this piece of paper cost nothing to produce, there's nothing behind it except the goodwill of ben bernanke

. >> folks may remember a couple weeks ago ben bernanke former fed chair saying he couldn't refinance mortgage because he couldn't get a lender to do that. so what we're trying to achieve in general is to keep strong safeguards in place. like we set a credit score floor. if you have a credit score a we need 580 you need to put ten% down inside of three and a half. >> how do they capital ice fha, do they have to have money in reserve. >> that's right we have about 40 -- in reserve. the fha has gotten much stronger. that is one of the things that allows us to do this new and to keep safeguards in place and meet the mission as well of insurancing this. >> what percentage do you have to be at for your cap? like what is it they make the banks at 5% they have to have capital investment of 5% on there. >> so it is a 2% capital reserve ratio. so you guys are beyond that with your 40 billion. >> no, no we're at .41% but on a very strong trajectory to get 2% in the next couple of years. >> jon: okay i was with you for a second. you were talking about 40 billion and then just a second ago you sa

>> reporter: the national retail federation's annual big show former federal reserve chairman ben bernanke said while many face financial pressures, he hasn't seen the economic backdrop for the consumers this strong in almost a decade. here at the icr exchange conference in orlando, companies from restaurants to retail are feeling good about the u.s. consumer fueled in part by lower prices at the pump which estimates could put an additional $800 on average back in consumer's pockets this year. >> consumer confidence. lower gas prices, having disposable income that's greater than the monthly budget. >> reporter: the enthusiasm isn't without caution. >> big challenge for the finish over the last couple of months but we'll be back strong. we focus on product and we focus on the customer. >> reporter: not all consumers are feeling flush. forcing retailers to work even harder. >> it's going to stagger along. people make money on the stock market and the cn man isn't doing much better because those family wage jobs are gone. >> there's also continued concerns of what the future is going to be. r

it used to be ben bernanke he. it is now mario draghi. >> we got a lesson from ben bernanke.rial and error. this can take a long time. we have that still to come. that will keep you and i in a job. let's say you start with 50 billion. six months down the line, it's not working you go 60 or 70. the difference was recapitalize the banks and make them viable institutions again. they can't land. they are still raising capital. it is an ongoing story in europe and not in the unites states. -- united states. >> we know how the program worked here. we know what the effects are. what about the ecb and what people are telling you? what bonds are they going to buy? what sovereign debt? how will they execute this program? >> if they do by sovereign debt and maybe investment-grade. it means you don't by greek bonds. you have a great election. it's very much about detail. -- you have a greek election. if it is just investment grade and you do it through the likes of greece and others, that can be a big disappointment for many because they are the country that really needs it. so many peop

you start with ben bernanke who said i wrote all about this i wrote a thesis, and the fact is i know have been successful. janet yellen the same thing. the ecb, one of the most important days for the market coming up, they're going to do their best to make sure we're successful. pushes up financial asset prices, bonds and stocks both. lou: and crude oil $48 after a 5% rally. what are the prospects, and what will be the end result? >> supply and demand from people whoain lot more about it than i do, tell me we may be coming to a bottoming process. we've gone to half where we were several months ago, if we continue to get the slowdown in exploration, we'll have 40 50 for an extended period of time. lou: michael holland, always good to see you. >> are you running for president or not? lou: i'm going set up a committee and explore and my wife will say don't think about it. how about you? >> no my wife said no also. lou: there's that. we would have been good too, you know? >> i'll be vice president. lou: well. tough spot i love that. great to see you my friend. listen to my financial repo

. >> i am on other side, to quote ben bernanke.raner to. -- transitory for every food inflation you can give me, i give you falling gas, natural gas prices. charles: a 70-year-old widow lives in an apartment in new york city without a car. >> you are cherry picking out of the problem. charles: i am. >> maybe affecting 20%, but i think deflation -- >> wait a minute. charles: hitha, that is thinking that starts this, government said, you know motorola came out with a cell phone that cost $4,000, now you can get one for $40 stop complaining. >> we had these increase in prices on commodity for a while, it tared in 2012. with a huge drought, remember beef prices went high. and. charles: we've had them all over. >> and problem is, that everyone said they will go away, it has not. charles: we have to look at transitory, could if mean 3 months to 30 years. >> beef, corn and beans are going like this. charles: one of my favorite company posted numbers after the bell. i have loved it, i am going to reiterate it, i am here to make you money.

