mr. bernanke and then dropped 100 points. people realize while mr. rnanke was very down beat and didn't say qe-3 was coming, laid the groundwork. mr. leisman laid it out accurately. >>> a little bit of action in material stocks. once again, i look where movers are, consumer names, disney and avon and health care stocks, pfizers and merck again doing well and coca-cola to the upside. what we need right now is rain in the midwest. mosaic, a big fertilizer company supplies a lot of farmers out there and need a lot more fertilizer. their report was very good and they're one of the market leaders. >> disney is up because last week, my family spent an enormous amount of money at disney world. >> how was business? >> it looked a little lighter than it has in the past. i think that might be the heat. it was extremely hot down there. >> it was hot in l.a., too. >> i think i will have to pay more for italian wine. we need a christmas club for italian wine. >> to brian with a market flash. >> mmr reported a wider than expected loss and missed on revenues as well

mr. bernanke. he's generally bipartisan and therefore advocate his analysis of the economy and there's little to do with the right partisan caricature over here. i read the economic report. there's a basic statement or economy has been recovering from the terrible crisis by the complete absence of regulation and unchecked responsibility by some financial institutions, obviously not all. and we are told that it is slowed down by a number of fat tears. the most important according to the way it's presented as what's going on in europe. nothing we have done is responsible. in fact the federal reserve is helpful for partisan criticism for cooperation with the ecb to ease the situation to her benefit. we are told there is a problem because there's the attacks and policy. >> i think we can cut military spending. a better way to do it is to tell western europe are unknown as to stop fakery and we've got to win with the non-existent soviet union. the fact is the uncertainty that mr. bernanke talks about ou

mr. bernanke. -- selecting mr. bernanke. my point was that the chinese television coverage emphasize the critical importance of the economic relationship and treated as secondary the issue of the dissidents. american media created an impression that the main event was the dissident and a minor event was the economic relationship. host: here's a story from the united states trade representative, a press release that came out today -- is this the kind of story that cc tv news would cover? guest: i cannot say for sure. i am sure this will be on the agenda for consideration. the general policy is to take a story like this and presented from both sides. so long as there is a chinese position to be voiced and alternative positions, both sides will be represented. there has been a lot of debate will last several years about the remembyi and where should be verses the dollar and in this country, there has been pressured that it has been unfair not to allow the rmb not to be valued up for. the chinese feel that they cannot move too q

monetary policy prominent former chairman of the federal reserve paul volcker has had this to say mr bernanke you can talk i'm sure he's warning people about but he doesn't as they say you're going to be measuring going to solve all these brutal problems. so what should we make of this is this a come to jesus moment for the fed chairman has he actually been humbled by reality or is he just holding his best hand from last that's the big question and here to answer it is our guest lou rockwell the or excuse me according to our guest i should mention a little bit about of the rockwell the monetary control act of one thousand nine hundred gives the fed the authority to buy much more than just treasuries and agency debt so that's a key point and he joins us now to discuss the chairman's latest statements as well as the usual brew of financial to cannery lew rockwell chairman of the ludwig von mises institute and author of the left the right and this days so the rockwell first of all thank you so much for coming on the show and i have to say thanks i had the pleasure of coming on your show yesterda

he you know you've done a great job well mr bernanke he should be doing a lot more to help the economy right now the twin mandate is to prevent inflation and to have full employment we don't have any inflation so you should be doing more to cause them plumber to try to drop but i feel like it's becoming a bit of a finger pointing thing right is that congress will sit around and say well you know what congress is just so gridlocked right now there's so much partisanship that we can't get anything done and so the federal reserve should act then you have ben bernanke saying that will congress really has to act about this fiscal cliff and we're just going to sit back and if we need to then we'll do something if he wants congress to act so bad why doesn't favor thank you just come out and say we will take no further action period well i don't think that's going to force congress to act it's hard for me to see that that would affect congress's actions one way or the other on the fiscal cliff but i mean the point is right now he could be doing more to try and stimulate the economy could say f

mr. bernanke, the alabama republican joins us now for an exclusive interview. ressman, thank you very much, great to have you with us today. >> great to be with you. >> thank you, charles schumer pressured bernanke because he said congress couldn't. you tried to debunk that today i feel, why did you feel you had to refute senator schumer. >> yesterday i thought the senate was saying to bernanke that he had to do something and get the economy going, and what i pointed out today is the buck stops with the president and the congress. it's the congress that needs to confront the physical cliff that we're going to go through. we're going to have a $1.2 trillion worth of spending cuts. most of that in defense. secretary panetta said it would be like shoots ourselves in the head. we'll have a tax increase for every american family averaging $3,000. and in a fragile economic environment, that's a chance we should not be taking. we ought to be addressing it today, and chairman bernanke said it's not a time to do it in a lame duck session, the time is now. and i have to a

