andrew brimmer, former member of the federal reserve, why gold alarmed the fed. dr. r, in 1931, foreign investors were pulling their gold out of american banks. reserves were being depleted. what does that doto? what does e reserve do to try to combat it? for the banking system as a whole, if there's a sigficantreduc, from whatever source, it has to cut back on loanseduc, and the extension of credit unless it can ge some relief. only t federaleserve, acting as a central nk, can provide more relief. so, in931, as the goldve, flowed to europe and so on, that was a loss in reserves the centraba had to make it u the fed would not stand . itaiseits scouate orceanksase i the centraba the sult--foreiginvestors the earned more interest. itaiseits scouate orceanksase i and left their money in u. banks. th ended theoldrain. burag thdiscount rate had other, less fortunate, consequences. if the federal reserve raiseshe discount rate, that transmits a message banks and theoney market that it wants to be restrictive. for the economy as a whole, the result was disastrous. high inter

we're talking about the economy and the federal reserve. with us, the professor of international finance in business at george washington university. chief economist of moody's market group. and director of finance regulation studies at the cato institute. what is holding the economy back? >> well, lots of things. i think confidence is one of them. markets are still nervous. people are nervous. we're spending but very casually because we're afraid of what is happening down the road. we are recovering, and it is a very slow recovery. we talked about quantitative eyeasing. when interest rates are close to zero, it is the only way to stimulate economy since we've got a complete government freeze in congress. nothing is moving on that side. so ben bernanke is the only game in town right now in terms of moving the economy forward. >> i spoke to a number of business owners who say they simply can't get any bank loans. how do you respond? >> well, one of the reasons why is this the case is because washington has not been clear you as to the form o

you have to get rid of the federal reserve bank, and give it back to the federal treasury department. look at the debt. interested that the taxpayers pay the federal reserve bank? thought toey not bring back the glass deal backed? -- act? or -- therehave were a lot of good points. modern financial markets depend on integration between investment and retail -- enterprises. they can continue as long as there is good regulation. that regulation did collapse during the financial crisis. amenableanity -- very monetary policy actually lead to bubbles in our asset prices. there was some problems with regulation of about the questions whether or not you all away back to the glass deal in encouraging a regulation that in terms of candidates in both yellen and larry summers have and ofthat a restrained that activity is the right approach. people expect janet yellen to be very tough on regulation in the future. host: one of the more recent rushes has been for an audit of the federal reserve. anna writes in on twitter why is a request to audit the fed ignored? guest: that is a central feature the

of the federal reserve act. so the -- and this was churchill said about britain, the situation is hopeless but not serious. [laughter] >> next question over here. >> thank you. warren coates. mr. lehrman, you have done an excellent job, as have many others, of arguing that the if by yacht currency standard needs to be replaced with a hard anchor. could you elaborate what appears to be your preference for gold or any other single commodity which is bound to be less stable in value than, say, a basket? >> on the basket of commodities or basket of currencies or any kind of store-based monetary standard, i think it's sufficient for me to say that it would be as unstable as the fluctuating currencies themselves or the fluctuating commodities themselves. and there would be no reason to believe that the monetary standard would be stable based upon a fluctuateing basket of articles of wealth drawn from the market, the price of which must fluctuate based upon supply and demand, cost of production and those variations whi

what was the federal reserve doing?ed was supposed to engage in a countercyclical policy to counteract trends in the economy. but instead, it, at the beginning began to play a very neutral role. it just let the banking system slide very slowly into chaos. once again panic took hold. in 1930, 1,000 banks failed. in 1931, more than 2,000. in 1932, the american people looked to new leadership to lift the country out of its economic crisis. i propose to show that this leadership misunderstood the forces that were involved in the economic life of the country. it encouraged speculation and overproduction through its false economic policy. incumbent president herbert hoover was routed at the polls by franklin delano roosevelt. this great nation will endure as it has endured. first of all let me assert my firm belief that the only thing we have to fear is fear itself. in his inaugural address roosevelt pledged to establish strong banking safeguards. there must be a strict supervision of all banking and credit and investments. t

