or you see a child blowing bubbles, great big bubbles, and the bubbles floating off in the wind, yeah? and you look at the bubbles and you see--wow, what you see? beautiful rainbow colors in the bubbles. you see the spectrum. you see all the colors reflecting from the bubbles. isn't that right? or sometimes you take, like, an abalone shell and you hold up the abalone shell and you see the beautiful colors. we call these iridescent colors, yeah? and you're looking at the shell and then you turn the shell a little bit and--hey, wow, the colors change a little bit. or sometimes on a rainy day, you look at gasoline on a wet street. and you look at the gasoline's splotches and--wow, man. they have beautiful colors. and there are rings of colors too. do you have another-- the rings go all the way around like you got green. the green will continue and come all the way around. it's sort of like a contour map, a microscopic contour map of the different elevations of the gasoline on that wet surface. whenever you have a double reflection like that, oftentimes i should say, when you have a doubl

you obviously don't think so you don't think it's a bubble in fact you think that there's going to be an endgame where gold plays a role as money again is is a transition back into a monetary metal that will be used to back global currencies now our audience is already familiar with that we have had guests on like jim rickards author of currency wars who has talked about a gold standard now you go even further than jim rickards in your book could you explain how so. yes indeed i mean jim rickards book is an excellent survey of the mess we're in to some extent it's an interesting historical parallels to the mass for an and it is very instructive in that regard however i think you can go one step farther if you if you look at history and you consider the dynamics of international politics contemporary geopolitical rivalries and monetary arrangements what you find when you apply a game theory type analysis is that a return to something of a gold standard is simply in a bowl at this point and i know that may seem a bold prediction but really it's not the fact is that the global unbacked t

the housing bubble some call it as early as 2002. but it probably would have died an early death in 2005 because the fed had started tightening in 2004. country wide was predicting its levels would fall in 2005. what kept the party going was the introduction of credit default -- protocol, the international prot column on credit default swaps that allowed people to take short bets and ironically the other side wound up being aaa tranches of cdo owes that wound up on bank balance sheets because banks could -- traders could game their bonus systems. so and there are complicated mechanisms that led those to drive demand to the worst subprime dent and extend the life of that market. so it wasn't just a housing bubble. it was financial innovation gone bad. dodd frank doesn't address the credit swaps market. repos are how bank balance sheets now they funded bank balance sheets. those looked to be able to be gutted. we don't really know yet. a lot of the dodd frank is still in play. the other hope for dodd frank was that we now have resoluti

and we have to say about mr bubbles and the hero. i think because greenspan has come under so much pressure from trying to play big brother to here but i'm not buying we're not buying it we're all in agreement here so let's move on because it's been a rough couple of weeks for goldman sachs needless to say here is another p.r. fiasco to add to the list so it turns out goldman sachs had a thirty million dollars stake in village voice media which has come under fire for its back page dot com website now in an op ed in the new york times over the weekend columnist nicholas kristoff says this site is the biggest forum for trafficking of underage girls in the u.s. so indirectly now goldman sachs was linked to the child sex trafficking allegation so what happened. over the relationship. was employers cinches selinda state. goldman just like we're out we're done we can handle another p.r. scandal right while i'm gone we can't help themselves because they're so corrupt. they're so perverse in their very nature their culture is so malignant t

the pub little bubble bubble bubble bubble bubble up what is not rather shaming a couple of others so many years on got terrible consciously. poisonous chemicals were still there. no there's no truth in it there was chemical waste there and it was decided that waste would be disposed of put into the instruction of the supreme court so there was nothing because there's still human life there immediately or later on and now the idea is really that it's going on the toxic legacy of. involved. in the bombings that and all that the fight is not. outside the factory. a lot of. if you think before by thinking what a standard all the sound was like well if it's some despite then heavily contaminated. by. deciding when to make. these it is not a one time disaster it is. simply because they're going to ground was a girl and her family so a lot of people will buy because of. lies there is a contradiction to government to same i mean you have to ask the government and i think it's a very good question about the government being in government making a request for relief. to us we're saying we supp

