>> from bloomberg world headquarters in new york, i am mark crumpton. this is a special edition of intersection" the of business and economics with a main street perspective. in a few minutes, yahoo! ceo marissa mayer is expected to alibaba,e day after the chinese online marketplace, partly owned by yahoo!, filed for an initial public offering in the united states. the deal is expected to become the largest u.s. ipo ever. it also means a massive cash

infusion for yahoo!. cory johnson joins me from san francisco. the ali baba ipo -- yahoo! is selling 208 million shares, or 40%. that could mean more than $10 million for yahoo!, more than double the amount of cash -- $10 billion for yahoo!, more than double the amount of the cash they have on hand. what will the cash do for yahoo!? >> the question is where will they put it to work, look for an acquisition, buy back shares? what has always been the question for yahoo! is what businesses will they go after in the future and will they do with the requisitions or build their own? >> cents marissa mayer took over in 2012, it has acquired 40 companies. has the strategy paid off? >> there have not been big acquisitions. that is not necessarily a bad

thing. acquisitionsy almost never work. i do not think they should be faulted. had a lot ofas technological acquisitions and minor content deals. traffic,er deal added perhaps not high revenue traffic, but it at least gives the more inventory. fundamentally, the performance in the stock, it might be intruded -- contributed entirely to ali baba, and the notion that they will monetize that. as the ali baba story is setting up to go away, marissa mayer nice to take control of the narrative of what yahoo! is. >> speaking of controlling the narrative, what about advertising -- is that yahoo!'s biggest challenge? >> and their greatest opportunity. that is what the business is built around. the ability to draw big markers -- one of the biggest changes for yahoo!'s business has been

google's adoption of ad platforms that added revenues and it was the chief differentiator -- google was not drawing the big marketing firms. yahoo! was able to get them. that is no longer the case. they will have to make a compelling case they have the media people want to consume online when the business is not focused on search and when people move away from the yahoo! homepage as a default page. further, people moving away from yahoo! mail. it is a service that has not grown. people are moving away altogether. >> speaking of marissa mayer, she is coming up on her second anniversary at the helm of yahoo!, and she is joining the stage right now at tech crunch. what do people want to hear from her? conferencecrunch

will want to your new initiatives. the direction of yahoo! has always been the question. somebody will say what is yahoo!? because that is the question everybody has been asking. >> thank you. cory johnson. mayer with marissa michael arrington from here in new york on "bottom line." >> given how busy you are, it is great that you always make time for that. >> i love the techcrunch community. it is fun to see how we're going to bring new technology to market. it is rate. >> let's talk about yahoo!. can you tell me what yahoo! is? i have done this with previous ceos, but it seems like you are branching out in different areas and i am confused about what your mission statement is today. >> on a mission level, we want to be the world's digital daily

habit. there are three core areas -- search, help people find what they're looking for. now -- all of our communications products, -- mail, our committee kaisha's product, -- and thentions products the digital magazine, bringing content to bear. they can involve video and all sorts of formats. these are things like sports, news, weather, finance. >> if i am asking you if you're a tech or media company is the answer both? >> i have scolded yahoo! and people that have asked me that because over the years in silicon valley, it became yahoo!'s version of navelgazing. in short, it does not matter. what matters is that we build products that people love, that they use every day, that are

beautiful, inspiring, use technology in new ways and media in new ways. that is fundamentally the most important thing. we could debate the label, but i am not sure that really matters. we need to be something that is relevant and useful to people in those daily habits. >> let's talk about the digital magazine stuff, and with that you include video and new video content. you are creating netflix-style video content. talk about that. >> we wanted to do some experimentation. yahoo! has been a leader in video content to support the vertical, finance, news, sports, etc., but also doing original series. we had some success shortly before i joined in the form of a sitcom called "burning love," that made the leap from digital onto television and was nominated for an emmy, etc. we do not want to do a lot with

