s very well connected in washington but a gun to the federal reserve's head where there's ben bernanke here janet yellen or alan greenspan and saying print fifteen trillion dollars or you know the country is going to get whacked in two shots to the back to you know. we get it we get the image but you know the fact is they will perhaps in the next headline find some hope for their own stock price defense contractors unfazed by democratic gains as republican deficit hawks lose influence the companies that make jets bombs an aircraft carriers for the u.s. military are telling investors that the defense business will still be booming under a democrat controlled house of representatives even as a split congress threatens a return to partisan gridlock the defense contractors namely raytheon chief executive officer this past week was telling shareholders that it's great news that the democrats are in congress because that the money spigot will be open for them they'll be getting a lot of money of course. you know in most parts of the world it's not considered progressive or liberal sort of ec

the future did hold it also ahead treasury secretary hank paulson and federal reserve chair ben bernanke really critically concerned with lehmann did what was next with contagion from lehmann and perhaps others who could fall destroy the economy and still nobody knew the financial risk of those dark o.t.c. markets with those bundles of bad mortgages in the credit default swaps fearing the worst total economic destruction paulson and bernanke headed to capitol hill with a three page document seeking more than seven hundred billion dollars to buy what they called troubled assets held by large and small banks and insurance giant ai g. which should ensure the o.t.c. dark market products for many of the banks and it did become law for more we're joined by legal journalist molly barrows at the ring of fire network molly some of our viewers may have only a really a vegf recall of tarp or know the acronym the history is pretty muddled take us back to a tarp one hundred one if you would. sure have our will as you said secretary paulson and fed chair ben bernanke frame this as dire and urgent it's

really, it's policy making, taking a line from ben bernanke, really, when you look at history, it will tell you the story. march of 2014, yellen made the same mistake by saying the fed's going to probably raise rates in six months or that type of thing, the markets dropped 1% in ten minutes. how about bernanke in 2006, at a very private ceremony, told a news anchor or journalist if the markets think we're done raising rates, they're wrong. you know, unfortunately, the policy is being run by a [ inaudible ] as it were. the word greenspan used that the fed hated, they dropped that in 2004, i believe, and after that, we saw 17 rate hikes. i think right now, what's happening is the fed is being very deliberate, always has, and he just made a rookie mistake and going back to the thesaurus and saying words that are true and will resonate with the investor. liz: we have an 82% chance that we will see a fed hike in december. it would be very bad, i think, if he shocked the market by saying we're not going to do it in december. what do you expect for january and shouldn't we at this point, if w

responded in a way that the federal reserve had never responded before and then he passed it off to bernanke he who passed it off to young men who passed it off to powell and they're all doing the same thing which is the only thing they can do and i wrote some things recently the basic. i am in awe of what they were able to accomplish however in accomplishing those things they have left this in a much more dangerous situation because the banks open source second so we referring to the greenspan put yes in other words when any time markets were down a little bit he would ease is the credit is the money exactly of the party going and his response to that was well you know our job is not to try to predict which way this economy is going or the markets are going or to have any kind of proactive stance whatsoever we're just here to clean up after the mess exact which is in contravention of what let's say of paul volcker who took his role as central bank seriously and said you know what we're going to raise rates because there's this inflation problem and that would. be the role of a central bank

ok, but we've also heard the former chair of the federal reserve, ben bernanke, talking about what'suge stimulus, $1.5 trillion in tax cuts, $3.5 trillion in easing. and he makes the point the stimulus is going to affect the economy in a big way this year, and in 2020, so we're talking about the year after next. wile e coyote — that is the roadrunner cartoon that many people know, is going to go off the cliff. and you can imagine that picture of the roadrunner heading off the cliff, and it's not a pretty picture. he's talking about the us economy. he is. is he wrong? so he's right in saying that the timing could have been a lot better. this fiscal stimulus should have come a lot earlier. and in fact, it was proposed over and over again, but if you recall, congress was taking almost no action, because it was so split. the tea party had emerged... sure, but what damage will it do now? so his point is that the reason why you get this coyote moment is because this is a sugar high, right? that the fiscal expansion makes everybody all excited, et cetera, like feeding your baby a lot of sug

