today, we are going to hear from ben bernanke. >> i am gary kaminsky. we are bringing you the best moments from the interviews through the gentleman who let us through the 2008 financial crisis. >> this show has never been about solely investments. we have talked about anything from times square in new york city, the new wall street week. >> humble southern beginnings and a british private school. larry summers and ben bernanke came from different backgrounds, but both love the baseball, harvard, and the white house. >> what was your childhood like? works a small southern town. economically challenged. agriculture and textiles. our textile -- town, my grandmother moved in 1941 and started a drugstore. they were sort of like the practitioners for the town. people would ask them about i worked in the drugstore. it was a good experience in many ways. a chance to see how people live in a small town and how hard it is to make a leaving -- living. >> you talked about the struggles. how did that set you up for later in life? >> my father was the town pharmacis

again, bernanke refused to give a direct answer.e 2011 dodd-frank law, congress ordered a limited one-time g.a.o. audit of fed actions. during the financial crisis, that audit uncovered that the fed lent out over $16 trillion to domestic and foreign banks during the financial crisis. mr. president, could i ask unanimous consent for an extra five minutes? the presiding officer: is there objection? the senator from ohio. mr. brown: how much time -- does senator paul has as much time as we have? mr. paul: i would be happy to ask unanimous consent for equal time. the presiding officer: senator paul's time has expired. mr. brown: i only need five minutes, so i'm willing to cede whatever he needs so we have enough time. i lift my objection. rand rand the unanimous consent would be to have five extra minutes and to give you as much time us a need to conclude. mr. paul: the unanimous consent would be to have five extra minutes and to give you as much time as you need to conclude. the presiding officer: without objection. mr. paul: both demo

bernanke and now yellen. they meet often with the treasury secretary in the president coordinating federal reserve policy with the government which might be appropriate for a crisis but i think at least until now and at some point janet yellen is going to have to tell jack lew the treasury secretary that she is running the fed or the fed's independence will be compromised. >> do you believe the historic period of interest rates is leading to asset inflation and if so could that have negative repercussions? >> it did have negative repercussions. it's just hard to tell. it's hard to tell how distorted they are it has there was a lot of capital out there so if he said let's have rates at a more national level what would that ye? i doubt it would be up to 6%. there's a lot of capital and their weren't a lot of people who wanted to borrow or invest. it's possible but it's hard to know these things. it's to me obvious bubbles as with the real estate crisis. not that i said it was obvious then but these things are e

steve bernanke joins me for this. i'll start with you, steve. it's not clearcut that he's going to join, he's in right now. there are conditions. >> i think he's looking for a very specific scenario that's still on the whole much less likely to happen than to happen. historically when you look at third party candidates coming to the surface and really making an impact, it's generally when both parties' nominees are found to be unacceptable for one reason or another. when ross perot in 1992 spouted up, he was personally not popular, so there was room in the middle. what bloomberg seems to be looking at here is the potential that democrats nominate bernie sanders and on the republican side you get a donald trump or ted cruz, someone who represents the middle, and there would be room for someone theoretically in the middle. >> here's what donald trump had to say about it yesterday. >> i would love to have michael get in the race. he's been a friend of mine over the years. perhaps we're not friends anymore. he wanted to do this for a long time and n

kyle: bernanke sitting there with events with you and i together, and he said what we try to do is flood the market with excess congress' fiscal policy. ability and desire to just keep spending. >> wall street week is sponsored in part by hightower, an unobstructed view. >> imagine delivering straight -- straight forward financial advice is the right thing to do. rising above the discord of an industry compromised by conflict of interest. high power is the new blueprint for financial advice. a legal pledged to put our clients interests first, not because it is the latest fad but to do. >> are used to jed giving up and going to work. >> i was tired of being a >> i looked around for what i believe in. >> is held me create a business >> they really taught me how to think big. i am here because of score. >> get your free business mentor at score.org. >> raising rates after nine years. mistake, too late, too early, what? >> once you hit lower bound in an effort to go below so you do not have to restructure anything, i think that will keep you there almost forever. our rate cycle whatever it m

