but what has alan greenspan worried?and i ♪i will always love you, i ♪i will always love you ♪i hope life treats you kind ♪and i hope you have all you've dreamed of♪ ♪and i wish you joy and happiness♪ ♪but above all this i wish you love♪ ♪and i will always love you ♪i will always love you, i ♪will always love you ♪i, i will always love you, i...♪ someone is diagnosed with a inblood cancer. light the night brings together survivors and supporters to bring light to the darkness of cancer and to help fund life-saving research. our goal is a world without blood cancers, and we're lighting the path to cures. the discoveries made in blood cancer research have led to break through treatments for many cancers and other serious diseases. help defeat the darkness of cancer! join light the night today. >> i think the system is much safer and much soundser. as i mentioned, we are doing a lot more to try to look for financial stability risks that may not be immediately apparent. would i say we'll never ever be in another financial cr

alan greenspan: if we get it is the question. you can't get growth going so long as entitlement expansion is anywhere near where it's been recently. it's eating up the sources of investment and the sources of growth, and you can't have it both ways. you cannot fund all of the entitlements everybody wants and expect that you are going to get a gdp out of that of 3% or more at an annual rate. the arithmetic doesn't work. maria: that's why they are trying to slow count growth of medicaid involved in this bill right now. don't go anywhere. we have so much more to talk about. we have more with dr. alan greenspan when "wall street week" comes back. >> announcer: fed chair janet yellen says the economy is much safe were. but what has alan greenspan worried? >> i think the system is much safer and much soundser. as i mentioned, we are doing a lot more to try to look for financial stability risks that may not be immediately apparent. would i say we'll never ever be in another financial crisis? probably that would be going too far. but i d

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you know, 20 years ago, alan greenspan was also referred to as the most powerful man in the world ase controlled the big monetary tools he's had. a fiscal tool and a monetary tool and that's how he controlled the economy. i think we are going to look back on that. as the jurassic period of economics. when you go into the big dig era and we are about to entry. three, four, five years from now where there's 50 billion devices on the internet. they internet. they'll preassigned information on economic activity to the block level, this part of the store versus the back of the store. when you look at economic data right now, first of all defined by national boundaries, which is a very crude, the correlations within the boundaries of the country are very mixed. but i could come up with the new data and stands, what you become 10 million people who are almost exactly like me and i could come up with new stimuli that i could use, but i would also be able to do it in real time. one of the biggest innovations in using technology 20 years ago was in new york city, they introduce something calle

this created worker insecurity by design as in fact the phrase growing worker insecurity is alan greenspan's kind of running. the system as if it is head of the fed but when he was testifying to congress and the success of the economy he was running he attributed a large part of it to what he called growing worker insecurity saw as a good thing that's the implication because it keeps wages now it keeps people workers for asking for benefits it keeps inflation low and it breaks you know to keep profits and it makes it very hard to organize and he points out intelligently that this growing worker insecurity is so extreme that even when unemployment is down as it was in the late clinton years still the same conditions apply workers are just afraid unions are being destroyed and this is part of the what was called the great moderation the success by economists' the success of the neo liberal programs which had the effect of that to say but in two thousand and seven before the crash a real. wages were actually lower than they had been in one nine hundred seventy nine when the neo liberal experime

this was this created worker insecurity by design and the phrase growing worker insecurity is alan greenspan's. kind of running but edging the system as head of the fed but when he was testifying to congress on the success of the economy he was running he attributed a large part of it to what he called growing worker insecurity saw as a good thing that's the implication because he keeps wages now. the national weather service in the early virginia has issued a special marine warning for chesapeake bay from north beach to drum point marilyn chalk and river to cambridge maryland in the middle child and river banks and river to booms island merriment ten years sound in the inland waters surrounding bloodsworth island intel six forty five pm at five forty seven pm a strong thunderstorm was located near broome island moving used to twenty knots. hazard wind gusts thirty four knots or greater source radar indicated impact boaters and small craft could be thrown overboard by suddenly higher winds and waves capsizing their. location pack to include truck on creek green road state park drum point james