mr. bernanke, good to have you. i want to talk about the core of our issue in dealing with unemployment. that is the serious paralysis of partisanship that is basically hijack to this congress. i say that because i think you all have done pretty much what you can do. in the fed, you have reached the point of what you call zero bound you cannot go any longer -- lower with interest rates. we talked about the policies we make. nowhere is the economy more impacted than health care. the whole issue with the rising costs of that -- week passed a health care bill and in that bill it has a direct impact on employment and employing people. for example, in their we have medicaid expansion which will bring in another 18 million individuals. most importantly, it will have an extraordinary impact on job creation, maintaining jobs. most critical, on a partisan basis -- those states that have the most to lose, that have the highest rates of uninsured and the highest rates of unemployed are saying that will turn away billions of do

mr. bernanke got into the meat of his q and a. gdp numbers might be too high, they're own estimates, it became clear to them, the traders, there would be some interest in qe 3. >> thank you for joining us, that's the "closing bell" exchange. >> we have kate kelly here at the delivering alpha kahn for instance with breaking news right now. >> thanks, shortly after your best ideas panel, i spoke to the ceo of blue mountain capital, but it was interesting today because of what he discussed on the panel and he gave me exclusive details on how his firm was involved in helping jpmorgan unwind the trade in london this year. they have said very little publicly about it. there were two things that were interesting. they were involved in two ways. about a year ago last summer and fall, blue mountain got into an intest arbitrage trade, it's a index that tracks the debt of about 121 issuers. they shorted that index and they went long in the names and took advantage of a gap in the spreads. this is something they do a lot so they were comforta

mr. bernanke tomorrow in anything at all? >> testimony same both days.3, this is it. they have to do it now. this is do or die now for the qe3 crowd to trade on that. i personally despise that trade but i'm a growth guy. >> all right. >>> let geese to the nasdaq where courtney is keeping track on the movers and shakers there. hi, court. >> hi, good afternoon. the nasdaq composite not faring well. let's start with research in motion. shares below $7 here. this is lows since 2003. the company having to pay $147 million in patent infringement. that decision did come out on friday and shares under pressure today. social network under $30 a share. facebook down more than 4%. some analysts think the pressure of the other social media names are weighing on facebook today. take a look at of human gnome science. shares up 4.6% and just below the mark and shares of dendreon up about 8% in sympathy and look at shares of vivus. tomorrow the weight loss drug deciding whether to get approval. shares up 6.5%. sue, back to you. >> courtney, thank you very much. >>> a ma

mr. bernanke's tools are extremely limited. mr.y care a lot about it and i'm extremely worried. >> neil: he sums it up brilliantly, dagen. >> he is brilliant,'s an absolute genius. >> and to say that mr. obama doesn't care-- >> now what? be careful what you wish for, because this congress is working a lot more 'cause you know what they're going to be doing? they will be spending money and still not addressing the fiscal cliff that is approaching. because-- go ahead. >> i would say that it sounds like they're trying to jaw boning, qe3 before the election, that would be an amazing development. >> neil: another round of easing. >> and how much more ease can they have? >> that's what i'm wondering, adam. if ben bernanke has done all he can do, whether you agree or disagree with what he's been doing, at least's been doing something. i don't know what more he can do. take him out of the equation and talk about the senate and the house for that matter, what they're not doing. i do see an end of the year not so fun event. >> i don't disagr

mr. bernanke. dodd-frank has given congress more authority to oversee banks and we all have no authority to make sure firm rules are in place, they are followed and that actors are published. unfortunately, as we all know, since 2008 we've seen too many examples of wall street breaking rules, laws and common standards of ethical behavior. i follow up on some issues that senator visitor talked about. i want to run through for the sake of repetition to recognize what these are -- investment losses, sec enforcement actions, municipalities selling credit derivatives, five of the nation's servicers found to a forged documents, the nation's largest bank in january halted consumer debt collection lawsuits over concerns on poorly maintained and inaccurate paperwork, the largest bank has lost $5.8 billion on large, complex derivatives trades as it appears there in place in this reported losses. 16 banks are suspected of manipulating libor. in june, one publication reported on a criminal rigging trial so tha

