the poker game bernanke won is good news. as nelson alvin told us in "walk on the wild side," never play cards with a man named doc. i'm changing it to never play cards with a man named ben. after today, we know he will beat you. cedric in texas. >> caller: my question is about pandora. i bought pandora when we heard about the new ceo. i sold yesterday and today i see they had a judgment that was granted in the courts for them. i wonder what is pandora going to do after this? >> i think pandora, a lot of people are betting against pandora. the new ceo looks like a sharp guy. let's let it come back down a little and you can you get back in. i think people were concerned apple didn't cut them to smithereens. you took a win, don't go back, don't take points off the board! something you should never do in football. how about paul in pennsylvania, please. paul. >> caller: booyah jimbo. jim, thank you for all your help through the years and you have a great, wonderful staff. >> they make me look good every day and that's not easy,

the facts changed so bernanke changed his mind, too. he doesn't care that he's going to get hammered for doing so by the same people who hated what he's done for the housing market and what hoose done for the stock market and what he's done for unemployment. as bernanke said, he never spelled out what he was going to say anyway, people just put words in his mouth. think about what what happened when he said they might have to cut the bond market. d did you notice the home builder stocks were all crushed? i think when bernanke indicated it might be time to stop biography bond he didn't recognize central bonds from all over the world would come flying in and sell, sell, sell treasury. the market basically caused a tapering for him. he didn't need to do anything. these sellers tapered too aggressive for him, which is another reason why ben bernanke threw in his old hand and got another. every single retailer except the dollar stores had a horrendous time since the interest rate jump. oh, the dollar stores did fine. manny chirico, he told y

the poker game bernanke won is good news. as nelson alvin told us in "walk on the wild side," never play cards with a man named doc. i'm changing it to never play cards with a man named ben. after today, we know he will beat you. cedric in texas. >> caller: my question is about pandora. i bought pandora when we heard about the new ceo. i sold yesterday and today i see they had a judgment that was granted in the courts for them. i wonder what is pandora going to do after this? >> i think pandora, a lot of people are betting against pandora. the new ceo looks like a sharp guy. let's let it come back down a little and you can you get back in. i think people were concerned apple didn't cut them to smithereens. you took a win, don't go back, don't take points off the board! something you should never do in football. how about paul in pennsylvania, please. paul. >> caller: booyah jimbo. jim, thank you for all your help through the years and you have a great, wonderful staff. >> they make me look good every day and that's not easy,

bernanke: thank you. >> there you have it, fed chief ben bernanke calmly facing reporters with somewhat of an alarming message here that the economic data points that we have seen over the last year still do not warrant tapering. scaling back of the $85 billion bond purchases the fed has pretty much consistently been making month after month. and actually we know that is a worrisome message but stocks loved it, equities skyrocketing in the wake of the fed punch. the market hitting new record highs after the stunner from the fed. let's get you up to speed. we are showing you intraday charts. the dow was like pushing down about 42 points. within seconds of the notepaper announcement at 2:00 p.m. eastern time it soared up 144 points. it was up around 117 points. earlier down 59. as you can see, we are experiencing in a placement of 239 points for the dow. the largest since june 24. the s&p 500 down about one to two points before the announcement took off for the moon. now well above 1705. 1725, intraday high and a record high. we are picking this one because look at this jump as well. 1077

bernanke's term expires in january. all the easy money measures over the past five years have bloated the fed's balance sheet. it has more than tripled since 2008 since the financial crisis hit. he may want to clean things up before he leaves. president barack obama says he will nominate a successor this fall, and that may undermine bernanke's influence on monetary policy. members of the federal open market committee will present a new economic outlook in december and since investors are already reacting to the possible scaledown, there's a good chance the fed will follow through by the end of the year. >> all right. thanks so much for your insights, always. >>> that does it in business for this hour. much more to come. i'll leave you with a look at markets. ♪ >>> the people in charge of the fukushima daiichi nuclear plant have yet another problem on their hands. they say they've found cracks in the brace supporting an exhaust pipe. authorities are concerned the pipe could collapse in another earthquake. the 120 meter

