say because they want to prop up the economy with liquidity ever since easy at all took over as greenspan took over as the federal reserve chairman in ninety seven liquidity has been the only tool of the fed with misses and they always add liquidity they very rarely take away or the incremental they don't believe in shock therapy in terms of you know putting the brakes on the economy the only believe in loosing along the economy or the belief so during the entire tenure about greenspan and so far in the tenure of ben bernanke so there's sort of like locked into a specific mindset that the only way to fix the situation is by throwing money at it but you know eventually it's money has to be paid some of the but the money they're throwing at it is going into a black hole because the banks for example every single day for example in ireland the big irish bank just said you know what we don't need twenty or thirty billion and bailout money we need maybe twice that amount of money because of all the debts we fell. to disclose so there's been a failure to disclose the two nature of the debt this

you john paulson what's john paulson is biggest position in his fund right now gold yeah so alan greenspan spent his entire career badmouthing what. i don't know all basically i guess yeah i mean he's saying he can create it can replace gold with the u.s. dollar which is just like gold except it's not and then he leaves office he goes to john paulson says fine now they're buying gold aggressively so he's not the maestro izzie is just another one of these you know. fraud paddling guys now let's talk about another salon monkey paul krugman over there at the new york times he's a lazy no good for nothing he's saying oh you know i forget it that we there's nothing we can do let's just start a war isn't he just saying let's start a war or to get out of our problems i mean this guy is easy trying to be tried for war crimes before they even commit war crimes what paul krugman is probably no no no he's not saying that max i mean we have to be fair to him and he's very slippery about how he is you know what is his position but he is allowing readers to draw the inference that or would be a good thi

only believe in loosing a long view from over the belief so during the entire tenure of our own greenspan and so far in the tenure of ben bernanke so there is sort of like locked into a specific mindset that the only way to fix the situation is by throwing money at it but you know eventually it's money has to be paid some of the book the money they're throwing at it is going into a black hole because the banks for example every single day for example in ireland the big irish bank just said you know what we don't need twenty or thirty billion and bailout money we need maybe twice that amount of money because of all the debts we failed to disclose so there's been a failure to disclose that to nature of a debt this is this is a huge issue because these banks are not told exactly how much debt they're sitting out either because they have no idea or my belief is that they're being there and they're engaged in massive fraud so it's impossible to know how much debt they're sitting on but at some point they will run out of disclosing these bad debts and at that point is the point in time when the

when chairman break -- when chairman greenspan was question about this, he said they referred the matter to law- enforcement. we look and sound from 2000-2006 that the fed under mr. greenspan only made to referrals, one small bank in palm desert, calif., and one small bank in centerville, illinois. clearly, the fed had tremendous power and it has yet to be seen whether, given their new powers, they will use the more forcefully than they did in the run-up to this crisis. >> want to ask about some specific players, particularly goldman sachs, which has received a lot of attention in washington. did goldman sachs take actions before the financial crisis that ultimately accelerated and deepened the pain of the financial crisis either by putting pressure on a.i.g. to meet collateral calls or selling against the housing market at the same time it was leading companies clients to that in favor of the housing market? >> let me talk about the fact we have put on the record. clearly what we have an established is starting in july of 2007, goldman sachs was very aggressively demanding cash from a.i

greenspan only made two referrals, one small bank in palm desert california, and one small bank in i believe centerville, illinois. so clearly the fed had tremendous power and it's yet to be seen whether, given their new powers they'll use them more forcefully in the 81 run to this crisis. >> i want to ask you mr. chairman about some specific players in the financial crisis. particularly goldman sachs which has received a lot of attention here in washington. did goldman sachs take action before the financial crisis that ultimately accelerated and deepnd the pain of the financial crisis either by mutting pressure on a.i.g. to meet collateral calls or by selling against the housing market at the same time it was leading investors to bet in favor of the housing market? >> well, again, let me just at least talk about the facts that we put on the record. clearly what we have established is that starting in july of 2007 goldman sachs was very aggressively demanding cash from a.i.g. under its credit default swap contracts. now, i do want to say one thing. one of the most stunning things abo

right rock to crawl out from under greenspan i mean seriously here's a guy who threw the entire u.s. economy under the bus so they could win you know a knighthood from the queen of england i mean if that's not cerny for american i don't know what is and now he's saying you know what actually i did cause this catastrophe and i want to buy more of my books well it is quo is we're involved in a dangerous game where increasing the debt held by the public at a pace that is closing the gap between our debt and any measures of borrowing capacity will stop borrowing just like he acts like it's the public doing it's these bankers his cronies his friends yeah again this is the ideology. a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play out that she's away and not try to distance herself that she's away from her witchcraft past and the final headline yeah those corrupt us sister yeah and it offers a new max keiser prediction ok to leave many of your soap come true most. oh most all of my predictions invariably co