the early experiment, but we found two series we were excited about. trek-stylestar parody romantic comedy that we are excited about, and there is a great producer who is going to bring a series to life called ahe sin city saints," fictitious nba expansion team said in las vegas, a behind the scenes look at that. >> doesn't have a racist owner? -- does it have a racist owner? [laughter] >> they might try to weave that into the plot. >> it was not a serious question. what does it cost to make a series, one of these shows, tens of millions of dollars, less? is the videous

content budget has remained year, but it is a matter of using them in a different way. now we are doing fewer things that we think are bigger and have a larger chance of success. the short content we do to support vertical, in the past they have been branded. last year we produced 86 different series, none of them you ever heard about, because it was a failed branding exercise like on the day of the twitter ipo, there was a show called "beat the street, it was phenomenal, and the yahoo! finance reporters were killing us, said one with live coverage of the twitter ipo. i turn to the team and i said if this chairman does not know that the show is called "beat the

street," nobody does. i said let's have content and set the brand as yahoo! finance. rather than having 86 different series, have a series that has original content aligned with each of the different vertical digital magazines, and then also on the video front we're doing a few things with original series, and something really exciting with livenation. day weg july 1, every will do a line, stream concert, and sometimes it'll be jvm madison square garden, and other times it will be things that are -- jay-z at madison square garden, and other things that will be more up-and-coming. >> will you have a channel on apple tv? >> we have yahoo! screen that has harder content and original content, and we have implemented and into rope who -- roku

apple tv. >> ok. i felt like i went to easy on you there. do you feel like you have cut all of the dead weight from yahoo! that was there when you arrived two years ago? overall the company is executing much better and performing in a much stronger way. actually, the most surprising part for me was how made tremendously good people were were, and how eager they to get back at building great products and bringing those services to market, and while there was, you know, a lot of political behavior, misguided behavior, in some of the leadership, the most frequent -- it was funny. one of my first days in the cafeteria i was standing in line, and a person said "is it time to go? -- it was kindt

of aggressive, and i said please do not go, i just got there. and said wetood me, had been sitting here through hostile takeovers, is it time to run, actually do stuff? is it time to go into the stuff we want to do? >> what did you say? go, said please, absolutely. i have always had the philosophy job to is management's play defense, the team's job to play offense. it is my job to get stuff out of the way, cut out the distractions and get a clear path. by all means, run. i will play defense. run the offense. overall i was excited to unleash that energy, and there was so much energy, so

many ideas. we have run a couple of different programs that have people bringing ideas such as how to cut bureaucracy, useless things that jam you up. we have literally had thousands of ideas that have taken action on more than 1000 of them. it was funny, when i came in people would say you have to fix 1000 things, which is daunting, and in our first year we got 1000 ideas from the company and actually did them. there is a lot less process, a lot less bureaucracy and we pride ourselves on being the world's largest startup, and on the project site we have various challenges like what ideas do people have that can move the dial, and we have hundreds of ideas -- some small, some big, and it has been amazing to tap into that energy. overall, we have the company to execute better. we are executing much more efficiently. we also have clearer goals,

alignment, and understanding of what does a good job look like? really getting the company calibrated on what does success look like, what does it look like to have a big-stretch goal and actually hit it. >> there was an "wall street journal" article saying yahoo! is worth nothing if you take out japan and alibaba. how do you respond? >> they have seen some different cost analysis, but i tend to be very optimistic, and yes, i do think there is a lot of potential in the core of yahoo! and it is under-valued. say that.ut you would are there actual technical issues with the analysis, they have not taken into account taxes and things like that? >> yes, but that is really for investors to wade through the information, so i do not want to comment on the specifics, but

yes, there are certain things you would see and you might say that was taken into account or not taken into account. i do think we have created value, certainly alibaba has created value, as has yahoo! japan. we are grateful for our investments and partnerships that have led to that. i do think we created value in the core of yahoo!. our products function much better. we have generated a lot of traffic growth and user growth over the time that i have been there. >> when is your anniversary? >> they will be two years in july. >> ok. speaking of alibaba, so, you are selling 40% of your stake in their ipo, is that correct? >> i think approximately. about just that 40% is $10 billion to be expected. some people have said that. >> the f1 was filed yesterday,