this juncture and really a changing of the guard for the last thirty years in the culture that alan greenspan started at the fed i welcome anybody who's not an academic ph d. on to the forum see with open arms if we hear about developments in that in that area we're going to bring you on like a display thank you so much for telling us how you fill out this and giving us all this great information daniel de martino both founder of money strong and author of fed up an insider's take on why the federal reserve is bad for america. a man shows up to fix an a.t.m. and winds up completely trapped inside corpus christi texas a contractor was changing the lock to a bank of america room that leads to the back of the a.t.m. he became trapped when you couldn't let himself out of that room because he didn't have a key card on him on top of that he was unable to notify bank employees for help on top of that he didn't have his cell phone on him so then he got creative and suddenly customers began to receive notes from the cash slot begging for help and asking that they call his boss the only problem was tha

these fed chairs are fairly up to send their responses they try to not go too far either way alan greenspan famously said if you think that i've been very clear on the point you've misunderstood me and she was like that to a large extent she got grilled on a couple of things there was a congressman who wanted to know if they would not doing the additional regulations on big banks that at the fed until vice chair was confirmed by the senate vice chair who was nominated just a couple of days ago on monday and so overall it was it was well received she actually testifies tomorrow also before the senate they do the the house financial services committee one day then they do the senate banking committee tomorrow but she was fairly positive as you said she said there may be more rate hikes but not that many rate hikes wink wink smile smile who knows let's look at some of the economic indicators that the fed examines and talks about. the as they make their decisions for thought growth and inflation key data points good but not great you say yeah i mean you know we were we ended up one point six fo

here's what alan greenspan who calls you first rate economist said. quote urgs can't get growth going so long as entitlement expansion is anywhere near where it's been recently. it's eating up the sources of investment and the sources of growth. you can't have it both ways. you cannot fund all of the entitlements everybody wants and expect that you're going to get a g.d.p. out of that of 3% or more at an annual rate. the arithmetic doesn't work. wouldn't you agree that the structure of our welfare programs including obamacare contain disincentives for work? chairman hensarling: brief wednesday, please. chairman yellen: to my mind, the major factor here is an aging population that is putting downward pressure on labor force participation. there are other factors that affect labor force participation as well. but the slow growth that we have and anticipate reflects in part an aging population and slow productivity growth. chairman hensarling: the time of the gentleman has expired. the chair now recognizes the gentlelady from wisconsin, ms. moore, rankin

the most recent was the i are ration aal comment by alan greenspan.ic is saying with respect to how much damage the fed can do to this rally short term. >> if you looked at the fed minutes, they did speak about that, and whether the financials and markets are stable or not. there was concern about the prices being high. but there was a discussion, the fundamentals are there to support this. what's the long-term outlook for the economy in particular. charles: why are they so unconcerned about inflationary numbers? why do they think it's a little bit something here, something there, like cheap cell phone prices and cable bills? >> there are some members of the fed who are concerned about this. they are not convinced this slow-down we have seen is not a temporary thing. they think it could be a longer-term thing. charles: when it comes to the violent words, why does the left always seem to have a double standard. what is it that maxine waters has against dr. ben carson? charles: she got a standing ovation at the mtv music awards, representative maxine wa

the former chair alan greenspan used to say all the time that the laws of supply and demand have notunemployment rate only dropped through the whole unemployment level in a few months, and it is not that they are below the level that you were supposed to get significant pressure on inflation. we are getting 1.5% per year in employment. it is not a blooming number, but labor force growth is 1% of that. it is straightforward that the unemployment group is going forward. you will see more pressure. wages started to accelerate already. i think the fed is right, but they are waiting to see what is next. even, they can pretty much repeat their language from last time when they stated inflation has come down recently, running below 2%, and they expect it to move up to the 2% goal. they are monitoring inflation closely. it works again this time. haidi: you sound more optimistic than a lot of people have been, certainly in the fixed income space. justifyally hard to what has become a consistent set going into anytime soon with inflationary pressures. haidi: you would not expect -- jim: you wo

you wrote alan greenspan's rise to the top is one of the great scams of our time. >> guest: alan greenspan is a character that i had only planned on doing a small section on him because he was so important to the history of the modern financial services industry. his attitude he was an accolade and he was fascinating to me as a character because he was very famous for being this great predictor of economic events. i went back to look he was wrong about almost everything he predicted. like a lot of famous hangers on to hang around rock bands or other celebrities he was famous for being someone who is good at telling politicians what they wanted to hear. and the gift of being the president whisper was what allowed him to be there for so long. he really wasn't so great of an economist but he was a very skilled politician. >> and the divide came out in 2014. in the end, the one bank to get thrown on the dock was not a wall street firm, but one houston the opposite direction. a little to the north, tiny family-owned community bank in chinatown. >> guest: there's a movie out right now called aba

