ben bernanke declared today that the recession is "very likely over." but the fed chief cautioned that the u.s. economy still is very weak and many americans will continue to struggle to find jobs. speaking at a conference in washington, bernanke explained that technical indicators show the recession has ended, but growth will return slowly. darren gersh reports. >> reporter: the recovery ben bernanke is looking for will be a moderate one. the fed chairman is expecting growth of around 2% to 3% next year and he says that math is not good for the unemployed. >> the arithmetic is that unless the economy grows significantly faster than its longer term growth rate, it will be relatively slow in creating jobs over and above those needed to employ people coming into the labor force and therefore the unemployment rate would tend to come down quite slowly. >> reporter: one year after the near collapse of the financial system, bernanke pointed to signs of stability today. but the debate over the failure of lehman brothers and the root cause of the crisis continu

but ben bernanke saywe shouldn't expe a robust recove. >>usie: today marks one year since the lehman broer's bankruptcy. so how's wall street doing n? we get some answers in tonight's "lesss from lehman." >>aul: investors put best buy shares on sale tod. the stock opped 5% as the electronics retailerosted a biggerhan expected drop in profits. >> susiemore people are staying unemployed longeand that's lving many americans with hard choice pay the mortgage or pay for alth care covera. >> paul: i'm paukangas. >> susie: and i'm susigharib. this is "nightly biness report" for tuday, september 15 "nightly business report" is made possib by: this program was made possib by contributns to your pbs station from viewers like yo thank you. >> susie: go evening, everyo. ben bernanke declared todathat the cession is "very likely over." but e fed chief cautioned that the u.s. economy still ivery weak and manamericans will continue to ruggle to find jo. speaking at a conference i washington, bernanke explaed that technical indicatorshow e recession has

and i know proechl has reappointed ben bernanke to be the fed chief. but in all respects in the last two years, including the bush administration, the fed and the treasury were one. and in all of the bailout bills and stimulus package and everything else, ben bernanke was an arm of the u.s. treasury, whether it was henry paulson, or whether it is tim geithner. >> senator in that view, has the fed lost control of the money supply? are they just too loose in did today's policy statement have any effect on your thinking? >> we, the policy statement is unchanged, obviously. the extensions on what they were buying and how long they were buying it. but the basing philosophy is that the money is going to stay in circulation until the fed says, you know what, i don't know if they've got enough chutzpah to take the money out of supply because they worry about the effect on the economy. >> isn't it kind of after replay of a mistaken theory that hurt us in the 1970s? and also in the prior decade with the money creation and bubble creation. are we repeating past m

well, here's what ben bernanke said. >> will the federal reserve monetize this debt?l reserve will not monetize the debt. glenn: will not monetize the debt. we'll get to that here in just a second. first, charles, how are you? >> good. how is it going? >> good. charles payne, c.e.o. of wstreet.com, my favorite street. ok, charles, first let's explain, if i have common shares of stock, you know, this is a company, dirtbags are us, and my company is too big right now and i have to have more money. why do my shareholders not want dirtbags are us -- if i've got four shares here, and that is all that represents the whole pool of stock, why do they not the dirtbags at dirtbags are russ to issue another four shares? >> because you dilute the company and make the shares worth less. >> glenn: how much less? >> just like if you had a pizza and we have one for us, and it's great, but four friends come over and we have to cut it even smaller. it hurts the pie. glenn: if i'm a stockholder i'm like, no, no, don't just print up more shares because mine are worth less right now. >> t

thanks, guys. >> you think that ben bernanke's never going to raise rates.hey would almost by definition -- >> never going to raise rates? >> i think -- >> never? >> in his lifetime. >> i guess he's not going to have much of a lifetime. >> i don't know. i see a lot of dollar sprinkling. >>> president obama speaks on the economy. we'll discuss the road to economic recovery and cover obama's live event in upstate new york. >>> netflix is having a quite a year with shares shader higher by 50% ands the company has an innovative way to keep technology tresh. the details are ahead in a first on cnbc interview with the cofounder and ceo of netflix. you're watching cnbc first in business. $$$$$$$$$$$$ >>> welcome back. the head of the sec deliverin-- delivering a major policy speech. the reasons why. hampton? >> reporter: good morning, trish. fcc chairman says it's time to turn the principles of open access to the internet into policy. internet traffic is exploding, doubling every two years. telecom cable and wireless firms make the case that has to be ma