you are not a fan of ben bernanke. you're not a fan of quantitative easing at all and now it continues at the same pace for the foreseeable future. >> let me say i'm a bull. the market's rising, i'm happy. but i'd much rather see the wicked witch of the east go away. i think we'd be way better off if we ended quantitative easing real fast so this scapegoat can get behind us. quantitative easing is bad, not good. bernanke is bad, not good. >> you think the economy would be better off without quantitative easing? >> absolutely. we have done well without quantitative easing, not in spite of it. it's an evil. look at britain when we thut kwan ta -- when they put quantitative easing in, things went to the tank. leading curve has been a leading economic indicator. steeper yield curves, auger in more bank future lending because it's a reflection of the marginal proceed pmargin al propensity for banks to lend. you could get a marginal bank curve of zero to zero and nobody would lend to anybody. >> perhaps, perhaps. and yet as

ben bernanke is very clear. he doesn't want to start cutting until we see unemployment, not cutting, rather, tapering. they're not cutting for a long time i think. forget that. that's not happening until unemployment comes down to certain levels which it is not at the moment. here are the treasury yields. anybody surprised about this? tim, what did you think when you saw treasury yields coming down just a bit? >> no, i wasn't that surprised, liz. if you go back to may when the taper talk started, that is when they started to back up. now that's off the table, it was pretty swift. but, so was the backup in rates. so i'm not surprisessed at all. my guess is, if this continues, again in terms of fed monetary policy i expect them to continue to -- liz: john, how stark do you think that move was compared when it comes to gold, jumping now $57 in the after-market session or at least last look compared to a sort of a slight move down on yields? what message does that send as we spin it forward to investors who say what

about the people in line to replace bernanke. janet yellen is the number-two person at the fed but donald cohn is also supposed to be under consideration. tell me about those two. >> janet yell season the current number two. she has been a key depp toy ben bernanke over the last three years and the engineer of the policies to get jobs on tracks. she's been laser focused on employment. don cohn was the previous vice chairman. he retired in 2010, but he's kept busy since then and would be a more -- he's focused on unemployment, focused on financial stability, he brings experience as well. the question is does the president want to go with the obvious choice, the number two sitting there who and has continuity with the bernanke poll sneeze. >> ifill: until larry summers pulled out of this she was not the obvious choice, was she? >> back in the spring fed watchers were certain janet yellen was going to get the job then we got the rumblings that the president was leaning toward larry summers. just a week ago larry summers pulled out o

try to figure out how ben bernanke is doing. would you after listening to him yesterday raise numbers for the. cog quarter or lower them? i think the answer is pretty darn easy. i think you would slash retail numbers in the fourth quarter. why? because suddenly the future has become worse and with the impending government shutdown, it will get worse. i kid you not. the fault and downgrade could be creeping into the vernacular. bernanke is a student of history. he doesn't care who will cause the shundowtdown. he's not political. he just knows that the economy folded during the shutdown as all monetary services were cut back instantly. so he knows speaker boehner has adopted the policy of the president and there's no doubt about it. during war similar to the clinton/gingribegigingrich deba market diminished. he head i slowly back to academia would be. what was that bozo the clown thinking. how could he have tapered knowing what lay ahead. many people tell me that bernanke has misjudged how strong the economy is and that the stock

but not yet said chairman ben bernanke. fomc policymakers tightening a decision specifically in mortgage rates. it blames washington, making note of another congressional showdown on the debt ceiling. >> a government shutdown and perhaps even more so a failure to raise the debt limit could have very serious consequences for the financial markets and for the economy. and the federal reserve's policy is to do whatever we can to keep the economy on course. >> the fed also downgraded its outlook for the economy. it now expects gdp growth will be in the 2 to 2.3% range for this year. as for the market response to the fed's announcement, well, stocks soared to all-time highs. looks like game on as far as any of these short-term traders are concerned. you saw bond yields retreating. the dow jones industrial average closed at 15,676. the ten-year yield crept down to 2.7%. the dow and the s&p posting their best day since mid-june. all the sectors closed in positive territory. among the biggest winners, the home builders. we talked a

