quote a i documentthe book where experts on the left, the right, theno ests, nobel prize winners, alan greenspan, ben bernanke,ra leading demc and republica economists, send him a letter s'ting, d do this. this will not work. and, ofourse, he does it, and calls in the steel executives. even john kelly, the chief of staff, didn't know there was going to be this meeting. and trump just does it. under the law, he has that authority. some people think he may be stretching it. but now we are in the world of these trade wars which he says he thinks he can win. wow. danger, danger. i mean, the fright that people feel. there's one point where tom bossert, his cybersecurityo chief --ne has talked about this. but he goes to see trump. he's going to go on television on a sunday show and trump says, tell them i'm putting tariffs up to $500 billion on china. now, this was four or five months ago. of course, that's exactly where he's heading. an the president's so so pumped up about this, he says, you know, boy, it's too bad it's a sunday show because if it were monday and the markets were open, you'd tank th

unemployment rate it's going to bust max bubbles bust right i mean this is she's just repeating what alan greenspan kind of advantage during his reign at the fed the so-called greenspan put that markets and then we go down the fed's it is it's a vain and make liquidity available they have now a sponsibility unlike paul volcker who took a much different approach to the job federal reserve chairman michel block hopelessly can stay around for another side we got to go for now thanks for being on cause report. but if you're a vegan that's all stare out for one more fantastic and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest miche should look talked up com if you want to reach us on twitter it's kaiser report and time by. the merck years so too. did.

five who backed the savings and loan ripoff by charles keating and pressured alan greenspan not the prosecute not to are regulate the savings and loans you have very clearly obama on the side of the creditors and. the. difference between and where he is today is the creditors normally use political assassination of almost every leading her advocate all the way from. russia brothers in rome to julius caesar who took the populist out protester say well today the creditor classing it as they are and show way and argentina and third row countries it hasn't done there in the united states yet because there really isn't any discussion either in the religious community or on the lefte pressure realizing that the dynamic that's making people poor is primarily financial it's debt it's the financial systems. just dysfunctional relationship. not the old fashion the only industrialists are wearing the workers well of course where persians exploit the workers but now they move to peru. or and workers again it's largely a financial driven austerity program. already so you know jesus a lot of buildout would

that he and alan greenspan had invented a new way of thinking about economics, that there would not beld be managed. and it turns out whether it is the south sea bubble or the tulip craze or the rail disasters or stock in the 18505, the 1929 crash, capitalism has built into it, it has many great things, but buildt into it is, once in a while you get over excitement and you can get a crash and get chaos. yes, that's right, and i think we need to reflect on these anniversaries to reflect and analyse our world. the main question should be, how do we reinforce international cooperation? because we are interconnected but we are just witnessing a disruption of international solidarity at a european level, an american level, with other superpowers, and we are not thinking about the consequences if something goes wrong. thank you for now for that. a final thought on today's programme. if you had two russian friends who had just 48 hours to spend in the uk, what would you put on their must—see list? the tower of london, buckingham palace, perhaps edinburgh's royal mile, oxford or cambridge? the

paul volcker era the federal reserve bank starting with alan greenspan recessions have been outlawed the central banks have printed all the money they need to keep banks afloat even though it destroys the economy destroy social cohesion they think will see quantitative easing for a q.b. for if the bond market sells off a little bit more if the stock market sells off even two or three percent while the fed just step in and start printing money as they have now for twenty five years i do think you'll see a q e four but not at those premiers that you outline a think you'll see a q e four when you have let's say a ten or maybe even twenty percent correction in the stock market and perhaps a very big inverted yield curve and that's both plus those i don't think they'll step in. you know two percent or three percent correction in the stock market although they could i doubt that's where they would make that move i think they would wait until things get there usually actually follow what's happening in the marketplace they really don't lead although they give the atmosphere of the projectio

unemployment rate it's going to bust max bubbles bust right i mean this is she's just repeating what alan greenspan kind of advantage during his reign at the fed the so-called greenspan put that market should never go down the fed's it is it's a vain and make liquidity available they have now a sponsibility unlike paul volcker who took a much different approach to the job federal reserve chairman michel block hopelessly can stay around for an aside but we got to go for now thanks for being on cars report. let me beg on mats all stare out for one more up fantastic and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guests mish should look oh miss talked up if you want to reach us on twitter it's kaiser report and next time. what politicians do something to. put themselves on the line. to get accepted or rejected. so when you want to be president i'm sure. some want to be. the two going to be close to see what the floor three of them or ten people. interested always in the waters of. the city. when you. look at that is to present a bo

