what might we have learned from alan greenspan that year?by hurricane greenspan because he hiked rates and not in a predictable, smooth way. 50, times he did 25, one-time 75 point hike at one meeting. it was the unexpected delivery made someikes, which lose 30%, and other hedge funds blue up completely. that was the moment when the fed disrupted bond market traders and created a smooth landing for the real economy. maybe there's a parallel in that. vonnie: that is one of the reasons that communication changed so much. the point that perhaps can vacation and how calm it is might move markets. sebastian: i think the main problem in the economy is you have one interest rate appropriate for the real economy. and that is a fairly low interest rate. information is below target. financial markets are pressed to perfection and that is scary because they could fall and disrupt inks. you want to discourage financial speculation and bubbly behavior in markets and not snuff out the real economy. i think delivering gradual interest-rate hikes in the more

it goes up 33% last time after greenspan said -- he wasn't wrong, but markets can go a lot higher >> i know we're going to talk about that the valuation on chipotle is much more egregious and much more of a bubble valuation than what we've seen on facebook or google. >> absolutely. >> let's turn to facebook, microsoft. both stocks hitting new all time highs today on the back of strong earnings. you've been trading facebook, following the earnings the stock is up again today. >> yes so i've had a position, i was half listening to the conference call last time i was in the office, half working stock traded down eight bucks. i bought it, turned around for a quick 11-point profit. that's the type of volatility that gets bought when the market corrects, i don't think you'll be looking at markets. you'll be looking at situations that are really out there, inordinately penalized >> did facebook allay a lot of the fears out there that the change they made to their business was going to have a dramatic impact? >> very responsible conference call, very up front. he said what it will be. also,

does alan greenspan still believe in the phillips curve? >> i never did.sainthood of the the phillips curve right now, being as honored as it is, which model should we use as we move into the rest of this decade? >> well, let me just say this. there was a big dispute in the 1990's about the phillips curve. the phillips curve was supposed basically engender inflation as the unemployment rate fell. well, the unemployment rate cap falling, but productivity was accelerating at the time, so unit labor costs didn't move, and we had a period where the phillips curve did not work. the phillips curve presupposes a certain fixed rate in productivity growth, and that is not the way the world works. >> we are missing that right now. speaking of the 1990's, you used the term irrational exuberance to describe the bullish sentiment that was driving up stock prices during the dot-com bubble. you used the term "in 1996." do you see any signs of the exuberance today? >> let me put it to you this way. i think there are two bubbles. we have a stock market bubble and we have a

some of the classic dust-ups between maxine walters and allen greenspan. but they beat him up today and would not accept the fact that this economy is on fire. tammy: you have them on display to edit into a commercial for people back home. that does no one any good service because people at home are already benefiting from donald trump's tax cuts and tax reform. but they are still stuck within that pit of not being able to embrace the fact that everyone's lives are improving. they are part of the government but they refuse to. but it also speaks to the fact within what they are stuck in, the financial aspects, they don't want the american people to do well because it hurts their political prospects. i want them to be a loyal opposition that's strong so the republicans will remain strong. charles: income inequality, the tax cuts. it was a hodgepodge cauldron. i saw a few episodes of twilight zone today. the american consumer is optimistic. the american stock today was dillard's. that's where average americans shop. wall street wrote this company 0 off years

maybe this is part of what alan greenspan is referring to.s this shift your thinking in terms of the tightness of the labor market in the united states? viraj: ladies going up is sort of the consensus for a couple of years now. there are two points to make your. the speed at which we get higher wages, and i don't think we will get in a massive shocks. we need sustained pickups in wage growth and we make it one or two good months for that pickup, but the sustained manner that coming through and the wage growth levels are much lower than they were before. central banks are worried about actelion low inflation for longer and maybe there's more than what they initially thought and allowing for that capacity to be used. tightening to quickly is a bit of a risk in that sense. yesterday we talked about president trump's claim that wages are going up and we showed a chart showing wages are not going up in the united states, that was an annual figure and this is a different set of data. this is more month by month quarter by quarter. it matches the bi