again, bernanke refused to give a direct answer. in the 2011 dodd-frank law, congresswoman pashtun congress limited one time jail audit the fed actions. during the financial crisis that audit uncovered at the fed lent out over $16 trillion to domestic and for banks to the financial crisis. thank you got i ask unanimous consent for an extra five minutes? >> is there objection? [inaudible] >> the senator from ohio. >> does senator paul have as much time as we have? >> i would be happy to ask for the same time. >> i only need five minutes ally willing to cede whatever remains so you will have enough time but i would like to reserve five minutes for my objection. >> unanimous consent would become five extra minutes indicatand togive as much time o conclude. >> without objection. the senator from kentucky. >> both republicans and democrats agree that it is absurd we do not know where hundreds of billions of dollars of our money is going. in fact, lesser may audit the fed build receive the support of nearly every republican in the house a

this of course is of course was for the ben bernanke and the federal reserve did in 2008. but there was no federal reserve in 1907. i thought we might join the action now when it struck an institution called the knickerbocker trice in new york. morgan on film and had to go to admit or report. the knickerbocker was or knickerbocker was housed on 34th street and fifth avenue up holes tampered white to her -- that -- who piled on the counter is besides the colors for the books, is to the consternation of the people in outline, many of the man i knew i shall never forget. friday afternoon on tuesday, october 22nd committee paid $8 million suspended operations. reported he could not in such timed out or solvency. jpmorgan decided not to intervene in leading the knickerbocker, morgan knew he would be unleashing frantic runs on every other trust in the city. new york stressed over a matter of several weeks lost a remarkable in devastating 48% of their deposits. even worse at the end of october, the local clearinghouse association of new york banks was forced to take the drastic s

ben bernanke says the greenback may have the. the former fed chairman leaves much of the appreciation of the dollar may have already happened and we may not see much more. the currency has rallied against pastts peers during the two years on speculation the fed would boost borrowing costs in contrast to other major central banks that were easing policy. chief executive officer's have turned pessimistic on global according to a, new survey. a poll of 1400 ceos from 83 countries found just 27% expect the economic outlook two improve this year, a fall from 37% last year. 23% said it will worsen. >> i think the ceos are really concerned. thisa less positive result year than just a year ago. the trend line is not good. concerns about the renewable economy and the volatility that exists. secondly, concerns about the geopolitical issues out there which has all the potential to continue to be disruptive and unstable. and the together outlook for 2016 is not as encouraging as most of us would have expected at this point in time. trump'sna

again, bernanke refused to give a direct answer. in the 2011 dodd-frank law, congress ordered a limited one-time g.a.o. audit of fed actions. during the financial crisis, that audit uncovered that the fed lent out over $16 trillion to domestic and foreign banks during the financial crisis. mr. president, could i ask unanimous consent for an extra five minutes? the presiding officer: is there objection? the senator from ohio. mr. brown: how much time -- does senator paul has as much time as we have? mr. paul: i would be happy to ask unanimous consent for equal time. the presiding officer: senator paul's time has expired. mr. brown: i only need five minutes, so i'm willing to cede whatever he needs so we have enough time. i lift my objection. rand rand the unanimous consent would be to have five extra minutes and to give you as much time us a need to conclude. mr. paul: the unanimous consent would be to have five extra minutes and to give you as much time as you need to conclude. the presiding officer: without objection. mr. paul: bot

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it looks like out weber is diverging from ben bernanke . bernanke talking about the dollar strength may be petering out. mr. axel weber thinks that we could be happening euro parity yet again. here's my advice. we always have practical advice -- low oil prices, low dollar markets, time for you to buy a ford pickup truck and drive around the countryside. it is clearly the smart play. that is what everyone wishes they were talking about. mark: i will take that advice home. i will tell you what my other half things. you also quizzed him on the ecb. of course, he has a previous form when it comes to the ecb. it meets tomorrow. he is not confident the ecb will meet its goal this year or next year. he is also not thinking the ecb will have to do too much more on the stimulus front coming is he? more, but he much thinks they will do a little bit on lowering that negative deposit rate and bring it down further into negative territory . it must be said that axel weber 's crystal ball is pretty good. people make outrageous predictions about the price