ben bernanke's remarks are not all that market moving. what he says that use of many fed programs are winding down. i wand want to add that yesterday the fed announced a program for winding down the 84-day portion of the term option facility and talked about the tslf winding down. he says there's still an ongoing need for the other acronym that begins with a "t." this is the one where the fed takes the loans money to investors that are selling asset-backed securities for business, small business, credit card, and student loans. talf indirectly finances $3 million worth of loans to households, and $400,000 worth of loans to small business. three of the four new talf ag t agents are african-american and expect to begin in november. that is directly common to maxine waters right there. i want to say one thing about the durable goods thing. a lot of economists are discounting this report because of the volatility of the report. i went back and looked how they behaved in the post-2001 recession. and i'll concede that the decline in durable goo

he says we have to wait for bernanke. other wise, if we raise rates in china, all the hot money will come into china and that will bubble up the chinese economy even more. now, steve, that complicates the whole story. >> sure it does. you should have stable exchange rates led by the dollar. china, as you know, outsourced its monetary policy to the u.s. in the mid-1990s precisely by linking the yuan to the dollar. and we've let them down. we've let ourselves down by having a weak dollar instead of a stable and sound currency. >> is there an inflationary bubble developing? i know it doesn't look like it now, but it didn't look it in 2003 either. >> off the fear of inflation, but you have deflation in rising unemployment. that's a nice mix that ben bernanke has given us. i wish he would take time out from batting himself on the back and look at the state of the u.s. credit markets. some areas are doing well. others haven't developed from a year ago. >> coming right back. coming up, your gold. is that the right investment pla

ben bernanke said is is very likely the recession in the u.s. is over.is program, we have heard confront -- we have heard from correspondents around the globe, from china were a massive stimulus program in place and to india where their economy is growing -- >> "bbc world news" is presentedfunding for this presentation is foundation of new york, stowe, vermont, and honolulu. the john d. and catherine t. macarthur foundation. and union bank. and " the bright star" a new film by jane campion. >> union bank has put his financial strength to work for a wide range of companies, from small businesses to make corporations. what can we do for you? >> he was a dreamer. >> i was floating above the trees. >> she was a realist. with every word he rode -- he wrote, inspired the romance that live on forever. >> i must warn you -- >> "bright star" from jane campion. campion.

el presidente de la reserva federal ben bernanke afirmo que la crisis economica esta casi superada...el instituto brookings en washington, hablo sobre la necesidad de un nuevo marco regulatorio que tenga como objetivo evitar una nueva crisis y confia que el congreso logre un consenso al respecto... tambien aseguro que podria estar comenzando un periodo de crecimiento y que el desempleo bajara gradualmente.... bernanke dijo que los retos y las dificultades continuaran y reitero que la crisis que se ha vivido es la peor despues de la sufrida durante la decada de los 30. en ecuadorlos qqqstros qq1 relaciones exteriores y de defensa de úúúpúúap?ppa region mediante un pacto de no agresion militar, en una carta que el presidente alan garcia envio a la cita ministerial... en la habanael presidente raul castro sepulto hoy al heroe revolucionario juan almeida en las montanas de las sierra maestra del oriente de cuba donde ambos combatieron hace medio siglo... almeida el numero tres entre los historicos de la revolucion luego de los hermanos fidel y raul castro, murio el viernes a los

when he speaks, the financial world moves talking about fed chairman ben bernanke, today he said thevery likely over. great. really? let's talk about it. want to hear from you 1-877-tell-hln. joining me to talk about it welcome back alley velchi from our sister network cnn and radio talk show host chris mar cow ski. all right, guys, good to have you back. is it good tidings, ali? very likely over? . >> well sort of depends where you are. if you are unemployed, it doesn't look like that situation is getting better anytime soon. if you've got a house the values have gone up. if you have invested in the stock market things are certainly better than they were back in march. so it's kind of academic bit of an ivy tower discussion to suggest it is over. it is for some people and a long way to go for others, mike. >> that's the key point, are we close, a long way to go for others? it depends on your personal situation, right? >> oh, absolutely. even, you know you dive into bernanke's speech today, he said technically we are out of recession but have all these problems going forward. in my o

the extremists were calling paulson a socialist, they were calling for impeachment of bernanke. i mean the press... the reaction to bear stearns and then the government agency it is week before was extreme and hostile. >> rose: who's "they"? calling them socialists and... >> congress! >> well, i quoted them, that was congressman who did it. >> rose: but i a congressman is not... >> it was quoted all over the media. i mean, the bashing was amazing. so the political context was fierce and it was... now, remember, paulson isn't an agent of the executive branch. he does have to bear in mind the political prapl work. but to answer the other question what didn't they anticipate? i think the most striking failure of their anticipation was that they didn't see that the failure of lehman would bring down or threaten to bring down the $4 trillion plus money market industry. now, the whole... one of theirer that reis was... i heard the from everybody. everybody new lehman was in trouble. so if you held any kind of lehman exposure, if you had stocks, certainly, if you had bonds, if you even