bubble will be in for a kid to hold their revenue to market. they are i don't know how trillion. there even if it were imagine what a trillion is is this thousand trillion yen and this whole bubble it will be if rated one day it will be massive wells destruction. still ahead at one time about a decade ago dr mark probert advice for young people involved moving to asia and concubines well you will not believe what he says now as part of good bye how times have changed you'll hear it after the break but first your closing market numbers. we just put a picture of me when i was like nine years old i just had a look through. the contest and i am in total get over friends that i love rap and hip hop is a manuscript. that is kind of a big yesterday. i'm very proud of the world with its place. but you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and cheers you some other part of it and realize that everything is ok you don't i'm sorry welcome to the big picture. what drives the world the fear mongering used by politicians

the water boils right down the bubbles. you even see the frozen bubbles. and water boils until it becomes ice. so if you're ever with a friend that doesn't believe water is a boiling process, take him to the exploratorium in san francisco and check that one out. boiling is a process. say again. boiling is a cooling process. boiling is a cooling process. what did i say? water is a boiling process. oh, gosh. my--no. oh, hewitt, hewitt, hewitt, yeah. yeah, water is a-okay. [laughter] thank you, lee. thank you. yeah, but boiling really is a cooling process, gang. and when you're cooking water at home and it's boiling away, you just remember--people, that, "hey, what's the temperature of that water?" and they say, "a hundred degrees celsius." you turn the flame up. "what's the temperature now?" [growls] they'd say 100 degrees celsius. that's right. turn it all the way up. [growls] really frothing over. what's the temperature now? they say 100 degrees celsius. i know something, you know? i know that temperature of water is always the same. and then you say, "wel

creating bubbles in the first place and don't forget one of the big policy mistakes was. a policy. including. to for all the. so-called government. both of them when the. bankrupt like no other company before it was expect whatever the government does. is much worse than the private sector it's about like you are saying that it's gotten worse my question is we live under the assumption that the us is a free market economy where do you think we are do you think it's fair to say that we live in a market economy anymore or is it mostly market driven or is it worse than that where are we what i think is a question we have democracies in the west in the world people are free when i travel through the u.s. and through immigration. airports i don't feel like a free individual i don't. think. by governance in cooper marketplace i have actually destroyed that market and if you think about it we have zero interest free rent we have cost of living increases of say five percent ten percent or so people who are being saved for your million and million pounds on presents this people can never sp

little bubble bubble bubble bubble a little bit but isn't it rather shaming a little bit of it for so many years after that terrible tragedy. poisonous chemicals were still there and they. said they me no there's no truth in it there was chemical waste there and it was decided the way school people supposed off the instructions of the supreme court but there was nothing hazardous for human life there york immediately or later on and now we are here to release our study on the toxic legacy of unita like factory in hobart and there is a lot of pot in the government there and we have some reports that the site is not possible outside the factory. strong water samples he found nobody in one sample just twenty four pints the drinking water standard all the samples then collect it from the site then heavily contaminated. by a good person site and wouldn't let me conclude. he believed there was one is not a one time disaster it is a continuing disaster simply because there is a plank in ground water contamination and contamination of a minute i hope as we go to museums. nice there is a contr

a bubble. value well and you're right in that the dot com and the housing bubble were both price bubbles but the housing bubble unlike the dot com bubble was a credit bubbles that went out pot it was that much more catastrophic so you're totally right there you can have a case to be made that the fed was instrumental in both because there's an argument that the fed cut rates too low for too long and letting the dot com bubble build the way that it did in the same way that there's so much evidence of the fed's low interest rate policy created all this liquidity that created this situation that was so conducive to the subprime mortgage crisis and the housing crisis that we saw all right so basically we just saw you coming out here and doing a lot of defending of the fed's policies and making a lot of excuses today is what it seems like that's just a day in life ben bernanke these days where i feel like at least once a week he's out doing p.r. for the he's doing he's become quite the spokesman you

