alan greenspan: if we get it is the question. you can't get growth going so long as entitlement expansion is anywhere near where it's been recently. it's eating up the sources of investment and the sources of growth, and you can't have it both ways. you cannot fund all of the entitlements everybody wants and expect that you are going to get a gdp out of that of 3% or more at an annual rate. the arithmetic doesn't work. maria: that's why they are trying to slow count growth of medicaid involved in this bill right now. don't go anywhere. we have so much more to talk about. we have more with dr. alan greenspan when "wall street week" comes back. >> announcer: fed chair janet yellen says the economy is much safe were. but what has alan greenspan worried? this lovely lady has a typical airline credit card. so she only earns double miles on purchases she makes from that airline. what'd you earn double miles on, please? ugh. that's unfortunate. there's a better option. the capital one venture card. with venture, you earn unlimited doubl

but what has alan greenspan worried?and i ♪i will always love you, i ♪i will always love you ♪i hope life treats you kind ♪and i hope you have all you've dreamed of♪ ♪and i wish you joy and happiness♪ ♪but above all this i wish you love♪ ♪and i will always love you ♪i will always love you, i ♪will always love you ♪i, i will always love you, i...♪ someone is diagnosed with a inblood cancer. light the night brings together survivors and supporters to bring light to the darkness of cancer and to help fund life-saving research. our goal is a world without blood cancers, and we're lighting the path to cures. the discoveries made in blood cancer research have led to break through treatments for many cancers and other serious diseases. help defeat the darkness of cancer! join light the night today. >> i think the system is much safer and much soundser. as i mentioned, we are doing a lot more to try to look for financial stability risks that may not be immediately apparent. would i say we'll never ever be in another financial cr

but what has alan greenspan worried?en it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. [ intense music playing ] ] it's here, but it's going by fast. the opportunity of the year is back: the mercedes-benz summer event. get to your dealer today for incredible once-a-season offers, and start firing up those grilles. lease the e300 for $569 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. >> i think the system is much safer and much soundser. as i mentioned, we are doing a lot more to try to look for financial stability risks that may not be immediately apparent. would i say we'll never ever be in another financial crisis? probably that would be going too f

the way back to greenspan to see the average inflation rate in and around their actual target.yellen is failing. do they have a credibility problem? >> i think you are spot on. the goal of reaching 2% core pce has been a loose goal. if you look back over the last few decades, there has been some time between 2004-2008 when the core pce has been consistently above 2%. but barring that short period of time, we have not been able to achieve 2% on a consistent basis. jonathan: we did see through the week a tendency among fed officials to be leaning toward the balance sheet policy, and away from using the fed funds rate. is that what you expect as well? an additional question, is the balance sheet policy data dependent or independent at this point? >> a bunch of questions there. i do see that, the fed, you know , the balance sheet unwind if you will, our expectation is they will announce in september and start the balance sheet in october. we do expect to see one more hike in december. and i think our expectation is that the balance sheet, the way that they want to do it, is put it

jim was the only senator to vote against greenspan's success ore, ben bernanke. in addition jim was vocal in his criticism of the sport he loved so much, baseball. he spared neither management for players. he called for a revitalized commissioner's office and succeeded in narrowing baseball's anti-trust exemption, he was an early proponent of drug testing. his views on these issues did little to endear him to the national pastime's powers that be. but once again, jim went his own way. perhaps the past kmabest example extension over $10 billion in unemployment insurance. not long before the great fan dpar the senate passed a rule that ensured that new spending had to be paid had to be paid for. the unemployment insurance measure was exceedingly popular but it was not offset, in other words, not paid for. a unanimous consent request was made on the measure and jim objected. in the senate there is much truth to the axiom that the chamber moves in two ways. by unanimous consent, or by exhaustion. if one senator is willing to object to a request the senate remains in

you know, 20 years ago, alan greenspan was also referred to as the most powerful man in the world ase controlled the big monetary tools he's had. a fiscal tool and a monetary tool and that's how he controlled the economy. i think we are going to look back on that. as the jurassic period of economics. when you go into the big dig era and we are about to entry. three, four, five years from now where there's 50 billion devices on the internet. they internet. they'll preassigned information on economic activity to the block level, this part of the store versus the back of the store. when you look at economic data right now, first of all defined by national boundaries, which is a very crude, the correlations within the boundaries of the country are very mixed. but i could come up with the new data and stands, what you become 10 million people who are almost exactly like me and i could come up with new stimuli that i could use, but i would also be able to do it in real time. one of the biggest innovations in using technology 20 years ago was in new york city, they introduce something calle

