international -- treasury for international monetary affairs. 1975 the president of the new york -- the chair of the new york fed in 1979. chairman of the u.s. fed until 1987. five presidents in a row, reagan, kennedy, l.b.j., nixon, carter, reagan. a 20-year hiatus of largely some teaching and finance work and then the return to the national spotlight in 2008 with his endorsement of barack obama and subsequently his role in the economic recovery across the last four years. there's a volcker rule but there's also for this moment in time a bradley rule, which is it is always a really good thing when you get to introduce paul volcker at a podium. here's paul volcker and steve clemons who is my colleague at atlantic media. >> thank you, david.

they say the investment manager's objective is to repay the new york fed senior loan including interest. and they went onto tell me that the change in objective reflects a strategic decision by the new york fed to explore possible sales of some of the assets in the portfolio in light of improving market conditions and the success of maiden lane ii sales. yet another vehicle in which the fed successfully sold out all the securities in it. some of those or many of those less complex than these but they did use a reverse inquiry method. dealers stepped up and one was ultimately chosen to buy the assets that will fore sale at the particular time. this doesn't mean that the new york fed is going to move ahead with sales right away, but it certainly indicates a significant change in their posture in terms of sales from this portfolio and the likelihood of course that in fact there will be sales of many of the securities you're looking at right there. the market seems to be much more warm -- or warming to the idea of buying them. while it's $17.8 billion in terms of where it's at least stated

and those nasty guys in the new york fed didn't try to stop you from doing anything, is that right? sty guys at the new york fed. >> another discussion on that. frank sorrentino, great. great to have you on the show. >>> stay with us. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. ens. answers. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. >>> shares of ebay shot up 6% today, it was the third most active stock on the nasdaq traded more than six times its usual volume. it was one of the nasdaq gainers today and because jim cramer's kids used paypal, jimmy thinks there's upside in ebay. a

bit the news out yesterday from the fed i'd like to bring your attention to some central bank news you may actually be more receptive to because last month the federal reserve bank of new york and by did some of its critics including our guest to as he puts it unburdened themselves of their criticisms now the text of his remarks were published in the march twenty third issue of grants and it is definitely worth reading for those of you who are wise enough to subscribe now there are a number of points that mr grant makes in his remarks that we have repeated on this show ad nauseum ourselves accountability for bank executives a functioning price mechanism sound money you know capitalism but the editor of grant's interest rate observer also makes another very interesting proposal with respect to what he would do if by some act of market revenge he were made chairman of the monetary priesthood he would as he puts it commission staff and ceremonially open the fed's first office of unintended consequences now this would be his resists dong because economics after all is a social science and as such is beholden to the unintended consequences brought about by the actions of the obs

look you can document these booms and busts and predict them unlike what the why is guys that the new york fed may believe we're going to keep you want we're going to go to a quick break we will have more with you in a few minutes including how the fed could have a negative or create a negative kind of carry trade the scenario that you've come up with we'll have more with bob inglis contributing editor for in zero hedge and economic policy journal dot com. also still ahead our whistle blowing enthusiasm goes bust as the f.c.c. inadvertently revealed the identity of one of its own resources will give you our three cents but first your closing market numbers. will be the true science technology innovation all the latest developments from around russia we've got the future covered. she could leverage surely to mccurry was to build the world's most sophisticated robot which fortunately doesn't give a darn about anything tim's mission to teach music creation why it should care about humans and world this is why you should care only on the dog. all right welcome back we're talking to bob inglis cont

look you can document these booms and busts and predict them unlike what the whys guys that the new york fed may believe we're going to keep you want we're going to go to a quick break we will have more with you in a few minutes including how the fed could have a negative or create a negative kind of carry trade this scenario that you've come up with we'll have more with bob inglis contributing editor for zero hedge and economic policy journal dot com. also still ahead our whistle blowing enthusiasm goes bust as the f.c.c. inadvertently revealed the identity of one of its own resources we'll give you our three cents but first your closing market average. you just put a picture of me when i was like nine years old i'm going to tell the truth. i'm a confession i am a total get over friends that i love driving hip hop music and. he was kind of the jester day. i'm very proud of the world without you she has played. oh. oh. oh. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else you hear see some other part of it and realize everythi