try to figure out how ben bernanke is doing. would you after listening to him yesterday raise numbers for the quarter or lower them? i think the answer is pretty darn easy. i think you would slash retail numbers in the fourth quarter. why? because suddenly the future has become worrisome with the impending government shutdown, it will get worse. i kid you not. the government default and downgrade could be creeping into the vernacular. bernanke is a student of history. he doesn't care who will cause the shutdown. he's not political. he just knows that the economy folded during the 1995-96 shutdown as all government services were cut back instantly. so he knows speaker boehner has adopted the policy of the president and there's no doubt about it. we will reprise, enduring a war similar to the clinton/gingrich debacle the market diminished. as he headed slowly back to academia would be, what was that bozo the clown thinking? how could he have tapered knowing what lay ahead? many people tell me that bernanke has misjudged how strong

but not yet said chairman ben bernanke. fomc policymakers tightening a decision specifically in mortgage rates. it blames washington, making note of another congressional showdown on the debt ceiling. >> a government shutdown and perhaps even more so a failure to raise the debt limit could have very serious consequences for the financial markets a

bernanke in just over 10 minutes now. what would be your question to him on this no-taper wednesday? >> hopefully we'll get some details into what really drove this decision. what was the decision to taper say in december rather than now. i mean what are they fearful about and i think he is likely to stress that tapering is still going to come but it's not going to be for a while. ashley: all right. tracy: steven, let's throw the same question to you, as a former fed economist you have to be wishing you're in the meeting wondering the thought process? >> absolutely. so bernanke's press conference will be really, really interesting and he is going to of course try to lay out the logic for the no-taper action today but i don't think he is going to indicate that tapering is off the table for october or december. i think this was really a risk management action on the fed's part. they want to see more information about how the housing market is behaving in light of the higher mortgage rates and they want to see what plays out

it's very relevant as bernanke said in his press conference yesterday. it's still extremely important. it's probably the single one number that best represents the labor market but we have no need to represent it by one number. we have a lot of data. >> rose: is it the number with the most political sensitivity? >> i think definitely. >> i come back to the communication issue the fed wanted to have a clear way to the markets rather than saying i have a hot spot and i'm going to try to balance them. there's an onus on the fed to provide these clear stacks and help people understand what it's doing. >> rose: what will central bankers around the world say when they watch this? will it affect their actions at all? >> well, i think certainly many emerging market countries are going to be pretty relieved. we've seen a significant rally in emerging market asset prices in the last 24 hours, particularly in stock markets. in some ways it simply continues the status quo and mark carney in england has indicated -- >> rose: head of the bank of england. >> exactly. h

on the table and doug put on bernanke's liquidity. so the liquidity problem solved the financial problem, do you see it that way? >> no, i don't think so. when you look at t.a.r.p. it robbed us of the recovery. look at japan and germany after world war ii they were reduced to rubble, but over a few years they were very rich countries once again. the idea that we needed to save citibank to save the u.s. economy is laughable and i think bernanke and paulson sold us on a dangerous lie that's is set back the recovery. >> okay, i don't know which position you'll take, but a lot of people believe that the injection of capital was very important and the injection of fed liquidity, at least the first round back in what, 19 -- let's see. when was the first round? 2008. yeah. 2008, 2009. the first round of bernanke. do you think -- is there a case that that liquidity and that t.a.r.p. was necessary? >> hi, larry. wait, i want to separate out the various things you were mentioning. there was a liquidity injection or -- in october of 2008. when t

