they did it to paul volcker, did it to alan greenspan, '87, for better or for worse, from our perspective for worse, they challenged ben bernanke and his team a few years ago. i've got every bit of confidence she's going to realize that being chairman is, frankly, very different set of responsibilities than being a governor vice chairman where most of us get to chatter from the cheap seats, she's got to make the tough decisions. >> and yet, you've been concerned about qe and what the fed's doing. you've been concerned for some time. a lot of people think she is even more dovish than bernanke is. where does that get us? >> right. so it's easy to think on a hawkish dovish spectrum. and there's no question she believes in the efficacy of the fed's tools even more so than chairman bernanke. i don't think she's more dovish than ben. i think the biggest difference is in some sense that she really does believe very much in the models and in a model centric view of the economy. >> what does that mean? >> what it means is, when i look

it's playing out the clock and gary gensler is working very hard to make sure that the volcker rule gets written before he leaves whether that happens or not still remains to be seen indications are that once timothy takes over the sea f.t.c. we're going to see a very different c f t c and we're going to see a very different level of aggressiveness relative to the big banks so i think if it doesn't achieve his objectives before he his term is up and then it's put them aside hands we might see something that reformers are going to be very happy with now there's speculation that shelton might run for political office and i realize that you have to kind of remain tight lipped but do you have any indication about what he might be doing after leaving office he's given the mainstream media no indication so far well i have to respect it when i'm told things off the record i think personally think burchill would be a fantastic politician i don't know that he has the stomach for it in my mind would be like you know elizabeth warren democrats and i think i see a new trend coming in the united stat

and in terms of the volcker rule did you see that you know it's designed again to keep banks from not gambling with customer deposits do you think that the final form will be anything like what congress intended it to be well we can hope in the interview that we said there's a d.c. quadrant kill place and so one that one points of the d.c. quater kill is when the big banks want to change the rules they do so through one of the points being the wall making process chilton again served and for in this they want the protective regulations in place so that we don't see a tremendous market crash and then another bailout what's unusual about this change of leadership right now is the volcker rule still hasn't been written. it's playing out the clock and gary gensler is working very hard to make sure that the volcker rule gets written before he leaves whether that happens or not still remains to be seen indications are that once timothy takes over the c. f.t.c. we're going to see a very different c f t c and we're going to see a very different level of aggressiveness relative to the big bank

and terms of the volcker rule did you see that you know it's designed again to keep banks from not gambling with customer deposits do you think that the final form will be anything like what congress intended it to be well we can hope in the interview that we said there's a d.c. quadrant kill place and so one of the one points of the d.c. quadric kill is when the big banks want to change the rules they do so through one of the points being the wall making process chilton going serve and for in this they want the protective regulations in place so that we don't see a tremendous market crash and then another bailout what's unusual about this change of leadership right now is the volcker rule still hasn't been written it's playing out the clock and gary gensler is working very hard to make sure that the volcker rule gets written before he leaves whether that happens or not still remains to be seen indications are that once timothy takes over the see have to see we're going to see a very different see f.t.c. and we're going to see a very different level of aggressiveness relative to the big ban

i was writing a piece about this transition from paul volcker, i go all the way back to paul volcker,ntral banker of our time. he operated with discipline and rules, discipline and rules, okay? now i want to skip over to janet yellen, leave bernanke out for a second. does she have discipline? does she have rules? is it all going to be ad hoc? do we have any idea what she's going to be except maybe be dovish? >> i haven't seen any discipline or rules. but she's got equations and optimal control theory and too many textbooking. i think we need another volcker, somebody with spine who can turn off the money-printing press before a bad thing happens. that's partly what we're seeing just recently in the markets. we're going from gentle ben to the yellen fed and it's going to get even more quantitative easing. >> that's interesting. don, you think there's going to be more q.e. or less q.e.? i'm going to say in the next three to six months, just use that time. >> i think there's not going to be more. there's not going to increase the monthly purchases. but obviously if bernanke were still in

