Quick top Global Business stories of the morning. Mario draghi said he wants to raise inflation as fast as he can. It looks like he has some serious work to do. Here he is at a News Conference in frankfurt. Latest projections indicate lower inflation. Accompanied by weaker geo do to do the growth and subdued economics. The ecb cut his forecast for both inflation and gdp growth through 2016. Draghi says the central bank will gauge the need for further stimulus at the start of next year. Russias president Vladimir Putin took aim at the u. S. And European Union today in his annual state of the nation address he says both impose economic sanctions on russia anyway no matter what happened in ukraine. He said their goal is simply to hurt the russian economy. They may have to change the old , posting its 10th straight quarterly loss thanks to falling sales. Sears lost 548 million in the third quarter. The ceo eddie lambert, hedge funds are you near, has been selling and spinning off assets to raise cash and it is still not working for this company. And in pro basketball, sorry to say, it turns out the philadelphia 76ers cant even win at losing. So they probably could not be happier. The team missed out on tying an nba record for consecutive losses. They lost 17 straight games 8577 beating minnesota last night. That leaves the 2009 new jersey nicks with a record for the 018. Start to a season you know im a fan of the teams president scott oneill. Scott, if youre watching, sorry, brother. I said, nice to see something in the w column for a change. He responds, woohoo. Hold on, is that on the record . Why not gekko he is happy they won a game. You cannot deny the fact they lost 17. Scott, congratulations on the win. Congratulations, brother. We have another winner, this one the champion of the wildest running race ever held. Ready for this . The beer mile. Beer, run one quarter mile, then do it again. Four laps, four beers. The winner in austin, texas, canadas corey gallagher. Just a hair over five minutes. Put him present. That is about three seconds slower than the unofficial world record. I want to be on his mail route. He is a post route. Hopefully, he is sober when delivering it. What could turn our comfortable world of rising stock prices, accelerating gdp growth . Cheap financing, low inflation coming to a bouldering boiling cauldron of chaos . The markets remain replete with risk. Who better to pinpoint them that no man they call dr. Doom . Nouriel roubini has made a list and calls it five series economic dangers for 2015 and beyond. As you can see, he is here today along with our guest host for was aur, lee sachs who top adviser to Timothy Geithner the Treasury Department and now runs Alliance Partners which originates loans for Community Banks and it turns out, stephanie, this is something of a reunion party. They worked together in the clinton the administration, which i did not know. Did you ever get lunch together . We did. I like that. Eric and i dont even get lunch together. But we are to spend two hours together before noon. Lets start with the list. I want to itemize why not get miserable before christmas . Going to itemize the five risks you put on us. Eurozone becomes a destabilizing force. The risk of an implosion of abenomics. Chinas tricky balancing act. Two political risks are building. Shock tog dollar, a the global system. Given that we heard from mario draghi early this morning, it makes sense i think to start with europe. Explain. Europe is only one shock away from deflation, recession. The ecb shouldve done connotative easing a year ago. And even now after the inflation and growth forecast, there doing nothing. [indiscernible] is it too late . Today,heir own forecast they have set for next year, theyre not [indiscernible] those forecasts were made a month ago. You have worked in the Treasury Department. United states welcome and not in recent memory, had to confront deflationary front like that which are is bracing. Facing. Expect to people what it means to be in a deflationary spiral. Well, in the United States, were not really concerned about a deflationary spiral. I think the fed has done in a summit job keeping us out of that done an excellent job in keeping us out of that. Europeans do have to be concerned about this. People are concerned about deflation, it has implications for spending both for investing people put things off because cheaper. The price level falls. Borrowing costs are higher. It is another force why what mario draghi pull the trigger . Council,bers of the the head of the bundesbank and others are resisting it but the ideas to get a green light from berlin. Berlin decides they can go ahead with qe. I think it will, junior, february the latest. The signal today where that had discussion within the council, today, to do qe, how will they do it . What are the criteria . It is a done deal, just a question of time. Are they going to turn on the firehose and try to keep the house from burning down . They will do qe by two nora february next year but it will be too little, too late. By nextwill do qe january, february next year but it will be too little, too late. Qe worked in the u. S. And u. K. Because you had monetary stimulus and backloaded fiscal consolidation. In europe, it is frontloaded. Because japan the first round of abenomics that was fiscal stimulus. This load at only came when they started doing the physical tax increase this year. You need to have fiscal stimulus. Monetary is not enough. On both counts, eurozone will come too little, too late. Stay on japan. Your number to another list, you think theres a risk of implosion of abenomics . Not in the short run. As long as theyre buying 70 