coming up, former federal reserve chairman alan greenspan my special guest.k of big swings as the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple

saids what alan greenspan "you cannot get growth going so long as entitlement expansion is where it has been recently. it is eating up investment and the sources of growth and you cannot have it both ways. you cannot fund all the entitlements everyone wants and expect you will get a gdp out of that of the percent or more at an annual rate -- 3% or more at an annual rate. the arithmetic doesn't work or ." chair yellen: to my mind, the major factor here is an aging population thing downward pressure on labor force participation -- putting downward pressure on labor force participation. there are other factors as well. have andgrowth we anticipate reflect an aging population. >> the chair now recognizes the gentlelady from wisconsin. thank you, mr. chairman. let me try to pursue the he was raising with you with regard to paying people not to work. he gave medicaid as an example. two thirds of the people who use medicaid are in nursing homes and they are unable to work. just want to point that out. i also want to pursue a question about rules-based policy that they o fomc had put out there.

coming up, former federal reserve chairman alan greenspan my special guest.nes. a week of big swings as the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple

that something alan greenspan talked about in the 1990's, when you went up having high productivity,a federal reserve victims have to do much for number of years. >> great stuff. i were jersey, thank you. -- bitcoin has gotten clobbered his lust few days along with other digital currency. we will look at the risk threatening best -- this is bloomberg. ♪ joe: "what'd you miss?" bitcoin could had for a split. minors and developers -- have differences about what it could be comic it could result of two different versions of the crypto currency. i talked to -- about what is driving this. though this could be a game -- high stakes game of chicken. this is an ideological divide. can we see two forms a block built?n which bitcoin is it all comes down to the size of transactions you can do on a daily basis. savard has been limited post-tax that have happened the bitcoin. -- we have a thousand transactions a day all the way it350,000 transactions a day payments areg getting too costly as well. both of these two camps want to increase the daily size of transactions -- the question is how you d

paul volcker and alan greenspan are two. they were professional economists. they knew their stuff.e very familiar with federal reserve and monetary policy and other aspect of the federal reserve, and a both made very good fed chairmen. was fabulous. greenspan great on monetary policy but not too good on regulatory policy. are worriedeople about that going forward with the trump administration. gary cohn is a smart guy, a market guy. he has a view of the fed and a monetary policy, i present, that is dominant on markets, which is a different view from, say, the ben bernanke-janet yellen view, which comes more from the macroeconomic side. does not think the first or second digit of the unemployment -- one take in the and of limit rate on a friday is a cataclysmic event that you should go crazy about. scarlet: michael mckee will stick with us from the fed. we are watching the white house press briefing. secretary sarah huckabee sanders speaking, restating that president trump remains disappointed in his attorney general jeff sessions, adding that the president has likely not spoken wit

also on the ground, wearing glasses, is alan greenspan. he was fresh from the inner circles of ayn rand. he was the chair of the council of economic advisers. henry kissinger is between them. he was an important person. thatd rumsfeld was at point forward's -- ford's chief of staff. mayor beam, working with the governor of new york state was to go and seek additional aid from washington dc. in recent years, the federal government had provided financial assistance for certain corporations such as the defense contractor, lockheed, when they were facing problems. perhaps they reckoned it would work for new york as well. the mayor and kerry did not find a friendly office -- audience. donald rumsfeld was not induced, he said it would be a disaster. first, new york would delay cleaning up their mess, and second, the president -- in my view the review -- request is outrageous. waresreenspan said their no cuts for personal responsibility. must do right thing 24 hours, bite bullet. what the ford administration wanted to see from the city was a prog

he was highly critical of alan gre greenspan at the time when the fed was exalted. jim was the only senator to vote against greenspan's success ore, ben bernanke. in addition jim was vocal in his criticism of the sport he loved so much, baseball. he spared neither management for players. he called for a revitalized commissioner's office and succeeded in narrowing baseball's anti-trust exemption, he was an early proponent of drug testing. his views on these issues did little to endear him to the national pastime's powers that be. but once again, jim went his own way. perhaps the past kmabest example extension over $10 billion in unemployment insurance. not long before the great fan dpar the senate passed a rule that ensured that new spending had to be paid had to be paid for. the unemployment insurance measure was exceedingly popular but it was not offset, in other words, not paid for. a unanimous consent request was made on the measure and jim objected. in the senate there is much truth to the axiom that the chamber moves in two ways. by unanimous consent, or by exh