federal reserve policy is to do whatever we can to keep it on course.aken into account. >> which means the fed would stand ready to accommodate more perhaps increase quantitative easing. i asked him about that. he said it took 2011, it really slowed the economy. i went back to look at 2011, the growth was about 3%. the third quarter after the fight over the budget and the debt ceiling it was cut in half about 1.5%. there is some concern. gerri: he said that concerns us. peter reference this. this is the fed statement. we saw what happened, as the news broke we can cycle through some of these charts as we continue this, the market just skyrocket. an all-star panel to break down the big fed surprise on the tapering. managing director with pimco, wayne angell. we did the 10-year yield down slightly and the vix down. we have stuart friedman on the stock side. speaking about how the market really reacted and finally wayne angell, former federal reserve warboard governor, real insider. i will begin with you, did this surprise you they did not taper? they did

the federal reserve has said it will not reduce the amount of money it has been pumping into the u.s. economy. instead, it says it wants more evidence that signs of economic progress can be sustained. the news sent markets soaring. our economic reporter has this report. >> for years, the federal reserve has helped to keep global market awash with cash. one of these days, it wants to stop doing that. but investors who tuned in from around the world today found out the end of the cheap money area-- era was not starting quite yet. >> the committee concluded that the economic data do not yet provide sufficient confirmation of its baseline outlook through war and such a reduction. moreover, the committee has concerned that the rapid tightening could have the effect of slowing growth. >> a few careful words which produced a big wall street reaction. a main u.s. stock index hit an all-time high -- the main u.s. stock index hit an all-time high minutes after the statement was released. >> the equities skyrocketed. the announcement caused -- caught most of wall street flat- footed. we were exp

they manage for money than the federal reserve, $3.8 trillion. coming up, an exclusive interview with larry fink. rick receipt ereither is with m. jooishg o?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ paying ourselves to do what we love? ♪ don't tell mom. don't tell mom. don't tell mom! don't tell mom. okay. don't tell mom. don't tell mom. don't tell mom? yeah. the best stories you'll ever tell start with, don't tell." don't tell dad. start yours in the new santa fe. from hyundai. so you want to drive more safely? of smart. stop eating. take deep breaths. avoid bad weather. [ whispers ] get eight hours. ♪ [ shouts over music ] turn it down! and, of course, talk to farmers. hi. hi. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum ♪ . >>> we have bob pisani, maria

do you think that changes with inaction today from the federal reserve? i mean, you've been right on this. was it october of 2012 when you -- >> 20 11. >> when you came out and said, look, have you to be in equities. longevity is the story and you cannot own bonds and keep your money in money market funds instead of equities. what a call. what a call. congratulations. >> thank you. longevity issue still remain, so we need duration to meet our needs for retirement. duration will be met in equities. obviously, equities have rallied quite a bit since then and bonds have backed up. so, where is money being placed? when you have -- you could buy $49 billion of verizon bonds yielding in 10 to 30 -- >> what a great deal that is. >> money is available for the right price. you're seeing a -- we're seeing increased flows into equities, even from foreigners. we've had huge flows over the course of the year into equities.in -- indexing fra big powerful agencies overseas. we're still seeing a continued biased to equities worldwide. we're seeing a great rotation in bon

the nation's biggest bank is reportedly nearing a settlement with the federal reserve, the s.e.c. and the office of the comptroller of the currency over charges of shoddy supervision related to the so-called london wale fiasco and $6 billion in trading losses. >>> other banks, better news. goldman sachs, bank of america, citigroup will pass their midyear stress test proving to the federal reserve they have enough capital in reserve to withstand another severe economic downturn. all three of those finished higher. >>> another technology glitch which impacted trading on four major exchanges for awhile today. this time it was stock options exchanges that were forced to halt trading for about 20 minutes this afternoon following a breakdown in the data feed that supplies options price quotes to traders. >>> far from wall street just three miles from the white house, in fact, at least one gunman opened fire inside the washington navy yard. a heavily secured military installation leaving at least 13 dead including the shooter. eamon javers joins us with the latest on a mass murder so clo

federal reserve will keep pumping money into the economy. -- surprise decision keeps sent the dow jones to a record high. mexico is hit by two designating -- devastating storms. thousands of tourists are stranded. and germany has been cruising and economic fast lane. now voters will decide whether angela merkel deserves to get the credit. on come to our viewers public television in america and also around the globe. the federal reserve has said it will not reduce the amount of money it has been pumping into the u.s. economy. instead, it says it wants more evidence that signs of economic progress can be sustained. the news sent markets soaring. our economic reporter has this report. >> for years, the federal reserve has helped to keep global market awash with cash. one of these days, it wants to stop doing that. but investors who tuned in from around the world today found out the end of the cheap money area-- era was not starting quite yet. >> the committee concluded that the economic data do not yet provide sufficient confirmation of its baseline outlook through war and such a reduction

