economy when things go we're going to have alan greenspan again and ben bernanke and they will bring them all back with the tooth fairy and the easter bunny no that's not going to work that way throughout history everywhere when things get bad everybody cuts back and the u.s. consumer whoever he or she is going or in what the media who's going to save us all . is going to cut back to you know the places like illinois bank robbery i mean there are many places connecticut connecticut is becoming a basket case no i think not going to get better when some of these states and cities start going broke yeah consumers was the last bright spot in the entire u.s. economy manufacturing less down i'm thinking that as a result of that interview less interview all these consumers who are going to say if the world better bring the tooth fairy with with them knowing that the fed is going to lower rates up another $200.00 that's probably down to 0 within the next few quarters all of us traders and market participants were betting on that turn driving the market higher do you think that that's a dange

the issues are that the feds howr really realized just easy monetary policy was with ben bernanke, andhen he left office and gave it to janet yellen, she was left holding the bag. as soon as she opened her mouth and said we would raise rates, the atlantic that shadow fed funds went up to zero. that was a huge rate hike, effectively, and they took it up another 225, 230 basis points above that and caused a significant slowdown. we have had problems with the approach to rates for years, and we also look at the fed funds versus what is called a neutral rate, the rate that is not tight or loose. only approaching neutral was too tight considering the trend analysis we did of funds versus neutral. we know that that was too tight and they remain too tight. they really needs to be more aggressive and stop playing defense, and start playing offense. shery: mary, our manager just -- barry,t the threat our manager just asked about the fed put. trump was clearly not happy with what happened yesterday. barry: i do tend to agree. he tends to operate on instinct. we came to the same conclusion, the f

like ok jim jones he's he's getting people to commit mass suicide and if and if janet yellen or ben bernanke he or jay powell were running the show they're there so their answer would have been let's give them a 100 times more kool-aid ok when they're committing suicide with arsenic or cyanide laced kool-aid let's ship in 10 tanker boats full of cyanide kool-aid that's how we're going to solve this problem of suicides and beyond with more spiked cyanide kool-aid right so they have central banks have there's supposed to be calm. respectful of something called the business cycle you know when the capitalism ebbs and flows of communism or socialism tries to create one steady drumbeat dulness they don't like the volatility doesn't work capitalism they have the volatility people say it's a little bit too much to handle but there has to be volatility if you have capitalism without penalty. that's like a fall without help if there's no penalty for committing fraud like that jamie diamond j.p. morgan now or twice convicted predatory monopolist bill gates moves no penalty for fraud that's not capital

can still go that route we can we haven't gone to negative interest rates yet we can you know ben bernanke he once said the fed has the power to buy anything it wants we can buy money go farms businesses we can stocks we can do anything we want so there's still names which they can do artificial artificial things to prop this up for a while but. be wary. and finally checking in on the quickly shifting market for recorded music and amazon is the latest player to test whether consumers will pay more and how much for higher quality streaming and downloads the new service called amazon h.d. launched on tuesday presenting a direct challenge to previous door entrance a title with a lower price title famously backed by hip hop mogul jay z. and other musical artists charges 9991000 dollars and 90 $0.09 monthly for their high def plan amazon will charge only $14.99 for amazon h.d. and an even lower incentive rate for amazon prime subscribers to be clear in this case high definition means at least cd quality sound delivered in the so-called lossless wack file format according to amazon audio quality

over the weekend remember that was the beginning of the real craziness of the financial crisis ben bernanke you cut interest rates by 75 basis points on a sunday night they inherited this massive short position that bear stearns had. accumulated and we're going to get into that in the next headline because they're now blaming bear stearns for their crime wave that went on until august 26th seen so that's the remarkable thing to me is that you and i here on price report we're covering that extensively especially in 20102011 in 2012 we're covering nonstop this precious metals manipulation from j.p. morgan that didn't seem to deter them the fact that we were shining a light and exposing their crimes they they were quite confident apparently that they continued until 2016 according to the allegations from the department of justice they were quite confident well we're doing more get away with it we did more than just report on it but as i suggested to the global audience because j.p. morgan inherited this massive short position you could effectively put j.p. morgan out of business yes if you dro