look you can document these booms and busts and predict them unlike what the why is guys that the new york fed may believe we're going to keep you want we're going to go to a quick break we will have more with you in a few minutes including how the fed could have a negative or create a negative kind of carry trade the scenario that you've come up with we'll have more with bob inglis contributing editor for zero hedge and economic policy journal dot com. also still ahead our whistle blowing enthusiasm goes bust as the f.c.c. inadvertently revealed the identity of one of its own source is will give you our three cents but first your closing market numbers. are sure is that so much. i mean if you would like to have a real. hard to deny something or in this happening in french politics with president nicolas sarkozy fighting for his political life what is the future. sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you saw you don't. park is a big issue. all right welcome back

the new york fed is turning to high school students to perhaps some some of those issues. york federal reserve hosting 25 teams competing in the challenge. and we are lucky enough to have some of those semifinalists with us today. so, we're going to go through the list right here. i'm going to start right here. victor victoria, you're from bloomfield hills, michigan. you're from fort pierce, florida. and zack with george w. hue let high school in hul et new york. and devin from connecticut. congratulations, guys. >> thank you. >> i'm going to go to each one of you and tell me what you came up with as the ultimate solution to some of the challenges that are very sizable and facing europe right now. victoria? >> a group at my school is ireland and high on employment problems. public solutions -- basically just promoting education in their country and involving more of the youth and getting the youth involved as a growing generation coming. ireland in the problem it's been very supportive. we'll see what happens. >> terrific. ireland. okay. >> my school chose greece to focus o

. >> new york fed president gave a speech and he said a couple things. he also said there would be consequences to another round of qe and i found that interesting coming from dudley, who has been associated with the quantitative easing position. do you think the fed is going to quit new stimulus? >> they not only have to quit new stimulus, they have to make it overt that they're going to have a stable dollar. otherwise people are going to believe -- get one bad report and they're going to go back to their bad habits. unfortunately, ben bernanke, regardless what dudley says, is a man who believes you go on helicopters and shovel out the money, pieces of paper, and somehow that gets the economy going. the fed is one of the critical reasons why, and you appreciate this, this recovery has been so punk. weak dollar means weak recovery. we should have learned that from the 1970s. one of the things a new president has to do is get a fed chairman to realize the prime job is a stable dollar. >> oil prices, retail gas prices have all sort of leveled off and come

meanwhile the new york fed president going dudley also has reiterated he supports keeping interest rates near zero until late two thousand and fourteen now all of this as us thinkin back to the future about time travel and has us wondering if the fed's artificial manipulation of interest rates distorts this space time continuum and therefore threatens economic destruction of cosmic proportions now we have mike norman here to talk about it he's probably going to severe with what i have to say but that's why we like him so much he's chief economist at john thomas financial and he joins us now to talk about all things monetary issue related first of all mike thanks so much for being on the show again it's nice to see you. i love being on the show lauren and you know i love talking to you and you are so smart how did you get some more i mean i'm going like a log i've been reading your blogs my things i said i don't read your blog i don't read your blog ok on that note i have a feeling that though i do read your blo

you can look at stock prices, the new york fed reaction. did the cftc take any action to enhance its surveillance or to encourage others to enhance its surveillance prior to the filing of bankruptcy? >> in the week leading up to the bankruptcy filing, we had people on the ground at mf global, our staff in chicago was there on the ground. but the numbers and what we look at are whether or not the firm is capitalized and whether they have the money to meet their segregated obligations to their customers. and the data that was provided to us from mf global showed that they were in compliance up until the very last few days. >> when you say you had cftc personnel on the ground, was that an increase in personnel on the ground? did you detect there might be something wrong and reacted or not? >> we actually had people at mf global's offices in chicago and new york and that's not typical. >> and when did that occur? the increase -- >> the week prior. >> the week prior? >> uh-huh. >> when over 99% of mf global's accounts were commodity accounts, di