of the bonds. They can sell the debt for two or three years. The third aero structural reform for potential growth is too little compared to what they should be doing. The second became a fiscal drag this year. Tax for next year. At some point, even quantitative easing only affects the currency. Weaker yen and pfizer currency war were everyone in asia from issues a currency war were everyone is affected. Nobody wants to have their a currency appreciate to the ye the impact of then. Yen will be diminished. The pressure goes on the dollar. Eventually, even the fed might decide to start hiking rates more slowly because too much of a strong dollar [indiscernible] one of the things called on. Lee, weigh in. I was struck by your comments on the dollar in relationship to other currencies. When Nouriel Roubini and i were together, feels like 100 years ago back in the 1990s, the day russia defaulted back in 1998, we worked together on some of andasian financial crisis things like that. One of the challenges that the world faced back then was as a result of the fact so many countries and companies outside the United States had borrowed and dollars to take advantage of lower interest rates. With the dollar started to appreciate, it became much harder to those countries and those companies to pay back and to service those debts. We got into a downward spiral. Think wextent do you are exposed to the dynamic today and if we are, are there specific countries that you would be more concerned about . And people have started to get by the situation today act of the 1990s when the financial crisis spread to russia and other countries. I think there are some similarities because Many Companies, many banks, even governments in some emerging markets have borrowed a lot in foreign currency and now their currency is weakening. Therefore, the ballots she reflects the real Balance Sheet reflects that. First, most countries have Flexible Exchange rates. Secondly, there are less currency mismatches. There is less third of all, a war chest of reserves they can use as a buffer. More liquid, so in some cases like in russia and some emerging markets, yes, yes some individual Financial Institutions and corporate set will go belly up and have to either default or the structure will be built out, like in russia, but i dont think would be a generalized crisis in the emerging market. One segment is dangerous, Mining Company in well at sporting and commodity exporting countries. Exporting and commodity exporting countries. Lets talk about some of the geopolitical risks. Were familiar with what has taken place in the past year, but Vladimir Putin speaking russia today, talked about the need im interpreting slightly the need for russia to behave the way it is behaving because it has to act like a sovereign nation and has to remain a people. If it did not act, if russia did not annex the crimea and undertake the policy it is conducting in an area of eastern ukraine, the country would dissolve. If that is the kind of attitude that putin is taking in the face of sanctions and the declining oil price, what does that tell you about 2015 . Sanctionsople believe and Lower Oil Prices will moderate putin and make it more conciliatory towards europe and the west. It didnt sound like it this morning. I think will become more excessive. Do you disagree . No, i dont. Based on his comments this morning, he is not showing any signs of that. How much of that is posturing . Or how difficult is it to tell . We dont know for sure. [indiscernible] if the recession becomes more severe, at some point they cannot blame it on the west. More becomes more he eroded, we dont know. It looks aggressive. We need to take a quick break. We will be back with Nouriel Roubini and lee sachs. We will be speaking about the outlook to the u. S. Economy. Talks plus, what are liberals progressive sang such terrible things that we will look at president obamas latest appointee from wall street. Welcome back. We are back with Nouriel Roubini and lee sachs. Take a look at the state of the u. S. Economy. We went from global to local. The with the economy is doing better than other advanced economies. The labor market is improving. Ares a the downside of u. S. External and external. Lower its base station, lower growth. As some point the fed will decide the commendation of lower Global Growth and stronger dollar might imply [indiscernible] i agree. Most of what is going on in the u. S. Is positive. We do have exposure. Obviously, we cant be the only engine of growth in the world. We talked about what is going on in japan, china, all the other list of five plus things in nouriels list of things we should be afraid of. Itancer only impact us can certainly impact us and we can sustain the Global Economy just on our own, but having said that, there are some nice tailwinds. Employment has been heading in the right direction and seems to be continuing in that direction. The tax cut effect of Lower Oil Prices in terms of helping consumption is all quite positive for us. How does the tax could affect, Lower Oil Prices versus the drop in production, the loss of jobs that comes with it . [indiscernible] growth, the fed might want to start more slowly. This money is going into asset inflation and at risk of a bubble being created. Markets are underestimating how much the fed is starting to get concerned about financial market. The fed might start sooner by the middle of the year in spite of lowinflation because theyre worried now about financial stability. If the fed were staying lower for longer because oil is cheap, in theory, that doesnt sound like such a bad thing. If you believe staying lower for longer just increases the level