bernanke said today it appears the recession is over. the latest evidence, a report from the government today that retail sales were up 2.7% in august, the biggest increase in three years. all of this helped give wall street a boost today, the dow gained 56 points. but both bernanke and president obama agreeded that the effects of the recession will be felt for some time to come, including in the unemployment line. here's anthony mason. >> reporter: the fed chairman used his most emphatic language yet. >> >> from a technical perspective, the recession is very likely over. >> reporter: the president also pointed to signs of a turnaround visiting a once idled g.m. plant in ohio where a thousand workers are getting back on the job. but he was cautious. >> i think everybody understands our economic troubles are far from over. >> reporter: between stimulus package and bailouts, the government has spent $3 trillion to pull the economy out of freefall. will taxpayers have to foot that bill? that's what katie couric asked treasury secretary geit

ben bernanke said it appears the downturn has ended. at the brookings institution in washington, bernanke said there are signs now of a fragile recovery. but he cautioned that unemployment, now at a 30-year high, will not improve quickly. >> it will come down, but it may take some time. obviously that's a very serious concern. that's one reason why even though from a technical perspective the recession is very likely over at this point, it's still going to feel like a very weak economy for some time. >> woodruff: bernanke said the economy is still dealing with ongoing head wind such as hard- to-secure credit and low overall consumer spending. >> ifill: did any good come out of the last year's financial turmoil? read what three economists think on our web site, newshour.pbs.org. on wall street today, the major indexes reached new highs for the year. the dow jones industrial average gained more than 56 points to close at 9683. and the nasdaq rose more than 10 points to close above 2102. the u.s. house of representatives passed a resolutio

ben bernanke's wife's purse was stolen at a coffee shop last year. >>> president obama is getting help combat this water flow from a beloved character. the government is preparing for an increase in the h1n1 virus. they are saying people should not alarmed, just prepared. the new campaign is starring elmo. >>> pregnant women and children under the age of two, as well as people with health problems are more at risk during the h1n1 flu. >> they live together, eat together, party together. students at fraternities and sororities know that they're on the front lines of getting the swine flu. the question is, what are they doing to protect themselves? it is like any other afternoon at pi kappa alpha. guys crammed, using the same things at a drinking out of the same cups. his life at a fraternity, at exactly housewife flute is spread. >> i am concerned, because of one person gets it, we are all probably going to get it. >> the flu has affected students from at least 17 college campuses. so far, this campus has no reported cases. students are doing all they can to keep it that way. >> student

ben bernanke is a smart man. he is an influential man.nd of recession. that belongs to the national bureau of economic research that typically makes these type of announcements months after we're out of it. >> yeah. >> it's basically usually an after -- it's a no-news event because it's -- >> right. >> we know it to be over. >> susan, when did that same body that you just mentioned, declare the official start of it? was it december of -- >> december '07 was when the nber said the recession began. but, again, that came well into '08, as i recall. >> yeah. yeah, we felt it a lot longer than that. >> it came a year later. my trusty producer tells me that the national bureau of economic research made the declaration that the u.s. economy was in recession one year later. >> one year later? >> uh-huh, yeah. >> geez. okay, susan, thank you. >> kind of slow. >> kind of slow. >> very, very cautious those academics. >> yeah. but good news from ben bernanke. >> uh-huh. >> things turning around. thanks, susan, appreciate it. >> you're welcome. >>> co

now gthner, bernanke, summers hav prey muchone at the end of the day a etty good j? >> absolutely. i think... they deserve some kind of special medal for getting us bacfrom the brink. >> rose:o you agree with that? >> i do. >> rose: is the an exception in. >> i dwith the exception that ther is a xed elent which is that they bght us...im said it correctly, they brought us back om the brink after making several steps tha might have bught us.... >> re: at the beginng. >> ectly. and that wil... >> rose: b without lman the cord would be very good en, huh? lehman i the..which is this day we mark the one-year annirsary of lehman. expt for that they didell. >> but, you know the a fundamental problem, i think, maybe litically in a democracy that politicians d government officials don't get credit for th crisis tt they avert. >>ight. >>ose: thank you. back in aoment. stay witus. >> rose: we now tn to afghanista the white house currently reviewing generaltanley mcchstal's strategy recommdations for way forward. ter a summer of increase de is lens an record casualties, the top u

that's the word from reserve chairman ben bernanke. but bernanke did warn that unemployment will remain high at least until next year. >>> a video shot in baltimore is causing more problems tonight for the well known activist group named a.c.o.r. n. kay jackson has reaction tonight from acorn. >> reporter: this comes at a time when few groups that rely on public funds can afford to lose that money. acorn, the association for community organizations for reform now is under fire. >> dancing is considered an art. >> sex is kind of like dancing. >> reporter: it stems from a so called investigation by a group calling themselves veritec visuals, when a man and woman posing as a prostitute and pimp walk into an acorn office. >> i don't believe it was accidental that this video caught acorn employees delivering the same message in different cities. >> it was a smear campaign, it was a campaign done again do discredit everything we do good on behalf of working families all over this country. >> reporter: that effort to make acorn look bad worke

