what did ben bernanke say that causes investors to worry?oining us from dc, peter barnes, a temporary downturn in the market, peter? >> that's right, david and liz. ben bernanke says the fiscal cliff poses a risk to the recovery, and if not fixed, it causes a recession. it says the threat of the fiscal cliff is hurting the economy because of the uncertainty created for consumers and businesses, and they have turned cautious with spending and investment, and as he swung a big stick today, whacking politicians for not getting a deal yet on the fiscal cliff, ben bernanke held out a carrot for them too. >> cooperation and creativity to deliver fiscal clarity, a plan to resolve the fiscal issues without harms recovery could help make the new year a very good one for the american economy. >> now, of course, ben bernanke says they are ready to help the company suggesting quantitative easing is an option, maybe making qe3 bigger, but ben bernanke said in the worst case scenario with the economy falling off the fiscal cliff, quote, "i don't think the

risk includes possible loss of principal. , ben bernanke falo , ben bernanke falling in further c, bryldagen: j. p. morgan was in dinpo imus and called i j [talking over each other] -- is not funny now. h cheryl: i am cheryl casone. ben bernanke's latestp.ss ksment fiscal cliff speaking ing.tta, o we expected to begin in 15 minuing pay li. to do for the markets and t afford to miss. cheryl: i, mgar -pshkardtaak3 release. lateskiing.leils on shrnalu t3o oivisions that resulted in releasing its albums on iitungs. hour, stocks every 15 minutes, veralo markets are flat despite the hp industrials are in positive the nasdaq and s&p gradualoypfo strength. keep your eyes open. we were up 27 points. that until the all -- i, sidylso rallav the s. at the tech had $8.8 billion. dennis: thank you. taopfo cf1 o that had a ben bernanke's na f, m i ainuing isi to his colleague's calls to rein an rein in the fed? rein in the fed? >> i don'tp.n impartial and not fooled by a dennis: ben bernanke is ch3gtao cf1e n do the twist ball is there anything ben bernanke %an clyl, enning.tmc% ce canetty clyl. numbe

that is where ben bernanke's ideas were misplaced.lookack in history and see that was something that didn't work out. gerri: he is a historian. you would think he could figure it out. thanks for coming on tonight. a pleasure having you on the show. come back soon. we will be right back with my $0.02 more and the answer to the question of the day, where are you find a better deal? in store oon line? @a gerri: is officially the holiday shopping season, so where are you finding a better deal? in store or on line? this is what you are posting on my facebook page. fighting the croats traffic and crowds takes its toll. i prefer the comfort of my home to have a huge variety of goods at my fingertips. bernadette's says what is better than getting a great price with free shipping and you didn't have to ave your easy chair? i can relate to that. we ask on gerri willis.com, 90% said a story, 81% said online. steve wright's the reality is we no longer depend on true american patriots to overcome the masses of those who will want to hand out. in t

that is where ben bernanke's ideas were misplaced.look back in history and see that was something that didn't work out. gerri: he is a historian. you would think he could figure it out. thanks for coming on tonight. a pleasure having you on the show. come back soon. we will be right back with my $0.02 more and the answer to the question of the day, where are you find a better deal? in store or on line? can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. of green giant vegetables it's easy to eat like a giant... ♪ and feel like a green giant. ♪ ho ho ho ♪ green giant i look up to a lot of the older heads, you know, the innovators, the heads of the art movements of the past. they kept it really edgy, and, like, a lot of the latin american muralists and the latin american artists

that is where ben bernanke's ideas were misplaced.l look back in history and see that was something that didn't work out. gerri: he is a historian. you would think he could figure it out. thanks for coming on tonight a pleasure having you on the show. come back soon. we will be right back with my $0.02 more and the answer to the question of the day,here are you find a better deal? in store or on line? can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. gerri: is officially the holiday shopping season, so where are you finding a better deal? in store or on line? this is what you are posting on my facebook page. fiting the croats traffic and crowds takes its toll. i prefer the comfort of my home to have a huge variety of goods at my fingertips. bernadette's says what is better t

