w. bush a loser, or send loser, or send the iraq war is lost, right in the middle of a major military exercise there. i cannot fail to express my objection to that kind of rhetoric which is frequently, flat out wrong. >> host: let's take one other person. he talked talk about the senate conservative fund and you write about senator reid, you have a chapter entitled the professor obama. why did you choose those words? >> guest: the president is a very smart guy. i think he knows a lot about a lot of things. i think you would do a better job of dealing with others if he was spending less time try to equate however he is talking to at the moment with his brilliance and more time listening. just to draw contrast between the president vice president, ben and a number of major deals with the vice president. they were important and worth doing for the country. he does not not spend any time trying to conv

second, and perhaps more importantly here, unlike the comments alan greenspan made to us, he said thiss not comparable in any way to a lehman style event. listen in. >> many people in the market, the rust of tesult of the refer came as a prize. as a result, certainly overshooting and we saw today there was a rebound in the markets already. judging by these reactions and fundamentals around the problem, hopefully markets will start to stabilize. that's very important, because it proves, by the way, that the markets worked smoothly. there were many concerns about market liquidity. enough buyers and sellers so that the prices can be formed and the markets could work. they d. alan greenspan compared this to the lehman's crisis, saying actually it's worse because it's more corrosive. is that wrong? >> well, in terms of market developments, i think indeed the comparison does not apply, because the reaction to lehman, as you may recall, was that several markets froze. ceased to work. no price formation. no buyers and sellers. and the bic impact all over the world. that was not the case this t

i don't think it's the worst thing that's happened in years like alan greenspan has said. obviously, there were significant moves in the market today. but, you know, it will take two years for the ufc to leave and to work out new trade arrangements with their european partners. so that will be part of the process. but in the midst of all of that, will be other countries, perhaps france and italy and perhaps, you know, other citizens of countries that feel disadvantaged and have a populist type of attitude. there will be elections, there is one in spain this weekend. and so we're going to see some change rather quickly, but not dramatic to the extent of lehman brothers or capital market crisis. >> and you know what's incredible when you say that, though, for decades, right, it was building towards a unified europe. of and we have all been told that that is a good thing for the world, it has kept the world safer. it is a unified europe, it is not a europe that causes world wars. it's just one example. you're saying, obviously, you can see the breakup of europe. other countri

we talked to former fed chair alan greenspan moments ago and we asked him about the vote and the period we are in and how it compare compares to other periods of trouble that he has seen in his time, and take a listen. >> this is the worst period i recall since i have been in public service. nothing like it, including the crisis of remember october 19th, 1987, when the dow went down by a record amount 23%. they thought was the bottom of all potential problems, and this is a corrosive effect that is not easy to go away. >> strong words from the former fed chair, and meanwhile, simon has a special guest from the floor. >> yes, on the phone is peter moscovici who is the director of economic affair and taxation, and the former finance minister of france, and senior member of the french establishment, and commissioner, thank you for joining ushs and many people are concerned that this is the beginning of the unraveling of the european project, and what would you say to those concerns? >> i would say, no, it is not the case. it is certainly a new start for the great britain because the uk cho

there is only one man who can do that, and it's her sex-god husband alan greenspan. just sayin'.point. still, hillary wasn't the only presumptive nominee to benefit from bernie's win. >> mitchell: the exit poll data from west virginia which shows that 34% -- 34% of the sanders' voters said that they would vote for donald trump in a trump/sanders matchup. >> larry: a third of bernie voters were just trump supporters with nothing better to do? is west virginia that boring? surely there is some gargantuan ball of twine or mouse-themed carnival pizzeria that's more fun than (bleep) up this election. here with how the clinton camp is handling these sanders victories is clinton campaign aide carlos jordanson. (cheers and applause) >> hey, how you doing? >> larry: so what's theg amoption the clinton campaign right now? >> this whole thing is really an inspiring underdog story! >> larry: wow, so even the hillary camp can't help but get swept up in the bernie story? >> no, hillary c underdog! yeah. >> larry: what? >> a smalltown girl -- from city -- trying to win the presidency. it's a st