. >> alan greenspan is writing a book that will be coming out this fall about american capitalism.about the rub with creative destruction, between the creative and the destruction. and if you take -- if you focus too much on the destruction, then you start actually getting in the way of the creativity that has made this country what it is. where do you come down on where america balances these moving forward? >> it's a good question. i think you got out of balance. you don't want an economy that guarantees everybody total economic security. you want to make sure new companies come along with new ideas and new ways of doing things with new products and able to knock out the old company. that involved quite a bit of pain and dislocation. just to give you, you know, an example, yes, you want to give your top employees good compensation and their executives so they have the ability to innovate, to make hard decisions, to take risks. but if you put all the gains from productivity on the top of the ladder, then the workers have no incentive to work hard and be loyal and be engaged in the

unemployment rate it's going to bust max bubbles bust right i mean this is she's just repeating what alan greenspan kind of advantage during his reign at the fed the so-called greenspan put that market should never go down the fed should always it's a vain and make liquidity available they have now a sponsibility unlike paul volcker who took a much different approach to the job federal reserve chairman michel block hopelessly can stay around for no side we got to go for now thanks for being on cause report. those are really very gonna mess all stare out for one more up fantastic and that's going to do it for this edition of the kaiser report with maybe next kaiser and stacy herbert like to thank our guest mish should look oh miss talked up if you want to reach us on twitter it's kaiser report and. it's hard to imagine after the war a nazi doctor was still active rich in the nineteen seventies crittle had as the chair of its board a man convicted of mass murder and slavery at auschwitz the german company developed. a drug that was promoted as completely safe even during pregnancy it turned out to ha

. >> powell ihas been paying a lot of price to alan greenspan. spells out as well anything to have to be slower and behind the curve. is going to be a lot more methodical and he will be less reluctant to get everybody, the dot plots, too aggressively. rishaad: is there any juice in the bond market in the u.s. beyond looking at treasuries? >> at the moment, one of our top inks around the world is not the u.s. but it is in asia. and we are looking at chinese how you. dramatic selloff in chinese property in particular. our spreads are around 650 basis points. when you compare that to u.s., 350, we love the property sector. we all know that the demand a self-serving supply because prices are going up. we think this is a great switching opportunity out of u.s. high-yield and into chinese. in particular, property but. we have never seen the property market this good as we've seen in the last 10 years. rishaad: that's what we're talking about. dave: the china high-yield bond. showing good performance. rishaad: thanks very much, always a pleasure. from u

alan greenspan was given a knighthood by the queen of england because he talked about how fabulous these things were in 2006. nobody wanted to hear it. host: for those that did not have the expertise that you have, what specifically was lehman brothers doing? guest: lehman brothers got into trouble for a bunch of things. one of the things was just investing incredible amounts of money and paying very high prices for commercial real estate. there was a huge commercial real estate bubble. lehman was a little bit involved, other companies more so. when you get a home mortgage, maybe you think the company sits there for 30 years and collects your monthly payment. today, that is not true. they take that mortgage and sell it to an investment bank that takes your mortgage and hundreds of them and puts them in a package. they create a security out of that package. they sell that security to investors. let's say they had 1000 investors in this package. each investor owns 1000th of each of those homes in that package. that is a way for investors to get 1/1000th of your monthly check. in some numbe