, so im in a quiet period cannot speak about the speculation. correct i cannot speak -- >> you cannot pick about it at all. >> i cannot. >> what will you do with the $10 billion> [laughter] if you cannot speak specifically, hypothetically, if you're to get it and billion dollar windfall soon, what kind of thing would you spend that on? [laughter] intend to be good stewards of capital. we have been good stewards of capital today. we had previously sold some of our stake in ali baba and down the proceeds. we have returned some to shareholders, in fact, the majority, on to shareholders, ellie mae smart investments in terms of building out talent, technology, and platforms like tumbler. i can point to what we have done historically, and also to the

fact that we know this is of critical importance to our investors, how any proceeds are handled, and the fact that we will continue to be good stewards of capital. >> it really sounds like a lawyer wrote the entire answer, but i understand you cannot say. >> a member, you are a lawyer. >> i was. [laughter] blr?ou mentioned tum -- what didyou pay lr? pay for tumb $1.1 billion? did you over-day? huge waythink it is a to create content, the platform that it offers as fundamental advantages over other things that are in market today. when we look at the response to the new mobile products that have been released -- we just released a new composition tool

that has created a lot of excitement. look at the excitement from brands because they can just express themselves in a way that is just much more free, fundamental, can really be in line with their overall brand statements. the response of the community to some of the early experimentation with that with sponsorship, something like more mblr users engage, -- share it. there are great statistics that. >> why is the mobile app not in the top 100? >> last year was the year where we begin to make our investment in mobile, we are late, behind. we made strides. app,e proud of the weather , but tumblr had

their mobile app, and last year got really good. he saw the utilization, on. we have been making good strides. there is more to do. it goes to the digital daily habit. >> yeah. >> when you look at how people are spending time on phones, and what is in the top hundred, a lot of it is communication or game space, something like 50% of the top hundred. we have a new game platform we are working on, and we obviously have communication tools we are working on, like tumblr, yahoo! mail, and we're hoping they will be the top apps. >> is getting mobile write a live or die issue for yahoo!? >> it is a critical issue. it was one of the biggest

opportunities that i saw when i came there. there were very few people working on it, when now we have hundreds of people working on it. we have made big advances. we have started to see that mobile is approximately doubling a long entry metric we have in terms of -- doubling along every metric we have. we have one of the largest mobile audiences in the world already. when i think about the opportunity -- when you think about -- it was interesting. we pulled a list of what people do on their phones, with a few key deletions, you could read the list and feel like you are describing yahoo!'s business -- mail, maps, news, share photos, pictures, games, group communication, sports -- you get the idea. so, we were in all of those areas, now it is a matter of taking the content and services that we have online and bringing

them onto the phone in every meaningful way. >> the person that runs mobile for you is adam, and my understanding is he runs everything mobile in yahoo!, and the desktop versions of those products are run by different sv p's. is that the right way to run things? >> every organization has a drawback. i remember, as i was talking wants to eric schmidt, google was arranged functionally, and he said there are some companies that go functional/divisional, divisional/functional, back-and-forth, and in the end, it does not matter. there is always a drawback. it is important to know what the drawbacks are, work around them, but not spend too much time reorganizing because you're not actually doing anything then, right? if you convince yourself you are

doing something, but it is not moving the users forward, the product forward, the business forward -- the centralization of mobile, when i got to yahoo!, mobile was everyone's hobby had everyone did a little bit of it, and it was no one's job. literally no one's job. one of my early cafeteria conversations -- i like the cafeteria. i have the best conversations there. this guy tony walked up to me on day four, and i said what you do, and he said he was a mobile engineer. i was new. i had talked to the board that i was excited about mobile and i thought it was a huge opportunity, and i said great, we have a mobile engineering team, and i said how many are there, and he said 30. i was floored. indebtedhere are more

