smk greenspan said is important. he said it's not going to be without pay.cohol, drugs and government spending, it feels good at first. when you stop, it feels less good. republicans are saying take the pain now. don't pass it on to the next generation. that's why they are being so firm. >> i disagree with that view. >> to the extent that we are taking the s&p downgrade as a serious thing. we believe they have the credibility to have done think, hone honestly, we should talk about the aaa ratings to reach the doorbell and ask. they do not have the most credibility on this. if we are going to take them seriously, take them on their word. they said they did this on brinksmanship. they said they did it because of republicans holding the debt ceiling. >> what is a rating? a rating is an estimate of the probability of default. the probability of default on debt is zero. we have just gone through and experienced that anybody looking at it has to say whoa, maybe somebody might default if we go to the edge. >> let me get in here. i want to take a break. when we come

alan greenspan did. the federal reserve chairman is the most highly empowered, most unaccountable economic czar on planet earth. it's better than economic czar. he is master of the universe. well, the rest is history. an 18 year run as chairman. seems like it was okay for a while. a lot of bad things happen on his watch. it seemed like he always bailed us out. i remember seeing him on the cover of "time" magazine where the title is chairman of the committee saves the world. you see a shriveled little man who was wearing a sign saying broken. 85 years old, mind you still totally there. his spirit isn't there. easy broken man. but i would be broken, too, if i was all before congressman henry waxman. have you ever seen henry waxman? this guy looks like a combination of the original phantom of the opera with lon chaney senior and mortimer's nerd. waxman growth greenspan. i have to admit that all that self interest stuff, all the virtue of selfishness tough, all that self-regulation stuff didn't work very wel

alan greenspan did. federal reserve chairman is the most highly empowered, most unaccountable economic czar on the planet earth. it is better than economics. economics. is master of the universe and an ayn rand accolade got that job. the rest is history. he had an 18 year run as chairman. seemed like it was okay for a while. a lot of bad things happened on his watch. it seemed he always bailed us out. i remember seeing him on the cover of "time" magazine where the headline was chairman of the save the world committee. i met greenspan recently in washington and let me tell you what happens when you go into his office in washington to meet alan greenspan. you see a shriveled little man who was wearing a sign saying, broken. he is 85 years old. his mind is still totally there. his spirit isn't there. he is the broke and man. i would be broken too t if i was hauled before congressman henry waxman. have you ever seen henry waxman? this guy looks like a combination of the original phantom of the opera with rod

he could be separating himself from alan greenspan but he watched alan greenspan over the weekend when he said we don't have to worry because we can print our own money. how can he be oblivious of the consequences? only two ways interest rates can be affected. one is supply and demand. how much money do the banks have? the other is, when a government or central bank orders what interest rates will be, which will produce more prosperity for everybody, the free market supply and demand, not an order from the central bank. that is what we have today. this will fall down on the people who are exuberant. >>neil: the federal reserve can criminal short-term interest rates and it has in control over market interest rates, in other words, the markets set tone, if they fear the inflation or the spiral that you are worried about, that will be reflected and interest rates will become up although short-term interest rates stay the same so we could have the worst of both worlds. >>judge napolitano: yes, we could and bernanke is trying to absolve himself in the fighter from the consequences of that.

alan greenspan did.he federal reserve chairman is the most highly empowered, most unaccountable economic czar on the planet earth. it is better than economics. economics. is master of the universe and an ayn rand accolade got that job. the rest is history. he had an 18 year run as chairman. seemed like it was okay for a while. a lot of bad things happened on his watch. it seemed he always bailed us out. i remember seeing him on the cover of "time" magazine where the headline was chairman of the save the world committee. i met greenspan recently in washington and let me tell you what happens when you go into his office in washington to meet alan greenspan. you see a shriveled little man who was wearing a sign saying, broken. he is 85 years old. his mind is still totally there. his spirit isn't there. he is the broke and man. i would be broken too t if i was hauled before congressman henry waxman. have you ever seen henry waxman? this guy looks like a combination of the original phantom of the opera with r

so what are we doing about reining thing that greenspan failed to mention is that we actually don't have to default because there is enough money in the coffers to parent that we take in ten times that doesn't matter anyway as if they are debt but we can't afford it is ballooning discretionary spending and of course. liabilities by all of our entitlements that we refuse to confront and this is something to that's and p. had said months ago that you know if you don't look at these entitlements there's one hundred trillion dollars now coming liabilities we're probably going to downgrade you that i think this is somewhat of a. this isn't. somebody said it was it was kind of political for obama and even standard and poor's may have been doing this with political motivations we have a montage put together some some clips of some people who might be trying to take advantage of this role that members of the u.s. government were standing up in public and saying maybe it would be ok if the u.s. government defaulted on some of its obligations there was a deeply unsettling moment but let's look at

