today, we are going to hear from ben bernanke. >> i am gary kaminsky. we are bringing you the best moments from the interviews through the gentleman who let us through the 2008 financial crisis. >> this show has never been about solely investments. we have talked about anything from times square in new york city, the new wall street week. >> humble southern beginnings and a british private school. larry summers and ben bernanke came from different backgrounds, but both love the baseball, harvard, and the white house. >> what was your childhood like? works a small southern town. economically challenged. agriculture and textiles. our textile -- town, my grandmother moved in 1941 and started a drugstore. they were sort of like the practitioners for the town. people would ask them about i worked in the drugstore. it was a good experience in many ways. a chance to see how people live in a small town and how hard it is to make a leaving -- living. >> you talked about the struggles. how did that set you up for later in life? >> my father was the town pharmacis

ben bernanke says the greenback may have the. the former fed chairman leaves much of the appreciation of the dollar may have already happened and we may not see much more. the currency has rallied against pastts peers during the two years on speculation the fed would boost borrowing costs in contrast to other major central banks that were easing policy. chief executive officer's have turned pessimistic on global according to a, new survey. a poll of 1400 ceos from 83 countries found just 27% expect the economic outlook two improve this year, a fall from 37% last year. 23% said it will worsen. >> i think the ceos are really concerned. thisa less positive result year than just a year ago. the trend line is not good. concerns about the renewable economy and the volatility that exists. secondly, concerns about the geopolitical issues out there which has all the potential to continue to be disruptive and unstable. and the together outlook for 2016 is not as encouraging as most of us would have expected at this point in time. trump'sna

ben bernanke weighs in on the currency wars. you're watching cnbc. in business worldwide. dai. with over 6 million prescriptions and counting, it's the #1 prescribed sglt2 inhibitor that works to lower a1c. invokana® is used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. it's a once-daily pill that works around the clock. here's how: invokana® reduces the amount of sugar allowed back in to the body through the kidneys and sends some sugar out through the process of urination. and while it's not for weight loss, it may help you lose weight. invokana® can cause important side effects, including dehydration, which may cause you to feel dizzy, faint, lightheaded, or weak, especially when you stand up. other side effects may include kidney problems, genital yeast infections, urinary tract infections, changes in urination, high potassium in the blood, increases in cholesterol, or risk of bone fracture. do not take invokana® if you have severe kidney problems or are on dialysis. stop taking and call your doct

it looks like out weber is diverging from ben bernanke . bernanke talking about the dollar strength may be petering out. mr. axel weber thinks that we could be happening euro parity yet again. here's my advice. we always have practical advice -- low oil prices, low dollar markets, time for you to buy a ford pickup truck and drive around the countryside. it is clearly the smart play. that is what everyone wishes they were talking about. mark: i will take that advice home. i will tell you what my other half things. you also quizzed him on the ecb. of course, he has a previous form when it comes to the ecb. it meets tomorrow. he is not confident the ecb will meet its goal this year or next year. he is also not thinking the ecb will have to do too much more on the stimulus front coming is he? more, but he much thinks they will do a little bit on lowering that negative deposit rate and bring it down further into negative territory . it must be said that axel weber 's crystal ball is pretty good. people make outrageous predictions about the price

there was no one person such as ben bernanke in 2008 who said we have a real problem. someone has got to act and that someone is going to be me. over time the battle kept going on and during wars the government wants cheap financing and the fed has to go along with it. this happened after world war i to about 1951. the rates were still very low, 2% and became clear that the fed thought was time to let rates go up. harry truman was just aghast. he didn't understand her except for a moment the idea of a federal agency and when he couldn't get his way in private he announced public we at the fed had agreed to keep rates at 2% which they had done. he fired one of the board members and appointed someone else from the treasury to be thought with the his pigeon on the federal reserve board. they wouldn't back down and from then on it's been a more independent agency and powers are raised in washington. i will say one of the effects of the recent crisis is the federal reserve is work much more closely with the treasury. bernanke and now yellen. they meet often with the treasur

. >> i am ben bernanke. >> larry summers. >> david rubenstein. >> jeff smith. >> david the tray us. >> i am watching wall street week. >> iwatch wall street week. >> i am watching wall street week. >> i was a guest on original wall street weekend and pleased to be on the brand-new one. >> and you should, too. quite spanking on wells fargo, bank of america. j.p. morgan chase. financial sectors, spider etf. to help minimize stock risk to why invest in a financial stock when you could invest in the entire sector of s&p 500. read it carefully and visit us on the web. >> you can join millions of americans we are available online. world. your iphone or android. do it today and find out why millions are tuning in. for real news, better talk. >> sponsored in part by morgan stanley, where capital creates change. >> i took an interest in helping a gentleman by the name of chris kyle, who wrote the book, the american sniper. became a fantastic movie directed by clint eastwood. tell us a little bit about chris kyle and your experiences with him? kyle: i met him through enter a more disciplined an