. >> reporter: former fed chairman alan greenspan sounding off on the brexit and warning of its impact here at home. >> this is the worst period i recall since i've been in public service. >> reporter: today's market plunge hitting retirement accounts, americans with 401(k)s losing an average of $3,100 just today. but it may stabilize in the coming weeks. do you think the brexit will drag down the stock market all summer? >> i think it's going to keep a lid on it. i don't want to say it's going to drag it down, because anytime you hear about problems in europe, the dollar gets strong and interest rates go lower. >> reporter: with the fed a lot less likely to raise rates any time soon. that's good news if you want to buy a home, but bad news if you have money in a savings account. economic uncertainty could slow down growth in the u.s. especially if consumers cut their spending, and companies cut jobs and manufacturing. another silver lining for americans, tonight the u.s. dollar is now worth a lot more in the uk. meaning a trip to buckingham palace just got a whole lot cheaper. >> ther

, how should george sorosd to or alan greenspan and others looking for bigger drama? how should london respond? howard: if you are in a position of response ability, either in government or running or overseeing big institution, it is wise not to speculate on the bad things that could happen. it is wise to focus on making sure your own institution is sound. of course that is what i tend to do. i think some of these noises are rather unhealthy. on the other hand, just to shout don't panic is not likely to be hopeful when the reality is some things have changed. what we have tried to distinguish is those things that are just noise and those things which are likely to produce a more enduring change which you have to adapt to, because if you say we don't believe anything is changed, people are going to say what kind of planet are you living on? it is about steering a course between the two things. it is quite delicate. i tried to focus on what do i think what is likely to be in during? and what do i think is noise i have to get my head down? francine: we love what you do

alan greenspan has written on this as well. federal fed governor and a number of prominent economists. a number of nobel laureates have endorsed our approach. i think there is a growing consensus that there needs to be inew regulatory paradigm banking and capital markets and it also runs having high levels of private capital to absorb losses so we don't have systemic events, so we minimize the opportunities for financial panic. i'm not going to have enough arrogance or hubris to say if this bill would pass there would never be another financial incident in america but i think they would be a lot less severe and certainly less frequent if we had high levels of private capital. >> howdy respond? chairwoman yellen was asked this question and explain that leverage ratio is a backstop to the capital measure you have a debate happening now overseas with the committee in terms of reorienting a slew of capital rules in order to remove that variability so that things are on the same level playing field get the banks are pushing back bec

alan greenspan has written on this as well. federal fed governor, a number of prominent economists.lready three different noble laur yet have endorsed our approach. so i think there is a growing consensus that there needs to be kind of a new regulatory paradigm in banking and in capital markets. and it all surrounds having high levels of private capital to absorb losses so that we don't have systemic events, so we don't -- so we minimize the opportunities for financial panics. and again, i'm not going to have enough arrogance or hubris to say that if this bill was passed there would never be another financial incident in america. but i think they would be a whole lot less severe and less frequent if we have high levels of private capital. >> if i could follow up on that. how do you respond -- fed chairwoman yellen was asked this question and sort of explained that it's a backstop to the capital measure. and you have a debate that's happening now in terms of reorienting a slew of capital rules in order to remove that variability so that banks are all on the same level playing field b

michael mckee will sit down with alan greenspan. ♪ welcome to bloomberg's coverage. ferro. in his 5:00 on late sunday you afternoon. jonathan: we are taking you from new york to london to brussels. turmoil rubbed it in u.k. politics after the vote to leave the eu. eight cabinet members have resigned as revolt against jeremy corbyn. to brusselsd live to figure out what is next. what company -- countries will stand to benefit? we look at which asset classes are poised for the biggest swings monday morning. this is special coverage from london and new york. this is bloomberg tv