mr. bernanke offered a down beat view of the economy, said it was time for congress to enact fiscal policy. he did not rule out any more moves by the fed but did not promise any either. the markets ignored the chairman's dim view and mostly focused on earnings throughout the week which in general were better than expected. by thursday stocks had a 30-day winning streak and then stocks fell on friday. ge the largest conglomerate and economic bellwether beat expectations of $3.1 billion for the quarter. among financials, citi surpassed analyst predictions as did bank of america and goldman sachs and morgan stanley fell short. in tech land intel beat estimates, ibm as well, and raised expectations. ebay, google and microsoft all beat expectations and microsoft did post the first ever loss, revenue a bit light as well. mixed housing news. housing starts hit a four year high in june driven by a jump in is single-family homes and rising by nearly 7% but existing home sales fell more than 5% although prices were higher. analysts say prices rose because there were fewer distressed sales. the marke

mr. bernanke is do or die is wrong. he'll give a nod to qe3, but i don't think he's going to come out with any aggressive statement. on goldman sachs, at least good enough and generally better than expected. a couple of things. expectations were very, very low here. the stock went from 125 to 100 last year and where everybody was expecting these disasters, investment banking fees, the ficc numbers, they were all better than expected and how about the buy back? much higher than anticipated. overall, it was a good quarter and now, i think i have to increase 2012 earnings estimates for goldman given the win here. remember, all this stuff is loaded towards the fourth quarter. you've got a 1.78, but go to the fourth quarter, it's almost $3 they're looking for from goldman. i think that's why a lot of analysts want 65 cent beat and say could we now confidently raise the numbers. that's going to be a bet on how confident they are in the fourth quarter numbers. so it's going to be a lot of debate among the analysts. the global

they belong to them as politicians the chair of the lopez dynasty of the seat of government ok mr bernanke of the body some say you could have drawn on popular support for reforms for instance in agriculture or energy security to resist a parliament that was getting increasingly antagonistic do you think you missed a chance to ease tensions is there anything you could have done better. for the young i don't think so this parliament is dominated by traditionalists conservatives and right wing it and even if jesus christ shows up out of the blue and tells them to change their mind they were right we were sabotaged all the way the parliament gave us a budget with a deficit of eight hundred billion dollars so funds were in short supply for everything and when the chaco flood propelled a deep crisis they asked us for fifty billion dollars for their politicians mind you these politicians are members of political parties who get paid for nothing so we said no well that was the straw that broke the camel's back on the. last question mr president and also franco promised he would not run for presid

mr. bernanke surely didn't do in his speech that he gave to the university in washington, d.c., if you do the homework, you find out that over the last 150 years, the output of gold annually on average has been approximately 1.5% to 2% per year. i'm talking about over the full century and a half. now, the growth rate of population has been approximately 1.5% to 2%, and the growth rate of output in the developed world has been 1.5% to 2% of output per capita. this is the hidden equation, which established a proportionality and the stable price level between the gold monetary standard, the population growth, and the general output in the developed world. so it seems to be -- rather, it's a hidden equation because it's never made explicit by the apostles of central banking. but the monetary standard established in gold created a stable price level and conditions for economic growth that were no accident. they were, in fact, a proportionality of a product of proportionality between the production of gold output and population. >> i'm going to ask one more question and then open it up a tiny b

mr. bernanke, a bush appointee, was doing the wrong thing necessarily. but we took back that power. so this is probably a show because on the two serious efforts to curtail the fed's powers, my republican colleagues aren't there. but secondly, and as i said, i'm consistent, i don't think we should do any of these things. i think what we did with regard to openness makes sense. i'm not pretending to be tough when i'm not. the speaker pro tempore: the gentleman is recognized for an additional minute. mr. frank: but what it will do is destabilize. we have worries about expectations. there is a fear that we will be too inflationary or that we won't grow enough. people on wall street are not as sophisticated as some people think. they're not even sophisticated about their own business, as we know. they will read this and take it more seriously than the members here do. and it will destabilize some of the financial system. they will see it as political interference, not with the contracting procedures, not with the budget, not with how many cards they have, but with how they decide on int

