and alan greenspan writes books. >> don't even get me started on filmore. all i'm saying with this is, look, we're now looking a year later for a pound of flesh. go after all the banks. to your point earlier on. then what do we do with all these punishments. i think in the end, they just go into a big, old pot. washington compounds the sin by sending the money they say banks were flagrantly using on the part of their customers. it's a vicious and critical circle. >> and the poor people in terms of their intermediaries who bought these bad loans and lost money on them, they get bupkis. they get nothing. and that's the real crime. it goes to the bureaucrats and not the victims. >> and this is andrew cuomo's problem. they prodded the banks to make these crappy loans. and the only way you could make them is through securitization and the federal authorities agreed to do that. >> do you think that those who took out the mortgages, $50,000 a year, took out a $1 million mortgage and you would almost think that person had his arm, you know, held. and where is his r

you cannot mean this is the greenspan argued.e impose tariffs on china, malaysia and the southeast's industrial base when hard goods anyway. it would not help the u.s. manufacturers. but if you look ridge a starter from command mentioned this earlier, in 1918 when an her off to the dollar. over about 20 years the rate went up to about eight and a half. this was not something that just happen because it happened. was an act of deliberate policy. the strength of the chinese compared to ourselves and the west and britain and america was the have a long-term view. american politicians are accusing the chinese of currency manipulation in the early 90's of manipulating the currency. charging the currency down to fly down market. of course their is a new president to run new cycle. cruxes american election cycle. >> a hermosa flow and was easy to forget it. as lenders -- for 86 china was running a trade deficit them were importing more than they were exporting. ahead with trade deficit. you could argue may hempen devalued. if a trade de

greenspan will do an excellent job. we are soliciting, through the economic summit, the views of a great many people from the total spectrum of the american society. their ideas will be vitally important in any new, innovative approaches that we take. so, i think, between now and the 28th of september, when i think the second day of the summit ends, we will have the benefit of a great many wise, experienced individuals in labor, management, agriculture, etc. >> this will give us new approaches that are wise and that official. governments and some commercial cartels, notably in saudi arabia, are restricting oil production, in order to keep oil prices artificially high. the u.s. cannot do anything about venezuela, but they can do things about cartels. what steps and actions will you take in this regard? >> i think this points out vividly the need and access -- to accelerate every aspect of project independence. i think it highlights the need for us to proceed with more oil and gas drilling. a greater supply domestically.

. >> host: what is your view of alan greenspan? >> guest: i'm a historian, so i look at what people do and they're sort of personalities, that's very important. and one of the interesting things about him is he loved jazz music. he played the saxophone in the 40s and he would suggest that he took the jazz approach to managing the economy. it was a very improvised. i quote people that worked with him and he said there was no plan. he was very savvy about markets and he responded very quickly to what the markets were doing and the most important thing in terms of his career was very early on in 87 in his tenure as the chairman of the federal reserve essentially in his own mind he saved the western world because of the crash of 87. the big wall street crash. >> host: which prompted a degree of self-confidence. >> guest: that was tricky at that time. you put huge amounts of liquidity into the system and effort the 29th by a disaster. once you do that early on in your career and you play those tunes again if you are successful doing one

see this ending and your opinion destruction of the dollar and they can't keep doing it you know greenspan had a low for too long and everybody acknowledged that they thought the correction was to make them even lower actually they're below one percent below zero right now they're negative because they're one percent or so but you have an inflation rate much higher than the governments will ever tell us so you have a negative rate and they even want to legalize they are in me and a negative rate so if somebody wants to put money in the bank you put in one hundred dollars in a year later you get ninety eight dollars back well that's that's pure theft when it comes to it when you steal wealth that way so no it's going to destroy the dollar and the dollars pretty vital it's crucial it won't be an easy transition and you're not going to all of a sudden see another another reserve currency pop up and it be very efficient the market if the market had to choose on this they would pick an asset commodity for money and the one that's been the most popular for six thousand years has been go. second

gold is the ultimate form of payment it's the settlement currency but what have they done alan greenspan testified twice before congress that central banks stand ready to lease gold in increasing quantities should the price rise they carry gold the bald gold out on loan is the same line item cash accounts receivable we know their top the same thing we're seeing in an environment where an assets being with the price of the assets being suppressed not supported not by users but by owners and not for the obvious reasons to say interfere with the interest rates to interfere with the pricing mechanism of you know half of all the transactions and so we don't know what things should cost we don't know what a barrel of oil should cost or what a mentor warship should cost or what our suit should cost or our food you know and as these food prices go up social political geo political crises the arab spring you know was a really the tunisian kid selling fruit that would himself on fire that started it or was it food prices going up and people not being able to eat historically when the price of food