guys in greenspan decks scaling the poles. fireworks listen to it.e we go. >> green fireworks. >> reporter: guess who's right here in the middle of it? police commissioner richard ross. you got to look at this crowd. how big >> anywhere from 35 to 50,000 people out here. spans all the way to city hall i mean, so right now everything is under control. but obviously we got a couple of locations frankford and cottman, but we're maintaining right now. >> reporter: what do you think of this >> it's a great day. historic moment for the city. we're happy for the eagles, nick foles, the coach, everybody else, played their hearts out. you can see it out here, the cheer. as long as people remain peaceful, losing my voice a little bit out here. we'll be out here probably a long time. >> parade looks like it started out the eagles. >> it does. of this will give you just like prelude probably what's going to happen whenever it happens but the street will be lined with nothing but people as it is right now. >> reporter: we appreciate you coming out here to talk wi

alan greenspan was interviewing mr. is how surreal it is to see bernanke talking to yellen, how different the fed has become imagine if greenspan would have interviewed bernanke ten years ago. you couldn't imagine it. >> powell said something to the effect that a good policy is one that the markets understand. i would think that would be great solace to a lot of investor out there at the same time, he did seem, as steve mentioned, open the door officially to four rate hikes. and bob, talk about the reaction to four basis points in terms of move imagine another 25 >> i think that's what you were saying i love the comment about the door being open. they opened the door a little, and you saw what the market did, just a little bit. immediately, the market lost steam. >> i think it's a very straightforward way of addressing the markets that powell has it's very linear seeming he's kind of just going to be out there with, okay, these are the range of options this is what we know about how the data is likely to come through. t

mark: howl versus greenspan in technique -- powell versus greenspan in technique.not give the markets what they wanted, or did the markets misread him? four rate hikes was the takeaway for some. >> he gave them what they needed. mark: that is a good thing. seems tond markets have lifted reasonably well. it managed to calm itself down and this is always going to be a data dependent fed. if there is economic strength coming through from tax reforms or a number of different things, it is likely there will certainly be three and that is where he set out, definitely three, could well be cointreau. -- could well be four. i think the bond markets have priced out supply and are doing ok. on a bitseem to be firmer footing. the 2-year note is doing very well. that is the one that keeps on pushing higher in yield. it means that the market is getting ahead or driving a -- driving up expectations. vonnie: is the bank of japan throwing a spanner? >> i have written on this a few times. people are getting excited about minor reductions in what the bank of japan is doing. they are

all of a sudden it seems people think he's a super hawk. >> chairman greenspan had a chance to grade brady. i think they feel internal equity to volatility markets. the news on employment just was a little bump that pushed markets down a steep hill. we got some shakeout. charles: you worked at the fed before. the markets pricing in two or three -- i thought it would be two interest rate hikes. what would it take to go to four? >> i'm on your phage. i think they will go four times. >> three times last year, one time announcing its balance sheet program. once a body is in motion, it stays in motion. the unemployment rate will be starting at 3. we'll get growth in gdp almost touching 4%. the fed will monetize in a favorable way. >> i think four is a stretch, three is almost a lock. we have inflation numbers 1.2%. gold has barely budged. yes the global economy is growing, and there are things being priced in. but the fed clearly indicated yesterday that they are worried about an equity market collapse. so i think they will continue to be somewhat cautious and slow. charles: when does pow

. >> laura: in year 2000 bill clinton standing in the rose garden with allen greenspan and opening upina, our most favored trade status and predicted all this wonder. a new area of globalization and would be freer and become more like the west but we're seeing our businesses become more like china. >> i'm a free trader. i believe in it. >> laura: trump wants to trade he just wants it to be non-distorting the marketplace. >> everybody said china will now conform to the international norms and bring them in the wto will create the changes. they have simply taken advantage of it for the past 15 years. the difference between trump and other presidents because he does believe in free trade is he just expects others to follow free trade practices as well and china has not been doing that for a long, long time. >> laura: and what's interesting is the mueller investigation and it's always russia, russia, russia, and donald trump is finally doing something against this gigantic economic and military power and how they've distorted the marketplace and taken advantage of other and other trading