. >>> a ben bernanke bombshell. no taper. and stocks, bonds, gold, and all prices, the fed says it's just not the time to cut become on bond prices. so question. where does the fed and the market go from here? >>> and then there was this. >> this week the house will pass a cr that locks the sequester savings in and defunds obama care. >> now speaker boehner's promise throws down the gauntlet for a fight with the white house and the senate democrats. the clock is ticking. time is running out. and frankly, a government shutdown seems more likely than ever. and ben bernanke says this concern was the factor in the decision not to cut back on their stimulus. >>> and what will it take to get younger americans to invest in the markets, to save, or even buy homes? we assemble an all star panel of young cnbc millennials to get some answers. all and more coming up on t"the kudlow report", beginning right now. good evening, everyone. i'm larry kudlow. it's 7:00 eastern time, 4:00 p.m. on the west coast, and we are live on "the kudlow re

can you talk to us about the difference in terms of janet yellen versus ben bernanke. would policy be different? >> it's up to the white house to make a decision on this. if she does get the job, she'll want to outline her on strategy and not have me doing that. we'll give her the opportunity to do that. i will say no matter who the chairman is, i think there will be a lot of continuity in policy. it's not the kind of thing that changes abruptly. it's a big committee. there's a lot of people with expertise. i would see it as a slow changing kind of thing. janet has been right in the middle of the action for quite a while. >> would you have liked to work with larry summers? >> i don't know him that well. >> what is your assessment of the next year. i know it's data dependent. what would been your expectation in terms of the growth pace of next year? >> i'm still optimistic. >> great to have you on the program. >> great to talk to you. >> we appreciate your time. james bullard joining us. >>> up next, what does the fed stunning decision mean to your money and your market

janet yellenerved with ben bernanke for quite some time now. she called forrcontinuation of highly federal reserve policy. summers is very interested in intervening economy. was the architect of so much of the stimulus levied on the economy the past couple years. regardless whether summers or yellen, melissa, to your earlier point the president will likely be satisfied with either one. he will get his top pick in summers and progressive top pick in yellen. both of those picks are in favor of more intervention, in my opinion destructive for the economy. >> another interesting point. don't forget one of the most popular things bill clinton did as president, eight years as president, reappointing a republican, a republican as fed chairman. melissa: yeah. >> so i'm not ruling this out that ben bernanke is not reappointed. in fact i would say he is right there in the mix. the thing that makes me very nervous about larry summers, he has a god complex. i'm not so sure you want somebody with that kind of master of the universe complex heading up the fe

bernanke made in his press conference here. he said -- put up full screen -- economic data does not yet provide sufficient confirmation to warrant reducing purchases. that's what moved the markets. take a look at dow industrials. from the fed announcement at 2:00 to the height of the market, the dow moved 200 point. nice move there. we closed off the highs. it was sufficient for historic high. the dow industrials, history high for the transports. history highs for s&p and russell 2000. midcap, not historic high. sensitive stocks, home building, reits moved up. mr. bernanke mentioning emerging markets saying he did talk to individuals in emerging market individuals. there you see moving to the upside. hmo stocks, there's a lot of concern that the house of republicans have steam in trying to derail obama care. i don't think so. you can see to the downside. a lot of people convinced themselves that even though the data wasn't strong, we would see taper today. a lot of people felt they were misled by the fed. i think everybody just

the right hand man of ben bernanke. wouldn't he be more qualified to take us out of those policies we have lived through in just these past five years? >> i think they're equally qualified. she ran the san francisco fed. again, he would be a great chairman. i strictly look at the politics of this. getting support on capitol hill. this is a president who has seen his own democrats defect on syria, a lot of his own democrats defect on larry summers. does he want to do something even more provocative and overlook her? i think it makes no sense politically. adam: might there be a problem not on the political side, but on the history side. for instance, a speech in 2005 in jackson hole where there were economists raising red flags about the shadow banking system. here you have donald at the federal reserve saying essentially don't be worried. the repeal of glass stiegel makes our system more able to react to problems. he was wrong. >> i think he is in a pretty large category of people is said that. a lot of people at the fed