but anyway, justin is a highly praised -- has written two great biographies, one about alan greenspan and what about ralph nader. he lives in forest hills gardens in a beautiful place in queens. and was designed by olmstead said. which one? >> will be more casual. not charlie. anyway, so it's really fun to be here tonight that it was right off the bat i was a little surprised to sort it cpq had written these books about theater and greenspan, who are controversial in their day in time and are still alive and kicking. then you pick olmstead, who is pretty well thought us by the time he died in with an interesting guy. so what made she moves from one to the other? what do they have in common? >> i guess that makes me move into olmstead and says "the new yorker" folk like central park was in a common yard along with so many other new yorkers in overtime sort of got a deeper appreciation for the park in the tour guide dedicated me to resume moved out to forest hills gardens and the like made that such a was staring me right in the face. and it actually does connect in a strange country to

alan greenspan did.e federal reserve chairman is the most highly empowered, most unaccountable economic czar on the planet earth. it is better than economics. economics. is master of the universe and an ayn rand accolade got that job. the rest is history. he had an 18 year run as chairman. seemed like it was okay for a while. a lot of bad things happened on his watch. it seemed he always bailed us out. i remember seeing him on the cover of "time" magazine where the headline was chairman of the save the world committee. i met greenspan recently in washington and let me tell you what happens when you go into his office in washington to meet alan greenspan. you see a shriveled little man who was wearing a sign saying, broken. he is 85 years old. his mind is still totally there. his spirit isn't there. he is the broke and man. i would be broken too t if i was hauled before congressman henry waxman. have you ever seen henry waxman? this guy looks like a combination of the original phantom of the opera with ro

one about alan greenspan and one about ralph nader. he lives in forest hills gardens in a beautiful place in queens and was designed by olmstead's sun. >> frederick law olmstead junior. >> difficult to be more casual. not charlie. anyway, it is fun to be here and write off the bat i was a little surprised to see that you were -- had written these books about ralph nader and alan greenspan who are controversial in their day and time and still alive and kicking. then you pick olmstead who was pretty well thought of -- by the time he died, an interesting guy. what made you move from one to the other? what do they have in common? >> what made me move into olmstead was i felt as the new yorker like central park or manhattan, mike, yard with so many new yorkers and i started to get a deep appreciation for the park. i had a friend who became a tour guide and i moved to forced hills gardens and felt like my next subject was staring me in the face. as far as -- it does connect in a strange way to alan greenspan and ralph nader. i like subjects

it's really is just as much their fault as it is greenspan's or bernanke use. well a couple of things i would say first i would agree with what was just said the fed caused the current economic troubles by inflating the housing bubble and i also agree that the european central bank even though theoretically they have a good single mandate of price stability these indirect bailouts they're doing are reprehensible but my main point is that franklin delano roosevelt extended and they exaggerated baited and worsened the great depression with all of his spending the higher tax rates more government intervention i mean hoover and roosevelt between them were two terrible presidents that kept the economy in the dumps for a long time now the only good thing i can say about the current political situation is that we do have gridlock because gridlock at least stops politicians from doing additional stupid things now in the long run gridlock is a problem because we had desperately need to fix these entitlement programs this giant unfunded liability but the politicians have

and if you look at alan greenspan he clearly caused the housing. inflating the economy by keeping rates artificially low and i don't think this enter banks have done a lot of gods since inception of the federal reserve has and i love i don't see united states or clearly a lot of the blame. should be going to them on the other hands on now or as we are already seeing this very high debt bar and clearly there needs to be some other political solution because i don't think there's any is a grade to fix it as a mention apart from some form of debt restructuring but one point that was made earlier i don't want to comment on also though is that the european central bank is any better than the federal reserve in my opinion clearly that's not the case at all the moment ruining the eurozone but bailing out every eurozone country they can find in every bank left and right is they're desperate again records amount of italian debt spanish that italy is sitting on two trillion euros of that person no it's absolutely impossible even if germany was going to spend