ben bernanke said the greenback may have peaked. we may not see much more.he currency has rallied against all 16 of its major peers over the past two years. chief executive officers have turned more pessimistic on global economic growth. that is according to a new survey. a poll of more than 1400 ceos from 83 nations found just 27% expected economic upper to improve this year. said it could have been worse. the ceos are really concerned in 2016. it is a less positive result this year than just a year ago. the tread line is not good. concerned about the global economy and the volatilities that exist. secondly, concerned about the geopolitical issues. it is all the potential to continue to be disruptive and unstable. you put the 2 together and the outlook for 2016 not as encouraging than most of us were hoping for at this point in time. caroline: we will get plenty -- davos.f demo's jonathan: it is day one here in switzerland. obstacles is here and had an earlier morning that i did. you have already kicked things off. economy, does the man of a decent read on

we have gone from a government in china that communicated well, and ben bernanke communicated well, sove janet yellen. gillian: there are three areas, one, you need policy transparency. one day they say they are trying to intervene in the currency market, the next day they vanish. that is not help confidence. they need political transparency. today we had another billionaire banish -- vanish. and data transparency. a $1.5 billion hedge fund, a successful one in london announced this week it is shutting down because the markets in china are so un-transparent it is hard to invest in a rational way. it was an emerging market fund. that is knocking on investor confidence. henry: investors moving into the emerging market are going to need to be able to move away from a hedge fund model. they will have to lock up their money for a longer amount of time. if you think about it, the volatility that we are seeing is going to be higher, going forward. by definition. gillian: i agree. i understand, right now, anyone hoping to make short-term gains on a market like china, might as well take their m

. >> ben bernanke explicitly cited it as one of the reasons that quantitative easing would work.t of their is story of upside risk to the u.s. economy. we have been puzzled. last six months, it looked like the savings rate was moving down, but it has been revised up, drifting upwards. >> we have not seen much wage gains. effect has come because asset values have because wages have increased. >> you have consumer spending growing more slowly than income gains. you would have thought the wealth gains would be making people feel more comfortable and lowering that savings rate. that is part of the key reason. it of ptsd from the financial crisis where you had a sharp move down in asset prices. maybe people aren't believing it. someonee flipside, wants to buy a house and they are seeing house prices surge, could there be a reverse to asset prices? people are on both sides of the market as you point out. at the end up with the day, there has traditionally been a positive wealth effect from housing prices. it is a no-brainer that increases in equity prices are like manna from heaven. >>

ben bernanke learned it. it, and when he realized he underestimated the magnitude of the problem, he used his engaged in a he two-pronged maneuver, which is of theu lose control car, you have to turn the wheel in the direction in which the skit is taking you. when he regain control, then you correct direction. the first step was to flood the markets with money. and a down turn maneuver the fed being the pioneer was reach where ito wanted to correct with the second curve. it reached at last year and started talking about it, but they did not have -- did not act. by the time they acted, the window of opportunity closed, so they acted one year too late. the u.s. economy is already slowing down and that is because of deflation. apparent whenme the benefit you had of lower prices which gave you effectively a tax cut, but instead of spending the extra to improve their own finances. we could find the same goods cheaper year. thecine: so they fed at moment is telling us for rate hikes is year and the markets believe

ex central bankers cannot disagree because he disagreed with ben bernanke. axel weber thinks that euro parity is going to be challenged again. what it means for american manufacturing and also european exporters is a crucial question. francine: when you look back at the last 5-10 years in davos, they rank the risks that people see at for the first time time economic growth is actually not in the top five. geopolitics is much more at the forefront. john: very interesting, populism. the people here are relatively well off. if you look at the forces disrupting politics in europe and the u.s., it is this anger at rising and equality. that is one of the great tectonic shifts happening in western democracies. the problem for people here is no one knows how far that is going to go. this year's u.s. election will tell us a lot about that. hans: five of the last years, inequality -- this year it was not in the top five. there is a disconnect where in the u.s. presidential campaign, inequality is driving the race on the democratic side. it is not on the agenda in davo

it took a bush-appointed federal reserve chair, ben bernanke, who engaged in enough pump priming, ifill, through low interest rates and then q.e., to get the economy going. would we have want add federal reserve then where congress had its tentacles in monetary policy? congress failed in fiscal policy. chairman bernanke and now chairman yellen have had to move on monetary tolls polic policy . i don't want to straitjacket the congress and the federal reserve. i know some of you have supported audit bills in the past. many supported the dodd-sanders amendment during wall street reform. this one doesn't include provisions to he radio view the independent foreclosure review pravment it doesn't include protections on some of the sensitive information that g.a.o. could review. what this is about, mr. president, in addition to congress meddling in monetary policy is this: we know that the fed is charged with a dual mandate, to balance, to deal with the tension between combating inflation and combating unemployment. we know that in past years the fed has leaned far more towards the bondholde