inflation target, you can look at the history of fed chairs, you have to go all the way back to greenspan to see the average inflation rate in and around the actual target. bernanke failed. yellen is failing. have they got of credibility problem? >> that's absolutely spot on. the goal of reaching 2% core pce has been a losing goal. if you look back over the last two decades, between late 2004 and 2008, when it had been consistently 2%. but barring that short period of time, you have not been able to achieve 2% on a consistent basis. jonathan: what we saw through the week was a tendency among fed officials to lean toward the balance sheet policy tool and away from using fed funds rates. is that when you are expecting as well? and an additional question, is the balance sheet policy data independent or data dependent? do see the balance sheet unwinding and our expectation now through september is to start the unwind in october and we expect to see one more hike in december. that the wayon is they want to do it is to put it on autopilot. unless there are similar issues that warned to change,

greenspan great on monetary policy but not too good on regulatory policy.riedeople about that going forward with the trump administration. gary cohn is a smart guy, a market guy. he has a view of the fed and a monetary policy, i present, that is dominant on markets, which is a different view from, say, the ben bernanke-janet yellen view, which comes more from the macroeconomic side. does not think the first or second digit of the unemployment -- one take in the and of limit rate on a friday is a cataclysmic event that you should go crazy about. scarlet: michael mckee will stick with us from the fed. we are watching the white house press briefing. secretary sarah huckabee sanders speaking, restating that president trump remains disappointed in his attorney general jeff sessions, adding that the president has likely not spoken with sessions this week. we will bring further updates as we get them. from new york, this is bloomberg. ♪ scarlet: this is "the fed decides." i am scarlet fu with tom keene. michael mckee also joins us. we have a speed round for final

this created worker insecurity by design as in fact the phrase growing worker insecurity is alan greenspan's kind of running. the system as if it is head of the fed but when he was testifying to congress and the success of the economy he was running he attributed a large part of it to what he called growing worker insecurity saw as a good thing that's the implication because it keeps wages now it keeps people workers for asking for benefits it keeps inflation low and it breaks you know to keep profits and it makes it very hard to organize and he points out intelligently that this growing worker insecurity is so extreme that even when unemployment is down as it was in the late clinton years still the same conditions apply workers are just afraid unions are being destroyed and this is part of the what was called the great moderation the success by economists' the success of the neo liberal programs which had the effect of that to say but in two thousand and seven before the crash a real. wages were actually lower than they had been in one nine hundred seventy nine when the neo liberal experime

this was this created worker insecurity by design and the phrase growing worker insecurity is alan greenspan's. kind of running but edging the system as head of the fed but when he was testifying to congress on the success of the economy he was running he attributed a large part of it to what he called growing worker insecurity saw as a good thing that's the implication because he keeps wages now. the national weather service in the early virginia has issued a special marine warning for chesapeake bay from north beach to drum point marilyn chalk and river to cambridge maryland in the middle child and river banks and river to booms island merriment ten years sound in the inland waters surrounding bloodsworth island intel six forty five pm at five forty seven pm a strong thunderstorm was located near broome island moving used to twenty knots. hazard wind gusts thirty four knots or greater source radar indicated impact boaters and small craft could be thrown overboard by suddenly higher winds and waves capsizing their. location pack to include truck on creek green road state park drum point james

think about it. 20 years ago, allen greenspan was referred to as the most powerful man in the world because he controlled the big monetary tools. that is how we control the economy. but i think we will look back as the jurassic period of economics. when you go into the big data era, they will give real time information on economic activity down to the block level and the front versus the back. i can come up with new stimuli and i can do it in real time. one of the biggest technology is in new york city they introduce something called the police data tracking system. it took three days to determine when there was a crime and you can redeploy people and in my opinion it in the butt. we can do the same thing economically. we don't have to wait three all of the things that i just talked about. and i find that most academic the part of history that is interesting to me is the disruptions. the ones that are like this. whether it is the industrial revolution where the reformation and is a different level. i'm interested in hearing this. they are changes that occur across all areas of society. in t

this juncture and really a changing of the guard for the last thirty years in the culture that alan greenspan started at the fed i welcome anybody who's not an academic ph d. on to the forum see with open arms if we hear about developments in that in that area we're going to bring you on like a display thank you so much for telling us how you fill out this and giving us all this great information daniel de martino both founder of money strong and author of fed up an insider's take on why the federal reserve is bad for america. a man shows up to fix an a.t.m. and winds up completely trapped inside corpus christi texas a contractor was changing the lock to a bank of america room that leads to the back of the a.t.m. he became trapped when you couldn't let himself out of that room because he didn't have a key card on him on top of that he was unable to notify bank employees for help on top of that he didn't have his cell phone on him so then he got creative and suddenly customers began to receive notes from the cash slot begging for help and asking that they call his boss the only problem was tha