that was ben bernanke's own self 2007.ism back in he said, in hindsight, i want to do girly are, i wanted to cut sooner, do a lot more and i did not. at the end, we were in a startedn in 2008 and i cutting them. it was too late. we think yet to be really proactive, do a lot of things. then we're going to need the fiscal policy to really come around. that is the tricky part. vonnie: and that is questionable. >> an election year is going to be messy and we are very divided country, unfortunately. the representatives are increasingly movers and -- moving far right or far left and very little middle ground. vonnie: jay powell has tended to be pretty relaxed. he says we're watching things closely and we think we are the curve and it is fine. poor, jay, doesn't look like he is buying the curve. he thinks he is in tune, but it is interesting. if you look at the dots. back in december, we were saying don't hike in december, just keep rates low. compare markets for cuts. at that time, 11 of 17 officials said not only hike in december, but two or three hikes this year. ,n march, it goes 15 of 17 sa

charles: on the stable prices, maybe not as stable as you say they are, ben bernanke, he talked about charles williams on new york fed keeps pointing out about the risk of deflation and i think powell wants to hint that but not creating uproar but talked again about low inflation which could become deflation, it's a lot easier to stop it before becomes inflation, and once inflation it's hard to stop deflationary. >> when was the last time we had depletion? charles: is that a legitimate reason? >> decade long problem. >> it is. >> it's the reason why the greenspan fed led to record interest rates that help drive that. it's not something new, it's something that the fed is grappling with. charles: $4 trillion in accommodations and everything in the tool box, maybe take some of that off the table, could it become powerless if this happens? >> good thing is wages are going up, a, it's good for workers, frankly good for the president but also very good in terms of helping the -- boost inflation numbers, you're not going to see inflation of 2% or guide posts without wage increase. charles:

series of very strong fed leaders going back two general its rations, paul volcker, alan greenspan, ben bernankeaders because they're economists who come in with a strong policy vision, and they're like ceos. they bring their staff along, and they bring their board along. now comes jerome powell. he's an attorney, he's a private equity executive, he's not an economist, he doesn't have a strong vision. trump says he's a poor communicator, i don't disagree with that. he's also a poor leader, or at least he's abdicating. he doesn't have a vision as a strong ceo who's supposed to bring people along with a vision. i think that's what ceos do, that's what every fed chair since the '80s has done. so the market is having to get used to the idea of a fed chair who just simply counts votes. so we have no idea what the fed's going to do because the fomc is just 12 votes where out of 12 people drawn from all across the country you're going to have some hawks, some doves, you never know. so there is no vision. there's no vision to communicate. charles: great point, and that was also underscored in the so-cal

you said you had confidence in ben bernanke do you have confident in pou snell. >> i do. he's done one thing that's terrific, which is not the strength of the fed before him he's reached out to the politicians to give him information that includes not just democrats but republicans as well. >> i think he has no dissents from the governors >> it's very different the bank president's always dissent. two reasons, one they like to get a lot of attention because this is what they do they're not quite the big part of the team. unless you are extremely -- i felt very strongly the fed was behind the curve >> what -- i talk to them and realize dissenting, not strongly, would be helpful to the federal reserve system it took ten days later, then he started to move quickly. you know, from that viewpoint how wrong was it to weight it. i think it was somewhat costly, because it happened after the stock marketcrashed. i have tremendous confidence in ben. and i think the committee has tremendous confidence in jay it's not the problem this communication is a serious issue for them they ne

liz: ben bernanke said we would be at 5% interest rates right now. the u.s.actory production did pop by the most in a year last month. let's talk about the policies to keep the economy moving ahead. let's turn now to what the dems want. we have a just-released fox news poll shows biden falling to a new low. here's stephen colbert going after elizabeth warren, still dodging questions about whether she would have to raise middle class taxes to pay for a big government single payer plan. economists say yes, she will have to. watch. >> how are we going to pay for it? are you going to raise the middle class taxs? >> so here's how we're going to do this, costs are going to go up for the wealthiest americans, for big corporations. >> [inaudible]. >> yeah. and hardworking middle class families will see their costs go down. >> will their taxes go up? >> here's the thing -- >> here's the thing, i have listened to these answers a few times before. liz: by the way, this is not set in stone that costs would go down under single payer. here's the thing, joel, is this bold