what happened to bill clinton ias u recall w are a deficit just like w have right now alan greenspan said to bill clinton indirectly, of course, look i am not going to lower short-term interest rates until you get some more control over the budget deficit. and that meant that a lot of those investment objectives could not be sufficiently met. in my view. my humble opinion. >> do you think barack obama's economic political philosophy is sickly different from bill clinton's? >> no i don't. >> they're pretty much on the same page. >> very, very similar than then how has t president endeup with this reputation as a european social democrat or worse, in terms of perception by the right and by some in the business comnity? >> i don't know i a good question. because the obama administration has been as kind if not kinder to business and wall street as any previous administration i can remember. i mean the wall street bailt itselfshou have convinced e business community and wall street that obama and the obama administraon from very prusiness. andlso maintaining to the extent that they did.

i don't know what alan greenspan is reading.nk him for stopping by after he helped cause the mess. he was on television saying i don't even know what a ceo is. i couldn't even understand it. oh, really? thank you. why don't you zip it for a while. maybe he is reading the white house blog and he's getting all this good news and all of these things. hey, everything is great. people are being scaredy cats. i think if you read the newspaper and you say we are great! you're in denial. i was reading the business insider.com. i told you about this yesterday. they had a list a bump of troubling signs -- bunch of troubling signs on the economy. you just read the front page of theblaze.com. foxnews.com. drudge report. just read it. just read it. you can see the signs if you care to look. i told you before, what you need to look is look at what smart money is doing. my grandfather told me when he lived through the depression, the rich got richer. if you had money, you were okay. if you had a job, you were okay. well, that implies that ther

we got to point the finger at alan greenspan.kin, like, 1%." uh, hello? that's going to cause, like, crazy inflation in the housing market, dude. everybody knows that. [ laughter ] ♪ [ cell phone rings ] and oh, okay, we should probably keep the whole financial sector deregulated, too. like, probably none of the banks will ever get over-leveraged or anything like that. like, all those mortgage-backed securities are, like, totally safe to invest in. whatever, yo. [ laughter ] ♪ anyway, i'm not saying, like, the banks are innocent. like, i'm not saying the bailout wasn't whack or whatever. i'm just saying, federal reserve, yo. greenspan. dude straight up busted the housing bubble. that dude is whack. what? whatever. anyway, i'm just a regular kid. and those are my reflections. see you guys later. [ cheers and applause ] ♪ look at my reflection >> jimmy: created a wormhole. apparently, justin bieber uses a wormhole to get around. he just hops around one place to another lickety split. very interesting. stick around, everybody. we'll

of course, chief among them were men like alan greenspan, the federal reserve chairman, robert rubin, former treasury secretary, and others who we had lionized in the 1990's as masters of the game, masters of wall street and global lost finance. now all the sudden what once looked good did not look so good. wiseman is obviously used tongue-in-cheek. tavis: how did they go from being the masters of the economy, masters of predicting the future, to being so on wise so quickly? or maybe not so quickly. >> well, it seemed quick, but in actuality, it really was over a few decades, going back to the reagan revolution and proceeding through the clinton administration, when they got a couple of really big things wrong. there were good at crises without realizing that some of these crises, including some that happened in the 1990's, were precursors of the financial crisis we suffered in 2008. they involved just deregulation of the financial markets, to the point where no one was watching. but the time these trillions of dollars in over-the-counter derivatives went bad, there was no longer any

. >> if you ask alan greenspan, how did you miss the rapid rise of subprime mortgages? he tells this wonderful story about cindy numbers from a mortgage finance. it showed a big increase in 2006 in the number of subprime mortgages. we're talking about a guy -- he is a global in such kind of guy. he said that he did not believe the data. he said he did not think it was possible to have something increase that rapidly. what have the things that the policy makers have learned is that it is exactly when -- there are times when you really need to have the data to figure out if the story is not unfolding as you expected. a whole lesson learned from this episode, the whole business of supervision is to spend less time thinking about how we can trust the markets because the markets always do what is in their interest spread a little more time on looking at the data to make sure that allows for the possibility that these guys to run these big banks, they might not actually know what they're doing. in retrospect, a lot of academics got it wrong. a lot of wall street got it wrong.