, the list is long. >> ad's an attack on romney, jeb bush, bernanke and hillary? >> no. our ad is an attack on corrupt campaign finance system. goldman sachs engage in reckless and illegal behavior, agree to $5 billion in fines and continue to have great influence over people in washington, d.c. that's wrong. that's bad. >> one more thing on caucus strategy. >> sure. >> we've talked about this before, are you concerned you'll have more people show up but they won't be in the right place? >> we have been very aggressive in trying to reach out to people across the state. bernie's on a tour around eastern eye i'm he was in western iowa last week. we've had a very active campaign, reached out to high school students across the state, community college students across the states. there are more districts with students? there are a lot of small colleges and towns in iowa, as you well know. >> jeff weaver, i'll leave it there. coming up, we'll talk to an iowa democratic power broker, clinton supporter, former eye caucus winner himself. you know you figured it out. it's t

ben bernanke said the greenback may have peaked. we may not see much more.he currency has rallied against all 16 of its major peers over the past two years. chief executive officers have turned more pessimistic on global economic growth. that is according to a new survey. a poll of more than 1400 ceos from 83 nations found just 27% expected economic upper to improve this year. said it could have been worse. the ceos are really concerned in 2016. it is a less positive result this year than just a year ago. the tread line is not good. concerned about the global economy and the volatilities that exist. secondly, concerned about the geopolitical issues. it is all the potential to continue to be disruptive and unstable. you put the 2 together and the outlook for 2016 not as encouraging than most of us were hoping for at this point in time. caroline: we will get plenty -- davos.f demo's jonathan: it is day one here in switzerland. obstacles is here and had an earlier morning that i did. you have already kicked things off. economy, does the man of a decent read on

lower with bernanke. with yellen substantially lower in volatility. matt: from its peak in 2011 gold is still a far cry from where it wound up on a relative value basis when it last tumbled this much, which was 1980 -- betty: you noted then it was down -- matt: over 60%. betty: now it's down about 40%. why do you think, matt, people are still bullish on gold? matt: well, look, everybody's got a lot of fear coming into 2016. january was horrendous. for anyone in the stock market. pretty much anywhere. there's all this anxiety about china slowing down. there's all this anxiety about growth. so it's sort of a perfect storm for people to, in their fear, to embrace something like gold. but if you have a historical perspective and a long view, and you ask yourself, ok, what's changed fundamentally from where we were this time last year or previous years, the answer is not much. betty: not much has changed. matt: here's something else. that the u.s. economy still the largest economy in the world, is relatively strong in the sense that there's no sign that th

bernanke and down yelling, they meet often with the treasury secretary with the president. they are coordinating federal reserve policy with the government, which may be appropriate for a crisis. but i think the least until now, to avoid janet yellen is going to have to tell jack lew, the secretary treasury that she is running the fed even as he runs the treasury, or the fed independence will be compromised. thank you. >> do you believe that the extended period without, historic period of zero interest rates is leading to asset inflation instead of conventional inflation? and if so, could that have negative repercussions speak with if it is it will have negative repercussions. it's just hard to tell. it's hard even to tell how distorted they are because there's a lot of capital out there. so if you said let's have rates at a more natural level, what would that be? i doubt i would be up to 6%. there's a lot of capital and you are not a lot of people who want to go out and build and borrow and invest where they are not in a very swift economy. it's possible but it's hard to k

that's why what chairman bernanke did and what chairwoman yellen have done is so important. but if audit the fed, the audit the fed sponsors have their way, we'll see some kind of taylor rule. in november, house republicans passed a federal reserve reform bill that imposes the taylor rule. the enforcement mechanism, g.a.o. reviews audits and reports. is there any doubt this is where the audit the fed effort is headed next? i urge my colleagues to vote "no" this afternoon. this vote will take place in a couple of hours. it's in the interest of all of us to understand the role and the operations and the activities of the federal reserve. we can do that better in this body. this is not the way to do it. we can do it better. but it's also in the interest of the american economy for congress to keep it's political hands, if you will, out of monetary policy decision making. if republicans were really serious about making the fed work better, they would confirm the two pending nominees to the board of governors. a republican community bank named al landon has been waiting for a nom

