mr. bernanke and where are yields going from this particular point? >> i think the immediate reaction was there was a little bit of disappointment he didn't come right out and say the enactment of qe3 but the comments say they didn't take it off the board either and they have potential to reduce the interest rate of reserves on banks and extend how low to keep rates for an extended period of time. looking at fed funds, they're pricing it in to the second quarter of 2015. so i think that was what he wanted to accomplish and i think he did a good job at that. we're certainly seeing treasury rates fall lower as a result of that. i think that's probably going to continue. i don't see any impetus for them to go higher at this point. the economic data is mixed and weak. certainly, everything next week we're all looking for is the adp and nonfarm payroll. not expected to be really great again. they're going to be falling from where they have been year to date average. 10-year rates could go to 144 in the short term about a point higher in terms of december f

mr. bernanke says. i think they have qe3 priced in to them and thus those two asset classes have to reprice to lower levels. bonds probably move higher in price and lower in yields. not like bonds offer great value right here right now but the recipient of short-term capital flows as equities and commodities reprice if he takes a pass which i think he will. >> ira, what are your thoughts heading in to jackson hole and we'll mention to get the statement at 10:00 eastern tomorrow morning. >> there's things going on. volatility's the name of the game here. we had hurricane isaac. no knockout blows. there's a lot going on. look at natural gas today. we had a bearish number in natural gas and yet rallied. up over 6 cents. every time this year we had a bearish number on natural gas it's come off. the rigs are still out for, you know, in oil. and yet, so there's a lot of unknowns here. bernanke, hey, more stimulus on the market. more dollars. i think that's going to be bullish for oil. devalue the dollar. the

mr. bernanke, i think. just the possibility that mr. bernanke might say nothing. i want sho show you the futures, we had a sell off going into the close. we lost 40 points, but if you put up the futures, the key thing is people convince themselves that mr. bernanke will not be doing too much tomorrow. then around 11:00, the euro moved to the downside there. look at the drop at the close there. there is the euro around 10:00 this morning. we saw the move to the downside. and they said he's not going to have any bailout -- that weakenned the euro, stronger dollar. commodity stocks moved down. all were weak throughout the day. and the rest of the market remained fairly weak. we closed near the lows for the day. i want to note the terrific numbers for the same store sales. a 90% beat, huh? nobody complained about the guidance or the weather, and no nordstrom was up. i don't know, i hear that the fashion cycle was strong, the big bold colors were really popular, i notice men's ties and pocket squares are bright. they just keep saying the fashion cycle and people like t

mr. bernanke. although the dow dropped yesterday in anticipation and we bounced back after mr. bernanke's speech that came this morning. and we put on rally caps. we are pushing back up again. there we are, up 104 points. at one point the dow up 151 points. let's see if in this last hour we can take that baby up and make it a nice strong end to the week and to the month. all right, let's find out what you need to know right now. we're going to cut through all the noise to get to the heart of what fed chairman ben bernanke's speech really means for investors. ubs economist is joining me now from the ubs trading floor in connecticut with the most important investor take aways from the speech in jackson hole this morning. let's talk about this, it appears that he told us that he does still favor qe at some point. how much does he favor it, though? in your opinion? >> well, i think he's leaning towards qe versus all the other potential options he could use. he had a very spirited defense, people like myself and others in the market have been arguing that there's very little room for

mr. bernanke and jackson hole, saturday mr. draghi and jackson hole. be the key day da points for the drivers next week and through the labor day weekend. >> what do you think ben bernanke says -- >> traders are such cynics. >> i'm cynical, and i think he will not say anything knew. i think basically it will be a watered down version of what they're going to say in september. i don't think he will have any impoe tus to do anything. they're not going to come out and make any statements that are market moving. i know that you're looking for something different, i just think -- i won't even -- it's not they don't want to pay attention, but i don't think it will be as significant as people are expecting. >> germany and greece both made slight gestures. grease with flexibility in terms of getting things done and i think those were positive