>> he has a beard like ben bernanke. >> i'm a trained journalist. melissa: you're a trained journalist. >> average guy that watches us should know this if you want to put money in the bank or take massive risks in the markets you're screwed. that is what the federal reserve is telling you. >> it is true what you said before the show you won't shave until the fed raises rates? are you going on record? melissa: you won't shave until the fed raises rates. >> i won't shave until the fed raises rates. >> you have a long beard. >> i won't shave until george, our camera guy, shaves his fro. melissa: that making more sense. look no further than microsoft leading sector to biggest plunge in three years. tale of two tech companies for microsoft and apple. microsoft reporting dispointing fourth quarter earnings. apple is gearing up for what analysts say could be epic report after the bell. is it going to be epic jack? >> it will be epic in terms of numbers. the stock is going to decline and the reason i say that that is what happened this time a year ago and t

financial system melts down worldwide and then ben bernanke said, i have run out of tools. this is chairman of the federal reserve saying, i have no tools left with which to deal with this challenge. the only institution big enough to deal with it is the united states treasury and it is going to be a very big number. we said, how big? he said, $500 billion. the next day we will wrong, it is $700 billion. chris dodd was the chairman of the banking committee. he called me and said, i want to meet with you tomorrow. i called senator shelby, the ranking member of the banking committee, and he said, i want no part of it. i was next ranking. i called mcconnell. i said, chris has invited me to this, should i go? he said, take judd gregg with you. we decided to take bob corker as well. we walked in. chris had a couple of democrats. dick durbin and chuck schumer. aarti franklin. in a two-hour period, we put the bill together. a lot more details went into it, but that was basically it. the house rejected it. nancy pelosi said, this is enormously unpopular. republicans are in charge o

because it doesn't matter how much money ben bernanke or janet yellen puts into the economy people are sitting on it and i think that that is a little bit key to the puzzle. and the gdp data showed consumer spending probably because they have more money due to lower gasoline prices. the big problem was the decline in the rate of business spending which is the ultimate driver of the economy in the medium and long term. gerri: 2.6% growth in the third quarter. essentially that is not good. so on so many levels, it's a bad idea to put cash away like this. why do you think it's a bad idea? >> well, you are insured in the event that you have your money deposited in a financial institution. as long as you're within the bounds are covered. when you've got that money stashed in the closet or under the match at or whatever, not only are your main interest but you're not covered buttocks exposing yourself to loss of theft and nobody has you covered under those instances. you want to have some cash in the event of an emergency, but too many people are keeping too much cash around. >> one quick th

for me since i made my first trade in 1978 and got more pronounced since more data dependent as ben bernanke made from his mistakes the fed cared more about the data e vis rated tons of too smart for their own good money managers that did macro analysis and thought the fed would tighten despite the lack of inflation. i suspect we'll see the same dynamic this year before i get into specifics, let me say any attempt to invest any belief that what really matters was your personal view of politics or monetary policy that cost you big time last year. i want you to pay attention to the facts in 2015, not opinions. the facts didn't lose to a stray in 2014 and won't do it no matter how often. i grossed yet when dahlllas beat detroit. let's keep that out of picking stocks, please. the first lesson of 2014, sweeping judgments lead to incorrect conclusions. how many times did it lead you astray for the morning or the next day or next day? they were based on the carry over book from europe. they often steered you more wrong than right over the near term maybe not on a given day like today, same with the

ben bernanke secretary of treasury hank paulson. saying this began with a collaboration and much of what is in there was at their request. sheila bair, a republican appointed by george bush. but she was a bob dole republican and they've now become dismissed. of course there's room for change in any complicated bill. i'd like to toughen in. it other cases we should clarify things. here's the problem. you can't go to war, you can't say, we're going to totally repeal this, no regulation is necessary. when the house voted on this bill the republicans didn't offer various amendments as their basic point. they offered a motion to kill all financial reform. so the answer is this. yeah, we should be working together to try and make improvements in anything. but you can't do that while you have people threatening to undo the whole thing. >> congressman, how do you assess this republican party today? i mean is it the same old, same old. $1.2 billion into lobbying and campaign spending in the last election cycle, $1.2 billion they poured in. h

