exactly right the cost of things that are quantified assessed of teas are skyrocketing if the federal reserve bank that you just mentioned puts out a report saying they're worried about d flake in an environment where the cost of necessities are inflating or is skyrocketing and the federal reserve bank isn't good at these bankers that's tyranny that's the definition of tyranny that triggers a second amendment right there why are you being such shy wallflowers what happened to the america of my youth i was willing to stand up and be counted well you know it's just simple public opinion that's all george well or else says is just simple public opinion the police the government doesn't matter as long as the people change their mind i don't always referring to british or english people who had hundreds and hundreds of years of being subjugated by the crown so you are sadly used to spend a few moments of sunshine of independence and freedom ok well finally that you know he ga our orwell talks about the reason why minorities can be persecuted for examples because the public gets sluggish they just stop

banks in a federally controlled central bank. that was the difference in his plan. there should be a nine-member federal reserveboard with five directors representing the government and four representing the banks. he also felt the public should be able to purchase stock in the federal reserve. he felt this because ever since the days when he would buy his one share of stock in chicago to report, he thought the best way to keep corporations honest is for the public to be informed. the best way for the public to be informed is to have a say and stake in corporations. he thought everyone should own stock. he said to himself and in writing a number of times that of the general american public can understand the statistics of baseball, they can understand the stock market. i am not so sure i agree with him because i cannot understand either one, but it made sense. resident wilson was furious frank vanderlip was stepping up back in because this was derailing everything. wilson wanted his men to run a freight train over the democrats that had stalled things in the senate. eventually the senate banking committee did a

banking system. we did not have the federal reserve. we had a bank called jpmorgan in your city which got together the other money center banks and said, we need to provide liquidity to the banks in this country to prevent a run, and they provided that liquidity. out of that experience we developed the federal reserve system. one of the primary purposes of the federal reserve system is to provide liquidity when you've got panic in the marketplace, and assets are good you have a panic causing a run. the federal reserve and the federal home loan bank system are there to provide liquidity. if you say that banks have to hold $2 trillion in government bonds in order to provide the liquidity in case of an emergency, you are taking that fund out of the economy. and since there's leverage that $2 trillion could be five, $6 trillion of lending, and you're not really helping safety and soundness. because the wafer proposal is, you are going to be encouraging banks to holding long-term treasury bonds. and if there's a liquidity crisis and interest

the federal reserve bank of new york has accused deutsche bank, the u.s. operations, of inaccurate and unreliable reporting. that's according to the "wall street journal." they reportedly said the bank, quote, requires wide ranging remedial action and has made no progress fixing previously identified problems, including shoddy reporting and weak technology. shares this morning under pressure as you can see -- actually, that's gsk we're showing you, deutsche bank earlier in the session down about 3%, but gaining back some of the losses this morning, too. david enrich will be joining us later in the showed and we'll discuss that. >>> lots of earnings news out from europe today. disappointing figures out from abb. the firm missed expectations with net profit falling by 17% in the period. the engineering giant blamed a continued weak performance in its loss making power unit which it says would weigh on earnings in the current quarter. dutch painter axa mobile was boosted by decorative paints business in europe and in asia. resolute cost cutting helped boost t

have then but nothing right every single central bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is old buddies bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not is about fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other line of the russia it was aligned with china and around so hello twenty first century. so you got to go ok go make some friends stay tuned for the second i got an interview i did earlier with arian compound. it was a. very hard take i. want to get along here a lot have you ever had sex with her make her know. she. was. one of. the people. my friends there are now friends so said coco chanel jim has all been making a global

every single such a bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is all done this bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not it's about a fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and then the other line of the russia it was aligned with china and around so hello twenty first century. so you got to go ok go make some friends stay tuned for the second half got an interview right then earlier with arian compound. dramas that can't be ignored to. stories others refuse to notice. the faces change the world lights next. to the picture of today's you know. from around the globe. dropped. to fifty. this is what we do we kill people and break

have then but nothing right every single central bank of the world's been co-opted by the federal reserve bank bank of japan the bank of england the other major ones they now want the european central bank which let's face it is the old blunders bank the old german central bank to expand their balance sheet go to quantitative easing and they're going to say no we're not is about fact why don't we just take over your economy and don't want to just bring in the fourth reich you fricken losers and you know what they could do it they've got the firepower they've got the intelligence they've got the leadership something american the u.k. has no leadership whatsoever and they're not a lot of the russia it was aligned with china and iran so hello twenty first century. so you got to go ok go make some friends stay there for the psych about got an interview i did earlier with arian compound. i marinate join me on. impartial and financial reporting commentary interview and much much. only on the bus and on the. right to see. first street view and i think you're. on a reporter's twitter. instagram. to be