these fed chairs are fairly obtuse in their responses they try to not go too far either way alan greenspan famously said if you think that i've been very clear on the point you've misunderstood me and she was like that to a large extent she got grilled on a couple of things there was a congressman who wanted to know if they would not doing the additional regulations on big banks that at the fed until vice chair was confirmed by the senate vice chair who was nominated just a couple of days ago on monday and so overall it was it was well received she actually testifies tomorrow also before the senate they do the the house financial services committee one day when they do the senate banking committee tomorrow but she was fairly positive as you said she said there may be more rate hikes but not that many rate hikes wink wink smile smile who knows let's look at some of the economic indicators that the fed examines and talks about. the as they make their decisions for thought growth and inflation key data points good but not great you say yeah i mean you know we were we ended up one point six fo

let me start by asking under chairman greenspan, the fed took a pretty active role in discussions about the gsts, in recent years the fed has not done that, has not had much contribution to the discussion of finance reform. the first question touching on things you talked about in your speech, why are you speaking up now? what is urgent about now? the fed governor causes you to feel you need to speak up. >> what really provoked me to come forward was this feeling, a now or never moment, it has been nine years since the crisis, since fannie and freddie were in the conservatorship. it is healthy economic times, all the things i said in my remarks. if not now, when? the risk we settle into this current situation for the long run are very great. let me say why it was an adequate. there have been significant improvements. we haven't really addressed the big issue which is the financial stability issue around fannie and freddie. these large government corporations still have a monopoly on securitization and until we address that we have not addressed the financial stability issue which exists

here's what alan greenspan who calls you first rate economist said. quote urgs can't get growth going so long as entitlement expansion is anywhere near where it's been recently. it's eating up the sources of investment and the sources of growth. you can't have it both ways. you cannot fund all of the entitlements everybody wants and expect that you're going to get a g.d.p. out of that of 3% or more at an annual rate. the arithmetic doesn't work. wouldn't you agree that the structure of our welfare programs including obamacare contain disincentives for work? chairman hensarling: brief wednesday, please. chairman yellen: to my mind, the major factor here is an aging population that is putting downward pressure on labor force participation. there are other factors that affect labor force participation as well. but the slow growth that we have and anticipate reflects in part an aging population and slow productivity growth. chairman hensarling: the time of the gentleman has expired. the chair now recognizes the gentlelady from wisconsin, ms. moore, rankin

asking,tart off by under chairman greenspan, the fed took a pretty active role in discussions about the gse's, but in recent years, the fed has not done that and hasn't had much contribution to the discussion of housing finance reform. first question, touching on things you talked about in your speech, why are you speaking up and now? what do you see as a fed governor that causes you to have the need to speak up? >> i guess what provoked me to wee forward was this feeling are in a now or never moment. it's been five years -- nine years since the crisis almost. it's been nine years since fannie mae and freddie mac went into conservatorship. if not now, when? settles like the risk we -- risks that we settle into the situation are great. let me say why i think it's inadequate. there have been significant improvements, but at the same time, we have an address the big issue, which is the financial stability issue around fannie and freddie. they are these government organizations that have monopoly on securitization. we have an address the financial stability issue, which exists growbut it ca

the most recent was the i are ration aal comment by alan greenspan.ic is saying with respect to how much damage the fed can do to this rally short term. >> if you looked at the fed minutes, they did speak about that, and whether the financials and markets are stable or not. there was concern about the prices being high. but there was a discussion, the fundamentals are there to support this. what's the long-term outlook for the economy in particular. charles: why are they so unconcerned about inflationary numbers? why do they think it's a little bit something here, something there, like cheap cell phone prices and cable bills? >> there are some members of the fed who are concerned about this. they are not convinced this slow-down we have seen is not a temporary thing. they think it could be a longer-term thing. charles: when it comes to the violent words, why does the left always seem to have a double standard. what is it that maxine waters has against dr. ben carson? charles: she got a standing ovation at the mtv music awards, representative maxine wa

