i think the other thing was a number of people i have known well in academic life like ben bernanke, yellen, stan fischer, larry summers, they were all in policy positions. and so there was a natural ease of having a conversation about these questions. you know, tim geithner, who did not have an academic background, but he had been in the treasury a long time. that was very important, i think, in tim being able to interact with people around the world because he knew them all. i think if he had arrived in office only six months previously, it would have been very, very difficult. and he had experience in the federal reserve bank of new york and then in the u.s. treasury, so i think the continuity there, knowing people, having had a long time in your career where you have had a chance to think through what you really believe about why banking systems are fragile, what causes disruptions, what is the right way to respond to it, these things were very important. and i think one of the problems that the political side had was that deep down they did not really understand these issues. an

i think the other thing was a number of people i have known well in academic life like ben bernanke, yellen, stan fischer, larry summers, they were all in policy positions. and so there was a natural ease of having a conversation about these questions. you know, tim geithner, who did not have an academic background, but he had been in the treasury a long time. that was very important in tim being able to interact with people around the world because he knew them all. i think if he had arrived in office only six months previously, it would have been very, very difficult. and he had experience in the federal reserve bank of new york and then in the u.s. treasury, so i think the continuity there, knowing people, having had a long time in your career where you have had a chance to think through what you really believe about why banking systems are fragile, what causes disruptions, what is the right way to respond to it, these things were very important. i think one of the problems that the political side had was that deep down they did not really understand these issues. and they thought

hours and said i will not vote for this but at that time i was believing what hank paulson and ben bernanke he were saying, somebody asked what happens on monday if we don't do this? he said if we don't do this we will not have an economy on monday. it was pretty stark. i believed him at that point but i relied on other people and my colleagues to provide the votes so i could protect my sterling voting record against all that spending and i regretted that later because i thought i just let somebody else carry my water. i would have been justified but as a member of leadership at that time in colonial india where they build the golf courses in the monkey kept coming taking the balls they could not get the monkeys off of the course they developed a rule that you play the ball where the monkey throws at left last. [laughter] that is what he said at the tim time. we have to play the ball where it was thrown. and other people have done that. >>host: the democratic party is going through a similar struggle right now coming to the issue of abortion. democrats said they will not today mom -- find a

think about ben bernanke, and advisor to pimco. he understood the great depression very well.monetary policy could fit in and what it could do. kathleen: the other name, lawrence lindsey. let's take a look at things he has done. he was one of george w. bush's top economic advisers 2001 to 2002. an architect of the tax cut. and he was on the order governors from 1991 to 1997. how they -- how might they be different are the same? let's take a look at rich clarida. he sees maybe two or three rate hikes next year. and inflation starting to pick up. he has praised janet yellen's policies as effective. may be dovish, not sure. in 1996, they saw a stock market bubble forming. they did have stocks going down in the early 2000. two interesting names. david: and, the president of the boston fed, is he warning of a financial instability next year, or saying there might be something? kathleen: this year it was commercial real estate he was worried about. about lowtalking rates. they have been low for so long. the us could cause financial instability as investors reach for yields. they cou

just a couple years ago looking on the 2008/2009 crisis compared with the great depression, ben bernanke said no question, the 2008 crisis was worse than the great depression in terms of its economic impact. but for whatever reason after we started to drag ourselves out of that economic pit just a few years ago, the income and equality thing didn't get better, it just continued to get worse. this was "the washington post" two weeks ago. the rischest 1% now owns more of the country's wealth than at any time in the ♪ when you have a cold, stuff happens. ♪ { sneezing ] shut down cold symptoms fast [ coughing ] with maximum strength alka seltzer plus liquid gels. >>> the tax cuss ats and jobs a. i've waited a long time to get this -- i asked for order. >> it will be order. >> order in the gallery. >> we need our healthcare. children's medicine. we need our healthcare. children's medication. we need our healthcare. [ indistinct yelling ]. >> we need our healthcare. >> this fellow has a very interesting waive trying to gy t his point across. >> a demonstrate ter against the tax bill trying to