he'd brokered the bear deal, and he was a member of a very exclusive club. >> the board of the new york fedis made up of many of the titans of finance. that's really, in a way, the ultimate club on wall street. they determine who the president of the new york fed is. it's really the ultimate insider's institution. >> dick fuld is on the board. jamie dimon is on the board. tim geithner is a quasi-wall street ceo. you know, he has oversight over them, in some respects. he works with them in other respects. >> narrator: now on phone calls with hank paulson and ben bernanke, geithner argued they might have to follow the bailout playbook. >> geithner tells paulson, "i believe we are going to have to put government money in. and you'll not have credibility if you say we're not going to do it and we are." so we know there is that tension. >> so hank paulson's sitting there. and it turns out that we're having the largest crisis wall street has seen since the great depression. and he's at the center of it. and at this point the question becomes, what does hank paulson do? >> narrator: paulson was un

fed vice chair yellen and new york president said the fed would do more if the economy worsens. but i didn't hear qe-3 being imminent. the last hope for the qe-3 bulls is tomorrow. fed chairman ben bernanke speaks at 1:00 p.m. his speech will be about the financial crisis. he will take some q & a. a fed exit strategy in the next six to nine months, tyler. >> steve, is the fact you heard from those two fed governors and they both said basically that the fed stands ready to do more if needed. is that because that reflects the overall view of the fed, or because those two particular fed governors are in the camp that says if we need to do more, we will do more as opposed to others who would be against it? >> well, i think there just aren't any two february members, tyler. one is the vice chair. janet yellen is the vice chair of the federal reserve. and dudley is not only new york fed president, he's the vice chair of the fomc. i would think they're carrying a bit more weight probably speaking for the balance of the committee. and i think that's reflecting where the center of the co

that's what the new york fed uses. balance sheet begins to shrink two quarters before the rate hikes begin. that's exactly what the fed has said would be the policy. hasn't given a time period bud said in general that's what we're going to do. mortgage back security sales begin two quarters after. the balance sheet will normalize by early 2017. it will fall to 25 billi under these assumptions from what is now a $1.5 trillion reserve balances. pron edge ekted to be all treasuries by mid 2019. now about 2011 the fed held 18% of its marketable treasury securities at the end of 2011 but when it came to longer-term holdings because of operation twist it was 25% to 35% of total outstanding. in total, the fed purchased $773 billion the treasury securities in 2011. carl not a bad year's worth of work. >> yeah. >> how much you think about the actual operations that were done. >> thank you very much, steve. steve liesman. squawk on the beat this morning. yahoo! is cutting about 2,000 jobs today or tomorrow. and some say this is

. >> kudos to the new york fed. they have an excellent chart and graphic. i'm shocked by how good it is. shows the balances coming down, which is obviously good news for the taxpayer, david. when we look inside these things without getting too specific, a lot of commercial real estate cdos, asset backed securities, is this -- if we get a strong bid into these maiden lane iii assets, could we view that as another sign that the collective market is saying real estate -- commercial real estate, whatever, is continuing to improve? >> yes, i think you can to a certain extent. let's not forget originally they took on $60 billion face value of assets or more worth about half of that. that's come down as you point out because of maturities and interest payments on the portfolio. no doubt the instrument in the instrument themselves goes back to what is underlying them and the chase for yield we see so often in a low rate involvement. >> that's why you want this low volatility risk environment to continue for those sales. >> amazing story here because if i'd asked you