mr. bernanke, thank you for being here. two of my worst votes in 18 years, the iraq war. iraq. the second the repeal of glass-steagall. if i was not going to yield my time, i would ask you about reinstating glass-steagall. i think i will write you a letter with that question, sir. but at this time, because he's one of my dearest friends, i supported him for the republican nomination to be president of the united states, i yield my time to dr. ron paul. >> all right. we're going to take you away from capitol hill. seems like most of the important q and a, at least, barney frank, ron paul, has already happened. of course, if headlines continue we'll go right back. meantime, welcome back to "squawk on the street." you've been listening to the fed chairman testify in front of the house financial services committee. the dow is up some 69 points. interestingly up 78 points yesterday on bernanke. a few moments ago we were up 78 points again. the s&p on track for the second highest close in about ten weeks. led in this case by technology. the dow up 68 right now. s&p is up almost

mr. bernanke testified today before the senate committee. tomorrow he goes before the house financial service committees to give his report on the economy. c-span 3 will have live coverage at 10:00 a.m. eastern. the house today will consider five bills including authorization for a state department programs over the next year. members will gavel in at about -- in about 15 minutes and about 4:40 eastern. we'll have live coverage. and later in the week, bills to require the president to detail possible sequester cuts and defense department spending for next budget year. live house coverage here on c-span. this morning "washington journal" looked into u.s. manufacturing and whether made in the u.s.a. actually translates into jobs in the u.s. we'll show you as much of this as we can until the house gavels in. host: we're also joined by brian. he serves as their trade policy senior analyst. gentlemen, to both of you, thanks for coming on. the larger issue at stake is what's made in the u.s.a. how would you define that these days? guest: to answer

mr. chairman. chairman bernanke, nice to see you. as you know, as a result of dodd frank, the federal reserve has gained a great deal more authority to oversee u.s. banks, regulators we know all of us agree bipartisansy we have a responsibility to ensure that firm rules are in place that rules are being followed that bad actors are being punished. unfortunately, as we all know and read day after day since 2008 we have seen too many examples of wall street again breaking rules and laws and common standards of ethical behavior. i follow up on some issues that senator vitter talked about. and i just want to run through for the sake of repetition because it's so important to continue to recognize what these problems are. investor lawsuits, s.e.c. enforcement actions over mortgage backed securities, municipalities sold overpriced credit derivatives bankrupting some of them, five servicers found to have forged documents. the nation's largest bank in january halted all consumer debt collection lawsuits over concerns about poorly maintained

mr. bernanke said to you, he can't deal with the libor problem because it's run by the european banking commissionwer to you? >> he's not alone. they have known for nearly five years the libor setting that routinely occurs and afktss so many transactions lacks integrity. how they could know this for years and not disclose this generally and not really insist the financial institutions find a mechanism which would be readily available, i don't understand. >> make a big stink. >> absolutely. a and why won't you rely on variable rates that has integrity. they have remained unreliable all these months. >> this is just one of the topics i discussed with treasury secretary timothy geithner. that will be tomorrow. he's my special guest as part of the delivering alpha conference sponsored by cnbc and institutionals in tor. up next tonight, senator toomey said, why were regulators in radio silence when they knew darn well the world's largest banks were manipulating the benchmark libor rate? we'll try to find some answer whence we return. i've ever driven.is thee i bought the car because of its efficiency.

mr. bernanke? love to see us pass that and turn that into law and put the pressure back on congress to act as i just mentioned over longer periods of time, but you know, i don't know, we've had a lot of people, i don't know that i want to throw out a name. there are lots of people i think would focus on price stability, john taylor is a name that's mentioned often, but i just, i don't know that i want to weigh in. i'm not actually -- i think bernanke is under tremendous pressure because of us and i know today he's going to hear from both sides of the aisle, very different things. he's going to hear our side of the aisle. i'm sure talking about them being hyperactive, chuck schumer understands this morning i understand is going to be pressing him to do more for employment, and so the dual mandate does create a problem, so i don't know if i want to weigh in on who the person is, but certainly the next president will make that decision, and it's my thinking that actually the chairman doesn't want to g

mr. bernanke. dodd-frank has given congress more authority to oversee banks and we all have no authority to make sure firm rules are in place, they are followed and that actors are published. unfortunately, as we all know, since 2008 we've seen too many examples of wall street breaking rules, laws and common standards of ethical behavior. i follow up on some issues that senator visitor talked about. i want to run through for the sake of repetition to recognize what these are -- investment losses, sec enforcement actions, municipalities selling credit derivatives, five of the nation's servicers found to a forged documents, the nation's largest bank in january halted consumer debt collection lawsuits over concerns on poorly maintained and inaccurate paperwork, the largest bank has lost $5.8 billion on large, complex derivatives trades as it appears there in place in this reported losses. 16 banks are suspected of manipulating libor. in june, one publication reported on a criminal rigging trial so tha

