happy started 1987 right so the crash of $87.00 brought in the plunge protection team under alan greenspan ronald reagan and robert rubin and they began to flood the markets with cash with government money with taxpayer money to essentially that was the end of free market capitalism in america in a huge way you had the 1913 in traditional the fed that destroyed much of the u.s. capitalism and then the 1987 plunge protection team pretty much took capitalism completely off the out of the picture in america and we ended up into a control a command and control system by the fed the fed became the new poll bureau interest rates became their the hammer and sickle that they beat the population and to rally the elites and they did so under the ideology of market fundamentalism which we find out is similar to theological fundamentalism and that it breeds terrorism that was only possible once told paul was no longer in the central bank that's paul volcker who did passed away this end of the year december 29th so he was the guy who was in charge of the central bank when the u.s. went off the gold sta

when the specular friends you got to crazy he was the last to do that since the time we started greenspan they've only had one policy response to every single economic event that ever comes out of the pike and that is to lower rates and print more money that's the only thing they ever do and they don't try to do anything other than that to the they can tell in effect feed their friends billions and billions of free money and interestingly enough every federal reserve chairman sense paul volcker has as far as the physical dimensions he was i think $6.00 foot for every single one has been progressively shorter with janet yellen being the shortest of all so that's kind of interesting and also in the area of central banks with volcker gone was really the and. this idea of kind of price discovery as it relates to markets as well so now we all we have now is we don't have price discovery we have what's called mark to model so usually assets are marked to market to say oh i have about a bunch of assets and the market value is based on what i can sell them for but when once volcker is gone and yo

economy up until the seventy's in the united states it inflation numbers included wages after a greenspan came on board wages were no longer included if you were looking at inflation because wages were financially engineer and reagan destroyed organized labor with the firing all the air traffic controllers and wages were put into the socially outsourced to china and so when people say well we have an amazing economy with no inflation as they do now if you turn on c. and b. c they'll say there's no inflation what they mean is we have an amazing a commie were billionaires are becoming even more billionaire e. and wages of state flat that's not the same thing as saying no inflation the reality is we reengineer the economy starting with greenspan to give billionaires many many more billions and not to give wage earners anything that's what they are so i think we actually happened as you reengineered the population as you've discussed here with john bruno and as we've seen on the ground here and argentina the people here cannot afford to be stupid and ignorant because they are there's another

. >> fmefeorr d chair alan greenspan. the dow is up 8.'re also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. cme group - (vo) than just the business theryou came for.more whether that's getting a taste of where you are, or bringing some of that flavor back home. that's room for possibility. ♪ let's get to living is that pgim, we see alpha emerging in the trendsete? driving specific sectors of outperformance. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to mobile banking and e-commerce... trade and travel surge between emerging ma

inequality which slows the economy down the so-called managers the central bankers in particular greenspan and his followers have extension why did the inequality and accentuated stagnation that comes out of that inequality so this wealth is giving a stagnation not possible prosperity the problem is what is a capitalist economy most people think that a capitalist economy is a billionaire is using their money to invest in factories and to employ people but that's an industrial capitalist economy and what we have a something different we have a finance capitalist economy and the idea of a finance capital isn't to make money by employing workers to make more goods to sell at a profit it's to make money from money it's to make money by buying. real estate stocks and bonds not factories and stocks and bonds you can make money on fastest by closing down the factories by outsourcing you make money if you're a finance capitalist by closing your american factory and moving to china by taking all of your income and instead of reinvesting it in effect very you use it for stock buybacks to bid up the

central bank has but i 87 began the stuff about central bankers with the greenspan port and ever since then they've gone in there to rescue the banks whenever they start to fall over to rescue the financial institutions when i stuff up the classical course being a long term capital management so all this stuff is meant as well as the capitalist system driving inequality which slows the economy down the so-called managers the central bankers in particular greenspan and his followers have extension why did the inequality and exchange why did stagnation that comes out of that inequality so this wealth is giving a stag national post no prosperity the problem is what is a capitalist economy most people think that a capitalist economy is a billionaire is using their money to invest in factories and to employ people but that's an industrial capitalist economy and what we have a something different we have a finance capitalist economy and the idea of a finance capital isn't to make money by employing workers to make more goods to sell at a profit it's to make money from money it's to make mone