>> unfortunately, the bubble gum machine doesn't actually work. this is just for looks. >> oh. >> that is stupid. it would be cool if it actually dispensed. >> yes. if it dispensed gum, i would wear it. i would chew gum constantly. >> i find it interesting. i don't know how many people are going to be buying this, especially because it costs $135. would you pay $135 for this? >> no. i don't think i would pay $35 for it. >> i think a lot of people would say that dress blows. >> wow. >> well, this dress was designed by a company called davo-wavo, and if you don't like the bubble gum dress, perhaps you would like some of their other dresses. game boy. >> ooh, love it. that's cool. i dig that. >> there's also the my little pony dress. >> that's creepy. >> the dress has a tail. >> and a maine. >> if i see a girl wearing this dress, i will immediately think she is crazy. >> how about the hello kitty tutu prom dress. >> i think a girl wearing that to a prom would be cool, actually. >> what do you think? would you wear this dress or would you go out with

children's playground area and started blowing bubbles. >> alan: including baby bubbles and supersizers. >> ama: organizers say the opinion is to add a little magic to the dayment having so much fun. >> alan: the bubble flash mob. need more of those. >> ama: that does it for this edition of abc-7 news. >> alan: thanks for watching. captioned by closed captioning services inc.

but of a super bubble. and he often said, and it was interesting because you know larry was up there that responding to a super bubble that has burst requires a very different kind of orientation that the typical tools that you use to respond to a recession won't work. and he would often say if larry summers is right, then he will succeed. but if larry summers is wrong, and i'm right, then what the application of tools that they did in this recession will fundamentally not solve things. where do you come out? was it a super bubble that burst? and have we failed to really remedy the problem? or has larry summers, while he was in his position using more conventional tools and responding to recession succeeded? >> forget about the personalities, george soros, larry summers, whatever. the question is -- >> we have cnbc here. they like names. the question is, was this a super bubble? yes. it qualifies. did it have a character that was not amenable to a quick fix? the normal -- the garden variety of business cycl

what makes this a bubble which would imply a popping of the bubble at some point?well, we described it as a fundamental bubble. having a large influences on the economy. it's not a single asset price that's about to price, and it doesn't have sort of the cyclical component that housing, for example, but it's growing much faster than the incomes than we are willing to support it with. it's growing in employment to a great deal, and -- and having, you know, very large influences. it's the largest future influence on the u.s. treasury, and -- and as such, if we don't recognize these costs, there's ultimately a price to pay for it so it's having fundamental effects. >> a lot of people who would would say when it comes to health care people will pay it costs. when you need surgery you're going to have surgery, when you need the medicine, you'll pay for the medicine, when it's a life-and-death situation but at the same time you make the case that there could be pushback, that it may not be as elastic or as inelastic as we think and you have to take a look at where the fu

imagine but trillion is the thousand trillion and it's all bubbles will be. happy that there will be mass destruction. still ahead at one time about a decade ago dr mark barber's advice for young people involved moving to asia and i want you by well you will not believe what he says now as part of then by how times have changed you'll hear it after the break but first our closing market numbers. we just put a picture of me when i was like nine years old i like to tell the truth. i'm obsessed and i am in total ghetto friends that i love rob and get coffee is a planned trip. but he was kind of the guest today. i'm very proud of the role without you it's a place. you know sometimes you see a story and it seems so silly you think you understand it and then something else hears you some of the part of it and realize that everything is or you don't know i'm charged is a big. what drives the world the fear mongering used by politicians who makes decisions. made who can you trust no one who is you know view with a global missionary see where we had a state controlled

the pull up a little hole in the middle of the bubble bubble of a political party but isn't it rather shaming open for so many years about terrible tragedy. poisonous chemicals was still their name this man said jamie no there's no truth in it there was chemical waste there and it was decided that waste could be disposed of into the instructions of the supreme court but there was nothing hazardous for human life then immediately until later on. another young release of a study on the toxic legacy of union got that exactly in hobart and there is a lot of talk in the government that and we have read some reports that the site is not toxic outside the factory people look at ground water samples we found mostly in one sample which is plenty for banks drinking water standards all the samples like looked at from this site heavily contaminated. by proving you can give us insight and we like the people. we believe they will want is not a one time disaster it is a continuing disaster simply because that's the kind didn't ground water contamination and contamination of a lot of people who got t