fed chairman ben bernanke says the recession may finally bb over. cnbc's courtney reagan joins us live to exain why. >> reporter: federal reserve chairman ben bernanke gave a cautiously optimistic outlook saying technically the recession is over, but it will take some time to feel that way. it was actually bernanke's most direct endorsement yet that we've reached a bottom. while unemployment rates are dropping, it's going to be a while until we're add the pre-recession levels again. but on a higher note, facebook finally seeing profits. the company announced it's cash flow positive, bringing in enough revenue to pick up the capital expenses and expenditures. the facebook increased its leads as the biggest social network by reaching 300 million users. 70% of its users is outside the u.s., a sign of its huge international growth. >>> blockbuster, however, is still feeling the pain from the recession and will be shutting its doors to 960 stores. it's tried to compete with rivals netflix and red box by offering similar online services, but failed to see

bernanke's in-box. i think the fed and treasury want a cheaper dollar because they believe it will drive the export-led growth and they also believe that will stop overambitious consumer spending on exports. in other words, i think they are deliberately targeting a lower dollar, wayne and that's going to backfire into inflation? >> absolutely. they can't run the fed based upon fear and they are running it based on the fear that they will do what japan did in its decade and a half problem and that's the first gesture to higher rates and the economy tumbles. but that's not the case. we have a v-shaped output recovery. it's stronger than anyone believes. and it's time for chairman bernanke and the fomc to back it up with action. >> that's another point. maybe we'll put the leading inkay tors index back up. that's one of the themes of this show. we could have a barnburner recovery at least in the next year. it sounded like you don't expect any clear exit strategy from the fed at this meeting? no signals? no

bernanke suggesting that, at least for now, the worst is over. the question is, what will the recovery look like? you could argue that the markets maybe have it right. >> they may, but if you talk with the millions of unemployed people, they may disagree with that. the excess supply of goods would suggest that the unemployment rates will remain structurally high for a very long time. and how you can build a recovery off rising unemployment just confounds me. i just don't see how this happens. >> enzio, a few months ago, you pointed towards an october crash. do you still think we're headed towards a crash in october? >> yes, i do. and i think that where it's going to come from is curiously, perhaps, curiosity, it will probably come from china. once they have got through their 1st of october rallies and through their parades for the national day, then i think you may find a bit of a hangover setting in. so this is something and next to the other, perhaps, less learned reasons, if i may say, which is that october traditionally tends to be a bad mont

during a speech today, bernanke said the economy is growing at a moderate pace. he cautioned that unemployment will not recover so quickly. >> it is still going to feel like a very weak economy for some time as many people still find that their job security and their employment status is not what they wish it was. what the fault of a broken health care system that is sucking up all the money. when are we going to stop it? >> president obama said the key to revitalizing the economy depends on bettering the lives of working-class americans. he made a speech in pittsburgh. he also laid out plans to pay for his initiative which will cost an estimated $900 billion over 10-years. >> house democratic leaders passed a resolution for approval against joe wilson. he is the republican who shelton "you like" to president obama. -- shouted "you lie" to president obama. he apologized a second time on the house floor. he had already apologized to the white house. >> it is game playing. it is political game plan. this is what the president said should not occur. they proceeded w

. >> this week, federal reserve chairman ben bernanke heads to capitol hill to defend greater powers for the fed. on thursday, bernanke will testify in front of the house financial services committee, which is in the process 6 overhauling rules for the banking system. the obama administration has proposed giving the federal reserve more power to oversee the nation's banks and other large financial companies, acting as a systemic risk regulator. however, on monday, a top official at the world bank said that is not a good idea. world bank president robert zalig says there are questions about how central banks around the world handled asset price inflation and significant failures of supervision. instead of the federal reserve, the world bank president says he supports greater power given to the u.s. treasury department. in monday's speech, he went on to say, quote, the treasury department needed greater authority to pull together a bevy of different regulators. treasury is a department and congress can more directly oversee how to uses any added authority. >> even with confessed multi

ben bernanke said toed the recession, from a technical standpoint is likely over. but he says the economy still has a long way to go. consumers and businesses still have a hard time getting credit and households continue to save more and spend less. >> i think, some agreement among the forecasting community at this point, that we are in a recovery. that we will see growth in the third quarter. continuing. and that growth will continue in to 2010. >> ben bernanke said while the economy is growing, unemployment could still go up. well, retail sales did surge in august. up 2.7 percent. the commerce department said that increase is most likely thanks to the cash for clunkers program that boosted auto sales. the retail jump was the steepest since january of 2006. >> we will know tomorrow what the gang of six will be doing with health care reform. the group met today. and their plan will likely make health insurance mandatory. with those uncertain income brackets getting tax credits toward their purchase of a private plan. that would take the place of the public option.