federal reserve has been one of the best performers. s. and p. five hundred for example is up twenty percent this year so you can kind of say that's the fed's hedge fund performance but even warren buffett who's there pushing ben bernanke he to stay on this fed chairman buffett said that the fed's eventual exit from its monthly bond buying program will carry unforeseen risks quote we are in an experiment which hasn't really been tried before he said adding that quote buying securities is usually easier than selling securities right i equate this with swallowing a porcupine but hey when you swallow a porcupine the quills are facing out and it goes down without a problem but then try ripping the porcupine out and the quills are now facing the opposite direction in a rip your entire sophos apart and this is the what awaits the chairman when he tries to sell his way out of his predicament but of course will never ever sells way out of his predicament because before that even becomes an issue they'll be a global crash which will precipitate a global c

the next chairman will inherit a $4 trillion federal reserve balance sheet. how and when do you pull that away to avoid risking inflation while trying to promote growth? that's the trillion dollar question the next fed chair will have to answer. >> ifill: let's talk about the fed chair for one more minute. today he passed on the chance to do anything or send a signal to anybody that this was -- there was a future, that we were coming out of a hole. that the administration keeps telling us we were out of. why? why? >> i think over the federal reserve they're not convinced this economy -- they think it's growing, they think there has been progress over the lasty, unemployment has come down. it's not enough. they're not sure it's a well-entrenched recovery but it's time to start pulling away the support struts at a particular time when inflation has not been a risk. ben bernanke and the federal reserve feel like let's give it another couple months and see what happens. >> ifill: what are the signs to watch for for us as lay people when we know that the fed will

some have an affinity toward the federal reserve, experience with the federal reserve, an understandingthe economy and how it works. and let me just mention, the federal reserve operations is not merely to help banks. i think that's a misconception that i'm hearing. it's also for job creation. the idea is that if you keep interest rates low, firms and companies will start investing in the economy and that will create jobs. that is the idea. now, the execution of the idea and the actual success of the idea i think is debatable. but the fed only has a couple of tools in its toolbox and what it has tried to do was keep a very low interest rate environment that will lead to job creation on wall street. . 20, the chair will postpone further proceedings today on motions to suspend the rules on which a recorded vote or the yeas and nays are ordered or on which the vote incurs objection under clause 6 of rule 20. recorded votes on postponed questions will be taken later. for what purpose does the gentleman from arizona seek recognition? >> mr. speaker, i move to suspend the rules and pass h.r.

head of the fed - a shake up in the race to be the next federal reserve chairman. find out why the lead candidate lawrence summers dropped out, and who the front runner is now. she's miss america. we'll tell you who the winner is, and the state that has won two years in a row. daff nina duvuluri avuluri nina davuluri mallory hagan bollywood >>> one of the most spectacular ship salvage operations in history is scheduled to begin any minute now. it's the raising of the sunken and grounded "costa cordia" cruise ship. you are looking at it live from the vessel that ran along the italian coast, killing 32 people. in a few minutes a team of 500 people will start trying to upright the massive boat that tipped over in giglio. officials say it's a process not tried on a ship this large. al jazeera report erp charlie angela tells us -- reporter charlie angela tells how they plan to raise it. >> 114,000 tonnes, the length of three football fields. it is an immense task to move the "costa cordia." after 20 months lying in the waters off giglio island, salvage workers will try

because of exit of larry summers for race for federal reserve chairman?t clearly proving all the skeptics wrong that the fed was driving this stock market rally. the fact that the market today is cheering on the exit of larry summers means they are looking forward to more stimulus for these markets. so this is the main focus down here. all the markets are affected across the board. by the way, says, fix is down today, showing fear level of investor has gone down as well. markets across across the board impacted by this. adam: fear may be down until wednesday when we get statement from fomc. what happened with the dollar, getting stronger or weaker? >> we're seeing a big reaction across the board in the dollar today. dollar prices down against all major currencies. the euro, it is down against the yen. it is down against all of its counterparts. you have to ask yourself why. you're talking about, larry summers out with who is seen as more hawkish, janet yellen, seen as more dovish. we're talking about devaluing our currency. adam, that is something that is

