the only way you can do it is by political unity. >> dr. greenspan there talking to evan davis. with me is our police presenter. doesn't sound at all hopeful about the budget crisis in washington, does he? >> absolutely want. but i mean, there has been a debt ceiling agreement t. takes america through to the beginning of next year, but what dr. greenspan said was that a repeat of the debt crisis is perfectly conceivable. he also has, you know, said that he's affiliated to or agrees with or sympathizes with the aims of the tea party. republicans have pushed things to this level. but he's also disagreed wholly with their tactics, and they even call those tactics undemocratic, and he's actually underlined the fact that what's been happening in america, although we're seeing some sort of androw news now, could end up jeopardizing the american economy and as a consequence also the u.s. dollar. interesting comments there from dr. greenspan on the current debt shutdown. >> i don't know if you saw in my destruction, this mean has a very impressive c.v., but there are lots of people who

dr. greenspan, thanks so much for joining us. >> my pleasure. >> that quote was really stunning and the book takes a look at what we missed leading up to the 2008 crisis. how do you and so many economists get it so wrong? >> i was acutely aware of the fact that when you are in a regulatory area such as we've been, the first line of defense is the fact of the inner workings of the individual companies whose self-interest is strongly in the direction of remaining solvent, protecting shareholders equity. a remarkably large number have failed. i was shocked and so were all of my colleagues. >> has enough been done in the last five years to prevent another crisis? >> some things, yes. some things, no. on the capital side, we've not done anywhere near enough because in principle, if you have enough capital in the financial intermediary, you can fail. you can only fail if you have debt. and if 6 to 8%. which is what the capital to asset ratios were. that was not enough. we're now at 11. that's m

thanks dr. greenspan. >>> when we come back, we have more from dan gilbert. caterpillar ceo on the company's latest results next. the company issuing a warning. we have madison square garden ceo and groupons cofounder and light bank key manager. they'll join us along with eric lefkofsky. and then it's kid rock. that's all coming up this morning. more than a new interior lighting system. ♪ it is more than a hot stone massage. and more than your favorite scent infused into the cabin. it is a completely new era of innovation. and the highest expression of mercedes-benz. introducing the 2014 s-class. the best or nothing. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. >>> we still have a lot to come. we have

it's my intention to nominate dr. alan greenspan to a four-year term as chairman of the federal reserve. schoumacher: on his first day in office, chairman greenspan revealed his wish list -- a dollar which is always stable, interest rates which stay low, and employment which stays high. schoumacher: his first action as chairman of the board of governors was to reaffirm volcker's tight money policy, a long-range policy that most economists believed was crucial to maintaining orderly economic growth. but if there was one sector of the economy that was far from orderly in 1987, it was the stock market. 40. asia, 784. schoumacher: greenspan feared a collapse. but what could the fed do? securities analyst roger kubarych. when chairman greenspan came in office in august, one of the first things he did was to launch a series of studies -- call them war games if you like -- that did include both the board staff in washington, members of the board, and the new york fed, on a number of possible scenarios for market disruption,

dr. michael burry, a california physician with only one good eye. uncomfortable dealing with patients, burry quit medicine and started a hedge fund in cupertino. beginning in 2003, he turned to something that no one else in america was doing: reading and analyzing the pools of risky subprime mortgage loans that wall street had been buying up and bundling into highly profitable mortgage-backed securities, which they were selling to investors around the world. >> i called up the prospectuses, and i read the prospectuses, and i looked at these pools. i could see the credit standards within these pools deteriorating just quarter to quarter. >> how could you tell that? >> there was essentially crappier mortgages being put into these pools, and it didn't seem investors seemed to care, and it didn't seem the ratings agencies seemed to care. >> do you think many people read these prospectuses? >> i think the lawyers that put them together...[laughs] to an extent, maybe. >> do you think the execut