rule on banks. >> keep the changes that are at the heart of the volcker rule before the volcker rule came along. because we thought that was the right thing for our particular business model. i don't want to speak for others, but for us, using less about shareholders capital, in fact, almost none of our shareholders capital to support morgan stanley's performance, which is the essence of the volcker rule. don't engage in activities with the shareholders capital. i had lunch with paul volcker and i don't think even he would recognize the rule. jack lew is right, we need to get this thing finished. we need to get the rules written and we need institutions to understand exactly what they can and cannot be doing. but with morgan stanley, i think most of the large institutions have anticipated the state and are already complying with that. >> what do you think a successful bank will look like once the bank regulators are finished? >> there is no single business model. a lot of people look at the industry and look at it as we're ordering the same thing. we're not. there are custody banks,

ronald reagan gave him the ground to stand by, by volcker used to look at commodities an gold. stay we me. we hit and stayed over 16,000 on the dow. that's next up. me. we hit and stayed over 16,000 on the dow. that's next up. i me. we hit and stayed over 16,000 on the dow. that's next up. th me. we hit and stayed over 16,000 on the dow. that's next up. th >>> welcome back to the "kudlow report". in this half hour, democrats pulled the trigger on the nuclear option. they voted to ed td to end the filibuster in favor of a 51 vote majority for judicial and executive appointsme poinpointm including the supreme court. the question is will this poison the waters for years to come. like senator obama warned in 2005. but now singing a different tune. the dow closed above the 16,000 mark for the first time ever, so let's toss it over to bob pi zasa pi zani for all the details. >> maybe it was for the wrong rope reasons. it stack off after 10:00 a.m. and the november philly fed numbers came in well below expectations. traders bought into the old idea that this made it less likely the fe

. >>> it seems a long-awaited and long delayed volcker rule has hit another roadblock meaning the bigks remain in limbo. mary thompson has been looking into it. what are the details? >> a lot of people were hoping that this key part of dodd/frank would be finished by year end, but the commissioner chilton says he can't support it in its current form. >> if you have a hedge that is supposed to just mitigate your risk but you're making boatloads of money on it, well, maybe that's not a hedge. if you have a pattern of making lots of loan on your hedge, then maybe we need to call in the enforcement people to look at it. >> now, chilton expects banks to make a profit, but he believes when the market changes, so, too, should a hedge. he says if a hedge is recalibrated or changed, it's likely a bet, something the volcker rule wants to prevent them from taking but not as it's presently written. banks shut down and traded for their own accounts. so what is an acceptable and unacceptable hedge? that continues to be something they continue to grapple, meaning a final rule may not happen until we

you remember the appointments he made in the transition of volcker, a guy who collaborated with reagan -- >> rose: do you know the volcker melt has not been passed in terms of regulation. >> he put in coal ver, a larry summers. he kept bob gates, the republican conservative -- >> rose: who was an admirer of the president. >> yes. >> rose: and he had clinton as secretary of state. there was nothing radical at all about his appointments. so it seemed to be as if he was trying to send a signal that he's going to be a kind of clipp tonian left of center politician and i think he deviated from that in the speech he made, i'm going to change america in health care, energy, and education. health care is a sixth of the economy, education is the future, and energy, if you control the production and the pricing as you would with cap and trade, is the sip use -- >> rose: but same we are on the verge of becoming energy independent. we on theerg o the verge of beit energy exporter. >> yes, despite his administration. the reason we have had the explosion is because of the technological advances, fra

the concern that was raised by senator berkeley, which is the danger of the implementation of the volcker rule could be too restrictive and increase the cost to corporate bond issuers. i think the decision by congress to exempt u.s. treasuries was an implicit acknowledgement when you ban propriety trading you make them less liquid and more expensive for issuers. i'm told the next rule might exempt other sovereign issuers, which is another implicit acknowledgement of this problem. this is a problem for corporate issuers in america, and i'm very concerned that we not unnecessarily raise their cost of borrowing. the last point i would make, i'm deeply concerned about the consolidation that's happening in small banks, the lack of new small banks. as you know, we used to routinely launch sometimes hundreds of new community banks, i'm told by fdic there is not a single new community bank launched since 2010. regulatory compliance for institutions with no systemic risk to the economy is way overboard. i hope you will make an effort to diminish that burden. >> i promise to do so, senator. >> than

