journal the blog that i write for our chief editor robert wenzel was invited to the federal reserve bank of new york today the heart of the lion's den and he gave a speech on austrian business cycle theory and he was able to expound some of these points that's quite interesting you invited him. actually an economist there i think his name is richard peach might have the name slightly wrong but peach had had been going around and talking about that there was no housing bubble in two thousand and four mr wenzel pointed out his error in a polite letter to him and eventually they had a dialogue recently mr winslow pointed out everything i said came true and i called it in real time here in my blog entries isn't about time you took me to lunch and so he was invited down to the new york fed to their credit and delivered that speech today that's pretty interesting to show that hey look you can document these booms and busts and predict them unlike what the why is guys that the new york fed may believe we're going to keep you want we're going to go to a quick break we will have more with you in a few minute

they need to repay a $9 billion loan from the federal reserve bank of new york. if they get anything beyond that, well, it all goes back to them in addition to the $5.5 billion, i should say. that's one reason why because the market is improved and investors are looking for the higher yield that many of these instruments contain. >> is there any insight as to how this would happen? via private placements, some sort of auction? >> great question. reverse inquiry. taking the complexity of those involved, they're going to wait for dealers to approach them and say here's a group of assets we want you to bid on. there will be bids and then they will choose one of those bids. doing it through so-called reverse inquiry which worked quite successfully in maiden lane ii. another one of those vehicles that contained less complex securities. >> kudos to the new york fed. they have an excellent chart and graphic. i'm shocked by how good it is. shows the balances coming down, which is obviously good news for the taxpayer, david. when we look inside these things without gettin

thirty's that are owing money and need to pay these loans to to stix just released by the federal reserve bank of new york say that americans aged sixty and older still owe thirty six billion dollars in student loans these are city senior citizens ok and it also seems that some parents are saying and growing on the debt and lining up for it just like these competitive kindergarten parents take a look. as you normally would see can't we just like would like try to you try to get deals there but the deal year is just trying to get into we could be good because going to go. so they're camping out for their kids to get it to kindergarten and you've heard how competitive parents are in new york i know particularly well now parents are getting student loans for their children as young as according to smart money which is one of the largest providers for loans for k. through twelve education they're on track to finance twenty million dollars in loans for the two thousand and twelve two thousand and thirteen school year and just to give you context of how that compares in march the dollar amount of these loans wa

i'd like to bring your attention to some central bank news you may actually be more receptive to because last month the federal reserve bank of new york and by did some of its critics including our guest to as he puts it unburdened themselves of their criticisms now the text of his remarks were published in the march twenty third issue of grants and it is definitely worth reading for those of you who are wise enough to subscribe now there are a number of points that mr grant makes in his remarks that we have repeated on this show ad nauseum ourselves accountability for bank executives a functioning price mechanism sound money you know capitalism but the editor of grant's interest rate observer also makes another very interesting proposal with respect to what he would do if by some act of market revenge he were made chairman of the monetary priesthood he would as he puts it commission staff and ceremonially open the fed's first office of unintended consequences now this would be his resists dong because economics after all is a social science and as such is beholden to the unintended consequences brought about by the actions of the obs

according to the report of the federal reserve bank of new york, 27% of the 37 million borrowers haveast-due balances of 30 days or more. it looks like the early days of the subprime crisis. and student loan bills are not limited with the college graduates themselves. with parents shouldering college oh costs entire families may face bankruptcy. higher education >>this is outrageous! [[vo]]cenk uygur calls out the mainstream media. >>the rest of the media seems like, "ho-hum, no big deal." we've have no choice, we've lost our democracy here. just refreshing to hear. no other television show does that. we're keeping it real. it takes people with real knowledge to build and maintain a race car. polymers, hydo-carbons, thermal plastics, math and science? you bet it is. many kids don't understand how important these subjects can be that's why time warner cable developed connect a million minds. to introduce kids in our communities to the opportunities that inspire them to develop these important skills. how can my car go faster? maybe your child will figure it out. find out more at connec

