well alan greenspan is a dork and a face a terrorist he should be up on war crimes but basically all the problems that the result of the fed's artificially keeping interest rates low have resulted in the growth of fraud in other words you need to distance center vies fraud you need to make the cost of money high enough so that the risks associated with borrowing to start your fraudulent activities are diminished if you make the price of fraud so cheap that any goombah can borrow billions and start anything crazy scheme that they can concoct in their diseased mind like a bernie madoff and then if they get caught they either go to some celebrity country club jail or pay a small civil fine or get put on the cover of some time magazine then you're not going to stop the flow noria well importantly earlier in the year we covered the fact that brooksley. bourne was fired forced out of government by alan greenspan and larry summers because she wanted to regulate against fraud she was shocked to learn that alan greenspan told her over lunch that he believes the markets are better at regulatin

against fraud she was shocked to learn that alan greenspan told her over lunch that he believes the markets are better at regulating fraud and he is against it so now he's saying oops when he safely away with his pension fully intact yet he's working for over there penco with bill gross advising pimco a notorious front runner an insider trader the guys making money doing fraudulent activities while in office out of office he probably can't go to the bathroom without committing some fraudulent activity thankfully my final note here this was sent in by a viewer of the show who actually is using one of these mac's kaiser gold coins here's a picture of oh i sent an email to demanded evidence that put my picture on the new russian global gold coin not haven't heard anything back yet then finally max you know those gold coins as max keiser gold coins might come in useful for the final savers versus speculators dead or versus creditor bubble of all jeremy grantham the fed is creating its last bubble. so he said to. what i worry about. the fed's activity. q e two is just the latest demonstr

jarring you had two things going on you had to greenspan put which is to say i'm. time stock markets traded down greenspan would lower interest rates to make it cheaper to buy stocks and b. and there was a montra that everyone followed by the dips you know that was the answer to everything was the market doing buy the dips so i would say the same thing that got the beijing put every time gold comes then china is going to buy it because they got it themselves against the currency garbage u.s. dollar plague and buy the dip you know take the same approach and take those shorts out on a stretcher are i wrote a piece two three weeks ago that said this is every dealt american bought one ounce of gold one yes ok that's seven that's seven thousand tonnes that's fort knox that's two and a half two point eight times global annual mind supply yeah well look let me just show a bit of a second because there's work there's a campaign out there in the u.s. were to move your money from the money center banks to your local bank that's nonsense because the big money center banks is

alan greenspan, dr. greenspan, l me begin with you.here are we on our search for jobs and on our overall economic outlook? >> well, our search for jobs is still -- not doing too well. 10% unemployment rate is the consequence of the fact that this economy is not picking up the way it ordinarily would out of a recession. and the basic reason is that unlike previous recoveries when, for example, we would be getting very significant pick ups in building, residential, nonresidenti nonresidential, we're not getting that today. it's a big hole in the econom and the reason, esentially, as far as the business sector is concerned is that business is highly uncertain about the future in a way whch i've never seen it before and way in which the data suggests has never, in fact, been so depressed. and unless and until we can begin to lift that uncertainty, it is very difficult to see people reaching out into the longer term. let us remember, buildings are 20, 30-year investments. >> right. >> what the data show is that extremely high risk aversion

greenspan. former speaker of the house, republican newt gingrich, author of the new book "all the devils are here" about the financial crisis," bethany mclean and (jennifer garner) there's a lot of beautiful makeup out there to cover up flaws and make skin look pretty but there's one that's so clever, it makes your skin look better even after you take it off. neutrogena healthy skin liquid makeup. 98% of women saw improvement in their skin's natural texture, tone, or clarity. does your makeup do that? neutrogena® cosmetics recommended most by dermatologists. or 100 pringles. both cost the same, but only the pringles superstack can makes everything pop! ♪ ♪ whoa-oh-oh-oh ♪ yeah, yeah ♪ hey, hey [ male announcer ] the choice is yours... 100 of these or 100 pringles. same cost but a lot more fun. everything pops with the pringles superstack can! ♪ >>> we are back. co-author of the new book "all the devils are here," bethany mclean. alan greenspan, former federal reserve chair, and former speaker of