you brought that up because transcripts from a two thousand and two f o m c meeting show that the greenspan fed was worried about deflation after the technology bubble burst and that that and the bats was a key reason for leaving rates so low then now after the housing bubble burst similar figures have popped up in a responsible for the fed's zero rate interest policy today so mike my question is where do you see this ending and your opinion destruction of the dollar and they can't keep doing it greenspan had too low for too long and everybody acknowledged that and they talked to a correction was to make them even lower actually they're below one percent below zero right now they're negative because they're one percent or so but you have an inflation rate much higher than the governments will ever tell us so you have a negative rate and they even want to legalize they are in me and they are negative right so if somebody wants to put money in the bank you put in one hundred dollars in a year later you get ninety eight dollars back well that's that's pure theft when it comes to it when. steal

gold is the ultimate form of payment it's the settlement currency but what have they done alan greenspan testified twice before congress that central banks stand ready to lease gold in increasing quantities should the price rise they carry gold the bald gold out on loan as the same line item cash accounts receivable we know they're not the same thing we're seeing in an environment where an assets being with the price of the assets being suppressed not supported not by users but by owners and not for the obvious reasons as to interfere with the interest rates say interfere with the pricing mechanism of you know half of all the transactions and so we don't know what things should cost we don't know what a barrel of oil should cost or what a mentor warship should cost or what our suit should cost or our food. you know as these food prices go up social political geo political crises the arab spring you know wasn't really the tunisian kid sell on fruit that would himself on fire that started it or was it food prices going up and people not being able to eat historically when the price of food

along and that is when greenspan woke up so morning saying, we're japan. we are heading for deflation. we need to lower interest rates to 1%. you cannot tell me -- bernanke all denies it. that this had an impact because the real estate boom was worldwide. will guess what? the dollar is a worldwide currency. if the fed lowers rates to 1%, it is going to have an impact all around the world. flowed easy money that during that time was just unbelievable. so, i blame. there are a lot of people to blame here. and you also have to blame wall street. wall street just walked into it. in a deregulatory environment, which was there at the time, wall street has to be held accountable for their excessive creativity, but ultimately, my argument is that bad government policy creates bad business practices. if government sets the right rules like they getting canada and australia, you would not have had this crisis like you did. so, there are plenty of people to blame. yes? >> yes, sir. if i can have your view on this. as we look at economic strategy, america has been --

greenspan, bernanke, the top investors on wall street all got it wrong. they were all shocked by the financial meltdown. they came up with words and phrases, 100 year flood and excuses that they all got it wrong. it's a bunch of outsiders aren't guys, colorful guys the guys i wrote about my last book. there's a guy named john paulson who is a hedge fund manager got to be funny here but he didn't know anything about mortgages are housing. as recently as 2006 they made $20 billion for investors and five to 7 billion for himself. he's not the guy you would expect to be a household name. he was just an average single 10 i call him. he doesn't like that but -- into wells anticipated the financial meltdown? there's a guy named jeffrey greene. jeffrey greene was a real estate investor in los angeles but not the person you expect to see something that greenspan did. the best man, the best best man in at his maddening -- wedding was mike tyson the boxer and he had a houseguest for a while. heidi fleiss, remember her, the hollywood madam so unusual guide and yet $5

greenspan, bernanke the top investors on wall street all got it wrong.they were shocked by the financial meltdown. they came up with words and phrases. 100 year flood and all kinds of excuses that they all got it wrong. and who got it right? is a bunch of outsiders, guys, colorful guys that i wrote about in my last book. there's a guy named john paulson who was a hedge fund manager not too far from here but he didn't know anything about mortgages are housing and as recently as 2006 and yet in 2008 he made $20 billion for its investors and five to 7 million for himself. he's not the guy you would expect. he was just sort of an average singleton i would call him. he does this greatest trade ev ever. there's a guy named jeffrey greene. jeffrey greene was a real estate investor in los angeles but also not the person you would have expected to have seen something that greenspan did. he got very married very young in life. the best man in his wedding was mike tyson the boxer and he had a houseguest for a while before that. heidi fleiss, rumor heard the hollywo