i don't mean this in any disrespectful way, but whether it was the handoff from ben bernanke to janetrom janet yellen to jay powell, there should be no question of next week's quarter point tightening i think like ben bernanke, that janet yellen will be more prone to do what she's been talking about and give jay powell actually more latitude by doing the tightening next week, it gives himmore latitud to evaluate, does he want to do two, three, four next year, and that's a very good way to go and finally, michigan data today. you know, i released it this morning at 10:00 eastern and it was a little bit of a disappointment we were looking for a number at 99 if you go back a couple numbers, we had a number over 100 i put a chart starting in 2004 for you to take one final look at even though we backed away on a lot of those big numbers that pop after the election and into 2017, that chart clearly shows even though the number in a microsense was less than we were looking for, when you take things in the grand scheme, we're still at super lofty levels as far as data goes, we can have debate

. >> will she comment on bitcoin >> she might when ben bernanke was asked if he thought gold was money said no. right now the irs and the united states ruled that bitcoin is property, not currency bitcoin does not have all the characteristics of money it might be an interesting intellectual exercise they have. i'm sure she'll be asked about it she may say it's in a bubble she may say bubbles are impossible to recognize as they are inflating. we will see. she could cause a pullback if she's negative on it >> ron, thank you very much. >>> turning overseas, the republican tax plan is causing concern in china eunice yoon is live in beijing for us with the details. >> china is watching trump's tax plan with some trepidation, that's because ultimately it could threaten china's competitiveness. china is not any longer the paradise for factories a lot of companies have been complaining about the high costs for labor and the tax burden so people have been focusing on the loweringing of the corporate taxes, from 35% potentially to 21%. here in china. the corporate tax is 25% plus companies pay a

. >>> still ahead cnn's interview with ben bernanke. you're watching "cnn newsroom" live in atlanta georgia this hour, simulcast both on cnn usa here in the states and cnn international worldwide. stay with us. cannot live without it. so if you can't live without it... why aren't you using this guy? it makes your wifi awesomely fast. no... still nope. now we're talking! it gets you wifi here, here, and here. it even lets you take a time out. no! no! yes! yes, indeed. amazing speed, coverage and control. all with an xfi gateway. find your awesome, and change the way you wifi. >>> welcome back. to our viewers here in the united states and around the world you're watching "cnn newsroom." it is good to have you with us. i'm george howell with the headlines we're following for you. this hour, we're following breaking news in the philippines, at least 75 people have been reported killed, 58 people missing, this after a tropical storm hit the southern part of that country triggering mudslides and major flooding. officials say the casualties ar

ben bernanke, who is an investor -- expert for pimco, understood the great depression and that was veryere monetary policy could fit in and what it could do. and the great depression, there was a decline in the money supply. the amount of money that existed fell by a third. ben bernanke understood that, so they printed lots of money so banks could give enough money in the system, so we could keep spending as much as we normally would and the economy would not collapse. that principle was something that one with great expertise about monetary policy would bring to the table. there are numerous circumstances like that, that is the most severe in the most important one we have experienced in our lifetime, but things that would come along along the way, expertise on monetary policy and -- it can help an economy is vitally important because there are certain things that the fed can and cannot do. milton friedman has said that one thing it can do is just to stabilize things when it is something else causing a problem and that is something else with the housing market in 2008 that they were ab

i think it's the long overdue and in fact the central bankers like ben bernanke and janet yellen haved fiscal reform this is good for the markets and should be good for the economy. trish: can we show that year-to-date chart again because this is fantastic jim and we had it up on the screen. we'll show it to them in full because can we take the full chart? i don't know if we can do the whole thing on the screen but this is just amazing. take a look at that everyone. what a win, right from the market, jim, and as you said this was in part because people were expecting tax reform to happen now it's here so i guess my question at this point is how much further can you go, is it priced in, given the runup we've seen or if you're getting three, four, even 5% gdp in the coming years what does that mean for market valuations? >> we don't think it is priced in yet. first of all, the hidden story is that the economy, as you mentioned the economy is accelerating not only domestic ally but the global economy is accelerating and we sell a lot of stuff overseas. secondly inflation remains low. cen

