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>> i'm caution with enthusiasm. do you remember them talking about dow 36,000? we're not there yet. >> bill, are the artificial low rates pushing people in the stock market? >> the fed is playing a game that is asset bubble. you give people illusion of wealth reprising their houses higher and making the stocks go up. the houses aren't bigger than they were before. the company they invest in aren't more productive. this works to a modest degree. stocks are overpriced. maybe by 15%. greenspan, they were overpriced by 100%. bigger then. >> david: but the fact is bernanke is doing a lot more to ch...

Debt problem, which we've talked about a lot. let me go back to what david said. he may not think he's an economics guy, but i think he put his finger on a number of important problems here. one, congress is doing nothing. there are things they could do that don't necessarily cost a lot of money but would help the economy, in terms of programs to train workers, a long laundry list, and they're doing nothing. the question is also about the other problems that affect this economy, for example, the fact that workers have not had a pay rise in four years. if you don't make more money, you can't sp...

But that was driven by the bubbles. i don't want to put words in joe's mouth. i don't know if that's what stiglitz had in mind but i tlink's a story there. >> it's been sort of a weird continue yags and discontinuity with those trends which is we have inequalities there, record profits. we don't have any replacing asset bubble, right? there's nothing like the tech boom and there's nothing like housing and so this is now kind of what -- increasingly this is what recovery or the normal is in the absence of the kind of injection of an asset bubble we had in the past. >> i do thing it's important ...

steven moore and robert reich, labor secretary during the clinton administration. currently he's a professor of public policy at the university of california at berkeley and author of "aftershock, the next economy in america's future" now out in paper back. ali, what happened today? >> reporter: we had a situation where it's not just fear we were talking about. this was actual fact. we started this morning with slow bad markets out of europe. then before the markets opened we got this report from morgan stanley which talked about slow growth around the world, telling us things we alr...

central bank and the fed would have to get further involved in this economy. now, you know all week we've been talking about rick perry saying it would be treasonous for the fed to get involved. while his comments may have been misinformed it represents a view in america that fed should do no more work in stimulating this economy. so now we have investors saying we need more investment. you got the morgan stanley saying we do. and you've got a lot of people in america saying don't do it. so we're at an impasse. investors said let's get our money out of there. they put it into bonds a...