i agree with what ben bernanke said, it's not trivial. but when you say this is by the way not andy's estimate. for the labor enforcement we're taking the current 2015 so the 7.5 is an unemployment rate that i should is just using the cbo's current -- >> summarized the state-by-state stuff. >> the state level evidence is that unemployment does if unemployment is elevated any given state in a given year that that dampens wage pressures. very much like valerie -- is also the case that if part-time underemployed is elevated in at a given state in a given year that that also dampens very significantly. and if you look at the state-by-state participation rate, particularly in the earlier work we looked up prime age in this paper, it's all of those, all working age adults but also affects. as ben bernanke said, these two seem to be forms of slack. it's not just the on the public right of people who are completely unemployed, and complete out of work and searching for a job. it's people who are partly employed. by definition they are employable

so i i have the privilege for working for ben bernanke. my instinct is to call him chairman bernanke because and i was an advisor for couple of years. the major strides that the fed took under chairman bernanke's leadership on transparency were really remarkable and on this slide you can see one excerpt from a statement that the monetary policy committee of the fed adopted in 2012. it is reaffirmed each year since then. as chairman bernanke, said a few minutes ago this statement and the related policy decisions that the fed made at that time and since then really underscored the role of the employment part of the federal reserve's mandate along with its mandate for price stability. those are both important. as ben bernanke emphasized in the past, those are generally complimentary goals. now what you see here in the statement is that a promise it's a commitment by the fomc to communicate as clearly as possible. it indicates their decisions must be inform by their assessments of the maximum level of employment. to just spend a moment here to

>> i'm not here to criticize ben bernanke? charles: why not? >> he inherited the worst financial disaster in the history of the globe ever. charles: he himself admitted they were off the mark in the first six, seven, eight months of the disaster. >> you know what? we're all sitting here, we're all okay. whatever he did and however he had to move, he had no data points to go on. this is all brand new. he was more psychiatrist and psychologist. charles: do you think the fed spent too much time coddling wall street as opposed to reacting to the data not reacting to the latest hissy fit. >> he said data dependent in the last two years of his term. the fact is the data dependent was keep it where it is. he was saying data dependent. it's always been data dependent no matter what. charles: if it was data dependent, what do you think, scottie? >> she says we're not going to coddle wall street anymore. she's kicking that person out of her bed while embracing and inviting the white house more into the bed. separate yourself from the administration, beca

today former fed chairman ben bernanke you said that inflation was "too low in the u.s.."he fed need to see from the cpi report? david l: i think cpi is one metric. the fed has said they are much more focused on pc. there was a big article in "the wall street journal" talking about this. our view is cpi will be up slightly next week. nothing surprising majorly to the upside. but we will see inflationary pressures grow. our thesis is it will pick up over the back of the year. you will get stabilization and that will bring core inflation and headline inflation closer to the fed target. alix: david, do you agree? bank of america came out with a note saying that corsi pe stands at 3.5 and more could be coming? david b: i agree with david in plain gray. this temporary moment where the oil prices are down make the cpi and the cpe look unusually low. i think they will normalize. if oil were to drop another 1% at some point you will have wage growth in certain sectors. it certainly looks to me like it could be, you know, stable at 2%. alix: thanks very much. great conversation. li

when ben bernanke was testifying in congress he would say issue think we're having a little trouble in the subprime market but it doesn't look to me as though subprime market is really so large that we can't overcome that even if we had a large number of failure toes in that market. it was amazing he was saying these things to congress in 2007 when in fact fannie and freddie were on their way to insolvency, and the market was foul these very weak mortgages. he did not know that. so, if he didn't know that certainly the banks that split up into -- they're don't share information among themselves. they didn't know it either. and so i have a little bit of trouble with people who turn on the banks immediately and blame them for what happened in the financial crisis when it was so much the responsibility of the government. >> host: there's a widespread assumption from ben bernanke on down that house prices weren't going to decline. we'd never seen a generalized non flop home prices. turned out to be a great understatement. we saw declines of 30% to 40% in many areas of the country. but ther

ben bernanke three times appointed, hank paulson head of treasury, former head of goldman sachs come to the democratic congress and says the economy is going to fall apart and we have to do something the public won't like and we responded by enacting the tarp which will go down as the most unpopular successful thing the government did. even when we went by the way in doing financial reform, ben bernanke is the fed, hank paulson the treasury and the bob dole protege worked with us. much of the legislation that passed was their idea. even the legislation, it was bipartisan in that the bush officials who knew about the crisis worked with us even though all the fellow republicans voted no. >> hunt: it was dodd frank, of course, and complicated. in retrospect, can it be made less complex now? >> no, part of the problem is people said why is it so big? in the new deal they passed two bills in the securities industry, one bill dealing with banking, one bill dealing with housing. opinion had originally thought we would have seven or eight separate bills and chris dodd says, do you know what