after that rally, as counter demonstrators were peacefully marching, the car that you are ben bernanke about to see drove across the popular downtown mall, there it is, ramming the crowd, and killing heather heyer. several others were injured in that. there were three other defendants who were also in the charlottesville courtroom today. they were facing lesser charges. the judge determining late today that there is enough evidence in trial as well. they are going to go to a grand jury on monday. as for fields, he faces 40 years in prison if convicted. doreen? >> all right, david culver reporting. thank you, david. >>> around halloween time we told you about candy and ku klux klan recruitment fliers that were left in some loudoun county neighborhoods. >> one woman was fed up and decided to fight back, but as bureau chief julie carey tells us tonight, publicity about her message is drawing support and outrage. >> reporter: it is a banner that reads like a protest chant. no trump, no kkk, no racist, fascist usa. >> my goal was really not to be offensive to people. it was just to cause pe

couple of years ago looking back at the 2008-2009 recession compared with the great depression, ben bernanke said the 2008 crisis was worse in terms of its economic impact. but for whatever reason after we started to drag ourselves out of that economic pit just a few years ago, the income inequality thing didn't get better, it just continued to get worse. this was "the washington post" two weeks ago. the richest 1% now owns more of the country's wealth than any time in the last 50 years. today the top 1% of households own more wealth than the bottom 90% combined. that gap between the ultra wealthy and everyone else has only become wider in the past several decades. that share is higher now than it has been at any point since at least 1962. so right before the great depression there's a huge spike in income inequality. after we have the great depression, that spike revolves and started to go away and the middle class got stronger after that crisis. then again 2008-2009, a huge spike in income inequality followed by a crisis, but income inequality has not resolved, it has kept getting worse si

ben bernanke in 2007 actually said that the contagion from subprime mortgages and the meltdown taking place would not impact the housing market and would not impact negatively the u.s. economy. oops! the question we were asking about bitcoin, does the fed need to be more aggressive, and the chair talked about the fact they have a committee since the crisis that looks for those kind of exposure issues and whether the banks are exposed. she's trying to reassure everybody that no, it doesn't pose a threat to financial stability. liz: and she also said this, which was reassuring, she does not see the chances of a recession as very high at all. we have had enough of a recession since 2009. certainly very happy for that. adam, thank you very much. and by the way, we want to take you right now to the senate. this is tom bartel, the chief of staff of the joint committee on taxation right now speaking in a public forum where they are allowed to debate tax reform. of course, hoping to get it done this week and hold the final vote next week. president trump just saying minutes ago right here it

it is from an act he who led the -- ben bernanke who led the way to yellen over the crisis to reviewe pain looking backwards from a positive outcome. so the natural thing is everybody goes, we have done this, it's going to continue. i am going to go the other side because i look at those prior speakers saying, ok, employment -- unemployment is at 4.1%. there has not been any wage growth. over a long trend, that is a bad sign. if the market keeps getting hit with bad news and does not go down, it might be time to buy it . this is a time to sell the fed. that ist looks like overstating maybe? peter: since they started we have had three dots. the thing about forecasting is forecast often. julie: you are data dependent. i am wrong, i as try to make an excuse. at a>> look -- let's look few more topics. wage growth. you say it has been disappointing for years. is there any reason to think it will turn around? toer: no, in fact is likely get worse. i'm an economist. if you want more of something, you need to make it cheaper relative to something else. the tax bill does the opposite. hey, i

bush and his treasury secretary hank paulison and the chair of the fed ben bernanke and previous members of fed met with leaders of the congress, the entire economy could collapse and we have to act now. the tarp program, the troubled assets relief program. what many people remembered, it failed. despite the urgency and importance in the house of representatives, because a group of radical house republicans said why should we believe any of this. then the dow dropped over 700 points which back then was a bill deal and they came back and passed it, but the recentments remained and most americans said, wait a minute, let me get this straight just like the 25% pay raise when most of us were getting, if we were lucky, a 1% cola, and they make 87,500 and complaining it wasn't enough. and bailed out the miscreants that got us into this mess and big bonuses on top of that. what happened to us? we lost our houses or if we didn't lose them they declined in value 30, 40% and most americans don't have cash savings. the nest egg is in the home and as you get older, you can down size and a have a ret