kicking off your boom bust headlines the volcker rule it faces new hurdles today as top regulators argue that the law is too soft on banks now officials from the security and exchange commission along with you see have to see are threatening to further delay its implementation the ruling was slated to go into effect at the end of this year now the newly installed democratic commissioner of the f.c.c. chorused. mine has raised a number of concerns about the current version of the law signed believes the rules allows banks to sidestep its intended purpose now these new objections are creating a frantic scramble by regulators to complete the rule which is intended to curb risk taking and ban banks term trading on their own gains. now elsewhere when the us was threatening to default on its debts last month big banks wasted no time coming up with a plan b. now it was reported by reuters that quote major u.s. banks set up war rooms spend many millions of dollars on contingency planning and in some cases even prepared to underwrite federal government benefits talk about cutting their losses and

kicking off your boom bust headlines the volcker rule it faces new hurdles today as top regulators argue that the law is too soft on banks now officials from the security and exchange commission along with you see have to see are threatening to further delay its implementation the ruling was slated. to go into effect at the end of this year now the newly installed democratic commissioner of the s.c.c. chorus john has raised a number of concerns about the current version of the law stein believes the rules allows banks to sidestep its intended purpose now these new objections are creating a frantic scramble by regulators to complete the rule which is intended to curb risk taking and ban banks from trading on their own games. now elsewhere when the us was threatening to default on its debts last month big banks wasted no time coming up with a plan b. now it was reported by reuters that quote major u.s. banks set up war rooms spend many millions of dollars on contingency planning and in some cases even prepared to underwrite federal government benefits talk about cutting their losses and ru

kicking off your boom bust headlines the volcker rule it faces new hurdles today as top regulators argue that the law is too soft on banks now officials from the security and exchange commission along with you see have t.c. are threatening to further delay its implementation the ruling was slated to go into effect at the end of this year now the newly installed democratic commissioner of the s.c.c. corus john has raised a number of concerns about the current version of the law all star believes the rules allows banks to sidestep its intended purpose now these new objections are creating a frantic scramble by regulators to complete the rule which is intended to curb risk taking and ban banks from trading on their own games now elsewhere when the u.s. was threatening to default on its debt last month big banks wasted no time coming up with a plan b. now it was reported by reuters that quote major u.s. banks set up war rooms spend many millions of dollars on contingency planning and in some cases even prepared to underwrite federal government benefits talk about cutting their losses and run

kicking off your boom bust headlines the volcker rule it faces new hurdles today as top regulators argue that the law is too soft on banks now officials from the security and exchange commission along with you see have to see are threatening to further delay its implementation the ruling was slated to go into effect at the end of this year now the newly installed democratic commissioner of the s.e.c. chorus john has raised a number of concerns about the current version of the wall start and believes the rules allows banks to sidestep its intended purpose now these new objections are creating a frantic scramble by regulators to complete the rule which is intended to curb risk taking and ban banks from trading on their own games. now elsewhere when the u.s. was threatening to default on its debts last month big banks wasted no time coming up with a plan b. now it was reported by reuters that quote major u.s. banks set up war rooms spend many millions of dollars on contingency planning and in some cases even prepared to underwrite federal government benefits talk about cutting your losses a

kicking off your boom bust headlines the volcker rule it faces new hurdles today as top regulators argue that the law is too soft on banks now officials from the security and exchange commission along with you see have to see are threatening to further delay its implementation the ruling was slated to go into effect at the end of this year now the newly installed democratic commissioner of the f.c.c. chorus john has raised a number of concerns about the current version of the wall strong believes the rules allows banks to sidestep its intended purpose now these new objections are creating a frantic scramble by regulators to complete the rule which is intended to curb risk taking and ban banks from trading on their own games. now elsewhere when the u.s. was threatening to default on its debts last month big banks wasted no time coming up with a plan b. now it was reported by reuters that quote major u.s. banks set up war rooms spend many millions of dollars on contingency planning and in some cases even prepared to underwrite federal government benefits talk about cutting your losses and

a lot of talk what will you do about the volcker rule. too big to fail. a jobs program, something that this country does not have and is still lacking and as sam indicated the most critical element in people's minds was barely mentioned. >> very quickly, sam keeps nudging me. tell me the story of hanukkah very quickly for our fans. >> a little dreidle talk. >> i won't humiliate myself. >> they need 20 beers to get through the day. one beer left made it through the whole day. >> sam. be nice to sam. >> it's still hanukkah, guys. come on. >> looking forward to meet your parents. >> more jews on "morning joe." >> up next the big business of black friday. andrew ross sorkin joins us. >> ask and you shall receive. >> i have some questions about him about some major retailers coming up. "morning joe" continues. [ imitating engine revving ] that's mine. ♪ that's mine. ♪ that's mine. ♪ come on, kyle. ♪ [ horn honks ] that's mine...kyle. [ male announcer ] revenge is best served with 272 horses. now get the best offers of the season. current lessees with an expiri