number four, ben bernanke. now he's going online. welcome, then.ting a book and will start blogging now. he will blog about economic and financial issues and addressed questions by readers. we get to see more about then. julie: it is pretty cool. i read his first blog. let me paraphrase. he says "don't blame us or county doesn't really say that, but he says it's the economy -- "don't blame us." he doesn't really say that, but he says is the economy that needs to justify an appropriate level. i'm sure he's is in him to lecture away, and i'm probably vastly oversimplifying. but he did defend the set -- defend the fed against some of its critics who have said that you have artificially inflated asset prices and or members of congress who have criticized the fed. it's an interesting piece. bob: i'm trying to become a guy is. then who? -- ben who? ben bernanke? betty: i like his comments about not being under the microscope by the fed watchers. bob: i think about alan greenspan though. yes primus lost all credibility -- he has pretty much lost all credi

it rose to that level of concern for ben bernanke.isors has the klein to comment on the report itself and we don't know. did they have good intelligence and analysis of what was happening, that remains to be seen. for members of congress, including jeb penciling and elizabeth warring -- elizabeth warren have asked for information. scarlet: peter cook, this was back in september of 2012. the leak happened in october of 2012. it's now 2015. why did it take so long? peter: the investigation happen right away. everything has been private. lawmakers are trying to shed light on what happened, and this is part of a larger effort to expose the fed to more scrutiny up on capitol hill. scarlet: coming up -- thinking big. the country's largest mobile operator wants to get larger and it's not likely to take no for an answer from a rival it wants to buy. ♪ scarlet: the number three mall operator in the united states has rejected a $16 billion hostile takeover bid from simon property group will stop the battle is just beginning. our next guest says

ben bernanke three times appointed to the office by bush. he was a good republican.hey come to the democratic congress and say the economy is about to fall apart and we have got to do something that the public is not going to like. we respond by helping them past the tarp which will go down in history as the most unpopular successful thing the government ever did. we worked with them very closely. when the bill came to the floor on the house, we get them many more votes than the republicans. even when we went to financial reform, and this is something that people do not focus on, ben bernanke at the fed and sheila bair, the bush appointee the bob dole protÉgÉ, worked with us. much of the legislation that was passed was their idea. even the legislation was bipartisan in that the bush officials who knew about the crisis worked with us, even though all of the republicans voted no. al: there is dodd-frank, of course. in retrospect, could it be made less complex? senator frank: no. part of the problem is why is it so big? in the new deal, they passed two bills. one dealin

ben bernanke hardly needs an introduction. of course the chair of the federal reserve from 2006 to 2014 around a member of the fed board of governors before that. he has made more important contributions to our understanding of macroeconomics, economic history and monetary policy than i have time to note here. i have always thought we were extremely lucky to have him where he was during the great recession. the other thing many of us appreciate about ben harks back to the old adage, if you really understand something you can explain it to anyone. ben has tried harder than many who sit in such influential positions to be extremely clear to avoid obfuscation and tell it like he sees it. i was one of many highly influenced by his important insights decade ago what he labeled global savings glut and impact on economies across the globe. you can imagine my excitement when ben graciously agreed to reflect on those dynamics today. please welcome fellow blogger ben bernanke. [applause] >> good morning. thank you, jared. thanks for the

david: former fed chair ben bernanke standing up against charges that his zero interest policy rate,hich the fed is still practicing of course is killing seniors and all the other savers out there. here is what he wrote this week. quote, i was concerned about those seniors as well but if the goal was retirees to enjoy substantially higher real returns than the feds racing interest rates prematurely would have been exactly wrong thing to do. is ben right or do seniors have a point? former chair of council of economic advisors marty feldstein has some views on all that some of which were in the his article in the today's "wall street journal" which everyone should read about interest rates. marty feldstein, thank you for coming in. for seniors, other savers, particularly seniors, don't have a lot of time or put their money in the stock market, it is very simple they're losing money and blame ben bernanke. are they right? >> i don't think so. the way that seniors got hurt in the past was by inflation. when we had higher inflation, we also had high every interest rates -- higher interest