deflation as we learned from ben bernanke something we want to avoid at all costs. right now it doesn't look like as if they can do initially things that may get us to the point where we don't have to worry about that. >> let's take a look at some of the three major issues that are facing europe. and i put this together when the euro was at a 2010 low. right now it's probably at a 2009 low given how much it's dropped. european bond yields hitting record lows. and i'm a believer that the bond market kind of leads the equity market. euro weakening to 2010 lows and ecbs draghi won't rule on the out the deflation risk. so dave how do you feel about the situation in europe right now. how dire is it? >> i agree that the conditions are serious. i also think that we'll have a lot more clarity by the end of the month. in just two days we'll get the eurozone wide inflation reading. we have the greek elections. and both of those things buttress draghi's case for a significant quantitativeubtsntitative easing program. by month's end, i think the outlook will be clear. >> mike,

fed had it right i contend, you know me if if we switch and put ben bernanke and janet yellen in europe and mario draghi in the u.s. given our economy versus theirs the outcomes would be the same. our economy is different than europe it's different than japan, different than china. it's a wonderful resilient economy. >> yeah. i foe we got to go but again the swiss reacting at the time to how strong the euro was because the european central bank wouldn't be as accommodative as the u.s. that's the point some have made. >> the peg was a mistake in the first place. >> yeah. >> once again, central bankers think they put a little spring out of a transmission that has 10,000 parts and know what the outcome is going to be. >> the bottom line they're all going in opposite directions and doing different things for the first time really since after the financial crisis because of these new challenges. >> it's going to be a mess in the making. >> it will be. >> thanks guys. >> monetary policy by economy. global economy. god forbid. thank you. appreciate your thoughts. sara good job. >> 45 minutes t

and then ben bernanke said, i have run out of tools. this is the chairman of the federal reserve saying, i have no tools left with which to deal with this challenge. the only institution big enough to deal with it is the united states treasury. and it is going to be a very big number. we said, how big? he said, $500 billion. the next day, we were wrong. it is $700 billion. chris dodd was the chairman of the banking committee. he called me and said, i want to meet with you tomorrow. i called senator shelby, the ranking member of the banking committee, and he said, i want no part of it. i was next ranking. i called mcconnell. i said, chris has invited me to this, should i go? he said, take judd gregg with you. we decided to take bob corker as well. we walked in. chris had a couple of democrats, dick durbin and chuck schumer, arti franklin. in a two-hour period, we put the bill together. a lot more details went into it, but that was basically it. the house rejected it. nancy pelosi said, this is enormously unpopular. republicans are in cha

i am -- i always go back to what ben bernanke said. quantitative easing works in practice theory, but not in practice. the federal reserve went to an open-ended quantitative easing program that we had lower unemployment, we had inflation came down a bit during that period, but maybe not as much as some of the other countries that were out there as well and growth also accelerated during that period. how it worked? the channels, unclear: perhaps through additional lending. we had something affirming in lending that was out there. maybe through an expectation's route, tyler, in that when the central bank comes to order and says we will not allow disinflation or -- >> what i hear you say is we don't know how it worked. >> not sure. >> we can point to numbers that moved in the right direction. >> right. remember what happened to european central bank their balance sheet fell with declining numbers and near recessionary growth numbers in that time. there's two examples out there, and draghi took a page from bernanke and yellen saying it was

secretary of the treasury paulson, sheila bair paul volcker, ben bernanke.ace and i was disappointed that there was kind of a complacency about this. the first two bills were not central pieces of the legislation. this current one, putting off the volcker rule and weakening rules about derivatives, people should remember it was aig's heavy involvement in selling a form of derivatives and not having the money to back it up when they had to that was a precipitating cause of this crisis. aig came to the federal government and said we're $85 billion short. a week later they said sorry, $170 billion short. what we did was to make that mess less likely to happen. so i was discouraged. but too long an answer i apologize. but i think they have done us a favor, the republicans, by trying to pile on so much. i think you now have a resolve on the part of the president, clearly backed by well over a third of the democrats in both houses at the very at least. so i don't think they'll be able to do anything further, and they have given us, i think, one of the first issues