. >> ben bernanke explicitly cited it as one of the reasons that quantitative easing would work.t of their is story of upside risk to the u.s. economy. we have been puzzled. last six months, it looked like the savings rate was moving down, but it has been revised up, drifting upwards. >> we have not seen much wage gains. effect has come because asset values have because wages have increased. >> you have consumer spending growing more slowly than income gains. you would have thought the wealth gains would be making people feel more comfortable and lowering that savings rate. that is part of the key reason. it of ptsd from the financial crisis where you had a sharp move down in asset prices. maybe people aren't believing it. someonee flipside, wants to buy a house and they are seeing house prices surge, could there be a reverse to asset prices? people are on both sides of the market as you point out. at the end up with the day, there has traditionally been a positive wealth effect from housing prices. it is a no-brainer that increases in equity prices are like manna from heaven. >>

we have gone from a government in china that communicated well, and ben bernanke communicated well, sove janet yellen. gillian: there are three areas, one, you need policy transparency. one day they say they are trying to intervene in the currency market, the next day they vanish. that is not help confidence. they need political transparency. today we had another billionaire banish -- vanish. and data transparency. a $1.5 billion hedge fund, a successful one in london announced this week it is shutting down because the markets in china are so un-transparent it is hard to invest in a rational way. it was an emerging market fund. that is knocking on investor confidence. henry: investors moving into the emerging market are going to need to be able to move away from a hedge fund model. they will have to lock up their money for a longer amount of time. if you think about it, the volatility that we are seeing is going to be higher, going forward. by definition. gillian: i agree. i understand, right now, anyone hoping to make short-term gains on a market like china, might as well take their m

bernanke he said he used the tools in his toolkit. >> absolutely.ld he argue that he saved us all? i agree that the fed policy was missed this but he would say i saved us all. stephanie: they did little to nothing for the overall economy. >> i don't think that's right. the overall economy came back because of the fed strategy of driving up equity prices, increasing household wealth. in 2013, net worth of households rose $10 trillion in 10 months with stock prices up to 2% and house prices of 40%. butfed was very successful that laid the foundation for the risk we are facing now with lots of reaching for yield by investors and lenders. >> when they say that's the this pad to pay? once, it screwed up got us in a situation where we hope we come out of it famously but you cannot bet on that. stephanie: if i am janet yellin and i look at the market yesterday and there is a 15% knocked hundred billion dollars worth of market cap off the face of the earth, what does that mean to janet yellin? some would say we are back to a more normal market it is this a

ben bernanke learned it. it, and when he realized he underestimated the magnitude of the problem, he used his engaged in a he two-pronged maneuver, which is of theu lose control car, you have to turn the wheel in the direction in which the skit is taking you. when he regain control, then you correct direction. the first step was to flood the markets with money. and a down turn maneuver the fed being the pioneer was reach where ito wanted to correct with the second curve. it reached at last year and started talking about it, but they did not have -- did not act. by the time they acted, the window of opportunity closed, so they acted one year too late. the u.s. economy is already slowing down and that is because of deflation. apparent whenme the benefit you had of lower prices which gave you effectively a tax cut, but instead of spending the extra to improve their own finances. we could find the same goods cheaper year. thecine: so they fed at moment is telling us for rate hikes is year and the markets believe

ex central bankers cannot disagree because he disagreed with ben bernanke. axel weber thinks that euro parity is going to be challenged again. what it means for american manufacturing and also european exporters is a crucial question. francine: when you look back at the last 5-10 years in davos, they rank the risks that people see at for the first time time economic growth is actually not in the top five. geopolitics is much more at the forefront. john: very interesting, populism. the people here are relatively well off. if you look at the forces disrupting politics in europe and the u.s., it is this anger at rising and equality. that is one of the great tectonic shifts happening in western democracies. the problem for people here is no one knows how far that is going to go. this year's u.s. election will tell us a lot about that. hans: five of the last years, inequality -- this year it was not in the top five. there is a disconnect where in the u.s. presidential campaign, inequality is driving the race on the democratic side. it is not on the agenda in davo