scrubbing bubbles toilet cleaning gel.ush-activated to prevent buildup of lime scale and hard water that cause toilet rings. the freshest way to keep a toilet clean. [ toilet flushing ] flush after flush. [ female announcer ] s.c. johnson. a family company. having one of those days? tired. groggy. can't seem to get anything done. it makes for one, lousy day. but when you're alert and energetic... that's different. you're more with it, sharper, getting stuff done. this is why people choose 5-hour energy over 9-million times a week. it gives them the alert, energetic feeling they need to get stuff done. 5-hour energy...when you gotta get stuff done. peppermint that cools as you chew. 5 gum. stimulate your senses peppermint that cools as you chew. (sfx: car garage sounds) today my journey brings me to charlotte, north carolina, where i spent the day with geico driver casey mears. i told him the secret to saving money on car insurance. he told me the secret to his car setup. first he adjusts... first he adjusts... (sfx:engine

freddie and fannie of all responsibility ben bernanke he thinks the financial crisis the real estate bubble was simply the result of malfeasance on wall street and the only fault he has in the fed was that they didn't regulate wall street into banks enough so ben bernanke he is completely clueless and i believe that ben bernanke he is putting a dollar on a collision course with disaster he is going to put print the currency into oblivion you know which is why people need to be on a gold standard people need to save gold you can't trust the central bankers they will keep on printing money they will keep interest rates down they are clueless about what would drive really konami growth and so they're going to continue to destroy the currency so if you know of your look at a gas prices or food prices if you're planning on buying these things with paper you're going to need a lot of it because the price is going to go way up but if you want to preserve your purchasing power if you actually want to. see a reduction in your cost of living the way to achieve that is to save gold and not feel a curr

embarked on some research to see what it could do to kind of figure out if it could see panics and bubbles before they happen. we'll have to wait and see if the question and answer says does yield any commentary on monetary policy or the economy. >> that was going to be my question, steve. i assume he will get questions about the current economy and monetary policy. who, by the way, is in the audience at this event at the princeton club? >> a series of academics and other policimakers who are studying the financial crisis and the reasons for it. i saw former federal reserve governor, alan blinder spoke here as well, former federal reserve vice chairman. tyler, i'm very happy it's the weekend. i have read well over 100 pages of fed speeches this week. nine of the 17 fomc members have spoken. i think the takeaway for the markets here, tyler, is that no qe is imminent but it's on the table if the economy were to weaken. >> steve liesman, thanks very much. we'll check back in with you throughout the hour. let's meantime go over to simon. >> you know, tyler, there's a perception that during the

to this day gas continues to bubble up at the seams main exit point on pepe langer's land. so what they're trying to do is contain everything. they can probably in a full life in a certain area here if there's no benzene to reign in there and nobody knows how long it's going to three or if ever. we're really you know everything is going to be freed up. according to a statement provided by the end can a corporation nothing that and can a did was out of compliance with the regulations in place at that time extensive monitoring following the incident indicates there was no contamination of residential water sources as a result of the sea and air convection system is in place to remove benzene from the groundwater in the plume area spills and groundwater contamination can occur anywhere there is drilling industry representatives often try to downplay their environmental impact. since colorado matters so coloradans who with the oil with gas will say drilling is making the series spike in oil and gas drilling in colorado is having a good senators for they should about the effect

to this day gas continues to bubble up at the seams main exit point on ted the langurs line and. so what they're trying to do is contain everything they can come in a full right in a certain area here if there's benzene to reign in there and nobody knows how long it's going to three or if ever. we really you know everything is going to be cleared up. according to a statement provided by the encounter corporation nothing that and counted did was out of compliance with the regulations in place at that time extensive monitoring following the incident indicates there was no contamination of residential water sources as a result of the seat an air convection system is in place to remove benzene from the groundwater in the plume area spills and groundwater contamination can occur anywhere there is drilling industry representatives often try to downplay their environmental impact this is called matters so call rodent's we will with gas we'll see truly what is making the recent spike in oil and gas drilling in colorado is have a good it's there's new information about the effect it will

