greenspan is admitting the truth. but greenspan did not go far enough. the model did not work. i just described one crisis after another. crises damage the nation. they damage the nation permanently. and over this time -- and one of the things i find most fascinating and most difficult to understand is that it is very clear our economy performed poorly since the 1970's by basic conventional economic criteria. why do we keep hearing differently? why doesn't the media come to terms with this more clearly? some do. let's not pay with a broad brush year, but many did not. why do we read from economists who have some political points of view that the economy did very well jack what happened to? wages hardly went up, and for male workers wages are actually lower when you account for inflation today than they were in 1969. how can you declare that an economic success? we never had a time in american history where we did not rise. significantly over 30 to 40 years. that is an amazing fact of life. other prices rose. the price of mike lowry ovens went down, we are told what this all the

to be less regulating of fraud and alan greenspan was one of the maestro's of allowing fraud to flourish as a way to provide liquidity to the markets ok let's examine that for a second the supply of financial products that are all based on debt and debt is the killer. of the economy and people demanding more debt is not the same thing as fulfilling all supplied her with a demand curve this guy larry summers is an abomination everything touches turns to garbage he uses position the government to invest in things like square that new online start up company insider trading inside information market manipulation another terrorist christine legarde son i'm all the time i'm all stacy ever don't go away stay right there all going to talk about more stuff you to stay there. and discover its beauty. communicate with you want to. test yourself and become free. see what nature can give you. three. three. three. three. three. three blown video for your media project revealed don carty dot com. welcome back to the kaiser report i mean those days are a bit we're talking about the global preeminent. f

it will simply upset the great thing that it's their assumption this this is the organ that alan greenspan made for the us not involving itself and in derivatives markets about precisely parties and current parties were fully informed and they're a consenting adults well absolutely and alan greenspan also confessed in testimony before congress congressional committee october twenty three two thousand and eight that he had been shocked by the fact that things went haywire he said football in forty years. what i thought was fairly sound. assuming that this was so. great in that market participants would not get themselves into a pickle and the chairman of the committee said are you telling me mr greenspan. wrong. and these are yes precisely the the you know when you have this when you have this assumption it is better went in with this attitude toward i.q. lation this is a less of fear and. no less. smith said. nations that of course. paper bunny have to be regulated. this question has been sold to the winds by mainstream economists mainstream monetary economists by the washington consensus.

the current parties were fully informed and they're a consenting adults well absolutely and alan greenspan also confessed in testimony before congress congressional committee october twenty three two thousand and eight that he had been shocked by the fact that things went haywire he said football in forty years. what i thought was fairly sound. to assure me that this was so liberating that market participants would not get themselves into a pickle and the chairman of the committee said are you telling me mr greenspan the world for you was wrong. and these are yes precisely the the you know when you have this when you have this assumption it is better well then with this to to to it i can lucian this is if there are less of fear and. no less. smith said wealth of nations then of course. paper bunny had to be regulated. this question has been thrown to the winds by mainstream economists mainstream monetary economists by the washington consensus. and ok that's one and perhaps the austrian school. well i'm not much into that the . that is associated problem here and it is the notion that. mone

thanks laura and back in washington former fed chairman alan greenspan is out with an article in the financial times today titled meddle with the markets at your peril a direct warning to the world's policymakers and government officials when he was fed chairman many argue that the pedal was already floored to the market metal sounds like a tongue twister don't worry we're a former fed governor alan blinder in studio with us who was under chairman greenspan to help us on tires and why we're busy on time the mystery of the temple men in europe are busy tying the continent closer together billionaire investor george soros had his own op ed in the financial times today where he proposed a plan that would allow the bond market to keep governments on a quote short leash plus they risk losing precious u.c.b. facility access warren with a buzz on this other special interest from davos in a moment so let's say that there is capital account. well it's day two of davos and the eurozone crisis remains a main focus george soros was recently out with an editorial advocating for more europe as a s

to be less regulating of fraud and alan greenspan was one of the maestro's of allowing fraud to flourish as a way to. to provide liquidity to the markets ok let's examine that for a second a supply of financial products that are all based on debt and debt is the killer of the economy and people demanding more debt is not the same thing as fulfilling a supplied curve with a demand curve this guy larry summers is an abomination everything touches turns to garbage he uses position in government to invest in things like square that new online start up company that insider trading inside information market manipulation another terrorist christine legarde son of all the eggs to hang them all states never don't go away stay right there all going to talk about more stuff you to stay there. we have seen the damage it has done to our environment more chemicals quit the poor props we do not want any more new dmoz. a core system is just as there was a dismal experience and i'm just i'm just appalled that that's allowed to go on. eating this unfortunately because we don't know what's in it there's no

and we even take a look back at an unlikely advocate formal central banker and currency lover alan greenspan in lighter news you could say out of this world claims since we're on the paranormal will we see u.s. president barack obama's foreign policy go intergalactic in a quest for gold stolen by aliens we'll tell you at least how the white house responded to claims the chief executive has been teleporting to mars let's get to today's capital account. so just what can we expect in two thousand and twelve well co-founder of the largest bond fund in the world bill gross says this is what we can look forward to it's as if the earth now has two moons instead of one and both are growing in size like a cancerous tumor that may threaten the financial times oceans and economic life as we have known it for the past half century wiping out that surfer dude could be an investor it could be you it could be to financial system so how did we get here what chance is there for financial freedom and what protection is there from tsunamis created by central bank printing also is gold a safe haven and if so wh