i just want to play what alan greenspan said about in this week, and then we'll discuss it. >> i knowof year, keep the stimulus going and then we'll solve the problem. i think that's a very risky strategy. i don't deny -- if i knew that was -- you could do that that is obviously the best strategy. i'm not sure the markets are going to allow them to do that. >> paul? >> let me just -- i don't know how to say this. christine lagarde said let's not talk about theory, let's talk about the numbers. my numbers are not the same as hers. the european commission numbers say the unemployment rate in france is going up, not down, so i don't know where she's getting that from, and when she says people are worried about the deficit, the people who have a real stake in worrying about the deficit are investors, bond investors, interest rates are at near record lows in all of the g-7 countries. i think she's on a fantasy which is a popular european fantasy which bears no relationship to what's happening. >> for 20 months we've had the most rapid expansion of federal discretionary spending in our hist

greenspan says us creating scary deficit as borrowing rises borrowing just bit like you act like it is the public during these bankers his cronies his friends yeah again this is the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play up that she's a witch and not try to distance herself that she's away from her witchcraft past. meanwhile in europe the economic outlook also seems fully in fact riot police in athens have clashed with protesters barricading the cities across the list officer use tear gas to clear demonstrators from the entrance to greece's most famous ancient site over one hundred culture ministry workers have turned out to demand unpaid wages dating back to heres the police arrived after a court order said the protesters were blocking access to ancient sites and temples . the iranian president mahmoud ahmadinejad has met with lebanese politicians on the second day of his visit to the country it comes amid mounting western concerns of arms deals and political cooperation between t

greenspan says us creating scary deficit as borrowing rises will stop our. just a bit like he acts like he is the public during these bankers his cronies his friends yeah he. is the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play out that she's away and not try to distance herself that she's away from her witchcraft past. now some other international stories and starting in northern chile where the miners or did this finally shift supervisor was the last to be freed in the twenty four hour operation to bring the modest surplus they spent two months trapped underground i don't know for all things he truly mercifully growing only much better physically expected but they're still being given thirty checks in hospital which is now empty has been asked for has been winched out of the club the risk finally accomplished. iran's president is in lebanon touting his country's efforts to help rebuild the small coastal nation after his for the last two thousand and six war w

greenspan says us creating scary deficit as borrowing rises borrowing just bit like he acts like it is the public doing these bankers his cronies his friends yeah. that is the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play out that she's a witch and not try to distance herself that she's away from her witchcraft past. the u.s. is losing another key supporter in afghanistan after it to the announced plans to pull out of the campaign italian foreign minister says the withdrawal will start next summer and should be completed by two thousand and fourteen it comes after dutch troops left in august and hunted at the start of it all out next year if they contributed more than three thousand soldiers to afghanistan the hundred twenty thousand strong contingent decision is just the rules are there for training soldiers were killed in a bomb attack in afghanistan the u.s. meanwhile is increasing its presence that nato mission in not enough troops on the ground. in libya the project says it is wrong

greenspan says us creating scary deficit as borrowing rises borrowing just bit like he acts like it is the public doing these bankers his cronies his friends yeah again this is the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play up that she's away and not try to distance herself that she's away from her witchcraft past. the u.s. is losing another key support in afghanistan after italy announced plans to pull out of the campaign italian foreign minister says the withdrawal will start next summer and should be completed by two thousand and fourteen comes off the dutch troops left in august one of that decided it will without next yeah if they contributed more than three thousand soldiers to understand twenty thousand strong . decisions just for korean soldiers were killed. at a start u.s. meanwhile isn't using it. in the troops and ground. the project says it will ease with noise because it doesn't want to means soldiers . during the last nine years of the campaign that hasn't been a real ser

greenspan says us creating scary deficit as borrowing rises will stop borrowing just bit if you act like it is the public during it's these bankers his cronies his friends yeah again this is the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play up that she's a witch and not try to distance herself that she's away from her witchcraft past. let's take a look now at some other big international stories this hour we're going to start in northern chile where the miners ordeal is finally over the shift supervisor was the last to be freed in the twenty four hour operation to bring the miners to the surface they spent more than two months trapped underground following a rock fall all thirty three emerged safely and in much better physical condition than have been expected but they're still being given thorough checks and hospital the pit is now empty as the last rescue worker has. been declared a rescue mission finally accomplished. a great riot police have used tear gas and pepper spray to clear the a

greenspan says u.s. creating scary deficit as borrowing raw is borrowing just like he acts like it is probably doing its these bankers his cronies his friends yeah again this is the ideology of a psychopath and we need which is in government to break the spell of the economics is exactly right christine o'donnell should play up that she's a witch and not try to distance herself that she's a witch from her witchcraft past. the u.s. is losing another key supporter in afghanistan after it to the announced plans to pull out of the campaign tell me and for minister says the withdrawal will start next summer and should be completed by two thousand and fourteen becomes off the dutch troops left in august two hundred at the start it will put out next year to be contributed more than three thousand soldiers to afghanistan twenty thousand strong contingent but just days ago italian soldiers were killed in a corner. this is increasing its presence in afghanistan and nato officials reportedly claim troops on the gro