that is where ben bernanke's ideas were misplaced.ou will look back in history and see that was something that didn't work out. gerri: he is a historian. you would think he could figure it out. thanks for coming on tonight. a pleasure having you on the show. come back soon. we will be right back with my $0.02 more and the answer to the question of e day, where are you find a better deal? in store or on line? ♪ remember when ♪ ♪ the sound of little feet was music ♪ ♪ we danced to week to week ♪ brought back the love ♪ we found trust ♪ vowed we'd never give it up ♪ ♪ remember when ♪ ♪ remember when ♪ we said when we turned gray ♪ ♪ when the children ♪ grow up and move away ♪ we won't be sad ♪ we'll be glad ♪ for all the life we've had ♪ remember when gerri: is officially the holiday shopping season, so where are you finding a better deal? in store or on line? this is what you are posting on my facebook page. fighting the croats traffic and crowds takes its toll. i prefer the comfort of my home to have a huge variety of goods at my finge

i don't think there's any new information in what ben bernanke said.f you say things that imply a weak economy, the market will sell off every time you say it. the market did come back. i question both the guests' opinions. i think the fiscal cliff is important because a lot of it is self-inflicted, like the e is questions trags and defense cuts and jobs on that side. a lot of the issues like payroll taxes. social security lives hands to mouth. that contribution really isn't a tax anybody should cut. so i guess what i'm getting at is the reality of ben bernanke's statement isn't something new. whether you address the fiscal cliff or not, what we're left with afterwards is no party either. >> good point. back here now with gordon. what an end of day today. what did you see in terms of money flows? >> it's a holiday week, maria. we're just going to have to accept there's not going to be much going on here today. just like everybody's been talking about, it is about the fiscal cliff. this isn't a y2k event. we're not talking about the date will come and i

federal reserve chairman ben bernanke warns congress to avoid the fiscal cliff, saying even the federal reserve doesn't have the tools to deal with the consequences. >> tom: i'm tom hudson. this man has many lawmakers pledging never to vote for higher taxes. find out what grover norquist thinks will happen with the fiscal cliff. >> susie: and hewlett packard stuns investors with news of an $9 billion mistake. >> tom: that and more tonight on nbr! >> susie: federal reserve chairman ben bernanke came to new york city today to send a tough message back to washington-- get your act together. he urged lawmakers and the white house to reach a quick deal to avoid the fiscal cliff, saying it might mean next year could be "a very good one for the economy." ben bernanke didn't endorse any specific tax or spending policies to solve the fiscal cliff, but he urged lawmakers to think creatively. he said an agreement on ways to reduce long-term federal budget deficits could remove road blocks to growth. on the other hand, going over the cliff might mean a recession. on top of that, worries about a dea

ben bernanke has strong words for lawmakers and the president fixing the fiscal cliff now or else. details next. i always wait until the last minute. can i still ship a gift in time r christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zerheartbur gerri: fed chief ben bernanke gettingiving a big speech in new york city, but it is what he said after the speech getting all the attention. next. gerri: federal reserve chairman ben bernanke speaking today at the new york economic club in new york city, and his message to lawwakers in washington, fix the fiscal cliff and don't kick the can down the road. the commons the fed chief has everybody talking. john, always great to see you. i want you

all right, steve, we have got the ben bernanke stuff. i want to get to that. lacher's comments not getting a lot of attention on a very heavy market day. what do you make of them? a little of this going on at the federal veer? i pound my fists together? >> we know this going on at the federal reserves to use your exact metaphor there, brian. what is interesting and perhaps up precedented about this is a fed official going outside the fed to try to went argument. let me go back and give you the tale of the tape here. lacher has been an opponent of what the fed has been doing, quantitative easing, many years now you warned about folks inflation, it has not come to parks he has not suede the board to stop doing quantitative easing. and now to suggest that maybe what we need to do is have congress put limits on fed purchasing is a fed official going outside the confines of the board to ask for help making policy. this is undprentsd. it essentially toys with the fed's independence, if i understand jeff lacher correctly, because one of the things the federal reserve