. >> following the quarterly meeting at the federal open market committee, federal reserve chairman ben bernanke talks to reporters about the fed decision to continue its asset purchase program. mr. mackey's term as fed chairman ends in january andthis briefing is one hour. >> good afternoon. the federal open market committee (fomc) concluded a two-day meeting earlier today. as you already know from our statement, the committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and to make no change in either its asset purchase program or its forward guidance regarding the federal funds rate target. i will discuss the rationales for our decision in a moment. economic growth has generally been proceeding at a moderate pace, with continued-albeit somewhat uneven-improvement in labor market conditions. of course, to say that the job market has improved does not imply that current conditions are satisfactory. notably, at 7.3 percent, the unemployment rate remains well above acceptable levels. long-term unemployment and underemployment remain high. and we h

a stunning move by the federal reserve. what it didn't do. i'll have a rare interview with a voting member of the open market committee at the fed. we'll find out what happened in that room. then five years after the financial crisis, lessons learned and one woman who was at the center of the storm. why she says more needs to be done. "on the money" begins right now. >> here's a look at what's news as we head into a new week. for months the markets had been watching and waiting for the week's fed meeting. the fed did what very few expected. nothing. it said it needed more evidence of an improving economy. and citing the continuing resolution in washington. the fed chose not to slow down the bond buying program of $85 million a month. with that the markets soared. the dow and the s&p 500 went to all time highs on wednesday and the nasdaq hit a 13-year high but it pulled back and took a breather on thursday. the markets fell on friday. jpmorgan chase may be hitting its own atm. it is paying a whopping $925 million fine to regulators for the so-

she is number two at the federal reserve there. if she does get nominated, it will be the first woman to ever hold the post. but two other candidates potentially, donald cone, a former number two at the federal reserve, and former treasure secretary tim geithner, who has always been the president's first choice to be federal reserve chair, but geithner has said no to him multiple times. >> chuck todd tonight, thank you. >>> tomorrow in italy, all that attempt one of the great feats of engineering in recent years when salvage crews try to move a disabled cruise ship more than three football fields long from its side to an upright position. the costa concordia" has been slumped on the coast 20 months ago. michelle kosinski is there tonight. michelle? >> reporter: hi, lester. this was the biggest cruise shipwreck ever. now it's the largest salvage operation of its kind. tonight crews are tightening 36 cables that will pull from the land around the bottom of the hull to the other side of the ship. just after dawn, they suspect to start

summers's withdrawal opens the possibility that the federal reserve could have a female chair for the first time. the current vice chair, janet yellin is among those being considered for the position and it ends an acrimonious battle between the opponents of the two candidates. >> ben bernanke leaves his position at the end of january. jeff. >> glor: bill plante at the white house, thank you. colorado it seems just can't catch a break, powerful floodwaters already have left hundreds of people stranded, and now today still more rain making the job of rescuers even more difficult. adriana diaz is in the flood zone tonight. >> >> reporter: like a the lot of residents in boulder, patricia birdsong was pumping water out of her house today. >> it was with such force it blew our basement window out and almost immediately it filled up with about five feet of water. >> the rain kept coming down, so much so rescue helicopterers couldn't get off the ground, but rescuers continued by land in trapped mountain side communities. the national guard has evacuated more than 2000 people, including krist

bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right stacy ever thanks much for being on this very special five hundred episode of the kaiser report five hundred more max. all right states over the second half a lot more. think you need to review economic downturns in the final months stay the. night and the rest because i think the case will be a prickly. dramas that can be ignored. stories others who used to know. phyllis's changing the world lights now. old pictures posts. on to and from around the globe. up to. fifty. welcome back to the kaiser report imax keyser with this five hundredth episode of markets finance and scandal time now to go to ecuador and speak with professor steve came who was on our fourth episode of the kaiser report so it's time to check in with professor kane welcome back to the kaiser report serve makes a lot of being able items are still going to grow the most popular show on the finance and growing around the planet professor king has been five ye