mr. bernanke. when the prime minister of spain said no thank you, we're not applying for any aid until you articulate the terms under which the conditionality, that through the ball back into the european union's court. we were down already because mr. bernanke is convinced won't say much, and we said we'll put off on applying for aide, that implies they need a more coherent package here. we're under the control of the central bank's president. >> i think spain wants the ecb to guarantee if they open a program, the ecb will start buying ponds. so far they only said if you apply for a program, we might buy on the secondary market, but no garn sees, and sane wants to know for sure. >> they don't have that approval yet, and they're waiting for them to approve it. >> and that's why draghi wrote that op-ed expertise. >> they're going to articulate a very clear policy. there's a vacuum occurring in that time period between that. that's what we have to live through right now. my bet is that spain will app

mr. bernanke will be steadfast and say he will be there to prop us up should we need it. >> reporter: in 2010, bernanke used the rocky mountain venue to hint at a second round of bond purchases, dubbed quantitative easing or qe-2. his comments sparked a nice rally for the stock market. this year stocks have been in rally mode all summer long, as traders speculate some type of fed action will happen by september. the thinking is that bernanke would lay it out at jackson hole, and do it at the central bank's policy meeting on september 12 and 13. some now believe the fed will use that september opportunity to change its timetable for keeping rates low. >> right now the fed has said they're not going to raise interest rates until the end of 2014. we think they could extend that into 2015 at the next f.o.m.c. meeting. so, we could see the fed chairman talk a little bit more about the pros and cons of doing something like that. >> reporter: after friday and jackson hole, investors are likely to refocus their attention on europe's financial mess and of course there's also that big election in t

mr. bernanke. >> lots to talk about even though it's a slow sweweek?l impact on some month end flows here in the summertime trading environment. perhaps as soon as tomorrow, maybe wednesday. good flows coming out of that. we have consumer confidence figures as well as the italian bond issues. >> very good. >> these guys are good. chad? >> there are three economic numbers coming out tomorrow. like your previous guest mentioned, consumer confidence number. and then when you look at the kay shiler index that should come in around 0% growth. you really need to see that and move it around the number for the federal reserve. >> that's the bell. >> all right. >> chad ruined our record. >> thank you for joining us. quick recap of the day on the street. we had another down monday. the dow has finished lower. it did today down 33 points. >> the nasdaq higher by a little more than three points with a little help by apple. >> big gain in their market cap. the s&p 500 down a frac.

mr. bernanke and the policies of the past. where does it go from here? mr. bernanke shown relung tans to discuss the gold standard in a meaningful way. >> i give sympathy for the idea. i think the idea economically is not necessarily all that sound but i understand people's concerns. you have a central bank to print as much money as it wants and people say what's the basis of my money then if the government can essentially inflate it away. ? we don't have inflation now and there's concern some point in time to get inflation so, yes. it's on the back burner and i think it sounds like a commission in a platform is the equivalent of saying go stand over there and smile. that's what it means for now but let's not dismiss the undercurrent in american politics right now who have serious concerns and an expression in the republican policy and concerns. ultimately, i think the federal reserve can act to stem inflation but that's not entirely clear to everybody. >> all right. >> sue, i just wanted to say circumstances can also make ideas that don't look reasonable or

mr. bernanke and company to fill in the gap. so i think the u.s. economy has got pretty anemic growth. 1.7 to 2% growth for the course of this year. if europe goes down another notch, it's going to hurt prospects here and that will hurt the markets. >> all right. scott a lot of good information. thank you so much. scott mcdonald head of economic research at m.c. asset management holdings >> tom: two big speeches are on tap before the end of the week. one in tampa, as mitt romney accepts the republican presidential nomination today. we'll have more about that in a moment. the other big speech comes tomorrow morning in wyoming. federal reserve chairman ben bernanke makes his annual speech at a central bank conference in jackson hole with investors listening for clues to how and when the fed may do something to help the economy. just last week, the central bank gave its strongest signal yet that more help might be on the way. but behind that signal are a range of opinions, and some dissent from others inside the fed on exactly how to boost the economy

which guarantees a return of at least some of your money whatever is not confiscated through what mr bernanke isso euphemistically calls quantitative easing we call it counterfeiting more confrontational folks may refer to it as outright theft some but officials though most notably fed gov janet yellen says there may be more ahead they've been hinting that the central bank may ease yellin in a recent speech to the boston economic club advocated for an extended period of highly accommodative monetary policy these are of course more euphemisms as part of the central bankers efforts to revive the economy believing the economic future of the country rests on their atlee and shoulders look at ben bernanke there but doesn't really and what if you don't trust policymaking academics with track records as bad as the feds to run the economy anyway for example listen to vernon kay today talking about the bank stress tests the tests also showed that even to extremely adverse hypothetical economic scenario most of those firms would remain able to provide credit to u.s. households and businesses. really ba