the former chair alan greenspan used to say all the time that the laws of supply and demand have notunemployment rate only dropped through the whole unemployment level in a few months, and it is not that they are below the level that you were supposed to get significant pressure on inflation. we are getting 1.5% per year in employment. it is not a blooming number, but labor force growth is 1% of that. it is straightforward that the unemployment group is going forward. you will see more pressure. wages started to accelerate already. i think the fed is right, but they are waiting to see what is next. even, they can pretty much repeat their language from last time when they stated inflation has come down recently, running below 2%, and they expect it to move up to the 2% goal. they are monitoring inflation closely. it works again this time. haidi: you sound more optimistic than a lot of people have been, certainly in the fixed income space. justifyally hard to what has become a consistent set going into anytime soon with inflationary pressures. haidi: you would not expect -- jim: you wo

you wrote alan greenspan's rise to the top is one of the great scams of our time. >> guest: alan greenspan is a character that i had only planned on doing a small section on him because he was so important to the history of the modern financial services industry. his attitude he was an accolade and he was fascinating to me as a character because he was very famous for being this great predictor of economic events. i went back to look he was wrong about almost everything he predicted. like a lot of famous hangers on to hang around rock bands or other celebrities he was famous for being someone who is good at telling politicians what they wanted to hear. and the gift of being the president whisper was what allowed him to be there for so long. he really wasn't so great of an economist but he was a very skilled politician. >> and the divide came out in 2014. in the end, the one bank to get thrown on the dock was not a wall street firm, but one houston the opposite direction. a little to the north, tiny family-owned community bank in chinatown. >> guest: there's a movie out right now called aba

coming up, former federal reserve chairman alan greenspan my special guest.k of big swings as the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple

coming up, former federal reserve chairman alan greenspan my special guest.nes. a week of big swings as the markets end the month, the square and the first half of the year. for the week all three indices found themselves in the red. apple marking the tenth anniversary of the iphone but it was not a good week for apple

all that greenspan headed our way. lauryn ricketts interpreting this giving fios is not cable. we're a 100% fiber optic network. and with the new fios gigabit connection... you get our fastest... internet ever. with download speeds up to 940 megs - 20 times faster than most people have. switch to fios gigabit connection with tv and phone for $79.99 a month online for the first year. plus hbo for one year and multi-room dvr service for two years, all with a two-year agreement. and switching has never been easier. get out of your contract with up to a $500 credit to help cover your early termination fee. go to fiosgigabit.com >>> prince william county police on the lookout for a man they say tried to abduct a young girl. they say just before 4:00 a man came up to a 10-year-old girl while she was walking her dog on heather glen court in woodbridge. the girl told police the man grabbed her arm. that's when the dog bit the man, he ran away. the girl was not hurt. >>

saids what alan greenspan "you cannot get growth going so long as entitlement expansion is where it has been recently. it is eating up investment and the sources of growth and you cannot have it both ways. you cannot fund all the entitlements everyone wants and expect you will get a gdp out of that of the percent or more at an annual rate -- 3% or more at an annual rate. the arithmetic doesn't work or ." chair yellen: to my mind, the major factor here is an aging population thing downward pressure on labor force participation -- putting downward pressure on labor force participation. there are other factors as well. have andgrowth we anticipate reflect an aging population. >> the chair now recognizes the gentlelady from wisconsin. thank you, mr. chairman. let me try to pursue the he was raising with you with regard to paying people not to work. he gave medicaid as an example. two thirds of the people who use medicaid are in nursing homes and they are unable to work. just want to point that out. i also want to pursue a question about rules-based policy that they o fomc had put out there.

so let me start off by asking, under chairman greenspan, that that actually took a pretty active role in discussions about the gses, but in recent years that that has really not done that and hasn't really had much contribution to the discussion about how we do financially for the first question, really touching the things you talked about in your speech but maybe can really reiterate, why are you speaking up now? white is urgent about now? what do you see as a fed governor that causes you to feel like you need to speak out? >> right. i guess what really provoked me to come forward was this feeling that we are almost at a now or never moment. it's been nine years since the crisis, almost. it's been almost nine years since an effort he went into conservatorship. it's healthy economic times, full employment, all the things i said in my remarks. and if not now, when? it seems like the risk that we settle into this current situation for the long run are very great, and so let me say what i think it's inadequate. i would say we've done, there's been significant improvements, but at the sam

when iy since dodd-frank met with chair greenspan a year and a half ago she mentioned up 350,000 jobs some have been created that are called regulatory compliance and in your judgment is that a job that improves productivity? we have put in place regulations to serve important -- >> i understand that. in your professional judgment does a job that relates to regulatory compliance contribute to productivity? >> it is the cost of doing business. reasons that for produce presumably benefits. there are various ways we're going to stimulate growth. by improvingill be productivity. the things you can do by maybe clearing up or eliminating some of the distortions in the tax code. we also have to be mindful to the extent the regulatory burden exceeds what we think is minimally necessary to ensure compliance with areas that represent risk, that is potential capital that could be deployed to productivity rather than to overly burdensome regulations. think all regulators should be attentive to the burdens. >> you have been very generous with your time. thank you for taking the time to meet with m