and 11 is a former advisor to ben bernanke and janet yellen.you for joining us on the phone today. to see the great and good out anin davos. the central-bank policy on the top of their minds? oil glut a little less typing from the u.s.? andrew: it's great to speak with you today. --hink there was something some very important data for the united states economy that was released last friday that adds to the concerns that the u.s. economy is not as solid and resilient as fed officials had bought a month ago. at that time, they saw the risks of the u.s. economy as roughly balanced where the last few that of data has confirmed there is some very significant grounds for concern. just to give you one example, the u.s. retail sales data for december released last friday. the core retail sales number was negative, which means that probably the broadest measure of personal consumption expenditures will be released in a few weeks could be dead flat. the idea that american consumers are the source of strength for and a source of divergence in some way fro

ben bernanke before, now janet yellen, have said several times to congress that what they really need is some kind of fiscal action. that was the stick, this was the carrot. gradual, gradual, gradual david. i know that you live in brooklyn, you have a little bit more time to get the brownstone. brendan, stay with us. julie hyman has the latest and i want to get some reaction to that. julie: it seems to be that they are emphasizing what brendan talked about and concerns of dissent, that some fed officials were concerned, sort of they were on the fence about this rate increase and some of the concerns they talked about in terms of inflation not meeting the fed target as well as commodity prices in global growth. something that market participants have been concerned about the new as they have come back here in the new year. that's one of the things they have been filling up. working towards the lows of the session, were not quite there but in addition to that we are looking at -- if you look at the s&p 500 over the course of the day you can see what's happened here towards the lows of t

you hear this from janet yellen and ben bernanke. here's what i think i'm going to do. and by the way, if you would enact some structural reform and fiscal reform, that would really help. in the meantime, i'm alone doing my job. anytime you want indexed to reform, i'm waiting here in frankfurt. thed: i was struck by station he drooped between the economy at home, and abroad. i imagine it's a distinction you will see drawn tomorrow as well. brendan: my favorite quote was lingering concern. the fed have lingering concerns about was happening abroad. the context is now completely different. it's been a month. what we saw in the fall was turbulence in the shanghai composite, stock movements, equity movement. now we are seeing capital outflows, things that are of much greater concern, change in the gdp numbers. if they have lingering concerns then, i would say they might have upgraded to urgent. and i would use the word urgent in the statement. they are absolutely looking abroad, just like europe is. and adjusting note of levity in that speech with him pointing out that desp

democratic senator bernie sanders also asked ben bernanke who received $2.2 trillion at the fed lent out during the financial crisis? again, bernanke refused to give a direct answer. in the 2011 dodd-frank law, congresswoman pashtun congress limited one time jail audit the fed actions. during the financial crisis that audit uncovered at the fed lent out over $16 trillion to domestic and for banks to the financial crisis. thank you got i ask unanimous consent for an extra five minutes? >> is there objection? [inaudible] >> the senator from ohio. >> does senator paul have as much time as we have? >> i would be happy to ask for the same time. >> i only need five minutes ally willing to cede whatever remains so you will have enough time but i would like to reserve five minutes for my objection. >> unanimous consent would become five extra minutes indicatand togive as much time o conclude. >> without objection. the senator from kentucky. >> both republicans and democrats agree that it is absurd we do not know where hundreds of billions of dollars of our money is going. in fact, lesser may

we have gone from a government in china that communicated well, and ben bernanke communicated well, soe janet yellen. people question whether she fully understands proper medication with the market. i think in the chinese leadership we have strong officials who know how to consolidate power. they know where they want to go. in terms of capital market express, they are learning. gillian: there are three areas, one, you need policy transparency. one day they say they are trying to intervene in the currency market, the next day they vanish. that is not help confidence. they need political transparency. today we had another billionaire banish -- banish. vanish. and data transparency. a $1.5 billion hedge fund, a successful one in london announced this week it is shutting down because the markets in china are so un-transparent it is hard to invest in a rational way. it was an emerging market fund. that is knocking on investor confidence. henry: investors moving into the emerging market are going to need to be able to move away from a hedge fund model. they will have to lock up their money f

the deficit inflation hawks and the fiscal conservatives who were hammering on ben bernanke and yellen, the fed followed their advice. >> we know the markets don't like uncertainty. is this about a presidential campaign where it's not clear who's going to win or who might be the nominee for each party? >> there's some frightening prospects out there certainly. that would leave i think any analyst somewhat nervous about what's going to happen with the future of certainly u.s. policy going to be. but there's also reason for anxiety stemming on what's going on in china. collapse of the stock market last summer for example had a dramatic outsized impact not because the economy or more properly the stock market is such a big factor. the volume of trade is trivial in global be -- relative to global conditions. but it's the way the chinese fumbled the handling of that that leads people to concern that the chinese just simply don't have the no-how to manage the kind of transitions they have to make in their economy. that's causing a lot of problems. >> yes it is. jock, thank you for joining us