banking system. we did not have a federal reserve. we had a bank called jp morgan in new york city which got together the other money-centered banks and said we need to provide liquidity to the banks in this country to prevent a run, and they provided liqu liquidity. out of that experience we developed the federal reserve system. one of the primary purposes of the federal reserve system is to provide liquidity when you've got panic in the marketplace. when assets are good but you have a panic causing a run, the federal reserve and the federal home loan bank system are there to provide liquidity. if you say that banks have to hold $2 trillion in government bonds in order to provide the liquidity in case of an emergency, you are taking that fund out of the economy. and since there's leverage, that $2 trillion can be $5 trillion, $6 trillion of lending, and you're not readily helping safety and soundness. because the way the proposal is, you are going to be encouraging banks to holding long-term treasury bonds. and if there's a liquidity

increasing the balance sheet of the central bank in europe to equal the balance sheet of the federal reserve bank and the bank of england where they're taking on trillions of dollars euros yen of course bank of tokyo being the granddaddy of all this in toxic debt to the point where this too will reach its point of no return and they'll be a massive sovereign debt bubble the likes of which the world has never known before i think the e.c.b. asset purchases will bring us to the end of this bubble phase in the relatively short order well usa today on this article even though they present it with those charts and the with the misleading title of is the fed fueling a giant stock market bubble they say no no no while the fact that the fed's monetary policies have caused stock prices to soar it doesn't mean there's a bubble they say that in fact the reason for this is simple in order for there to be a bubble asset prices must be more than inflated they must be irrationally inflated and the like i've discussed this isn't the case if anything in fact the increase in asset prices is entirely rational and w

the research from the federal reserve bank of san francisco shows that wages for recent college graduates are rising more slowly than they are for the rest of the u.s. workforce. >>> higher wages might be just what a lot of the nation's retailers need right now as they fight off a funk from tight fisted shoppers who are reluctant to spend their money. now retailers are fighting back. courtney reagan has more. >> reporter: it hasn't been an easy year for retailers, and the stakes only get higher. the all-important back-to-school and holiday shopping seasons have stores pulling out all the stops to get consumers buying. economic data shows consumers have been spending on big purchases, like homes and cars. but when it comes to smaller items, like closet organizers, and clothing, retail ceos are scratching their heads. ceo of the container store thinks there is, quote, a retail funk going on, causing sluggish sales at his company, as well as others. staples' president of north american stores and online agrees. saying weather is no longer the foremost barometer retailers can rely on to predi

while let's go to new york on the federal reserve bank the place where some of the world's largest economies keep their gold deeper on the ground lies the vault probably the biggest you'll find anywhere there is the equivalent of around four hundred billion dollars there but most of it does not belong to the u.s. in fact almost all of it comes from other nations who just like germany rely on agreements with their american partners. well this play with us because we have more news coming your way after a short break. she did laboratory curbeam was able to build the world's most sophisticated robot which on her feet leave doesn't give a darn about anything mission to teach creation why it should care about you and. this is why you should care what you only on the. economic down in the final. and the rest because i. believe every week. on america in the financial world. it's not stopping only to the credit. in life there are. welcome if you just joined us this is our to international the former georgian president has passed away aged eighty six aside from being george's leader on the rose revol

and how the us more federal reserve might react to tomorrow's scores is josh wright. a former strategist at the federal reserve bank of new york where he advised policymakers in the wake of the financial crisis. you survived that, and now you are going to tell us about what is supposed to happen with the jobs market tomorrow. what do you think it will tell us cap go >> i think it will continue to post solid gains. a lot of people start to discount the number. and you look at the broader trends in the past month we have seen some really encouraging signs. >> 281,000 private sector jobs having beenadp is created in the past month. tomorrow's report we get from the labor department, that will include government workers. a big sanction. >> absolutely is. adp does not always tracks perfectly with non-foreign payrolls. these are very different surveys. the average deviation has been about 40,000 on average. >> so there is a discrepancy between the two and cannot divine one from the other. based on the initial jobless claims we have been getting every thursday, does that tell you anything about the trajectory of the emplo