even ben bernanke couldn't refinance his house, for goodness sakes. instead of gettin some of the restrictions of dodd-frank and other financial regs, they're just adding this new layer onto it. it is more government to solve a problem raised by big government. >> the irony here is that we've had several years now of just these massive government subsidies for housing, both qe and what dodd-frank did, but the president thinks we need more of these? if they weren't working before, why are we doing more of them? the banks aren't really holding on to these 95 and 97% ltv loans. fannie and freddie are not buying them. it's now the gses again, and that's problematic. that's not responsible borrowing for any borrower whatsoever. david: well, the market seems to have ignored the terrorist problems overseas even though they may be coming here, but big question of whether there will be an economic consequence to all this. anthony, already we are hearing from parisian retailers saying it will be hurting them. i'm wondering if the market is not discounting that

go back to ben bernanke, they tried to devalue the dollar. the niche part of the qe program was to push the dollar down. what happened because the world economies are failing now people run to three things. the u.s. treasury bond, u.s. dollar and u.s. marine corps. when things are in trouble everyone comes here. no matter what the fed tries with the dollar as long as the world economy is struggling they will buy u.s. dollars. everybody is afraid of their own collapsing economy. we're not talking about what is possibly going on this nigeria or venezuela yet. david: we had extraordinarilily good consumer confidence numbers. that is great news. what is not so great the jobs report, we saw wages fell down a bit. on one hand consumers are confident i think primarily because oil or gasoline has gone down. that puts more money in their pocket. what happens when that effect wears off and people are stuck with low wages no. >> you have certainly tax relief happening at pump with oil prices coming down. interest rates are still low. this is a good envi

ben bernanke is going to give the keynote there.vote on a bill to complete construction of the keystone pipeline which would bring crude from canada down to refineries along the gulf of mexico. one version already passed in the house, but president obama has vowed to veto the legislation, at least for now. >>> auto sales have been strong. especially for suvs and pickups. look for a lot of new and redesigned models on display at the detroit auto show this week. always one of the winter highlights. i'm tyler matheson. get all your business news on cnbc. >>> starting this week internet gmablers in new jersey can expect bigger prizes online. that's because two of the state's gaming websites will start sharing players. betters with wsop.com and 888.com will come together tomorrow. the move will create a bigger prize pool. the sites will share $130,000 in guaranteed tournaments each week. internet gmabling is actually relatively new for new jersey. it's only entering its second year. >>> the flyers will be without goalie steve mason for a

ben bernanke. and we put some rules in place. there is a complacency about this. this current one, weakening the rules about derivatives, people should remember it was a.i.g.'s heavy involvement in selling a form of derivatives and not having the money to back up it when they had to that was a precipitating cause of this crisis. 170 short. too long of an answer. i apologize. here's the point. i think they have done us a favor, the republicans, by trying to pile on so much. i think you now have a resolve on the part of the president, clearly backed by well over a third of the democrats in both houses at the very at least. so i don't think they'll be able to do anything further, and they have given us, i think, one of the first issues of the 2016 election. and i'm competent -- >> let me just ask you on this a little more specifically, because we see the strategy here. you can pass a stand alone bill trying to take dodd-frank off the books, that's that piece, but the strategy that they've used successfully is to take these bills, li

when you manipulate currencies, ben bernanke started this with the qe program to push the dollar downn this throughout every economy. everybody is racing to the bottom to try to increase their own gdp what that does in effect, artificially jumped up interest rates while pumping up the dollar. apple, why convert the money back to u.s. keep it where it is at, hold on to it, where velocity of money is very important to an economy which we've not seen for quite a while. until that picks up it will not create jobs. david: tracy, be careful what you wish for. the more velocity of money, the more cash gets out there and more inflation, right? >> the more the government taxing it and taking it and other things as well. apple can do what it wants with its cash and should sit on it and put it under its empty address because god knows what will happen. until we change tax laws and onerous regulations you will not see the money come back into the economy. they will hold on a tight fist and i don't blame them. david:s tracy, you don't no what you did, give me a good segue. australians, yes the aus