mr. bernanke, you had a litany of facts at the end of last hour. still writing dodd/frank, who would hire? at the federal reserve notion they could fix this to the list, they can't. >> you haven't added mf global to the list. put that on the list as well. let me ask you, dan about investing second half of the year. what do you want to be exposed to in the environment? >> very carefully. i'm not sure there is much of a leg in the -- market for the rest of the year. in spite of how earnings go, you are going to have winners and losers. it is not going to be enough to get us out of the range. >> give me an answer here. come on. you are killing me. >> software and services. >> give me a high five. thank you so much. gentlemen, we appreciate it. we are back in a moment. >> senator banking committee head richard shelby talks to maria about the government's move to unravel the rate fixing scandal. along with his take on the approaching fiscal cliff. plus, normalizing relations. states emerging from the economic downturn having to make the tough choice of

mr. bernanke, a signal on monetary easing, emf lowering its global forecast.e catalyst they need. let's bring in john brynjolfsson. great to have you on the show. thanks for spending time with us. what's he likely to tell congress or take it a step further if he doesn't say what we think he might not tomorrow. take a look at jackson hole, put this whole thing in perspective in terms of retail economy. >> sure. the market seems to be pricing in an announcement by bernanke tomorrow and i simply don't expect that to happen. this format is not the kind of format where bernanke wants to announce a policy shift. he wants the backing of other fed governors, other people on the fomc as might occur on the august one. tomorrow i would expect him to speak in generalities, speak about a past policy, speak about the current economy but not an announcement about qe, up to 3,000, with some kind of mortgage purchase plan which i do expect to happen later in the year before the election. >> the data lately has been bad. no way to sugarcoat it. today's retail sales number what

mr. bernanke's tell for two days has been less than bullish you might say on some parts of the u.s.good data now stopping qe. that's it for "power lunch." thank you for watching. >> "street signs" begins right now. >> all right. it is nearly 2:00 p.m. and second away from the fed's beige book. this is why

mr. bernanke gave to clear indication.they got into the q and a it got clearer that he was worried and they believe some type of qe3 is coming, maybe not july but certainly in september. you can see the dollar shooting up and moving to the down side. financial stocks moved up and the lower dollar helped basic material stocks as well as industrials and most of the financials up, goldman had decent earnings report. day after day, one thing is very clear in the stock market, whether you've got pharmaceutical, telecome, utilities, it doesn't matter, if it has a yield, investors are interested in it. that's happening again today. >> here is a quote, his unfortunate remarks over the weekend show an utter lack of understanding and appreciation for the people who take a huge personal risk and work endless hours to start a business and create jobs. that scathing statement today from the national federation of independent business or nfib, about these comments from president obama. listen to this. >> i'm always struck by people who

mr. bernanke. if you look at what's moving here money still going into anything that has a yield. utilities are at new high. it can go either way now. >> yeah. really could. it is a great -- let me get with you, josh brown. what do you think this market is waiting for? sit bernanke that's most important to provide a catalyst here? do you think it is the second-quarter earnings which, of course, will pick up pretty good this week and into next? >> maria, it feels as though we are all operating under the shadow of the next shoe to drop. i can't tell you how many e-mails i have gotten from colleagues and clients the past week trying to figure out we all know something big coming. what is going to be the driver? sit going to be a slew of disappointing earnings? maybe bernanke's comments tomorrow don't deliver what the mark wants to hear. there's just so many things it feels like that can go wrong. and this is i really tough moment because most people who allocate capital for a living are trailing the s&p year to date. the reason for that is most of the s&p's year to date gain comes fr

mr. bernanke are ready to unveil it. >> asked repeatedly last week, bernanke tied to it the jobs numbers. i think you have to wait to see that first week -- they may have some of that data -- i think if we're sort of at 8.1%, back above 100,000, 125,000, 150,000. he's not going to want to have done q.e. 3, i think. if he's down in the 70,000s, that's going to make him want to do that. >> is there significance to the san francisco fed president, he says in his words, pretty significant downside risks, open-ended stimulus could be a good option for the fed? >> right. that's both a communications and a numbers thing. the fed to this point has said, we're going to do x hundred billion of a program. open-e is ation that says we are not going to let this thing fall. what they're trying to do is get into the mind -- say the traders around the table here and say, you know what, it's not finite. when you fake a decision to go short, there is going to be the fed on the other side of that trade. if you think about the failures of the ecb, that's been paramount, in my opinion. they have made everythi