this of course is of course was for the ben bernanke and the federal reserve did in 2008. but there was no federal reserve in 1907. i thought we might join the action now when it struck an institution called the knickerbocker trice in new york. morgan on film and had to go to admit or report. the knickerbocker was or knickerbocker was housed on 34th street and fifth avenue up holes tampered white to her -- that -- who piled on the counter is besides the colors for the books, is to the consternation of the people in outline, many of the man i knew i shall never forget. friday afternoon on tuesday, october 22nd committee paid $8 million suspended operations. reported he could not in such timed out or solvency. jpmorgan decided not to intervene in leading the knickerbocker, morgan knew he would be unleashing frantic runs on every other trust in the city. new york stressed over a matter of several weeks lost a remarkable in devastating 48% of their deposits. even worse at the end of october, the local clearinghouse association of new york banks was forced to take the drastic s

liz: ben bernanke talked about that. trish: that would be scary if we did that.nother scary thing is q e 4. print more money and hope for the best. liz macdonald, we learned last time around no matter what the fed does it is affecting only on the margin. is not able to really generate -- liz: you, file error hedge fund -- we are in it-fuel cycle the last decades and that is what he has been talking about since the financial collapse and we are still working our way out of it. he is the guy to watch. he is something i have been reading about, how sticky it is to get out of the balance sheet recession. >> you have to pay attention to him given his track record or how successful has been a how much money runs the your point of the fed has proven that it is feckless but what is the answer? how do we get to launch? the answer is lower taxes and more regulation? if republicans win the fall both of those happen and you can see the dynamism of the american economy explode. it won't happen before them. liz: with 4% economic growth not out of the realm of possibility, sinc

harris: you hear discount for ben bernanke, new hampshire is right next door to home state of vermontwe can lean in that direction, but superdelegates andrea is talking about, you take all the american voices out of this all the way, look forward to the convention, not that they were represented there. >> we saw the clinton machine get run over, steam rolled over by obama campaign. we knee for a fact she is not unbeatable. she is beatable. still very surprised that they chose her. i agree with you. i think she is horrible candidate. every good winning candidate has combination of three things. likability and authenticity and charisma. if you look at all the other candidates doing well, they have that in some degree. i feel like she has none of that i never understood the rationale. harris: where i think president obama was going when we said we needed new car smell. sandra: her supporters say she has got the experience, as far as number one concern of the voter, that is foreign policy right now. that she has got the experience. her supporters will stick by that. but, hey, if things ar

and this is a comeuppance of ben bernanke and folly what he did with easy money policy. trish: okay. i think that you make a pretty interesting and valid point here, gary, a point that i myself found myself making over the last couple years, which you can not be in a low interest rate environment for years and years and years and not run the risk that investors start dabbling in areas that they wouldn't normally dabble in. i made the comparison that, you got ma and pa out there buying things like puerto rico because it yielded so much money and then puerto rico suddenly goes bust and they're left with nothing. i mean, gary, what is the fed done to people's willingness to take on risk? >> trish, you're so right, what the fed has done they have screwed the safer. they have taken all of the riskless investing out of play what did the savers do they had to reach. they had to reach because you're getting zero on your money. they ended up reaching for bond funds paying 6 or 7% but they're leveraged. and mlps, master limited partnerships paying ridiculous amounts. this is comeu

. >> ben bernanke says it will do that. david: scott? first scott, then danielle. >> we saw that in emerging markets too, david. turkey did something similar some years ago with reserve requirements and discount rate. it would be absolutely awful. they have already thrown the ball down the field. i hope they don't throw it anymore. look what happened. if the fed made good decision, guys, why are interest rates down since the fed raised them and why is the market down? david: danielle, to put a fine point on it, savers have been killed last couple years with these zero interest rates. if we have negative interest rates, if people have to pay banks to deposit their savings in those banks, what is that going to do to our whole systems of savings and loans. >> actually it would decimate it to be sure but the problem is, the fed in throwing the ba down the field as scott just said actually, it is actually impossible for the fed to go negative on interest rates because of how they raised interest rates. they have used something called reverse

we've gone from having a government in china that communicated very well, and ben bernanke that communicated, i would say very well on a difficult period to right now we have janet yellin where some people question whether she fully understands proper communication with the market. and i think in the chinese leadership we have very strong officials who know how to consolidate power and they know where they want to go. but in erm its of their capital markets experience, they're still learning. >> i mean i would put it more simply. there are three areas, one is you need to have policy transparency. one day they say they're trying to-- the currency markets. next day they vanished. that disunt help investor kf disens. they need political transparency. we had today another billionaire suddenly vanish. there say real clampdown that is making business people quite nervous. and data transparency. i mean the statistics are terrible. nevsky capital, a $1.5 billion hedge fund, a very successful hedge fund based in london announced this week they have pretty much shutting down its fund because the marke