however, chairman bernanke has emphasized aggressiveness of policy.and i think that the bargain is he did it on the way down. he should do it on the way up. >> if there's 3%, 4%, 5% inflation because of the fed, that's got to be great for stocks in the short run but we're going to pay the pipener the medium and longer run, aren't sfwhe. >> i don't think we're going to have that type of inflation in the near term. you have slackened the economy. but let me disagree with the point you made earlier on. when the fed starts hiking rates, the stock market may not fall because they'll hike rates when the economy has legs on it and the economy is rising. it's natural for rates to rise as economies are growing. >> i think that mickey there's a barn burner of a profit res coverry, which i think you said, a v-shaped recovery. but if the fed goes in .50 in .50s .75s, i think that's a challenge for the stock market. but we'll revisit this. it's a great plez sewer to see all of you. thank you, gentlemen. coming up, forbes has literally just released its annual list

former treasure secretary paulson, fed chief ben bernanke, and tim geithner. professor stiglitz says we still have too big to fail. did they make the right call? >> i think joe stigli tz has got it right. it's shocking that a year after this near economic cal amity that congress has not figured out a way to give the new treasury secretary and the fed the tools so they have a better choice should they be confronted with another lehman today. their view is they had only one choice. they could let them something into bankruptcy or bail them out. there was no way to do the resolution that joe stiglitz suggests. they asked for that authority and don't get it. so one thing it tells sus that both in the market and in congress, there is a kind of giant sigh of relief that the worst of the nightmare is over, and we are starting to see it return to the kind of behavior maybe a little complacency which is quite alarming given the many problems that lurk out there. >> why do we think the nightmare is over, because the markets have been trading better, and there's somethin

i would say when you have bernanke and paulson telling you not to do that, if you have bernanke and paulsong we're going to help you through this, do you back out of that deal? by the way, if merrill lynch did go, let's add up what would have hached. >> it would have been horrendous. >> remember, lehman brothers, and i write about this in my book, the sellout, which you failed to show at the beginning. >> we'll show it on the way out. >> i had to remind you of that. lehman brothers had a $600 billion balance sheet. merrill lynch had $1 trillion. and even more than that, they had 16,000 brokers who sell with customer accounts probably totally at least $1 trillion, maybe more. i can't remember the exact number now. you are talking about systemic risk out the ka zoo. i'm just saying -- >> and they're wrapping me, charlie, but it's sellout." ken lewis, the story right now, the feeling right now if cuomo sues him, they're saying he's not going, the board is behind him f the s.e.c. does, well, it's another story, he's probably out. >> thank you, charlie. >> i don't think it would be a very civil

ben bernanke said the recession is probably over. but, the most painful part, unemployment, will likely be with us for some time. president obama carried that message to american workers today, in two speeches to organized labor the president said his recovery plan is working and he reminded listeners that health care reform is part of his prescription. here's abc's viviana hurtado. >> reporter: the president told american workers the stimulus package helps save american families but economic recovery is just beginning. >> i know times are still tough for working people. i know too many people are still looking for work or worried they will be the next ones let go. but the recovery act is making a difference. we've stopped our economic freefall. >> reporter: mr. obama was in campaign mode to garner support for his economic policies including his plan to overhaul the health care system. he targeted workers at the afl cio's national convention in pittsburgh and earlier at a gm plant in ohio. >> as long as you still have an ounce of fig

the bolster with federal reserve chairman ben bernanke announcing last week. >> the recession is very likely over. >> reporter: ben bernanke was quick to warn the recovery will take time and unemployment is likely to hit 10% by year's end. still, green chutes are sprouting in even the driest of job environments. a resort group in hard-hit las vegas announced its wants to fill 12,000 new jobs, all permanent positions by december. later this week president obama will turn his attention to improving the global economy. at the g-20 summit in pittsburgh. diana avillar, abc news, chicago. >>> h1n1 or the swine flu, remains a threat and so does the seasonal flu. that's why the university of maryland baltimore is making sure that faculty and students are vaccinated. the university school of pharmacy and pharmacists from walgreen's held a flu vinic today -- clinic today. the university is doing the flu clinics earlier because of the swine flu vaccine to come. >> we're helping people here on the university of maryland baltimore campus get coverage for seasonal flu and also highlighting the fact

