BARTIROMO: DO WE NEED A SECOND STIMULUS PACKAGE?

GREENSPAN: I DON'T WANT TO COMMENT ON THAT.I DON'T THINK THAT THAT ADDRESSES THE BROADER ISSUE.WHETHER WE DO OR WE DON'T IS A SHORT-TERM QUESTION, AND I DON'T THINK IT HAS LONG-TERM CARRY.AND THEN OF COURSE WE'VE GOT OUR BUDGET DEFICIT, WHICH IS CREATING REAL CONCERNS IN THE MARKETPLACE.

BARTIROMO: BUT JUST TO BE CLEAR AS WE WRAP UP HERE, YOU DON'T THINK THAT THE FED SHOULD BE GIVEN MORE POWER IN TERMS OF OVERSEEING THE INVESTMENT BANKS?

GREENSPAN: I THINK -- WELL, THE INVESTMENT BANKS ARE A DIFFEREN ISSUE.INVESTMENT BANKS AND COMMERCIAL BANKS ARE GRADUALLY AND INCREASINGLY MORPHING INTO THE SAME SORT OF VEHICLE.AND I'VE NEVER BEEN MUCH CONCERNED ABOUT THE FEDERAL RESERVE LENDING TO INVESTMENT BANKS. WHAT I AM CONCERNED ABOUT IS BASICALLY THE FED BEING GIVEN THE ROLE TO OVERSEE THE FINANCIAL STABILITY SYSTEM. I DON'T THINK ANYONE CAN DO THAT, AND I'M MOST WORRIED THAT WERE THE FED TO TAKE THAT JOB ON AND FAIL, AS EVERYONE ELSE HAS AND WILL, YOU CANNOT ANTICIPATE THE FUTURE. I THINK IT UNDERMINES THE CREDIBILITY OF THE CENTRAL BANKING SYSTEM.

BARTIROMO: ALL RIGHT.WE WILL LEAVE IT THERE, GENTLEMEN, THANK YOU FOR BEING ON THE PROGRAM.DR. GREENSPAN.PAUL McCULLEY.WE APPRECIATE YOUR TIME.

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