toot of people in davos want talk about ben bernanke.n asia they were saying this may not be the end, but the dollar rally is -- everything is being sold off, from carmakers to minors to all of the exporters. the dax is down 3%. i want to show you brent. it touched below 28. both wti and brent below 28. tom: i was call this davos rationalization. davos over a barrel. we will be joined later with our usual lineup of finance and international relations. we begin with michael spence, not only on his economic, but with china as well. there are two things. a rationalization and a debate. china and oil. a contingent to the rest of the world economy? in a sense it is, because there is extreme uncertainty. jobhina does a better communicating, that will settle down. the underlying growth, while it has slowed, is the reasonably solid. we are seeing more volatility in the markets. francine: because people are trying to get to the bottom of what the chinese authority wants . yuan devaluation. prof. spence: get out, sell your stocks, wait for the eva

. >> anymore or less than ben bernanke? >> they all are.e did not care. >> he would raise rates one full point. >> i will say this. we do not know a lot about it. one of the things that yellen said, terrorism has to be factored into market than what people do. even the fed. do you raise rates when global markets are unsettled by terrorism? i am just saying that she said it. not me. >> thank you, very, very much. more details on this naval center facebook page. there were three gunshots fired early this morning at the naval medical center. an admissions point. for veterans seeking medical attention. we do not know anything more than that. the in active shooter was reported in the building. that prompted the navy to shut the center down. out of an abundance of caution. a very similar feel to the naval facility shutdown when the shooter went wild there and shot about eight folks then. that does not appear to be the case here. they were both naval facilities. i will keep you posted on this. it knows of the shutdown. it is not really describing

francine: and ben bernanke theessed asia, saying that rally was running out of steam in less we see whatld knew to say cash i think you would need to see spontaneous changes in the american number. i definitely think we have seen the peak there about in the dollar. i do not see where this spontaneous liftoff is priced in. i do not see it coming. if it does not come, the markets have further to adjust. tom: daragh maher with us and david goldman. futures negative six, dow futures -61, oil weakening to say the least. tomorrow on the program, we have been remiss in looking at real estate across the nation. we will do that tomorrow with spencer rascoff, the chief executive officer at zillow. from london and new york, bloomberg surveillance. stay with us. ♪ tom: they took the "surveillance" gulfstream back to new york. i did not. we look forward to "bloomberg " with david westin and stephanie ruhle. good morning. david: we are picking up where you left off with markets. oil and stocks moving downward together. we will also be talking about iran, because they are in italy today, taking a l

- volume till -- volatility in the market, under janet yellen, is well below what it was under ben bernanke. betty: guys, can we pull up that volatility chart in our bloomberg? it shows that. it was quite high. we can see here in the green that dotted line. very high. quite high with greenspan. lower with bernanke. with yellen substantially lower in volatility. matt: from its peak in 2011 gold is still a far cry from where it wound up on a relative value basis when it last tumbled this much, which was 1980 -- betty: you noted then it was down -- matt: over 60%. betty: now it's down about 40%. why do you think, matt, people are still bullish on gold? matt: well, look, everybody's got a lot of fear coming into 2016. january was horrendous. for anyone in the stock market. pretty much anywhere. there's all this anxiety about china slowing down. there's all this anxiety about growth. so it's sort of a perfect storm for people to, in their fear, to embrace something like gold. but if you have a historical perspective and a long view, and you ask yourself, ok, what's changed fundamentally from whe

francine: ben bernanke seven days ago said he has seen the dollar rally.l, he is right sense that if you look over the course of the last few months, clearly there has been a sense that momentum has slowed down on the dollar index, but look what is happening now. makes, relatively speaking, the dollar a more attractive currency. that is why the fed is in a difficult position. mike: that raises the question, simon and antonio, where this all ends. we are already seeing devaluation on a lot of asian currencies this morning. thate japanese moves and forces the ecb to move, are we in currency wars now? simon: i certainly think it is a risk. -8ink about it -- four g nations now have negative deposit rates. england -- it clearly is a fairly fundamental issue. and talking about negative deposit rates, it is hard to think about that not being connected with a desire for the currency to weaken. i know everyone denies that they are involved in currency wars, but let's be fair. vonnie: isn't the problem here that there is no inflation anywhere in the world, so countr