what we have seen under the bernanke and yellen era is being nonchalant about having 2 or even three onuspect as the year goes there are a couple of talks on the committee who made to send them up at night don't think it but be -- who may dissent, i don't think that will be the primary issue. scarlet: the bank of japan adopting a negative interest rate strategy -- ben bernanke has in the past them i believe in december, said that negative rates are something that the fed should and probably will consider if the situation arises . what kind of situation would require the fed to seriously consider negative rates? michael: first of all, situation where they cut rates and push out communications. when the fed last considers the negative rates back in 2012 and 2013, they felt there were more costs than benefits associated. i suspect this time around they view the cost is lower because we had the examples of the eurozone, doj, and others, negative rates have manageable costs. and there have been some technical changes that probably made it more feasible. you heard a few weeks ago, even vic

and 11 is a former advisor to ben bernanke and janet yellen.you for joining us on the phone today. to see the great and good out anin davos. the central-bank policy on the top of their minds? oil glut a little less typing from the u.s.? andrew: it's great to speak with you today. --hink there was something some very important data for the united states economy that was released last friday that adds to the concerns that the u.s. economy is not as solid and resilient as fed officials had bought a month ago. at that time, they saw the risks of the u.s. economy as roughly balanced where the last few that of data has confirmed there is some very significant grounds for concern. just to give you one example, the u.s. retail sales data for december released last friday. the core retail sales number was negative, which means that probably the broadest measure of personal consumption expenditures will be released in a few weeks could be dead flat. the idea that american consumers are the source of strength for and a source of divergence in some way fro

renamed bernanke submarine ben instead of helicopter ben because he wasn't easing fast enough, and that was clear in the financials. what drives u.s. economic activity is bank lending. can the people at this table and the people watch this show get along? if you can get a loan from your bank, then you don't want to be bearish. i had a friend of mine -- >> still not that easy to get a loan. >> that's the good point. >> we're in a recession. when you typically want to buy those stocks? when they're booming? >> do we say anything ground breaking when we say this will end badly. b, to paraphrase the movie "cocktail" everything that ends badly, otherwise it wouldn't end. citi says buy and large they're way into the aging stage, and don't go head over heels into u.s. stocks anymore. the better values are in other qe markets. do you disagree with it? >> i think maybe it's a little bit late because i agree with tony. i think a lot of the stock market is already in a bear market. the begger is rates are probably not going up. there's probably not four rate hikes this year, which is contenseus, w

ben bernanke before, now janet yellen, have said several times to congress that what they really need is some kind of fiscal action. that was the stick, this was the carrot. gradual, gradual, gradual david. i know that you live in brooklyn, you have a little bit more time to get the brownstone. brendan, stay with us. julie hyman has the latest and i want to get some reaction to that. julie: it seems to be that they are emphasizing what brendan talked about and concerns of dissent, that some fed officials were concerned, sort of they were on the fence about this rate increase and some of the concerns they talked about in terms of inflation not meeting the fed target as well as commodity prices in global growth. something that market participants have been concerned about the new as they have come back here in the new year. that's one of the things they have been filling up. working towards the lows of the session, were not quite there but in addition to that we are looking at -- if you look at the s&p 500 over the course of the day you can see what's happened here towards the lows of t

you hear this from janet yellen and ben bernanke. here's what i think i'm going to do. and by the way, if you would enact some structural reform and fiscal reform, that would really help. in the meantime, i'm alone doing my job. anytime you want indexed to reform, i'm waiting here in frankfurt. thed: i was struck by station he drooped between the economy at home, and abroad. i imagine it's a distinction you will see drawn tomorrow as well. brendan: my favorite quote was lingering concern. the fed have lingering concerns about was happening abroad. the context is now completely different. it's been a month. what we saw in the fall was turbulence in the shanghai composite, stock movements, equity movement. now we are seeing capital outflows, things that are of much greater concern, change in the gdp numbers. if they have lingering concerns then, i would say they might have upgraded to urgent. and i would use the word urgent in the statement. they are absolutely looking abroad, just like europe is. and adjusting note of levity in that speech with him pointing out that desp