has the ability to print money print dollars to pay them as former federal reserve chairman alan greenspan was happy to point out. this is not. true probably group of the four. speaking of printing money let's look at the big picture too because there is a lot going on in the world right now beyond the downgrade of the european central bank said that they will print money and will intervene more aggressively to protect italy and spain which are suffering from crippling sovereign debt crises as well so with europe and the u.s. seeming to look more like what someone called a race between two cripples it may be no surprise that people are saying i don't want to play getting out of the market and putting our money into places like gold which surged to more than seventeen hundred dollars an ounce today and maybe the bigger question that we all should be asking is where is the country and the global economy heading to look forward i want to first look back i want to go back to two thousand and eight when the u.s. government was bailing out the financial system at the time look at this concern co

has the ability to print money to pay them as former federal reserve chairman alan greenspan pointed out. because from. a profit group of the fools it's pretty simple you would know he was at the fed and speaking of printing money let's look at the bigger picture the european central bank said they will do just that print money and intervene more aggressively to protect italy and spain facing actual debt crises so with europe and the u.s. both seeming to look more like what someone called a race between two cripples it may be no surprise that people are saying i don't want to play getting out of the stock market putting their money in gold which surged more than seventeen hundred dollars an ounce today closed more than that and we get a bigger question to be asking that we should all be discussing is where is the country and the global economy heading to look forward i want to first look back to two thousand and eight when he was government was bailing out the financial system and there were concerns at the time listen this one from congressman ron paul. my sincere conviction by doin

is going to be able to pay its debts or that we will pay our debts and alan greenspan actually happen to be on t.v. this weekend and he kind of said the same thing you said the idea of people is ridiculous and take a look at why. the states could. become something money to do that so there was a probability of the four world. i this is not the problem why do we think that it was always print more money and everything is going to magically disappear and all of our problems will vanish and that this is part of the problem is that we can't just keep printing more money out of thin air it will he start you start about monetizing the debt the fact is we've already been doing it so we've been print so that the federal reserve that's what quantitative easing to really was it was the federal reserve buying us debt pushing down borrowing rates through it doesn't cost us as much to borrow we're able to pay our debts we're just printing cash we're inflation is going up so it's cheaper to pay everybody is that and what greenspan saying is exactly right that's what the grenade the fed would do tha

one about alan greenspan and one about ralph nader. he lives in forest hills gardens in a beautiful place in queens and was designed by olmstead's sun. >> rick. >> we need to be more casual. not charlie. it is fun to be here. i was surprised to see that you were -- had written the book about ralph nader and alan greenspan that were controversial in their day and their time and they are still alive and kicking and then you pick olmstead who was well thought of by the time he died and he was an interesting guy. what made you move from one to the other and what do they have in common? >> what made me move into olmstead was as a new yorker i live in manhattan, mike heinen yard with so many other new yorkers and over time i started to get a deep appreciation for the park. i had a friend who became a tour guide. the move to forced hills gardens and i felt my next subject was staring me in the face. it does connect to alan greenspan and ralph nader. i like to do several things and in the case of greenspan he was a professional jazz musician a

federal reserve chairman alan greenspan said he suspects the stock market to slide and continue. >> considering the momentum at which the market went down over the last week, it is very unlikely, if history is any guide, that this isn't going to take a while to bottom out. so the initial reaction in my judgment, is going to be negative. >> alan: there's still another big issue facing all street. the countries in europe and concerns the global economy is weakening. >>> we have new details emerging this evening about the helicopter crash that killed 30 americans, including 22 navy seals in afghanistan. u.s. officials say the american troops had just completed a rescue mission to assist an army ranger unit that was pinned down. the chinook helicopter similar to this one, had just taken off when it was hit by insurgent fire. everyone onboard, total of 38 people, died. two of the fallen seals worshiped at the same church in virginia. the congregation honored the two today. >> to see the sacrifice their families are making, this further sacrifice hurts us all, shocks us all. >> alan: nato began opera

on "meet the press" greenspan predicted u.s.nd our economy may see a downward spiral. >> what i think the s&p thing did was to hit a nerve that there's something basically bad going on and it's hit the self-esteem of the united states, the psyche, and it's having a much profounder effect than i conceived could happen. >> let's cut to the chase. how does this effect you? the downgrade shouldn't have a big effect on your cash, don't expect to earn more interest if you're in a normal interest bearing account. feeling skittish experts say consider keeping your money in fdic accounts. credit card rates could go up, same with car loorngs small business loans. the consensus is be cautious, don't freak out. >> you should put it in the stock market in a broad-based index. in a year, year and a half, this country is going to turn around, after it did after the abysmal decade of the 1970s, turned around in the '80s and '90s. this is the time to get in when everybody else is fleeing. >> you have to use your best judgment, but if you think t