the federal reserve policy and quantitative easing program we've had remember is the largest we've had yes, the bank of england's policy going forward for monetary stimulus matters but more importantly, the federal reserve, with the dollar being the key reserve currency of the world, that so us matters a lot more. david: it sound like you felt a little misled. we talk a lot about the faith and currency of the united states government. i'm wondering whether your faith in the fed, vis-a-vis what they are planning to do, what they're telegraphing they are going to do has been harmed by what happened today? >> sure. obviously we're a money manager. so we have to look at what's best for our client portfolios. as i mentioned, we were positioning ourselves throughout most of the summer period for some kind of action to take place today. the start of this tapering program that has been the obsession of the market for quite a while now. as you know, august was a very ugly month for equity markets particularly in the u.s. in fact the worst month for equities more than a year. that for us was the

non-native because the bank of america the federal reserve bank just prints money and therefore it just creates a suit of wealth and income gap actually i'm going to skip ahead to a headline i have there because you mention the derivatives use of derivatives as a what form of wealth confiscation and wealth transfer schemes the typical american family makes less than it did in one thousand nine hundred nine in one thousand nine hundred ninety median american household me fifty one thousand six hundred eighty one dollars in current terms that means that twenty four years ago middle class american family was making more than a middle class family was making more than a year ago which is fifty one thousand one hundred seven now if you look at the chart you can see the past twenty five years that it rues under median income rose under clinton but then what happened at the end of clinton administration max we had the repeal of glass steagall and we had the commodities futures trading act which enabled derivatives to go global they had the reclassification of derivatives as gambling instrument

bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right days are over thanks much for being on this very special five hundred episode of the kaiser report five hundred more max. all right states over the second half a lot more. probable war is the most complex. all of us are still locked up. in the phenomenon of friendly fire probably extends back to the invention of gunpowder. just killed a bunch of people you know don't know what they're up their relatives there are of us people. right now reading. this some of that shoots my brother in the leg not intentional because of it because it was night times four in the morning even the best given the mesh shoulders. are going to make mistakes this is this whole idea of brotherhood and author and camaraderie in this sense it was in this context it has absolutely no place. to speak your language. will programs and documentaries in arabic it's all here on. reporting from the world talks about six fifty r.p.m. interviews intriguing stori

bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right stacy ever thanks much for being on this very special five hundred episode of the kaiser report five hundred more max. all right states over the second half a lot more. but we're going to do it if you did you know the price is the only industry specifically mentioned in the constitution and. that's because a free and open press is critical to our democracy shrek numbers. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our proximity we've been hijacked right handful of transnational corporations that will profit by destroying what our founding fathers one school class i'm talking mark and on this show we reveal the big picture of what's actually going on in the world we go beyond identifying. rational debate and real discussion critical issues facing define ready to join the movement and welcome to. the media leave us so we leave the people. rather see the security. f

. >>> and a big day on wall street after a surprise from the federal reserve chairman even as the government faces another possible shutdown. [♪ music ] >> mexico is struggling with hits by back-to-back hurricanes. the second hurricanes manuel is now moving inward over central mexico. it has triggered massive landslides. some the of the images here, has left 58 people missing. the death toll from both hurricanes is up to 80, and there has been a large-scale evacuation. we have more from mexico city where evacuees from acapulco have been arriving. >> they've been bringing them in from acapulco to mexico city. they have been bringing thousands of people trapped in acapulco as the hurricane devastated the area. we've seen people walk through chest-high water. the mexican military is there conducting rescue operations, trying to understand the full extent of the disaster. we've seen two storms hitting mexico. manuel on the west coast and ingrid on the east coast. people dead and that death toll could still be rising. we're going to see military from mexico city continue to deploy into acapulco i

kevin, former federal reserve senior economist, ernie for the bank of new york fed.38 minutes away. this twitter ip work frenzy's sweeping through wall street. when it finally goes public, it's not going to be anywhere near as big as facebook, but you'd think in the twitterverse and how we're all talking about it that it's going to be huge for different reasons. which firms will get to join goldman sachs who's got the leadership position in getting a piece of the business? charlie gasparino has exclusive new details. he's running down here right now. he never walks, he runs. >>> and also, a surprise on the possible timing of the offer, and he was right on the timing. everybody else was wrong, charlie was right. >> and a&e's duck dynasty, bar none that guy on your screen, a member of the biggest reality show team hit in the history of cable tv. fox got an all-access pass for the duck dynasty money machine. discovery is the parent company, and we're going to tell you what we found be out about the duckers in just a few moments. ♪ ♪ weekdays are for rising to the challe