bernanke thinks too much economic growth causes inflation. the reagan and clinton years were pretty much uninterrupted economic growth with very little inflation. so why the fed believes this will remain one of life's mysteries. >> in this article, they make two other references. i want to get your thoughts on this. >> you think this is very premature, but they could start withdrawing cash by these rev s reverse agreements. they could do this without raising the fed kargt rate. they're talking to the dealers about accounting issues and june dating the government books. there's quite a lot. something like $500 billion or $600 billion of these rmps. they're updating the books and the accounting issues. does that bring us closer or further away from a surprise fed action? >> neither, larry. this just gets ducks lined up so when they're ready to move they're ready to go. the dealers need to understand how it's going to work. they need to make sure they don't put pressure on the operation by their funds rate. wouldn't it be nice if the president c

ben bernanke says the recession is over, and positive economic news piles up, but we may not be out of the woods just yet. are the markets getting ahead of the economy this week, or is this justified? >> well, i think it is justified, because we still have quite a few tail winds behind the economy. the problem with it, though, is a lot of the tail winds are coming from artificial stimulus from fiscal spending. >> what happens when that fiscal spending is reversed? a lot of people talking about what is the exit strategy out of the federal reserve, and what happens when the stimulus goes away? >> well, the good news, i suppose, is we still have probably another year of stem husband to keep -- to continue to push the economy in and hopefully the markets forward, but then it's like taking the patient off the respirator. we just hope that it can breathe. you can breathe once that's done. i don't think there are that many bullets left to, you know, keep stimulating an economy. >> ben bernanke just this week said that the recession is likely over, but that the recovery will be weak. do you ag

now we know where ben bernanke stood on the interestinterest-re motion in 2003.s, i would refer to dr. paul. >> than i yield to dr. paul. i do not know if he was listening. >> certainly, not permanently, but i would like to hear about it sunday. they claim that they release it. i would think that maybe six months worth three months would be reasonable. >> i look for it to working with you on this. i would hope that we can pass legislation and, if we can take away the fed pause best argument against it, that would be good. >> wait for the movie. >> i presume that one of the reasons that the federal reserve made an error on setting interest rates too low for such a long time and then other central banks followed suit was because, in the 1930's, there had been a real problem with the fed setting interest rates too tight. frankly, i think what transpired was that the fed thought that inflation would occur. they set the interest rates four years running. i asked mr. alvarez this question. i really believe that was part of what created the balloon in asset prices. i su

now we know where ben bernanke stood on the interestinterest-re motion in 2003.on this, i would refer to dr. paul. >> than i yield to dr. paul. i do not know if he was listening. >> certainly, not permanently, but i would like to hear about it sunday. they claim that they release it. i would think that maybe six months worth three months would be reasonable. >> i look for it to working with you on this. i would hope that we can pass legislation and, if we can take away the fed pause best argument against it, that would be good. >> wait for the movie. >> i presume that one of the reasons that the federal reserve made an error on setting interest rates too low for such a long time and then other central banks followed suit was because, in the 1930's, there had been a real problem with the fed setting interest rates too tight. frankly, i think what transpired was that the fed thought that inflation would occur. they set the interest rates four years running. i asked mr. alvarez this question. i really believe that was part of what created the balloon in asset prices

when bernanke on this very air in october, when bernanke came out that monday morning with $80 billion for aig i fought it. these were the kinds of things i think that could have been reasonably foreseen. we're only in this fix because the federal government involved with wall street. >> got to bail. thank you very much, jack. nice job. and time for tonight's parting shot. $2 trillion! that's the equivalent of 2,000 billionaires. and that's how much new household wealth was created in the second quarter, before the great recession ahad even ended. $2 trillion. that gives me hope. it shows how the american economy can be when it rebounds and it is rebounding. look at news out, jobless claims lower. august housing starts up. that $2 trillion rise is the first increase in household wealth in nine quarters. it shows that wealth grew at a 17% annual rate and the quarter ended on march 30th, upbeat grace notes are buried in the fed's flow of funds report. wealth in stocks grew by more than $1 trillion in the second quarter. mutual funds and pensions were up, too. and we even had a rise in re

ben bernanke recession may be over. nobody mentions it.t is all acorn all the time. >> i believe there are people who want to make this about obama meets acorn. bill: absolutely. >> he was their attorney for a short time. he defended them in the motor voter case. that was the extent, basically. acorn is a new van jones. conservatives elm paired they got van jones. now they will use acorn to get obama. i think unfairly. bill: doesn't matter whether you think it's unfair or not but it's happening. >> let's call that out that's what this is it's an attempt to go after the president of the united states by tying him to acorn. it's not a fair line of attack. bill: what difference does it make whether it's fair. it's politics. >> is it real? his his association something with him that should bring him down or hurt him? bill: i don't believe it is real. although i do believe that obama sympathizes with acorn and what acorn wants to do. >> all right. bill: community activism. >> is it fair to say they have done terrible things and these videotapes