mr. bernanke.n the last couple of days and particularly today that mr. bernanke is likely to unveil qe3 and therefore there is some understandable profit-taking. the trend is now slightly to the downside given what's going on today. that's a ten-day chart you're looking at. the other thing you look at in daylight today is how much interest there is in shorting the market. so look at the s.h. this is one of the ones i watch. in a day when it's been lousy, you can short the s&p 500. this is the one everybody uses. not only is it up, that's understandable. it's the inversion and the volume is up. that's what we're looking for. people are coming in trying to play a little bit on the short end. everybody hates quantitative easing. they think it's wrong. they think they're distorting the markets. it does distort the market but if you don't understand how it distorts the market you're going to get in trouble. try to get a tight shot of this. this is q e.on the stock market. here is qe1. the second one, ju

mr. bernanke? >> well, that is the $64 million question right now, chuck. have the opening bell in 4 1/2 minutes and we will open up by triple digits, but the real countdown is 45 minutes from now, because that is when the embargo lifts from ben bernanke's speech. and you know last week we had the minutes released from the last fmo meeting and we could see some quantitative easing coming from the fed and that could happen sooner rather than later. the minutes were outdated and some people suggested that the economic numbers are better than expected so that the fed will not do anything until it sees numbers and it is going to see the jobs report next week, but remember, jackson hole is where bernanke first laid out the plans two years ago for qe2 and that is why people have high expectations head g toing into and this is a place where bernanke can go ahead to speak to his peers and the people there and lay out a thoughtful process if he wants more quantitative easing in, and the market is going to be listening closely and things can turn quickly, but the sma

mr. bernanke may kind case that on august 31st, and the european central bank, when they get back from their vacation in september, they will do something dramatic because they have to. >> upside for the broader market. peter, i know that you own or you have owned banks in the past. is this an area you want to buy into or are you saying away with the regulatory uncertainty. peter sorentino, sorry. >> we had been moved into the regionals believing that the north american economy has been stronger. the money centers still worry us. we think trading volumes are questionable. so for the nuts and bolts and industrial part of the economy. that part of the banging sector will prosper and do well. we're putting money to work there, but we're still cautious. >> peter, an odd trial floated by the white house that they would consider selling oil out of the spr, i'm hard-pressed to find a reason why other than israel moving on iran, do you think that would happen? what do you make of all of that? >> it's politicking two and a half months before the election. if you look at the last time they did release

mr. bernanke's head, let alone mr. draghi, he is his own man, he's walked back a bit. all hope is not lost here if they come in, if the ecb becomes part of the rescue fund, i think it's potentially powerful. i think markets are right to be disappointed. >> what's the next step? >> the next step is september. >> they have could come up with rules of central bank of engagement and then somebody has to step forward. so let's say those bonds blow out. okay? and let's say spain has said, we can't do this on our own. they ask for a rescue fund, negotiate that for a while, they have money from the efsf. still not clear if the ecb could act before the formal implementation. clearly we already know, and i've reported this, the germans disagree with this already. >> brian kelly, so lack of answers means dow jones industrial averages down 137 and counting. >> mario draghi said a lot of things, i may do this, i may do that. he may have said, i may buy a red nose and join the clowns. nothing happened today. there are so many uncertainties now, will the esm get approval by the germa

mr. bernanke's speech, monetary policy since the great crisis, that is the title we will hear in one weeka lot of members support easing unless there is a clear indication that the economy is easing. it's going to view the whole thing and give a with a update. the economy improved a little bit. not enough to go ahead with easing right now. what will make the difference is nonfarm payroll. if that is weeker, that could tip the deals. >>. clint, most of the commodities were flat on the year, and you have that baltic dry index, what's going on with kmodties? >> it's very carry, they have been beaten up and trashes and a lot of it is because we have seen strength in the dollar which is going to move inverse to the euro, now we're seeing this connect a little bit. the dollar come in and starting to see gold, commodities, et cetera go higher. bob is right, it hings on what fed is going to do and more important whether the market believes it's enough. we have a short time period and the romney camp saying if he is elected we will not see any more quantitative easing. we have to watch what the ma