i remember in the '70s and '80s, volcker would come in and change the game.mething different? >> but volcker-esque. >> exactly. >> she's been the one orchestrating this whole open communication. >> agreed. >> she wants to get elected, nominated, i mean. there will be a surprise. what is the surprise in 2014? will it be saying i can't trust somebody else negotiating my country security? will it be some other political dynamic? will it be terrorism? there's no margin of safety necessarily in the broad market but stock specific -- >> but is the fed doing something that covers up a lot of problems with companies at this point? carl icahn said this week or last week when he looks around, this is the liquidity driven market and all of that is covering up for poor management. >> well, you know, there are 90% of the companies in the united states, the ceo comes to work every day trying to figure out how to increase the intrinsic value. driving profits and helping the stock price. yeah, there's always 5% or 10% of those that are just laid back. and we have several of

to combat double digit inflation, the chairman of the federal reserve paul volcker briefly raised interest to the country's plunge into recession but of course its subsequent recovery. the historical average in the u.s. has been around 6%. thanks for being part of my program this week. i'll see you next week. stay tuned for "reliable sources." >>> for a week

volcker got it down. gold was pretty even keeled during that time. i'm not against growth.. but i'm saying, doug, if there was a shock to the market right now it would come in the form of faster growth. that's all i'm saying in the short run. your take? >> i agree with you what you said before. first of all, qe is not a sustainable policy, like you said. cutting corporate income taxes, some pro-growth economic policies. we need to take the time to grow the economy with good policies. qe is not sustainable. but i kind of don't agree with you. i think you need to look at what is going on in the emerging markets. there is growth 5, 6, 7% and that's where u.s. corporate profits are getting their growth. so it's not too far away. and i think the fed risks being behind the curve if they continue this qe for too long. it's okay right now but they are really testing the limits of qe and they are in a dangerous time because i think high growth is right around the corner. i think it's a global expansion. >> and i have to add corporate profits to the mix. without corporate profits we

and cftc is working hand in hand with other agencies to protect consumers by implementing the volcker rule, which secretary lew has called on regulators to complete by the end of the year. they've successfully imposed nearly $1.8 billion in penalties against financial firms that engaged in rate-fixing schemes. they worked to make sure that an irresponsible few can't hurt consumers by illegally manipulating or rigging energy markets for their own gain. and they've done it all while a swarm of special interest lobbyists have done everything possible to thwart their every move. gary has never once let his team forget what this is all about, the american people, folks we are so privileged to serve. so before i introduce his successor, please join me in thanking gary for his outstanding service. [applause] gary, as always a team player, says also a whole bunch of cftc people are here. we want to congratulate you. my working assumption is a bunch of them will be here even after tim goes and does whatever he does next, because the next person who is going to be taking over is going to need a

the volcker rule. all of these things have contributed to hurting visibility on revenues and earnings doesn't exist. if you do have visibility, it's down. >> that's a good point. todd, you're on the other side of that trade. you say it is time to buy jpmorgan. >> i like jpmorgan a lot. in fact, as i heard the earlier comments from the standpoint in terms-h terms of the significant overhang from a legal standpoint, don't know if i would go that far. i think it's very clear, as you look at reactions among jpmorgan's peers today, it's very clear investors are saying, hey, look, it's a tough pill to swallow from an investor standpoint. from a management standpoint. but clearly we're in the later innings here from a legal standpoint. without a doubt, there are mo more -- there's more legal and liabilities out there, but this is a pretty sweeping settlement we've seen today. it's going to accompany -- reflecting a company that has the earnings power to support something like this. if you go back to the earni

it's -- we have the volcker rule that's still pending, basil rulee basel rule is not finalized, and dodd/frank is still developing. the greatest thing is to put things in order. and get exactly what they want in motion. so the banks know exactly what the rules of engagement the rules of the game going forward. >> that's the issue. there isn't any clarity. >> correct. uncertainty. >> from investor standpoint you're putting huge amounts of money to work in this market. do you want to take to the sidelines until some of this is cleared up or are you seeing attractive opportunities now? >> no no we invest in citi. this investment has been there a long time. clearly, whenever there's uncertainty in an industry, you would like to wait until that's applicable for new -- for entering the market to take that time and not to invest until there's clarity in the regulatory arena. >> now, earlier today carl icahn made an announcement, basically saying he's not going anywhere in terms of apple. he said he doesn't want a fight, but he's not going anywhere. as a result of that, apple stock traded down.