mark: alan greenspan speaking to bloomberg's tom keene at scarlet fu.of the charts where we look at the most telling charts of the day and what they mean for investors. the feature at the bottom of the screen, and kicking things off is christine. >> i am looking at goldman sachs because of its staggering forecast -- in six months moving to $80 per barrel. that is a 50% gain from current levels and the reason they cite a stronger demand reflected stronger growth in emerging economies. out,r oil reporter points that is not a bullish call on the oil market, it is also a bullish call on the global economy. my chart shows exactly the same. --looking at the positions and you notice the white line here towards the end of last year, that has picked up considerably. it is near record levels right now. at the same time, the expectations of growth in emerging markets has picked up. together they have risen the relationship between these 2 -- you can see a correlation chart is that the strongest level in the over two years. if we see goldman's prediction picks upro

to give you a roundabout way of getting to my answer of absolutely had it been had it been alan greenspan had it ben ben bernanke he had it been janet yellen on what jay powell first day of work was which witnessed a sixteen hundred point decline in the dow it ended up closing down twelve hundred any of his three predecessors would have come out and hit the panic button and said the federal reserve stands ready to act. you know what we heard from jay powell nothing not one word so i think he's already starting to command a presence and he's also announced to the market that even if there is a major slide and stocks between now and march twenty first that statement being released he's still going to hike interest rates in march probably also in june to help ok well and you know we're we're taking notes every time we have you on danielle and we we call your answer well we know we were there with courtney i was going to say as we remember your jay powell was not janet yellen clone and so that goes to what you're saying now we'll see more of that in the testimony coming up and we'll we'll see

you have had more experience in the fed than anybody except perhaps greenspan. i was never a reserve bank president. you had some time at that job. how is it different from being a governor? janet: a variety of ways. one way is that an important job of a reserve bank president is to collect information that can be helpful in bearing on monetary policy and understanding what is happening in the economy. the reserve banks are structured, they are quasi-public, quasi-private entity, chartered to serve a public purpose, but structured like banking organizations with private sector boards of directors. those directors, a president meets with regularly, an important role they have is to provide information on what they are seeing in the economy. more broadly, reserve bank presidents are expected to interact with all significant groups in the areas they serve, both business leaders, also members of community groups, labor groups, to try to understand what is happening in the economy. due to historical accident, the 12 regions of the federal reserve, the 12 districts, a

alan greenspan warning of longer-term yields going up for treasuries.ve the indian budget later. in a short while, a purchasing manager a day after the official one missed. haidi: getting more buoyancy when it comes to the markets and sentiment. a news story when it comes to trade flows? we have had disappointments and misses this week. china's pmi was not bad. private comes out in 15 minutes. south korea had a real beat when it comes to exports kicking into gear at the start of the year, 22% for january. that indicates we could see a stronger global demand, that there is legs when it comes to be synchronized global growth story that has been propelling exuberance on the market. let's get to sophie for a look at the open to see if these markets are going to be joining and continuing the recovery mode we are in. sophie: not much in the way of exuberance when you take a look at the mood in shenzhen. marginally lower. shanghai stocks marginally higher, the large-cap gains -- large-cap gauge about .1%. shanghai stocks are not looking to gain ground too much

jon: we've had the greenspan put and bernanke put -- i'm trying to figure out where the chairman powell exists. greg: yes. bonnie: yesterday rob. rob: no. jon: great to have you on the program as we wrap up a volatile week. a very resilient week for global credit. , bonnieers of pgim wongtrakool of western asset management, and rob waldner of invesco. this is "bloomberg real yield." this is bloomberg tv. ♪ >> it is 1:00 in washington, 6:00 in london, and 2:00 in hong kong. julie: welcome to "bloomberg markets: balance of power." focusing on the intersection of politics and the economy. market turbulence. u.s. stocks selling off on a day of swinging between gains and losses. investors live tour the weekend to catch their breath. washington gets its act together. republicans and democrats get enough consensus for a budget deal but at a cost of $300 billion in annual deficits. and republicans used to compare -- complain about obama deficits, and now rand paul wonders now if they are only conservatives when they are not in power? julie: breaking news, stocks lower yet again, although off th