now, of course, japan had a much bigger bubble and much bigger shock when the bubble collapsed. so these differences may be certainly understandable. but again, we did avoid the deflation. the other thing, which i think we have done reasonably well in the united states is that we moved fairly quickly to make sure that our banks were recapitalized and we were recognizing their bad assets, and i think tests are considerably strong and much more resilient than a couple of years ago. so those two things are positive and would tend to suggest that we will avoid some of the problems that japan has faced. that being said, it's always better to be humble and just to avoid being too confident. and we need to continue to maintain a strong monetary policy support to make sure that the economy continues on a recovery path and returns to a more normal situation. >> scott with cnn money, sir. i want to ask the labor force participation rate. it's at the lowest level since the early '80s. can you talk about why people are dropping out of the job market? whether it's a permanent structural prob

a lot of that was a bubble. that was popped and resulted -- we have had to manage a difficult situation. even before the bubble popping, there was excess. because the money flows in in a regular amounts, when money is good, everybody feels good. when $14 billion came in, they thought they were king of the mountain and spend it. arnold came in to clean it up. a couple years later, he left town and $26 billion this year. this has been the nature for the last decade, kicking the can down the road. not talking straight. the way it is. the way it is, it is a tale of two cities. there is fabulous wealth and link electronics, inc. model number: pdr-885 software version: 3.0c in some places it would be food or shelter or love. going over the sources of passion. they see all the world for the first time the majority of people everywhere want a good job. they want a job that is above the table. that is 30 hours a week. the real key to that is going to be a local and state government. hopefully the mayor in denver and myse

i will say not just a bubble, yeah, there was a tech bubble in the 90's. this country has grown through decades through much higher tax rates that they're about to get. they're a big boom for everybody now. in the 50's and 60's, this country does very well through higher tax regimes and we can get by without 0% interest rates forever. america is a strong country. we have to get back to reality at some point. >> basically, gary b, he's saying that we are kind of becoming an entitlement culture. >> well, yeah. that just hit to jonas' point. it's what philosophy you have. if you think the government should become bigger and bigger and bigger and it certainly will under any kind of budget that the obama administration has talked about, it's going to be bigger and bigger and take care of all of us, then, yeah. we might as well move to europe without the good food. >> that has to be the last word. thank you so much. from the ticking tax bomb to even more sticker shock explosion hitting your wallet. guess who is still denying we have an inflation nation. every ti

i'm not allowed my name is salam bubble but people call me bubba salami and. try to have a small business where you know where de where journalists. but i have no savings here walkway that whatever does get saved was spent on medicine. her condition used to be much better. she used to go to the markets to go for walks and play around with. she used to laugh and have fun there were no problems. and it was some time later on we noticed that she couldn't sit up on her own or turnover of the kind of money to put here. slowly she started looking to press. when we would talk to her she would not reply . so we brought her to the doctor but the doctor said she's been like this since birth and there might be some treatment for her me. of my own today we are at a point where we wanted to do a lot but we can't do much. for the people the disaster has been an ending because people continue to be more than hundred thousand people still chronically ill and there's initially thirty thousand people who have been forced to drink contaminated water for the last fifteen fifteen

that's why we had the housing bubble. and so it is hith the whole economy.ou go to a grocery store, what do you find? price doesn't go up but the package is mauler. it is affecting the consumers. cheap dollar means weak recovery. get ahold of it ben. >> rick, inflation or not. >> i think morgan had it right. you have to be careful in how you look at the numbers. we know that proctor and gamble will be rolling back the prices. look at hershey which was the example. they make chocolate and we know that the price of the cocoa bean is at a 30 year high. why? supply. >> we have to be vigilant about inflation. we are coming out of a difficult period where stimulus was require there is a lot of printing of money and absolutely keep your eye out for it. are we well yet? we were worrying about deflation. >> phil, they admit when you print money there is no such thing as a free lunch. don't you eventually end up with higher prices. uncle ben bernanke has been throwing bills out of the helicopter now. >> ben bernanke is head of the federal reserve and in charge of prin