that something alan greenspan talked about in the 1990's, when you went up having high productivity,a federal reserve victims have to do much for number of years. >> great stuff. i were jersey, thank you. -- bitcoin has gotten clobbered his lust few days along with other digital currency. we will look at the risk threatening best -- this is bloomberg. ♪ joe: "what'd you miss?" bitcoin could had for a split. minors and developers -- have differences about what it could be comic it could result of two different versions of the crypto currency. i talked to -- about what is driving this. though this could be a game -- high stakes game of chicken. this is an ideological divide. can we see two forms a block built?n which bitcoin is it all comes down to the size of transactions you can do on a daily basis. savard has been limited post-tax that have happened the bitcoin. -- we have a thousand transactions a day all the way it350,000 transactions a day payments areg getting too costly as well. both of these two camps want to increase the daily size of transactions -- the question is how you d

i am thinking about the greenspan conundrum period.year rate did not move, it stayed in a 4%, 4.5% range. -- with the balance sheet they're trying to avoid as little disturbance as possible. as i said they do not know. at least with rates you have previous cycles you can look at, you can see the rates going up and down. with this one it has not had the before. we cannot possibly know and to be overconfident is dangerous. i think being pragmatic and doing it very gently is the right approach. we will wait and see. the best i can get out of this is the idea that maybe rates have to stop going up while they are testing the runoff. the market is structurally changing. anna: most of britain's euro activity is staying in london. this is bloomberg. ♪ anna: well -- welcome back. let's get a bloomberg is the/. weighing a plan to purchase stake in commerzbank. the private equity firm is considering building a minority stake by buying shares on market. they say cerberus has not made a final decision and may decide to pursue a different strategy t

probably since dodd-frank, when i met with chair greenspan a year and a half or so ago he mentions up to that point some 350,000 jobs have been created that are called regulatory compliance in the category of regulatory compliance and your judgment, is that a job is it improves productivity? various ways we will stimulate growth. one of them will become an advocate on tax code, one of them will be by consenting capital investment, improving productivity, the things that you can do by may be clearing out for eliminating some of the distortions in the tax code. we also have to be mindful to the extent the regulatory burden exceeds what we think is minimally necessary to ensure compliance with areas that represent risk and that's also capital, or that his potential capital that could be deployed to productivity rather than to may be overly burdensome regulations. would you agree? >> yeah. i think all regular should be attentive to burdens and seek ways to minimize -- >> fi time i'll go back to -- you been generous with your time by the way. i should've thank you for taking the time to me

also on the ground, wearing glasses, is alan greenspan. he was fresh from the inner circles of ayn rand. he was the chair of the council of economic advisers. henry kissinger is between them. he was an important person. thatd rumsfeld was at point forward's -- ford's chief of staff. mayor beam, working with the governor of new york state was to go and seek additional aid from washington dc. in recent years, the federal government had provided financial assistance for certain corporations such as the defense contractor, lockheed, when they were facing problems. perhaps they reckoned it would work for new york as well. the mayor and kerry did not find a friendly office -- audience. donald rumsfeld was not induced, he said it would be a disaster. first, new york would delay cleaning up their mess, and second, the president -- in my view the review -- request is outrageous. waresreenspan said their no cuts for personal responsibility. must do right thing 24 hours, bite bullet. what the ford administration wanted to see from the city was a prog

pose anteresting to counterfactual as do, how would greenspan be talking about things now, if there was that inflation target in place? you see a lot more emphasis on growth and focus on that side and those issues, rather than the inflation issues. betty: i want to pull up this chart. we have a lot of charts for you today. it is interesting to see the pink line, which shows consumption being a bigger and bigger part of the growth trajectory of the u.s. economy. it is fascinating to see how other parts, whether commercial investment or residential property investment, or government spending -- they are all converging and not budging much. it is first of all, consumption. it is first of all, consumption. at a time when we are raising rates on the american consumer, how will that even go higher? bob: there was a lot of concern about debt convergence -- -- burdens. bud what, if anything the fed is going to do about it. they are trying to balance. on the one hand, they do not want to see another explosion of consumer debt to the point where it causes another collapse. yet, they are concerned