inequality which slows the economy down the so-called managers the central bankers in particular greenspan and his followers have extension why did the inequality and accentuated stagnation that comes out of that inequality so this wealth is giving a stagnation not possible prosperity the problem is what is a capitalist economy most people think that a capitalistic cut it. he is a billionaire is using their money to invest in factories and to employ people but that's an industrial capitalist economy and what we have a something different we have a finance capitalist economy and the idea of a finance capital isn't to make money by employing workers to make more goods to sell at a profit it's to make money from money it's to make money by buying real estate stocks and bonds not factories and stocks and bonds you can make money on fastest by closing down the factories by outsourcing you make money if you're a finance capitalist by closing your american factory and moving to china by taking all of your income and instead of reinvesting it in a factory you use it for stock buybacks to bid up th

greenspan, would you like to wait in on that, and mr. gomez, as well? dr. greenstone: thank you, mr. chairman. climate change is here. we are not debating whether or not we should have climate change anymore. we now have it. and the impacts on mitigated climate change are beginning to show up. the mayor was talking about the ways it impacts a functional city and you pointed out how it showing up in financial markets. rateswing up in insurance , as mr. jones highlighted, and that is causing people to make different decisions, and now, there has been a growing recognition of wall street, and it is showing up in bond prices and will show up in other asset classes as well. differencebig between the impact showing up versus policy sending a clear signal, which would also affect markets. that would affect markets in different ways. it would reduce the admissions that are occurring, whereas the prices you are pointing to are all more sending signals for how people should adapt to climate change and treat it as if it cannot be changed, but sending a price signal th

alan greenspan when he testified to congress he explained his success in running the economy as based on what he called greater worker insecurity. a typical restraint. compensation increases has been evident for a few years but as i outlined in some detail in testimony last month i believe that job insecurity has played the dominant role workers and secured are going to be under control. they're not going to ask for say decent wages were a decent working conditions or the opportunity to free association meaning union and. now for the masters of mankind that's fine they may show their profits but for the population it's devastating. for these 2 processes financial ization i'm sure are part of what led to the vicious cycle of concentration of wealth concentration of power. please. lists lists lists. lists. and very well might continue watching on since last. in the troubled 19 seventies a group of killers rampage 3 parts of northern ireland that was coordinated loyalists attacks particularly the population of belfast tens of thousands were forced to flee their homes and what was strikin

alan greenspan when he testified to congress he explained his success in running the economy as based on what he called greater worker insecurity. a typical restraint on compensation increases has been evident for a few years but as i outlined in some detail in testimony last month i believe that job insecurity has played the dominant role workers in security are going to be under control. they are not going to ask for say decent wages were a decent working conditions or the opportunity to free association meaning unionized. now for the masters of mankind that's fine they may show their profits but for the population it's devastating. for these 2 processes financial ization and offshoring are part of what led to the vicious cycle of concentration of wealth concentration of power. one of the things that i started to realize is that the noise in my head as it me i started the practice of organizing my wife around what i wanted my life to be about even when it conflicted with my internal noids so you know i i wrote a book but in my head i'm not smart enough people like me to write books.

host: alan greenspan, here's the inflation is going to rise, as the deficit balloons over trillion dollars. guest: yes. if you look at the structure of the debt, we talked about the government borrowing from security taxes, that part of the debt is going to diminish and be publicly traded. if you look at that structured, , lot of the marketable debt those mature within one year. it's not like it's in 30 year bonds where we have a set interest rate. as the interest rate rises, the government is going to be rolling over these bills and notes paying a low interest rate and they will jack up. that is going to accelerate the cost of the debt. host: we will go to michigan. caller: hey, steve. wait to hear your republicans saying how biased you are by having somebody like terry on there. anyway. that said -- host: you must have been listening yesterday. caller: i was. i tried to get into defend you. you are my favorite next to, what is her name? i saw her. host: susan swain. caller: she got boosted up. host: she does q&a. anyway, she was doing an interview on q&a. host: susan swain, that's correc

host: alan greenspan on cnbc earlier this month, here is the headline -- as inflation is inevitably going to rise as the deficit balloons over $1 trillion. will it? guest: yes. if you look at the structure of the debt, we talk about the intergovernmental debt where the government is borrowing from surplus social security taxes and paying it back to itself, more and more of the debt will be publicly traded treasury securities. if you look at the way that is structured, a lot of the federal bills, whicheasury mature in one year. inis not like it is all 30-year bonds with a set interest rate that we will be paying for the next 30 years. as the interest rate rises, the government will be rolling over these bills and notes that they are now paying a very low interest rate on, and those interest rates are going to jack up. that will accelerate the cost of the debt. host: a call from michigan. tim, good morning. caller: hey, steve, i cannot wait to hear your republican callers come calling in and saying how biased you are by having somebody like terry on. host: you must have been listening yeste