greenspan says u.s. creating scary deficit as borrowing rises borrowing just bit like he acts like it is the public doing its these bankers his cronies his friends yeah . it's the ideology of a psychopath and we need witches and government to break the spell of the economics is exactly right christine o'donnell should play up that she's a witch and not try to distance herself that she's away from her witchcraft past. let's take a look at some other stories in europe the economic outlook all also seems to believe their rival east and athens have clashed with protesters barricading to cities across the u.s. officers used tear gas to clear the demonstrators from the entrance to greece's most famous ancient site over one hundred culture ministry workers had turned out to demand unpaid wages dating back two years the police arrived after a court order said the protesters were blocking access to the ancient sites and temple. they radium president mahmoud ahmadinejad has met with lebanese politicians on the sec

the alan greenspan, said. you can depend on the markets to correct themselves and know what they were doing and we found that they didn't. but this regulatory art of jerry corrigan and others like him were lost. we got into this period in which regulation was ridiculed. there was no regulation at all. we only found that out at the very end, during the nadir of this crisis when all of a sudden everyone from treasury secretary hank paulson and the bush administration ben bernanke, realize the financial system was something they no longer comprehended. and the extent that this sort of shadow banking crisis, these products that or off the books and not monitored, were sinking the system. that realization came far too late to do anything about it. host: michael hirsh writes in his book -- also lost was any sense, finance, would complete a least came to dominate economy rather than serve in this traditional role as a supplier of capital of the real economy of goods and service. talking about the serial major of the

look what alan greenspan said. we don't need regulation. markets, he's a very smart man. after it was over, he said, i'm sorry, i'm dismayed. turned out self-regulation doesn't work. we have an environment where for years, we felt anything was okay. and then we had a great and incredible financial meltdown, which showed what happened with credit default swaps and derivatives. while this was happening, we went from the floor base system where people used to see traders on the floor trading with their fingers. we went to a digitalization system and that's when computers took over. went from 30 to 70% of the market with no regulation. if we had regulation when this started and the points you made, we would have looked into those things. it's like pruning a bush. we would have had a bush, pruned it as it grew, maintained the capital formation, took care of long-term investors and prune it. but what happened is we have this tree and we just stepped back and for two, six, eight years, it grew. it is now a monster. billions of dollars at stake. we

welcome dorian greenspan. >> we will do a recipe that has a story. >> can you back up a second.le french thing come into your cooking? did you live in france. >> i live in france part time. >> your own french lover. >> my husband. okay. i live part time in france but the first time i went to france which was more than 30 years ago i put my feet down and thought, this was where i was meant to be. my mom just made a mistake, she had me in brooklyn. >> what's so great about their food. >> the food is fresh. it's bright. i mean, it's really the home of great food. and what's interesting is a recipe like this which is truly french but will be perfect for an american thanksgiving. >> and this is the pumpkin. >> the pumpkin. i call it the pumpkin stuffed with everything good. we start with stale bread. i love to use my hands. and you can either add onion or scallions. >> a little bit of bacon. >> what i love about the french is they aren't afraid to put the butter and cream. their motto is even a little bit. >> moderation. that's right. some fresh thyme. >> americans want a big ol' --

maestro, greenspan's fed and the american boom. bush at war. plan of attack. the secret man with a reporter's assessment by carl bernstein. state of denial. the war win, a secret white house history 2006-2008. now there is his most recent book, it's called "obama's wars." his focus is the conflict in afghanistan. it gives new details in how president obama decided upon a troop surge and the division within his administration over that decision. for the book, woodward talked to more than 100 people and reviewed many more documents. i am very pleased to have bob woodward back on this program. first of all, good to do it here in washington and in person. thank you. >> thank you. >> rose: let me start with this idea. this has been described as how the president came to a decision with respect to afghanistan after doing an exhaustive review. it's also characterized as somehow the push and pull between a white house and the military. describe that for me as you see it. >> it's not just one decision. it actually covers 18 or 19 months, from the beginning of his presi

so you had this environment where rubin and greenspan were persuade people of this, and at the time, they were seen as the greatest team in economic history. all timidly, what inspired me to write this book was it -- ultimately, what inspired me to write this book was the characters. seeing their reputation crashing down to earth. these guys were the best and brightest. how did they turn out to have such clay feet? i thought that was a fascinating story. host: charles, a republican in georgia. caller: good morning. i have a couple of comments. historically, you may disagree with them, but talking about financial advisers, regarding the resolution to pull out our savings and loans. if you look at the interest rates, historically, compared to the 15% range when carter was in, the responsibility of the government is to control the money supply. carter allowed inflation to get way out of control. if you look at a historical time line, there has been a decrease in interest rates, to where we are now. guest: interest rates are artificially low right now because the federal reserve is tryin