bernanke basically calls up paulson and says, "there's no endgame in sight that looks good. things only look like they're going to get worse. we have to do something more direct, more direct involvement of government in the banking sector." >> narrator: bernanke wanted paulson to help convince congress to initiate a massive bailout of wall street. >> bernanke says to paulson, first of all he says, "you have to go to congress. we can't do this anymo on a case-by-case basis." at that point, paulson bowed to the inevitable. one thing paulson said to me in an interview is, "when the situation changes, you have to be willing to change with the situation." >> narrator: on capitol hill, the democratic speaker of the house nancy pelosi knew nothing about bernanke and paulson's plan for a wall street bailout. >> i called him to say, "mr. secretary, can you be to my office tomorrow morning at 9:00 sohat you can brief the house democratic leadership?" and he said, "madam speaker, tomorrow morning will be too late." >> narrator: paulson told the speaker that he and bernanke needed to co

devis from athens about it and history resists what as it reportedly is becoming the focus of ben bernanke you said we'll talk about why let's get to today's capital account. this weekend we saw elections in france and in greece now although the former resulted in the ousting of nicolas sarkozy who has been at the helm of france since the beginning of the economic crisis the latter is arguably more important it is as it is shaken the foundation of the e.u. and i.m.f. led reforms in the deficit countries greece has really been the poster child for the eurozone crisis its economy has contracted significantly since the onset of the crisis miring it in a deep depression that is resulted in untold hardship for a great mass of the people it's resulted in violent riots and intense anxiety about the future of the country now the party that has presided over the country from the onset of this economic and social depression has been stuck whose leadership has chosen to negotiate with the country's creditors the i.m.f. and the e.u. rather than unilaterally default and exit the single currency union t

ben bernanke had the fine sense to bash paul krugman, your left wing friend.said it's time to reinflate in order to bring down unemployment, bernanke said that was reckless. you don't expect bernanke to react just because we have a couple of misserable jobs numbers, do you? >> well, first of all, ben bernanke may bash paul krugman now, but he hired him to the faculty of the princeton economics don't when he was running it. let's not -- let's curb our enthusiasm. ben bernanke is politically weaker today than any time during the tenure at fed chairman. he is not in charge of the show. other people in the arise to be extra see controlling policy. bernanke is the least dovish of them. ultra doves are in control, janet yellin and william dudley. if it weren't for bernanke holding the bank we would have six months ago had a trillion dollars in unstare rilized qe. janet yellin is a big government girl, you know what big government is about fit doesn't work the first time, try it again bigger. she has two lousy job reports in a row, i guarantee you that janet yellin a

kaiser this is the kaiser report the war against financial terrorists like jamie diamond and ben bernanke will be one in places like this the global nerve center n h q of gold silver dot com here in santa monica california stacy herbert talk to me max everywhere we go here in america we see debt pushers and the result of their over debt pushing they're pushing this debt crack on people who are just dropping dead all over the street so i have a headline here that is going to put into context and explain this bigger debt pushing story the most dangerous drug in the world devil's breath chemical from columbia can block free will wipe memory and even kill scopolamine often blown into faces of victims or added to drinks within minutes victims are like zombies coherent but with no free will some victims report emptying bank accounts to robbers or helping them pillage their own house and this is taken from the get you drunk tree in colombia yes well you could on the name for that financially speaking would be served or it creates financial zombies like japan for example many zombie banks are roa

bank ba ben bernanke and paul krugman. don't forget, free market capitalism is the best pet for prosperi prosperity. we'll be right back. almost every day i walk into the office and somebody asks me a question about the volt. what really blows them away is when i tell them i almost never go to the gas station, despite the fact that they see me driving to work every day. i fill the volt up once every -- maybe once every couple of months. and that feels absolutely wonderful. i'm hardly using gas, but it's there when i need it. anybody that thinks that this car doesn't have solid performance, hasn't driven it. there's no other car like this on the road. ♪ welcome to the world leader in derivatives. welcome to superderivatives. >>> stocks shrugged off europe and fought hard through a race of early losses today. the dow ended down. the nasdaq and the s&p were able to eke out small gains. joining me now is michael farr, president of farr miller and washington. michael holland, chairman of holland and company. i want to play a ta