. >>> bernanke and geithner, two heavyweights, one very heavy job. regulating america's banks. i wonder if they really look like that when they take their shirts off. which one, ben or tim, should win the power struggle? ben mitchell is a senior fellow at the cato institute. i hope you both got to see our beloved financial leaders with their shirts off. those are real pictures. i'm sure we didn't put heads on different bodies. that wouldn't be right. christian, let's start with you. bob zoellick, world bank president, said in a speech today, and he's going to talk about it with larry kudlow tonight on larry's show, it will be difficult to vest the independent and technocrats at the fet wi-- fed with more powe. >> we need a clear systemic risk regulator. congress needs to define what that role is, but generally the fed is in a better position. it's an independent agency that's staunchly independent. i think that's exactly what wee need, an institution that's not beholden to political interests. again, it needs to be defined in a way that actually makes sure the fed will act as a

bernanke also added the job market's recovery will be slow.etail sales report has helped stocks rally. >>> was a georgia mother the victim of a vicious hate crime? the vicious beating she got in front of her 7-year-old daughter coming up. rogaine? i'm just a skeptic so i don't necessarily believe that anything is going to work but i was like, hey, this actually works. (announcer) only rogaine foam is shown to regrow hair in 85% of guys. i'll check it out and i'm like, nice. (announcer) rogain foam. stop losing. start gaining. >>> americans trust for the media is falling every year. look at this. a new survey shows that only 29% of americans feel the media generally gets the facts straight. well, we always want to hear from you. our viewers directly. we put that question to you today. do you trust the media? tell us why or why not. head over to our blog. you know where it is. cnn.com/heidi. you'll see more about that survey that was done and then our question there. do you trust the media? why or why not? we'll bring comments to you. some peopl

fed chief bernanke that the recession is almost over.ket committee upgraded take on the economy, remember the tepid leveling out we got in august has improved from there. the committee on average estimates the economy contracted 1.5% last year but acknowledges economy has returned to growth. in the second half members could upgrade second forecast. don't get back to the forecast for potential growth, two three-quarters. despite higher growth the fed will stick to the forecast of continued lower inflation and only a gradual decline on unemployment. there's little affect on the interest rate side of the fed's policy. where there could be an effect is on what they call the credit easing side. the fed announced an end to the treasury program a month later at the august meeting but extended the end date to october. the fed may do something similar with mortgages, reducing mortgages. you can see where they are on strategies. almost done what they said they were going to do on treasuries. a ways to go on mortgages. they are close on agencies. s

well, fed chair, ben bernanke, seems to think so.id the recession is very likely over, but he said there's a pretty rough road ahead. bernanke was speaking to the brookings institution in washington. it was his first speech since his reappointment. >>> somalia's government confirms that the fbi forces have killed one of the al qaeda's top operatives. he was killed yesterday in southern somalia. u.s. forces used a helicopter to fire on a car killing several people including the al qaeda operative. among other things he was linked to the 1998 u.s. embassy bombings in kenya and tanzania. >>> in baltimore, no decision yet on whether a college student will face charges for killing an intruder with a samurai sword. the johns hopkins student said he was attacked by the man in his garage and he used the sword to defend himself. >>> what happened to civility on the tennis court? first, serena williams' outburst at the u.s. open, now roger federer, five-time open champ was beaten in yesterday's final by juan dell po portro, federer lashed out

the recession is probably over according to ben bernanke. >>> most kids would say the best part of their day is recess. students in spotsylvania county are getting less time for recess. a lot of students and parents are upset. >> the school system slashed recess to only 50 minutes a day. they need to raise test scores. they need to cut recessed to do that. >> we have to balance the need for math and science and social studies. >> i know that children like to play a. they gained social skills. >> students still get a full half-hour in kindergarten through second grade. this is about the teachers and the administrations, not about the kids. >> got to get out and move around. >>> lisa baden is watching the roads. >> southbound on 270, i'm hearing about two pickup trucks stock in the lane. this is out of frederick. the ea of the work so, but they're only blocking one lane. 95 maryland has icc work. they are starting to pick up construction barrels. there has been in a motorcycle accident on branch avenue. traffic cannot get by. northbound route 5. lingering row work on new york avenue betwee