according to a report by federal reserve bank of new york, consumer credit in past due student knownsly 20% of that debt were held by senior citizens 50 or older. take a look at this pie chart. 12% of the delinquents are in the age group of 50 to 59. nearly 5% came from 60 or older. a story was wrote in "the washington post". those numbers are alarming. americans 06 and older owe billions in loans because they kept passing it on and not paying back regularly? tell us what's going on? >> there are a numb bother f things driving this trend. one thing you're finding, because of this recession many older americans are being force god back to school in order to remain competitive in the labor market. that's one thing. another thing, because tuition rates are rising you're finding parents and even grand parents are cosigning with their kids in order to help them pay for the loans and finally what you're seeing is student loans are one type of debt that actually cannot be discharged in bankruptcy. so even though you may be able to get wrrid of your mortgage ln and other debts, it sticks with

according to the federal reserve bank of new york, total student loan debt now stands at $870 billion first time tops credit card debt and auto loan debt in this country. the situation could soon get dramatically worse unless congress acts the interest rate on student loans will double on july 1st to 6.8%. during visits this week to three college campuses, president obama will focus on that issue which is now at the center of the latest partisan battle in washington. here's the president's latest weekly address. take a listen. >> we cannot just cut our way to prosperity. making it harder for young people to afford higher education and earn their degrees is nothing more than cutting our own future off at the knees. >> joining me now, u.s. news and world report chief business correspondent rick newman. all of this comes with a new a.p. survey showing this year's college class facing dim job prospects as well. studies show that 54% of bachelor degree holders last year are either without a job all together or if they do have one, they are underemployed. does this make the issue even more

bank has a very short life span after it loses its liquidity. >> he made an emergency call to tim geithner, the president of the new york federal reserve. >> geithnerthat it was a vulnerable suation he sa somhingike "beevee, i'll be on it." and that was really the phone call. >> geithner's was bear's last chance. >> tim geithner is at the federal reserve bank of new york. it's the epicenter of the financial system. he is supposed to be the fed's front line general, field marshal in the financial markets >> he's 47 years old, looks like he's about 32. extremely smart, extremely aware of the stuff. very discreet, controlled. >> geithner realized he needed to know how bad bear's books looked. he dispatched a swat team of investigators of the federal reserve to bear's headquarters. >> tim geithner is frantically involved in trying to figure out what's going to happen if bear melts down and how you need to prevent it from going into freefall and dragging down the rest of the financial sector with it. >> by midnight, by 1:00, 2:00 in the morning everybody and their mother has teams at bear. morgan, the fed, the s.e.c. and they find out bear is stuffed to

most owe more than the 4,200 according to the federal reserve bank of new york, about 23,000 actuallye, what that would mean is paying a5700 more over 12 years and close to 14,000 more and they say the average is 54,000. at that level interest rate jacks up lifetime costs by 13 and $32,000 if the rate doubles. if you end up owing more than $200 thu and there is about 200 thousand people that do have that right now, the higher interest rate is equal to a premium of close to $120,000 more if that were to happen. fixed loan rates have not always been at today's low. 2008, it was 6.8%. because of 2007 law as you see it began to drop to 6%. then to 5.6 and down to 3.4 today, but it could be heading back on up to 6.8 as we were discussing. the result, the total amount of all debt taken on by students every year more than doubled in the last decade. look at this red line. the same time when we look at the average each student borrowed pretty much steady. that stayed the same. if the total is rising, where is all of that money going? chris? more students are getting an education and they're u

united states serving as treasury he served as the president and chief executive of the federal reserve bank of new york. in that capacity he served as a vice chairman and a permanent member of the federal market committee, the group responsible for monetary policy. secretary geithner has a long career at the treasury, but also worked at the world bank -- sorry, at the imf directing the policy development and review d.. so he has very strong both international and national experience, bringing it together. secretary geithner studied international economics and east asian studies at dartmouth and ice. the event will -- sais. he writes a twice a week foreign affairs column and contributes to a blog. david has also written eight spy novels, the most famous of which is probably "body of lies" which in 2008 was made into a hollywood film starring leonardotyty cap ri pri owe and- dicaprio and russell crowe. he became foreign editor in '93, he began writing his column in '98 and continued even during his three years as executive director of the international herald tribune in paris. ignatius worked at "the wal