and as i said in that article, i wish chairman bernanke would reread what professor bernanke had to say because i believe in his professor years he had it right. >> can you explain the current role that you think exists that mr. bernanke might be facing? >> okay. this is speculation, at this point, we don't know. and i like to imagine that somewhere a locked drawer, he's got a notebook in which he writes, the truth i believe that mike witford and paul krugman, all the economists who are urging me to do more actually had it right. he said the view of the committee. he didn't start by saying in my view, he said the view of the committee. look, the fed, if you're the fed, what do you like better? just thinking about the institutional imperative here. do you like the idea that it's your job to cause an economic recovery. or do you like the notion that your job is to do what is considered responsible for the fed to do, and as long as you have done that, whatever happens to the economy not our fault. the view that he's expressing there makes life much, much easier for the institution. and i t

on both of those cases he was first to say bernanke was right on. now comes along and bernanke is chairman of the fed and guess what he's saying now? the federal reserve chairman has the power and the obligation to end the slump and the human misery that comes with it. so what's stopping him? so here you are, you're a fellow princeton professor, chairman of the fed who you praised lavishly in the past... >> and when attacking his current policies i mostly quote from the writings of an economist by the name of ben bernanke. >> rose: what is it he said then that he's not saying now that's so right. >> he said... there were specifics. he urged the bank of japan. so japan ran a dress rehearsal for what we're in right now. japan slumped... >> rose: that's a long time. >> right, the long decade ends up being about 18 years long. but japan had its slump but it had many of the features of what we're experiencing now and... although never as terrible, by the way. there was never as much here is human misery as we're going through now. >> rose: how do you mea

bernanke. he's obviously been reappointed and reconfirmed by the senate. but once again, there have been predictions that haven't been born out. the interventions by the fed to deal with the problems that we had from the financial crisis have not led to inflation. inflation is not at the point where it has become a serious problem for people. the interventions they've made have actually made money for the federal government. they have not added to the deficit. as i said, the opening shows they haven't caused problems in terms of any kind of conflicts of interest. we did make some changes in the legislation that was passed. we mandated much more openness. we repealed that part of the bill that said the fed could give money whenever it thought it was important to do so, if they thought they might get paid back. the best example of that was aig. unilateral intervention by the federal reserve. we still are owed some money. we replaced that with some other ways to go. finally, i think it would be great to appeal the dual mandate. yes, it is true that in the lon

setting his sights not on herbalife but on ben bernanke.einhorn blasting bernanke and the fed over its low interest rate policy likening it to eating jelly donut after jelly donut after jelly donut. he says chairman bernanke is presently force feeding us what seems like the 36th jelly donut of easy money and wondering why it isn't giving us energy or making us feel better. einhorn, does he have a point? steve, what do you say? i read this article too. if nothing else, he really does make you think. >> definitely makes you think. but makes me think that he doesn't have a good beat on monetary policy. i think he's gone astray in several places. the first is that he ignores a lot of things going on out there. he has a misconception of who the savers are in this economy and who the spenders are. who the leveraged are and the unleveraged are. what he wants to do is raise interest rates to the 3% range. and he says that will get us to do investment, which by the way we've had pretty good investment in the last year. second of all, he says this wi

gave one crewmen a kid bernanke not being enough of an academic in his running of the fed saying he should do more burning he said recruitment was incorrect and fire back when he had the opportunity and program when he had his double down take a look at what's happened to bernanke you say he's been assimilated by the borg he's become he's become more concerned probably unconsciously with defending the institutional safety because it's the apostle of profitability then with doing whatever he can to get this economy moving that wasn't enough he wants more opponents the whole lot crewman went after c.e.o. of hewlett packard carly fiorina within that panel. nothing you said of a business taxes is actually true and so we think that's how she doesn't split with but it's not true. now not true and that wasn't enough he had to go into with blog afterwards and basically the whole panel saying we're doomed saying. that was my reaction after the debate on this week basically he was very disappointed that nobody on that panel believes what he believes so cruel and is just going to town here he