. >>> the federal reserve blinked and investors rejoiced. does the taper surprise raise new questions about the central bank and its role at the heart of our financial system? we'll ask former bush white house economic advisor glenn hubbard. liz: also the deals keep robbing in for groupon and the stock's been surging but it is the daily business a done deal in the long term? maybe not. coming up we're finding out how and whether groupon can stay relevant. david: you still use those groupon coupons. liz: no. david: i do every now and then that takes us to today's facebook question. we're asking what is the best daily deal site you use and why? of course there is a lot of competition for groupon. log on to facebook.com/afterthebell. tell us what you think. ♪ [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools

bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right stacy ever thanks much for being on this very special. five hundred episode of the kaiser report five hundred more max. all right states over the second half a whole lot more. told him a language as well but i will only react to situations i have read the reports. put the no i will leave them to the state department to comment on your minor point. to secure a car is on the docket no. thank you no more weasel words. when you made a direct question be prepared for a change when you punch be ready for a. pretty tough speech. down to freedom to cost. little. dramas that can't be ignored. stories others refuse to notice. places change lights never. sold picture focus a. lot. from around the globe. local. t.v. . play. and. play. they just leave the. economic ups and downs in the final months day the longer the deal and the rest look like it's going to be a single day every week because they claim the olympics. played right on the

it has to resubmit to the federal reserve its capital plans.ur stock buyback plans and your dividend plans are at risk here. you are having problems. at that time, the federal reserve said you can go ahead with your stock buyback, you have to resubmit by the end of september. if the fed rejects, they cannot do stop buybacks for the end of the year. this is a broad back drop. dennis: would you spend 18 billion or $20 billion on mere compliance, that is unproductive money. >> they are hiring 5000 workers to deal with regulatory and compliance issues. i guess you could say that the government really does create jobs in that sense. the capital plan, it does want to continue with the stop buybacks. it cut in half the stop buybacks. jpmorgan chase is saying, listen, jamie dimon said i am going to beef up compliance and regulatory controls at my bank. he said that explicitly. dennis: never mind that the inefficiencies are bringing on new people. we spent hundreds of billions of dollars to try to bail the banks out. >> citigroup executives telling me p

system, including a turn as president of the san francisco federal reserve bank and her counter role, vice chair of the fed board in washington dc. along the way she has gained high profile endorsers, including sheila bear. >> she's qualified with a great public image. i want someone that main streets that. >> when lawrence summers withdrew his name marcus reacted positively, believing he would have tightened the rain on the fed's stimulus policy more aggressive than janet yellen. >> some question whether janet yellen would be as daring if tested by crisis. >> given her background and history with the fed, she'd be less bold. at the end of the day i'm not sure it would be a bad thing. having a boring fed for a while would be good for the american public and the economy. >> janet yellen does not have a close relationship with president obama. some believe it could hurt her nomination chances. no one doubts her ability to build concensus at this juncture in the economy. >> tent towns are popping up - at what cost. we go to a west virginia city taking drastic measures to pay its pe

federal reserve are getting ready to scale back the stimulus program. the g-20 leaders used their joint declaration to say they will carefully tabulate and clearly communicate any changes in their monetary policies. the leaders of industrialized and emerging nations formed the g-20 as a forum to coordinate their policies and tackle economic problems, but this summit showed how easily their political differences can prevent them from working together. akihiro makoda, nhk world, st. petersburg. >> president obama came out of the conference room and gave his take on the chances of military intervention in syria. he admitted leaders are divided on the wisdom of any armed action without a u.n. security council resolution. he said he'll tell americans why he believes the u.s. must launch strikes. >> i intend to address the american people from the white house on tuesday. the kind of world we live in and our ability to deter this kind of outrageous behavior is going to depend on the decisions that we make in the days ahead. >> u.s. state department officials a

