federal reserve chairman ben bernanke has signalled that the u.s. central bank is poised to take new measures to boost america's sluggish economy. in a speech in boston on friday, ben bernanke said stubbornly high unemployment and the growing risk of deflation there make the case for further action. that action could come at the end of the fed's next regular meeting in early november and is likely to take the form of so- called quantitative easing, whereby the fed purchases large amounts of government bonds to boost the economy through a lowering interest rates to stimulate spending. despite ben bernanke making a pretty clear that more stimulus is on the way, shares fell on wall street. earlier, i spoke to our correspondent at the new york stock exchange and asked why the market reacted negatively to bernanke's speech. >> you could read the statement from federal chairman ben bernanke that more cheap money is on its way, but you could very well read the statement that may be more money but maybe not as much as wall street

that was the signal from chairman ben bernanke today. but he stopped short of exact details, and said the risks of future moves are still being weighed. speaking at a conference in boston this morning, ben bernanke cited concerns the economy isn't improving fast enough. >> with growth in private final demand having so far proved relatively modest, overall economic growth has been proceeding at a pace that is less vigorous than we would like. given the committee's objectives, there would appear, all else being equal, to be a case for further action. >> brown: chairman bernanke suggested the fed could expand its purchases of government debt in order to lower long-term interest rates, a tool known as quantitative easing. but he admitted the policy comes with some risks and uncertainies. >> we have much less experience in judging the economic effects of this policy instrument. >> brown: another concern cited by bernanke was inflation, but not the familiar problem. indeed, the labor department today announced the consumer price index had rise

headache for bernanke.t is an enormous political issue in washington. it is going to drive political discourse over the last two years of obama's administration. it is not going to be resolved soon. >> consumers are the key to the recovery, and there is no evidence they are ready to spend again. until they are, this recovery is likely to remain on hold no matter what ben bernanke does. >> the u.s. government has delayed a report which could officially accuse china of manipulating its currency. it was due to be published on friday. it is now being delayed until after next month's g-20 meeting. china's commercial are commerce ministry said its exchange rates must not be used as a scapegoat for america's economic troubles. >> hundreds of residents affected by a toxic spill disaster in hung ea have been allowed to return to their village. hundreds of people were injured and thousands displaced wednesday a storage reservoir burst open a few days ago. from budapest, nick thorpe reports. >> going home at last, the

at a speech in boston, bernanke said the u.s. is plagued by high unemployment and the threat of deflation. >> tom: suzanne, in this environment, the fed chairman said the central bank could resume large purchases of government debt. that's exactly what financial markets expect bernanke and company will decide to do at their next policy meeting in early november. >> suzanne: while such action appears likely, the fed chairman also noted today that caution was warranted with any innovative policy. >> one disadvantage of asset purchases relative to conventional monetary policy is that we have much less experience in judging the economic effects of this policy instrument, which makes it challenging to determine the appropriate quantity and pace of purchases and to communicate this policy response to the public. >> suzanne: when chairman bernanke talks, a lot of people listen and many trade on his every word. those traders have been sending the currency markets into turmoil. it's a concern for everyone who buys things made overseas or

top of bernanke is a jan i think the president of the federal reserve in the u.s. is very more focused on the on restart growth and shaping up the balance sheets the household balance sheets in the u.s. not to weaken the dollar i think the biggest problem that between the g three so that's us japan and europe is that the europeans just cannot print heroes or is that the americans they can print treasury they can print dollars and the japanese can print t.v. is there right now just cannot for a deal say he is printing sorry the it is already i mean he was. back but between limit he said to me like thank you but again they're committed to buying them back it's all done through repose and they have to take those euros back at some point whereas the way of the americans and the fed and the b.o.j. they eventually will take those dollars back but it's uncertain when they would do it whereas of the europeans it's certain those are the report agreements that are done so they take the money back i think it's a very different get here this is one of the reasons that the euro

the foreclosure fiasco is now getting ben bernanke's attention. the federal reserve chief said today the central bank is "looking intensively" at lenders' policies, procedures and internal controls. >> tom: susie, bernanke's comments come less than week after the obama administration's top housing official said there are no systemic problems in the mortgage market. but now it appears the fed is weighing in, trying to figure out whether problems with the system led people to lose their homes to foreclosure. >> susie: speaking at a housing conference in virginia, bernanke also talked about the impact of risky lending on the american dream. >> homeownership is only good for families and communities if it can be sustained. home purchases that are very highly leveraged or unaffordable subject the borrower and lender alike to a great deal of risk. >> susie: that conference aimed to tackle the future of housing finance. but as stephanie dhue reports, while everyone agrees the foreclosure mess needs to be fixed, there's dis agreement on just how to do it.