alan greenspan, dr. greenspan, let me begin with you.here are we on our search for jobs and on our overall economic outlook? >> well, our search for jobs is not doing too well. the 10% unemployment rate is the consequence of the fact that this economy is not picking up the way it ordinarily would out of a recession. and the basic reason is that unlike previous recoveries, when, for example, we would be getting very significant pickups in building, residential, nonresidential, in a sense longer-term assets, we're not getting that today. and it's a big hole in the economy and the reason essentially as far as the business sector is concerned is that business is highly uncertain about the future in a way which i have never seen it before and a way in which the data suggests has never in fact been so depressed. and unless and until we can begin to lift that pull of uncertainty, it is very difficult to see people reaching out into the longer term. remember, buildings are 20, 30-year investments. >> right. >> what the data show is that they --

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the greenspan commission said, no, they should be covered. that those wages should be part of what social security replaces and workers and employers should pay taxes on those contributions. so the greenspan commission recommended that. congress adopted that and that is now the law today. what this proposal would do would apply the same concept to similar kinds of plans that since 401k plans were adopted. and to treat those like 401ks would eliminate another 13% of the long-term shortfall in social security. so these two things together broadening the base would eliminate about half a of the long-term shortfall. the third piece of a financing plan is also based on history. and that is to gradually schedule out in the future small increases in the fica rate of 6.2%. throughout most of the history of the social security program, there have been rate increases scheduled out in the future. and certainly when we anticipate a larger population beneficiary system it would make sense to plan revenues to match that need. to do this, policymakers have

the story of the greenspan commission. so that's available, too. think tom, you are the audience as our editor today. thank you, tom. so we have an exciting panel, create new materials and a real new take. i meant to say a few words about my work here and why were looking back in the sears in 2010. in part, we are here because this is a story that's not being taught about a lot. today's headlines are all about the potential cuts but could make in our public budget. but the story of 1983 as a story about cuts that were made at that time of the social security program and still being phased in. it's not well understood and we want to put the record straight about the kind of balance that was achieved in 1983. in fact, much heavier on cuts, cuts that are still being phased in and give you a picture of what a different approach to strengthening social security for the long run would be. so that's our task today. and i want to welcome up janice. thank you. >> good afternoon and thank you for being here. and as lisa said, we hope to give you some new tho

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

based on recommendations of the so-called greenspan commission. next, a forum on the effect of the 1983 law and ways to improve social security. the nonpartisan national academy of social insurance hosts this hour-long discussion. >> ha hi, good afternoon, everyone. welcome. you're here for the national academy of social the entrances panel on strengthening social security for the long run with insights from 1983. i'd like to welcome you. i am lisa mensah, the executive director of the initiative on financial security at the aspen institute, and also served as the chair of the board of the national academy of social insurance. so welcome. we are thrilled to have you here on the day before our big national holiday, before almost every believes for the holiday, to really talk about one of the things that we are truly grateful for, our social security system. and today we have an exciting panel and a very interesting exercise which is to look back a bit in history to get my job is to introduce our panel, and to also tell you why we conceived of this

greenspan refused to do it. he said, the market knows better. he said, don't regulate derivatives. yeah, there was certainty. the certainty was that any financial institution can do whatever the hell it wants to do and it brought about this terrible crisis. we have responded to that and i think here his predecessor paul volker has a better part of the argument. we listened closely to him and others and we imposed some restriction that is greenspan should have imposed. now, the notion that we have created the uncertainty, this is the man who has acknowledged that his failure to use regulatory powers caused a large part of the problem. he hasn't given us specifics about what he thinks we should do. >> congressman, you personally said that the critics of extending these risky mortgages to people who couldn't afford them were overreacting. >> no. i didn't say that. i did say that i thought fannie mae and freddie mac weren't in serious trouble. i was wrong about that in 2003 as i was about lehman brothers and wachovia and others. but i was always for them doing affordable housing. that'