. >> eyeing tomorrow, that's what wall street and the federal reserve are doing to the august jobs report as the key to the question, when will the fed start to taper? >>> and the economics of alzheimer's, the race is on to find a real treatment for the disease. it could be a god send for patients and a wind fall for the company that finds it. we have this and more for thursday, september 5th. >>> good evening everyone. i'm susie gharib. >> i'm sue herrera in for tyler mathisen. the benchmark on the ten-year treasury mark touched the threshold of 3% for the first time since july of 2011, and with the yield edging higher, the month's long sale off today accelerated. that's because some stronger than expected economic data reinforced belief that the federal reserve policy makers may be closer to easing back on the bond buying stimulus plans. yield on the ten-year highest since july of 2011. >>> stocks inched higher getting help from strong economic reports, more of that in a minute, all pointing to an improving economy. volume was light because of the jewish holiday of rosh ha shan gnaw. th

bank just glad to hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence states ever thanks much for being on this very special five hundred episode of the kaiser report five hundred more max. all right states over the second half a lot more. on their way to and talk to the crew of the i can to make sure the face many challenges. here you have to look out for yourself crushing on to wrong trapped in pack ice in extreme conditions in a thing can happen antarctica always comes up with surprises you have to keep your eyes open because if there's always something going wrong the ship carries huge reserves of water food fuel as well as helicopters and people able to survive extreme conditions they're ready for anything even an apocalypse she's really an incredible ship calling all antarctica stations and this is academic a field of radio check please respond. interview. welcome back to the kaiser report imax kaiser with this five hundredth episode of markets finance and scandal so i'm out to go to ecuador and

ladies and gentlen it's my honor and deep privilege to introduce to you thchairman of the federal reserverd, dr. alan greenspan. schoumacher:to chaman alan greensp the rules had changed. he doubted whether inflation cod be adequately measured in the new econo using current techniques to trace price trends over time. when electricity was developed th was a new econo. when automobiles became prevalent that was a new economy. now we have a new economy that's electronic age. think it has contributed as those earli new economiecontributed, to an increase in productivity. there was a time when economists thought that when thunemployment rate got below 6% -- or 5 1/2 or 5, something like that -- that we would inevitably have inflation. we found out in the 1990s that with aery productive economy don't necessarily get inflation when unemployment drops. schoumacher: productivity was a key factor in keeping inflation down. but another factor wasthe globalization of business. the introduction of market forces frr trade, and widespread deregulion meant that international trade and investment played a

right now, the federal reserve is purchasing about $80 billion a month in assets. so we're really looking at something like a 25% reduction in the tapering program in terms of volume. so we will see what the said that the sabin the rates setting meetings ended on wednesday. > yester day, we had a big rally in the market as larry summers withdrew his name from contention as the next fed chair. do you expect there will be fallout today in the market? > > i think it would be a little bit of fallout in the market. although, here is where the draw for nomination for the chair is not all that surprising given the problems that he had at harvard. so, it would of been an uphill battle for sumner's in terms of nomination or being confirm as the head of the federal reserve's. the next likely candidate is janet yelling. she was the second canada and that people were looking at and her supporters were very vocal in public and on the heel. and i think what actually has happened is this is cost president obama to begin actually looking even beyond the current board of governors.

well i think that there have been but the federal reserve has been very creative in going around all of the old rules to for for example buy directly these mortgage backed securities which they never did before and you know in my university when i learned of monetary theory the professor said you know the federal reserve could take an airplane fly over big cities drop the money on masses of people and introduce the money supply that way and when we finished laughing he leaned across the podium and he said no no those are real alternative ways by creating jobs by creating all kinds of stimulus programs that you can introduce money into the economy if we want to try something new if we cared about the millions of people without jobs and homes that would be the direction we would ought to ought to go in and a new chair ought to be told to explore precisely those things and to put the pressure on congress to pass the enabling legislation absolutely brilliant richard well thank you so much for being with us my pleasure coming out last week parts of the city of detroit lost power for more

dagen: focusing on the federal reserve before we go, we had a federal reserve in transition not justn terms of monetary policy but who is going to run it. liz macdonald will be on later talking about larry summers and how people are not getting on board with the potential that he is nominated to take over the central bank. does that put us in even riskier scenario because you have the head of the fed changing? >> the uncertainty about the process is more of a problem then who was the next guy or gal who was going to do it. if you got larry summers in the chair we would get used to and figure it out. if it was janet yellen we would get used to it and figure it out. who are we going to nominate and one day it is one person and one day another, does the president have the political capital, all those questions which create uncertainty, figuring things out and getting things moving is what we need. dagen: how worried about you are the serious situation? >> johnny 1 note, and certainty. are we going to? are we not going to? what is it going to look like? will congress back a president? ki