mr. bernanke yesterday.ed the finger at congress and said, this is your problem, otherwise, we'll have a recession. don't expect me to get out of it. i want to ask you. you have the expiration of the tack cuts and a substantial automatic sequestered spending cut and the end of the payroll tax cut. a huge shock to the system. almost all forecasters whether on wall street or congressional budget office say if we don't stop this, we're going to go back into recession for sure. what are you going to do about it, and what's going on behind the scenes? i need to know the back story here, mr. geithner. that's what wall street is waiting for. >> well, again, let me start with what -- >> the back story. that's the one we want. >> let me -- you're right about the uncertainty. i agree. it's one of the significant risks out there, and it's a broader concern about whether washington are do things to help the country's economic problems. what congress should do is extend the tax cuts that currently exists for 98% of ameri

mr. bernanke, believe me. my point was that chinese television coverage and the size the critical importance of the economic relationship, and treated as secondary the interest of mr. chaen. the american media at give the impression that the main event was chen and the minor event was the relationship. host: a report came out today saying that the obama administration challenges china's on their imposition of duties on american-made automobiles. the u.s. is challenging china's in positions of anti-dumping and duties on a $3 billion in exports of american-produced automobiles. is this the kind of story seat -- cctv would cover? guest: i cannot say for sure. i am sure this will be on the agenda for consideration. when i can say is that the general policy is to take a story like this and present it from both sides. so long as there is a chinese position, to be voiced, an alternative position, both sides will be represented. i'll give you an example. there has been a lot of debate over the last several years about

mr. bernanke about auditing the fed. none of us are challenging -- i'm not challenging the transparency that you've given to us and seeing what is happening. moving forward to the future, not the past. the ranking members opening comments about playing politics, most of -- this is about trying to build a better america than we have now. auditing the fed to most of the american people seems like something that's responsible if the political games wouldn't be played. can you comment? i mean are you that opposed to auditing the fed? >> very much so. i think the term audit the fed is deceptive. the public thinks that auditing moons checking the books, looking at the financial statements, making sure you are not doing special deals. awful those thing -- all of those things are open. all of our books are audited by an outside private auditor. we have inspector general. if there's anything that congress wants to know about our financial operations, all they have to do is say so. the one thing which i consider to be absolutely c

mr. bernanke was in charge of aig. i had secretary of treasury paulson. this all happened under administration of president bush and president's working group was the group you reported was president bush's working group. mr. copps at the sec and mr. paulson. i stress that because there was a failure to be tough enough with these private sector people who were doing this but the notion that it was really all the problem of the president and the federal reserve of new york is very striking. i want to be very clear. you reported this to the president's working group on financial reform. who are the members of that group? who were they in 2008? give me names. >> chairman of the federal reserve. >> mr. bernanke. >> chairman of the f the tc. chairman of sec. >> secretary of the treasury? >> and the secretary of the treasury. >> so did. >> chairman. fdic i think at that stage occasionally but those are the core members. >> these are all bush appointees. i think this is problem not of regulators and but right sector and british banking association. if people want

mr. bernanke today. >> i'm riled up, but i'm riled up about the interest rate on excess reserves. >> only one option out of four. >> i can't believe he mentioned it again. i would like to understand the basis for cutting that rate further. it comes after the european central bank deposit rate. we've seen the impact of that on money market funds and distortions there. >> i'm slightly more excited that they might go down the lending route, achlgtla bank of england. >> let's hope congress on listening in. >>> india's latest cpi figures show inflation slowed slightly in june. we'll be in mumbai to find out reaction. >>> we'll get the latest bank of england minutes. any hint on the future of monetary policy in this country? instant analyses from a senior broker. >>> guest host for the second hour has just spoken to someone to become mitt romney's running mate. we'll get the latest from u.s. campaign trail. >>> buy whatever the fed buys, whatever that might be as we chief to fixed income strategy at wells fargo advisers at 11:15 cmt. >>> shares in credit suisse are trading higher after they boo