of real markets that you would genuinely that there was no fed to rescue everything so a sense of greenspan and the introduction the put you know it took people a few years to realize that any time any even a slight i mean when when markets go down 11 points them up the fed intervenes like so the fact is that. people now are the opposite of what they used to be they used to expect a cycle now they don't expect a cycle every participant in the market does not expect a cycle to ever be able to fulfill itself so that the fed will always tend to be of course i think that makes it probably more dangerous for when they do lose control or when fewer and fewer actual people are participants in it so the fact is like we know something like you know 85 percent of all stocks are owned by the top one percent so it's not like everybody is participating and the fact that we keep on pointing to this thing hey look this magical bowl of you know is glowing and this means something to you but it doesn't mean anything to anybody of course donald trump this is what he looks at he's a new yorker this is what de

surprises it's not new now this is all there policy according to such a banker's whether it's alan greenspan or or whomever as ben to make an artificial rise in property and stocks that are man be. the sacrificial lamb that must be sacrificed on the altar of giving hedge fund managers shut manhattan or wages right they should say we're going to focus on the wages because that's what's been lagging behind us of prices to say that we're going to focus on asset prices after we've left wages behind for 20 years this putting the cart before the horse is complete opposite of the reality situation what they should be doing well max they do focus on that's what they mean in inflation numbers inflation they don't care about the inflation of property prices they don't care about the inflation in all the real services you need like health care rental property prices education prices car all the things you need to get around in life and have a job and participate in the economy they don't care about that inflation the only inflation that the fed ever is concerned about is what the they're all of darks t

and possible global economic crisis so in this situation he's saying and i think alan greenspan by the way would agree is that unless you have your gold in your possession you don't have the gold well let me sum up the global economy in just a few words number one banks all over the world have been making incredible amounts of junk loans to corporations to buy other corporations those banks when they have a lot of junk loans built up that are not repayable they sell them to the central banks for this ever mounting global pile of treasuries and money that's being created to buy back the junk bonds the junk debt from the banks who have been just giving it to their friends to buy out other corporations and these massive mergers and acquisitions stock repurchase scams. and that has a finite end date so that it does it can do this forever and we're approaching the moment now we're on the smart people in different countries now in eastern europe if the alarm bells are wrong and they're like you know what this is an unsustainable ponzi scheme between junk bond dealing banks on wall street and

memories of real markets that you would genuinely that there was no fed to rescue everything so since greenspan in the introduction the put you know it took people a few years to realise that any. time any even a slight i mean when when markets go down 11 points them up but the fed intervenes like so the fact is that. people now are the opposite of what they used to be they used to expect a cycle now they don't expect a cycle every participant in the market does not expect a cycle to ever be able to fulfill itself so that the fed will always tend to be of course i think that makes it probably more dangerous for when they do lose control or when fewer and fewer actual people are participants and so the fact is like we know something like you know 85 percent of all stocks are owned by the top one percent so it's not like everybody is participating and the fact that we keep on pointing to this thing hey look this magical bowl of you know is glowing and this means something to you but it doesn't mean anything to anybody of course donald trump this is what he looks at he's a new yorker this is what

not been ined has that market for a better part of 20 years, ever since greenspan came in and startedeak monetary policy by choosing to move the fed funds rate, or target the fed funds rate, and then the over market -- overnight market operations took over, doing repose, reverse repos, adding liquidity on a daily basis. the fed was a little rusty and out of sorts. they were certainly surprised. all things being equal, they were up to the task. shery: when it comes to the pboc, they seem to have things under control, just overhauled their loan regime. this chart showing how they are trying to get rid of that one year benchmark lending rate and now all the other banks are following the loan prime rate, 20 basis points lower. is this an effective rate cut for china, and what does that mean for markets? vince: it's a small rate cut but has a limited impact on domestic borrowing. the industrial sector is already below that rate. they are the state owned industry, they get a cut. a lot of the other credit that has been extended to states and cities has already been below this rate. there is

the first fed chairman i met was alan greenspan.m at meetings and talked during the middle of the financial crisis, just being there and being next to him you feel small because he is so huge and i'm not very big. on the other side, knowing he had change the world and what i had gone through personally in my own life and was the reason i became an economist, because i saw someone could make the world a better place. after watching what i witnessed growing up and seeing my best friend going to poverty, i was lucky it was not me, but at one point in time she had to skip lunch and by mother gave her extra money so i could pay for her lunch. that seems small now, but to me it was a pro flying effect in learning -- profiling affect and learning what he did in school helped me become who i am. vonnie: a phenomenal tribute to paul volcker. thank you for joining us. diane swonk, grant thorton chief economist. i'm sure he will be thrilled to know there was another economist in the world. in the meantime, the world anti-doping agency has bann