here's what alan greenspan who calls you a first rate economist say, you can't get growth where it isit's eating up the investment of sources and growth you can't have it both ways. you can't fund all the entitlements everybody wants and expect to get a gdp out of that. wouldn't you agree that the structure of our welfare programings would entail that from work. >> brief answer, please. >> to my mind it's an aging population that's putting downward pressure on the labor force participation. there are other factors as well, but the slow growth that we have and anticipate reflects in part an aging population and slow productivity growth. >> the chair recognizes general lady from wisconsin on the monetary policy and trade subcommittee. >> thank you so much, mr. chairman let me sort of pursue the question, madam chair, that mr. barr was raising with you with regard to peaing people not to work and he gave as an example medicaid i want to mention two-thirds of the people who use medicaid are like in nursing homes and they're unable to work i just want to point that out. ial want to pursue

coming up, former federal reserve chairman alan greenspan my special guest. the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple

alan greenspan preferred the deflator.y. rising one point 6%, down from 1.7% in may, and the same trend core cpi, same 63.age, be tv whichever one you choose, those numbers have rolled over and the question is whether this rollover is done and they will start turning around. mobile phone prices may be one time, lower drug prices. this is a simple bar chart our bond team put together and it shows you core consumer good prices. months corest 16 consumer good prices have fallen. if i want to show you more charts, i will stop now, year-over-year court services have peaked and have started to come off. that is important to the fed because the services are such an important part of the economy. david: we have to leave it there. we will be talking about thailand now. angie: are we going? david: we should. angie: we do have better lighting here. david: how can you compare to that? a rare but lucrative bright spot in thailand, change of strategy when it comes to tourism in the country. this is bloomberg. ♪ ♪ angie: this is "bloombe

i've been quoting the words of the former fed chair alan greenspan.aws ofd to say the supply and demand have not been repealed. i think that applies in this context. joanathan: this is the group of g-20 leaders. other one is right here in the united states. we want to cross back over to london. he spent a few minutes talking about payroll. i wonder whether the jobs report has diminished importance for the federal reserve. maybe they are looking at financial markets? make don't expect it to much of a difference. we think it is driven partly by what happening in europe. it is more important what we will see from the cpi. finally, we got to think of the broad context. they have worried about keeping real interest rates low. think back to 2004, that affected the mortgage level. we don't want to have this environment. we spent the whole we talking about reining in financial risk, now we talk about risk-free asset. about high risk tolerance, you're not talking about treasuries. is whatral reserve happening with the equity market. why was the conversation ab

sort of, again, one person's view of the world and that person, whether it is ben bernanke or alan greenspanpervasive view of the fed, i think that is a mistaken way to think about what should go on. i think randy will be his own person but he also knows how to work with other people and get things done that he thinks are good. i am kind of relieved and pleased with this nomination. this up, ito wrap seems like a third thing bubbling up at the fed is financial stability. potential inflated asset prices. do you have a read on where quarles stands on that, should that be an emerging third mandate? charles: no i don't think it should be an emerging mandate. the fed has enough mandates that the people have imposed on it without adding get another one. -- yet another one. my suspicion would be that he would be skeptical of layering yet another mandate on fed's monetary policy actions. mostly financial stability should be done through regulators, not through monetary policy. unless of course it is monetary policy causing the financial instability, which can be the case sometimes. skeptical ofuld b

it is a close line that links alan greenspan, ben bernanke and janet yellen and hs they break the linke uncharted territory -- and i believe break the link a goal into what i believe uncharted territory. >> what we know about gary cohn and monetary policy? bruce kasman: he does not have much experience. he is experienced in financial markets and as a manager but does not have experience in this space. we do not know how he will perform, recognizing the fed is not a one-man show. committee and a lot of other people who are well trained and experienced in study monetary policy. tom: bruce kasman with us. libbyl come back with cantrill. tomorrow mario at 6:00 a.m. this is bloomberg. stay with us. ♪ tom: too much excitement. guy johnson in with francine lacqua -- in for francine lacqua. mr. barnier speaking to the eu and we will talk about that later. bruce kasman. pimcocantrill at straddles the line between the chaos and cacophony of her washington and policy. let's talk about that. after what we have seen which ,as unimaginable, four days ago what we have seen in the last 24 hours, the m