. >>> from fed chief to blogger, former federal reserve chairman ben bernanke is writing about economics and finance on the brookings institute website. he's a senior fellow at brookings. he defended his actions as the head of the central bank to keep interest rates low. not only did he post his first blog but he also made a rare public speech saying rates may not remain this low fo >> the downward pressure on global interest rates will probably moderate somewhat over time. the pressures for the trade deficit of the united states will probably moderate somewhat over time. i think those are positive factors that need to be taken into account thinking about growth. >> until today mr. bernanke has only made limited comments on the economy since he left the fed last year. >>> on that note, that does it for "nightly business report" for tonight. thanks for joining us. i'm sue herera. >> i'm tyler mathisen. that's it for me too. have a great evening, everybody, and we hope to see you right back here is pleased to support miss fisher's murder mysteries on public televsion. barnes and noble has

this is ben bernanke's blog. alan greenspan never had a blog, did he? that is a scary thought. [laughter] tom: it is the new technology and the new information's flow that we see. i wonder if janet yellen is plus plus on a former chairman having a blog. >> it is always good to hear the opinion of former officials. there is no shortage of opinion on this item. paul krugman scott sumner. tom: it is a raging debate. >> it makes us all smarter. brendan: let's stay with the blog for a second. we have been trying to figure of what forward guidance looks like. i wonder whether this is not just a different form of forward guidance. having the former fed chair explained the current fed chair is doing. >> clearly, in terms of the way they conduct policy, there is a lot of continuity between janet yellen and ben bernanke. tom: what did you learn on friday? brendan is already looking at his bracket for the weekend. there is a major speech by chair yellen. >> she told me she is going to go this year, most likely, and that thereafter, they are going to go -- tom: what are the implications fo

ben. we're still listening pretty closely. in his first blog bernanke tried to explain why long-term interest rates are low and said it was part of a long-term trend. not an appear rigs. he added that recent low real interest rates, that is adjusting for inflation are not the result of fed policy. "except in the short run. real rates are determined by a wide range of economic factors, including prospects for growth not by the fed, bernanke said. kind of defending those low rates and his policies in the past. >> all right, steve. thank you very much. mandy. >> thank you very much. well what does patriots quarterback tom brady do after winning the super bowl for the fourth time? yep, that's him. jumping off a cliff. you just have to see this to believe it. plus, why this house is such a huge deal right now. take a good hard look at it. you know, will not how much money it sold for. financial noise financial noise financial noise put our global active management expertise to work for you. mfs. there is no expertise without collaboration. hello. i am here t

. >> former federal reserve board chairman ben bernanke is the keynote speaker today at an event hostedy the center on budget and policy priorities. it will include a discussion with economists about policies that can help restore and maintain full employment in u.s. labor markets. we'll have that live at 9:30 a.m. eastern here on c-span2. >>> now the supreme court oral argument on whether texas officials must issue a license plate with the confederate battle flag on it. in walker v. the texas division of the sons of confederate veterans the court is considering if the state can veto messages on specialty license plates or if that violates free speech rights. this is an hour. >> we'll hear argument first this morning in case 14144, john walker v. the texas division of the sons of confederate veterans. mr. keller? >> thank you mr. chief justice, and may it please the court messages on texas license plates are government speech. the state of texas etches its name onto each license plate and texas law gives the state sole control and final approval authority over everything that appears on

in march of 2009 ben bernanke went on 60 minutes inside i think green shoots out there.ting nathan sheets you ran the international division of the fed, he said in the realm of green shoots, the forecast is like a small potted plants more vulnerable asparagus garden. hindsight is 2020. janet yellen thought they would be raising rates by 2012 the end. we're still waiting. san francisco fed chairman at the time. charlie plosser just for -- retired last sunday. obviously a get it wrong. they are in the middle of the hurricane. real-time constantly being updated. desperately trying to keep the banks from collapsing. you can cut some slack as to where they were and what they were saying in real time. >> do these transcripts tend as a whole to flush out things we are a new with more details or do they rewrite history? >> they do not rewrite history all that much. you get a better sense of how they were thinking about the problem, and what their thinking was when they came up with the programs that they did. >> our people as a whole less impressed? >> it has not been long enoug

if you could get $250,000 per speech like ben bernanke, you probably don't even need a mortgage. matt: princeton professors are not reliable credit risks. thank you so much for joining us. we really appreciate it. mike mckee, always a pleasure regardless of how you are doing in the bracket challenge. olivia: still to come, matt and i are just getting started. we will head down to lynchburg virginia. ted cruz has made it official. he is running for president. we will have live coverage. mark halperin and john heilemann will be anchoring coverage online. ♪ matt: time to bring you up-to-date on the top stories of the morning. sales of previously owned homes came up short for a second month in a row. sales were up one .2% in february but below in annual sales rate of 5 million homes. the real estate industry is struggling because of higher prices and a lack of inventory. the president of the cleveland fed says in interest-rate hike in june remains a possibility. she told the fed's removal of the word patients made to june -- patience made june a viable option. >> we are not on a pres

