LIZ: JUST AS PRESIDENT TRUMP IS
TOUTING THE STRONG ECONOMY IN
THE BOOMING MARKETS EVER SINCE
HE TOOK OFFICE, ALAN GREENSPAN,
THE FORMER FEDERAL RESERVE
CHIEF TODAY, THE SAME MAN WHO
COINED THE PHRASE IRRATIONAL
EXUBERANCE HAD CHOICE WORDS FOR
MARKET ENTHUSIASTS AND COULD BE
THE PRECIOUS MARKET RALLY, AT
>> WE SHOULD POINT AT.
WHERE IS THE MARKET TRADING
NOW.
LIZ: RECOVERED NICELY.
>> THERE WAS A POINT TODAY IT
WAS UP 150 POINTS WHERE IT WAS
RIGHT AT 2:00 WHEN THE FED CAME
OUT AND SAID IT WASN'T CHANGING
INTEREST RATES, THE MARKETS
WENT UP, DOWN, UP, STABILIZED
AND AT ABOUT 2:20, LOOK AT THE
TAPE.
THERE WAS A PUKE, AS WE CALL
IT.
LIZ: IT WAS NOT!
>> IT WAS A PUKE.
IT WENT DOWN AND WENT INTO
NEGATIVE TERRITORY.
WE LOOK AT ONE THING, I CALLED
UP A COUPLE TRADERS, THEY'RE
NOT CHANGING RATES AND POINTED
TO THE INTERVIEW THAT ALAN
GREENSPAN, THE FORMER FED
MARKET.
LIZ: WHERE DID HE GIVE THE
SPEECH?
>> ON BLOOMBERG, I TRIED TO NOT
SAY THAT.
[ LAUGHTER ]
>> CREDIT WHERE CREDIT IS DUE.
>> OUR FRIENDS OVER THERE.
LIZ: WE WOULD BE MAD IF THEY
>> HE SAID THIS, THERE ARE TWO
BUBBLES, STOCK MARKET BUBBLE
AND BOND MARKET BUBBLE AND WENT
TOO MANY SPENDING PRIORITIES.
BASICALLY SAID WE'RE GOING TO
HAVE A MARKET CRASH AND SAID
IT'S GOING TO BE LED BY HIGHER
INTEREST RATES.
WHEN PEOPLE REALIZE THAT THESE
HIGHER INTEREST RATES,
THEREFORE, BASICALLY --
LIZ: THIS, FROM THE GUY WHO
MISSED THE REAL ESTATE BUBBLE.
ONE OF THE GREAT SAGES, GREAT
ECONOMIC GROWTH, THE MASTROW OF
THE MARKETS, 1996 HE CALLED THE
MARKETS IRRATIONAL EXUBERANCE.
LIZ: BEFORE THE DOT COM BUBBLE.
>> IT WAS FOUR YEARS BEFORE.
HE WAS A LITTLE EARLY ON THAT.
THE BIG PROBLEM I THINK HE HAD
IS THAT HE SET THE STAGE
THE FINANCIAL COLLAPSE, AND
WHEN IT WAS ACTUALLY HAPPENING,
HE HAD NO IDEA.
HE WOULD SUPPORT THE HOUSING
MARKET SAYING THE HIGH HOUSING
PRICES IN 2004, 2005, 2006
BEFORE IT STARTED TO BLOW, THAT
IT WAS OKAY.
TRUMP'S ECONOMIC POLICIES AND
HIS STOCK MARKET SAYING IT'S A
BUBBLE THAT'S GOING TO BREAK,
WE DID PUT IN A CALL TO THE
I WILL SAY THIS ABOUT
WHERE THE NEAREST CHINESE
RESTAURANT IS.
HE WAS WRONG ABOUT SOMETHING
THAT LITERALLY DESTROYED THE
ECONOMY.
LIZ: HE MIGHT BE RIGHT ABOUT
THE MARKETS BUT THAT'S OKAY
BECAUSE WE'VE SEEN THE MARKETS
RUN UP AND WE WARN YOU ON THE
SHOW, IS HE TRYING TO BE
RELEVANT BY MAKING THIS
PREDICTION?
>> WELL, LISTEN, THEY CALLED
HIM ON, BUT YEAH, I WANT TO
MAKE ONE POINT.
A GUY I DON'T AGREE WITH A LOT,
BARRY RITHOLTZ, RUNS A MONEY
MANAGEMENT FIRM, AND BARRY
WROTE A COLUMN THEY WHOLE
HEARTEDLY AGREE WITH.
BARRY POINTED THIS OUT, IT WAS
PEANUTS SCARED AND TO THE SIZE
OF OUR ECONOMY.
PRESIDENT OBAMA'S STIMULUS
PACKAGE TAKE THE CORPORATE RATE
DOWN FROM 35 TO 21 IS TRILLIONS
UPON TRILLIONS.
IT'S A HUGE STIMULUS PACKAGE,
IT'S HARD TO FIGHT THAT.
THEY JUST DON'T SIT ON, IT GIVE
BONUSES.
THEY'RE GOING ESSENTIALLY DO
WITH THIS IS GOOD FOR THE
ECONOMY, AND LIZ, I'M TELLING
YOU IT'S MUCH BIGGER THAN WHAT
PRESIDENT OBAMA DID.
BARRY WROTE THAT, PUT THAT IN
CONTEXT.
LIZ: BUT THE REPUBLICANS FOUGHT
OBAMA ON THIS.
THERE WAS NO TALK ABOUT IT,
THAT TYPE OF SPENDING.
>> THAT TYPE OF SPENDING,
KINSIAN STIMULUS DOESN'T WORK.
THEY CONTROLLED BOTH HOUSES OF
CONGRESS, TOO.
THEY COULD HAVE DONE WHAT TRUMP
DID.
YOU NOTICE I DIDN'T CUSS ONCE
WITH SOAP LAST NIGHT.
>> I GET IT.
AND THE REACTION IS THAT SHIRT?
>> YOU DON'T LIKE THE SHIRT?