night, september 12, 2008, after the markets closed, the heads of wall street's largest firms were summoned to the federal reserve bank in new york this weekend would be a critical moment in the story of the meltdown. >> about 4:00 or 5:00, the various officials from the federal reserve started phoning the bank chiefs, cell phones started going off, and they said, "you need to be down here at 6:00. we want to talk to you." >> i got a phone call about 5:00 saying. "be at the fed at 6:00" that evening. i was in merrill lynch's midtown facilities. and i live in westchester, so i was trying to get out of the city early, because the traffic is always bad on a friday night. i went by myself. and, for the most part, the ceos of the large investment banks and commercial banks were all there by themselves. >> so everybody converged. at that point, it was just the ceos of the main houses and very senior advisors. >> you had about a dozen different ceos there, and you have in there tim, from the fed. you have henry paulson as the treasury secretary. >> narrator: paulson delivered the message: lehman was in a death spiral, and there would be

these include the sec, cftc, si boc, finra and federal reserve bank of new york and financial services, u.k. financial-services regulator. keeping regulators informed was one of my top priorities. that includes spending. most -- october 30th, working with regulators to agree on terms the firm would be sold and accounts transferred to a buyer. it was shortly after concluding that process and likely before midnight october 30th that i learned the firm was unable to reconcile the fund accounts. i was shocked. i believe the firm had in place a full compliance system operated by highly qualified professionals who work controlling and securing customer funds. as a last effort senior people from potential buyer, people from finance and operation teams to provide a fresh set of eyes to help identify the reconciliation errors. once the inability to reconcile the accounts became clear, and 2:00 a.m. we know the price of regulators. later that morning after several hours of discussion with regulators who made the bankruptcy filing. sins that filing have been assisting in complex efforts -- global

right now for what that means, this chart, which is from figure pross deuced by the federal reserve bank of new york, shows again vividly the challenge that we face as a nation, that student loan debt, as i mentioned earlier, exceeds credit card debt, exceeds car loan debt. for many families, particularly if you're talking about going to a four-year, private college, it literally is like buying a house, to try and figure out ways to pay for college. so if we do not act, if we do not lock in that lower rate of 3.4% between now and july 1, the 7 -day deadline we face literally as we stand here today, we will in fact compound that bar graph which shows again rising debt levels for students who are trying to pay for college. the stakes could not be bigger for our nation. back in the 1980's, america was number one in terms of graduation rates across the world. today, the national college board, which track this is data, and has been doing it for decades, reports to us that the u.s. now ranks 12th in the world in terms of graduation rates. that is a dynamic for mediocrity, that's a dynamic that says our c

geithner served as chief executive of the reserve bank of new york of the federal market committee. the group responsible for monetary policy. secretary geithner had a long career at the treasury but also worked at the world bank, direct -- sorry, at the imf directing policy development and reviewed department. he has very strong both international and national experience bringing it together. secretary geithner studied international economics at dartmouth, the event will take place in the form of a conversation with david ignatius from "the washington post." whom many of you i'm sure, maybe all of you know writes twice a week for an affairs column. david has also written eight spinals. the most famous of which is probably "body of lies" in 2008 was made into a hollywood film starring leonardo dicaprio and russell crow. i told him before the meeting that i was really very jealous of that. ignatius joined the "post" in 1986. in 1990 became foreign editor. 1993 assistant editor for business news began writing his column in '98 and continued even during this years as executive director

geithner served as the president and chief executive of the federal reserve bank of new york. in that capacity, he served as the vice-chairman and a permanent member of the federal open market committee, the group responsible for monetary policy. secretary geithner had a long career at the treasury but also worked at the imf, directing the policy development and review department, so he has very strong both international and national experience, bringing it together. secretary geithner studied international economics and east asian studies at dartmouth and sais. the event will take place in the form of a conversation with david ignatius from the washington post whom many of you, i'm sure, or maybe all of you know; he writes twice a week for an affairs column and contributes to post-partisan blog. david has also written eight spy novels, the most famous of which is probably body of lies, which in 2008 was made into a hollywood film starring leonardo dicaprio and russell crowe. i told him before the meeting that i was really very jealous of that. ignatius joined the post in 1986.