alan greenspan presided over the first meeting of the year.now secretary tim geithner, then the head of the federal reserve bank of new york said into the record, i'd like the record to show i think you're pretty terrific, too, and thinking in terms of probability, i think the risk that we decide in the future that you have been even better than we think is higher than the alternative." the greenspan reputation has not matched geithner's predictions,s that. >> no, there are many people who subscribe to that view at this point. this was a remarkable sendoff for a man who was regarded as the iconic central banker, the person who played that role better than maybe anyone else ever had. he guided the economy through almost two decades of fairly steady growth. people thought the economy was ill on an upward trajectory at that point and his colleagues praised him to the sky. one called him yoda-like, and another said he left behind for his successor, an economy that was a tennis racket with a giant sweet spot and they thought he had been great. >> s

in other words, i went with sandy to call on chairman greenspan. we told him we were contemplating this merger. but that it would required that the fed would be prepared to grant us permission. and we were assured that they would. we went and saw the chairman of the house banking committee, the chairman of the senate banking committee. and we said we're talking about this merger but it could not take place if we were not assured that it would be approved at the congressional level. we talked to the secretary of the treasury, i don't recall -- >> robert rubin? he was the secretary of the treasury at the time. >> yeah, we would've spoken to him, i'm sure. and had bob rubin said, "no, the treasury feels this is wrong," we would've been careful. because obviously, the treasury recommends to the president on an issue of this sort. and there was no argument. no one said, "we'll have to think about it." and so a consensus built up. i don't think it started in the fed. i would guess it started in the industry, it certainly got into the congress. >> by elim

look who's responsible for that to me three why it's the fed in two thousand the greenspan fed came in and bailed out all the banks that then made. bad loans to dot com companies bad loans to foreign governments like argentina so in the wake of that greenspan purposely he told a housing bubble who did that benefit that benefited the bankers that benefited wall street brokers that didn't certainly did not benefit anyone that bought a house had their property taxes go up and up and up only to see property only to see their property prices stay high while the housing crash plunged wiping out stock market in the process then what is what is the bush administration do what is the obama administration do we bail out the bankers who does that bonus well that benefits the banks that benefited wall street that we have record bonuses back once again so you know you want to look for the source of the income inequity that they're talking about their thought it comes from the fact now it comes from you know i think you're not going to disagree for me on that actually when i got out of college one o

thousand and six that we find there is a lot of laughs in there a lot of praise for outgoing alan greenspan and a lot of talk about the fact that well we can't predict the future nobody can expect us to predict the future and yet they thought everything was going to be just fine you know josh we could start with you what do you think that really tells us in this transcript that we've seen. i guess it tells us more of the same but it's still interesting how. you know the federal reserve was asleep at the wheel you know it's interesting because that kind of time going along with what you were just talking about how you know there's people on the right who very much don't like bailouts but yet they're supporting mitt romney who private equity exists because of tax loopholes that's a rigged game private equity firms take no gamble when they invest in a company. and here they're upset as people should be in my view that the government was completely asleep at the wheel didn't see this coming and i think as william just said i mean a lot of things have been papered over unfortunately i still thin

what greenspan called the hidden hand presidency. it was this policy of moderation around the principles of gradualism, caution, minimum government intrusion which eisenhower believed would offer the best sense, best chance, in other words, of solving the difficult problem of desegregation. seeing eisenhower do this, many civil rights activists hoped that it would now be directed towards ending desegregation throughout the country but they would be disappointed. the same rationale would preclude him from launching segregation in the schools of the individual strengths. eisenhower knew the real battles over segregation of the school systems would occur in the deep south. and aum though he often stated based on race, color, or creed is morally wrong, he also acknowledged that the desegregation of public schools in the south would entail very serious practical problems, not the least of which is what eisenhower talked about deep-seeded emotions of the persons in the region. the eisenhower administration did a little to challenge school

alan greenspan of the free market? >> in history it is notoriously difficult to determine cause and effect but going along with what you mentioned in 1933 franklin roosevelt and congress passed a number of banking regulations to ensure that banks don't do they had done during the 1920's, namely to take depositors money and invested in the stock market. it seemed like a good idea. as long as shares we're going up. while they could land that out on mortgages they could make 25 percent per year on the stock market. they pay depositors 2% in then the rest is seem like a wonderful thing into the stock market crashed. than the depositors rather than buying shares of stock with the perceived greater security in the bank's bank's, found they have lost their many. under the roosevelt administration the democratic new deal passed a resolution. those regulations were in place through the 1990 and repealed in the late 1990's and eight years later we have the financial crisis of 2008. it is impossible to prove beyond the shadow of

leading up to this is the comments about deregulation or regulation by the banking industry, alan greenspan's philosophy of free markets. >> in history it is notoriously difficult to determine cause and effect but i will just say going along with what you mention, in 1933 franklin roosevelt and congress passed a number of banking regulations trying to ensure that banks not do again what they had done during the 1920s, namely they took depositors money and they invested in the stock market. and it seemed like a really good idea. as long as shares were going up because while they might be able to land it out that 3% on mortgages, they could make 25% a year on the stock market. and they were paying their depositors 2% and pocketing the rest. it seemed like a wonderful thing until the stock market crashed in 1929. and in the depositors, who would put their money in banks rather than buying shares of stock themselves because of the perceived greater security in banks, bound that they had lost their money and they had no reward. so, under the roosevelt administration, the democratic new deal congre