. >> after alan greenspan left office, he was interviewed on "60 minutes," he said it out right, if peopleerstand what i'm talking about, i'm not doing my job. trish: what do you think, gary? >> my head would explode every time i would read anything and i would say einstein and stephen hawking couldn't figure what the hell they're talking about. i'm reading paragraph what the heck is this. tell us what you think. do it in layman's terms. so we have better understanding. enough of this stuff. oh he said is last month and month before he said that. i like you got to be kidding me, we're parsing is and that. not a necessity. tell us what you think. tell us where you think it is going. we know you don't have a crystal ball, things could change, go to sleep. trish: i'm all for that. let me turn to another topic because we will i think get some sense how the fed is thinking about tariffs and trade. do you think that -- forgive me. he is there right now. let's listen in. >> good afternoon, everyone. thanks for being here. i am going to start with an overview of how my colleagues and i see the eco

in thee to be around 1990's to understand who alan greenspan was. the question and the market will debate this is how much of a maestro is jay powell. he has decided to go for the eighth rate hike in this cycle since 2015. look at the backdrop to which he has done it. these are the financial conditions, stocks, bonds, and money markets. you're looking at financial conditions being the latest and most accommodative since 2007. they are raising rates, but they are doing it into the backdrop of easy money. where is the neutral rate? that is the question. the equity markets managed to resurrect themselves. nejra: a little bit. we are flat on s&p and dow futures. nothing too exciting happening. we have an exciting interview to look forward to. manus: we're going to talk about markets, about the recent changes in this institution. sergio ermotti will join me. 7:00 a.m. 7:15 a.m., i should say. let's get your bloomberg first word news. the u.s. federal reserve has raised interest rates for the third time this year and singled that more hikes will come. jer

accelerated rate and risk a recession inflation is accelerating beyond the 2% limit and he talked about alan greenspane 1990s. he went against conventional thinking and he correctly sensed that new economy productivity would keep inflation low. >> does that dovishness cause you to think twice about three interest rate hikes in 2019? >> i think there is decision-making where they move the dots lower we will see how that goes. if that does happen we think risk assets will make a strong bounceback especially in emerging markets. >> how big of a threat is the fed to what it does in what's going on in the markets right now? >> as we are all sort of saying, i think that right now the economy is strong. business sentiment is at an all-time high. household sent the high unemployment at an all-time low. the economy is strong and growing. i think that the fed so far has been and has indicated that it will continue to be accommodating. so although these hikes are the most we have seen in about a decade, they are -- they do seem to be adom dating and the market continues to present opportunities in risk assets to

i am going to go back to the market strategist, alan greenspan.that a good stock market benefits and economy. uproar, is that true that this bull market creates a confidence that feeds on itself? peter: not only does it create confidence and household and , but theconfidence most important channel is household wealth. household wealth to income ratio is at new highs. tom: we have got glenn hubbard coming up later. i want to talk to him about supply-side theory. does it work? .udlow says yes t peter: the congressional budget office has longer-term debt projections. those numbers do look troublesome as you go out the next 10 to 20 years. the baby boom generation is going to put pressure on spending. we're going to have to raise the revenue shared to pay that. we have challenges ahead on that side. peter:, is there a danger that the fed will not be able to hike as much as they want to in the next eight months? peter: it would be a surprise to me given the momentum we see in the economy, the labor market. there are risks on the horizon. should trade c

he was patient, he refer today alan greenspan being patient.ll take meeting to meeting, he will not do too much so i don't get any sense to worry, even if it's below 4%, does not see overheating because inflation has not come up yet. as long as inflation is in check around 2%, i think they will be incline to let it run a little bit longer. dagen: matt, thank you so much, coming up president trump taking aim at his own attorney general, what he's saying now about jeff sessions. let's talk about a terrifying commute, the new york city flood rat is going viral. [laughter] jardiance asked: when it comes to managing your type 2 diabetes, what matters to you? step up to the stage here. feeling good about that? let's see- most of you say lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit for adults who have type 2 diabetes and heart dis