the new ben bernanke a book is about this courage to act. it's the theme of that book. the we would not have reacted fast and up. tom: thank you so much and we are thrilled to have you here in davos. our coverage of the european central bank rate decision will happen at 73 5 a.m. new york time in full coverage of the news conference at 8:30 a.m. and i will do that with michael mckee. davos, wetomorrow, in will have more guests. stay with us from the world economic forum meetings in davos, this is "rumored surveillance." ♪ francine: you are watching "bloomberg ." it's a bright beautiful day in davos. stephanie: we are going to be speaking to some of the most extraordinary people here. and thebett is with us morgan stanley chief james gorman. martin gilbert will be here and we will have full coverage of the ecb decision in revived minutes. at 8:30 a.m. eastern, mario draghi's news conference. david: let's go to matt miller in new york on the markets. it's nasty and i want to start off by showing you what we went through yesterday. it was fairly insane. the dow dropped

country for significant amount of time during the depression but there was no one person such as ben bernanke in 2008 who said we have a real problem, someone's got to the acting in a concerted way and that someone is going to be me. overtime the public have going on as late as, during wars the fed tends to be, a handmade and other government. recover want cheap financing and the fed goes along with it. this happened after world war i into about 1951, the rates were still very low, 2%, and it became clear that the fed thought it was time to let rates go up. harry truman was just aghast. he didn't understand or accept for a moment the idea of the fed being -- w when he couldn't get his way in private he announced publicly that the fed had agreed to keep rates at 2%, which they have not done. he fired one of the board members, appointed someone else from the treasury who he thought would be his pigeon on the federal reserve board. at that point the fed insisted, they wouldn't back down. from then on it's been a more independent agency and powers more based in washington. i was so one of the of

. -- ben bernanke talked about it. no dudley has as well.about negative rates, the markets will probably listen. i think china is the key. if we have this risk-on rally, if they yields continue pushing higher, i think the yield traded in the equity market could work quite nicely. it has to come from china. what is china's reaction to the yen moving lower? we could see a to evaluation. the weekend will be about china's fx reserves. that will be the most important highlight of the week. angie: does that change your outlook for your strategy is to mark have you changed anything considering the surprise out of the boj on friday? chris: i think it really does shift the focus from balance sheet expansion to one on interest rates. it gives the bank of japan more easing room. perspective, you would still be looking at how that .lays on the -- plays on it is really about the u.s. dollar and see if it can get away. you have got to look at those factors. you have to look at the chinese currency. i know we are going into a new year, but that is the issu

in ben bernanke warned leaks ofers about before moreears leaks profited more investigation.the fed chairman was very pointed about this coverage which showed access to inside information. that is your business flash update. we need to head back to the market desk where julie hyman has been ticket market -- checking the markets. trying to take a muslim. let's get a look at where we are the moment and we are near the lows of the session. the nasdaq is been leading losses, not only to date on this year as well. downduncan 11 -- already 11%. of course, we're still in a bull market. that is worth putting up the s&p 500. we are in correction of 10%. but we have not gone down by 20% or more in more than 25 hundred days. take a look at my bloomberg terminal critical back to march this currentugh market bottom. since then, the s&p 500 is still up about what hundred 76%. that is not even on a total return basis. but it is an unusually long bull market that we have been in that 2503 days. it is more than double the average bear market -- bull market if you go back about 88 years. the a

it took a bush-appointed federal reserve chair, ben bernanke, who engaged in enough pump priming, if you will, through low interest rates and then q.e., to get the economy going. would we have want add federal reserve then where congress had its tentacles in monetary policy? congress failed in fiscal policy. chairman bernanke and now chairman yellen have had to move on monetary tolls polic policy . i don't want to straitjacket the congress and the federal reserve. i know some of you have supported audit bills in the past. many supported the dodd-sanders amendment during wall street reform. this one doesn't include provisions to he radio view the independent foreclosure review pravment it doesn't include protections on some of the sensitive information that g.a.o. could review. what this is about, mr. president, in addition to congress meddling in monetary policy is this: we know that the fed is charged with a dual mandate, to balance, to deal with the tension between combating inflation and combating unemployment. we know that in past years the fed has leaned far more towards the bon

scarlet: the bank of japan adopting a negative interest rate strategy -- ben bernanke has in the pastlieve in december, said that negative rates are something that the fed should and probably will consider if the situation arises . what kind of situation would require the fed to seriously consider negative rates? michael: first of all, situation where they cut rates and push out communications. when the fed last considers the negative rates back in 2012 and 2013, they felt there were more costs than benefits associated. i suspect this time around they view the cost is lower because we had the examples of the eurozone, doj, and others, negative rates have manageable costs. and there have been some technical changes that probably made it more feasible. you heard a few weeks ago, even vice chair fisher signaled perhaps a little more willingness, if things get that bad and it comes to it, to consider negative rates. scarlet: i am taking a bel for tom keene, who will speaking with fisher on monday. what would you want to hear from fisher? h, i think the topic we just talked about, negative

