martin feldstein is also here, he is a professor of economics at harvard and formerly president reagan's chief economic advisor. i am pleased to have all of them here. so here we are. we have a president who says i'm to the going to negotiate, even with respect to the debt ceiling, especially with respect to the debt ceiling. we have a speaker of the house saying i'm to the

melissa: marti feldstein, thank you so much for coming on. we appreciate. >> good being with you again. melissa: next on "money," mark cuban finally gets his day in court. it is one big, ugly fight. the billionaire entrepreneur taking sec head on over insider trading charges. it is all the word on wall street. we have the inside scoop. >>> do not back down. israel's benjamin netanyahu tells president obama that no slack can be given over iran's nuclear program. wel tell you why it could break the bank for u.s. involvement in the middle east. more "money" coming up. melissa: mark cuban is known for his bold and brash personality but in the boardroom and on the basketball court but today he is in a different court. the billionaire entrepreneur is going head-to-head with the sec over insider trading charges t all goes back to a phone call way back in 2004. the feds say the call saved cuban 3/4 of a million bucks in trading losses. they first came after him in 2008 t has been a high-profile back and forth the last five years. cuban says now it is

monthly fine-tuning of monetary policy created havoc in the economy as martin feldstein explains.hink the 1970s, in particular, was a decade in which monetary policy pursued the wrong goals, was based on the wrong premises, and got us into terrible trouble. it was money's excessive growth more than anything else, that brought us to the double-digit inflation rates. in the seventies, fiscal policy was not much better. by the time congress got around to changing fiscal policy, a tax cut or an increase in spending it was too late. instead of dampening the business cycle they were increasing the fluctuations in unemployment and inflation. by the decade's end, fine-tuning the economy was a thoroughly discredited idea. when paul volcker initiated policy designed to permanently quell inflation, he made much of the fact that the policy was for the duration. when ronald reagan embarked on the most expansive fiscal policy in history he locked it in place three years in advance. 1983 and 1984 were years of growth in the american economy, but, as the economy grew the budg deficit grew even fa

rose: it is day 7 of the government shutdown and we talk to austin gulsby, peter orogue an martin feldstein about where we are and where we might be going. >> my wife, your carolina connection, will you appreciate, my wife refuse, she has use asked me why dow watch the basketball game. it's always going to come down to the last 30 seconds and it will take them an hour to shoot the free throws to figure out who the winner is. i say that's happening here. we're going to come to the last minute. i actually think that the most likely thing to happen is they just punt it for six weeks and they say well, you know, maybe we'll start negotiating. we're not going to do anything. so we'll just put it off so we can all look forward to just doing this again in a month or two months. >> rose: we con yud with yair lapid, the finance minister of israel. we talk about foreign policy and domestic policy. >> we will within all the wheeling and dealing of creating the coalition, there are hundreds of rumors flying by am people saying that does he want this does he want that, does he want that. and that was co

martin feldstein says the debt ceiling is a dangerous thing to play with. >> right. >> so this -- these are the voices that have been driving this crisis. and it should end. and to the extent there's an implication in what we heard from house republican leaders today that they are coming to see the light, that we need to end this crisis, this manufactured crisis, that would be a good thing. but the president's position that he's not going to pay ransom to the tea party so that congress can do its job remains what it was. >> obama care's not part of the demand, then you -- are you saying then the president can negotiate? >> jim, i'm not sure how you can reach that conclusion. the presidents not going to pay ransom. i'm saying this is how we got here. this is the logic that led to the shutdown of the government and the logic that led to us getting close to the point beyond which the treasury can no longer use borrowing authority. and it's time for rational -- a rational approach to be taken by leaders in congress towards these serious challenges, because they're -- we should -- as the pre

for instance, martin feldstein has said "there really is no need for a default on the debt, even if thedebt ceiling is not raised later this month. the u.s. government collects enough in taxes each month to finance interest on the debt." again, i'm not trying to trivialize this scenario, but i do think it is important to talk precisely about we are -- about what we are talking about. i don't think it is accurate to talk about if we default next week. i don't think there's any need, any chance of defaulting next week. does anybody disagree with that, defaulting on payments on government securities? >> senator, i agree with you. however, let me tell you what is happening at the street level. the confidence of our buyers and sellers is waning very rapidly. we have transactions canceling right now. we have people not being able to get loans. we can't get beyond where we are at. it is going to go backwards very fast. yes, you could probably mechanically do all of this, but the confidence of the american people is going to be really in the toilet. >> mr. thomas, let me pick up on another comm

for instance, martin feldstein has said "there really is no need for a default on the debt, even if the debt ceiling is not raised later this month. the u.s. government collects enough in taxes each month to finance interest on the debt." again, i'm not trying to trivialize this scenario, but i do think it is important to talk precisely about we are -- about what we are talking about. i don't think it is accurate to talk about if we default next week. i don't think there's any need, any chance of defaulting next week. does anybody disagree with that, defaulting on payments on government securities? >> senator, i agree with you. however, let me tell you what is happening at the street level. the confidence of our buyers and sellers is waning very rapidly. we have transactions canceling right now. we have people not being able to get loans. we can't get beyond where we are at. it is going to go backwards very fast. yes, you could probably mechanically do all of this, but the confidence of the american people is going to be really in the toilet. i'm sorry. >> mr. thomas, let me pick up on