that is alan greenspan, the former chairman of the federal reserve. a very worried former chairman of the federal reserve, simon, back to you. >> thank you very much. volatility on the market obviously we opened down over 500 points just under an hour ago. we had a recovery, but then while mr. greenspan was speaking we plunged lower down 400 points and we continue to bounce. let's get more on the markets from kayla, again, live from london. kayla. >> well, simon, i just got off the phone with j.p. morgan chase's ceo of the corporate investment bankings based here in london. and we talked about sofrt of the scope of the market activity today and exactly how much volume these banks are having to handle. of course j.p. morgan one of the largest global market makers. he said in asia overnight for clients they did $60 billion in spot fx trades, that is four times the normal volume. and he said they saw half the normal liquidity. that gives you a sense of exactly how many orders are coming in and exactly what these banks are able to execute. he said liquidi

with alan greenspan, everybody knew what he wanted. threehe has never dissents since she was chair. you have to go back time to 2011 the last time there were three. alix: take a look at with the markets are doing, especially in the yield market. julie hyman has a check on some of the movers. julie: when we were first talking at the beginning, when they got the headlines, before she spoke, we saw a little bit of a spike in the yield of the two-year. then it came down to where it was before the speech. still an increase in yield but not a further increase. 0.8%. take a look at the u.s. dollar. the bloomberg dollar index. we saw in slide as she was talking. it had been higher but not by much. now lower on the day versus a basket of currencies. ,lso, i have been watching wirp watching the curve of possibilities for what may happen later in the year. 2% is now the aunt for the june meeting. 25.5% for july. then all the way out to december before you get 61% for that meeting. quick check on gold. a lot of volatility while she was speaking. s

tomorrow morning, former fed chairman alan greenspan at 9:00 a.m. you do not want to miss this.r fed chief on bloomberg television. alix: this is bloomberg markets. ♪ innovation technology and the future of business. ♪ >> is 5:00 in new york. welcome to bloomberg's special coverage of the brexit. we're taking you from london to new york to hong kong. the existential crisis, britain's labour party unravels. another crucial election, this one in spain. we will have the latest from the dreaded. >> mark cuban weighs in on brexit. >> let's get a check on the headlines. mark: secretary say john kerry is going to london for talks about the future of the european union. kerry spoke to reporters. kerry:

way he ran the previous majority i do object to the way he ran the senate and the rhetoric like alan greenspan he may be many things but a political hack he isn't. with in the middle of a military exercise. so i fail to express my objection to that type of rhetoric that is frequently flat out wrong. >> one other person the you have a chapter entitled professor obama. how did you choose? >> i think he would do of better job to deal with others if he would spend less time to appoint whoever he is talking to police to draw a contrast he doesn't spend time to convince me of things that i don't believe a letter to try to convince them of things that he doesn't believe we don't waste any time on that. we know how far each other can go. and to be successful and his political career but i don't think the is incessant lectures are hopeful in the outcome with some type of negotiation. >> if you do talk about that a lot and then you could accomplish more together because divided government is when you spread the responsibility around. and to make a speech early on in you never heard back? >> so whose fau

. >> reporter: alan greenspan sounded more dire. >> i think this is just the tip of the iceberg. >> reporter: it was outrage immigration. all that echoes in the current u.s. political climate. >> america needs to lead. the world wants america to lead. >> reporter: donald trump was in scotland who voted against the eu exit. >> they're taken back their independence and that's a very, very important thing. >> reporter: hillary clinton issued a state saying this time of uncertainty only underscores the need for calm, steady, experienced leadership in the white house. and bridging that british eu divide will be one of the first challenges facing the next u.s. president. >> many people are wondering what all this uncertainty on wall street means for our money and accounts. we'll break that down for you. what you should and shouldn't do coming up at the bottom of the hour. >>> and in the nbc washington app, you can take a closer look at what happens next for britain and what the vote could mean for u.s. travelers and consumers. >>> turning now to storm team seems like every day this week we either