that is where ben bernanke's ideas were misplaced. back in history and see that was something that dn't work out. gerri: he is a historian. you would think he could figure it out. thanks for coming on tonight. a pleasure having you on the show. come back soon. we will be right back with my $0.02 more andhe answer to the question of the day, where are you find a better deal? in store or on line? ♪ ♪ [ engi revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going onow -- but hurry, the offer ends soon. means the world to me. and one of the most important things any parent can do is make sure their kids get active at least 60 minutes each day. studies show that physical activity not only helps kids stay healthy, it can enhance important skills, like concenttion and problem solving, which can improve academic performance. this means physical activity can help your kids in the most important game of all -- life. gerri: is officially the holiday shopping season, so where are yo

that is where ben bernanke's ideas were misplaced.ack in history and see that was something that didn't work out. gerri: he is a historian. you would think he could figure it out. thanks for coming on tonight. a pleasure having you on the show. come back soon. we will be right back with my $0.02 more and the answer to the question of the day, where are you find a better deal? in store or on line? twins. i didn't see them coming. i have obligations. cute obligations, but obligatio. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objecves, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪ fare thee well ♪ farewell ♪ mr. gloom be on your way ♪ ♪ though you haven't any money you can still be bright an

the economic club of new york when ben bernanke speaks and then the q and a session. eady got some of the headlines from steve liesman who's there today. the is is mr. bern is mr. bernanke saying what investors want to hear? erin, welcome to halftime. good to have you on. >> well, thank you. >> you probably got the headlines here. what are your thoughts on what mr. bernanke is telling the markets today? >> at the point, the most he can do is be an encourager to the regulators and banks. not much he can do with fiscal policy right now he can encourage regulators to revolve the cliff and get the banks to lend. >> that the slcliff has substantial risks to the economy. i'm curious of your reaction to what he is going to lay out what steve liesman said what he hasn't heard before, this notion of what the crisis has done to the overall economy, if it's lowered the growth potential and how it translates to a stock market. >> right, he's saying that his expectations are more than 2.5%. we've been expecting the gdp to come in at 1 to 2% already. i think most of the market is al

gerri: fed chief ben bernanke gettingiving a big speech in ne gerri: federal reserve chairman ben bernanke speaking today at the new york economic club in new york city, and his message to lawwakers in washington, fix the fiscal cliff and don't kick the can down the road. the commons the fed chief has everybody talking. john, always great to see you. i want you to respond to something the fed chairman had to say this afternoon. listen to this. >>n a worst-case scenario where the economy goes off the broad fiscal cliff, the largest fiscal cliff, don't think the fed has the tools to offset that. gerri: don't look at me, can do anything if you can't avoid the fiscal cliff. what did you make of that? speak of the war is quite complicit dumb explicit. if the u.s. goes over the fiscal cliff, the jump in taxes woul likely quickly push the u.s. economy into a recession and there is nothing the fed cado to prevent that from happening. gei: it seems to have unloaded everytng they have, the economy has to come back on its own now. >> they can do with the bank of japan is now supposedly considering, r

there he is. >> we are off the lows we saw earlier with ben bernanke's speech and q&a, part of the reasone sold off. what do you make of the market, ben? >> still in the bottoming out phase, but as we talked earlier, it's a time for investors to be adding to the long positions. traders buy the volatility looking for the ups and downs. this is the bread and butterment love when it happens m investors should be looking, finding prices they want to add to what they own or starting a position. that's what you do. >> talked about the fact yesterday we gained over 200 points and talked with our buddies there and just saying what's the trend between now and the holidays, and it seems that consensus while we're in a bottoming out process, it may be higher. >> i believe by the end of the year we'll be higher, and market, gray wolf says possibly above the september 14th highs seen earlier in the year, but that's volatile. keep that in mind. traders setting up for that. what traders hold in the product that buy volatility are aalong those. it's like the sales, that's when you buy when you're an inve