to combat double digit inflation, the chairman of the federal reserve paul volcker briefly raised interestates to 20% in the early 1980s. this contributed to the country's plunge into recession but of course its subsequent recovery. the historical average in the u.s. has been around 6%. thanks for being part of my program this week. i'll see you next week. stay tuned for "reliable sources." >>> for a week amid growing doubts, cbs' "60 minutes" stood behind the interview of a security official that told of a harrowing experience during the attack in benghazi but on friday, laura logan admitted her story had fallen apart. >> well, you know, the most important thing to every person at "60 minutes" is the truth and today the truth is that we made a mistake. >> we'll look at what went wrong. the effort to expose the mistake, the implications for cbs news and the debate over what really happened in benghazi that night. and as details emerge about the relationship between miami dolphins player richie incognito and jonathan martin, we'll examine how the media has tackled the subject of bullying in

ben bernanke clearly is not the kind of tough authoritarian we had from either paul volcker or mr., the real question i think the kind of elephant in the room, is qe working? is the policy of spending trillions of dollars to buy up bond from the market, is it working to improve the economy? isn't that the real question at heart of all this? >> that's correct. but i view qe entirely different way. jump in rates last may and june show the way the fedorged qe is working is simply incorrect. qe is working as announcement about the funds rate policy. it's like ernest money or like what economists call a commitment mechanism. as long as qe is in place, the fed won't be raising rates. so they have create ad problem for themselves because they realized that central bank can't continue forever buying 85 billion. a month. it is just not working as advertised. doing something different that has create ad trap for themselves. david: and jon, bill has been very eloquent in written arguments against qe, as being a panacea, cure-all for the economy. the clear point he makes which is indisputable,

he constantly look at volcker rule, proprietary trading rules, because you're acting on behalf of a customer in many situations. real quick on the khan institute because financial literacy is so important to you. what are you doing? >> we looked at the issue of basic education. we looked at the way of educating people. sal and his team have incredible online capability. we had a -- >> sal khan. >> sal khan. >> the idea is to put it all together so we can have the consumer figure out, should i buy a car or lease a car? rent a house or buy a house? whatever the financial decision is. very straightforward. his understanding capabilities in educating people through, you know, technology -- through online computers and other devices is superior to anybody's. so, the idea is to join that together so it's a -- it's a way that the customer can trust the advice they're getting in a way we can share our content and get it out in front of a lot more people quickly. we're very excited by it. the world needs educated on these things. >> no doubt about it. brian, good to have you on the program. thank you

business and good margins attached to them, less about the prop trading that's been rooted out by the volcker rule. do you have a client base that will buy your services, get lucky with a big deal. if not -- >> or money maker. >> that's right. folks, thanks. >> sue, down to you. >> thank you all very much. the housing now, the number of people applying for mortgages slipping. rates on loans have jumped to their highest level in a month. mortgage applications falling almost 2% last week. what do the nation's biggest home builders think about the health of the housing market right now? diana olick speaking with pulte's ceo just a short while ago. she's here at post nine. good to see you as always. >> you're right. rising mortgage rates are not the only thing playing against the big builders right now as sue said, we have the exclusive opportunity to interview the ceo of pulte homes, one of the nation's largest builders to get his take on why we're seeing this pause in the housing recovery. >> the pause has been caused by rapidly rising rates a few months ago, the government shutdown, i don't th