new york federal reserve bank president bill dudley. bill dudley told a business group today that it's too soon to say the u.s. economy was out of the woods. meanwhile, new claims for jobless benefits had their biggest weekly jump in months rising by 13,000 to 380,000, signaling the jobs recovery is still fragile. both reinforced the fed's current policy stance, sending stocks sharply higher. the dow rose 181 points, the nasdaq added 39 and the s&p up 18. >> tom: not since the early days of the housing collapse have there been so few foreclosures. but that doesn't mean the crisis is over. foreclosures in the first quarter fell 16% from a year ago. almost 580,000 homes and condominiums faced foreclosure filings. that's the lowest since late 2007. the top states for foreclosures: california, florida and illinois. together, those three made up more than 40% off all foreclosures in the first quarter. there is more evidence today that federal programs aimed at helping homeowners avoid foreclosure are not living up to their promises. government auditors say a program funded with money left over from the tarp bailout has failed to reac

federal reserve's two-day meeting. the central bank will update its take on the economy's health. >>> walmart could be a prime short-selling target in the wake of a new york times report of widespread bribery and an alleged cover-up at its mexico unit. this morning asian markets were lowered despite the manufacturing data and successful imf fund-raising. markets were rattled by instakt in denmark and first round elections in france favoring president sarkozy's socialist rival. >>> u.s. necessarily is buying pfizer's infant nutrition business for under $12 billion. >>> beam incorporated is buying pinnacle vodka for under $600 million. >>> gas prices dropped for the first time in december falling 5 cents average 3g$.91 for a gallon of regular. >>> the first ever nonstop flight between asia and boston arrives sunday at boston's logan airport. they expect round trip flights on its 787 dreamliner will save passengers six hours of travel time. would be nice. >>> coming up, the penguins bite the dust, the bruins stay alive, and the knicks ground the hawks. >>> plus after a sudden act of violence, you might expect to see in a hockey game, a los angeles laker face

of grey duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. . >>> new york federal reserve bankaking comments this morning. >> two vice chairs actually, dudley, the vice chair of the fmoc, and yellen last night, saying the reports on the u.s. economy has been a bit more upbeat and notes even housing starts have firmed, though they remain depressed. it's too soon, he said, to conclude the economy is out of the woods. he notes the march labor market may have been affected by mild weather and recent economic data is not strong enough to make a big dent in economic slack. fourth quarter growth was boosted by inventory accumulation and says quarters that follow that often ease off. at least he thinks that's what's happening now. gdp will expand at a rate of 2 1/4% and recent growth rate ares barely keeping up with potential so he doesn't expect too much dent to be brought into the unemployment rate, which he calls still unacceptably high, noting the productivity has slumped. he mentioned high gasoline prices, weakness in the housing sector and fiscal drag they expect to come at the e

federal reserve's two-day meeting. the big changes are expected, but the central bank will update its take on the economy's health. >>> walmart could be a prime short-selling target in the wake of a "new york times" report of widespread bribery and an alleged cover-up at its mexico unit. >>> this morning asian markets were lowered, despite china's upbeat manufacturing data and successful imf fund-raising. markets were rattled by financial instability in denmark and first round elections in france, favoring president sarkozy's socialist rival. >>> on the deal front, swiss food group nestle is buying u.s. drugmaker pfizer's infant nutrition business for under $12 billion. >>> beam incorporated is buying pinnacle vodka for about $600 million. >>> gas prices dropped for the first time since december, falling 5 cents over the past two weeks to an average $3.91 for a gallon of regular. >>> and some good news for globetrotters. the first-ever nonstop flight between asia and boston arrived sunday at boston's logan airport. japan airlines expects round trip flights on its brand-new boeing 787 dreamliner will save passengers six hours of travel time. would be nice. >>> well, coming up, the penguins