employment and keep the economy going. he is more focused on keeping the economy going than inflation. peter, what is the next step? well, the fed doesn t have a lot of options left. we can do qe-3 which would lower long-term treasury security rates, and in turn lower mortgage rates and not much of an effect on car loans for example and not much of an effect on business borrowing, although it would give the stock market a little bit of a lift, but other than that, the fed is out of bullets. peter, should washington be doing more to boost the confidence and there is talk that the president should order congress back to work through the financial crisis? well, the president has to decide what he wants from congress before he orders them back. asking them to come up with a package of easing regulatory burdens is going to do no good and the chamber of commerce and jamie diamond from wall street will all show up with particular
obama. i haven t heard many outside the box suggestions like what you re talking about. people peach look if it was inside the box it would be important. it was outside the box in 1939, it was inside the box in 1945. but the euro zone is so weak we have advantages they don t have. i understand. money printing is one thing. debt cancellation is another. stick around, guys. we ll switch from dead and madness in our own country to violence overseas. mayhem in the overnight in mumbai, a series of coordinated and deadly terror attacks rocking india s financial capital, and the strings go straight back to afghanistan and pakistan. that s coming up. [ male announcer ] at nissan, we test the altima s durability
with qe 3, yesterday at this time we were talking about the futures down in the triple digit. this morning they are up above than 60 points because of what we heard yesterday, the minutes showed that there is a camp within the federal reserve that thinks if the economy continues to be so lousy, that we should actually see another form of stimulus through qe 3. now that immediately made oil prices jump several dollars. it made the futures pick up and stock markets picture up. chuck, there s going to be a lot riding on what he has to say today. very fast on the deal on the debt, everybody believes there is going to be a deal but is there a bad deal versus good deal or simply raising the ceiling is enough? they were talking about it that you can expect the deelt will be smaller than the $4 trillion number, at least that s what the market wants to see and they prefer to see the cuts come in the forward years not in the backward years. my guess is you ll probably see
bill: here s breaking news from the hill, now. on the economy. the chairman of the federal reserve telling lawmakers that more stimulus might be needed for the u.s. economy. and, he s ready to provide just that, if necessary. that is ben bernanke there. i want to bring in cheryl casone, who has been watching the hearing. good morning to you. good morning. bill: stimulus of what kind? the wall street guys really like qe-2 and they think they ll get qe-3. bill: qe is quantitative easing, where the treasury prints money, basically. they go out and buy treasuries, buy more treasuries, and that is what they have been doing, with quantitative easing and and theed at the end of the month of june, and here s the quote from the ben bernanke and this is his prepared remarks, that he submitted, once it hit
dollars. qe-1, qe-2, they did this instead of writing down the debt at the time and restructuring the debt at the time. instead they gave the banks and household debt of this country to the american government. so we find ourselves at this precipice. at the same time there s still talk and i said to play a sound bite that they might want to do more money printing qe-3, even as housing, jobs and the debt problems have not been helped by those activities. take a listen to the fed chairman. the possibility remains that the recent economic weakness may prove more persistent than expected and deflationary reemerge, implying a need for additional policy support. prudent planning requires we evaluate the efficacy of these for deploying additional stimulus if conditions warrant. why what is he thinking, in your view? well, he s just expressing what he s believed in. he ace written about, he s talked for so many years, that the fool for the fed and the