because i know you often say that bernanke is always wrong. i say look at his foot look at the facts and not. just look at the factual cities always or all of course where there you know as well you know as well as i do that the government isn't pledging that here's the unemployment figures are much higher than what the government tells us but they have these ways to manipulate them every month the use of birth and death adjustments that say people have dropped out of the city looking for work it's very easy to manipulate the numbers and then manipulate the numbers these numbers are not real yes we've got serious problems. in the midst of lanai he doesn't know what you're watching r t t.v. speaking of what you watch on t.v. i do have to ask this because i was catching up on your interviews with mainstream media outlets that you did when you were here in the states recently and a lot of them seem pretty surprised maybe incredulous over some of the responses that you give to them do you think that i don't want to put you on the spot to say bad t

when ben bernanke goes to the fomc, open market committee, they're the ones who with bernanke say, basicallyimplify it, we're going to put more money into the economy. we're going to keep thing where they are, take things out of the economy. there's been a battle in this committee brewing over what's the best path forward? >> there's definitely been a battle over thinking about, first of all, i think there's two issues. one is how much of our current downturn is still due to a shortfall in aggregate demand and therefore very easily impacted by monetary policy? then second of all, you know, we really have a hard time forecasting where the economy is going in the future. so when they're trying to think about, well, how much accommodation do we need? they need to say what do we think gdp will be next year or what do we think unemployment is going to be next year? the question is how much are we willing to risk overshooting on inflation in order to balance that risk with, you know, not overshooting on unemployment. i think people have different tolerance levels. how much inflation risk will you

i refuse to provide chairman bernanke with two more rubber stamps.his a breathtaking statement for two reasons. he's not saying anything about the qualifying indications but where the policy references might lie. one of them is a republican. i don't know a single serious economist who thinks putting a hold on them is a good idea. i bet you can't find one. literally every republican economist thinks stein would make a fantastic fed governor. i agree. he's accusing ben bernanke, a registered republican and imagine appointed to the fed by w himself of being some kind of wild eyed activist liberal. third, vitter is saying though not quite in these words he opposes any effort to grow the economy. he opposes any effort to bring down unemployment. he's saying in that quote and showing that he wants the economy to grinds to a halt. he wants it too die. there are two strategies basically the federal government can use to help. the first is for the government to step in and spend money to build roads and bridges. during the great recession president obama aske

the single most important appointment was chairman bernanke. he has been his adviser and then he became head of the fed. i think people have been unfairly critical of mr. bernanke. he has been reconfirmed by the senate. there have been predictions borne out. these are problems we have from the financial crisis. inflation is not at the point sort it has become a serious problem for people. the loans that they have made have actually made money for the federal government. they have not cause problems in terms of any conflict of interest. we did make some changes. we repealed the part of the law but said that the fed could give money whenever they thought it was important to do so. the best example of that was aig. we still have money. we have a place that was some other ways to go. i think it'll be a grave error to appealed the dual mandate. in the long run monetary policy means what people said. as we know, it does not mean that that is the only one. there are times when a balance is necessary. i can make a procedural point. i would be consent t

top of -- at the end of his last news conference, what is keeping ben bernanke upmost at night. what should be worrying him most? and what should he do about it? >> 2% trend and an economy in which wealth creation is impaired. i think you look down the end of the, you know, the street to congress there to say there's a heck of a lot of uncertainties. and if the major risk to economic progress is politicians, it's really hard for ab independent central bank to weigh in on that. >> anyone else want to weigh in on that? >> that's kind of the way i feel, too. doesn't seem to me the fed has a lot of effective tools still ready to go. if i were ben bernanke i think i'd be boworried that the rest the government wasn't doing what's needed. >> certainly worry about the rest of the world. particularly europe. >> on that, we're going to -- sorry, we're going to go over, but i want to come back to something. we talked about rethinking our hatred of inflation. >> right. >> how do we do that? >> well, i think we might talk about the housing market for one thing. i mean, we have all these hous