formal federal reserve chairman alan crees an -- alan greenspans speaking out about the brexit vote atorum in washington, d c >> they made a terrible mistake. they presumed, if they had the referendum, it would be a closed issue very quickly, and the political problems they had internally as a consequence, of the minority, they thought, would be pushed aside. they were mistaken. the prime minister has lost his job. the cabinet will lose their job. outcome, in all respects. vonnie: greenspan also says he things fundamentally the european union is a good idea. medical device maker medtronic is buying hardware international -- heartware international. medtronic will get technology to treat heart failure patients. the european union may be on the verge of launching a third antitrust complaint against google. at latest probe focuses on google's targeted advertising purpose -- service, adwords. starbucks is looking to grow in india. the coffee chain plans a major expansion there as the u.s. becomes increasingly saturated with starbucks cafes. they will also start selling indian coffee at sea

and i do object to this inflammatory rhetoric like calling anton greenspan a political hack, alan greenspan may be many things .. in the fight to contain the world's deadliest diseases. he's not the first to have done so. throughout history, humans have been fighting diseases, waging never-ending wars against violent contagions. in fact, there has never been a time when humans were not affected with microbes. during this time of the south described as the detective, our speaker aside his own brushes with infectious diseases and contagion. he worked in my workers in zaire for the first ebola crisis. after 9/11 he -- after 2003 he was called to quarantine big guns. these are some of the stories he crafted in the next pandemic. as an epidemic intelligence officer, a disease center at the welcome his mission for over two decades was to lead the efforts to prepare the public for the outbreaks and health emergencies. while docked there khan told with microbes will be problem, he writes that not all epidemics and pandemics are inevitable. in fact, most outbreaks can be mitigated if not prevented.

the artificially low interest that alan greenspan in place created a big bubble in the housing industry. the clinton administration wanted to increase homeownership , so it was the government that forced them to increase the mandate, to purchase subprime 55%.ages of 3% in 1970 to the problem was that president george w. bush continued the policy, even though he knew there was a problem, but he continued that because the housing industry was boosting up the economy and keeping things going, so he allowed that to continue, but it was not actually the mortgages themselves the created the crisis, it was the derivatives that were based on the mortgages and wants the housing market collapsed, all of the derivatives -- the banks did not have enough collateral to cover all the losses, and that is what is required -- that is what required the bailout. democrats blamed george bush, but it started in the clinton administration, but george bush continued the policy. guest: that is a great history. i was not in congress when clinton was here, i was when bush was here. this caller is right on the mar

. >> from your book how capitalism will save us, alan greenspan's policy undermine free market. rand would not have succumbed to the temptation to believe that a government agency like the fed could fine-tune the american global economy. >> this again it's the conceit that a handful of people in washington were in the european central bank or the bank of japan or england can determine what the price should be, how the economy should grow. they treat the economy like the machine. the the economy in this country, 320 million individuals and that's adding up will all of us do. we are not machines. when the fed does something, it affects the economy in differen ways. we've seen that a central plan did not work for the soviet union.ma the chinese are still trying to be with the old done with the new to get their economy modernized and yet the fed thinks it can guide the economy by manipulating interest rates and trying to determine what the economy should do. it's scandalous. just one thing. janet yellen, who heads the fed today says, and so do her colleagues, we need 2% inflation. t

go back to the old days where alan greenspan would bring in a briefcase and we would have to figure it f it was heavy or not. that's all we had. focus on the tape and what the markets are doing, not dissect every word. liz: tim, a quick thought. >> i agree with most of that. markets are not terribly concerned with the uncertainty over little tweeks that the fed is going to make. we know that eventually rates are going up and there's two sides to the near zero interest rate scenario. one side is rates are very, very low and the other side is it signals the economy is in stall speak, that is a negative. depends which way the markets want to lean right now. liz: thanks to all of you guys, really great, bangup job, the markets have turned negative. with the closing bell about 13 minutes away. i'm seeing sectors moving higher. a good chunk of them. i.t. and the materials, peter barnes, fund manager anthony scaramucci along with charlie gasparino, all three up next. . liz: all right, folks, we have dropped precipitously in the last 7 1/2 minutes. we now have all red on the screen, going into