approximately, this is from jpmorgan, a bob dillon song, consider the difference in background between volckernd greenspan or between greenspan and bernanke, viewed in that light bernanke and yellen look like they were separated at birth. >> policy wise, yes. certainly not looks wise. i think a beard on yellen would be creepy. >> q3 is the estimate now but going down to 1.5 but we have lower oil prices. >> 1.5% growth stinks. >> lower oil prices and consumer spending could be 3% in the fourth quarter only going to get that expected rolloff in inventory. >> larry summers had an interesting speech a couple days ago, basically you get to a point when interest rates are so low rich hoard money and don't spend. >> that's a concern. and we actually covered that speech live on cnbc and one of the things -- >> i probably should have known that. >> that's cool. >> i'm not -- i do a lot of stuff. >> i just read the text. >> i know so you don't have to know, sully. he talked about a period of time of a long-term depression like period of time, 2% growth and he says anybody that talks about saving and red

noted for the innovation in the at the end we have kurt volcker. he's the executive directer at the mccain substitute for international leadership. i had brings 23 years of service to our country in the foreign service with a number of senior nato positions. nato-related positions on the last and his career was u.s. criminal representative to nato or ambassador to nato. also served as undernational security staff. senior director for europe. you served in the nato headquarter as deputy chief of staff. on both sides of the atlantic. he is not just brawn but a lot of brains. he taught -- he's a senior degree in physic, taught physic at the united military academy. and missile defense realm. he lead the programs that have produced -- energy programs that patriot pack three, gbi. the ground base and mid course program. the experience in missile deference. we're welcome to have you here. i'm going to start off with -- and work through our panelists and then we'll have a moderated discussion. madeline. last june in berlin. the president rolled out -- del

consider the difference in the background between volcker and greenspan or greenspan and bernanke.e separated at birth. not a lot of change expected in the policy between the two and that's the wrap-up of the week ahead. >> do you want to weigh in on geithner really quick? >> well, i think he picked a firm that would not be one that would be controversial in terms of him going. >> he didn't love the revolving door aspect. he didn't go to bain. he didn't go to black rock or o to, you know, i think this makes sense for him. i think it's enough under the radar in the sense it's not a huge controversy. i don't think he's gunning for another job. i've always wondered about the job he would take that would allow him to come back into the public sector. >> and you think this allows it. >> in this world today, which is very different than the world five years ago, the back and forth between the wall street and government is a lot more limited than it used to be. and i think there's some possibility for pincus to return. >> i think i agree with that. >> there used to be an insurance company

>> and when will we get a volcker rule?st fantasy that exists in the future. >> i think people at home are saying why do people go to jail for insider trading and not go to jail for wrecking the country? she wasn't part of that. she's civil, not criminal. where's holder? why isn't she meeting with holder? >> our thanks to mary for bringing it to us. the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon. >>> six stocks in 60 seconds. >> d.r. horton? >> it's causing a big move up in the home depots in the world. i think this is rather shocking and counterintuitive but this group is well behind. i'll take it. >> vjet. >> be careful. blair, citi being skeptical but you can't keep down a 3d printer. >> sotheby's. >> i put this up because we have dan loeb on at 10:20 and

noted for the innovation in the at the end we have kurt volcker. he's the executive directer at the mccain substitute for international leadership. i had brings 23 years of service to our country in the foreign service with a number of senior nato positions. nato-related positions on the last and his career was u.s. criminal representative to nato or ambassador to nato. also served as undernational security staff. senior director for europe. you served in the nato headquarter as deputy chief of staff. on both sides of the atlantic. he is not just brawn but a lot of brains. he taught -- he's a senior degree in physic, taught physic at the united military academy. and missile defense realm. he lead the programs that have produced -- energy programs that patriot pack three, gbi. the ground base and mid course program. the experience in missile deference. we're welcome to have you here. i'm going to start off with -- and work through our panelists and then we'll have a moderated discussion. madeline. last june in berlin. the president rolled out -- del

ceiling should be raised way in advance of the february deadline and also speaking of the vo called volckert a bank could trade in, lew says when in doubt regulators should e. rr on the side of more financial regulation. those comments made at a conference. the ipad air, ipad mini, you can bet they will sell well this holiday season. which is the smart buy? our tech geek tells us after the break. ♪ you tell me that it's evolution♪ ♪ well, you know, we all want to change the world♪ ♪ when you talk about destruction♪ ♪ don't you know that you can count me out♪ clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. [announcer]...if you think the best bed for one o