only it isn't what economists like paul krugman ben bernanke he and others fail to recognize in our view is that there's a reason the private sector isn't spending and it has nothing to do with an elaborate psychological feedback loop it's true that negative expectations about the future sure they reinforce a negative trend but at some point that trend does have to reverse a bottom will form and from the point of that bottom the economy will what will what else is going to love to do it will go the other way it will rebound so what then is preventing the bottom from forming enter the true four letter word d b t debt the reason the economy can't recover and the reason the private sector isn't spending is because it's in the process of leveraging from a debt binge that has gone on arguably for almost four decades in the u.s. and with a bit more variation in europe the problem isn't a lack of demand this is a symptom the disease is a stock of nominal debt so large that it has created a negative drag on the economy and attempting to carry this debt and not defaulting on it not forgiving it i

bear stearns like he's got a cushy relationship with the fed he's practically got a lip lock on ben bernanke he's sucking that free fed milk and he's becoming a big fat fed and we should keep that mind but at some point the fed is going to stop lactating free milk in a jamie's mall is going to have to grow up and work for a living you can get a job you fricken loser another important point about this insider saying it's like kicking a man when he's down is here's g.p. morgan a bank that exists that's their business models kicking people who are down whether it's bear stearns or whether it's jefferson county alabama where they kick the county to the ground and then continued kicking them and now sell them food stamps because they're all broke and desperate thanks to jamie diamond fraudulent you know interest rate swaps sold to the town you know who provides the capital for those food stamps again ben bernanke is lactating both of them give them all the money they need to issue food stamps to the people that they just disenfranchised with their attacks on their municipalities whether it's in t

ben bernanke -- >> who you compare let us say to chauncey gardener. >> he happened to make a speech in which it turned out to be almost verbatim the words of -- >> by the way, that's a reference to being there. if you haven't seen the movie, you need to see the movie. >> as long as the shocks aren't too big, that system works. but what we got was the mother of all shocks. an enormous housing bubble and buildup of consumer debt. and then when the bubble burst, you're left with a private sector that is just not ready to spend for a while, even as you have a zero interest rate, which is why we need the other stuff. normally you just take two aspirin when the economy is having a hard time, but now we need the prescription antibiotics, which is what i call for in the book. >> how do you spend money wisely? i am a small government conservative. certainly over the arc of time, i'm concerned about long-term debt, medicaid, medicare, defense, et cetera, et cetera. but i always said, i wasn't so concerned about the size of the stimulus package as i was the scatter shot sort of reductionism idea

and i'm worried about the bernanke put, but only worried from a trade. i just don't think it helps that much. qe 1, qe 2 didn't help. global liquid at the didn't help. we've got to wash out. >>> getting back to the facebook story now. initiated coverage on facebook today, setting a 12-month price target between 48 and 50 bucks. that's a few dollars higher than the company's expected ipo range. tom fort is senior research analyst for tells, joins us now. welcome to the show. >> thanks for having me on. >> you're believing all of this facebook hype. >> i am. i'm a believer, we have a price target range of 48 to $50. i think the company has done an excellent job until now, and we think they're going to figure out a way to monetize that massive audience of 901 million active users. >> so $100 billion, google at 165, yet facebook has 1/10 of google's revenues. is that justified? >> well, if you look at google versus facebook right now, i think what you're thinking about is who is going to take the market share over the next five-year period? so i think that f