mr. bernanke has been very vocal about it has not shied away from the fiscal cliff, he has a very negative that comes to the word congress. do you think his words carry any weight in washington now? >> not too much. i think chairman bernanke should stick to monetary policy and not have all of this with regard to fiscal policy because i think they will have an election that will change all that and this economy will do just fine. david: when he buys treasury bonds, does not begin to participate in the political process and does not provide cover for freespending politicians spending money they don't have? >> not really. they can spend money they don't have without the cover of the federal reserve. so that is already there. cheryl: former governor of the federal reserve board. thank you very much, it is nice to talk to you. >> good to be with you. david: the highly anticipated speech by ben bernanke has come and gone and guess what, we don't have a clear idea what he has in mind. perhaps st. louis fed president will have an idea, he joins us live with our own peter barnes. cheryl: and his ta

mr. bernanke to disappoint and he did a little bit but europe has been strong and the belief that europe's going to do something that's been strong and kind of messed with a lot of people's plans to sell off. these short s&p funds out there that were very active having very big volume again today and volume of people getting out, mandy. so a lot of dreams dashed. take a look at the month. s&p 500 up 1.25%. not a bad month going in to september. >> not at all. the selfish central bankers, ruining everybody's weekend. i believe you have a special guest with you. >> i do. this is a first for cnbc and a very, very rare interview because invisible ben bernanke doesn't do a lot of interviews and pleased to not welcome him here today and you're very busy but i need to ask you, first off, what are your plans for interest rates? any quantitative easing on the horizon. where did you get that fabric? you know? he's -- i can't get anything out of invisible big ben, mandy. >> kick him a little bit. >> yeah. this chair is my toughest interview yet. all right. let's go from invisible big ben and trending

mr. bernanke, i teach economics and business law in high school. what do you believe is the best way to anticipate another financial crisis? >> how to anticipate and prevent a financial crisis? [laughter] >> not an easy question. he obviously given the cost of the last financial crisis, we would like to do all we can to anticipate and prevent another financial crisis. if one happens, to mitigate its effects as much as possible. relatively speaking, the new regulatory structure has a two- part strategy. the first is that we are now taking -- the financial regulators, the government in general, are taking a more systemic approach. before the crisis, every regulator had its own particular institution and a market that it was responsible for. nobody was there watching the system as a whole. the idea that regulators ought to work together to identify risks in the broader system was discussed even before the crisis but it is now part of what the new regulatory structure is trying to accomplish. so we have four examples of the call the financial stability

mr. bernanke. let me comment on the mna michelle was talking about. i love the deal with ibm.his is a very offensive deal. it is not defensive. human resources software. that's not anything ibm ever was associated with. they do databases and servers and this kind of stuff. now they are going into territory that would traditionally held by s.a.p. oregoncle. i think this is offensive. getting out into everybody else's face. >> does that speak to this idea when a company has confidence in the economy in the market, they do this kind of deal? right? >> it means everything -- it mean that -- in this area, they have to start getting into everybody else's face and everybody else's business to really find new ways to grow. they are going into areas software areas that are traditionally not been part of the ibm portfolio. i think that's a sign of the times. you have to get out of where -- glitches you are in to grow. >> bruce, you would think there would be more deals if anything because money is so cheap right now. and valuations are as low as they are historically speaking. i guess t

mr. bernanke will buy sometime, end katding that the fed is on the case and watching, but don't look for them to do anything. >> i know, david. but you are not looking for anything either. with the market around four-year highs, how much anticipation of anything happening is built in and how much might we fall if nothing happens? david, are you there? okay. we appear to have a problem with the audio there. stu, i'm assuming you can also hear, still. >> yes. i hear you loud and clear, mandy. so, you know, i don't know how much is priced in. i do know that the rally we have had as of late is pretty listless. not a lot of volume. so, there's a certain degree of complacency maybe coming to be built in here. but i think in the end, look, policymakers will be on the case here, both the u.s. and ecb on the case. i wouldn't look for fireworks any time soon. >> david, you with us now? all right. not ready to go yet. stu, you get the show all to yourself. your plan has worked. congratulations. >> yeah. personally turned off the switch. >> s&p 500 be higher when we ring in the new year this year or