i'm not sure if it's, you know, ben bernanke's fault that he, you know, prevented a total collapse of the economy and, hence, we didn't get radical policy -- >> it gets worse before it gets better. >> but what kind of a jolt to the system, what are the necessary ingredients for these kinds of political changes to happen? >> here's my response. i mean, we have a lot of work to do. and the federal level is dead. i mean, you know, nothing's going to happen at the federal level for many years, i don't think. you know? i mean, my previous books were written on politics and political reform, and looking at our political structures. you know, the reality is that republicans aren't interested in any of this, and the democrats -- besides even when they get majorities -- seem to fumble the ball a lot. but it's going to be increasingly hard for them to get majorities because the demographics of partisan demographics of the districts and what have you not due to redistricting abuses -- though that is a minor factor -- it just has to do with where people live. i live in san francisco, and it's not

all of us unanimously supported that initiative under ben bernanke.ut in my opinion we went one step too far with qe3. by march of '09 we had bought a billion in securities. the market changed that first week in march. to me, that was sufficient. we launched the rocket, yet we piled on with qe3, understandably worrying -- the majority at least, that we might slide backwards. you have to be careful here and frank about what drove the markets. look at ul the interviews you had over the last many years since we started the qe program, quantitative easing, and it was the fed, the fed, the fed. the european central bank, the japanese central bank, what are the chinese doing, all quantitatively driven by central bank activity. that's not the way markets should be working. they should be working on their own animal spirits but they were juiced up by the central banks, i including the federal reserve. you have to acknowledge reality. >> we're totally out of time. one word answer. the fed forecast for rate hikes this year. the market says it will be half of th

ben bernanke comes on 60 minutes and says, we are done with the banks going under and then we have anes bottom. >> that was a bottom to end all bottom. >> i was worried about cashing moo i paycheck and where i should put it. now, i'm not that concerned about that maybe cybersecurity. the money is there. >> eagles. now, i'm worried. >> "mad money," we'll see you tonight, at 6:00 p.m. >> when we come back, bob doll on the selloff and his predictions for 2016. dow session low is down 3.18. we have recovered about 100 points of that. back in a minute. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. >>> good thursday morning. welcome back to "squawk on the street." i'm carl quintanilla. the selling continues. up pace. the dow down 205 after shanghai down 7.3% and trad

ben bernanke wrote a great book, but i don't think the story is oefrmt it's not over until janet yellens earnest group of great people, figures out a way to engineer the exit. only then will we know if quantitative easing was successful. qe, zert, nerp, we won't know if they worked out or not until we get back to a monetary policy. the story is not complete. the last chapter has not been written. this is chair yellen's burden, trying to close this off over time without creating enormous damage to the economy, even though there might be market volatility in the mix. >> that brings us to the immediate task at hand today, which is nobody is expecting them to change rates, but they are going to be parsing that statement. richard, take us inside. you're not in the room anymore, but you were there many, many times. how does this work? do they put the statement on a projector screen? circle words? >> i was there for ten years. eight meetings a year. that's quite a bit. a paper is circulated well beforehand which gives you options to consider. the chair personally solicits every member, the 12

[laughter] i offered ben bernanke, i could come back and get inflation back for you. not invite me back. i think it's unlikely i will go back into government. i think you can do as much on the outside is in the inside. i'm happy with where i am. the most important thing is having the health to do what i wanted to. i'm 66 years old. when you turn 60, people look at you differently. they say, well, you look good today. [laughter] at the kennedy center, people say, mr. rubenstein, there are six steps. do you want to walk up the six steps, or do you want to take the elevator? when you turn 50, you can pretend you have 50 go, but when you turn 60, you cannot pretend you have 60. i'm racing through life because now i have access to things that i did not have before, people and money, and i do not want to waste time. i'm racing through life, sprinting to the finish line, as i call it, and i just hope i am luckier than some of my colleagues. i read the obituary's every morning first thing. i know i'm lucky. i don't want to be reading my obituary anytime soon. margaret: we hav

stephanie: can you tell the difference between ben bernanke and janet yellen?r that much who is in the seat? is it about monetary policy versus the school or political policy? mohamed: i think it matters. i think this is a less unified fomc. in december, they were able to unify around certain actions and has happened what subsequently, it is not their fault. china made policy mistakes that has complicated everybody's life and now we will see a much less unified fed and that matters when it comes to who is sitting in the chair. stephanie: david and i will argue that it seems no matter what janet yellen does, you hear all the other members coming out scmunified.ed, when we come back, we are talking more. plus, we will take a look at qualcomm on the way out. shares this morning are down after earnings at the weaker forecast and the smartphone maker is going on semiconductor orders. we will find out if his team is winning even if it is company is not. qualcomm shares down, take earnings week. stay with us. ♪ back.: welcome here is your latest business flash. was th