mr. bernanke held news conferences, teaching classis, which has been out of the yoke of practice. what have we learned from him? guest: it has made my job a lot busier. it has given up an opportunity to answer questions it previously did not get asked. it used to be the case that the only time anybody talked to a fed chairman was when he went before congress. congress often asks the questions that are pretty leading, politically, to try to get support for their opinion. democrats say we should raise taxes and the public can say we should not. you do not get a lot out of him. what they have done has exposed him to questions, opened him up to a new line of questioning. we have learned more about the thought process of the central bank then ever before. host: queens, new york. republican. good morning. caller: good morning. the taxes are supposed to generate $83 billion per year. the democrats are looking at a 10-year time frame of $830 billion. if we are looking that time frame and under the obama administration be borrowed $5 trillion, in 10 years, that would be 15 trillion dollars

mr. chairman. >> i wish bernanke would turn to him and say listen to yourself.authorizing agent, congress, that you want me to take care of you, that are you incapable of doing your job? i am sorry, sir, that is not in my mandate to do the work that congress is supposed to do. >> or just cut them off with pay. don't pay them. >> in other words don't make electronic transfers. >> he could do that. >> i will just stop all of the pay on all of your checks and we'll see how fast you come to the table. >> brian kelly, you're one of the biggest fed watchers in terms of our panel certainly. how are you trading given what the fed chairman had to say on the hill? >> i think steve hit it right on the head. how much more do you want the chairman to say about qe3 or accommodate a policy? i mean, two weeks ago he leaked it to hillsenrath and we've had several governors come out and say perhaps the mood is changing on the fed and then today he all but said as long as the economy continues to weaken we're going to be there, so i think that's what the market picked up on. and l

mr. bernanke, a bush appointee, was doing the wrong thing necessarily. but we took back that power. so this is probably a show because on the two serious efforts to curtail the fed's powers, my republican colleagues aren't there. but secondly, and as i said, i'm consistent, i don't think we should do any of these things. i think what we did with regard to openness makes sense. i'm not pretending to be tough when i'm not. the speaker pro tempore: the gentleman is recognized for an additional minute. mr. frank: but what it will do is destabilize. we have worries about expectations. there is a fear that we will be too inflationary or that we won't grow enough. people on wall street are not as sophisticated as some people think. they're not even sophisticated about their own business, as we know. they will read this and take it more seriously than the members here do. and it will destabilize some of the financial system. they will see it as political interference, not with the contracting procedures, not with the budget, not with how many cards they have, but with how they decide on int

mr. bernanke. you had bob on earlier, i'm a big fan of his. there's a couple of ways to look at quantitative easing. one is will it create a stabilization process or this huge positive. where we are at right now, stabilizing the patient counts for an awful lot. the fed will look at that. it will take a number of years to work through. this deleveraging process, still a few more to go, be our assessment. so i think the fed can do a lot more in stabilizing the patient. the fed can print money. that it can do. ultimately you need people. >> cut you off there. we're at the end of the program. we appreciate your thoughts. thanks for staking with us. >> "squawk box" is up next. here in europe we continue coverage of the treasury select committee and testimony from mervyn king. . >> great tv. stay with us. >> if you're in europe we're sticking around. let's go straight back out to that, big argument going on here about whether the new york fed told the bank of england that there was something wrong in the libor market and how wrong it was and why the

mr. bernanke heads over to the house side of the capitol, testifying before the financial services committee. that's live at 10 a.m. eastern on c-span3. and then thursday on c-span3, homeland security secretary janet napolitano. she's testifying at 10 a.m. eastern at a house judiciary committee oversight hearing. >> there has been a hostility to poverty. since the war on poverty, lyndon johnson looked at poverty issues and spent money on it and talked about his social service programs. lyndon johnson. i hate to say this, but richard nixon is the father of minority business development. and inside his minority business established the small business administration and used the term economic justice. richard nixon. economic justice. >> the former president of bennett college for women, julianne malveaux, regularly writes and comments on politics, education and african-american economic history. live sunday, august 59, at noon your questions for the author of surviving and thriving: 365 facts in black economic history. julianne malveaux in depth, august on c-span2's booktv. >> the woodrow wilso