dagen: he is really talking about when paul volcker hiked short-term interest rates.a couple of things, i was alive and look of adjustable-rate mortgages and went back to freddie mac data. adjustable-rate mortgages were not widely available in the 1970s, they just were not there. so the question is are we going to see massive inflation, would that be a bad thing in this case? if we see inflation, a general rise in the price level, it will mean the value of your properties going up and the value of your wages is going up. so it is a non-argument. the idea just inflation would go up, but nothing else would move is utter nonsense. connell: also this knee-jerk culture worth talking about is just because if you think the blowup and the crisis in '08 was because some of these mortgages that were risky, does that necessarily mean however many years later that everything in that category that is not a 30-year fixed everything to be ououtlawed or band. >> i think the real reason is people who bought houses they cannot afford. we heard about the ninja loans. no job, no down pay

volcker dismissed ryan.ndidacy of paul governor walker says none of those republicans have taken on big. maryland governor and possible presidential candidate martin o'malley was in new hampshire. he was at an annual fundraiser in new democratic party hampshire, which traditionally hosts the first presidential primary. his comments are about a half hour. >> thank you so very, very much. it is really great to be with so many good friends in new hampshire. company of be in the so many good friends in new hampshire, but so many good friends who are marylanders who have come to new hampshire. [applause] governor haslam, shaheen -- thetor shaheen, speaker of house, senator minority leader sylvia larsen, chairman ray buckley, happy birthday, ray. [applause] chair fuller clark, second vice chair solomon, it is an honor to be with you here in the granite state. a place that is very special to me and very special to the people of our country. it is a bedrock staying in more in moren one -- state ways than one. it is a special honor to be here tonight. [applause] last year, i had the honor to ser

one particular thing i want to ask you about is the volcker rule. using their own money for proprietary trading. you have said that you want atlines from the regulators the end of the year. >> i do not want outlines, i want to rule. >> what are we going to get, is a clarity? >> i'm optimistic we will see a role by the end of the year. i have met under pretty regular basis with the regulators. five different agencies have to come to the same place. it is a consultative process. it has to come to closure. it was an important part of dodd frank. it is important in terms of financial regulatory policy. it is important in terms of confidence in government. i think that if you look at the time from dodd frank being enacted to now there were a every of years when effort to delay the implementation of dodd frank was used from slowing down funding agencies urging congress to repeal dodd frank. for the last year we have seen a different and vernon. we have seen an environment that need for certainty and acceptance, that dodd frank is the law of the land has r

at the end, we have kurt volcker a long time colleague and friend of mine, the executive director of the mccain institute. he brings 23 years of service to our country in the foreign services. with a number of senior nato positions. nato related positions. on the last career, he was a representative to nato, or ambassador to nato. he also served on the national security council staff as a senior director for europe. assistant secretary of state for europe and eurasia affairs. and served in the nato headquarters as a deputy chief of staff and immediately to his left, general pat o'reilly. he comes from us from the missile defense agency which he led, his last post in the military. he's a long career of command staff officer positions on both sides of the atlantic. he is not just braun he has a lot of brains, he's senior degrees in physics. taught physics. and he's led the programs that have produced energy programs, the patriot pact three, and gbi programs. intense operational and problematic experience in missile defense. we're all welcome to have you here. i'm going to start off wit

one particular thing i want to ask you about, the volcker rule this issue of financial institutions usingheir own money, proprietary trading. i think you've said you want outlines from the regulate yorns this by the end of the year. >> i don't want outlines, i want the rule. >> what's your expectation now by the end of the year? is there clarity? >> i'm optimist exwe'll see a rule by the end of the year. i've met on a regular basis with regulators. five different agencies have to come to the same place. it's a complicated process. but it has to come to closure. it was an important part of dodd-frank. i think it's important in terms of financial regulatory policy. i think it's important in terms of confidence and government. these processes can't go on forever. if you look at the period of time from dodd-frank being enacted until now, there were a couple of years where every effort to delay the implementation of dodd-frank was used from slowing down funding the agencies to urging congress to repeal dodd-frank. for the last year, we've seen a different environment. we've seen an environment

one particular thing i want to ask you about, the volcker rule this issue of financial institutions using their own money, proprietary trading. i think you've said you want outlines from the regulate yorns this by the end of the year. >> i don't want outlines, i want the rule. >> what's your expectation now by the end of the year? is there clarity? >> i'm optimist exwe'll see a rule by the end of the year. i've met on a regular basis with regulators. five different agencies have to come to the same place. it's a complicated process. but it has to come to closure. it was an important part of dodd-frank. i think it's important in terms of financial regulatory policy. i think it's important in terms of confidence and government. these processes can't go on forever. if you look at the period of time from dodd-frank being enacted until now, there were a couple of years where every effort to delay the implementation of dodd-frank was used from slowing down funding the agencies to urging congress to repeal dodd-frank. for the last year, we've seen a different environment. we've seen an environme