the united states of america frankly isn't going to default as alan greenspan said. we can print all the money we need in order to present a default, but what we're going to do is destroy the value of the dollar slowly through the federal reserve, and that is how you'll get rid of this thing. but worldwide collapse, john, this is coming about because of two big things -- the united states it looks like is headed into a double-dip recession, and this horrendous crisis in europe from greece to portugal to ireland went to spain and italy and now france. >> eleanor? >> pat has a unique way of grading, saying the tea party is right. they helped bring about the catastrophe of the dote deal we ended up with because it wouldn't go along with the compromises. and it's plummeting in the polls and general reaction to the tea appear is evidence of that. but the president was correct in his in statements to instincts to say something. but look at where the money and the world is going, they're buying u.s. treasuries. the u.s. credit is still good, and that would have deflected fr

alan greenspan said last weekend fundamentally this is not a credit event but a blow to the american psyche. i think the market was processing that on monday. at the same time we've seen declining consumer and business confidence, weakness in europe, in the european banking system. they have their own full blown crisis there. so the market goes down, then it recovers. the fed acts in the middle of the week and ben bernanke said we're going to keep rates low for two years. initially as they were releasing that announcement, first the market went down then it went way up. then the next day, down again. judy: and behind the fed's decision, jackie, it's interesting because they essentially projected two years of a weak economy. they said we're going to keep interest rates low. what cemented that view? it wasn't so long ago the fed was saying we're not sure. >> it's become pretty clear that you're going to have continued high unemployment. we've all known from the beginning pretty much that this was a downturn driven by a financial crisis. they're always slow -- it's slow getting out of t

remember the greenspan years of the 1990s and the wall street pundits and investors believed we tamed boom and bust economic beast and were forever destined to live in a goldilocks economy of steady growth, low price and near full employment? did we ever really believe that? we sure did. this week's guest yale professor robert shiller wrote about it in a recent new york time column as quote, the origins of the current economic crisis. a particular kind of social epidemic and speculative bubble that generated pervasive optomism and complacency and he said markets are driven by stories and word of mouth contagion. well the market story is far different today than it was a decade ago. this week alone we have more evidence of decelerating growth and nervous reaction to it. revised second quarter gdp turned out to be slower than initially report and below consensus forecasts and more recent reports from several reserve banks are showing spreading weakness in business activity. in a much anticipated speak in jackson hole, wyoming in friday where ben bernanke aed his qe2 policy a year ago he

. >> here's former fed chairman alan greenspan giving the downgrade a little more context. >> this is not an issue of credit rating. the united states can pay any debt it has, because we can always print money to do that. so there is zero probability of default. what i think the s&p thing did was to hit a nerve that there's something basically bad going on and it's hit the self-esteem of the united states, the psyche. >> the obama administration's reaction to the decision included some name-calling. >> i think s&p's shown really terrible judgment and they've handled theirselves very poorly and shown a stunning lack of knowledge about basic u.s. fiscal budget math, and i think they've drawn exactly the wrong conclusion from this budget agreement. >> the basic case is they made a $2 trillion math error and forgot to check their work, so the rating agencies that didn't make a $2 trillion math error re-affirmed the aaa status. >> still, behind the scenes, the political reaction for some democrats is grim. politico quotes one senior democratic official saying this, "this is a political the

former fed chairman alan greenspan had this prediction. >> the initial reaction in my judgment is going to be negative. what i think the s&p thing did was to hit a nerve that there is something basically bad going on, and it's hit the self-esteem of the united states, the psyche. >> reporter: s&p officials warned of a one in three chance of another downgrade next year if america's financial position gets worse, or political gridlock becomes more entrenched. and if today was any indication, away any s not goingcc1: time soon. with republicans and democrats still blaming each other. >> this is the tea party of grade because a minoritycc1: people in the house of representatives countered even the will of many republicans in the united states senate. who were prepared to do a bigger deal. >> well, i agree there is dysfunction in our system, and a lot of it has to do with the failure of the president of the lead.1:states to cc >> reporter: for many americans, the big question is when will fasternomy start growingcc1: and adding more jobs. secretary geithner tried to reassure americans that t