when ben bernanke was chairman of the study is to complain about the deflation problem. can come back and get inflation for you. he didn't invite me back. i think it is unlikely i will go back to government. right now you can probably do as much on the outside as the inside. i am happy with where i had my most important thing is to do what i want to do and i am now 66 years old. when you turn 60 people look to you differently. they say about that today. the young women that are squirming around say mr. rubenstein, these are six steps. can you walk up the fix at 31 think the elevator? when you turn 60, you realize you live more than you're going to bed. when you turn 50 you pretend he's got 50 to go. i am racing through life to do the things i want to do because they now have access to things i didn't have before. i don't want to waste any time. so i'm racing through life, sprinting to the finish line and i just hope i am luckier than some of my colleagues. i read in the obituaries every day first thing in the morning to see who died in the i am so lucky because i'm older

as former fed chairman ben bernanke described it, we were facing the worst financial crisis in global history, including the great depression. between the end of 2007 and the second quarter of 2009, real g.d.p. fell by 4.2%. around $17 trillion in household wealth evaporated during the great recession. to put that number in some perspective, $17 trillion is about equal to our entire gross domestic product. the sum total of all the goods nd services produced by all of the united states for all of 2014. that's a great deal of money to lose. in fact, it would be almost enough to pay off our entire national debt. in july of 2009, there were about seven unemployed workers for every single job opening in the country. meaning that no matter how hard most unemployed people tried to get a job, six out of every seven of them were just going to be out of luck. you may recall that back then our colleagues across the aisle were adamantly opposed to extending jobless benefits. by october of 2009, the unemployment rate had reached 10%. housing prices were falling, lending was frozen, the stock marke

. >> he was the same guy that said ben bernanke said quantitative easing wasn't going to work., yes, this is a positive. i am not calling it a false positive. but it is muted at best if you look at the underlying. opportunitye this to see where things stand right now -- now that the market is open. matt: we do see gains across the board, but they are not huge gains. ampared to a 400 point loss, 400 point game doesn't look that great. the s&p up 12 points. if you take a look at my terminal, i am going to show you stephanie's side of the argument. you will see the tenure yield. -- you'll see the team year yield. 10 year yield.he1 doesn't look like they are still in the same super risk online that they -- the for the numbers came out. i will pull up the chart for the industry groups. you have tech and consumer discretionary, financials leading the way. telecoms are down. are amongive stocks the biggest winners. to look at crude oil. it is the interesting this morning. we are still positive right now at $33.30 a barrel. illustrative on trade as it came down. it is still down, but y

in the middle between steve and michael, but i do think if you're looking at the data the way ben bernanke, they're going to move rates up. we're still talking a very low interest rate environment. if we have a 75 basis point overnight rate by this time next year, i think we'd all agree historically it's a fairly low interest rate environment. >> i will rebound a wealth affect. if we see the stock market fall by 1400 points or so just in this year and that's 2, 3 trillion of wealth. i cory about the consumer portion which has been pretty strong. dagen: with the dropping gas prices and we talk about energy, bad for parts of the country, the job creator has been, but you've got more than $100 billion in gas savings just last year. you have-- >> that's a positive thing. dagen: it runs from 550 to 800 in households depending on the calculation, they spent 80% of it according to jamie dimon what he told maria earlier in the week. i'd say this about energy. it's the only sector during this tepid recovery, the only sector that's firing on all cylinders. without energy we don't have a recovery. >>

it's gotten better in part because of the last two chairs of the federal reserve -- ben bernanke, a bush appointee, then an obama nominee a second time. and with janet yellen, an obama nominee. since the crisis the government accountability office conducted audits of the activities. many relate to the financial crisis, include the fed's emergency lending activities. and there should be -- there is more and there should be more. the fed is transparent and accountable in the following ways. let me list them. this is not an out-and-out defense of the fed. they should be open to criticism and there is still much to criticize about them. but this legislation really solves nothing except to politicize the fed. the chair has required -- these are the ways that the fed is transparent and accountable. the chair of the federal reserve is required to testify before the senate banking committee and the house financial services committee twice a year on monetary policy. in practice she'll testify at additional hearings on other topics. the governors of the federal reserve and senior staff -- that's o

renamed bernanke submarine ben instead of helicopter ben because he wasn't easing fast enough, and that was clear in the financials. what drives u.s. economic activity is bank lending. can the people at this table and the people watch this show get along? if you can get a loan from your bank, then you don't want to be bearish. i had a friend of mine -- >> still not that easy to get a loan. >> that's the good point. >> we're in a recession. when you typically want to buy those stocks? when they're booming? >> do we say anything ground breaking when we say this will end badly. b, to paraphrase the movie "cocktail" everything that ends badly, otherwise it wouldn't end. citi says buy and large they're way into the aging stage, and don't go head over heels into u.s. stocks anymore. the better values are in other qe markets. do you disagree with it? >> i think maybe it's a little bit late because i agree with tony. i think a lot of the stock market is already in a bear market. the begger is rates are probably not going up. there's probably not four rate hikes this year, which is contenseus, w