rick what do you think about ben bernanke's new hat as blogger? >> i'd rather talk about gdp. you know i think gdp is more like an ice cream cone. you know you get a takeout on a hot day, it looks great while you're driving home. but by the time you get there it didn't look like an ice cream cone anymore. that seems to be the level of growth for every quarter. but as the quarters wear on it always seems to lose a little steam. the fed missed an opportunity with the strong second and third quarters of last year to normalize a little bit. now they're trying to swim against the current. you know, if i look at europe one of the guests pointed it out, or maybe it was you, bill coming in today, they knew it was going to be an up day. every currency is weaker against the dollar. pretty much every sovereign market from the shanghai to the dax. a very digital world. why? what is the one common threat that unites all economies besides debt stimulus. china, when they do it they usually do it big. i think the dynamic in today's market is pretty clear. >> that's true. good point. china mak

a charge that burns one ben bernanke, the former fed head blasting off in a blog that he won't take itre. thanks to those low rates, the economy is coming back so are the markets. so everybody shut the hell up. okay. he didn't really say that part. but he was very clear when it comes to this fed bashing. not so gentle ben has had enough of this. to katherine and david

the front lines there in singapore all the merging markets around us that tamper tantrum when ben bernanke said he was going to tamper off the quantitative easing program. we saw huge reactions in the currencies in time all theguests have been saying that they're better prepared. they put reforms in place. if you take a look what happened to the emerging market currencies like the peso and the lira we've seen the reaction over the last 30 days or so. >> absolutely. and the u.s. collar as you've been saying has been rallying against all currencies. because the data continues to be so impressive and keeping rate rise expectations. that's why i was quite surprised by the settlement u.s. equities on friday. the data it was a better than people were expecting but it wasn't like a blow out. and rate rise expectations were -- and the comments to congress in june or september. they haven't really changed. i think it's more than just a rate rise expectations. i think it points to the fact we haven't had a major correction in u.s. equities since january. we're six years in the rally. we have to expe

ben bernanke doing a blog now. okay?f the things i saw was that monetary policy 98% talk 2% action. maybe on normalization. how did they get a $4.5 trillion balance sheet without a lot of talk? >> a lot of action. i'm not sure the blog will be good to explain certain things. i read the blog. >> you think he's going to kick the tires? >> absolutely not. he can if you want to get an education like today, he give us an education. so for all those who we're not familiar with excelling in economics, it was a very interesting read. but you're not going to hear any criticism on the fed. >> another thing that has been coming up to the forefront is the notion that you brought up at the top. stability should be a key objective with central banks. but yet we've had stability with the downward trajectory to prices. there is no velocity. your thoughts. you've referenced that there's many ways to look at deflationary issues. can you tell us? >> good deflation, two good columns over the last couple days. very good talking about the dif

here is what ben bernanke had to say.video clip] ben bernanke: the real interest rate is what you actually need. the fed can get the interest rate down to minus two if they have an inflation target. that is a little bit strong. most economists would argue that negative real interest rates there are got to be things that are productive ultimately, at least in a normal growing economy. when i was on the panel when larry first introduced this point about stagnation, i reminded him about what his uncle, paul samuelson, taught us in graduate school. he argued that religious rate could not be below zero -- real interest rates could not be below zero because in that world it would be popular to knock down the rocky mountains just to save the gafs to drive the great. please don't take that literally. but interest rates of -2%, it's questionable whether that is true. and if you think about the fact that investment is not just facebook. it involves housing and office buildings and consumer durables and many other types of long-live

. >> well we've been yelling so much about janet yellin do we even remember ben bernanke?heard from him in a while, but he spoke today at the brookings institute in washington d.c. when ben bernanke is speaking you better bet your bottom dollar that steve liesman is going to find him zoosh he has been on the speaking circuit talking for a fee, but not necessarily always publicly. very rarely sitting down for public interviews with the media. this time on tape and he was at a conference this morning at the brookings institute where he actually works and where he is completing his book due out in the fall and he was asked about this issue of a bill that would require the federal reserve to follow a monetary policy rule or formula. you can bet what he thought about that. if the fed is always taking actions like that and congress is pushing back and saying no you're violating the rule i think that is less direct of the fed, but i think it still is a way in which congress would exert undue influence of monetary policy. >> so the former fed chairman joins the current fed chair i