. >> reporter: alan greenspan sounding off on the brexit and warning of its impact at home. >> this is period i recall since i've been in public service. >> reporter: americans with 401(k)'s losing average of $3100 but it may stabilize in the coming weeks. >> you think the brexit is going to drag down the stock market all summer? >> i think it's going to keep a lid on it. i don't want to say it's going to drag it down. you hear about problems in europe the dollar gets strong and interest rates go lower. >> reporter: with the fed less likely to raise rates that's good news if you want to buy a home, bad if you have money in a savings account. economic uncertainty could slow growth in the u.s. especially if consumers cut spending and companies cut jobs and manufacturing. another silver lining for america, the u.s. dollar is now worth a lot more in the uk. meaning a trip to buckingham palace just got a whole lot cheaper. >> there might be these near term benefits we're seeing, lower interest rates, cheaper travel abroad. the volatility in financial markets we know nobody likes to watch th

and i do object to this inflammatory rhetoric like calling anton greenspan a political hack, alan greenspanmay be many things

now, alan greenspan is, of course, the former chair of the federal reserve and he's known to be respectede criticized by more progressive economic experts. but his diagnosis today of the problem overlaps with the progressive concern from occupy to the bernie sanders campaign. when real incomes are down, people aren't benefiting from the so-called benefits of an economic system and then the entire system can lose legitimacy. now, he calls it a political problem for the eu and may be an existential one. here he is on cnbc. >> i think this is just the tip of the iceberg. and the reason i say that is that this problem that's causing the british problem is far more widespread, fundamentally, what we are looking at is a massive slowing in the rate of real incomes across the whole european spectrum. real incomes are not going anywhere. and that is creating a serious political problem, which is not easy to resolve. >> we are joined by jared bernstein, senior fellow, and former chief economist at economic policy adviser, to vice president biden. he's an msnbc contributor. keir simmons, also back w

now, alan greenspan is, of course, the former chair of the federal reserve and he's known to be respectedall street while criticized by more progressive economic experts. but his diagnosis today of the problem overlaps with the progressive concern from occupy to the bernie sanders campaign. when real incomes are down, people aren't benefiting from the so-called benefits of an economic system and then the entire system can lose legitimacy. now, he calls it a political problem for the eu and may be an existential one. here he is on cnbc. >> i think this is just the tip of the iceberg. and the reason i say that is that this problem that's causing the british problem is far more widespread, fundamentally, what we are looking at is a massive slowing in the rate of real incomes across the whole european spectrum. real incomes are not going anywhere. and that is creating a serious political problem, which is not easy to resolve. >> we are joined by jared bernstein, senior fellow, and former chief economist at economic policy adviser, to vice president biden. he's an msnbc contributor. keir simmo

and wall street spending billions of dollars in lobbying, when the clinton administration, when alan greenspanaid, what a great -- great idea would be to allow these huge ranks to march, bernie sanders fought them and help lead the opposition to the regulation. amy: that is bernie sanders versus other clinton. thomas frank, what this has meant, the kind of issues you have been talking about this book, certainly once i came to the fore this year and how you feel they are going to affect what happens next after the convention? >> look, bernie sanders is completely right. several things leaped out in the clip you played. when he said the business model of wall street is fraud, well, to a certain degree, he is exactly right. one of the things we are going to remember about the obama administration was his complete failure to prosecute wall street executives for a whole long list of, apparently, fraudulent behavior. this is one of the abiding mysteries of our time. what are they do this. even george w. bush got tough with the guys from enron who were his house, his campaign donors, his best friends

and now we are focusing on what it means for your money, and alan greenspan had this to say earlier on cnbc. >> this is the worst period i recall since i have been in public service. there is nothing like it with the crisis of the october 19, 1987 when the dow went by a record percent down, and that is what i thought was the bottom of all potential problems. this has a crow zi effect which is not easy to go away. >> and of course, what greenspan is referring to is the concern that the european project could unravel. he is also worried about the longer term entitlement ss and e productivity and wages, and john n this environment, when you hear the bigger warnings, it is a buying opportunity, and can you take it at face value? >> it would be buying opportunity, and would be right now overseas and not a buying opportunity right here in my mind yet, because we came off of the bottom so quickly. i was looking for and i think that if anybody had dry powder, and they basically said i'm going to wait for the brexit vote, and then commit the capital, they are do not doing it on a down 300 day,