what are the chances looking at alan greenspan there that we are moving too slowly?hleen: investors are complacent about inflation. if the fed gets behind the curve , that could create some volatility. on the other side of it, if they move too quickly, that could also alarm investors. i think they're in a tight spot. for now, they are doing what they need to do which is calling for a smooth, gradual transition. i would not expect that smooth process to last all year. alix: kathleen gaffney, great to see you. oil jumping after goldman boosting its forecast. six months, $82. we break down the opportunities. this is bloomberg. ♪ ♪ offil earnings kicking shell's profit to a three-year high. conical out earlier with their production a little bit light. cash flow coming in at $2.5 billion. goldman getting the news. thirde forecast up by a saying markets are probably rebalance. .oining us now is dan dicker i have known for about a decade. you are on you were saying higher oil prices. shale producers are going to come back, their hedging like praying -- crazy. why do you thi

francine: that was alan greenspan speaking to tom keene.stian keller from berkeley and keyu jin from the london school of economics. when you look at the fed concerns, inflation, is inflation going to come back and forth, therefore forcing the fed to hike more than the market expects, or is inflation still tricky? could it be slower than expected? >> chances are it could be more than expected but markets indicating they believe it will settle where it is. on friday, we will get important information with the labor market. all eyes on core. the weaker dollar and higher energy prices will help on headlines. we have not seen core inflation. yesterday, the print in europe, core inflation is weak. central banks will look at that because it should determine the longer trend of inflation. francine: this was my first chart, world trade as a percentage of gdp. you were on some amazing panels talking about where growth goes and what happens to monetary policy. what is the biggest risk you see, monetary policy? >> it depends on which part of the world

jonathan: we had a greenspan put, a bernanke put.a yellen put, and i am wondering if this time is different. will we had a chairman powell put? matt: no. katy: yes. >> yes. david: it will have a much higher strike price. jonathan: it has been great to catch up with you all. thank you all for being great sports. that does it for us from new york city. we will see you next friday at 12:30 p.m. new york time. 5:30 p.m. in london. we will bring you those comments and reaction with a full round table we finally hear from chairman powell in his semiannual testimony. this is bloomberg tv. ♪ >> this is bloomberg etf iq. we focus on the risks, assets and rewards offered by the etf. some critics say the structure hasn't been adequately tested, we show you like a recently passed a big test and volatility is the buzzword of 2018. we drill down to the first volatility etf's. warren buffett likes to pick stocks run the business, there is no getting around their influence -- our etf analyst -- he is so psyched to be here.

jonathan: in the past, we have had the greenspan put, the bernanke put, i'm trying to figure out whetherman powell put exists. does it? greg: yes. bonnie: yes. robert: no. jonathan: great to have you on the program as we wrap up a volatile week. a very resilient week for global credit. greg peters of pgim, bonnie wongtrakool of western asset management, and rob waldner of invesco fixed income. that does it from new york. we will see next friday at 4:30 p.m. new york time, 5:30 in london. this was "bloomberg real yield." this is bloomberg tv. ♪ fu andt: i'm scarlet this is a rebroadcast of bloomberg etf iq. what you see next is a snapshot of the news and trading from midweek. enjoy. ♪ fu, this is bloomberg's etf iq where we focus on the risks and rewards offered by exchange traded fund's. funds. betting against stock market volatility was a home run trade network for years until it didn't. we go inside this week's

jonathan: we have had a greenspan perp, the bernanke put, the yellen put and i wonder if this time isnt. will we have a germ -- chairman powell put? matt: not this time. kathy: yes. michael: yes, a fed put is always there. david: it will have a much higher price. jonathan: great to catch up with you. ornback, kathy jones, and david riley. that does it for us from new york city to read will see you next friday at 12:30 p.m. new york time. 5:30 in london. we will bring you those comments and reaction with a full round table we finally hear from chairman powell in his semiannual testimony. this was "bloomberg: real yield." this is bloomberg tv. ♪ >> this is bloomberg etf iq where we focus on the risks, assets and rewards offered by the etf. some critics say the structure hasn't been adequately tested, we should you why it recently passed a big test and volatility is the buzzword of 2018. we drill down to the first volatility etf vxx. warren buffett likes to pick stocks run the business, there is no getting around their