look at our own s&p 500 thanks to ben bernanke and playbook.okyo, japan market is nowhere near the all-time high, and they've been messing with the quantitative easing, lower schemes for a while. long-term, jim, where would you rather have your money, in america or the hottest third-world country? >> look, it's a global economy and a global investment universe, and i can understand tactical investing overseas, but if you were a martian and you came down and looked at the world, you'd want to be in america, you would want your assets and family in america, this is my bet. >> except for carnival and brazil, and take a few american dollars with me, louie, what do you think? >> when you invest internationally, you have to have a strong currency. there are hot spots like india. the folks in india are spending less money on food and energy, so they have more disposable income and passing china in gdp growth. that makes sense, if you go where the currency should help you, you wouldn't want to invest in russia eight months ago. charles: if you want int

if you look at in 2007 ben bernanke was telling us that all was well and we didn't have to worry about subprime and all of that. and that's the same time when i told all of our clients and people that have listened to my radio show to get out of the market and stay out for all of 2008. and then,, you know -- so you have to look at when things are at their very best that is the time you have to start getting worried. and when everybody thinks everything is going great and life is good that's the time when you start preparing for the worst, in my opinion. >> all right. well, provocative thoughts and got everybody talking about it. thank you all for join us today with your thoughts. appreciate it very much. omar, safe travels back to san francisco. >>> we're heading to the close with about 50 minutes left in the trading session here. while we were talking, kelly, the nasdaq did briefly touch 5,000. it's flirting with it here. we'll see if we can close above it for only the second time in 15 years. but meantime the dow and the s&p are about half a percent lower right now. >> all right. muc

i know ben bernanke is fond of sayings, well we wouldn't have an economy if we didn't keep those ratesow but that has been going on for a long time. where is this economy gone? nowhere, nowhere. we haven't been at 3% gdp growth in what, nine years? >> yeah. it has been a long long time. boy would i take 3% growth. gerri: yeah. >> we're kind of inching toward that one issue one word of caution here, gerri, because it is important. we did, i lived through era with really high interest rates. because that is when we had really high inflation. tough give the fed credit for holding inflation at bay. only had one or 2% inflation over past four or five years. that is the primary job of the fed to make sure we don't vin nation. seniors will not benefit if we have five or six or 7% inflation as we did in the '60s and '70s either. we have to make sure we stay on that narrow road. let's gradually raise these rates. as a way of giving seniors a better deal on their money. gerri: they need some kind of a deal. >> by the way, gerri, before we go. i have to say this. last time when we talked about co

david: sabrina, one thing this market has done since ben bernanke came on, some people would say under greenspan, they have been too differential to the marketplace. they haven't been caring enough for main street. they care more about wall street. what do you think? >> there has been sort of a cautiousness here but reasonably. he want to make sure we avoid the volatility we're talking about but i think at the same time there is other side of the coin we have this ad hoc sense, we have this word patient keeps being thrown out there. the sense that we don't know when this is coming. of course markets don't like that kind of a surprise. david: i wonder if janet yellen will stand up to the markets. so far i haven't seen it from the fed. moving on or maybe even backwards, there is a new rule that effectively denies federal emergency funds to those governors who won't pay taxpayers money on global warming policies. but, doesn't this cross the line in dictating political beliefs, sabrina? >> first of all, who knew fema was in the business of regulating free speech, right? this is sort of unb

anyone remember marcy yelling at ben bernanke?n forever and ever between the congress and the fed and it will continue to do that. i didn't see what happened last month as being anything out of the ordinary. betty: thank you so much. thanks to matt miller and olivia sterns. we leave it there. still to come, we are staying on the market. a big week for homebuilders. janet yellen said she will change the rate hike sometime down the road. interest rates are being kept at record lows. more on that interview next. ♪ betty: trading just underway so i want to get back to scarlet fu or a look at the early moving action. scarlet: homebuilders is on my list. it is trading at a two-week high after lennar reported results beating estimates. new orders rose 18%. the ceo says early signals from the spring selling season indicate the housing market is improving. you are seeing gains in d.r. horton which is their bigger rival. energy shares are the worst performers. the s&p has dropped exports six points. to oil companies pay selling pressure fro

and federal reserve chairman ben bernanke is starting a blog.e says that now i am a civilian again i can once more comment on economic and financial issues without my words being put under the microsoft -- under the microscope by fed watchers. he will occasionally -- he is a fellow in residence at the brooking institute. welcome back to street smart. i am alix steel. george soros is saying in an interview with austrian newspaper that he is prepared to invest $1 billion in ukraine if the west steps up its eighth. will it work? that is a pretty bold statement. andrey: the key is if the west helps premium i think that if the west steps up. i think they will step up. i hope it will be sooner rather than later. if the government is going to put the money on the line they would be willing to go in as well. alix: what is in it for private investors? ukraine is trying to reach investors in order to get $40 billion in relief aid. why would some of you want to put money their? andrey: 15 billion out of 40 is actually some of the relief given by private in