---bernanke dijo que mas del 20 por ciento de compradores, debe al banco mas de lo que cuesta la casa un 33 por ciento esta en riesgo de que si bajan los precios de sus casas puedan perderla. ---y a proposito: ¿sabia usted que cada embargo de propiedad por los bancos en san jose, le cuesta al gobierno local ? ---si : puede costar entre 5 mil y 34 mil dolares, porque las autoridades de la ciudad absorben los gastos de inspecciones, seguridad publica y de recoleccion de basura. ---hoy, la ciudad anuncio que ya esta situacion no puede continuar .... y la estrategia podria dejar temblando a algunos bancos. =blanca garza=la crisis continua, los embargos a propiedades en el condado de santa clara tambien, pero las autoridades y la comunidad toman cartas en el asunto para cambiar esta dificil situacion para miles de familias. familias. 1:50:15 " es que el banco, los bancos estan tratando a la gente muy mal y creen que esta bien pero eso no. "1:50:22la organizacion no lucrativa "pact" y los concejales de san jose dijeron hoy que quieren que las quejas de la comunidad se hagan escuchar.lo que

fed chairman ben bernanke announced monday that central banks will probe whether banks cut corners tomeowners. >>> it's feared the widespread problems of foreclosure paperwork will hold up recovery of the housing market. after a slow summer, sales of existing homes shot up 10% in september. but even at that pace, sales are still considered weak. anthony mason has more on the investigation into the mishandling of foreclosure documents. >> reporter: bank of america will resume foreclosure proceedings this week after halting them temporarily to review procedures. the bank, which is resubmitting documents in more than 100,000 cases, admitted finding some errors in the paperwork, including misspelled names and incorrect data. but says the bases for our foreclosure decisions have been accurate. >> i don't think this problem is solved. >> reporter: iowa's tom miller, one of 50 state attorneys general coordinating an investigation into foreclosure proceedings, says they've just started discussions with the banks. >> but we're very conscious that we need to move as quickly as we can. we do not

chairman bernanke made it pretty clear that the fed is prepared to act. and along with stocks running higher, we saw treasury prices initially rallying and then giving back some ground. but the dollar started falling broadly against both the yen and the euro. the euro was breaking near the highest level we've seen since january. back to you. >> cnbc's becky quick from cnbc world headquarters. thanks very much. >> sure. >> so the fed chairman pushing for stimulus. >>> anyway, less than three weeks to go, midterm elections are hitting the home stretch, with both parties playing the expectations game, we'll get a reality check on the state of play. >>> plus, home remedies for the foreclosure crisis. ideas on how the government and the banks can do better to help these struggling homeowners. >>> but first, a look ahead at f the president's schedule. as you can see, he's headed to delaware with the vice president today and then he comes back to the white house as a private meeting with former secretary of state condoleezza rice. anyway, you're watching "the da

this is done that this approach this is how our faculty we've got ben bernanke the helicopter ben as i think he'll go on history he's going to quantitatively anything he possibly can but i think one of the most important things we have to look out is also the fact of not just what the banks are doing in one direction but actually what the banks are demanding and i think it's interesting that for example when portugal decided it needed to be bailed out one of the large supranational banks doing well they're not taking their paper they're actually demanding gold so they want hard fixed assets and that's therefore rather worrying within europe the difficulty is that quantitative easing is going to be difficult to achieve because effectively they've spent all the money anyway so therefore there's nothing more to spend i'm going for with the folded money well at least she was a child of hers. about the gay way that's the difficulty it doesn't just go away with one recession unless it's a very short sharp recession i mean countries like for example the baltic states some of the parts of ea

bernanke's old message.ntually, congress has to deal with these long-term issues but not today. >> speaking of the government dealing with issues, the justice department filed a lawsuit against three of the big credit cards talking about master card, visa and american express saying you know what? you are not playing fair when it comes to dealing with your customers. master card and visa said okay being maybe we can work something out. american express is standing tough. >> they're going to fight it. this has to do with the fees that are charged to the retailer to accept your credit card. in some cases, they are paying 4%. say had a dollar transaction, they are paying master card and crease vees aand american express just for the privilege of swiping card on your behalf. there are cheaper ways to do it. lawsuit alleges that master card, visa and american express don't allow the retailer to give you a discount to avoid the fees. master card and visa have settled with the justice department. american express i

is in the same situation even ben bernanke addressed one yesterday and that is the u.s. the debt was on unsustainable and we have been saying that for quite a while i said was a fiscal gap of two hundred trillion two hundred two trillion go us dollar actually has fifteen times the nation. a debt level if you include the unfunded liabilities of the us like the medicare medicaid and the social security fund so it's two hundred two trillion they're short of money that they don't have and they will have to increase in the print of this money so it's a struggle for survival in the rest and i would say the rest is going to export of inflation around the world and this is why some of the other countries are now saying well we don't want our countries to appreciate too much you know from brazil to japan china and so on so everything for investors the most important single understand about the cons of all is that globally we are likely going to see much more much of a rise in inflation and commodities are going to rise as a result in gold and so who are some of the best investmen