the new york fed estimateding about 15% of americans or 37 million people have outstanding student loansabout 2/3 of the debt is held by people under the age of 30. >>> and google will reportedly launch a new service letting consumers store music, photos, and other content on line. the service is called geico drive. >>> and it's going to let people get information back to you any device. they'll charge a larger fee for bigger versions. back to you. >> thank you. >>> and speaking of google check out the home page. a little at today. a zipper runs down the page and opens when you search for something. it's google's ode to gillian sunback's 1 2nd birthday. mr. sunback is the father of the modern day zipper. we thank him. >> yes. and the google doodle this morning. >>> there's a study that says saying the word of an item you're looking for out loud may help you find an item faster. lottery jackpot. researchers say that when participants were given simple tasks like fighting grocery store items or misplaced keys, you can find. >> keys? talking to yourself. >> i'm going to start saying money.

i ask that because the chairman of the new york fed rekrntly said that if work force participation todaye what it was when obama was inaugurated, the unemployment rate would be well over 10%. we're well -- 50 months have passed. we're not nearly back to the prerecession employment level. this is the longest string of consecutive months of 8% or more since the depression. 5.5 million fewer people are working today. the president boasted recently, he said, we, in three months, have created 600,000 job. and the recovery from the reagan volcker recession in the early 80s, in one month, 700,000 jobs were created. >> every recent recovery is worse than the one before. >> this is not especially worse than the 2001 recession recovery. in the aggregate, too. what is different between the obama economy and the bush ii economy. unprecedented reductions in government employment. the private job creation record under obama is vastly better than it was under bush ii. private employment is almost back to where it was when obama took office. >> response to that? >> i think we have three structural probl

the new york fed president, now treasury secretary, gigter in, and chairman bernanke were incredibly courageous in innovative in crafting a set of firewalls against an absolute catastrophe. another f another institution had gone down, all the rest of the banks would have gone down because everybody would have said my money isn't safe, gave it to me now. you're back to the jimmy stewart film. >> rose: but that's what happened to bear stearns at the beginning. >> they were the starting ones. >> rose: do you think the administration and the financial community has explained that well enough to the public? so that the public thinks look, they rescued the banks but will they rescue he? >> the interest thing... no, it hasn't been explained well and there's been a demonization of the banks for some good reasons and now not so good reasons. banks are essential to raising capital in fact, they're essential to capitalism. you can't take capital out of capitalism. they help you fund through equity and debt. >> rose: they lend it to banks so banks can create companies and grow and hire people an

people may remember a number of years ago when the new york fed interse interceded by buying into andrparties in full. the fed confirming what was a change in language on its

al qaeda coming soon again in new york. the fedscific or credible threat to new york but they say they take all threats seriously. mitt romney now officially halfway to becoming the republic presidential nominee. the tennessee g.o.p. finalized primary results from last month that bring mitt romney's total number of delegates to half he needs to lock up the nomination. he has double the santorum. and three states are up for grabs tomorrow. -- three areas. wisconsin, maryland and d.c. possible for romney to sweep all three adding to his lead. rick san form says he will stay in the race no matter what happens in tomorrow's primaries. party leaders are putting on the pressure to wrap things up already. mighty big deal tomorrow, steve. >> it is a big dealment and to those republicans who want to see this nomination process winding down or over rick santorum wants to remind them about 2008. one reminder to our audience, this sound bite is a little bit hard to hear so please listen closely. >> what about a week or two weeks before the demo

you can look at stock prices, the new york fed reaction.did the cftc take any action to enhance its surveillance prior to the filing of a bankruptcy? >> in the week leading up to the bankruptcy filing, we had people on the ground atm, out mf globa. the numbers and what we look at are whether or not the firm is capitalized