well, one idea is that central bank policy , these extraordinary tools they have been using since ben bernankesion going at the cost of boosting inequality. do you see that as well? robert: i think it has kept the economy going. though there is a little bit of a contradiction there. the lower -- when they cut the lower bound of the federal front , it invitedo comparisons with the narrative so-called lost decade when the bank of japan cut rates to zero. it brought up the whole story of secular stagnation, which was originally introduced in 1938. quiet, but of gone now, that's back as another powerful narrative. so i think people are energy. -- edgy. but they are still in an inspired mood, inspired by our president who advocates big spending and success orientation. robert, you find yourself in the u.k. today where i'm not sure we have described the move as inspired. [laughter] i wonder what your assessment of the narratives around the brexit is. what is your assessment of the they have been spread and reinforce the discussion around brexit. talk about project fear when anybody tries to warn abo

ben. bernanke turns around the end of a bit of well i think that probably means your move. that you don't show your ignorance in the shape of not to protect those who do not form but couples who've got. all they have shown for the 4 months that they want to grow a bank they'd buy a room on the 3rd for the home going on with. the bank from the boom. then didn't the real hope. for their own horn on important bundling the affairs of their on this public confidence in. their own all. right thank you thank you thank you will be interesting to see what it will take all the key players to come to a compromise and break the political deadlock a mental block of. use of blondel i really appreciate your contribution to the program today and thank you too for watching you can see the program again at a time by visiting our website dot com for further discussion go to our facebook page that's facebook dot com for was last a.j. inside story can also join the conversation on twitter handle is. the whole team here. by phone now. rewind returns with a new series and brand new updates on the

back when alan greenspan was the chair, and then ben bernanke, we had uncertainty about what was drivingdebates about productivity growth. chairman greenspan, using his skills, was one of the first recognize we are benefiting from a productivity increase that allowed him to keep interest rates stable. inflation pressures do not emerge. it is always a role that has a , and a risktainty trade-off role, which is what chairman powell is doing with this. ferguson, always rate gap you with us. tia and they have $1 trillion under management. we will have more from the bloomberg economic forum. ♪ this is prime minister modi at the bloomberg global business forum and he is speaking right now. p.m. modi: mr. michael bloomberg, distinguished guests, , i ams, global businesses very pleased to be here among all of the captains of industry in new york, the nerve center of global business and the economy. bloomberg global business forum has given me an opportunity to speak to you about sentiments and opportunities. india's expectations and growth. india's growth story. india's future direction. gratefu

. >> that makes perfect sense, but at the end of the day, balance sheets are difficult b ben bernankeing to have runoff your final thoughts. >> that's exactly right. the ecb has a serious problem, but drago again, they don't want to disappoint markets. so why did draghi add more fire? >> especially a hand-off to christine lagarde. >> exactly and go out with a possible ten per tan rum. >> iyra harris, thank you very much. >>> let's go back. what does it tell us about the future of the streaming wars, the future of the advertising wars when it comes to this kind of premium content. >> we're going to dig in with michael wolff and simon gallagher, two industry experts. that's coming up next on "squawk alley. as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster

tom: you studied with ben bernanke. this is what went on in the u.s.grity. likere the greek banks not the german banks? how are they doing? alex: we have been through a long recession. the government has a minister responsible only for the financial sector. the previous government used to regularly attack central governor. francine: how well the european will the european commission approve it? alex: we are in conversations toh digit, and we want continue with the aps scheme to introduce a sovereign guarantee to transfer the bonds to allow a rapid deceleration. we have all the tools in the toolkit including the bank of greece plan, and we will move aggressively to move banks forward. francine: if that is approved, what is your estimate of how much could be cut from the balance sheet? alex: we are still in negotiations, but it is likely to be at the higher end of estimates. francine: higher end of what we are hearing? alex: correct. francine: give a sense of how difficult it will be for your country to grow given the trade and downturn? sentimentt econo