ben bernanke says -- i think it can work in practice. >> what is your take on the health of the financialhad a reform in italy hailed as the biggest banking reform in the last 20 years. was this pushed and wanted by you? does it mean we will be in a better place at the end of the process? >> we had an assessment read as showing some problems in the italian baking system. the italian baking system had been resilient even in the bad state of the real economy we only have to banks -- because of a lot of internal problems. at the same time, we are going to face -- we have to have higher capital ratios across the board. we have to be able to have banks that can raise capital when needed. these banks have performed overall well. we think, i thought and have been clear on that in the last years even very recently, that the governments of these banks and the transparency the way they can support the economy given that these are large banks that operate not at local level -- this goes in that direction. we will see how much consolidation takes place. >> thank you for joining us. i know you had to

we are following ben bernanke. >> i'm into it. >> does it surprise you that the fixed income trading numbers were no better and in some cases worse than what we saw from jpmorgan, citigroup and bank of america? >> we all expected equities up but we got worse than expected. the pain we saw in the credit markets over the past quarter. >> is this something we think will recover? this is 14 straight quarters -- if i was running one of the weaker funds why not back it up? >> we have had the secular challenges. there are certain cyclical impacts. we need the cycle to pick up. everyone has been hoping for volatility. in much smaller part of the business versus the overall franchise. >> the buy side comment hedge funds, your clients have had their share of troubles. look at the average macro fund last year. there used to be a time when if the buy side did that come to the sell side could do well. >> this low rate environment looks bright environment has taken its toll on the u.s. markets and the ficc businesses. -- we see the swiss go to -75 basis points, it's not clear to me that there will

i look back to ben bernanke he and the amount of money, $300 trillion.any guys -- laws you guys have passed. a lot of people in europe are talking about us printing money and doing the bond buying at the ecb. the german approach about how that would mean people lift off the pedal for reform is a real argument worth having, one worth having at the u.s. federal reserve and denver nike over the last four years has been the only game in town in the u.s. >> that is your take away? >> when they come over to europe and preach about how many changes europe needs to make they look at the u.s. and wonder -- [indiscernible] >> jonathan, you're right. the europeans did such a great job recapitalizing their banks. [indiscernible] >> that is what axl -- axel w eber's point is, that is what they did right, that is what the europeans have done wrong. forget about qe, it's all about the bank. >> the europeans have 19 countries with 19 governments. they don't agree. it's difficult. >> thank you so much. francine lacqua,, john farrell. >> thanks for watching "market makers

i think ben bernanke did a spectacular job. think he reinvented the fed to some extent and deserves credit for doing things during the crisis in pursuing a state of easing. i think janet yellen has done a good job following a lot of what he did. >> david, we will end on that note. >> my pleasure, thank you very much. >> david rubenstein, cofounder and co-ceo of the carlyle group. >> we have a lot more. stay with us. when we return,'s changing the way we speak about the banks. one of the cofounders of paypal. stay with us. you are watching' "market makers " very special doubles addition. ♪ >> welcome back to "market makers." we are live from switzerland. i am erik schatzker. >> and i am stephanie ruhle. we are joined by one of my favorite guest. max levchin cofounded paypal peavy he is with a company built on the premise that the u.s. credit system is broken. he is with us now to talk about the way big banks have it all wrong. max, welcome. we have spoken about this before. you believe that people especially young people hate ba

under ben bernanke started buying $85 million worth of bonds per month, and we will get 50 billion euroshat stance, it does look like a u.s.-style qe. my other big takeaways the purchases would be focused on sovereign bonds and the other question was -- how does mario draghi transfer risk?is he going to transferred onto the national government? the way i am reading the headline, purchases focus on sovereign bonds does mean he will achieve that. that was really with the big holdup was. >> i am looking at the market reaction. guys, can we get a euro chart? the euro fell slightly because now it is recovering right now from this, you can see it looks like a plunge, but it is coming back from the low so far, so already we are seeing this autumn here at least for this session. stocks as well in the u.s. here they also dropped just on that news that broke but they are also coming back a bit. i want to get to scarlett was more on these headlines and also the market reaction. >> you mentioned the euro how it did, but it is still firmer ahead of the ecb decision tomorrow. this is the stock 600 ind