mr. bernanke has not led to inflation because it is spent so slowly.the velocity collapsed for you will see inflation almost overnight when it picks up. with this kind of environment, the largest economy in the world, people come to the u.s. to invest their money when they are scared. the morning people have an alternative to inflation starts, if you have $17 trillion you pay interest and enormous% you'll pay more for interest they and national security. it is very dangerous setting of difficult economic choices later on. >> host: mydb of presidential candidates who are experts like rob portman. speak to his ability to help. >> guest: clearly with expertise the potential that no the most are paul ryan and rob portman. the office of management budget, remarkably and broadly experienced. paul ryan probably the brightest ever to chair the committee. and with portman he comes from ohio and candid the ryan would carry wisconsin. you there one is the asset. >> caller: what about j.c. what stocks would he not even considered him? mihm media narrative republic

mr. bernanke have been the stewards of our economy, yes there should be quite a bit of humility.over the last three and a half years to me has been an utter failure. i think that will be one of the major issues of the campaign. i did not hear senator corker's specific comment, but i'm sure it was well reasoned. >> senator, good to have you with us. thanks for taking time. >> good to be with you. >> senator wicker from mississippi. >>> stick around. up next we'll sit down with new york jets owner woody johnson. he'll talk about the message investors can hear from the romney ticket. don't go anywhere. i bought the r because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up. it's always a gratifying experience. it makes me feel good about my car. i absolutely love my chevy volt. ♪ how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10

gerri: let's talk about ben bernanke, people are expecting a ray of sunshine from mr. anke, will they get it? >> it is pretty much priced into the market. i am split with this. i think something happens with the fed guaranteeing the fed comes out with another round of quantitative easing. i don't think that will do it because if he does come out, qe3 is gone, what everybody is expecting. there will be pressure on it. something big has to happen. i think the september meeting and the reason for that is it maybe a conspiracy theory is in me, they want to do it ahead of the election. gerri: that implies ben bernanke is doing the bidding for the white house. you believe that? >> i do. that is just my pure opinion. it will make him look good, making it a couple more years to come out of this recession. gerri: it makes ben bernanke look better, not just the white house. >> it is extremely powerful. european central bank tied in, if you want two weeks, take two weeks. gerri: get ready for stimulus. we will be right back. [ male announcer ] at scottrade, you won't just find us

mr. bernanke may or may not say. >> fed chairman ben bernanke will open the possibility of additional quantitative easing in his most watched speech this morning. b bern during move of hhis tenus chairman doesn't front run the committee. there's a payroll report and several reports on the services sector and manufacturing. plus there will be a pretty long and drawn out debate on the cost and benefits of additional quantitative easing. one person we spoke to last night about the benefits and the cost was philadelphia fed president charles plosser and said the math isn't there. >> it's a cost best analysis. the effectiveness of q search i don't think it meets the cost benefit test right now. >> part of the problem for policymakers is that the data has been pretty much in the middle. growth is about 2%. just about to keep the unemployment rate maybe stable, maybe rising a bit. doesn't create a definitive case. we talked to dennis lockhart and he said it was not an easy decision. >> it's close call, really. if we were to see deterioration from this point and let's say a persistence of job growth numbe

mr. bernanke in jacksonville are lower at 1.2% on the ten-year as are ten-year bund yields, trading at 1.3%. currency markets, euro dollar is at 12557. aussie/dollar back down toward the one-month low on tuesday. sterling/dollar, steady. >>> what about the asian session? we have more out of singapore. >> thanks, ross. more oinvestors awaiting the wyoming gathering and ecb meeting yesterday. steel makers and oil majors, sold off heavily on profit taking. airlines tumbled on sour earnings. agbank reported 21% in first half profit in line with reuters forecast and we'll watch stock reaction tomorrow. shares in hong kong followed suit. in the red, china blue chips such as china coal energy, chalco and costco pacific weighed on the hang seng. blue chip down as worries. nikkei climbed 1.4% helped by 35% surge in renasase on kkr's investment offer. sharp shares after announcing a voluntarily retirement plan. kospi higher by 0.6%. samsung electronics extended it's rebound, up 3% today. lg electronics surged more than 4% after unveiling new smartphone. gains in telecom were countered by loss in weak