your calls onto stocks, i want to play for you --, and that alan greenspan comment that alan greenspanhe week. >> there were covered so sharply and for so long, you have to assume somewhere along the line they are going to get significant correction. we are not say that grossly overpriced at this point in the historical context. >> are we in the midst of a significant correction? >> no. i do not think we are in the midst of a significant correction. i think what is happening is that there is regional tensions, more geopolitical issues. i think that that is going to be a negative for the global economy in terms of growth. growth, but we are not getting inflation, which will keep the federal bank on hold which will be good for the bond market. we think that bonds are pretty decent. >> you have the gm numbers? >> coming out with a miss in terms of the consensus. july auto sales rose 9.4%. this is a disappointing number if you look at what would be expected gain. to reportl expected increases year-over-year. number, wage inflation in particular, that investors have been watching very close

. >> and just getting back to the fed, ill, we had -- you know, we had former fed chairman alan greenspano where he talked about the economy, and he was a little less enthusiastic about the economic situation here, and i want to just play part of what greenspan said to us. >> we are running out of buffer in the economy. we do not have the capability, should, for example, we run into a major conflict in the middle that requiresere a major increase in our defense budget. our defense budget is headed in the direction where in two or three years it will be at the lowest level relative to gdp since before world war ii. we do not have the physical resources. >> right. >> similarly, we do not have the physical resources to respond to global warming. >> would you agree? >> well, of course, that is not about the federal reserve at all . >> no, it is not about the fed. >> i would agree that we have a problem. i would say we do have a problem, but it is primarily a budget problem. it is that we're squeezing down on defense and on other things because of the significant fiscal deficits that are proje

alan greenspan warned against irrational exuberance and then the bubble crash ed and so peope hear this and they say, i could make a lot of money before it crashes. >> yes, and so people need to caveat it by it may be different. if you look at how the dow is up, and the s&p at record highs, and there is reason to understand why this bull market is looking mature, and the valuations are maybe getting stretched, but the problem is whether that is a bubble, because it is very, very debated issue. one thing that feels different, chris, you and i covered the other bubbles bursting. at the time, there was a private sector herd mn mentality and everybody running in, and nobody worry worried, but they ran for the exits at the same time. and this bubble is being driven by the central banks, and they are move ning to the exit, and waving the flag, and with the possibility of the excesses they are deflating without it bursting in the disorderly way, but it does not mean correction, but it is not going to be feeling the same as bubble bursting. >> and what about tech? people say it feels so bubbley

recent comments that we saw from alan greenspan when he spoke about hubris. russianothing to stop and they ran for three years. we think yellen is in a similar position. we think she is nervous about some of the valuation but we do the primary will be concern. the primary concern is for the labor market. quickly, you are overweight for european stocks. a lot of talk about equities in europe. the possibility of qe for ecb. what has driven your move to redirect? , you get a monthly investor and fund managers gather to discuss views. over the past few months, there's been a lots of discussion where people of them bullish on your. what has been key is people thinking the economy will recover. after contracting for so many call it the earnings starting to grow and margins increasing. it is coming through. if you look at what happened so far this year, we have not gotten there. say-year-old weighing on earnings. in the second quarter particularly. we had some more witnesses there. weaknessesssist -- theres. >> we will catch up with you in a minute. we will talk by

the gulf between an alan greenspan and a wayne angell was pretty deep accident. think it mattered that much. david zervos with an update on important speech. coming up, retail will be out this morning. that brings up our twitter russian. what are you willing to pay full price for? ♪ >> good morning, everyone. that is correct, the lights are out on atlantic city. all-day coverage tomorrow on the that chrisles christie and all of new jersey are having. i guess i will call it an albatross around their industry. this is the industry -- interesting policy of atlantic city. we will look at that all day tomorrow. worldwide tou all our headquarters. i'm here with adam johnson and olivia sterns. scarlet fu is off today. sports.ey owned they now have plans to go granular. they will cover the southeastern conference. betty liu joins us with a new newe on the new s -- the espn. how big a deal is this? >> it is a big deal. college sports is a big deal for not only sports, but the television networks. you guys know the big ten network. now there will be the sec network, which