is secretary paulson the secretary of the treasury, came before the congress with ben bernanke, the chairman of the federal reserve system, and said we have four days before the entire financial system melts down worldwide. and then bernanke said i have run out of tools. this is chairman of the federal reserve system saying i have no tools left with which te deal with this challenge. and it's going to -- the only institution big enough to deal with it is the united states treasury, and it's going to be a very big number. and we said how big, and he said $500 billion. and the next day it was, no, we were wrong it's $700 billion and chris dodd was the chairman of the banking committee. he called me at night and said i want to meet with you tomorrow so that we write this legislation. i called senator shelby who was the ranking member of e banking committee, and shelby said i want no part of it, i'm going to vote against it, i think it's a mistake call bennett. i was next ranking. i called mcconnell, the leader and said chris has invited me to this, should i go? i want to go, and he said take ju

ben bernanke is doing a keynote this morning at the national retail federation at the big show. he's talking about global economic challenges. the conversation occurring will focus on the intersection of retail and technology. not only will retailers be present but companies like microsoft and intel to name a few. we have a lot ahead with thousands of people to talk to in retail in two different cities coming up. but also on squawk box we're going to be speaking with former walmart ceo of the u.s. bill simon. it will be his first appearance on cnbc since he left the retailer. he's a current board member. >> a lot to look forward to in the retail world. of course the national championship tonight i'm sure you'll be watching. my oregon ducks playing your ohio state. i hope you're ready to lose. i feel bad. i don't know -- >> no. >> if you're going to be able -- >> i don't know. i'm not ready to lose. ly not be -- i'll be a sore loser if it happens. i believe i have my buckeyes here. i'm rearing to go. i'm pumped for the game. it's going to be a good one. >> i'm with you on this on

secretary paulson, the secretary of the treasury, came before congress, but then ben bernanke, the chairman of the federal reserve system, said that we had four days before the entire financial system melted down worldwide. and then bernanke said that he had run out of tools. this is the chairman of the federal reserve system saying -- i have no tools left to deal with this challenge. and the only institution big enough to deal with it is the u.s. treasury and it will be a very big number. how big? they said 500 ilion dollars. the next day they said, no, we are wrong, it was actually $700 billion. chris dodd called me at night and said he wanted to meet with me. i called senator shelby, the ranking member of the committee and shelby said he wanted no part of it and that he would be voting against it and that it was ms. a. i was next ranking. i called mcconnell, the leader. chris has invited me. should i go? i said to take jeff gold with you. we decided to take bob corker as well. chris had a couple of democrats. dick durbin, chuck schumer marty from the house. we sat down and in about two h

and there's a famous saying from ben bernanke with qe. the problem it doesn't work in theory and it works in practice. it points to the fact you may not see the direct impact as our economic models would suggest, there's a huge impact in confidence. it is seen as being forceful and taking leadership which is what is missing in europe now. >> how critical is the help of the financial sector? the banking system at this point, despite the program among other programs rolled out by the ecb to stimulate banks lending that hand been enough to push the banks to lend to consumers and small businesses which need those loans in order to grow and expand. >> absolutely. it's critical. and of course there europe has been lagging behind the u.s. things are improving in terms of captainlization. you look at the banks getting more willing to lend as well. a huge lack of demand. that's where the confidence issue comes in. remember a year ago there was more confidence in europe. russia happened and a number of other things lead to weakening. it can get bac

the question whether people were willing to bet on mario draghi the way they bet on ben bernanke, once upon a time. jim lowell, almost make me want to wear a bowtie. very festive tie going. >> maybe for friday jobs day, bill? >> maybe. maybe. >> only over 300? >> i don't look good -- people asking me to serve drinks or something when i wear them. >>> the manhunt intensifying for the killers in yesterday's gruesome terror attack in paris. >> continuing to cover this story for must paris, joining us now with the latest developments. hadley? >> reporter: right now what we snow that over 88,000 security and law enforcement personnel are scouring the french country side looking for two men they suspect in the killings of the 12 journalists who were murdered yesterday, just blocks from where i am standing. now this is the most massive manhunt in french history looking for to most wanted men in france. what i have to tell you tonight more than anything heard from francois hollande saying the men will be brought to justice and looks like he pulled out the big guns to make that happen as well.