alan greenspan and jim levinson, thenot so long ago headed world bank.he reason is those to have an uncanny ability to eat lunch and we shouldhe same time start it up again. justice sotomayor: i was not dot of that tradition, but i know the justices ask fascinating guests to come join them and everyone's while we get a smaller group of justices together in someone's chambers to meet. ruth, i know i invited it you when we were celebrating the kennedy center honors. and steve has invited people from south africa. i have seen smaller of that type that do go on. >> speaking of lunch, i have been researching the lunch habits of various justices and they've fallen to two paradigms. healthy eaters like louis brandeis, who brought two pieces of whole wheat red with fresh spinach in between. in on the other extreme you have -- a justice who was a gourmand. and winefrench cheeses and his wife would send in large platters of jesus his lunch. so justice ginsburg, where do you fall in that spectrum. how do you sustain yourself during the day. >> for 56 years i was ma

anna: alan greenspan there. joining us now is the director of phantom financial consulting.e start with the big picture. your experience of the bank of england and what you saw, talking about the big picture. hours, over the last 12 expectations coming through in markets about what central banks can do to support the current environment. are we expecting too much? >> from central banks, i think so. what they can do is very limited. monetary policy has come to the end of the road. very is roles of the dice in terms of interest rates, applying the kiwi two different assets whether it be government bonds were corporate bonds and none of those make a great deal of difference to economic outcomes. where we are now with brexit and the impact on sterling, we're in the beginnings of a kind of currency war situation where every currency is trying to be the force. the ones markets are selling first. the race yesterday but others would want to prevail. some coordination to try to management process, but i don't see it having a significant impact. there is a 20%e chance of a rate cut fr

and so did the advisers or around him, people like alan greenspan and william simon and donald rumsfeld and dick cheney, and they believed that the oil crisis was going to bring the united states down. because it was making us vulnerable on the international stage. the oil shortages were a problem more our country because we use so much in the aggregate, but proportionally, the shortage was an even bigger problem for our european and japanese allies who were even more dependent on oil imports. so they were incredibly worried, ford's policymakers, that in their sort of need to secure their own access to oil, that our allies would sort of break off from us. >> we're going to make a quick trip through the ford administration -- >> i'm ready. >> is that all right with you? >> i'm ready to go. >> during the ford years, the energy crisis was forcing a massive expansion -- you tell us this in the book -- of federal government involvement in the economy giving the old democratic liberals another chance to extend the federal government's reach. say just a few words about that, because that's ver

coming up on monday, a conversation in washington with alan it greenspan. good morning.aders want formal leaders -- conversations to begin now. where is france when it comes to brussels. the u.k. opposition party turns on jeremy corbyn. as he fires the foreign secretary. tom: we look ahead for the morning open. convulsions or capitulation? >> a warm welcome to a special edition. bloombergin back at in new york city. we are setting up for monday. are we in for another volatile week? >> is no question about it. before we look at the market, let's look at where we stand right now. in

scarlet: that was former fed chairman alan greenspan earlier on bloomberg. seemingly no one has a real handle on what's going on in the global economy right now. this is how it's playing out in markets. uncertainty reigns and stocks go south. the close of the ftse, dramatic. the biggest two-day drop since august of last year. barclays down by 17 percentage points. cable.d two-day drop for down by over 3% in today's session so far. ♪ london andive from new york city, i'm jonathan ferro. oliver: i'm oliver renick. scarlet: i'm scarlet fu. this is bloomberg markets. let's head over to mark crumpton. a couple of big rulings today from the u.s. supreme court as the justices end their current term. one had to do with abortion and a regulation concerning texas abortion clinics. joins me from the supreme court with the latest. let's begin with that texas case. in favorces ruling 5-3 of the abortion clinics. >> what was at issue were regulations that said abortion clinics have to be essentially surgical centers and have a lot of staffing requirements. the second requ