. >> i was talking to phil gramm and alan greenspan about testimony on a surplus.span had the courage to say that they are bad features at paying down the debt. what is bad about paying our bills? >> there is nothing bad. i just want to say this. my model for the 10 year treasury yield shows that as a result of the massive reduction from 5% to 3%, that would have reduced the value of the u.s. government 50 basis points on the 10 year yield. we have already gone to a very low rate. faster than any other country has managed to do it. >> that is good. i'm 100% with you. what happens when rates go up and u.s. borrowing costs, because there with the debt -- >> ou worrywart. >> yes. up, butdebt has gone household debt has gone down and corporate debt has gone down. the rest of the world has gotten a lot more leverage in the last couple of years. the u.s. is one of the fewest economies that can limit high interest rates. the world is going to really struggle. >> a substantial part of u.s. data is short-term. the fastest-growing part of governments pending is going to be i

here's another article that shows you what the interventionist of the likes of mark carney of alan greenspan ben bernanke and janet yellen of everybody who's been at the e.c.b. average cost of reason a child hits two hundred forty five thousand dollars to recent child born in twenty thirty to the age of eighteen it will cost the middle income couple just over two hundred forty five thousand dollars according to newly released estimates from the u.s. department of agriculture that's up four thousand two hundred sixty dollars or less two percent from the year before it does not include the cost of university college or anything like that and it's also making capitalism look at this and they said well this is a ten fold increase in the cost of raising a child from one nine hundred sixty and if you average that off that's actually four point four percent inflation per year since one nine hundred sixty so that exposes this inflation right four point four percent inflation is closer to the actual rate of inflation the two percent that the government talks about there are enormous amount of one hun

greenspan could not understand why the 30 year was below the ten year. he called it a conundrum.g 2008, nine, ten, 11 was coming. this bond market, smarter than the stock market, signaling to us that we will be low. >> the ten year, about a year-and-a-half ago. what is the stock-market done? , straight up. >> the velocity is zero. out sodomy is not going. federal reserve as part $5 trillion in the systems command we still have argentina defaulted on loans. the bank in portugal. major financial problems in europe. money is not moving. since. charles: you bring up some great points. also, when the yield is that a 500 your love that is some kind of a yellow or red flag. >> i like his point about barring a margin. people have been spending even on the individual side on credit. margin is essentially having credit out there and making, you know -- borrowing money on the margin. this is kind if -- >> what is the rate on margin? >> about two and a half% from an all-time high. more that overdue. series of bad. charles: you know the reason i do is show. we bring them on. nothing gives me

even alan greenspan is weighing in saying it is time now, the markets have been on such a steady clipturn around. why do you think this is an election point now? >> i think it is an inflection point now because the fed took us to this point and now it's up to the economy to get us to the next point. and even to justify where we are. of even just a week ago of 4%, to show that we are on track to justify the market and to get it to higher levels. >> what will give us a correction? we have had so much geopolitical risk. nothing has sent the markets down 10%. >> over the weekend, it was a taper tantrum last week. that got the market going. and we have global geopolitical uncertainty in lots of places -- israel, and the ukraine is what is affecting the market today. and isket is tired looking for any excuse. it is probably really healthy. >> where do you weigh in on valuation? >> i think valuation's are fair, not cheap. but they will look cheap in retrospect if, in fact, the economy is on a 4% or more growth rate for the next couple of quarters. belief, you can safely invest. if it is not

he warned that the financial innovations most in the audience, including then fed chair alan greenspanng the financial system safer were actually causing a financial meltdown. three years later, he was proved right. in the wake of the 2008 financial crisis, the annual meeting was ceased upon by ben bernanke to signal significant shifts of monetary policy including asset purchases which helped balloon the fed's balance sheet to $4.4 trillion. there year it hosts janet yellen, and gauging the strength of the u.s. labor market, a discussion that could see passions run as high as the backdrop of this powerful gathering. patricia sabga, al jazeera. >>> this issian net's yellen's first appearance to the conference this jackson hole. market watchers are going to be playing close attention to every word, right, chris? especially interest rates. labor is the theme, though. a lot of people think unemployment rate. but she is going to talk about a lot more, right? >> yeah. for years we looked at basically the unemployment rate to tell us the health of the market, but now there's more retired folk

allen greenspan and ken langone come to mind. so clearly the school has considerable full with influencers. what skills will they learn about leadership and technology and much more? our week-long special continues now, with the dean of the nyu stern school, peter blare henry, a frequent guess on power lunch. conner, let me let you go ahead of your boss there, and ask about what the students are coming in now wanting to learn and wanting to scuddy. how tars it changed from 10 or 15 years ago? >> sure, i think there's a pretty big difference from, of course, 10 or 15 years ago. the hot topic we are seeing right now is business annual illustratics, how to deal with big data, even with our center for business analytics, we're seeing it spreads across all industries. for them it almost doesn't matter what they're going to study, as long as they know that. i think some of the courses we are seeing are data-driven decision-making, for example. really interestingly there's a big demand from mba students to learn how to code, which i fou