mr. bernanke to name the policy tools a little bit more.ybody has given up on the idea he will layout qe3. remember, he is going to layout the whole history of quantitative easing, how it worked, what he liked and not liked about it and people brought up to me the old 2010 speech, the one that moved the world where he signalled purchases of long-term securities, a famous line in there taking a day or so for everybody to figure out he is talking about qe2. remember the market took off from there. maybe more clearly laying out the policy tools including the forward guidance or anything else he wants to will nullify a lot of traders concerned about this. other than that most of the guys want a lot more clarity on the economic outlook. in fact, that may not real market moving news today when he starts talking about where he sees the economy going and hopefully he will get that in and it won't be just a flat discussion. about this vooed man flap i wanted get to, the sense i get calling around watching with the euro watchers is this is a big flap

mr. bernanke at the jackson hole do you think the rhetoric will be easier because of more positive economicnce the last fed meeting?. >> i really think so. you're right. it comes down to some of the housing data. i note today's housing data wasn't great. that is the one beacon to the economic data. we think, nothing the fed does will be anything near, if housing goes up, the multiple that can do to consumer confidence is much greater than any way the fed can flood the market with money or whatever you want to say. ashley: yeah. >> if housing goes higher that could be the multiple to bring the confidence back and equate to higher equity prices we think here. ashley: last time you were with us you predicted the summer rally. well-done on that. do you think stocks are a little overbought now or can it grind higher?. >> well that's right. at schaeffer's look at market everything is based on expectations. in early june i was said look for summer rally of expectations were very low. we had the nice rally. expectations are starting to come higher. simply put we're at the peak early april. we're st

mr. bernanke does that, we may have a short term drop. we will go up from here, i believe.ividual investor interest? have you seen that way at all? really in the last year? >> i think individual investors have actually picked up in the last two months. we have had a very quiet here since last august when gold just took off and went to 1900, came back down and then went up too fast. it has been about ten months of backing and filling. we have had a much bigger interest in individual investors and gold. dagen: thank you so much. david williams of strategic gold. >> thank you. dagen: american express has been a sponsor of the u.s. open for 19 years. cheryl casone has made her way out to the tournament. hey, cheryl. cheryl: good morning. we are at the u.s. open. the gates have opened. there is a much bigger crowd coming in this year than last year. as you mentioned, american express has been on the ground here as a sponsor for 19 years. the big story this year, they have a 20,000-foot fan experience. alexander chen marketing over at american express joins me now. you just loade

mr. bernanke, sandy. thank you. advertisements can roll out in a whole new way thanks to a up-and-coming business. the company is called, star toilet paper and offers advertising space on toilet paper. joining me the company's founder, jordan silverman. it is a business plan, a model thaw spent, many, many months planning and putting together. you still have to talk about this with a sense of humor. it is funny, jordan. it's clever. do people actually read toilet paper before they use it? >> they never had the opportunity before but we did surveys. we found that over 75% of people would read advertisements on toilet paper. lori: what inspired you? how did you come up with this? >> sitting in the bathroom, bored, using my phone. how advertisement is every facet of their lives that people don't notice. this is opportunity to get people to read and advertising is getting people to notice your company. lori: you brought some samples. important nonetheless as i do say so. is that printed on here? is that newsprint. are y

mr. bernanke likes to rattle. it's there, he can use it but i don't think he want to use it because he realizes it wasn't a potent weapon. >> the markets diplomat run up on -- they ran up on improvement globally? >> yeah, there's actual improvement out there. you know, at least in the united states. you still have lots of problems in europe. the papers today -- you read papers about europe and it's depressing. this has been coming on. this isn't anything new. this is the problem, is that this sort of wags we've been in for the last four, five months has been pretty much the same. u.s. economy has been weak, shows flashes of strength and showed a soft spot. europe continues to erode. they can't figure out what to do. it keeps getting weaker. it's like termites. they can't decide what to do so it gets weakened, weakened and they continue like it's not a problem. i think europe is a big problem and getting worse. >> bob, one of the keys with europe is that businesses have no comfort. you know, a multimillion euro inv