difference between new york and here that maybe tolerates some of this behavior and do you think ben bernankeis a big part or not necessarily? >> i've been to dc before but not enough to know enough about the cultural differences. i can tell you there is a big difference in terms of people who work in the private sector and what i encountered working at the regulatory sector more customers means more money which means everybody in the bank is better off. people from the industry colleagues i spoke to were shocked to see how it was and how unfair it was for all the other banks and the systemic risk without having to comply with the american rule of law and what kind of systemic risk does that create. so i can tell you about the difference in those cultures but i can't tell you about dc. so he was the head of the federal reserve and also -- >> i confess i have not read your book. >> i haven't either. [laughter] >> can you be a little bit more concrete end of systemic corruption can you give concrete examples because i think at least i speak for myself i don't knoknow material enough to image or

spoken out about it he's never said anything is never said down greenspan or janet yellen or ben bernanke or powell has never said look do your job raise rates right now to five percent do it now of course know why because. there are complicit stupid or both ok well he can and he did leave the federal reserve in one thousand nine hundred seven so it's been quite a few decades since he's been there but we're going to talk about another story now and that is over fish increasingly likely as countries began using military force to protect critical commodity so there are similarities between the world's reliance on oil and a comparable dependence on fish oil is a very conflict ridden sector johan burgan a senior director of public policy at the washington d.c. based technology from vulcan he says i believe there are some numbers that say twenty five to fifty percent of all conflicts in one way or another in different by lack of or access to oil they're saying basically the concentration of fish especially tuna is in the pacific it's something like sixty percent of all big fish are in the paci

has a memory of what it could possibly look like because they do believe in the greenspan put the bernanke he put the janet yellen put and now the power they do believe that the fed can come to the rescue because that has happened over and over because you mentioned the things that have happened like the one thousand nine hundred four bond market sell off and then what happened the fed came to the rescue didn't they because things resumed interest rates resumed down you could always roll over your debt. you can always accumulate more debt and remember that mantra is always that it doesn't matter how much debt we all have because it's our servicing how much it costs a service that debt and that servicing the debt keeps on going down other than for the u.s. government remember we showed that a few weeks ago where because they accumulate so much debt even despite low interest rates they're servicing costs are going up every airline servicing cars for us just a half a trillion and rising and if their interest rates rise by one or two percent then america technically is insolvent and look a man

call at 10:00 one night and was asked to join a couple of other republican senators to meet with bernanke and paulson. again, it was because i had spent a lot of time on those kinds of issues. i spent a lot of time, you know, voting for tarp was one of the most difficult decisions one can make, that i am a market oriented person and i was concerned that people would show up on fridays, go to their atm's and there would be no cash. i got even more involved in the auto bailout, i was the last questioner and asked some questions that apparently stimulated some thought, and so we put it off for a couple of weeks. i went to new york and learned more about their balance sheets than i think even the ceo's did and their supply chains. i was very involved in that and i think it had a positive impact on detroit in the process, and car manufacturing across the country. that was a place where i feel like i made a big difference, a really big difference, without even passing legislation, because george bush but the corker principles in the document, to extend them credit, and then president obama came

down the fed has that power, so use it what concerns me, is the feds will miss the mark in 2006, bernankeld have said we will not why am i so worried about this the housing numbers suggest sales are collapsing right now and they are running substantially behind last year's pace home prices are down 8.9 although there are pockets that are lower than, 7.4 months of supply so sales going down, supply going up, and rates going up that's a recipe for disaster no wonder powell had to change its tune only one part of the border weakness which includes auto, and other stuff pales in comparison to the housing slow down let me read you part of a conference call from an outfit called redfin. since then rising ratings and home prices has caused buyers industry wide. talking about sales declining 20%. ouch and that was three weeks ago since then things have gotten much worse let me remind you what happens when you get a great deal of house, that causes a collapse in housing. few buyers can afford these homes because they are swapping out of a cheap old loan for an expensive new one. if the nonbank len

cultural mentality between new york and here and maybe tolerat it may bf this behavior and also is ben bernankea big part are not necessarily? scenic those are good questions. to be honest, i've been there before but i haven't been there enough to know enough about the cultural differences. i can tell you there is a big difference in terms of people who work in the private sector and what i encounter working on the regulatory sector. when you are working for a particular bank and you want your bank to be trusted and have more customers it seems everybody is better off. people from the industry were shocked to see how it was for goldman and how unfair it was for all the other bank and the systemic risks in having a bank that could go about its business without having to comply in the american rule of law. what does that mean and what kind of a risk does that create. so i can tell you the difference in those cultures but not about dc. what do i think? >> i confess i have not read your book. >> i haven't read it either. [laughter] >> can you be a little bit more concrete in the examples and can yo