fed chairman ben bernanke. and the russian markets again here in moscow is still weighing on both of course this energy majors are edging higher though we've got functioning half a percent of the my sex and the new court is lending support of both of course is up around one percent. russian post aims to become one of the country's biggest retailers to stop the selling food and other items in several of its moscow branches if successful the new much advice will be rolled out to other post offices throughout russia russian place currently has forty two thousand officers. the world's leading retailer wal-mart is once again stalking the kopeikin discount chain after pulling out of the deal this year and the latest twist that misty daily says a rival better x. five retail group may walk away from the talks the paper is valued at about one point five billion dollars when what has been trying to enter the russian market for years though it still has no outlets here. food prices continue to rise corn has seen its bigge

in a highly anticipated speech in boston, ben bernanke suggested that the u.s. government should purchase u.s. bonds. that should drive down long- term interest rates. this is a done deal but still at issue is the size of the program. bernanke says, at this point, he expects slow economic grow next year and continuing high unemployment. >> economists are concerned about the latest report on retail sale. for a third straight month, retail sales are up 3.6%. consumers put more in cars, furnish tour stores and do it youre stores. >>> advocates for the -- they claim that the banks are collecting nearly $1.5 million a month in atm fees from welfare recipients and say that amount is nearly d.c. what it was two years ago. the california department of social services says that the state has no control over banks and that welfare recipients can make up to four withdrawals at atms part of the system. >>> and we have more on the developing story on a shooting in the south bay >>> and some california voters want to legalize marijuana. but the feds are not on board and we'll

and tim geithner -- with henry paulson and bernanke and tim geithner a trio on economic policy. we just got the report on tarp, which is that it is going to lose by less hundreds of billions than anyone expected and it might turn a profit. he is a guy who was kind of middle of the road and i don't see why you would want to jettison him. the real issue is is obama committed to keynesian economics or not? i think he is and will not have any change in policy. >> john kennedy said that there are two things are real, got, folly, and laughter. -since we have no control over the first two, we have to of the -- after have the third. that is something that is missing in a town that wants desperately, for barack obama and his administration to succeed. >> it starts at the top it is a description of obama. >> i don't think obama is without humor -- >> have you seen him be self- deprecating? >> yes, i have. >> i think some of this is irrelevant. the problem is lack of success. if obama was succeeding with the policies he wants, he could be as dour as he wants to be everybody would still che

it will be politically unpopular decision. >> how often are you in contact with ben bernanke? >> we have lunch and see each other it's meetings. he's attending the fsoc meetings. i have a lot of respect for ben. >> tom. >> um, i want to ask you about something that happens every weekend. go into banks and close them and sell off the assets. how basically a process is this for the communities? and how far through this difficult time are we? there's 130 or so banks closed in this way? >> that's a good question. it's never a happy thing for a bank to be closed. like foreclosure, it's a necessary thing when banks are no longer viable. it doesn't do anyone any good. and we learn through the s&l process. they become no longer viable. it needs to happen. almost all the resolutions are what we call whole bank with law share. we are able to get them to a healthier bank to protect the deposits and acquire the assets to maintain the relationships. it will be a borrower. we try to provide continuity with loss share transactions. they have worked pretty well. a lot of community banks are b

fed chairman ben bernanke and also google. let's start with bernanke.y anticipated his speech this morning. basically saying mormon teary stimulus may be needed to safeguard the economy. the fed ready and willing to pump more cash into the economy. seeing follow-through on that as well. google shares jumping, up about 10% trading at just under $600. that's what happens when the world's most popular internet posts better than expected results. we have the dow, s & p and nasdaq all trading a little higher at the moment. shares better analysts' outlook. we have some comments from mattel. the toy maker saying sales in the asian pacific region soared. barbie sales jumped, hot wheels fell. profit smaller than expected. fisher price sank with a big recall last month. i'm jane king. >> all right, jane. have a great weekend. >> toy story 3 would boost ken doll and barbie sales, right? >> you would think. >> the outfits. >> don't forget the car. >> and the car. >> and the car. >> a convertible. >> the closet. >> yeah. >> that was a good movie. >> it was. (laughte

host: chairman bernanke is speaking on friday. what is the word on the street about what he is going to say? guest: he is speaking in boston at the federal reserve bank of boston. they are holding a conference. how do you manage monetary policy in an environment where inflation is low and interest rates are low? what is interesting is the boston fed had this same conference in 1999. this is a reprise of a conference they did years ago. it was meant to address the situation that japan was in. very interesting exchanges. a policy member spoke at the conference. never get to the place where interest rates are as low as they are and inflation is as low as they are. he said i can assure you, it will be more painful than you can possibly imagine. a survey of the people in the audience said do you think america can ever get into this situation? not a single person raise their hand. here we are 11 years later in the situation. we are in a situation where is similar to japan's back then. one of the people in the audience was our fed chairm