that is effectively repeels half of the meaningful rules that were put in place to prevent another bubbleg inflated. what is their logic? how do this rationalize this? >> it doesn't make any sense at all because really the stockmarket was one of the few markets that wasn't a complete and total disaster and arrive with corruption. it's the one place where america had a relative come peltive advantage because investors around the world know that companies that are on the stockmarket have to conform to some basic regulations and the numbers they submit are at least in the ballpark, a reality. now, all of that goes out the window. now, there is no competitive advantage. >> you gave us the example of this law saying new companies with valuations under a billion under revenues won't need to have certified public accounting records to valueidate their claims. what is that and why do they think that will help people raise money? >> it doesn't make sense. the analogy i gave it would be like anouncing all baseball rookies would be exempt from steroid testing for the first five years of their career

you blow bubbles. >> well, yeah. that was my other choice. >> that was going to be your third?uys discovered that if you took a cd, scraped off the print on it and then heated it up with a flame, it would melt just enough to blow a bubble. >> what? >> whoa. >> pretty cool, right? so what they do is they keep the flame on the cd for about 15 seconds, or until the plastic melts to the point that it's about to drop. once they see that it's about to drop, they blow on it. >> that's crazy. >> isn't that gnarly? i have never seen anything like that. >> we should try that right now. i've got a cd down there. let's just try it. >> oh, boy, here we go. >> 15 seconds. >> i don't know if you should be doing this. >> no, no, no. >> yep, it's gone. [ buzzer ] >> go now. go now. yeah! >> yay! >> cool. >> it actually worked. we found something on the internet that actually works. >> that's it for us here at "right this minute." we're so glad you joined us. don't forget to check out rightthisminute.com for all your favorite videos. we'll see you next time. have been -- captions by vitac -- www

on in your rights well you know this is a big surprise basically we got here because the housing bubble collapsed it's not a normal recession usually when you have recessions brought on the federal reserve board trying to stop inflation and raise interest rates goes too far doesn't raise interest rates people stop buying cars they stop buying houses when they want to get it get things moving again the lower rates there's pent up demand for cars and houses and that sends the economy that's sort of the kindling that sets the fire going this case we've got here because the bubble housing bubble collapse there's no pent up demand for housing interest rates are already as low as they're ever going to go so there's no sort of switch that the fed could hit or anyone else could get for that matter to get the economy going so we're seeing some growth we had three. percent growth last last fall last quarter that's not bad it's not great i mean would you like to see it coming down to like this is six seven eight percent growth that's what we had eighty three coming out of that recession seventy fi

housing bubble collapse there's no pent up to me and for housing interest rates are already as low was they're ever going to go so there's no sort of switch that the fed could hit or anyone else get it for that matter to get picked on to be going so we're seeing some growth we had three. percent growth last last fall last quarter that's not bad it's not great i mean would you like to see coming down from like this to six seven eight percent growth that's what we can eighty three coming out of recession seventy five coming out of that recession so we're seeing weak growth compared to prior recoveries from bad recessions but we are seeing growth the growth is there but it is very weak but so you also have to ask where exactly the money is going right because suddenly it looks like companies are hiring entering not suddenly but slowly gradually they're hiring at a faster you know at a larger pace and we know the pair making profits because we see these numbers come out all the time whether you know it's in the because corporations or whether it's wall street recommended though and so are

are you concerned -- instagram comes to mind -- about a bubble? >> we have been trying to analyze that question with financial people and people in the industry. i do think there is more maturity with the companies. i get a chance to go out and talk to one new company week, when i get out of my city hall prison to meet the innovators. they introduced me to their employees. i get to have a direct dialogue with the employees and ask them what they need to stay. they say they really like being in our city because of the night life, the culture. they want education, they want a better transit system. they always have ideas to improve the municipal transit system. but when the talk about the bay area, including silicon valley, it is the same thing. transportation symptom -- systems, central subway, high- speed rail. clearly, bart to san jose has been incredibly important to everyone, so that people could travel. i think there is a lot more maturity. there are many successful company that have already turned a corner on making a profit. start-ups have l