of risk in Financial Markets, then it is something to be worried about. The fed has such a terrible track record calling bubbles, though. Is it their job to . Then why do they do it . Good point. Financial stability is the responsibility of every bank. I think everyone has a terrible track record protecting bubbles, except for Nouriel Roubini. Although they would not say it is their job to predict bubbles, i think theyve done an excellent job in helping manage the bubbles when they do. Do you think they have . When the bubbles burst, the fed aggressively uses with conventional policies. The Collateral Damage has been dampened. In the past, the fed was never reacting when the bubbles were forming. The debate is not whether you do something but whether youre using Monetary Policy the fed is still saying [indiscernible] why, because so much of that is happening outside the Banking System . Part of it. There are ways of essentially avoiding this kind of regulations. If it is not effective, then you have a dilemma. If you exit slowly, you will create [indiscernible] that is a real dilemma of the fed weather than i agree with that. His point on macro prudential approach that the fed and others have been talking about, that requires a certain precedents in terms of what the bubbles are. Macroer for you to use Financial Regulation to try and avoid bubbles, you have to have some sense of what those bubbles are. And no one has perfect judgment on that. We have a Financial System today that even if we do have bubbles, that will happen. It has throughout history. The system is in a much stronger position today to handle that. 5, six yearsay, 4, ago. The Banking System is much better capitalized. Theres much more liquidity in the system. The interconnections between Financial Institutions are much more under control than they were say 5, 6, 7 years ago. Yes, there will be bubbles. Yes, they will burst. Always great to see you. The one and only Nouriel Roubini and lee sachs, of course, will be with us for the hour. Nouriel roubini, thank you for joining us. Back in two minutes. Elizabeth ward leads the charge. Her target, when a president obamas appointees. We will tell you why. It is Market Makers. Imf schatzker. I am stephanie ruhle. Enough is enough, that is what Elizabeth Warren and others are saying about president obamas string of government nominees from wall street. So theyre taking on his latest pick, Antonio Weiss is been nominated for a top Treasury Department overseeing domestic finance. With this is lee sachs who worked with Timothy Geithner and previously served in the Treasury Department in the clinton. Is there a point to be made about the revolving door between washington and wall street . We always have to Pay Attention to the socalled revolving door, but i think but why . Because of the risk of regulatory there is always that risk, but one of the most important things when you are making policy, whether it is regulatory policy were others, you need to have a diverse set of views around the table. You need to have people who have finance backgrounds. You need to have academics. You need to have people who have served in government. The issue now, is it wall streetheavy . It is hard to see. If you see who is sitting around the table, you have talked about the committee of regulators that was formed through the , if younks legislation look at who is around that table now and theyre all excellent, but they all have either academic backgrounds or government backgrounds. For the most part. Actually, the thing that is missing today is someone with finance or markets background. For example, it took months and months for the regulatory body to agree on the definition of market making. Had there been a person who actually had been in those markets, who had been a market maker, maybe that could have been resolved far sooner and dotfrank couldve and implement it. How about thinking about that . I think that is probably right. Although, look, anytime you get 8, 10, 14 people around the table, each of whom have their agencies, their own priorities, it is going to take time for them to come to an agreement on Something Like that. But it is in poor and at least one person around that table but it is important to at least have one person around the table that has a background. The overrepresentation of wall street banks in senior government positions since a bad message and tells people that one and only one point of view will dominate Economic Policymaking. I have tremendous respect for senator warren and what she stands for. I come at this from a mainstream perspective. Working with about 200 Community Banks around the country. Our business has been set up to help them compete with the larger Financial Institutions. Quote saysuote would be right if everyone around the table were from wall street. He would not want that. Just like you would know when everyone around the table to be an academic or lawyer or what have you. Today, if you go around each of these agencies, at the fed these people are terrific and i think they do a good job. At the fed, yet janet yellen, stan fisher, dan trudeau, all of whom are brilliant academics, economists. Dan has a human is back on in regulation. If you go to the control of the currency, the regulator of the big banks, you have someone there who i believe was a state they regulator state Bank Regulator before coming to washington. Elizabeth warrens creation that sounds dangerous. I hear what youre saying and im saying, right on. Elizabeth born has a much bigger megaphone than you do. I mom is sitting at home and she hears Elizabeth Warren. When she hears a quote, the overrepresentation of wall street, only she