we've had the greenspan put and bernanke put put -- i'm trying o figure out whether a chairman powells. does it? greg: yes. bonnie: yes. rob: no. it would be a big mistake to ease rates into an inflation scare. jonathan: great to have you on the program as we wrap up a volatile week. but a very resilient week for global credit. greg peters of pgim, bonnie wongtrakool of western asset management, and rob waldner of invesco. that does it from new york. we will see you next friday at 12:30 p.m. new york time, 5:30 in london. this was "bloomberg real yield." this is bloomberg tv. ♪ ? yousef: welcome to the best of "bloomberg markets: middle east", i am yousef gamal el-din. markets went haywire and volatility came roaring back as investors braced for rising interest rates. the worst slump in two months, where does it lead. still number one, claiming its crown as the world's busiest airport. we speak to the ceo. it was an

within a customs union, potentially if those numbers add up, tory rebels siding with labour and greenspan those remainers voters, they could potentially defeat the government. but would that mean? it would undermine theresa may's authority, leading possibly to another snap election. we also had from the trade secretary this morning. he was after this could put the government down. he said theresa may is yet to outline the government's vision for the future relationship of the uk within the eu. they have the numbers to blow her massive hole through this process. i would say to my colleagues that theresa may has kept a broad range of views on the european issues in her cabinet for a reason. we sat down, with those differing views, we looked at the issues, options and we came to an agreement that we are all happy with. that was liam fox on andrew marr earlier. it will be an important week ahead, big speeches from jeremy corbyn and theresa may in the next few days. i think we're seeing labour setting out its position get in ahead of theresa may's big brexit speech. a coming for some time. the

in your piece, peter, you mentioned in 199 when greenspan comes in he rattles the markets. there's a political angle with all this youreadline the time was live by the dow, die b the a memo to president trump. >> look, this is a president who like his predecessors touted the rise in the stock market. he did it 25 times in january alone. that's something presidents don't do becae what goes up can come down. if you want to take credit oi you're to be blamed for the bad days. the president tried to put that aside. he said it makes no sense that the stock market went down since everhing is good. but that's the way the markets work. they don't respond to dictate p of asident. you have to be careful of the president to be too outout robert: will the white house change its tune about the market? >> i think we're starting to see that already. you said sara huckabee sanders say look the fundamentals are strong. you have unemployment coming down. you have other strong indicators in the economy. but i thi a weo saw something striking which is that president trump wasn't tweeting a who

what was it like working with greenspan?hairwoman yellen: i did work in 19 94, leftnt and then went to the council of economic advisers at the beginning of clinton's second term in 1997. i did not know alan before i went. with hislly impressed intellectual strength, with his originality. no one knew the data, understood the idiosyncrasies of the data, and could make better use of it to provide insights on the economy than alan could. i thought he was a very original thinker. i enjoyed talking to him, i found him to be very open to debate. i did not agree with him on everything but i did agree with him on a lot of things. i guess i had the opportunity to debate with him, the question of whether or not that should adopt an inflation target, and if so, what that target should be. he let me do that in the context of an fomc meeting, so it went into the permanent record. i was on record than saying i should we should adopt a numerical inflation target, and i thought it should be 2%. i think i articulated the reasons about the zer

of the menu these days they're the center of attention and the best bartenders are creating new greenspan or alcohol free beer. rosemary meats all spice and beef meats mustard aromas people all you know drink for us and call us and sunday the us army a more productive discussion i want to challenge myself and i will also want to give to my thoughts also to my guests one of the best experience these types of. colics said it's it definitely and i. am live in an industry where people actually. is. british and campaign such as go sober for october or dry in january which urge people to go booze free for a certain time are becoming increasingly popular more than three million people in the u.k. gave up drinking for dry january this year. the beverage industry has also picking up on the trend they're creating distilled nonalcoholic spirits that imitate the taste of june without using sugar or artificial flavors branson gave up alcohol a decade ago but with the lack of alternatives he decided to do belive his own. when you're out with friends or you get home from work i need a long day i know yo