financial system, too big to fail, we came out of that and we have succeeded in solidifying as ben bernanke it worked, didn't it? jason: i think it did, and broadly speaking this is a good argument that having sound regulation, requiring banks to hold capital, taking sure some of the most risky activities are pulled back onto the balance sheet is something that can be good for the financial system, good for the economy, and it makes me less worried about the next downturn. tom: jason furman and brian levitt with us, and we will talk about the political movements, maybe a little bit on democrat and republican politics. we need to say a major thank you urent of gadfly. he takes 10 weeks of vacation but came in today to talk about bitcoin. a scathing piece on bitcoin certitude. here is your certitude, radio, your morning commute. francisco,oston, san 99.1 fm in jason furman's washington. this is bloomberg. ♪ ♪ sebastian: this is bloomberg "surveillance," i am sebastian salek. the news is better elsewhere. nike posted quarterly sales that missed estimates in certain markets. sales are expected

treasury and a fed official saying the yield curves don't matter the last time that happened was ben bernanke the minute it yielded, we were inside recession within nine months >> we have done a lot of work looking at the yield curve there is some predictive power there. it is an imperfect tool. there is yuseful information there. the time lag between that is pretty long and variable even if we continue to flatten, we don't think that should sound immediate alarm bells. >> danielle, eric, thanks so much >> thank you >>> big companies spending big bucks today, making a major investment target buying a shipping company and t-mobile making a push into tv we have the details on all of those details. r na will janet yellen say in hefil news conference as fed xha chair? stay with us here on "power lunch. i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the ca

curve more than you would expect, so it is a version of the conundrum we had 10-15 years ago when ben bernankend he talked about the different cause of that demand for u.s. debt, but a similar impact. the market has been pretty sanguine with this idea that the unwind from the fed, potentially ecb, going into next year will be a smooth transition and nothing will really go wrong. the you think a policy misstep from a central bank is a risk next year, or would you be looking for a steeper slowdown in china as the bigger problem? >> i think it is not so much the policy misstep. it is how the market responds to the policy. the new supply hitting the u.s. bond market will be doubling with the increase in the deficit , and then the change in fed policy, then you get the ecb tapering down to nothing by the end of the year, maybe even the boj becoming honest about the fact that it has reduced its bond purchases, and that wall of money, we see a peaking of the balance sheets of the big central banks next year, then it starts to shrink. so that is a different environment. misstep,ot cause it a but in te

within the survey >> you know, a lot of people go to athletes, they talk about -- do you know who ben bernanke >> those are funny >> they are. >> this is not the same? >> this is not funny so cnbc's all america economic survey tracks dramatic shifts in consumer spending both over the longevity of the survey and year to year. how are americans doing most of hair holiday shopping? online took the lead for the first time last year tops the list again this year at 45%. that's more than double the number that answered that question a decade ago. 5% higher than last year at the same time, big box stores like walmart and best buy come in second. online's gain is that group's loss over last year. online storhopping and smartphoe is the key most americans do their online shopping on their mobile device, that's up 8 percentage points from last year 40% do none or very little shops on mobile device that is down significantly from last year. so moving to mobile. as more americans are choosing online as the preferred method to shop, there is a digital divide when it comes to income only 20% of those making

bernanke in ben 2006, he said the same thing.hold, 1.5 years later, we were in a recession. particular bout of flattening, particularly what we have seen lately, is being driven by the selloff on the from yields up to 1.9%, 1.91%. the story quick, does that make a difference in terms of the story is the long and going down or the short and -- long end going down or the short end going up? the 2005-2006to rate hike cycle, there was a lot of by back in the curve, and the fed kept raising rates and the part of the curve flattened. this is the same scenario, where you have what we call a new conundrum. demand is coming from overseas, you have qe, global qe, which is keeping pressure on those premiums. the fact things are causing the curve to flatten right now are different than what we saw in 2004, 2006 rate hike cycles. but the conditions are the same and the impact on the economy will be the same. julie: so when you are formulating your strategy, do you have confidence in the fed or not? which way do you go? that would then determi