mr. bernanke, as. -- has. and documents for 2008, 2010, 2010 should be investigated by the congress, because you cannot in a free society at the amount of power and money invested in one person that chairman bernanke has had. he has moved trillions of dollars, and i think that we need to have a much more accountable, much more reform federal reserve. i also believe, frankly, we should go back to a stable dollar and we should find some method to transition to having a much harder currency, closer to gold than the current inflationary paper we have. host: how significant is the debt right now? guest: in the long run, it becomes very significant. we have been in a very strange period were two things have been happening that nobody could have predicted. one is that inflation is two things. how much money is available, how fast it is being spent. what has happened in the last three years is that bernanke, chairman of the federal reserve, has dramatically expanded the supply of money, but it does not lead to inflati

mr. bernanke has and i think the documents for 2008, 2009, 2010 should be investigated by the congress. in a free society, you cannot have the amount of power and money invested in one person that chairman bernanke has had. we need to have a much more accountable and much more reformed federal reserve. i think we should go back to a stable dollar and we should try to transition to having a much harder currency closer to gold than to the current inflationary paper we have. host: how significant is the debt right now that guest: in the long run, it becomes very significant. two things have been happening and nobody could predict. one is that inflation is two things -- how much money is available and how fast is it being spent. in the last three years, ben bernanke has dramatically suspended the supply of money but it has not lead to inflation because it is being spent so slowly that the velocity has collapsed. there is a lot of paper floating out there. the second thing to remember is that when you were in this kind of environment, because we are still the largest economy in the world and

mr. bernanke we are, we're weighted to the upsi upside. no major position.uro/dollar is up near the session high. european stocks were down yesterday. pretty much recovered the loss we had during yesterday's session. ftse 100 up. ibex is up a percent today and it's been the best performer in europe over the last month up over 7% for the month of august. now, despite that the ibex stocks doing fairly well, the yield on the ten year is 6.67%. so still firmly above 6.5% this morning. meanwhile more chat going on around the ecb moves. we had a report in the newspaper in germany which suggests the jens weidmann had been considering resigning because of mario draghi's planned to step up bond purchasing of peripheral debt. they refused to comment on that in another newspaper earlier. weidmann said he wouldn't resign then he wouldn't able to do his job to the best of the ability and put the bundesbank. we had a finance minister saying angela merkel believes it's good the bundesbank wants politicians. he said it's a full rescue program for spain is not on the agenda.

mr. bernanke really wanted to come up with qe-3, 4, we know he could do it.hink would be the side bar to that if he did? >> i think he could do it tomorrow if he wanted to. he could get a majority opinion. what he doesn't want is four, five, or maybe six fed presidents immediately run to you or to microphones and say this is a mistake. we shouldn't have done it. because it undermines the policy. i think that's what's holding them back. a strong, vocal minority of people that are dead-set against it. >> there's discussion going on these days that many of us were having awhile ago but now it's grown to big numbers. and that discussion is, from the fed's vantage point of these programs, is it synonymous to look at effects on the economy and effects on things like markets? >> yeah, i think they're two different things. i agree that the markets have been affected by the fed from quantitative easing, lowers interest rates, forces people out the risk curve. pushes up asset price. i get that it works. but the fed would want you it believe there's another half of it.

mr. bernanke has and i think the documents for 2008, 2009, 2010 should be investigated by the congress. in a free society, you cannot have the amount of power and money invested in one person that chairman bernanke has had. we need to have a much more accountable and much more reformed federal reserve. i think we should go back to a stable dollar and we should try to transition to having a much harder currency closer to gold than to the current inflationary paper we have. host: how significant is the debt right now that guest: in the long run, it becomes very significant. two things have been happening and nobody could predict. one is that inflation is two things -- how much money is available and how fast is it being spent. in the last three years, ben bernanke has dramatically suspended the supply of money but it has not lead to inflation because it is being spent so slowly that the velocity has collapsed. there is a lot of paper floating out there. the second thing to remember is that when you were in this kind of environment, because we are still the largest economy in the world and

mr. bernanke, by the bernanke put. i would agree there is some kind of premium here on the u.s.this idea that the only reason that we're near four-year highs is because there's the prospect of qe 3 is ludicrous. whatever that premium is, that multiple above where we normally would be, it's not the reason that we're holding up better. the reason is, because earnings are not collapsing. yes, they are not accelerating like they were in the past three years. we're expecting 6%. these are new numbers now, after disappointing second quarter, we're expecting earnings to grow 6% this year. u.s. corporate earnings are just shy of all-time highs. we will probably hit all-time highs this year. they are not coming down that much. so the bottom line is what matters is all the u.s. earnings that are coming in here and the fact that we are still the best, safest haven in the world. finally, i want to mention a polowe's. this is the second time that they have missed this year. so everybody now agrees that they are clearly losing market share to home depot on a second miss you certainly don't ge

