martin feldstein knows of the changing america. dynamics of what we take for granted 30, 40 years ago. it is gone to a new america. >> it has changed a lot, employment has changed, the economy is changing more and more. tom: jeffrey sachs would agree. >> t-shirt, he was my student. -- he should, he was my student. tom: did you give him a b? he says we are a dumber america. need angree and do we education jumpstart with our infrastructure jumpstart? >> i do not know if we are a dumber america but we can improve our education system, particularly primary and secondary education. we are seeing kids not getting the kind of education, not the kind of training to go from school to job. tom: let's continue with martin feldstein and maybe we will go back to the fed. janet yellen with a meeting and our coverage. tom is a huge supporter of the president and is an immigrant, him on the state of the union during the 10:00 hour today. from madrid and new york, this is bloomberg. ♪ ♪ tom: good morning. tom keene here and francine lacqua in madri

liz: yes, martin feldstein feels the fed has fumbled.usive interview, mike jackson, runs a company. he knows exactly what he's doing at auto nation when it comes to figuring out what interest rates will do. he said hikes in interest rates will not derail the stock market. marty thinks it's not going to work. we should have done this long ago. where do you stand on that? >> i kind of agree with that. rates are coming from a very low level, and if you look at long-term rates, they've hardly budged at all. the yield on the ten-year treasury note is 2.5%, that's about where it was this time last year, so you've got a growing economy. you don't have any signs of inflation to speak of, yet, and you've got a well-behaved bond on the long end, bond yields on the long end. that's supporting this market. liz: okay, let me tell you that i think people are watching right now and wondering where do i go? which sectors? or do i stand back? it's awfully rich at the moment. the entire s&p trading at 26 p/e ratio. that's really historically high. >> ther

. >>> next hour, martin feldstein, former reagan economic advisor. a fall. we'll let him make his case at 11:45 this morning. martin feldstein. of the ♪ and in the nation, we need to work together. we need to do it more often to help people that need help. ♪ ♪ i'll stand by you. fvo: he's encouraged other people to look around and notice one another and take the time for each other. that's his gift. ♪ i'll stand by you. my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea. pick your favourite design. personalize it with beautiful images. and...you're done! and now business is booming. harriet, it's a double stitch not a cross stitch! build a better website - in under an hour. free to try. no credit card required. gocentral from godaddy. stuart: well all that talk about a border wall heats up, well, so does the opposition from the gre

german greenspan, one thing we are talking about and i spoke to martin feldstein about it today is our expanding debt and our expanding deficit. it gives pause that we will go to $1 trillion in deficit in the near future. what are those debts and deficits mean to alan greenspan? lan: they mean what it means to everybody else, namely that we are dealing with a fiscally-unstable long-term outlook in which inflation will take hold. in fact, i was very much surprised that the state of the union message yesterday, all those new initiatives were not funded. and i think we are getting to the point now where the breakout is going to be on the inflation upside. the only question is when. we have been through it almost a and wenow of stagnation, are working our way toward stagflation, which as you know is a combination of both of those. its a very difficult type of monetary policy to be in, but if -- but i think what we are seeing eventually here, is an issue where we have got to confront the deficit. in fact, i've been arguing for quite a long time that entitlements are eating into gross domest

does martin feldstein it look good as the vice chairman of the fed?d there is --ving with jerome powell wot is he be good -- uldn't he be good there serving with jerome powell? >> i think he would do very good. tom: there you go. here's taylor in new york. influential koch network is asking president trump not to increase the gas tax. he says a gas tax would undermine the recent tax cuts. jerome powell will replace janet yellen next month. the senate overwhelmingly approved the nomination. he is currently a fed governor. republicans call it a step back in negotiations on immigration. chuck schumer has withdrawn the offer that he made last week to give president trump money to help build the wall on the mexican border. the president says that if there is no wall, there will be no daca deal. area economy opened 2018 with the best growth in almost 20 years. the gauge is now at a level that suggest orderly economic growth is close to 1%. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor

martin feldstein in the journal, everything looks great but the fed still has to unwind.ever been done before he feels like it won't go smoothly as everyone thinks. what do you think? >> my biggest concern is they're unwinding as they raise interest rates. there's a lack of inflation in the u.s. i think both the regulatory halt in the u.s., this administrative state putting regulations on companies has slowed down. the tax cuts are huge. this move in the market year-to-date in the u.s. has been the beginning of pricing in the tax cuts if you look at the sell side estimates, nobody has put it on. they're waiting for first quarter guidance no one has done models so i think there's further to go on the e, as opposed to the expanding pe the e begins to move >> david, you saw this you guys journalists >> yes >> okay. so you might know the answer to that when people write things, does your editor come up with the headline sometimes >> yes almost always. >> but the headline is stocks are headed for a fall. >> right >> so he may not have written that they read everything he says