former fed chair alan greenspan will sit down with the "squawk on the street" gang.hat out tomorrow. >>> all right, happy holidays, what a december -- >> thanks. >> you're welcome. what a december it has been, another record day, all three averages closing at highs. the nasdaq up 35% this year, the s&p up 27% but this guy says enjoy that while you can. they are likely not here to stay blackstone's chief investment strategist thanks for coming on. >> thanks for having me. >> he's jay-z by the way. >> i was jay-z before jay-z was? >> are you going to do the ice bucket challenge on this rally is this all she wrote? >> unfortunately i think i'm going to have to, because if you think about 2019, it was a year where every single macro risk was thrown at this market. brexit deadline, trade war intensify, manufacturing recession, earnings recession, yet markets didn't care. why? because 2019 was the year of the central banker in other words, central banks had the biggest pivot, balance sheet tightening, expansion, hiking rates to cutting rates. more than since any time since

from tightening february 1st to easing in july and then in december, up 34% it was because of the greenspan put. powell just made that look like nothing. he literally said it he said we're not going to raise rates for the foreseeable future, and i think that really is what it comes down to. >> tony, with the multiple you're talking about here, it makes me curious, is that telling you exactly less macro, a little bit more into my world, where do you go? are you buying multiples well below 22, something in the 15s, 16s, much more attractive? >> valuations are funny. this whole game of targets is stupid it's a guess of a point in time where it should be it could be 21, 20, it could be higher so rather than look at cheap stocks, let's look at the history of what happens when the economy is recovering from those money recessions that we've had this cycle it's offense, it's industrials, it's information technology and it's financials. and just to be crystal clear, last time i was on the show, i thought the market could go for a pause on the upside. so kaern and i and everybody else is on the same

you know, if you look at the -- chair greenspan in the '90s and stuff, there have been times when youe to go in and help because of the impacts of trade, the impacts of things that are sort of outside the united states so it's not an observation by me to say they have put the insurance policy and they have said it. now that they put enough in and i think they'll hold that's what the market says and that's what we believe in the company. >> we've seen some price wars in the online brokers and it's led to some consolidation. do you fear that charles schwab -- a beefed-up charles schwab is now a major competitor in a way it wasn't before to bank of america? >> it was always a major competitor we've been competing with them for years. the whole zero dollar trade came at people in a way that surprised me in 2006, we announced zero dollar trades. it's not a new concept that's the thing you have to think about. the way we do it is in ku conjunction with our broad partnership. largely we want people to bring the whole relationship with us we are massively competitive and the growth rate of th

alan greenspan warning in 2007 the world would possibly see double-digit interest rates to control inflationation was out of control. the real story was deflation. i don't get how, the thing is, maybe the word is for the 2020s, is just take it all with a grain of salt, right? >> you know, what the amazing thing is, you listed off a whole number of very intelligent people and those very intelligent people were very, very wrong and, so, you know, sometimes i think people have to think about it too hard. think about things too hard. they always tend to try to extend what happened in the past into the future. the economy doesn't just grow. it is constantly evolving. trying to figure out how it will esolve is very, very difficult. doesn't matter how smart you are, how many years you spent studying economics you can still get it wrong. liz: yeah. >> we saw that spectacularly. my own view the expansion is kind of long. we're 10 years into it. they don't last forever, but i don't see the typical imbalance that crop up before a recession. the federal reserve has interest rates fairly low. there is no

there's been a lot of talk about this, the reasons why it solves some problems, but can create others greenspan got it right, when we worry about inflagsz, it starts to affect inflation. >> we have a moment, jump in there, guys. >> we think the language around symmetry, makes a lot of sense from the fed's perspective, it's been running cold for five years plus now could they let it creep up >> i think the inflation metric almost gets taken out of the equation and they're back to the others they want to continue this expansion. global uncertainty around trade and global growth. i think those metrics come to the forefront from the fed's decision >> the problem is, the policy to keep things stable goes to the root it's important to add that to considerations here. this policy just pumps up prices >> thanks so much. >> the fed consistently mentioned due to the uncertainty of the negotiations with china let's get to kayla. >> what are the outcome of those talks. the business roundtable held a briefing for reporters where jamie diamond gave his views on the trade talks. it will take five years to det