we have gone from a government in china that communicated well, and ben bernanke communicated well, soe janet yellen. people question whether she fully understands proper medication with the market. i think in the chinese leadership we have strong officials who know how to consolidate power. they know where they want to go. in terms of capital market express, they are learning. gillian: there are three areas, one, you need policy transparency. one day they say they are trying to intervene in the currency market, the next day they vanish. that is not help confidence. they need political transparency. today we had another billionaire banish -- banish. vanish. and data transparency. a $1.5 billion hedge fund, a successful one in london announced this week it is shutting down because the markets in china are so un-transparent it is hard to invest in a rational way. it was an emerging market fund. that is knocking on investor confidence. henry: investors moving into the emerging market are going to need to be able to move away from a hedge fund model. they will have to lock up their money f

this thesis says that we're on autopilot mode like the pre-bernanke fed. we'll get a shortfall in earnings. third fear we're in the high peaks region of the economic cycle. everywhere i go i hear that all sorts of cycles -- we have the peak in cell phones which caused apple to drop like a stone and taking the semiconductor stocks down with it. decline in apple component stories making the rounds that were peaking in autos. one of the chief engines of u.s. growth. i think the numbers we saw this morning were good. well, good, they never less buttressed the case of the bears which would make lower interest rate incentives harder to come by. given they sold 17 million vehicles, it is reasonable to think that things can't get better. we have peak housing stories floating around. way too high prices because of a scarcity of inventory. peak cell phones, peak autos, peaks housing that's apox on peak in three components. finally, the oil glut. yeah. remember we're in crazy town. crazy town where we care more about an energy decline, down again today which is negat

the deficit inflation hawks and the fiscal conservatives who were hammering on ben bernanke and yellen, the fed followed their advice. >> we know the markets don't like uncertainty. is this about a presidential campaign where it's not clear who's going to win or who might be the nominee for each party? >> there's some frightening prospects out there certainly. that would leave i think any analyst somewhat nervous about what's going to happen with the future of certainly u.s. policy going to be. but there's also reason for anxiety stemming on what's going on in china. collapse of the stock market last summer for example had a dramatic outsized impact not because the economy or more properly the stock market is such a big factor. the volume of trade is trivial in global be -- relative to global conditions. but it's the way the chinese fumbled the handling of that that leads people to concern that the chinese just simply don't have the no-how to manage the kind of transitions they have to make in their economy. that's causing a lot of problems. >> yes it is. jock, thank you for joining us

. >> bush appointed bernanke. >> and the second thing that's really interesting is you could suggest're on a cycle and the obama administration hasn't done much to change it. he got a lot of heat for not fixing the economy quick enough. compare that to david cameron's government in the u.k. that came fouer two years later. the global already started to reach a bottom and he gets much more credit for turn things around than obama here because he had the first two or three years before it turned around. >> this also goes after him saying his tenure has been marked by the rise of vladimir putin, iran, china and other places in the middle east. obviously the nation now is focused on terrorism and concerned about that and for that they don't give him high marks. they say the ultimate moment will be whether he's able to mobilize the party to vote for mrs. clinton. >> we'll have twiet and see. we're approaching the top of the hour and that means joey, becky and andrew are getting ready for squawk box. becky join us. we have been asking people on twitter whether obama's tenure has been good