new york fed president william dudley is scheduled to speak later today on regional and national economictern time. and the week will culminate with ben bernanke and his take on lessons learned from the crisis. he'll be speaking at the rethinking finance conference at the princeton club in new york. we'll have live updates throughout the morning with steve liesman and plus bernanke's speech live at 1:00 p.m. eastern time. joining us now is paul dales at capital economics. and still with us matthew bishop. paul, let's start with you. when it comes to fed speak, every listening very, very closely to any indications that we may see more qe-3 on the table. as far as we know, of course they're keeping it open as an option, but doesn't look like it's likely at this point. what are your thoughts? >> i completely agree with that actually. you also need to think about who to listen to on the fed. so in recent days we've had plows plosser and la company take have been bullish, but they don't have voting rights. so i'd put more weight on yellen and bernanke. and they are cautious, but not desperate

student debt is now larger than auto loan debt and credit card debt according to economists and the new york fedthe worst labor market in 30 years and congress canç t to stop interest rate spike but as of now republican members of congress don't appear to be onboard. we know this week louisiana governor bobby jindal received a petition from amnesty international with tens of thousands of signatures on behalf of the two incarcerated men founded a black panther chapter in the inif a kniss angola, louisiana prison april 17th, the two held in solitary confinement 40 years each in a 6x9 xvx12 cell. the men maintained they were framed as punishment for political activism. fellow inmate king spent 29 years in solitary before released when his conviction was overturned. the number of prisoners held in solitary confine held in solita confinement is hard to come by, because two years ago the bureau of prisons found that 89 people were held in solitary confinements in state prisons. >>> and now we know that rubber stamps are not just given by city shareholders. there was a binding no to the pay package fo

little bit at some of those high risks it and at the commercial banks, a hundred regulators of the new york fedank, et cetera. a lot of things the government did incorrectly that led to this. the message that government has to do more is wrong. >> that has become the consensus thing that the government has to do something. how do we beat that back and do you see any republican candidates articulate it well? >> we beat it back by showing it doesn't work, not only this time but in the 70s it didn't work. they it h all these interventions and inflation rose. and recently. we had slow recovery. you have a philosophy, romney getting close to the ryan budget plan, which is to get spending back to where it was before the crisis in a nice way, it's not destructive to the economy, it's quite positive, reducing the role of intervention in the economy. on the other hand you have a very interventionist approach, the president's budget. so there's a contrast. that's the good thing about an election year. >> how do you explain the financial crisis in that some people argue there wasn't enough regulatio regul

you can look at stock prices, the new york fed reaction. did the cftc take action to enhance its surveillance or encourage others to enhance its surveillance prior to the filing of bankruptcy? >> in the week leading up to the filing, we had people on the ground at mf global. our staff of chicago was on the ground. the numbers and what the book at are better not the firm is capitalized or whether they have the money to meet their segregated obligations to their customers. the day that that was provided to us from mf global showed they were in compliance up until the very last few days. >> when you say you had people on the ground, was that any increase? did you detect there might be something wrong and react it or not? >> we had people at mf global's offices in chicago and new york, and that is not typical. >> when did that occur? >> a week prior. >> went over 99% of mf global's accountants were commodity did cftc havecou the opportunity to take over at the bank dropsy? why was it allowed to file chapter 11? both of those instances seem to h

report this is week they will be meeting with the new york fed govern to talk about the stress tests. mary thompson will be all over that story. >> and you layer in the whole notion about europe and spain specifically, banks getting downgrades. these are some of the banks that have been most correlated to the european banking sector. we could see weakness there because of the weakness expected at the european banks this morning, a couple showing really significant losses there. >> there's the opening bell. the s&p 500 at the big board today, senior vp of human resources. and global payments listing on the nyse. over at the nasdaq, the co-founder and ceo of honest tea. jonathan soo sicking off the great recycle which will aim to boost recycling rates in this country which are pretty low. >> there is apparently a giant recycling bin in times square to mark the occasion where people can toss in bottles. >> the hard part is making it cost efficient. it's so labor intensive. >> think of all the new york city apartment buildings. that's amazing. in terms of the pre-market moves, watching sh