. >> politicians created it. [ inaudible ] >> that alan greenspan encouraging the kind of loans, too. it was all over government. >> politicians perpetuated this. they wanted to get re-elected. they were using our money with no consequence of the future. they didn't care at all what happened to the subprime loans or what happened to fannie and freddie or all the rest of it. all they were concerned about is getting re-elected so they made promises they could not keep. >> i disagree with that. >> they made americans feel they are entitled to the bigger, better house. neil: you know politics very well. john kennedy's success says a thousand father's failure is an orphan. and orphan say bank. no saints but plenty of others. >> they have their house forecloseed. >> half of the b of a settlement is not paid in cash, it's reductions in mortgage amounts. >> they're going to wear that out, david. the bottom line is if you see that -- >> i will see that. neil: i've got a new subprime loan. >> b of a already paid 60 billion. >> countrywide and merrill lynch -- [ inaudible ] >> you want me to be

can control and manage a fairly intensified policy debate, whereas the previous cheer bernanke and greenspan were able to control that dissent, control the policy. it's not obvious that janet yellen is able to do that. liz: all the more reason, jon, they are waiting to hear what she says on friday. keep it to today for a second. what jumped out on you in these minutes? >> i want to come back to what you were talking about about, fear and how that relates to the minutes. you know, i talked to a lot of officials in the last couple of months who have been really surprised and a little worried that the markets look complacent. they've been dropping all kinds of hints. yellen said in july, we might have to move rates sooner than we expected if the economy keeps improving more than we expected. liz: why is that fearful? why should i be scared that the economy is improving and see rates tighten a little bit, jon? >> that's good news for everybody. but what the market doesn't seem to be pricing is that it will happen. if you look at short-term interest rates and futures markets, they don't believe i

not to mention greenspan talking about the much-needed correction. i think the market participants had been used to seeing a correction in sector by sector. they were down 1%, 2%, what i find interesting, just coming in, the russell 20 on 00 seems to be a place that money may be going to work right now, while the large indices are continuing to see the pressure in a broad base. >> i would concentrate on the economic news. ism services numbers were terrific overall, right across the board, hiring, everything on that was good. yes, the fear is higher interest rates. if we get a spike in interest rates, that will hurt the market, but the economy is slowly getting better. >> high interest rates are an indication of health. our old friend art cashin will tell you our pricing prosperity. while this happens and asset managers have to reset their marks, it's the fact of the matter you should be using the sell-off of the market that's not really oz properly based. this is an indication of health that things are getting better. >> we've got to leave it there.

is it going to be a case where greenspan waits too long to take the punch bowl away. >> they will bepependan, youyou can't fight 3 feds, theye not raising it yet, but they will raise it eventually. if earnings get better. gerri: not just the fed is it? >> that is a buying opportunity. if rates go up, as ed said, you have to look at our allocation, that is 90% of the return of your portfolio. >> they are not going to shock the system either. gerri: i was going to ask you, ed. as an individual investor, some day the fed the act. so what do i do? >> well, it depends, don't rush into anything. nothing is happening that quickly, but maybe this is a good time to take an inventory, of your diversification, inside your retirement account where taxes are not a factor and outside. then when you see what your mix is, and talk with our advisor or whoever you work with on your investment, then you might want to say, if i think that interest rates are going up maybe i'll sell-off some stocks uthen you have to look at tax effect, in a retirement account you don't have to worry about the tax effect,

bernanke said it, greenspan said it, and yellen says it, they believe that if the stock market is higher then the economy is doing great. melissa: not true. hasn't happened. >> not true. melissa: veronica? >> i think he's out of touch with who the ceo are. a lot of the ceos in america are small business owners. they're struggling to make it, they want to hire, they want to do more. they've got all the regulations and tactics. he's made their job harder. >> point out it often happens when the stock market goes up, the economy is fine. but hasn't happened this time because you had a convoluted -- very expansionary monetary policy i.e., printing money, lowering interest rates, you had a contraction despite the stimulus, what do they do? obamacare, dodd-frank, higher taxes. when you combine the schizophrenic policies, you get what you have now. melissa: i would take a complaint from the federal authority with a grain of salt. they always complain, that's their job. >> they don't always complain. >> charlie, the stock market is up because of the experiment we've never had in history. when you