i thought that was fanciful both because the surplus of that magnitude ftion not going to materialize and monetary policy but he seems to be -- that this was a concern that we might pay off the debt and then where would fed be when they needed to do open market or operation. >> had that concern and he had also floated the concern that -- you know if we pay off the debt then government could continue what would it do? perhaps have to start buying corporate equity and government intervention, and the private market so he raised all sense of concern. but they were threat because a big national debt and you know, as one member of the senate said to him, you know mr. chairman, if we reached point when there's no national debt then there's a discussion it be. but for right now -- >> that's what i thought. wasn't leakily to happen. so say a word about what most of the audience is probably forgotten. the great moment of y2k. >> yes, in 1999, there was considerable fear that when computer systems reset from 199902,000 this would be a software glitch and short cut when computer memory was expen

i thought that was fanciful both because the surplus of that magnitude ftion not going to materialize and monetary policy but he seems to be -- that this was a concern that we might pay off the debt and then where would fed be when they needed to do open market or operation. rehad that concern and he also floated the concern that, you know, if we paid off the debt, then the government continued and what would it do, would havg to start buying and governmentti intervention and the private market and raised concerns but, you know, as one member of the senate said to him, mr. chairman , for right now -- [laughter] >> wasn't likely to happen. the great moment of y2k. >> in 1999 there was fear that when computer systems reset for 1999 to 00 there would be a glitch and a moment where computer memory was expensive and scarce. >> they put in 19 -- they didn't put enough. >> and the feds got ready for this and were concerned that people wouldn't get money out of an atm. all kinds of unforeseen computer infrastructure on which the financial payment system depends might freeze up. so the fed, yo

rate so in the modern system including derivative were created in this period when alan greenspan ftion at or near ?efer all of the debates so a key question why do more about derivative especially since they did show sign of being dangerous because they have close trouble in 1995 and debating in late 1990s about maybe trying to tame them pushing them from -- over countinger transaction by natural swap between one bank and one company, and pushing them on to an exchange to be better monitored. >> at least you can conceal a and why didn't more of that happen so there was a famous moment when the of the comomty future trading commission was born afnghted it that they should be better regulated and should be shot down by all of the other senior regulateing in town including alan greenspan. i think when you look at that story why didn't they do more? a couple of points that they approached this with the sort of litigated mentality. he was a tough person. she was not a good politician in term was building alliances around town and so she sort of blew it demanding action as opposed to -- per