headlines here about who is right markets insight phony q e piece masks rising risk of instability so gillian tett asks are the markets going mad between one thousand nine hundred seven and two thousand and one the level of unemployment in the euro zone was always inversely correlated to the stocks index however as you can see from the start since two thousand and eleven the eurozone jobless rate has jumped from ten to twelve percent even as the stock's has risen ten percent so you can see from that chart that they've gone in separate directions the light blue line is the unemployment number inverted in the red line is the stock equities and x. well the economy has entered the bermuda triangle into the bermuda triangle famously were many planes of disappeared well we know anecdotally about the bermuda triangle is that when the planes fly in there the dials do you instruments start spinning wildly in opposite directions and the pilots get disoriented and they disappear from the face of the earth now here we have an economy run similarly where the dials and gauges that are used to determine where th

kleptocrats who were involved in the scandals leading up to this nightmare to begin with citigroup and gillian tett had looked at the earnings seem to have no relevance whatsoever whether on the company earnings or the labor earnings on the stock market they've gone a separate disk directions in the last two years they've suddenly broken decades long patterns so then she looks at debt so too with credit spreads leverage rates in the past two decades spreads on investment grade companies have always widened when corporate debt levels rose but since two thousand and eleven the leverage ratio of euro zone companies has risen from one point four times to one point seven times all spreads have declined from around two hundred ten basis points towards one hundred twenty basis points a similar pattern is that work at the u.s. this is classic bubble propaganda bubble thinking if you look at the bubble the housing bubble of the americas and the two thousand and five two thousand and six period people were convinced that housing could only go up they're not making any more land you can possibly go down we've

i'm joined by two very smart economic thinkers and writers gillian tett and rana foroohar. a column where you said everyone is looking at the numbers from the economic u.s. and said they're bad. you found a silver lining. >> yes, absolutely. the government spending has been down. we're feeling the effects of the sequester and if you look at the 2% economy, which we've been in now for a couple of years, that's in part due to the fact that the public sector has cut back so much. if you strip the public sector out, the growth numbers go up above 3%. about 3.1% and most of that is down to the consumer. american consumers have done a really good job of balancing their budgets, getting out of credit card debt, managing their own personal finances and now dip a little bit farther into savings than they used to and that's what they did last quarter. >> she's highlighting one of the great unsung stories of the last year, which is that consumers have actually managed to adjust to the new normal, if you like. credit card debt, which was such a key factor in creating pains in american

. >> gillian tett, congratulations on the 125th anniversary of the "ft"?lutely. >> you've been lighting new york city up pink. we see the empire state building there, beautiful. >> absolutely. we've celebrated our 125th anniversary. at a time of a lot of change in the media world, it's an anniversary that we're pretty proud of. and we're looking forward to another 125 years. >> cheers to that. here's to more print. >> thank you. >>> and president obama trying to inspire thousands of buckeyes at ohio state university this weekend at the commencement on sunday. telling the graduates that they can be a positive force for the nation's future. hear, hear. >> you've been tested, and you've been tempered. by events that your parents and i never imagined we'd see when we sat where you sit. and yet, despite all this, or perhaps because of it, yours has become a generation possessed with that most american of ideas -- that people who love their country can change it for the better. ch fry. yes she is, yes she is. [ bop ] [ male announcer ] could've had a v8. 100% ve

economy, tepid growth and europe and the slowing chinese economy, gillian tett is an assistant editor and columnist, she was previously u.s. managing editor, martin dickson is the current u.s. managing editor and been with the paper since 19 1976. i am very pleased to have all of them here at this table on this very auspicious birthday, welcome. great to see all of you. 125 years, and what is represented here is how many years did i tell you when we sat down. >> well, more than 18 years, we don't look 18 but that is the fact collectively and i have done 28. >> >> rose: how did this begin? >> well, 1888, a man called mr. marks, who was originally, he set up a newspaper called financial news in 1884, 1884, 1888 next came the financial times and these two battled it out until 1946, then they merged to form the modern financial times, and of course this newspaper was launched at the pinnacle of power of the city of london in the late 19th century. >> rose: to reflect on that power and cover that power? >> well, it was an international financial center still, it still is an international f

with us is shift editor and columnist for "the financial times" gillian tett.me and celebrating a birthday week. this week celebrating 125th anniversary. wow. >> absolutely. i mean, we are very proud of that. a time of great change in the media world. >> and turbulence. >> we have absolutely. we are here, we are proud and thriving. >> holding strong as a business? >> both today's activity with me and also copy of our original 1988. >> i want to see that! can i? >> right. >> 1988? >> 1888! >> 25 years is older than you and older than rick stengel but a little bit younger than mike barnicle. >> it's one year older than "wall street journal." >> led me read the headlines. the crown prince what is to be the result of the very serious operation which has been performed on the throat of the crown prince of prussia. this is not a mere question of ordinary politics but one which vital affects the peace and prosperity of europe. >> looked like a blog. >> fascinating. >> the kay before kim kardashian! >> exactly! >>> let's get to what is going on today. we start actually