if you look back and think about a broader picture, back to bernanke's years.ommunication from the fed has been brought since then. i would give them four out of five. caroline: that has been driven by jay powell in many ways. are you expecting more from him than the very carefully worded comments coming from the other earlier? yelena: i think the best thing we can probably get from powell's comments is one of the risks. you identify's what the risks are for the us economy, that would be a great thing. that we seegive us the economy is slowing and that is why we see this many rate hikes of course. -- if you'dus that knowledge is the recent turmoil in the stock market or says something to business assessment with a housing market, that would be substantial. he said the economy has a remarkable outlook. a lot has changed since then. we would like to hear if he sees the rights. -- rate. joe: he said he thought the fed was a long way away from neutral rates. i think he indicated they have gotten significantly closer to neutral in his view. do you expect powell to r

been off in criticizing the fed but if i had been president barack obama would have lunch with ben bernankea month, i would have lunches and i would put it between the eyes, 3% is the limit, you know, fed policymakers say 3% is the limit, your last statement where you forecasted interest rates you have to go to 3 and a half percent. why do you simply -- what's the deal here? you can be pretty blunt in public meeting, but on this one his bluntness is correct. the federal reserve is pushing interest rates too far. heather: what moves can the president could make to keep the economic recovery going that we have? >> i think that an infrastructure package would be useful and it depends on how you finance it. across the board income tax increase, tax increase on wealthy americans or however, i know this is not popular but i think we need to look at two things with regard to infrastructure, what we are paying to do something, i mean, go past your typical road construction site, you still have 6 guys standing around to 1 working, that's union rules. heather: yeah. >> the other thing, though, we hav

paulson comes to mind and ben bernanke.member some of those questions were lacking in financial knowledge. >> i will be the first african-american, the first woman to chair the powerfulling financial services commit -- the powerful financial services committee. that's all of wall street, the understand companies, the banks? what am i going to do to you? i am going to do to you what you did to us. trish: i'm all for her being the first african-american woman to chair this committee, let me make that clear. but it waltz second part of that sounds where she said i'm going to do to you basically what you did to us. what do you think she meant by that, kelly? >> i think she meant the banking industry took for granted the people that were part of their ecosystem. a lot of people lost their life savings and wealth because of bad decisions and corruption by the banks. i think what she is saying is she is going to apply reasonable standards to the banks so regular americans don't lose their life savings. trish: the obama years were

we had for last nine years yellen, bernanke low interest rates.ney flooding into the housing market. lowest new housing starts per population, last nine years were lowest nine years in history. now we have rates coming up, which will attack capital to the market. i think powell is doing a great job. paul: okay. >> i am worried about trade and spending. but i always worry about stuff, paul. paul: no you don't, art. you're the most optimistic man in the world. >> i am, i am. we have the tax cuts behind us. that is the best bill ever. that tax bill had almost no mistakes at all. deregulation is just fantastic. monetary policy, i think trump and larry kudlow are doing a great job getting some trade negotiations. if the president meets with xi in argentina i can't help but think this will be huge plus for america and china. paul: how much is at risk if there is change in the congress? obviously president trump has the veto pen, so he can veto anything he will do. there will not be big enough margins to overrule him on that. but on other hand the democr

obviously look back to 07 and '08 the bernanke fed was not at least thinking about those things. that is something went by their window a couple times and they still denied it. we got in the comment what we did. i laughing at keith's comment powell said they know how real money works. ever since powell came out famously on october 2nd. the fact that they are learning or leaning, listening if i can speak today, listening to the market, charles is a good reason for everybody to be more encouraged that the fed will be more accommodative going forward and that is what they need to be. charles: mike, i think the fed always listened to the market. the key though they acknowledged it here. chairman powell acknowledged it when he did the q&a down in dallas but i was talking to neil earlier, when janet yellen hiked rates in december of 2015 the market crashed. we started off next year, worst year, third worst year in 100 years. wall street always seems to jawbone the fed around. some people worry that may backfire. >> it may. charles: not jawbone, hit the sale button, fed is watching, the

we had easy money markets since '08, looks like jay powell is in the bernanke and yellen camp at thisoint in time. charles: to that note, volatility returning to the market. last year was one of the best years ever for the market, if you add in lack of volatility. every day was higher. not really a down day. hardly any down days. it was idyllic, like a breezy summer day, every single day. people are not used to that they got accustomed to that. now they are sort of jarred. is there something else to be looking for? obviously the g20 stands at next major event, something beyond there you might want to see to express maybe, hey, ride out these swings? >> first off, easy summer days don't last too long. you know markets are about buying and selling and sellers, sometimes do get upper hand. by the way they still may have the upper hand as we rally up a little bit, i will know in the next few days. for me it is not the news, it is how markets react to the news. for a long while, for a while, any good news was sold off, any bad news was really hit hard. if we start to see dynamic changes, t