you say, to my read, some of your harshest critique for alan greenspan. >> what i was trying to do is show this mentality, this incredible contradiction in greenspan's personality, because he ideology -- he publicly advocated the ideology that government should be no part of wall street but he created the mechanism that allowed wall street to continually bail themselves out. there's a contradiction between no regulation on one hand, no government, and total welfare state on the other hand. and that's where we are right now. tavis: it's a great deconstruction of what happened when this crisis hit. the book is called "griftopia, bubble machines, vampire squid, and the long con gripping america." up next, jeffrey wright. tavis: jeffrey wright is a terrific actor which many of us know from his award-winning performance in "basquiat." his latest project of john guerre, "a free man of color." here, a sneak preview of "a free man of color." >> didn't you used to be a slave? >> don't be fresh, mama. even though born of a slave, i purchased my freedom and became my father's heir. >> my father'

in the united states the fact of the matter is that you know you had a good article even by alan greenspan saying it would look the u.s. would like a weaker dollar and so the u.s. feels a little bit of vulnerable on this point the argument from the u.s. side is that is that look we're not aggressively trying to weaken our dollar here we're just trying to provide a little bit of cushion here and that number you know what the fed did with the six hundred billion even though it's a big number it's still not you know two trillion dollars or this shock and awe that you know some people were concerned about and that we're actually going to try to be a little bit more measured and more balanced on our approach so so what we have here is is you know the u.s. i think vulnerable to this kind of criticism that that you mention the u.s. is not going to back off on pressuring china but to the extent that you know the u.s. would like to get a lot more aggressive pressure on on on china they are not really getting it but having said all that the chinese also are looking to and to some extent to deflate s

federal reserve alan greenspan has weighed in against the policy of weakening the dollar and driving up exchange rates in the rest of the world. the u.s. central bank and china is also pushing down the u. ud to boost exports these currency wars could spark global trade protectionism and provoke a crisis much sharper than the one coming is only just recovered. time to see how the markets are forming now here in moscow the bourses have slipped into the red zone bank and was never among the biggest losers but helping lend support. putting on around one of the help of around a half percent on the r.t.s. this hour and stocks in europe's are falling this hour lou losses for the financial sector offsetting earnings announcement from the likes of siemens and bt group in london bt shares rose three point one percent after the telecoms from increased its forecast for full year earnings. back to russia. and a group of investors are looking to buy out into twenty five percent stake in north . this is according to realty news agency whose sole which also owns a twenty five percent stake in the ni

you saw the phenomenon where rubin and greenspan were persuading everyone of this. and they were at the time, seen as the greatest team, you know, in american economic history. greatest fed chairman, the greatest history secretary, as he said when he left office. and ultimately, what inspired me to write this book was the characters. was seeing these guys that i had written about in such positive tones in the '90s. myself was part of this. this -- seeing the reputation just crashing to earth. how does that happen? how do guys that are the best and the brightest, you know, turn out to have such clay feet? i thought that was a really fascinating story. it's the story that i wanted to tell. >> guest: one last caller. charles, in georgia. welcome. >> caller: good morning. >> host: hi. >> caller: i've got a couple of comments. one is -- and i didn't say that earlier on. historicically, -- historically, and you may disagree, you talk to the financial advisors, they will say there are three events. my comment came from an earlier comment about the resolution of trust about

we have moments in the book where people are going to greenspan -- first of all, go to greenspan sand have a 30-year fixed. what do you think, i'm crazy. >> isn't it ironic, greenspan got hammered after the market crashes for cheap money. his successor bernanke is taking it to unforseen heights. we are making the same mistakes. >> we are, but if you are bernanke, nobody else is going to do anything. >> that's what greenspan thought. how else do we get out of this? he's doing this. bernanke is doing the same thing greenspan did to save the economy for 20 years. >> the only problem with not balancing the budget is balancing the budget. if you balance it, the economy crashes. otherwise, you print cheap money. >> you write about the game before the lehman weekend and now you write about the current game. is it different? are the rules different enough? >> i don't think they are different enough. 1930s, they forced companies to break in two. they's radical. they erect the fcc. that's radical. the system is safe for the next 50 years. that's good for one set of regulations that came out of