-- or ben bernanke? gerardo: not necessarily.n by local politics so there have been a few scandals corruption that has been driving. olivia: 30 college kids went missing -- gerardo: exactly. so what you have in mexico is two realities. one is stricken by the structural reform agenda as good as it has been over the last 30 years, but at the same time, the cyclical dynamics and this scandal are generating concern at the social and the corporate level. that is not good for economic activity. tom: gerardo: thank you so much carl riccadonna as always, thank you so much with bloomberg intelligence. this report was on fire at 3:00 a.m. euro $1.0613, sterling was below $150 weaker british pound, and dollar index making history over the last 12 years ago, about $100. it is an defendant u.s. dollar, which means washington and the capital stand tall as well. we will have much more. there is washington on a perfect morning as well. we have much more for you, another hour of "bloomberg surveillance." stay with us. ♪ tom: the u.s. dollar reach

tom: ben bernanke spoke about it with his inflation speech in tokyo.s to tools for corona at the bank of japan for someone is, using a bully pulpit, saying, i have done this for waging creation -- for wage gains. the other is that you can do some programming with the companies to get them to do that. if a valid tool? -- is that a valid tool? rubber, i suppose so. it's a kind of moral leadership. corona has downplayed that. as someone who is in a position of authority who has a moral purpose something to do with fairness and equity for everyone, that is not in our models. brendan: should it? robert: i think it is underestimated. the power of a central bank chair is very much the power of -- you call it the bully pulpit. a get back to, what is goldman sachs about? what he says matters. olivia: we will discuss whether you are saving enough for retirement when we come back. ♪ tom: good morning, everyone. well, watching it carefully, a bit of a bounce, $42, $43. olivia: netanyahu is surviving a big election victory. the likud party capture the most seats in

chair ben bernanke is making remarks right now on employment. we will show you some comments and the round table that will follow on a companion network c-span 2. >> the edward m kennedy institute dedication ceremony. we were here from president obama. secretary kerry was expected to be part of the ceremony, but he is still in switzerland. he is working on the negotiations with the iran nuclear activities. we have a two-minute warning, so we expect the ceremony to get underway. this is live coverage on c-span. [captions copyright national cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [indiscernible] ♪ >> ♪ this land is your land this land is my land this land was made for you and me. this land was made for you and me i've roamed and rambled and i followed mty footsteps to the sparkling sands of her diamond deserts and all around me a voice was sounding this land was made for you and me this land was made for you and me as i went

ben bernanke becoming a blogger today. this is news. >> yeah.e's basically been speaking at private affairs for lots of money. well into six figures. and now he's sort of said i left the fed and the capable hands of janet yellen. i can comment on, you know, a current economic issues. >> but does he do that and get into fed policy? >> he does a little bit. except he does it in a way that is not all that controversial except for one thing that we can talk about. let me say what he said. he's penning this blog at the brooklyn's institution and he's defending low interest rates the way it is. here are some of the things he said. he said low interest rates are not a short term aberration and he points out something that has been going down for a long time. he complains about what he calls confused criticism of the federal reserve. basically saying that the fed is setting rates commence rate with the market and is trying to affect real rates and real rates are determined essentially by the market. one area where we gets into a little bit of controvers

i think it remains very much a ben bernanke legacy market that is a lot like an einstein market.ive. when you look at the asset classes, if you ask yourself, do i want cash? you have central banks battling deflation. stocks look pretty good here. they still do. that said, intermittent pullbacks are always a possibility. joe: are there particular areas that you like? >> we like discretionary, technology industrials. our favorite contrarian pick his materials, which did terrific out-of-the-box -- is materials, which did terrific pfout fo theof the box. we believe that europe will continue to improve and japan, my gosh, they are doing better. it is all relatively speaking. progress, not perfection. betty: you mentioned economic numbers. it is a big week for economic data. we have a big list of what is coming out. home sales out in half an hour. bpi new-home sales on tuesday. durable goods, jobless claims. which of those will you be watching? john: i will be watching all of them. i expect that because job wage growth has lagged so much, that we might see a modest improvement in the p