trish: well, paulson comes to mind and, of course, ben bernanke.questions being rather lacking in financial knowledge, but also because here she is saying this. let's roll the tape. >> i will be first african-american, the first woman to chair the powerful financial services committee. [cheers and applause] that's all of wall street. that's all the insurance companies. that's all the bankings. what am i going to do to you? what i'm going to do to you is fair if. i'm going to do to you what you did to us. [applause] trish: now, let me emphasize, i'm all for her being the first woman, african-american woman to chair this committee, let me make that very clear before anybody misinterprets anything. but it was the second part of that sound where she said i'm going to do to you, basically, what you did to us. what do you think she meant by that, kelly grace? >> the banking industry took for granted the people that were part of their ecosystem, that a lot of people lost their life savings, their wealth because of bad decisions and corruption by the banks

>> thanks, jon i couldn't help but think i saw a judge by that cool helicopter, remind me of ben bernankelicopter ben, dropping money into the economy that's what my topic is today. many are looking towards the fed as one of the big risks in the economy. it makes perfect sense and that's what investors do it doesn't mean that worry always effects or investing is the high priority concern, but it is always lingering what's interesting today is post fed day where there really weren't any surprises, but as many have pointed out, maybe there was a surprise, by acting so bland in the face of volatility of a major order recently in the rearview mirror not being mentioned. maybe that is important. i can tell you there's always rhythm to the markets with regard to certain big data points, like employment reports and fed meetings, and we saw that to some extent. sometimes there are conflicting signals, but for the most part rates roast, the curve flat end. now twos, threes, fives are all still up although they had give back from historic comps, but the long end slipped on a weekly and daily basis

history of fed independence in this country and i think powell will continue to, like yellen and bernanked those before him, continue to look at the economic data and they will be data dependent >> it doesn't have to be an independent thing, because the president has criticized powell. i'm saying, look, the economy is slowing. there are signs it's slowing you mentioned what's been going on in the stock market is there an opportunity for powell to maybe stop hitting the gas pedal? >> with inflation perking up, i think they're going to continue to hike and i think the markets will react accordingly >> we spoke with you throughout the year on oil and energy what is going on with crude which is short now >> we are short wti. we're still long brand we're just playing that relationship i think when you look at supply levels they're extremely high in the u.s. all of the sell-off started as a result of growth concerns in the u.s. it's something to watch. the big thing you heard from opec yesterday between them and the president they have different views on where oil should be right now. i think y

. >>> ben bernanke has a new target of sorts.e is putting pressure on another big company to boost its minimum wage. will that work? we'll talk about that, plus luring big companies on the taxpayer dime, foxconn, amazon, getting big tax incentives to bring thousands of jobs to new areas, but is the price too steep? we'll talk about that. allstate is adapting. with drones to assess home damage sooner. and if a flying object damages your car, you can snap a photo and get your claim processed in hours, not days. plus, allstate can pay your claim in minutes. now that you know the truth... are you in good hands? i can do more to lower my a1c. because my body can still make its own insulin. i take trulicity once a week to activate my body to release its own insulin, like it's supposed to. trulicity is not insulin. it works 24/7. it comes in an easy-to-use pen. and i may even lose a little weight. trulicity is an injection to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. don't use it as the first m

on this is the secretary of state's office, long-time secretary of state in north dakota, has ben bernanke to us in trying to report this out what his office will accept in terms of acceptable i.d. this will be the first election for which this new rule will be in effect and he just won't say what he'll accept from native american tribe members. do you have a sense of what will be accepted or what won't, or is it as muddy to you as it is to us? >> well, that was the purpose of our lawsuit. once of the purposes of the lawsuit, rachel. let's start with first principles. north dakota does not have voter registration. we're the only state in the country that doesn't have voter registration. that is the vestige of the fact we're very small. small pop lakes. population of north dakota is less than the city of north carolina. out of that history comes the idea that you show up in the polls and you vote. there's no voter evgeny demonstratio -- voter registration process. if you show up at the polls with a voter i.d. either tribal or state that has a picture i.d., date of birth and your current res