jonathan: in the past, we have had the greenspan put, the bernanke put, i'm trying to figure out whetherman powell put exists. does it? greg: yes. bonnie: yes. robert: no. it would be a big mistake at this point to ease rates on inflation scare. jonathan: great to have you on the program as we wrap up a volatile week. a very resilient week for global credit. greg peters of pgim, bonnie wongtrakool of western asset management, and rob waldner of invesco fixed income. that does it from new york. we will see next friday at 4:30 -- 12:30 p.m. new york time, 5:30 in london. this was "bloomberg real yield." this is bloomberg tv. ♪ retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. scarlet: i'm scarlet fu and this is a r

going to give you a roundabout way of getting to my answer of absolutely had it and had it been alan greenspan had it ben ben bernanke he had it been janet yellen on what jay powell first day of work was which witnessed a sixteen hundred point decline in the dow it ended up closing down twelve hundred any of his three predecessors would have come out and hit the panic button and said the federal reserve stands ready to act. you know we heard from jay powell nothing not one word so i think he's already starting to command a presence and he's also announced to the market that even if there is a major slide and stocks between now and march the twenty first that f m c statement being released he's still going to hike interest rates and march probably also in june ok well and you know we're we're taking notes every time we have you on danielle and we we don't call your answer will we know we were reporting i was going to say is we remember you're jay powell is not a janet yellen clone and so that goes to what you're saying now we'll see more of that in the testimony coming up and we'll we'll see of

. >> when you were there it was greenspan, right? so what was it like working with allen? what did you learn? >> so i did work with allen. i guess i went in 94 and then left and moved to the council of economic advisers at the beginning of clinton's second term in 1997 and i didn't really know allen before i went. i was really impressed with his intellectual strength. with his originality. no one knew the data and understood the data and could make better use of it to provide insights on the economy than allen could and i thought he was a very original thinker. and i enjoyed with him and found him very open about debate. i didn't agree with him about everything but i did agree with him about a lot of things. hi the opportunity to debate with him the question of whether or not the fed should adopt an inflation target. and what it should be. i thought we should adopt a target and i thought it should be 2% and i thought i articulated the reasons about the zero lower bound and nominal wage that later became central to our decisions. ellen's view was that we should not adopt an

chair greenspan last week talked about bubbles in both the bond and equity markets before we started to have this correction. i think those things are very important because the fed would like to see things a little cooler in financial markets and a little hotter in the overall economy. a warming trend in inflation, a warming trend in wages, and a little heat off equity -- >> interesting you are pointing out this is an orderly sell-off. and that is hard for people to fathom when there's a 1 handle in front of, it when there are four digits to the left of the decimal, but it's still 4%. we don't see it a lot in our days, diane, but you and i have seen a 4 in front of a percentage loss in our lives several times. >> unfortunately, we have. we've known each other a long time. >> yes. >> so you're saying orderly. that unless this looks disorderly -- and by the way, if it looks disorderly, it'll probably be contagious. in other words, we'll start to see this bleed into other markets and we'll have some feeling around the world that oh, something's going on. >> exactly. and as it -- if it

what is chairman greenspan talking about?tock market is an indication of what both the economy is doing and particular corporate performance. it's an indication as to what degree monetary policy gets transmitted to the broader financial markets. this is the interesting part of where we stand. normalizingbeen policy and watching a global and u.s. economy doing well to the markets have been moving basically and one direction. from our point of view, what's been interesting about this is the sense that the market has priced in global growth and u.s. growth and tax cuts, but it has not priced in the normal responses that we get both from central banks and also on the inflation side. that to us is what we were concerned about as we were turning into this year. it's the complacency of markets against what is still a very positive for the mental environment. -- fundamental environment. tom: i was sitting next to my phone hoping chairman powell would call. we of got to get the chairman of to speed on how to use the bloomberg. does he