for bernanke. it doesn't cost obama anything. he continues not to fully own monetary policy if he reappoints bernanke. i just think from a combination of the way this has been handled that bernanke's off the table and i think from a personal standpoint -- to say he could -- the one idea, i don't know if tony mentioned this, but it would be an interim bernanke. i think that stops from happening. >> you wouldn't have to taper right away either. >> yeah, but i think bernanke believes it's time to taper. >> well, it's a six-year appointment. but you can step away if you feel like it yourself, can't you? >> yeah. i'm not sure how it works, but i think the president could nominate and with an understanding it was a temporary thing and bernanke can step away -- >> he can say never mind, i'm here for another six years. >> someone told him, you've been here long enough. >> it has been said. >> any one of these names, yellen and neil and greg, i'll throw this out to you, are there hurt feelings? . how closel

janet yellen served with ben bernanke for quite some time now. she called forrcontinuation of highly accommodative federal reserve policy. summers is very interested in intervening economy. was the architect of so much of the stimulus levied on the economy the past couple years. regardless whether summers or yellen, melissa, to your earlier point the president will likely be satisfied with either one. he will get his top pick in summers and progressive top pick in yellen. both of those picks are in favor of more intervention, in my opinion destructive for the economy. >> another interesting point. don't forget one of the most popular things bill clinton did as president, eight years as president, reappointing a republican, a republican as fed chairman. melissa: yeah. >> so i'm not ruling this out that ben bernanke is not reappointed. in fact i would say he is right there in the mix. the thing that makes me very nervous about larry summers, he has a god complex. i'm not so sure you want somebody with that kind of master of the universe complex hea

the bernanke news conference. an empty podium. ben bernanke will be at that podium very soon. back right after this. man: sometimes it's like we're still in college. but with a mortgage. and the furniture's a lot nicer. and suddenly, the most important person in my life is someone i haven't even met yet. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. as you plan your next step, we'll help you get there. (announcer) at scottrade, our clto make their money do more.re (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) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from nationa

especially if the nominee is yellen who was well known by wall street expected to continue bernanke's policies and easy to confirm in a fractious setting. for "nightly business report," i'm steve liesman. >>> the fed's next move on its stimulus plans and the selection for the next chairman of the federal reserve aren't the only fiscal worries hanging over president obama's head right now. there's the issue of how to fund the u.s. government and the battle that's brewing over raising the nation's debt ceiling. john harwood joins us with more on what's the president's agenda. does the summers exit throw a bit of a reference into the rest of the president's plans or not? >> i don't think so. it'll probably remove a heavy lift politically that the administration was looking at to deal with democratic opposition to larry summers and republican opposition to summers as there is republican opposition to just about anything the president wants to do, so in that respect, a smooth confirmation for janet yellen in addition to fueling more confidence in the stock market as we saw today will proba

that is the news conference that ben bernanke will hold afterwards. we don't know what language he will use in order to characterize whatever action or non-action they take tomorrow. >> and it's a real high wire act that he will do tomorrow because here is what he is trying to attempt. he is trying to attempt forward guidance which means you have to believe him. and that the federal reserve has the ability. >> why four to five years? why not one year down the line? why are you so far out? >> one year, because they are already saying to 2016, three years. they will keep rates low. probably going to be wrong on that. so add another one or two inches for good measure. >> one thing they have been right on is low inflation. >> they have been right on that. >> and the monkey wrench is, of course, that ben bernanke is stepping down next year. how do you factor in the news conference tomorrow and factor in what bernanke may or may not say? >> i think one thing about bernanke stepping down is you would think that perhaps he would want to initiate some tapering

you've said that, ben bernanke has said that. what would be your expectations of the economy in terms of the growth pace in the next year? >> i'm still optimistic. even after my forecasts have been dashed. >> great to talk to you. we appreciate your time. >>> up next, what does feds' stunning decision mean to your money and the markets? and that's not all that's going on in washington. what might happen, next. and later, we take a walk down memory lane on wall street. what are the lessons learned? what's still left to do? that's coming out. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up.