they love ben bernanke. those global investors, he is an icon to him. >> 82% approval rating. >> yes, they said that the u.s. has better jobs than the ec u. people are bullish on both bernanke and america right now. >> president obama said that europe remains a difficult state because leaders did not take some of the decisive steps that america did in the recession. is he right? >> he might be. he does better than he has done among these people. i think the number was 53-34. these are rather wealthy investors. these are many people. they are not sentimentalist. they say that stimulus is good. they say this is better than the british approach. >> of course, the economy is likely to be front and center of the election, but how much growth is out of the president's hand at this stage? he cannot exactly make any big policy changes. >> there's almost nothing that he can do at this stage other than psychological. the guy is basically cast -- the die is basically cast. this is out of the president's hands. >> we ha

and one of the reason we have 0% interest rates, ben bernanke is saying this economic recovery under obamanomics is not working. >> and other reasons for high commodities, other reasons for high commodities prices that are macroeconomic that doesn't have-- >> we have 0% interest rates. >> government subsidies, you can talk about corn. >> the day of reckoning is coming, i don't care if you're liberal or conservative, the day of reckoning where inflation you say doesn't exist, is going to hit us hard, aen i don't know when, but snap. >> i agree. >> and when that happens. >> it always happens. thank you very much. and americans are seeing their unemployment benefits are running out and the forbes gang is saying that could actually be a good thing for the jobs market. they're going to explain. and that's coming up at the bottom of the hour. up next, a new pro obama ad painting mitt romney as a job die destroyer, and some are saying that president bm is doing the same thing withour taxpayer money. we report, you decide. every time a local business opens its doors or creates another laptop

even fed chairman ben bernanke said it this morning.edit worthy borrowers still have trouble getting a mortgage. no question. credit has swung a 180 since the housing boom. we wanted to break down the real numbers. we went to bankrate.com with six scenarios and asked them to give us the monthly mortgage payment for each one. we based it on a down payment and fico score using a $300,000 home and a 30-year fixed. the first thing we were told is if you have lower than a 660 credit score, you likely cannot get a loan outside of the fha. now, let's start with a good down payment that is 20% down or $60,000 cash to spend. at 750 fico score, your rate is going to be 3.625. that's $1,094 a month. now, a 660 fico score will up your rate and barely different from your monthly payment. now, drop your investment to 10% or $30,000. if you have great credit and your rate is just a bit higher at 3.75%, but you will have to pay mortgage insurance. and that's going to bump your monthly payment up to $1,425. with a lower credit score, your rate goes up t

but in specific with regard to the dual mandate, chairman bernanke has said many times that he does not perceive, in effect, he said he does not perceive an inherent conflict, if you will, in the dual mandate because, as i have understood him, serving the goal of price stability clearly works favorably toward having an economy that will work and that will enhance the employment prospects for all those who need work. yet, we see that his warning, which he has expressed very diplomatically regarding our fiscal policy having implications for monetary policy that it cannot overcome forever and ever by accommodation. we see that his warnings seem to be born out in the fact that several years of accommodative monetary policy have not resulted in the kind of enhancement in our economic statistics we'd like to see. i look forward to your testimony and thank you for all the work that you have done on this very crucial topic. i yield back, chairman. >> mr. chairman. >> i thank the lady. >> if i may, i'd like to ask unanimous content, and the gentleman from minnesota be allowed to sit with us. >>

in an exclusive interview, we'll talk rates and ben bernanke. the dow jones industrial average swooning from the highs, finishing up 19 points, fractional move to the upside here. at 4:00 on the street, 12,854 is where the dow industrial is settling. nasdaq came off of the worst levels but as you can see, no luck with a fractional decline there. s&p 500 higher, but just barely. up 3.3 points at 1357. continuing to look at europes a the many issue here along with economic data that has slowed in the united states. as we wrap up another trading session, here's what i'm watching. stocks shooting up sharply and then losing steam. the dow jones industrial average breaking even. strength today in utilities and telecom. weakness in technology, financial services kept the lid on gains. s&p posted the biggest gain since january. hit the highest level since the beginning of the month, in fact. technology due to cisco's disappointing guidance. s&p technology down for a sixth con section t consecutive day. with us is ben, private wealth management and berth