neal: well, they were that far off with the bush tax cuts in 2001 and 2003 and alan greenspan was certainly off. and we had the slowest growth since hoover was president based on $2.3 trillion worth of tax cuts. so this is analysis. it's an economic forecast. it's not an algorithm where you pick up the computer, you push a button and all of a sudden you get a score. so i'm in opposition to this amendment because they play a vital role every single day even when they are not entirely accurate in keeping a scorecard. members and staff on both sides, particularly at the ways and means committee, rely on their hardworking and nonpartisan analysis for what they do every day. i have never in 29 years in this house said to a member of c.b.o., are you a republican or are you a democrat? when we demean professional achievement from economists who try and strive every single day to come up with an accurate forecast, we do this institution no good. we should have a high regard for what these people do every single day, and let me say this, by the way, more accurate than the office of management and bu

remember when alan greenspan said we would never see this level of rates again?you. paul mortimer-lee. this is bloomberg. ♪ ♪ jonathan: alphabet earnings were good, but not good enough. senators prepared to roll the dice on health care. the president says there was enough talk, now is the time for action. our survey says wait until september for the plan to unwind the balance sheet. this is bloomberg daybreak. i am jonathan ferro alongside david westin. abouts are positive, up four points on the s&p 500. the euro is stronger as german business confidence rolls higher for the sixth straight month. treasuries are on offer. year.our yield on a 10 alix: german confidence not really reflected in stocks.

these events tip equities, tip the economy before in 19990, '91, with the gulf war, at the time alan greenspan was warning of a possible recession. that event hurt confidence and the economy enough has it did contribute to a recession and the downturn in equities this is something we have to watch incredibly carefully while the economy today is not vulnerable, it is not growing so strongly that there's no risk. to your point on valuations, the equity market is not crowded but the valuations are high this could lead to some profit taking it is scary. >> it seems -- this just seems different. >> it's not easy to resolve either >> with putin, you have a guy maybe he's evil, kgb, but he's not going to do something -- who knows. it almost seems different when you talk about north korea we had evelyn farkas on on monday, she still thought russia was the biggest threat trump is going over to see putin. they can talk about north korea almost as being aligned against what could be really destabilizing globally with north korea. i don't know whether russia is our biggest threat >> right a military respo

you know, my dad was counsil yair for alan greenspan so that's how it works. cohn go to the fed to me that's an escape path for him and that means that goldman has given up on the trump administration >> but would that be good for the fed? >> i think the fed needs to have more noneconomists in its leadership i'm one of those who believes that there's nothing wrong with having bankers, people from industry, on the fed board we have been dominated by academic economists and they've gotten it wrong. low interest rates, quantitative easing are deflationary. so of course we haven't hit our inflation targets. but nobody at the fed understands that they sit there wringing their hands about selling their mortgage securities. we're down 30% on volume in the fannie freddie market this year. you could sell it all andrew and nothing would happen in fact i'm tell calling for the 10-year to go back to two, okay? so rates aren't going up and it's because the leadership of the fed doesn't understand that the playbook has changed. markets change the demographics of our country

. >> i'll tell you that -- and people, you know, alan greenspan went from, i don't know where he is nowhero and then people, you know, blame him for certain things but, like a rorschach -- >> no -- i'm not going to say whether he's a hero or -- but interest rates have gone down. >> yeah, but he's done -- >> and cap-ex has not gone up. >> he's done work where he has shown that the more capital of a society that is earmarked for the public, for government spending, that that takes away from what is spent in the private sector on capital -- >> on usafacts.org, you can put the government -- you can take a look at what hospitals to government cap-ex and private cap-ex ten you can take a look at that. and rather than blah, blah, blah, i'm not meaning you -- >> yeah you are. >> but blah, blah, blah, i would love to, for you sometime, just assemble the picture that shows what's going on with interest rates, capital expense, government, nongovernment, r&d, and what -- >> steve, when you're spending money, in a part of society that usually has no accountability, and doesn't have anyone, you know,