olivia: ben bernanke. committee gave him a standing ovation because he was named "time magazine" person of the year. he gets up and goes, "the power of the media." [laughter] they are dry. they are not on their job for the sense of humor. janet yellen wanted to stimulate sooner rather than later. she was very vocal on that. tom: what is the wells fargo call? gina: still june. sticking to it. olivia: 18% according to the fed fund future rates are predicting june. tom: that is also when the red sox will win three games in a row. [laughter] olivia: a tough thursday morning here on "bloomberg surveillance." we are going to go to nepal. 224 people were on board a plane, though no people were injured. it occurred during a fog that significantly reduced visibility. the crash occurred in the paul's only international airport -- nepal's international airport. all flights are been rerouted through india. tom: that is really cool. it worked. olivia: you see a plane land in the river. i'm going to be taking off my sho

but if i were janet yellen -- actually, if i were ben bernanke -- tom: which you come out and postponedr. sri-kumar: they're not in the habit of doing that that far ahead. they need to do the closer to the date. i would imagine if you had -- tom: control room, please, stop showing my bentley will be talked about millionaires. it really upsets me. let's get to photos. olivia: as many of you know, tom is a space geek, into nasa. the number three comes from utah where engineers are preparing to test a new rocket this morning at 11:30 a.m. this morning, containing the most powerful booster ever. all tom wanted to know this morning is how it stacks up to the thrust of the saturn five. it is 10% more thrust. tom: very cool. so it is bigger than that china was market we remember from the movie "apollo 13." olivia: the enormous explosion you're seeing is just a test. tom: it is not going up in the air. this is a test on the ground. olivia: exactly, a rocket test. tom: what else? olivia: this is fun, do you know what apple's logo truly looks like? sri i will give you five seconds. look at the sc

you have to go back to december 2013 when ben bernanke start the taper.emember that yellen did not start the taper. first, taper the asset artists then raise interest rates and then reduce the balance sheet. it was all based on this idea that the u.s. economy was getting stronger and could bear the stronger dollar, but the fed data is coming in week, but the strong dollar is deflationary, so you have this conundrum. the fed wants inflation, they say they want to raise rates but raising rates makes the dollar stronger, which is deflationary. so they are moving away and none of it makes sense. if they raise rates, look out below -- you will see emerging markets crash, probably worse than 1997. if they don't raise rates, the markets could rally because that is the equivalent of a rate cut. alix: you make an excellent point and i have a chart to bring up to talk to that point. we're looking at the dollar index and 10 year treasury price. we have seen a diversions over the last few weeks, but all of the sudden, we see them rally together. my assumption is easi

we heard the same sort of distancing from exchange rate discussions when ben bernanke he was essentiallyo violating the dollar. -- was essentially evaluating the dollar. >> how much more breath you think that has? michael: the dollar has been tightly correlated with oil and inflation expectations. it is hard to separate what's going on with the dollar and inflation expectations. all of them get affected by the fed to the same degree. oil goes up, inflation expectations go out. they are equivalent for the outsider. alix: we have heard janet yellen diminished -- dismissed the plunging oil values. what did you think? michael, do you think she was taken oil more seriously? her inflation forecast was cut in half. michael: i thought her comments on oil were consistent. i thought it was interesting that the inflation forecast came down. the headline inflation forecast was unchanged, if not slightly higher. i thought it cut in a few different directions. >> it's not so much they are incorporating oil, but rather acknowledging that this move in the dollar will be a big deal. i hate to focus on th

. ♪ ♪ resort -- federal reserve board chairman ben bernanke, go to www.c-span.org.> we turn once again to the iranian nuclear negotiations hours before the deadline that has then set by the party although coming out to cbs news the deadline could be extended. but for the next hour or so we will be discussing this issue and the phone lines are open. we are joined by a mark dubowitz foundation a defensive democracy and an author and former official of the state department department, hillary mann leverett. if the deal does come together why should the west trust iran? >> guest: that is not have relations have been. i think ronald reagan famously said the trust but verify and this is the enormity of the opportunity. it is the opportunity for the united states to have exclusive monitoring with the mechanism that leads to with the negotiation with a vested interest and they think that is the only thing that can work. what we tried with iraq with israel now we have that disaster. and it went badly not just because of the invasion but we were forced to trust washington but

ben bernanke and yellen punishings savers said stop being small-minds, everybody else is benefiting.ell that to the burgers of bavaria so to speak. >> fed's balance she's, talk about the trillion dollars on the balance sheet everybody maybe what gets lost three times that amount in china. talk china. >> well, china, you know it's an enigma because you have to understand what they're trying to do and it's a difficult situation. >> we can make it simple. most likely advertise the new group getting together to form new policy that they're aiming for 7%. boy, the whisper numbers, significantly less. can the u.s. maintain a nice glide path towards 3% growth if the rest of the world is having a problem and germany's distorting the growth numbers of the eurozone. >> no. i've been trading currencies for 37 years and watched the dynamics the world's far different place. when they use too talk about united states could be the locate comoatsive of the wore. >> japan got through their 20 years of no growth because there was growth in the rest of the world. there's not enough growth in the rest o