i think fallon's got bernanke. >> stewart's got bernanke. >> what a get! >> there is one final interesting point about all this because tomorrow we're going to get this vote on whether to defund obama care in the house. what bernanke did yesterday was effectively tie -- say a vote against qe -- if you're not happy with what the fed is doing right here, then you want to keep the government running. if keeping the government running means keeping obama care funded, he has now just tied everything. try grappling with that if you're a member of congress right now. >> they gave you a little gift here. we'll be talking about that for days. is that a positive conversation? >> no, it's not at all. >> how many jobs are created by that? >> druckenmiller would tell you he's as worried about that as anything. >> teper's statement this morning is the fed is leaning heavy. >> if you work at united technologies, this is a great time, 3m. they're having a great quarter because asia has come back. if you're a local guy, shopkeeper, retailer, it's not a great time. what man

i don't know bernanke -- obama wanted bernanke to do. >> i thought he fired them on leno -- or charlie rose. >> i will saber nan i can is not where he thought he was going to be in in terms of the exit strategy for what he thought he was going to debart. i think he thought ed be way further down the line as far as passing off an exit strategy to his successor. >> president wants to put it on the fed, his last big appointment. he wants to put someone in there, not go with bernanke. that's last resort. this is an important appointment for obama. he wants to put somebody in there new. >> thanks, gentlemen. 15 minutes before the closing bell sounds for the day. a market up 30 points on the dow. >> the latest on yesterday's mass shooting tragedy in d.c. and just how easy it is for contract workers to get security clearances. those reports coming up. ready to run your lines? okay, who helps you focus on your recovery? yo, yo, yo. aflac. wow. [ under his breath ] that was horrible. pays you cash when you're sick or hurt? [ japanese accent ] aflac. love it. [ under his breath ] hate it. helps

and ben bernanke is not in the fireworks business. this has been well telegraphed on with all wall street in the past couple of months. i think the details of the taper, it really doesn't matter. >> 30 billion would be a shock, wouldn't it? >> i don't think it matters. we're going to get to zero by the middle of the next year. bernanke has said he wants to get to zero by the time unemployment gets to 7%. we're now 579.3% and falling at a roent pace. it's not going to have a huge impact. >> does that mean we can get through it and if you like buying stocks yesterday, you'll like buying stocks tomorrow? >> i don't think it makes any difference. i think what the whole debate does highlight is that the way the fed looks at tapering is very different from how will how wall street is looking at fed tapering. we're carrying on buying bonds, we still have the acceleration of the economy. tapering is slowly easing your foot off the accelerator of the economy. wall street is looking at it differently. wall street is assuming that because they'r

people are -- i think a lot of people think ben bernanke blew it. this myopic about an opportunity to put the fed to do something that will harm wall street that everyone was waiting for and welcomed with open arms, myopic about what his mission is. it is not just him, but because of d.c. and other factors but what is it going to take to turn off the spigot when inflation -- a lot of people know inflation now but the official number even in the official numbers he is not going to flip this thing like the light switch. stuart: can't just do that. charles: he has the arrogance of thinking that he can. stuart: all of our viewers are saying -- liz: he can flip a like a light switch by raising rates. a huge effect on the markets and the economy. stuart: i would imagine he would anyway. tanya is still there paying for satellite time, we got to use it. we have a bone to pick with you. >> every american. stuart: a little background. the energy department is selling the $192 million loan it made in 2009. it is selling it. pennies on the dollar. it is not in

even ben bernanke said eventually they have to stop qe. when 2 happens it will fall back to a thousand bucks an ounce. what do you hear about gold. >> sound like that person's sentiment reflects goldman sachs similar sentiment. i was laughing this morning, goldman sachs put out a note basically saying, hold on, wait, near term maybe there is some he risk gold will go higher here based on the fed policy last week they came out with a big call for gold to fall to $1050 a troy ounce. they got caught backwards in the surprise move by the fed. they're calling long term for the selloff to it $1,000 in gold. like your friend, dave, gold could go higher than here. it is at 13 -- 1356. david: that is great stuff, sandy smith and alan, great stuff. liz: eye-popping up more than 9% after the company was upgraded to a buy at stiffle nicolaus. the firm citing groupon's expansion efforts overseas, not here, overseas as a positive sign for the stock. is now the time to buy into the daily deal site? joining mee now, tom forte, telsey advisory group managi