liz: ben bernanke talked about that. trish: that would be scary if we did that.nother scary thing is q e 4. print more money and hope for the best. liz macdonald, we learned last time around no matter what the fed does it is affecting only on the margin. is not able to really generate -- liz: you, file error hedge fund -- we are in it-fuel cycle the last decades and that is what he has been talking about since the financial collapse and we are still working our way out of it. he is the guy to watch. he is something i have been reading about, how sticky it is to get out of the balance sheet recession. >> you have to pay attention to him given his track record or how successful has been a how much money runs the your point of the fed has proven that it is feckless but what is the answer? how do we get to launch? the answer is lower taxes and more regulation? if republicans win the fall both of those happen and you can see the dynamism of the american economy explode. it won't happen before them. liz: with 4% economic growth not out of the realm of possibility, sinc

harris: you hear discount for ben bernanke, new hampshire is right next door to home state of vermontwe can lean in that direction, but superdelegates andrea is talking about, you take all the american voices out of this all the way, look forward to the convention, not that they were represented there. >> we saw the clinton machine get run over, steam rolled over by obama campaign. we knee for a fact she is not unbeatable. she is beatable. still very surprised that they chose her. i agree with you. i think she is horrible candidate. every good winning candidate has combination of three things. likability and authenticity and charisma. if you look at all the other candidates doing well, they have that in some degree. i feel like she has none of that i never understood the rationale. harris: where i think president obama was going when we said we needed new car smell. sandra: her supporters say she has got the experience, as far as number one concern of the voter, that is foreign policy right now. that she has got the experience. her supporters will stick by that. but, hey, if things ar

and this is a comeuppance of ben bernanke and folly what he did with easy money policy. trish: okay. i think that you make a pretty interesting and valid point here, gary, a point that i myself found myself making over the last couple years, which you can not be in a low interest rate environment for years and years and years and not run the risk that investors start dabbling in areas that they wouldn't normally dabble in. i made the comparison that, you got ma and pa out there buying things like puerto rico because it yielded so much money and then puerto rico suddenly goes bust and they're left with nothing. i mean, gary, what is the fed done to people's willingness to take on risk? >> trish, you're so right, what the fed has done they have screwed the safer. they have taken all of the riskless investing out of play what did the savers do they had to reach. they had to reach because you're getting zero on your money. they ended up reaching for bond funds paying 6 or 7% but they're leveraged. and mlps, master limited partnerships paying ridiculous amounts. this is comeu

i think what was done by starting with the 2008 paulson, bernanke, they actually did history did servey they did the right thing. some work in terms of keeping us from a depression. i think that is possible. i think now we are getting to a point where he can end up with the banks doing things that would be criticized for. tom: within the markets, and michael, you have always been good about seizing opportunity, i do not sense the catharsis yet of 638, 632. we are nowhere near the kind of emotion work out -- where a guy a cashour 42% in position. michael: you are right. your instinct is met by the reality of the marketplace. the last couple of days, there has been a buyer's strike in the market. in august -- tom: i like the asymmetric's. michael: yes, we have had in absence of buyers, frenzied selling in august. we talked about mythical things that turned out not to be right. david: i wonder if the central made, ist that jon there a chance that central banks will bail us out? and fix the balance sheets? michael: oh, yes. tom: their job is to be there. it is a safety net. once in aestion

certainly bernanke believed in it, and i think he convinced many of his associates. >> art, put this in context for us, how big a deal is it? of course, we see the dow down more than 400 points again at these levels on a day like this. we get excited. >> the markets have gotten crazy here, and they are worried that if it continues to go down -- and it's doing so even as we speak -- that it might be headed towards something like 25, and that might explode the entire high yield bond area, and you could see two-thirds of the operators there go bankrupt, and they're worried about the contablingconta contagion that we've seen in the past. will it go to high yield like subprime did? they're still living in the last crisis. >> then there's the vix that's been waking up from its long winter slumber. it doesn't always react to a selloff or to a slide in oil prices. spiking above 30 today. obviously, people are expecting more volatility, and as our eric chemney points out, oil is now lower than the vix. last time that happened was march 2009. the market bottomed. >> that shows you the amount o