i know ben bernanke was there at the conference talking about the destruction of the middle class.hat kind of gap do you see between your kind of high end shopping centers and the lower to middle income shopping centers an cord by the traditional department centers like jcpenney and sears, which are struggling?chored by the traditional department centers like jcpenney and sears, which are struggling? >> i think we're in the people business. we serve a wide demographic. we have every ethnicity, every demographic on our property and we're trying to serve every one of them. the difference is no matter what the demographic is no matter what the classification is, people want to have a great experience. and i think if you look historically into great retail whether years ago it was sears, whatever the case is they always had retail that connected with the consumer and connected with the guest. many of these stores have lost it. and they're in a commodity business. you have to differentiate your product. probably more difficult to do at the lower end of the product range, but it can be d

and just a couple months ago, even ben bernanke the former fed chair, remarked that he'd been having trouble refinancing his mortgage. so, we've underdone a year-long effort to clarify our policies so that lenders can feel more confident in working with a wide range of credit-worthy borrowers. this has increased the flow of credit and we'll keep building on this progress. secondly, we want to make homeownership more affordable for those who already qualify for a loan. last week president obama announced that fha will reduce its annual mortgage insurance premiums by half a percentage point by the end of this month. right now fha premiums are at a historically high level. and the cost of obtaining the american dream is too great for a lot of working folks. folks in the middle class. i'm talking about people like brittany coffman from maryland. a dental hygienist, brittany told bloomberg news that she found her dream home after two months of looking and she planned to use an fha-backed loan to make that dream real. they be she found out that fha had raised its fees. instead of paying $1

treasury, and this is confirmed i ben bernanke, paul kanjorski said it live on c-span the morning what happened. nancy pelosi just repeated it when she was upset on the house talking about the budget resolution that passed, the only way that this attack could have happened on the people's banks, the u.s. treasury, is from the big ask themselves. ok? so our treasury was attacked on september 11, 2008 there it >> we are running out of time with the congressman, so go ahead and jump in at this point. have you heard the comments before? >> any number, since 2008, there have been any number of problems in the market which were not necessarily related what happened in 2008, the run on the treasury, i do not recall those specific circumstances, but we have the crash, we remember that. the market dipped hundreds of points and was driven by the automatic trading we see a lot now. i am not in any way implying that the banks behavior has changed utterly and completely and now they're acting fine, we saw the libor scandal, where banks were manipulating the libor rate, we see insider trading. it is

if you were looking at what ben bernanke looked at, the fed would be easing now and right now we haventerest rates -- >> you heard what janet yellen called that. >> i don't see how this is a good thing, okay? >> can we go back to oil? >> i don't see how people think the u.s. cannot raise interest rates by 25 basis points how that is possibly a good thing -- >> the test though is should they raise interest rates and why they would. i'm increasingly in the camp that thinks they put it off from the summer because there's just no underlying reason to do it. if you have essentially under -- inflation expectations are going down. >> unless they want to leave themselves some room to lower in the future. >> 25 basis points isn't going to help you. >> jim paint us the more positive story. evan said tell us how they of this is good news but you seem to think it is. >> there's one thing i want to go back to which is the price of oil and it factors into good news. the collapse from $100 to $65 certainly had to do with steve's concept of too much supply versus demand but the collapse from $65 down

just because the warren buffetts of the world are getting richer because of ben bernanke and yellen, i don't understand why that makes a guy who wants to get a good education and open up a new business, why does that put him at a disadvantage? i don't get it. none of it makes sense. >> amy wu somebody mentioned gold a second ago. gold has just finished its best seven-day up period since 2007. we're getting close to $1,300. i don't know if you're doing any reading on options activity on gold these days but what kind of sentiment do you see there? >> we've actually seen upside buying on the call side in not only gold but some of the other derivative commodities related. one point i wanted to make going back to the oil beneficiaries is, you know, look i think a lot of people are afraid to play energy either single stock or macro directly right now because a lot of it is geopolitical, but we know that lower gas prices will help certain things in the chemical spacen the retail space, in the derivative place and those implied volatilities haven't moved as much as you have seen on the energ