bernanke taper? if so, by how much? and what does all of it mean to your money? we trade it with josh brown, joe, simon, john. joe terranova, to you first. >> well, i think tomorrow, really, the expectation is you will see tapering. we've been consistent on that all along. i think what they do with the outcome-based guidance, that's what the market is most going to pay attention to. i've said, i believe, the unemployment 6.5%, down to 6%, it gives them another ten months to lengthen the runway on the entire tapering process. i think for the investment, for the trade, it really comes down at this point to where you want to be allocated. now, e.m. has been good. materials have been good over the last six weeks. i, myself, believe this is the time that you want to begin the rotation. go back to the financial names. go back to the industrial names. move out of the materials, move out of e.m., because i think after we get tapering tomorrow, that's going to be the positive effect. >> josh, we haven't had a real correction all year long. we now have the best three quart

ben bernanke gave his reasoning yesterday afternoon. a key line of the fed's press release says it all. the tightening of financial conditions observed in recent months if sustained could slow the pace of the improvement in the economy and labor market. the fed will keep the juice flowing. mortgage rates have been rising and the other thing fiscal battle in washington raising the debt ceiling and avoiding a government shutdown. all of this bernanke thought it was better to wait and don't take the train wheels off the economy just yet. new record on the dows and s&p and all closed sharply higher. so far this month, the dow has gained 867 points. the september surge they call t it. the dow is up 20% for the month and nasdaq 25%. can you see why i can't speak? 12%. goldman sacks doesn't to have an announcement until december's meeting. the bernanke taper caper continues. gold up sharply. interest rates this morning down sharply. for you, the mortgage, you want to refinance a mortgage, i think we are going to have maybe lower mortgage rates

bernanke's announcement, again, sent ripples throughout the financial world. the recession in the u.s. had led investors to shift their money to emerging economies, but after bernanke's comments they started pulling on ut their fun and putting it back in the u.s. officials in emerging nations are worried that the sudden outflow of capital will hurt their economies. investors are wondering if the fed will actually go ahead and start winding down its massive easing measures. they'll be carefully watching the outcome of the policy meeting. k yoko fujita, nhk world, tokyo. >>> struggling japanese electronics makers sharp has announced that it aims to revive its business. the firm says it will do this by offering new stocks and receiving investments by some japanese manufacturers. a total of $1.6 billion will be raised. >> executives at sharp say the firm plans to issue new shares to gain funds from the market next month. they also plan to receive investments worth about $177 million from three companies. the power toolmaker, the makita and autoparts maker denzo. s

in a huge surprise fed chair ben bernanke said that the fed would not take money away from stimulus programs because of head winds facing the economy. >> in light of these encertain thes we decided to wait for more evidence. of the sustained economy. >> some of those developments are high unemployment rate and cut backs that are restraining the committee. the fed has been pumping $85 billion into the final system every month of the year. it does so by buying bonds from banks and brokers who can turn around and borrow that money at lower interest rates. if the fed had taken away this money it thanksgiving would mean higher interest rates. to understoo understand how influenc influential how the fed is in this, according to a new poll 73% of americans do not understand what the fed is doing and cannot figure out how it's monetary policies effects the economy. the fed has injected $2.8 trillion in the financial system. the moves have boosted the stock mark into bull market territories and interest rates are low and boost the housing market, the very market that brought this country into recessi

>> ben bernanke made a statement some months ago that this program has to end. he may have been indicating next spring. that made the market extremely anxiety ridden. we know that the economy is not back yet, and his eyes are on that labor number, the employe employeement number. we know that there is hidden unemployment in the system. we know there are people who want jobs who simply gave up looking for jobs. this is not an easy fix just because we hit the marker for unemployment. >> why do you think there is such a disconnect among the american people. >> well, i think that they would like to see loans to small businesses happen in a speedier fashion. to see the banking system recover and now they would like to see themselves recover. there is a perception that the banks are benefiting from this, and wall street is benefiting from this, and clearly they have, but this takes time to filter down. it's all about confidence. that's why this liquidity is is important. >> things take time, but we started this rounds in 2010. it's been a number of years i think it ha