. >> susie: so tom, do you think ben bernanke knowthe minnetonka indy indicator? maybe we should tell him about the water effect on the economy? test as long as those boats are seaworthy it may be a lot easier to refloat them, certainly, that's definitely the truth. let's get you update on what we're watching for next week. our friday market monitor is james paulsen, chief investment strategist at wells capital management. we'll get an update on housing from the september reports on new and existing home sales. and the first report on the third quarter g.d.p. is out. monday: our shoptalk series look at ikea and how its eco-friendly policies are giving it a competitive advantage. >> susie: the u.s. postal service still wants you to pay more for stamps. it plans to appeal a regulator's decision that denied permission to raise rates to 46 cents a stamp. the postal service says the increase is needed because of losses caused by a drop in mail volume. it blames it on the weak economy and a shift to email and online bill paying. >> tom: federal regulators are getting in

fire holder, geithner, bernanke. get people in who will enforce the rule of law. >> professor black -- >> and stop the foreclosures. >> we look forward to having both of you back to the extent to which you're making it easier for everyone to understand this problem. i thank both of you and come to really understand the scope of the problem. people understand why a very deliberative and real response to this is what's in order. for this problem. thanks. >>> coming up, an inconvenient truth and this isn't about the banks. this is about the wars. 400,000 pages of inconvenient truths. we'll break down the new wikileaks files and why our government, sound familiar? would rather bury the evidence of crimes, murder and destruction perpetrated with u.s. dollars, u.s. hands and a u.s. endorsement. two out of three killed in iraq, a civilian killed by an american. no investigations there either. we're back with details. wonder how much this country can take. [ male announcer ] prilosec otc traveled to fairbanks, alaska. home o

. >> new this this morning, ben bernanke will give more detail of government action to stimulate the economy. for other news before the bell, live at cnbc headquarters. >> good morning to you. futures are slightly lower this morning as the marks and investors await the key speech from ben bernanke. he speaks at a conference at 8 p.m. eastern time. investors will hang on his words and for clues on when they begin a new program to try to boost the economy. we are also listening for information on the plans to raise inflation forecasts. this could encourage businesses to spend money before prices go up. asian marks are mix and europe is a touch positive. reports on consumer prices and retail sales and consumer sentiment. we had earnings from ge beating by two cents per share. the dow will open trading at 11,094. the house is expected to vote on giving a $250 bonus payment to social security recipients to make up for a lack of a cost of living increase next year. the social security administration will make it official today. the bonus payments if passed would be stillular to a stimulus

on capitol hill, fed chairman bernanke, f.d.i.c. chair bair, the c.f.t.c.'s gensler and comptroller of the currency walsh were among those testifying. together, along with treasury secretary geithner, they're the newly created financial stability oversight council. a key author of the law, senate banking committee chairman chris dodd, called on the team to work together. >> this organization is not intended to be a top down, but rather a collective gathering of equal partners in all of this. and i would expect that no one to hide behind the work of the fed or the treasury, nor to be intimidated by it. >> susie: the group has to write hundreds of rules to put financial reform into place. it holds its first meeting tomorrow. >> tom: the european debt crisis isn't over. spain today lost its triple-a credit rating. moody's downgraded the country on worries about its budget deficit. the credit rating agency says spain must convince financial markets it can pass a budget that cuts the deficit. spain's unemployment rate is 20%, and its economy is predicted to grow

ben bernanke attended today telling group feral investigators continue to look into whether mortgage companies cut corners on their own procedures when they foreclosed on pele's homes. and there was a bit of good news on the housing mark today. home sales were up 10%. despite that the hoing market may be thawing, some experts say we have a long way to go. >> by no means are we out of the woods yet. we have millions of homes and it will take long time to get through that. >> bernanke expects preliminary result by next month >>> a rare look inside the construction site for the dulles rail project. dulles rail is a 23-mile metro extension from east falls church metro station at the dulles airport and beyond to ashburn. today crews were showing off the face of the twin nnels which go under a portion of tyson's corner along with tyson's e station site. the first pse of the construction runs from east falls church westward with four stations in tyson'sorner east edge, on the east edge of reston. the first part of it is scheduled for completion in 2013. that's the wheel station. wheeling st