Bernanke’s Been Outstanding: NYU Stern Dean Henry

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Dec. 19 (Bloomberg) -- Peter Henry, dean at NYU Stern School and Michael Hanson, senior economist at Bank of America Merrill Lynch, evaluate the tenure of Ben Bernanke as Federal Reserve Chairman on Bloomberg Television’s “Market Makers.”

How do you rate ben bernanke off the tape or yesterday and then the view forward?

Where does he stand?

I think ben bernanke has done an outstanding job.

He came in under great financial uncertainty.

He used financial policy to great effect.

There has been a clear transition for the next fed chair, and ben bernanke has taken on tapering.

He has made it clear that the policy is going to continue.

There is the macro view.

Michael hansen, bring it down to the micro view.

This is the dilemma that chairman yellen will have as we go back and forth, good and bad days.

That's right.

The reason the fed tapered as they acknowledge that given what they were looking for in the labor market, it was good enough to get them to start moving.

There is a lot of -- we have had some wobbles in the housing market in particular.

Much of that is due to interest rates.

As we go forward, the rates will be rising.

Michael, you speak to investors every day.

We love taper talk.

How much do investors actually care?

On the one hand, the markets are giving it a lot of intention -- a lot of attention.

We need more clarity about what the fed will do -- what the fed will do going forward.

They got that from ben bernanke yesterday.

Arco when you look at this cautious view that was correct from bank of america, merrill lynch, have you brought up your view recently?

Is there more optimism at your shop?

We have not been low -- we have not been below consensus for the last couple of years.

For next year we are thinking with the smaller fiscal drag, with some signs of some of the tailwinds with the economy picking up, including housing, we are a bit more optimistic.

We expect 2.6% next year in growth versus 1.7% this year.

We know how much quantitative easing has helped the markets.

How about america?

How about regular people out there?

What has he done for them?

You have to remember if we had not had quantitative easing, there would have been more evident effect on the labor market.

The key question going forward is, will we start to see investment pick up, private investment on the part of firms?

That will be the key driving forward.

We have e call hansen, 35,000 feet, bank of america.

Are you ok?

What is the irish phrase for gesundheit?

I don't know.


Your view is new york university buying everything south and north of washington square.

What do you observe in manhattan that you can bring to the american economy?

Eggs are getting better, aren't they?

Is in port and that we have a tale of two economies right now.

-- it is important that we have a tale of two economies right now.

Our mba's continue to get jobs easily.

Are you up to $70,000 a year in tuition -- are you up to 70,000 a year in tuition?

About $50,000 a year for mba's. how does that compare to other mba's? we are right around the median.

Columbia journalism school -- how much do you think that is?

A lot.

60 grand.

Could you have gotten your phd in economics if you are shelling out 50 grand a year?

That depends on the opportunity cost.

You said that like an economist.

Is your show, i'm sorry.

I am so thrilled that you are here.

I asked tom if he would hold my hand the whole show today and he said no.

Michael, the fact that there is positive momentum, that there is real growth, is that enough to belong in 2014? i think there is a lot more upside and optimism and inventor -- investor sentiment that there has been.

You see an emphasis on the headwinds holding back growth, at now the tail wind is picking up.

We are optimistic on the stock market this year going forward.

Michael, your firm has led the way out of double-digit housing recovery.

You have some smart detailed notes.

How much does housing go up next year?

Is it a single-digit world, or with taper can we get some more enthusiasm in the market?

Arco obviously we want to keep an i on how recess the housing market is.

That is the question here.

We had some strong housing numbers.

If 15% increase, looking for slower increase.

We are still going to add a good point for in gdp -- a good .4 gdp.

Do you think we will continue to taper the first quarter of next year?

I think the fed will follow a data-driven policy.

I think the really important thing that we have learned in the last few months is that we are going to get a continuity policy, and we have a new leader of the fed that will continue to be data-driven.

What do you think, michael?

I think we learned yesterday that the fed is starting to acknowledge that inflation is persistently lower than they have been looking for, and that is starting to become a concern.

There is this scenario, the risk that the taper takes a pause at some point early next year because the inflation numbers will come in softer at times.

Congratulations, michael, on

This text has been automatically generated. It may not be 100% accurate.


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