secretary paulson, secretary of the treasury came before the congress with ben bernanke, the chairmanrve system and said we have four days before the entire financial system melts down worldwide and then bernanke said i have run out of tools. this is the chairman of the federal reserve system saying i have no tools left with which to deal with this challenge. and it is going to -- the only institution big enough to deal with it is the united states treasury and it is going to be a very big number. and we said how big, and he said $500 billion and the next day it was no we were wrong, it is $700 billion. and chris dodd was the chairman of the banking committee. he called me at night and said i want to meet with you tomorrow so we write this legislation. i called senator shelby the ranking member of the banking committee and he said i want no part of it i'm going to vote against it i think it is a mistake, call bennett. i was next ranking. i callednjóxpt mcconnell. the leader and said, chris has invited me to this should i go? i want to go. he said, take -- judd gregg with you and we de

. >> you guys heard about ben bernanke is few weeks ago who said he couldn't get a refinance of his house the pendulum to be right in the strong middle where we have those safeguards in place, but also robust opportunity for americans that are responsible for middle class families to be able to buy a home and own a piece of the american dream. >> could i just throw in one more? you and i are both from washington. it has to be asked. you've been asked several time ifs you would be interested on being on a hillary clinton ticket in 2016. you said there's no plan last week. do you think you would be an asset to that ticket? >> first of all, i'm trying to do a great job at hud. that's a hypothetical i'm not going to engage in right now. i've said many times that i don't believe that that's going to happen. and, you know i hope if i can do a great job at hud, that the future will take care of itself. i have a four-week-old baby that's right. >> you tweeted you'll be on "the daily show," i guess. then i saw you tweeted you were going to be on -- >> are you jealous i didn't tweet for this? >> ye

treasury, and this is confirmed i ben bernanke, paul kanjorski said it live on c-span the morning whatned. nancy pelosi just repeated it when she was upset on the house talking about the budget resolution that passed, the only way that this attack could have happened on the people's banks, the u.s. treasury, is from the big ask themselves. ok? so our treasury was attacked on september 11, 2008 there it >> we are running out of time with the congressman, so go ahead and jump in at this point. have you heard the comments before? >> any number, since 2008, there have been any number of problems in the market which were not necessarily related what happened in 2008, the run on the treasury, i do not recall those specific circumstances, but we have the crash, we remember that. the market dipped hundreds of points and was driven by the automatic trading we see a lot now. i am not in any way implying that the banks behavior has changed utterly and completely and now they're acting fine, we saw the libor scandal, where banks were manipulating the libor rate, we see insider trading. it is still

that ultimately led to come as ben bernanke predicted it would, by two big increases in both home values and the stock market equity value, so household net worth rose $10 trillion in 2013 and that led to increased consumer spending and that in turn led to more hiring by firms more inventory accumulation and that gave us the recovery that darted in the second half, the series recovery that started in the second half of 2013. so, i think is a more general proposition when you do tax changes or reduce spending it is worth trying to calculate what that is going to do to gdp. historically, on the tax side that has not been done. so congress gets an incorrect view of what the costs are tax reductions than what the benefits are of tax increases. >> thank you. can we hear from the other too quickly. we've only got about two minutes. >> this is a big issue. i would point out a couple obvious things. first, very few bills are substantial enough in the bills, which expands the boundaries to get larger or smaller. so a couple bills will probably merit the consideration. i don't think it will change

mentioned earlier in february 2013 at a humphrey hawkins hearing then-chairman of the federal reserve ben bernanke identified the end user exemption as one of the specific dodd-frank provisions that congress should reconsider. specifically i asked him about it. i said if we were able to achieve some bipartisan consensus on steps to improve dodd-frank, what are some of the provisions you think need clarification or improvement for reconsideration? an end user legislation reform was one of those that he identified. i also asked former chair bernanke about the role of end users in our economy and whether they pose a systemic risk. he stated "i certainly agree that nonfinancial end users benefit and that the economy benefits from the use of derivatives. it seems to be the sense of a large portion of congress that the end user exemption should be made explicit and speaking for the federal reserve, we are very comfortable with that proposal." we attempted to address this issue last congress. we introduced a senate bill with six republican and six democrat sponsors that ultimately grew to 20 sponsors but