alan greenspan said he thought this was exceeding the october 1997 market selloff because at least that was a short-term event. he believes brexit is only the tip of the iceberg and is only going to be in his word corrosive for the markets going forward because we don't know what's going to happen next. what do you think? >> i think it's an opportunity. i agree with your other guests. i think you don't buy them here today because markets barely bottom on a friday. they give investors over the weekend to brood about their losses. they usually show up in a monday/tuesday time frame. i agree with your other guests. i think there's an opportunity the next week that as we look at the dow now down 600 points in the last hour. >> and, rick, you know this morning a lot of the talk was about this bounce. it was off the 7% lows and how even these markets were holding up okay. as we slide into the close here and look at the fallout on the ten-year, for example, look at the pop in gold. are these now kind of new paradigms, new ranges that we're going to be dealing with in the months ahead? >> i thi

it used to be whatever alan greenspan said, whatever ben bar nanky said mattered. >> mattered, but they could hardly parse it. >> by the way, that wasn't a bad thing. that was a good thing to keep markets on their toes. now they've lost total control of communications. >> what happens? larry kudlow said he thinks we're in a mild business resechlgts is it the impact of one bad jobs market? >> i think that and a sloppy recession. we've had profits declining. we've had slightly positive there. i do think there's definitely -- you know, there's a question as to whether we can expect more job growth at this level of labor force participation with the economy growing at 2%. it could be a lull. you had no job growth. it wasn't over at that moment. >> i don't think the u.s. is the problem. i think what your viewers should look out for is what the next dominos are to fall. the yen keeps on strengthening. my guess is they do something real stupid. >> you feel like you can say that because you've been to japan. >> more time than you. >> let's get to sue herera. >> hi, kelly. here's what's happenin

alan greenspan has written on this as well.ederal fed governor, a number of prominent economists. already three different noble laureates have endorsed our approach. so i think there is a growing consensus that there needs to be kind of a new regulatory paradigm in banking and in capital markets. and it all surrounds having high levels of private capital to absorb losses so that we don't have systemic events, so we don't have systemic events, so we minimize the opportunities for financial panics. and again, i'm not going to have enough arrogance or hubris to say that if this bill was passed there would never be another financial incident in america. but i think they would be a whole lot less severe and less frequent if we have high levels of private capital. >> if i could follow up on that. how do you respond -- fed chairwoman yellen was asked this question and sort of explained that it's a backstop to the capital measure. and you have a debate that's happening now in terms of reorienting a slew of capital rules in order to rem

and alan greenspan obsessed about it. and he gets up in the morning, in chevy chase in his pjs and he goes to his back and atm and it comes out okay and he goes oh no, i got to take all of that excess money. this is like that there's nothing here. >> you know how the fed thinks, riddle me this, which is the fed is supposed to be apolitical here and particularly apolitical around the grobe. we're supposed to raise or lower rates based on inflation and wage data and pretty much that's it. if everybody goes around the table, and george wins out and convinces them they need to raise rates today, does janet yellen stand up and say even if the economic conditions merit a rate hike, we can't do it because england may vote to leave the eu? they can't put that on the record, can they? >> there's so many reasons why she shouldn't raise rates. but i don't think brexit will have a big impact on fed thinking. >> you don't? >> i think the fed is properly assessing a lousy u.s. economy. as i said, the reason interest rates are low, we'v

listen to what former fed chief alan greenspan told us earlier. >> this is the worst period i recallince i've been in public service. there is nothing like it including the crisis -- remember october 19th, 1987, when the dow went down by a record amount of 23%? that i felt was the bottom of all potential problems. this has a corrosive effect which is not easy to go away. >> let's bring in our own steve liesman. you heard greenspan. what do you think? >> there is no doubt that this was an event that is going to shape the outlook for growth and the federal reserve here. i have a hard time seeing this as different from -- or worse than 1987 and 2008, both of which i lived through. markets are pricing in now some possibility of a rate cut and certainly a fed on extended hold here. morgan stanley among those cutting their outlook for growth. they shaved .3 off growth next year, .6 in 2018. those are big take aways in a economy that doesn't have much to give away. further hikes are off the table for now. others are moving from september to december. here is the way the brexit can affect th