mr. bernanke, i teach economics and business law at a high school. i have this question for you. what do you believe is the best way to anticipate and prevent another financial crisis similar to the one that started in 2008? thank you. >> how to anticipate and prevent a financial crisis. an easy question. [laughter] given the cost of the last financial crisis, we would like to do all we can to anticipate and prevent another financial crisis, and if one happens to mitigate its effects as much as possible. broadly speaking, the n regulatory structures, the dodd- frank act, the basel accords, our a t to the zero-part strategy. the first is that we are now taking -- the financial regulators, the government in general, are taking in more systemic approach. that is couple for the crisis, every regulator had its own particular institution, a particular market it was responsible for, and nobody was there watching this system as a whole. the idea that in fact regulators should work together to identify risks in the broader system, which is called macro credential regulation, was discussed

mr. bernanke was 85 years old. ben worked at occasionally when he was young. our condolences to erin burneb and the bernanke family. based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. >>> let's get down to the new york stock exchange. jim cramer joins us now. how are you? >> great. how about you? >> great on this side of things. what are you looking at this morning? >> there's a couple things. there's, i think, this restaurant business is on fire for a lot of companies, brinker was a good number. wendy's was a good number, jack in the box, good number. if you take them along with macy's, you get a view that people are out spending. cedar fare, that's a big theme park, put that in with disney, people are spending. they're not spending big but they are spending. i like that. >> what else is on your list? >> a little b

mr. bernanke has and i think the decision documents for 2008 in 2009 and 2010 should all be investigated by the congress because i think you cannot in a free society have the amount of power and money invested in one person that chairman bernanke has had. he has moved trillions of dollars and i think that we need to have a much more accountable and much more reformed federal reserve. i also believe frankly we should go back to a stable dollar and we should try some method to transition to having a much harder currency, closer to goal than to the current inflationary paper that we have. >> host: how significant is the debt right now? >> guest: we have been in a very strange period were to two things have been happening that nobody could have predicted. one is that inflation for our audience, inflation is two things. how much money is available and how fast is it being spent? what has happened in the last three years is bernanke the chairman of the federal reserve has dramatically spent the supply of money but it hasn't dealt with inflation because it is being spent so slowly that what is

mr. bernanke, i teach economics and business law in high school. what do you believe is the best way to anticipate another financial crisis? >> how to anticipate and prevent a financial crisis? [laughter] >> not an easy question. he obviously given the cost of the last financial crisis, we would like to do all we can to anticipate and prevent another financial crisis. if one happens, to mitigate its effects as much as possible. relatively speaking, the new regulatory structure has a two- part strategy. the first is that we are now taking -- the financial regulators, the government in general, are taking a more systemic approach. before the crisis, every regulator had its own particular institution and a market that it was responsible for. nobody was there watching the system as a whole. the idea that regulators ought to work together to identify risks in the broader system was discussed even before the crisis but it is now part of what the new regulatory structure is trying to accomplish. so we have four examples of the call the financial stability

mr. ben bernanke, if there's a fiscal cliff, we are giving you a bit of a safety net. there's not a lot he can do. the home sales, copper is up a little. i don't see a lot of strength in the u.s. economy. >> the employment report certainly changed things. that's, i believe, what he was immediately referring to when he says that the minutes were a bill stale. that doesn't change your thinking in terms of we should expect out of the fed? >> no. >> okay. >> you don't seem to be that interested in the fed, period. you made your point last night that banco bandara is what it's all about. >> what the fed can do, 2010 focus, what will the germans do? what will the spanish do? what will the french do? the idea that we need banks that own a lot of sovereign bonds to be kol convenient is the far more important than what the fed can do or not do. anyone who's in the market for a mortgage knows if you have 25% down and you have pay stubs you can get an unbelievable mortgage, not unlike what my father got when he came back from world war ii. i truly understand the desire to focus o