and, of course, the volcker rule which is ridiculous it's been dragging on this long. >> what you'reling after yesterday's move on the filibuster it seems janet yellen will be the chair of the fed. a good thing? >> yet. i supported her. i don't agree with her on monetary policy but you don't need to grow somebody on everything to support them. i think she's an intelligent, highly intelligent, highly qualified but i think she's open-minded. i hope you'll continue to listen. to get the kind of response is you're getting undersurface. keep going and pushing. this is helping main street because i'm very skeptical that it is and i think it's bringing a lot of risk and distortion that will come back to bite us. >> another kind of red flag that comes out of the polling and not the first one to show this but it is just a reminder of how thin a slice of the country is participating in really saving for retirement at this point. just only 37% of people said they had an employer sponsored 401(k). almost half say their behind where they think they should be for retirement here with a big gap, yo

. >> does that mean normalization of regulatory bodies all over, volcker rule, where are they actuallybut the big litigation his being risk i think is over. you should see what they did to mortgages. >> i think caterpillar is fabulous at forecasting, bad at executing. here's some october statistics. the world's down 12%. asian pacific done 26%, latin america down 8%, rest of the world down 17%, north america the standout, minus 2%. they are not executing well but the board seems to like it because there's been no changes. >> we're going to see a lot of changes potentially in a lot of different stocks. the opening bell right after this. >>> now access live cnbctv with your bare hands. your bare hands. it's an app, it [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announ

i mentioned paul volcker.his is worrisome, in the you can have a new person, janet yellen, taking over the federal reserve. if the economy and market keep gaining, the fed at the outset will have to come out and telegraph how and when is going to withdraw the stimulus. i can't imagine the first day when they actually hike interest rates after all these years for the market will process that. you have a compelling argument that there is a codependency right now. do you see any potential roadblocks in the senate confirmation process for janet yellen? people whoe will be ask tough questions. the tea party contingent is out there saying we cannot just be printing money. must be moreeserve vigilant about this kind of spending, and you need to browbeat congress more and exert your moral persuasion. i think they will give her a rough time. unanimity that she will be the next federal reserve chairman, and she's a very esteemed vice chair now, and she has been sabbatical with record simpatico with record low policy. a

up doesn't have a volcker rule, the fdic going over this way. i mean, i don't know how you operate in this environment and ever expect it to be normal. >> and the climate's bad. elizabeth wharton hasn't even spoken. how about that? was she on that twitter -- >> she was one of. people asking questions. >> when you're out in california -- >> you love that thing, don't you? >> people in california say do they know twitter? twitter is open season. it's like colgate. how could they think not to curate that twitter conversation at jpmorgan. i remain convinced you get the justice department out of the picture, you can value certainly. as long as justice is in, it's very hard. by the way, if you mention that maybe all the charges aren't that justified, that puts you immediately in the journalism jail. you're supposed to say every charge is justified. i think jpmorgan did many wrong things -- >> well, washington mutual and bear stearns. >> but carey killinger, ever hear of his name? >> no. >> i was saying i think washington mutual is going to go bankrupt

i mean, volcker had to come in and save this, uyou know, save the entire world because we let it geting about inflation. >> i think it could happen again and i have been worried about it. yeah, absolutely. >> there's global deflationary forces that have given you guys cover. >> yes, global deflationary forces. what is going on? what's driving that deflationary process. i think that's been -- >> what -- >> low inflationary. >> cheap labor? globalization. >> greenspan would say all these workers coming on from emerging markets which is a good story. bernanke says it's driving real interest rates low. >> you made the case for qe almost becoming a permanent program if inflation were to stay low for two or three or four years. >> i think it's a reasonable way to operate when the policy rate is at zero. >> as long as you're stuck -- so that -- the criticism used to be if the fed got to zero, it's pushing on a string, it can no longer do anything. you came up with a different way to do it with bond buying. there is more to do and we're doing it right now. >> yes. >> and the only -- the only