germany as of late and with most of the country's gold deposits sitting right here in new york's federal reserve bank many in germany have been campaigning the buddhist bank germany's central bank in frankfurt to bring their gold home peter oliver has more there was a time when taking gold out of the u.s. federal reserve was only for hollywood to suggest. it's. bruce willis because the flight until crisis in europe sold germany decided it wanted to bring home a significant chunk of the precious metal from the united states despite the aim to ship three hundred tons to twenty twenty so far they've only monies to bring back just over ten percent of. the americans are taking good care of our gold we have no reasons for mistrust. not so say critics of the slow progress the six hundred thirty five billion dollars of gold in u.s. faults has never been fully inspected by germany this myth. why we haven't been allowed to inspect this escapes me i'm no conspiracy theories but the bundesbank should be able to audit the gold once a year like it does with the reserves in frankfurt. the lack of inspection has led

krugman of the new york times they claim that there is no inflation in america and therefore the federal reserve bank should keep those interest rates at zero percent but the fact is that if you look at something critical to the economy like health care the costs are almost on the verge of hyperinflation if you want to really look at the numbers and discount the fact that people are being thrown off the system or they want to challenge obamacare and destroy a bhaumik eric cetera if you calculate the real numbers and put it back of the system having health care that works that's really utilitarian the prices are almost of the hyper inflationary upward spiral but it's hidden by the fact that people who end up falling off the health care rolls and in the street homeless and i countered any more and any statistics that are essentially abandoned if you do a calculation on the average health care over three hundred million people comes over the difference that just tickle reality the fact that while most people can actually afford health care and only a few people to very top are and they hide it very clev

krugman of the new york times they claim that there is no inflation in america and therefore the federal reserve bank should keep those interest rates at zero percent but the fact is that if you look at something critical to the economy like health care the costs are almost on the verge of hyperinflation if you want to really look at the numbers and discount the fact that people are being thrown off the system or they want to challenge obamacare and destroy a bamma kerrick cetera if you calculate the real numbers and put it back of the system having health care that works that's really utilitarian the prices are almost in a hyper inflationary upward spiral but it's hidden by the fact that people who end up falling off the health care rolls and in the street homeless and i countered any more of any statistics that are essentially abandoned if you do a calculation on the average health care over three hundred million people comes over the difference to just go reality the fact that while most people can actually afford health care and only a few people to very top are and they hide it very cleverly wel

maybe these changes in january weren't enough for the regulators at the federal reserve bank in new york. >> fascinating story. we are going to get more from the global head of equity trading strategy at citigroup. i want to talk about the sector. regulators versus banks. it has got to be the biggest headwind. if you are trading banks, how do you play this? >> we are bullish on banks in general. we see qe will be possible and will provide a push to asset prices. in the short term a few worries. we mentioned pmi in europe a little earlier. pmi correlates to value. there are a bit of headwinds valuationm pmi's on a point of view. as we look at 2014 what was step one.was just step two is more purchases. we expect by the end of the year we will get a lot more asset purchases. goodis going to have to be for the bank as well. >> are you bullish banks because fundamentally they are in europe or because the ecb is going to do something and we know what happens next time? >> to bring you back on regulatory risk regulatory risk is something we have to learn to live with as an industry. as much as

, it is an indication of how upset the federal reserve bank is with deutsche bank. couple ofhey have a options. they can send a private letter. they can fault the company publicly. they can do what appears to have happened. right a letter, and when no action is taken, release the letter. like deutsche bank has a lot of making up to do. this is the same business headed by -- >> thank you, hans. their international correspondent in berlin. >> coming up, how should investors be positioning themselves? our guest tells us, next. ♪ >> is about a clear commitment to ukraine. united, a democratic, european country. that was the foreign minister of ukraine speaking in brussels, explaining the reasoning behind me fresh round of sanctions. welcome back. this is "countdown." could geopolitics be the catalyst for a correction? things are going into gaza. rolling into gaza. canmore on how investors navigate these times, william joins us live. good morning. good to see you in the flesh rather than down the line. this bite movements on the benchmark,t mark --