alan greenspan coming overnight and saying there is a bond market bubble as well, but 3.75% could beflection point as well. when is that? thomas: that is more of a story for 2019 if you break through percent. i would be buying bonds or selling yield around 3%. we hit to 75. and thens for 290 backs off. that plays into the correlation of equities and bond yields rising. equities have risk on. level 3%.pretty big we do back off of that. eventually, you should try to present again. a lot of sweet for the global cycle right now. probably would not really reflect until 375 on yield. david: but at the chart back up on juliette's terminal. i want to ask you as well because there has been debate going on for 12 months or so. trend?broken have we broken this bull market at this point? we have seen a few breakouts. some people say they were false positives. at 275, are we had a breakout? thomas: i think 3% is the breakout level. my call was we were going to push through that. we just kissed it with a reach for 290 and then backing off of that. david: what happens in the bond bunds space drives

last week, alan greenspan said he thought that stocks were in bubble territory.spect of higher inflation and higher interest rates around the corner could put the brakes on the economy. >> hopefully it will not be as high as we have seen in the past couple of days. the rates will be going up. that will create uneasiness among investors. >> reporter: he had a good job working at the levi san francisco headquarters. they are worried about the markets volatility and the potential for inflation in the already expensive area. >> the prices for everything has gone up. >> reporter: for the bay area the outlook is good. >> california has pulled ahead of the national average that is at least by the job numbers. >> reporter: the biggest job growth has been in construction. the second is an increase in tourism and also within the hospitality industry, and also job growth, and banking is a big industry in the bay area and that could benefit also. >> what about the asian markets? are they bouncing back? >> reporter: it is one thing you are seeing you are seeing the simultaneo

banks started to participate in markets you know from the one nine hundred eighty seven crash alan greenspan and the plunge protection chain which included ronald reagan and robert rubin they started the central bank began to become a player now here's a central bank of switzerland is buying aggressively buying stocks so these central banks how do they fit in the global banking system what are they doing that is so the lender of last resort or the buyer of first order but what exactly are they doing what are they doing i mean they become massive hedge funds for one thing but instead of borrowing money or going to investors and sid and using their money to and to find things that they are creating money that they're fabricating electronic money they're going through the financial system to basically get it out there and it collectively got about twenty one points. and trillion dollars worth of assets on their books through connotative easing which have been used to purchase corporates if you're the european central bank equities and the bank of japan mortgage assets and government bonds if yo

allen greenspan came to august august 11, 1987. at least he had a two-month month honeymoon before crash day. the question is, is he going to blink and begin to unwind the balance sheet? er. >> is he going to pull back on that commitment. >> david, one of the outcomes of easy money is risk take and learn. margin interest is its highest ever and it's your best friend in bull phase and worst enemy in bearish phases. and somebody who has 100,000 in stock on margin, that margin thoos come off first. i'm not sure that's happened yet. so it's something to watch. david: the economy is doing damn well. all the indicators are positive. and we haven't had effect of all that cash abroad coming back that will be invested here in the united states. we haven't had the effect of all the raise and salaries, and the extra bonuses. once all of that begins to kick in more than it has. won't that give even more of a boost to the economy and reflect itself in a healthier market? >> i think that's the foundation to the floor. don't forget the treasury d

because we're talking about a regime change here something different that we really haven't seen since greenspan took office in eighty seven well we hope you'll come back next week are related to the chairs a chair. testimony then you'll do more to nobu. money strong and author of fed up thank you for being here good to be with you in person absolutely likewise. time now for a quick break but stick around because when we return we sit down with or actually at ski for an in-depth look into global markets and before we go i'll have a word about vinyl and as we go to break the dow up nasdaq down here are the numbers at the closing bell. america's an economy that's been created by financialization of everything and outsourcing manufacturing to countries like china totally ignore that just made that word up means to ignore something gratian your local infrastructure bill now trump saying we want to do infrastructure we've got to go borrow a trillion or two trillion dollars from whom our biggest creditor would be china and china is owning all the cars in the twenty second century in america can't even