recognition that the "benefit costs and risk equation" and the words benefit cost and risk come from bernanke, so the economic benefits of qe are being questioned, and people are starting to see the costs and risks, the collateral damage of getting too -- getting financial system that is too distorted. so i don't think qe is the next response. >> can the fed hike interest rates? can they go in the ballpark, so to speak, that stan fisher told steve liesman was potentially four rate hikes this year in this environment? >> no, you have heard me say at most we're going to get two. we certainly are not going to get a rate hike this coming meeting. we may get a couple in the course of the year, but i don't see how they could do four. >> yeah. watching the 10-year as we have this conversation. the yield dropping to 1.93. thanks for coming to the phone. i appreciate it very much. >> thank you, scott. >> mohamed el-erian. do you have a comment? this notion of the fed, what should the fed do? >> a bully pulpit. get up and say something that they still have plenty of arrow this is their quiver to solve

. >> ben bernanke says it will do that. david: scott? first scott, then danielle. >> we saw that in emerging markets too, david. turkey did something similar some years ago with reserve requirements and discount rate. it would be absolutely awful. they have already thrown the ball down the field. i hope they don't throw it anymore. look what happened. if the fed made good decision, guys, why are interest rates down since the fed raised them and why is the market down? david: danielle, to put a fine point on it, savers have been killed last couple years with these zero interest rates. if we have negative interest rates, if people have to pay banks to deposit their savings in those banks, what is that going to do to our whole systems of savings and loans. >> actually it would decimate it to be sure but the problem is, the fed in throwing the ba down the field as scott just said actually, it is actually impossible for the fed to go negative on interest rates because of how they raised interest rates. they have used something called reverse

this is all in my opinion on bernanke's back. he is telling everybody he is absolute hero. god bless him. david: jonathan, janet yellen is in charge now. janet yellen spoken very kindly about negative interest rates while savers in america are getting killed. zero interest, you don't get any money saving interest. for negative interest you bet penalized by saving money. >> i can't imagine contributing to global uncertainty taking about face where the fed said we think employment numbers are getting better, even though they're not, we'll start raising interest rates and now make a u-turn talking about negative rates. i think that would cause more panic than we're seeing now. david: got to ask quickly, jonathan and jeff, are you buying anything. >> i'm not. david: jeff is not. jonathan? >> you know only precious metal, only asset i'm looking is rodium. david: rodium. i first thought you said rodeos. maybe that is better bet than anything. gentlemen, appreciate it. melissa. melissa: new details on three americans kidnapped in iraq. colonel oliver north gives is his take how am

. >> well, bernanke writes a book called "courage to act," starting in the depth of the crisis. about the greenspan and bernanke getting us in the crisis in the first place. >> keeping money easy. that's courageous. >> stepped up in the crisis doing the right thing, but he created the crisis. >> oh, i like you. >> i like you too, yeah. >> all right. looking at you, looking at me. thank you. >> thank you. >>> when we come back this morning, yahoo! closing shop on the online video portal after it flops with users. plus, amazon announced sky high purchases from cyber monday. both stocks moving this morning. caught up on what you need to watch throughout the day when "squawk box" comes right back. >>> stocks so watch, eli lily in the red, cutting the 2015 guidance and sees 2016 earnings below street consensus as well. indicated market down 2%. yahoo! is shutting down its online video portal screen after it failed to gain traction with users. andrew, you've been a lot written in the past week. >> yeah. >> i saw her dressed up as, like -- >> at a gatsby christmas party. >> money being

we've gone from having a government in china that communicated very well, and ben bernanke that communicated, i would say very well on a difficult period to right now we have janet yellin where some people question whether she fully understands proper communication with the market. and i think in the chinese leadership we have very strong officials who know how to consolidate power and they know where they want to go. but in erm its of their capital markets experience, they're still learning. >> i mean i would put it more simply. there are three areas, one is you need to have policy transparency. one day they say they're trying to-- the currency markets. next day they vanished. that disunt help investor kf disens. they need political transparency. we had today another billionaire suddenly vanish. there say real clampdown that is making business people quite nervous. and data transparency. i mean the statistics are terrible. nevsky capital, a $1.5 billion hedge fund, a very successful hedge fund based in london announced this week they have pretty much shutting down its fund because the marke