dr. greenspan?ng market begins to move back, we'll not have any significant cuts in the unemployment ra generally. but at the moment, housing starts are as low as they can get and replace the number of units we need. so there's a question not of the housing market going down anore. the key question here is the price of homes. becau what we saw, for example, in 2005, 2006, there was something like 8 million new home purchases financed by conventional conforming mortgages, which means 20% down and the like. those 8 million homes are now right on the edge of being so-called under water. and while the price levels o homes have been remkably stable since the beginning of this year, the critical issue is that if ty tilt below where they a now, say 5% or 10%, it will create a major increase in forecl we know why we're here. to build a new generation of airplanes to connect the world. ♪ airplanes that fly cleaner and farther on less fu. and make nonstop travel possible to more places. ♪ [ female announcer ]

dr. greenspan. on wealthier americans be extended without corresponding spending cuts? what's going to happen? what should happen? >> well, what's going to happen is they're going to get extended and that's very obvious with respect to what the rhetoric is. that's the easiest thing to do politically at this stage. we have to recognize that longer term the problem is spending. you can't think about the concept of taxes until you ask what is it that you're hunting? at the moment, we are essentially borrowing more than a third of what we spend and this is causing a huge increase in the debt. it's not going to be easily reversed. as far as i'm concerned, what we're going to have to do is to essentially look at not individual piece meal cuts or taxes. we have to look at whole projects. for example, i think paul ryan did a very important -- made a very important contribution. >> chairman of the budget committee in the house? >> yeah. you can agree or disagree with his structure. i happen to agree with mos

dr. greenspan, let me begin with you.here are we on our search for jobs and on our overall economic outlook? >> well, our search for jobs is not doing too well. the 10% unemployment rate is the consequence of the fact that this economy is not picking up the way it ordinarily would out of a recession. and the basic reason is that unlike previous recoveries, when, for example, we would be getting very significant pickups in building, residential, nonresidential, in a sense longer-term assets, we're not getting that today. and it's a big hole in the economy and the reason essentially as far as the business sector is concerned is that business is highly uncertain about the future in a way which i have never seen it before and a way in which the data suggests has never in fact been so depressed. and unless and until we can begin to lift that pull of uncertainty, it is very difficult to see people reaching out into the longer term. remember, buildings are 20, 30-year investments. >> right. >> what the data show is that they --

dr. greenspan, and he said it was a bad idea. david stockman -- i believe he was a former budget director with bush who said it was a bad idea and i approved -- agree what the caller take callers before suggesting, we have these huge deficits and want to add $700 billion. $3 trillion in 10 years if we want to make a permanent 10 years. i think it is ridiculous. however, if you are going to say you want to extend the bush taxes, for everybody to be on the same page and on record with the american people saying, look, this is how much it will add to the deficit. let's not make a partisan. everybody needs to stand in front of the american people -- president obama, cantor, mitch mcconnell, boehner, look in the camera and say, look, this is, it is going to cost, and to the deficit. when these things happen, it is always this person blaze that person. if we are going to extend them put everybody on record. then we can have a discussion. host: you think the leaders here in d.c. should ask the american people should make sacrifice when

cleaner one of the architects of this whole thing that we see or find ourselves and dr mengele know who is close to alan greenspan i want you to look at this little video of way he says about the problem with the global financial system at the moment there are two fundamental reforms that we need for good. too good for fire of levels of force. statute to streamline to merge and. things were done which were. through the room. for prudence reform. who would create a very considerable. competitive market in terms of crossing borders. strong. well alan greenspan is a dork and a face a terrorist he should be up on war crimes but basically all the problems that the result of the fed's artificially keeping interest rates low have resulted in the growth of fraud in other words you need to distance center vies fraud you need to make the cost of money high enough so that the risks associated with borrowing to start your fraudulent activities are diminished if you make the price of fraud so cheap that any goombah can borrow billions and start anything crazy scheme that they can concoct in their diseased mind like a bernie m

greenspan. he is now a senior fellow at the brookings and duchenne. dr. kohn is a 40 year veteran of the federal reserve. prior to serving on the board he was an advisor to the board for monetary policy, secretary of its open market committee, director of the division of monetary affairs and deputy staff are for monetary and financial policy. he also held several posts in the ports division of research research and statistics, including associate or, chief of capital markets senior economist. he began his career as financial economist at the federal reserve bank of kansas city. he also served as chairman of the committee on the global financial system, a special bank panel that monitors and examines broad issues related to financial markets and systems. dr. kohn has written extensively on issues related to monetary policy and its implementation by the federal reserve. these works are published in volumes issued by various organizations including the federal reserve system, the bank of england, the reserve bank of australia, the bank of japan, the bank of