still to come on the newshour: what the federal reserve bank says about the state of the u.s. economy; plus, could brooklyn hipsters help save the middle class? the challenges to brokering a cease-fire with hamas; efforts to bring new technology to neo-natal care in vietnam; and, the story of a burglary that uncovered f.b.i. surveillance efforts. >> ifill: it's a tricky time to be in charge of the nation's central bank. the federal reserve is winding down an unprecedented and potentially risky bond buying strategy designed to set the economy back on course. but every sign that the nation's prospects have finally turned the corner are offset by mitigating economic nbers. that was the backdrop for the fed chair's semi-annual trip to capitol hill today. >> although the economy continues to improve, the recovery is not yet complete. >> ifill: after just five months on the job, federal reserve chairwoman janet yellen was measured in her semi-annual assessment. >> important progress has been made in restoring the economy to health and in strengthening the financial system. yet too m

he served at the federal reserve bank of minneapolis as senior vice president and director of research and an associate comes at the federal open market committee, mantra policymaking body for the federal reserve system. that must have been fun. his research interests include banking and financial economics, monetary policy, monetary history of the economics of federalism and economics of education. his work on early childhood development has guarded numerous awards, including those from the george lucas educational foundation and the minnesota department of health both in 2007. he was also named 2005 minnesota of you but minnesota monthly magazine. art has been a visiting professor of economics at boston college, university of chicago and the university of minnesota. most recently he was an adjunct professor of economics in the mba program in china and university of minnesota's carlson school of management. he is past president of minnesota economic association, served not probably going to minnesota early learning foundation, greater twin cities united way, ready for k. early childho

bank. now that's up to be confused with the federal reserve system. it's the massachusetts cooperative central bank. i serve on the board of the federal home loan bank of boston where he is our chairman. by the way the federal home loan mortgage austin is cosponsoring the reception after this event, so i hope as many of you as possible will hang around for that. and andy, it's all yours. >> thank you, professor. you have been called worse. i know. exactly. it is a pleasure to be here this afternoon. we had a great distinguished panel. this afternoon to talk about issues affecting banks in the future. their biographies are in the packet. we are not going to spend a lot of time although we both served in the state government and we decided we are going to go back for a couple of weeks to settle old scores can issue a few subpoenas and then come back. >> absolutely. >> so, as you see he is the president and ceo of the former bank and knows what it's like to work in thing. pca is the manager of the financial analytics and is at the forefront of most bankin

recently bystudy the federal reserve bank of boston, which i highly recommend. -- primary author of that the literature that is coming disagrees with the inception that we had 2008-2009. it might be a good way of illustrating that. there was a lot of concern. the conventional wisdom was directly related to the housing crisis. the national bank allowed unscrupulous loans to be made. are they took the reed with the first agency going back to 2000. he began alerting them to watch out for standards and tighten up and on practices and look for loans being made that were not in the best interest of consumers. 2003-2004 on in regulation, they said the -- it hadanks cannot to make loans based on an analysis of the ability of the -- when you look at the data, the data shows that the overwhelming made outside the national banking system -- national banks had a slow percentage of those loans. some reports a 15% of the subprime loans were originated in national banks. those loans performed better. i think the proof -- there are other banking regulators. regulations in place. companies that originate

according to research by a senior economist at the federal reserve bank of boston, workers unemployed for 26 weeks experience a much larger negative income effect and have a lower earning even after 10 or 15 years than those workers that experience shorter duration of unemployment spells. many are forced to rack up debt on their credit cards just to meet basic living needs. in a recent gallup poll shows 20% of individuals who were unemployed for 12 months have been treated for depression. this is a serious blow, not just to your economic well-being, but to your identity, to your sense of worth, to your sense of being able to help your family and provide for your family. and these effects are long term and very, very serious. and this rate of depression is twice as high as those who have been unemployed for just a few weeks. so there is apparently a correlation. the impact is far-reaching. for individuals, for families, for the economy as a whole. and it undercuts, again, this notion that there is no cost, in fact there is a benefit to cutting these benefits. there is a long-term cost.