further, bernanke has a disciple. she's loved by so many economists and politician, smart, level-headed, janet yellen, the fed's current vice chair. she is a peace maker and a consensus builder. which is exactly what investors want. so the contrast is stark. now, i don't think that yellen will get this nod as it's a little hard to believe that any president who likes somers could also like yellen. those are worlds collided. but the fact is no matter who came ut in favor of yellen against somers, it didn't make any impact on the president. it's almost no one mattered other than the president, even though you read a confirmation process. it's even as if the democrats in the senate didn't matter. it was really strange. come on, you got to admit this is a strange one. it's palpable senator warren on the in the committee, that her view couldn't get through to the president. she a former harvard professor with fre respect. somers had to reseen from the presidency. he had disparageing remarks about the zlek intellecttual pre

further, bernanke has a disciple. she's loved by so many economists and politicians, smart, level-headed, janet yellen, the fed's current vice chair. she is a peace maker and a consensus builder. which is exactly what investors want. so the contrast is stark. now, i don't think that yellen will get this nod, as it's a little hard to believe that any president who likes summers could also like yellen. those are worlds colliding. but the fact is no matter who came out in favor of yellen against summers, it didn't make any impact on the president. it's almost no one mattered other than the president, even though you read a confirmation process. it's even as if the democrats in the senate didn't matter. it was really strange. come on, you got to admit this was a strange one. it's palpable that senator elizabeth warren on the committee, that her view couldn't get through to the president. she a former harvard professor with respect. summers had to resign from the harvard presidency. he had disparaging remarks about women.

bernanke and his team of dove are concerned about this, that's why they're saying not time to pull back yet. >> yet there was the expectation that the fed would pull back $10 million and leave 75. >> most participants thought the fed would move in this meeting both in june and july when he testified before congress chairman bernanke hinted the time was approaching for the fed to begin not stepping on the brake pedal but taking its foot off the accelerator ever so slightly so if the fed wanted to start the ball in motion they had the opportunity today without a significant market reaction. they passed. >> doesn't that mean that the fed sees the economy as perhaps even more fragile than a lot of people thought? >> i think they're troubled by the last couple of employment reports which showed just a whiff of momentum easing a little bit in the labor market. they decided to error on the side of caution. i think the other side of the story which they hinted at in their meeting statement when they talked about the risk of federal government if dragging down recovery. they're concerned about t

peter barnes was at the news conference and asked ben bernanke whether fiscal issues in washington d.c. played a part in the decision to delay capering. turned out to be a key moment in the news conference. >> what will be the impact of a government shut down on the economy and what could the fed be prepared to respond to that and help the economy with additional accommodation, additional asset purchases? >> of factors that did concern us in our discussion was some upcoming fiscal policy decisions. i would include the possibility of government shutdown and the debt limit issue. connell: we will talk about those issues, former executive vice president, director of research at the atlanta fed, from cumberland advisers. turns out of the chairman was concerned about these big issues that will take up all of our time whether the government shutdown, what do you make of that and how it played into the decision not to do what people to do? >> he is right to have worried about the fiscal situation and that is not new. this has been going on for the better part of a year or more as we come up t

welcome to the kaiser report imax kaiser so ben bernanke all print no taper as we said all along the fed will never taper it was a hoax from the way the very beginning but then you don't become the greatest hedge fund manager in history without duping other market participants first. execute trades based on mark manipulation and trading on inside information do you. know it would appear that the fed as you have said many times all along many of our guests have actually said is that the fed is like a hedge fund which apparently is something that warren buffett agrees with and thinks is a great thing the federal reserve is the greatest hedge fund in history says warren buffett the eighty two year old who has led berkshire hathaway for more than four decades hailed the fed's ability to make money from bond purchases as a result of quantitative easing which in five years is more than tripled its balance sheet to more than three point six trillion dollars the fed is the greatest hedge fund in history he said yeah right ok it's a four trillion dollar hedge fund so if they want the price of