it is considered by many many economists, including ben bernanke, to have been worst mistake the fedver made. janet yellen is not going to repeat that. she is going to continue to be patient, even if she doesn't say it. she wants to normalize rates, not begin tightening per se but get us off of the emergency level. and that's what i think she's going to try to attempt to discuss this afternoon at the press conference. >> quincy let's be clear, i believe in 1937 the stock market actually fell by a third, as a result of the central bankers turning round. presumably, this fomc if it saw the markets falling precipitously, would be back in with something else. the markets are not going to fall by 30% for as long as this fed is in charge surely. >> no. it was more than that. we started to see tax hikes to pay for some of the programs during the war, but it was the cumulative effect that knocked the economy down. look she -- in 1994 janet yellen advised greenspan, according to the fed minutes, look, i know we made be behind the curve in terms of inflation, but let's not go out there raising

it had a job to do which was of course patch the economy together, save it, that was ben bernanke's jobrmalization. what a find interesting, rick, here's this diminutive woman and the way she's portrayed atlas holding the world on her shoulders. it's an awesome responsibility but there will be normalization over time. we're huber accommodative. even if the base rate is raised june, september, whenever it is it's still going to be very accommodative monetary policy. what worries me is that people that watch the show particularly the big money traders, are just completely dependent on the fed. look at the volatility the last few days. whether one word is interpreted one way or the other. so, yes, we have as the fomc has conditioned the markets, i think the markets, however, have a responsibility to do their own work and to expect that as the economy improves things are going to change over time the yellen committee will engineer normalization, however long that takes and i think the markets should get prepared for. what i don't like market commentators blame the fed for their own problems

ben bernanke can't refinance his mortgage, right?ney to these guys except high net worth individuals who have some expertise in the field that they're looking to invest in and that's who's getting the money. >> is there a concern that now it's becoming just, if nester doesn't have that 5ka to spare, doing too much crowd funding and too much angel investing? >> i think the opportunities are there. there are opportunities out there. it does not have to be the individual investor, with $5,000, that does not understand what they're investing in. there are other opportunities. >> got to leave it right there. >> real quick. >> real quick, you know the average amount spent gambling year in the u.s. is $30 billion or $40 billion a year if not more. >> yeah. >> that's for more than this type of investing style. if we're worried about people blowing their money, you know, camp out in las vegas. >> yeah, that's a point. an important one, steve. thank you for being here. steve brotman of alpha venture partners, a founder. guy acomedamadami, than

ben bernanke left a legacy for janet yellin saying if we repeat the sins of the 1930s, that is the federal go into an even worse hole than we were in six years ago. i don't believe janet yellin is going to undo the good that's been done but i do believe that places outside the u.s. like europe are fwegt into the position we were six years ago. europe and it's up 15% year-to-date. tomorrow ecb begins buying its quantity takive easing program that causes the six-year bull market to cause prices to triple in the stock market over the last six years. >> all right. remember well, always say don't fight the fed. now it's going to be don't fight the ecb. that's it for the first hour of power. i'm going to disappear. tyler, are saying and doing double duty. >> absolutely. >> thanks, mandy. >> it is 2:00 p.m. on wall street. do you know where your anchor is? he is out in colorado on vacation? it's noon in silicon valley. welcome, folks torque the second hour of power in for brian sullivan. melissa lee is over at nasdaq. we kick things off with the triple digit slide for the dow. you're looking at a

you're a good friend of ben bernanke's he's just come out and starting a blog.the masses? >> ben's a very good communicator, that's terrific. i'm not sure i would have recommended that he become a blogger in this day and age, but he's got his views, he wants to express them and that's an effective way to do it. >> why not? why wouldn't you recommend he do it? >> well, i think that the former chairman of the federal reserve has some serious thoughts that need to be shared lessons learned. it's not obvious to me a blog's the best way to do it but this ben's decision. >> i'll give him credit for the idea that, look this is something accessible to everyone, a lot of guys come out and say i'm only doing it if you pay me six figures to come it a speech and it's i an elite group who hear it. >> democratization. >> of course. >> almost every fed chairman's legacy is set in the years after they leave than was true of paul volcker, extremelien popular, we look back on him as a hero. alan greenspan's expectations and reputation have changed in the years since he's gone for