what i have here is a cease and dissift order from the federal reserve bank of the united states, fining the banco to $975,000 and ordering them to come up with a compliance program, running a company out of newark, new jersey, a number of immigrants, they fell they were using the money transmissions for a variety of other purposes they didn't have authority to and in violation of the international banking acts. the iba, at its known. one against, banco espirito run afoul of u.s. authorities and they have a branch in florida. a flar florida-chartered bank division and monitored by t fdic. no connection to the parent company, but we wanted people to know more about the relationship, the connection to the united states. here you can see what's happened to the portuguese ten-year yield over the last week or so. showing a big rise. suggesting concerns about the overall portuguese economy and whether or not the government will be able to pay back debt. show awe longer term chart, though. you would see in fact their yields of still remarkably low compared to the worst moments, were ut you can

along our colleagues wrote a letter to the president asking that he appoint someone to the federal reserve banking i would ask that b submitted to the record. that you are asked about this issue and you indicated your support that you would support having someone banking experience, community banking experience, on the fed board. >> yes i would. >> it is fair to say that your role has expanded. traditionally, you are doing with monetary policy, but through dodd frank, you have had an increased role in the regulatory side. correct? >> yes. >> we are familiar with your dual mandate of maximum unemployment. it is almost fair to say that there is an unwritten third mandate that would bring us to protecting the country from systemic risk? >> i think that is fair to say for the federal reserve. although, it is not something that applies specifically to monetary policy. we have a number of different tools and i interpret that as an unwritten third mandate with the federal reserve. >> talking about that, the monetary policy side and you have the regulatory side. side forod government us, we get concerned,

after all the four largest banks are 25% larger than they were in 2007. federal reserve vice chair said last week what about breaking up the large financial institutions? there is no simply actively breaking up the largest banks would be a very complex task with uncertain pay-off. it's troubling to me that the largest banks are so complex. one of our nation's top regulators can't understand these institutions, particularly since he worked at one of them. dr. fisher liked your views expressed in 2009 that break up the banks is more of a slogan. governor torillo's views, he praised a plan i worked on with the senator from delaware. my question is, do you agree with vice chair fisher or do you believe with governor torillo? >> i think one of the things vice chair fisher said that i certainly agree with with is that systemic risk in the financial system is not purely a question of too big to fail institutions. we shouldn't lull ourselves into thinking if we deal with ways to resolve or diminish the role of those institutions that systemic risk is not still a real phenomenon

been looking at this trend on the federal reserve and unfortunately there is an unmistakable trend away from having adequate representation from folks with community bank experience. and that same trend has been toward having the federal reserve board completely dominated by academics and folks with megabank and academic economist experience. this chart shows that trend. from 1936 until the present, it goes decade by decade. it's a little busy and we have this color coding here, but basically you can see this huge growth in the domination of this red category, of folks with pure academic/economic experience. and folks with community bank experience, which used to actually dominate the federal reserve board several decades ago, is now very, very limited. now look, there's nothing wrong with folks with academic experience but it shouldn't be so dominant on the federal reserve and we should have regular representation from community banks or community bank supervisors because that is a vital, vital part of our banking system. my amendment is, therefore, very simple. it would mandate that at least one member of the federal reserve board have that experienc

federal reserve the federal government. the federal reserve who is intrusively involved, it replaces the banking institutions, so the large institutions now are much less than the cost of funding. it is more than 20 -- on average, about 25 basis points, 22 was the smaller year, 25 the biggest, there is a definite advantage to being a large bank. >> mr. frank mentioned several times that he felt like the larger financial institutions actually didn't benefit from dodd-frank, that was onerous on them. and i wanted to quote some things that people that run some of these financial institutions, lloyd said that goldman sachs would be one of the biggest beneficiaries of this reform. jamie diamond even pointed out that while margins may come down the market share may increase due to a bigger moat. so several ceos here said that dodd-frank solved -- for example wells fargo said, i don't think that dodd-frank got it right or solved the issue. so the question is, we've gone through all the gymnastics of doing this, so -- >> well -- >> i didn't ask you a question, the bigger institutions have gotten larger and we've seen a lot of consolidation in

. >>> live to capitol hill now, where federal reserve chair janet yellen is expected to deliver the bank's semiannual monetary policy report to congress. this is her first time delivering the report since she took over as chair back in february. she will be testifying before the senate banking, housing and urban affairs committee. senator tim johnson is chair of the committee. he is coming through the door right now. senator mike crapo, ranking member. we do expect this to get under way in just a moment here live on cspan 3. >> i call this hearing to order. this morning, we welcome chair yellen back to the committee for testimony on the fed reserve semiannual monetary policy report to the congress. since chair yellen was last before the committee, bernard hall was confirmed by the senate to serve on the board. it is important that the fed maintain a full complement of governors to effectively carry out his monetary policy and regulatory functions. to that end, there are two remaining spots to be filled on the board and i hope for swift nomination of well-qualified candidates with expertise