gold is safe and this is as you see ben bernanke protecting their gold that's in the new york federal reserve bank and their pile of gold. is the journey to go to central bank in new york. where there are gold right there were surrounding the players washington commission of other dogs you know government. funds you couldn't. go that's what you got to germany get real. i think is william dudley that's the president of the new york fed now. so headline reads max about that gold stored in flood prone lower manhattan max this is from business week and they know that a lot of buildings in lower manhattan were destroyed due to the flooding from hurricane sandy and they ask what about the nearly fifteen million pounds of gold bricks stored at the new york fed well they say it's ok because it's in a vault which is protected by an air tight and water tight seal created by lowering a ninety tons steel cylinder just three eighths of an inch into a one hundred forty ton steel and concrete frame in effect quote similar to pushing a cork down into a bottle. like. dr evil like no but the gold is no

this seems to go completely against this notion put forward by ben bernanke we call this just a trick and people collect it doesn't really matter well you look at what i do not what i say it's the answer to that absolutely and in fact actually you can make the argument that central banks now have a double bed in the market because they're bidding for themselves and they're also bidding to to buy physical and always deliver it for these very repatriation requests because of course you've got to realize that they're not able to on wind the chain of leasing and swapping in order to deliver balls to the within the cost of a dual system let me mention leasing there for a second a lot of people speculating that germany's gold has been leased out into the market does it mean the bullion banks this is a trick that central banks and bankers use to feather the nest of investment bank that telegraph to the market that they're going to change the release rates to borrow to sell gold knowing that the price will fall and that these banks can scalp a few bucks from the market on the lower price usin

plan that has followed, the chairman of the board of governors of the federal reserve system, ben bernanke. plus, morley safer asks, "can america afford the lincoln penny?" well, we begin with bernanke. after the crash of '08, bernanke invoked emergency powers, and with unprecedented aggressiveness, he's thrown more than $1 trillion at the crisis. the words of any fed chairman cause fortunes to rise and fall, and so by tradition, chairmen of the fed do not do interviews. that is, until march of 2009 when ben bernanke sat down with scott pelley. >> mr. chairman, i'm gonna start with a question that everyone wants me to ask. when does this end? >> it depends a lot on the financial system. the lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis. now, we've seen some progress in the financial markets, absolutely, but until we get that stabilized and working normally, we're not gonna see recovery. >> i wonder, do you expect double-digit unemployment? >> well, it's hard to forecast exactly where we're going. unemployment is rising.

lou: ben bernanke talking about a new normal that we would have a stubborn loss of skills, high unemploymento growth, what is your reaction? >> they say this is the bernanke's side. look at chris or dirty but other money managers talk about historical growth rates of 4% that are baked into the obama budget are of the past. talk about the demographic wall, the low birthrate we will be less than 1% growth look at the economic isis on top of a fiscal crisis. lou: the idea this country can sustain zero growth, high unemployment, it is not in our national day -- dna. i set my hat to whether bernanke or whoever that is t the way this country works. i guess it's a little angry. >> the birthrate 2011 is the lowest in history. corporations are sittingon $1 trillion in cash. the signals are out there by the people's decision that don't have fait in the political class. lou: not about people but multinationals. if you tak about that $2 trillion we talk about them. people are out there consuming. >> the people have faith with great then 1% growth. lou: we could give them a kiss on the cheek? >> i believ

especially after ben bernanke speaks tomorrow. speaking about qe-4. david: maybe it is a little bit of both, fiscal and monetary balance. what will happen when ben bernanke talks tomorrow, what happens with the day? >> if you notice, the market's concern is the beltway. if you notice, the housing data continues to get better. now, fed chairman ben bernanke is going to supercharge it and given the far left lane and he is going to put the pedal to the metal. the fed buying mortgage-backed securities through 2013. now they will buy treasures. long-term yields going lower with the idea to speed up the healing process in the housing market. david: let me just stop you there. how low can they go? you look at 10 years, down well below 2%. how low do you think these treasuries can go for where they are now? >> i think 10 years -- 2%, 30 years, 2.5%. you have a fatter yield curve and bond traders and purchasing the durable goods -- that marginal buyer will help the economy move forward in 2013. liz: lets me hope so. as you say, bond yields at about 1.25. what