maria:al alan greenspan used to look at the stock market as an important indicator in terms of the wealthations of the tech companies. is this something that you take into account when looking at monetary policy? >> i think conventional wisdom is that if market goes up by $100, consumption -- and on a sustained basis, you'll get about $5 in consumption spending. it does have an effect on consumption. maria: there is a narrative that while things are going really well right now, over the next year or two things will slow down quite a bit. do you buy into that? we spoke with your colleague robert kaplan from dallas who said look, we're talking about a 3% growth number for 2018. when you look out to 2020, you're talking about all the way down to 1.9%. how do you get there? >> yeah, i think the projections are that the economy's going to slow but -- i think that's the right thing to base policy on, that that should be how you plan and then you hope for the best. you hope that productivity will improve in the u.s. economy and you'll get faster growth. that would be great news. if productivity

we're doing for the next 18 months it's not a bad situation >> it's like a throw back to the alan greenspanays. we'll see how things are doing we have these forecast cls s whe didn't have the greenspan days, but they're concerned. the worry is that we never had this unemployment rate falling towards 3% they're worried. they're scared they wake up one day and say that's generated inflation. we didn't see that coming. >> more people are working >> the market was fine at 3:00 it was up 100 points then it gave up 100, went down another 100. so initially the market was happy because powell removed accommodative. during the press conference he said that didn't mean that we're done, but -- >> he said what would make you raise rates more quickly unexpected inflation >> he said he didn't expect inflation, but powell said the removal of the word doesn't signal a change in the path towards normalizing monetary policy which includes rates in 2019 another one this year and then -- >> the stuff he says sounds so logical and commonsense, i don't understand why the market reacts like this. >> still it did

alan greenspan was given a knighthood by the queen of england because he talked about how feckless thesehings were in 2006 -- fabulous these things were in 2006. nobody wanted to hear it. host: for those that did not have the expertise you did, what was lehman brothers doing? guest: lehman brothers got into trouble for a bunch of things. one of the things was just investing incredible amounts of high and paying very prices for commercial real estate. there was a huge commercial real estate bubble. lehman was a little bit involved, other companies more so. when you get a home mortgage, maybe you think the company sits there for 30 years and collects your monthly payment. today, that is not true. they take that mortgage and sell bank thatnvestment takes your mortgage and hundreds of them and puts them in a package. they create a security out of that package. they sell that security to investors. let's say they had 1000 investors in this package. owns 1000th of each of those homes in that package. that is a way for investors to 000th of your monthly check. in some number of years you get yo

i look at it from a securities industry perspective and think to where, you know, alan greenspan was constantly asked to raise margin levels, limit leverage, when the securities market appeared to be too high. he declined to do that. said, if there is a collateral, that someone feels is good clad clathral for lending, the -- collateral for lending, the money will come in from other sources and you really cannot make a difference, you can't make a determination on how much leverage is too much leverage without making a determination on what's the actual value of the asset. and it's the market that's going to determine that ultimately. i do think we've learned some things in hindsight about the peculiarities of the housing market. anyway, here's the question. i took your remarks earlier in the day to be consistent with my understanding which is the fed was getting information that was not undulyy alarming as so the state of the market, given the fact there was an understanding that in a stable market, if there's a problem with the loan, the collateral will be sold, no big problem. but

i worked with dick allen, and alan, who became our big financial guy -- what was his name? matt: greenspan? helen: who? matt: greenspan? helen: yeah, greenspan, doing that. so -- now, this is the important part for women. after nixon was elected, i was called by ed luchenbach, who owned a steamship line, and was overting these ships all the world, but he was on the transition team for nixon. and i had known ed before. now, this date he called me, was february the 4th of 1969. "helen, how would you like to be maritime administrator?" i said, that is what i want. he said, you will have to get the labor unions with you. i said, that's not a problem. now, i said that because just the night before, i had had a dinner in new york with all of the labor union leaders. all of the steamship, -- steamship presidents, and all of the shipyard people saying , you guys have got to work together or this will go to hell. so i worked. and jesse calhoun of the marine engineers said he would support me. joe curran, head of the national maritime union, said he would support me. lungrin from the west coast said