mr. bernanke has been criticized for not doing more to raise a red flag about this issue when he knew about the libor rate being manipulated in 2008 and 2009. correct? guest: correct. it is easy to come in with a late hit and say you should have done this back then. when the world was falling apart in 2008, i think you could say he thought he had bigger fish to fry. host: let's take a few phone calls on the libor issue. pat is on the line from new jersey. caller: i will take my answer offline. on a day to day business, is it my credit cards or my margin accounts that might be affected? guest: for you personally, if you have a floating rate mortgage, there is a big chance it is tied to the libor rate. it remains to be seen the extent of the manipulation. sometimes the banks were manipulating up or down. it is not clear whether you are paying too much or too little on the floating-rate mortgage. it indirectly affect you because a lot of the floating-rate loans that companies use to fund their operations are also tied to libor. when you buy things, you buy from companies. they have to come up

mr. geithner and bernanke could be in for a couple more uncomfortable weeks. >> do we need more big banks? >> dick thinks we do and he explains why next, and we have a lot more heading your way here on "closing bell." >> is former new york attorney general elliott spitzer in trouble for bullying the former aig boss? and later, south dakota, south carolina, and virginia cracked the top five for business. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch. >>> big banks have been a target since the financial crisis. the next guest says they're critical to growing the economy. >> he saying the big banks serve to protect the dollar as the world reserve currency. he joins us now to make his case. you say big banks are critical to the u.s. economy and that we cannot grow if we have more regulation, right? >> absolutely. if you look at the history of the united stat

mr. bernanke was all under the administration of president bush and the working group to which it reported mr. paulson et cetera. i stress that because there was a failure to be tough and mouth with these private-sector people who were doing this, but the notion of his federal reserve is striking. i want to be clear, you reported this to the president's working group on financial reform. who are the members of that group? who were they in 2008? give me names. >> the chairman of the federal reserve cut the cftc, chairman of the fcc and the secretary of the treasury. four members of the group. >> i think at that stage may be occasionally, but those are the core members. >> so these are all bush appointees. i think this is a problem not of regulators, but the private sector and the british because this is a british association. the people start pointing fingers to regulators, all those people were presidential appointees confirmed by the senate. you are not a presidential appointee. >> no. >> so these are five or six people above you in the organizational chart to whom he reported what you fo

mr. bernanke will be testifying in front of financial services today. do not know if he will say anything different today than he did yesterday concerning the stimulus or the lack of it at this time. if you look back over the record of the past six months, steve, the congress has not done much in my opinion in terms of dealing with the jobs crisis. i think it is a crisis. it has not done too much about attempting to get a balance between what revenues we do need and what cuts we need to the budget to get us into balance. host: let me share with you what the associated press writes this morning. the fed chairman painted dark picture of where the economy is headed, but also he tells lawmakers that congress must go beyond year-end his issues and come up with a plan to shrink the budget deficit otherwise there could be a crisis and the one bright spot has been low interest rates. yet, we look of the u.s. debt clock and the numbers continue to rise. guest: i heard the gentleman before me, and we get along very well even though we are on opposite sides of the

mr. bernanke yesterday, his downward fast is because business is not deploying capital. people are not making investments. there is one simple reason. we are a nation of uncertainty. nobody knows what the boundaries are going to be or what policy is going to be on january 1. let me close with one example. january 1 the estate tax goes back from a $5 million unified credit in exemption and 35% rate to a $1 million unified credit and a 5% rate. you know what that's going to do? that's going to close thousands of small businesses eventually around america because when a small business owned by a family, a family farm in mississippi or georgia, when the owner of that farm dies and they go to pass their assets on to their heirs, after that $1 million deduction they owe a 55% tax on the rest. most of their value is in real estate and land which is depressed. they're forced to liquidate land at suppressed prices to pay an income death within nine months of death. that is wrong and should not happen. but as senator murray said, we allow every tax treatment we have today to go ba

mr. bernanke's remarks earlier this week, called the housing recovery "modest."e we are? >> yeah, it is. it's modest in the sense that it's been a really rough ride. we started, we start every peak it seems at about 2.25 million home sales, i mean starts, and if you go back to the january of '06, it was 2.3 million. it fell to 400,000. that's a wipeout of an industry, and so it's back, the housing starts are back. it's turned from a head wind into a tailwind for the economy, almost overnight, and it looks like a pretty solid recovery. we still have the pipeline to worry about. >> is there any seasonality issue we should be worried about? >> part of the seasonality issue is that we did things in seasons when it made it look worse. for example the housing tax credit came in the spring, and it put in seasonality, it's hard to get back out, but i think it's not having a big effect right now. >> you just got back from china. i want to talk a little bit about that. your take on the housing market there? >> well, they've got a lot of problems. first of all, their econom