>> susie: federal reserve chairman ben bernanke came to new york city today to send a tough message back to washington-- get your act together. he urged lawmakers and the white house to reach a quick deal to avoid the fiscal cliff, saying it might mean next year could be "a very good one for the economy." ben bernanke didn't endorse any specific tax or spending policies to solve the fiscal cliff, but he urged lawmakers to think creatively. he said an agreement on ways to reduce long-term federal budget deficits could remove road blocks to growth. on the other hand, going over the cliff might mean a recession. on top of that, worries about a deal were already causing trouble. >> uncertainty about how the fiscal cliff, the raising of the debt limit, and the longer-term budget situation will be addressed appears already to be affecting private spending and investment decisions, and may be contributing to an increased sense of caution in financial markets. >> susie: wall street and business leaders were pleased that bernanke was talking tough. and they said the fed's role in the fiscal cliff

sparrow you're getting really good at this bed speak to me you can tell ben bernanke is all right here to tell us what you think it's ironic so you know because ben bernanke you said that he wanted to have a more open federal reserve when he came in after greenspan and in many ways he's actually more closed off i mean greenspan was like human there was a human element or greenspan there was a narcissism there was a humanity but bernanke is like an empty suit yeah the guy is completely monotone spiritually not just you know. his verbiage it was a little bit you know i don't want to beat up on but he's you know i'm sure as a nice guy i don't know i don't think you know yeah well i don't know if he's a nice guy i don't think i'll end up in a poker talks is going on my christmas list for sure so you'll know when you see it i mean i think. that for now let's move on because president obama could have a secret weapon to help the u.s. avoid feeling the effects of a connery at which is what we're calling the fiscal cliff it was renamed by one of the oh and it is us treasury secretary timothy g

find all of her addiction to and dodd bob english we've got you we've got ben bernanke and janet yellen as dr evil and many me behind me and that. is where we're going to end on thank you so much for being on the show today bob thank you. all right we have a reality check tonight because today we saw the headlines touting the news of u.s. g.d.p. growth revised upward to two point seven percent that's up from the initial estimate of two percent which we saw last month ok great news right well there were some calls yacht's in the revisions that were widely reported but we ask what does this mean at all this idea of g.d.p. as a gauge of the economy's growth and health well maybe not much if you consider what bill bomber told us a few weeks ago. the g.d.p. numbers are to be the biggest fraud in economics you know what it pretends to tell you people think it says are you getting better or not is a g.d.p. growing or is it not but you know if i pay you to cut my law and you pay me to cut your losses you know the g.d.p. will go up but is anything different anything at all. no if you mo mylan im

freedoms they feel have been held back from them in the past and how do you connect something like ben bernanke is monetary policy though to the protests in egypt or anti austerity protests in spain how do you really connect those dots well ok so so i think the reaction the panic reaction by bernanke and a lot of the central banks just create more and more money is has been a result again of sort of the collapsed. the system itself and then this is led to food prices food prices going up commodity prices going up as you know was well documented a lot of the reaction in north africa was a result of food prices and commodity prices escalating out of control and what happened after that was were governments in the regime like saudi arabia and kuwait stepped up subsidies and free food and checks to their people to try to calm things down so to me again it's all it's all a function of too much money not enough productivity and then commodity prices going up which then look when people don't have anything to eat and they feel like they have nothing to lose it's that old saying you know you go for it

federal reserve chief ben bernanke finishing up at the economic club of new york.steve liesman was there. it infrastructure me, he chided congress in trying to get something done. you can't put everything at the door of the federal reserve. >> that is right, michelle. but it was a gloomy bernanke speech. he said he urged congress and the administration to solve the fiscal cliff problem. if you don't do it there is going to be a recession. no matter what happens under every plausible scenario, some drag on growth from federal spending next year, that's one. the other one he said that was kind of interesting, he said potential gdp, the ability of the economy, the speed rate that it could go, is actually lower than maybe we thought, below 2 1/2%. let's listen to what he said to congress and the administration about solving the fiscal cliff problem. >> the real spraying that of all of the automatic tax increases and spending cuts that make up the fiscal cliff, absent offsetting changes, would pose a substantial threat to the recovery. indeed by the reckoning of the con