. >>> the fed chair ben bernanke says the recession is likely over but don't get ready for the rebound just yet. stay with us. fox 5 morning news continues right now. >>> start you off with a view of the beltway at the american legion bridge. there has been an accident just north of the american legion bridge. can you see how much it is affecting traffic this morning. big problems there. lots of emergency vehicle on the scene. you can imagine what this is going to do at #:00 on a rush hour wednesday morning. we'll check in with julie wright for the details in just a couple of minutes. thank you for waking up with us. i'm steve chenevey. >> i'm gurvir dhindsa. i think that was around the persimmon tree exit and that area around potomac. we'll find out from julie maybe some alternate routes that people can take. >> there are some wet spots out there and there is a little bit of fog out there as well. you want to slow down and take some precations. let's start by taking a look at the radar and we'll show you how things are shaping up across the region. you can see we had some shower activ

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ben bernanke says the recession is very likely over. he says for the first time there is agreement that a recovery has begun. he warns the rebound probably will not produce many jobs. >> it will still feel like a weak economy for some time as many people still find their job security and employment status is not what they wish it was. >> retail sales numbers seemed to back that a recovery is on the way. americans started spending again last month. the numbers rose 2.7% in august. the biggest boost came from car lots. the cash for clunkers program drove up sales. insurance costs keep rising. the average cost of an employer sponsored family policy is up 5% this year to more than $30,000. about 40% of company said it will likely pass more of that expense on to workers. the airline industry is predicting another huge loss this year. airlines worldwide will lose $11 billion after losing nearly $17 billion last year. it will be the worst to year. in industry history. blockbuster may close as many as 960 stores by the end of next year. they ha

on capitol hill no carrier this week federal reserve chairman ring no carrier ben bernanke will defend the central bank and its ring no carrier powers. he'll testify before a house committee that's > looking to reform bank regulations. no carrier bernanke is ring expected to owe pose a measure seeking to no carrier remove the fed's authority to no carrier ring supervise no car banks. walmart may be the new symbol of ring america. a 60 no carrier minutes vanity fair poll says more than half of those asked chose the discount > ring retailer no carrier ring has the institution that best symbolizes no carrier the country over google microsoft and even the nfl. the poll also ring suggests that a no carrier majority is okay with taxing the ring no nation's richest people by ring no at least 50%. and even in death, > ring michael jack son is no carrier selling out. ring no carrier ticket sales to advanced no carrier screenings of the music no carrier documentary "this is ring it" no carrier were all gone within j ri two hours on no carrier no carrier > sunday. fans like lined up three ring no

don't forget, ben bernanke made a big splash last week when he said this recession is technically over, but also, not to anticipate much growth. actually, he said anemic growth was in the works. that has most people saying, you can probably expect the status quo, they say maybe a 5% or less chance you'll see an exit strategy in place from the fed today. none the less, we are up 20 points. matt nesto? >> about 10:30 this morning, that's when the market started to head south. about a 1 3/4. chevron, one of the worst performers today. the coal stocks are up 15, 20%. about 5% here today. the drillers like rowan very weak. the flip side, the strength is the telecom stocks, which have been the worst. that's led by mr. cramer's call. he thinks that stock could see $30. >> let's talk about those earnings forecast. gm one of them. >> amazing. general mills. of course very strong today. the holy grail of getting it down in earnings season. then guidance at ford today, it's one of the best performing stocks in the s&p 500 right now. they're coming out with a new car, italian for cool. >> we've go

ben bernanke offered his updated view today.n though from a technical perspective the recession is very likely over at this point, it's still going to feel like a very weak economy for some time. >>er be thankbernanke says the will be moderate. dow industrials ended at 9,683. s&p 500 gained a third of a percent. >>> many economists said the recession is over, bernanke's comments helped to lift the market which had been lower before he spoke. stocks got a boost from a better than expected report on retail sales. sales last month rose almost 2.7%. most of the gain came from car sales. enyou take out those figures sales increased by more than 1%. >>> kanye west called taylor swift after her appearance this morning on "the view." we're told he apologized to her for the little outburst on stage during her acceptance speech at the mtv music awards. that's the word from the representatives who say taylor accepted the apology. last night kanye west kicked off the apology tour on "the jay leno show." >> i want to give and do something th

and then federal reserve chairman, ben bernanke, gave a caution out look yesterday saying technically the recession is over, but it will take time for the people to feel that way. it was bernanke's most direct enrsement, believe it or not, that we likely reach aed a bott. >>> blockbuster is trying to recoup losses due to the economy. it tried to compete by offering online services, but failing to see profits from the physical stores. back to you. >>> courtney, thank you. >>> the time is 11:49. still ahead, a reunion you just have to see happen. >>> also, meteorologist, tom kiein, will come back with a check of the forecast on wednesday. >>> we are looking for people that make the day special in the early-morning hours. if you know somebody like that, e-mail their story and a clear close-up picture or >>> the search for greener vehicles could get a boost today. the u.s. house may vote on a bill that would allow the energy depositment to spend up to $550 million a year to conduct research. it is the latest move to help the ailing auto industry. the bill would push the government to team