as a high speed looting high frequency trading high frequency looting every day goes on the alan greenspan of the world ben bernanke of the world the barack obama's of the world will say well that's how the economy works reading liquidity the system we're making a market but yet when somebody down at the ghetto steals an i pod somehow that's morally abhorrent it's the exact same thing they're morally equivalent you have to decide cameron what kind of society do you want they want to they want to go down a factory path and say there is no society we're just going to kill each other for the available few bucks a quid or do we have some kind of republic or some kind of civilisation but you can't have both you can't have just one set of rules for your friends and another set of rules for the people who aren't from the same school that you want to know because there's two sets of laws there's two sets of rules there's two sets of moral paths that are being managed at the same time and one happens to be controlled by the folks that are doing the stealing and there's not the ghetto kids but georg

host: opponents might say alan greenspan said we have to ease regulation because companies will know not to put themselves at too much risk. they will not go that far, and they did. guest: the financial crisis is a perfect example. why were banks and mortgage bankers making these ridiculous loans? you had a system because of fannie mae and freddie mac where you could make a loan as a banker in the financial sector to somebody and you didn't care what their income was because you know that you could take that loan and packages with similar loans and sell as a mortgage-backed security because fannie mae and freddie mac under regulation had no choice but to buy it. so yes, banks were making stupid decisions, but they did that because the government intervention created the incentive and it was alan greenspan's federal reserve that inflated the housing bubble in the first place. it is an outrage that alan greenspan bears more responsibility for the financial crisis than any other human being and has the gall to shift the responsibility on some canals. host: the morning, george -- good mo

greenspan was okay. i've done things up. women. i don't know.hamid, complex issue that i cannot deal with. bicycle i am concerned, a lack of expertise, but might thinking is in thinking full. the washing machine as is what in the internet has. basically the argument is that the house represented by the wash machine has reduced the requirement for household works on much that now we have a completely different labor market dynamic and family dynamic that comes from a lot of women working, having independent means. just changing the internal bargaining power in the family and many things. but i can i go into this. let me put it very simply. you know, the book is been jazzed into four languages and will come out and ten more. one of the countries and has already jazz's it is the netherlands. that was invited to judge cable-tv to debate it ditch professor. actually, you really liked the book. there was nothing to debate. to have a great issue. it behalf there is no time left. so i said i cannot really get into details, but have to break as in the ri

. >> look at the newgate greenspan eliminated. jackie sissel is live on treasure island with what is going on. it >> is still about two years away from completion but you are getting a look at what it will look like when it is finished. or new-line it's have been put on the catwalks. or previously used over at the carquinez to bridge. the catwalks will be used to strain the cable to the suspension tower that you see there. they will start work on that in a couple of weeks. this thing will suspension cable court is almost a mile long. it will use these 1/2 and topped tables. 5,000 mi. of cable ha. obviously this will be an all-day and all- night affair. you are starting to see what it will look like when it is completed. there will be like on the suspension cables themselves. or it is starting to take shape. >> kunis $6 million bridge is scheduled in an september 2013, just in time for the america's cup race. we will be right back has kron 4 morning news continues. 000000000 >> here is a look at your 7 day around the bay forecast.

greenspan talked about the emotions we're feeling right now. that's the thing. we're losing that faith. when we lose the faith, it's going to be hard. people aren't spending. we need people to spend money in this economy to boost back. we looked at all the information about jobs and those things not being there right now. we're in a really tough spot when you look at it from that standpoint, kyra. >> if i came to you and said i really have to borrow some money right now, and there's a lot of people that need to. how would you advise me? >> make sure you have tip-top credit to even get into that conversation about borrowing funds. if you do, go and do whatever you need to do right now. it's so uncertain. before we see any movement, look at that. on the mortgage side, we may see a better or improvement on the rates. ten-year treasuries are doing pretty well. what happens now on that standpoint, ten-year treasuries are up, then the mortgage rates go down. a lot of people are speculating that the mortgage rates are going to go up. we don't see that happening right n

into two wars, put a $7 trillion prescription drug plan on financial pile of our debt, and so alan greenspan testified before the congress in the first weeks of the bush administration saying bush could leave office, with our country debt free. what happened was the reverse. he doubled the debt, walked out with 8 million americans losing jobs. >> the time expired. >> they want to cut the baby in half. we choose not to default. >> the time expired. >> thank you very much. >> at this time, i yield two minutes to the next governor of indiana, my good friend from columbus. >> recognized for two minutes. >> thank you -- [inaudible] >> without objection. >> thank you, mr. speaker. i thank the gentleman for yielding. this is a challenging time in the life of our country. our economy is struggling, millions are out of work, and now with the more than $14 trillion debt, america is on the verge of having debt exceed our statutory rowing limit. if you have debts, pay debts. congress has an obligation to defend the full faith and credit of the united states, but this congress also has an obligation to k