. >> rubin and greenspan is like a decade later. no, nobody had any sense -- what happened by then is you have this burgeoning market and the proliferation of derivatives and what you have in the 90s is the beginning of a push by some people to say they're dangerous and ought to be regulated. something needs to be done other than just letting them go untrammeled in the market place. >> charlie: why didn't those people listen to those people? >> i think one is this ideology about modern finance that innovation is good and we shouldn't do anything that would stymie it. >> charlie: and the market is always right. >> and those two things combined plus lobbying money from the financial industry and it's implicit because everybody thinks the same way and explicit because there was money changing hands. >> charlie: so what happened when somebody knew what they had to lose knew what pay mess they were in. you talk about merril lynch and stan o'neal. >> they didn't understand what a mess they were in until very very late as was true of almos

former federal reserve chairman alan greenspan. it was he that slashed interest rates and kept them love -- low. that is when the gold rush began. in 2008, his successor ben bernanke cut rates again and gold is now selling for $1,400. some are asking if the record price may have less to do with the high value of gold than with the low value of the dollar. said chairman bernanke, not only is he keeping interest rates close to zero, he is printing more and more money. the world bank president has called for the introduction of a new gold standard, an idea rejected by many analysts. >> we spoke with an analyst and asked if the current gold prices spur worries about the state of the global economy. >> definitely come up reseat the detriment around the globe. -- definitely, we see the detriment around the globe. given the backdrop of an inflationary policy, and the flexibility of asian currencies, they fear the global inflation will pick up to a fast. and people will go to gold as a safe haven. you do not actually have alternative sts.

but alan greenspan was id logically opposed to regulation as he says in his own memoirs.vely turned his back on that part of his job. >> reading his memoirs. you have to be kidding, the guy heading the fed is a libertarian. you can't be a libertarian and run the fed. i want to throw another game out there. tim geithner. he was not there in the new york fed in the entirety of the '90s, but he was there in the worst of the bubble explosion. and he testified before congress when he was affirmed as treasury secretary, he said i've never been a regulator. did he misunderstand his job? >> you know, some people said one of the reasons that the guidance on nontraditional mortgages came so late in the game, came in 2006, the regulators cracking down. one of the reasons it was delayed was the new york fed. their belief in the power in the market. the market is making the loans. who was whispering in their ear -- the market was allowing the loans. >> the consumer advocates were screaming from the tops of the hill tops saying these loans will not be repaid. the fed, the occ did not d

it was alan greenspan who referred to that as the big fat gap. >> is david maxwell still alive? >> yes. >> did he talk to you on the record? >> yes. >> what did he do over those 10 years that specifically saved fanny? >> he took a company -- the washington post had a company -- had an article saying it was headed for the biggest financial disaster in modern history. it was going broke at a phenomenal rate. like many of the s&l posted, it had bought mortgages at a time of rising interest rates and was stuck with fixed-rate mortgages paying one thing all the cost of funding was going through the roof. money was just going out the door every single day. maxwell started to run it more like a business. he demanded accountability on the part of managers and changed some of fannie mae's policies and procedures soak, they would no longer commit to buying a loan at any interest rate from someone a year in advance and be stuck with that loan even when it turned out to be unprofitable. you could argue that maxwell put fannie mae on the course of being a bottom-line oriented company. like e

alan greenspan the former chairman of the fed has said america's pursuing a policy of weakening its currencynd this is what the current treasury secretary tim geithner said in response to that. >> i have enormous respect for alan greenspan and had a privilege of working with him but that's not an accurate description of the federal reserve's policies or our policy. we will never seek to weaken our currency to grow an economy. it's not an effective strategy for any country, surely not the united states. >> how do you assess, first, what the qe2 is, quantitative easing and isn't that viewed as certainly overseas as an attempt to weaken the currency just as they're accusing china of doing. >> well, i would say manning currency is beyond my pay grade so i don't normally get into that one. >> it affects business. >> i was one of the guys -- i've been in favor of everything so when they were talking about stimulus, home modification, the federal reserve is doing what they needed to, i don't think the country realized how close we were to a depression and i've said to the senator several times i do