in the team. more, and heny said, 60. a lot of the engineering vice president -- i was like comedy people do we have working on mobile engineering, and they said 100, and i said like an actual 100, or 60 rounded up to 100 to make me feel better, and they said more like 60. today we have more than 500 people that work on it. coming into the situation, it was everyone's hobby, no one's job. we knew we needed to be mobile first. the traditional habits -- search, communications, the digital magazine, but it is also mobile first because by the end of the year we will have crossover on the traffic where we have more mobile traffic than pc traffic. there is really no way -- right way to run it, and we put the team together and say this will be a two-year experiment, will

pull this together, get critical mass, higher and do talent acquisitions to fill out tremendous app developers, designers, and get good at mobile. we want to build the best mobile apps in the industry, how can we do that. we pulled together a critical focus, understand this is probably not all right way to focus it, and revisit in two year sisi ultimately how we want to run a moving forward, but it -- for theeat moving company because it gave us the impetus and the momentum we needed to get ourselves jumpstarted. >> have you ever thought to go to adamant say we do not have a top 10 mobile app, either make one, or you are fired? does that seem like a way to motivate him? >> adam is tremendous. an art to management, and you ultimately get to know what motivates people.

adam has brought so much energy and motivated his whole team incredibly. when you look at how far he has brought the team, whether is up on the award heard the news digest, which i almost did adam startedaunch, using it inside of the company, and people loved it. 11 stories getso- you the sense of completion, checks off the story that you have read. only people here have tried the news digest? out, and ithe app has been a huge runaway hit. 47% of the people that download the app start to use it every day. and it has a twist in that it is finite. it tells you when you are dead. >> is deathly out of a job when you do not have a top 10 app by the end of the year?

>> no, he has been tremendous things that he is one of the most talented executives. >> yes, but he is out of a job it is not that -- not start -- i'm just kidding. you have added features like news and search to the mail app, where we have seen more of a trend becoming slimmer and single-purpose. why are you going in the opposite direction? >> we have a lot of single-purpose apps, and we have done well with them, but one of the things that really worked for us on the pc was that people would come to yahoo! for mail or finance, and then they would find something else interesting, date, under the most successful apps was the yahoo! mail app, so we want people coming there for mail to have the same service. you can use the mail, but if you select to the left or cap the news tab, you get the news feed

the yahoo! homepage. we are building search more functionally. tore are a couple of ways get to the functionality. we want functionality to be there for fanatical core users. there are all sorts of interesting statistics coming out. the average smartphone user uses their phone for 162 minutes a and 84% of it, 86% of it is , so only 14% of spent on mobile web. once the user is in the app experience, the easiest thing for them to do is to stay in that app experience, so we want to make it more for the user spending a lot of time there. >> ok. about henry gaeta

castro. o. was your co you fire him, or he left. is your biggest mistake? >> henrique was not a fit. smart,ncredibly incredibly talented. i learned a lot from him. overall,k, you know, it was the right time for us to go our separate ways. we really wish him well. i will say -- >> he is probably doing quite well. [laughter] -- there werethat a lot of issues in the company when i got there. iere were issues there that essentially created, and was important for me to fix them. >> ok. can we switch topics away from yahoo! for a second? a visa, you are a google from

the very beginning before you came to yahoo! -- obviously, you were at a google from the very beginning before you came to yahoo!. do you think google today is evil? >> no. crack some people have said, mostly me, say -- >> some people have said, mostly me, google is evil, and it seems that they define evil so that they are not evil. you agree with me on that, right? >> no. [laughter] worked at google for a long time. i know a lot of people there. >> you do not want to see -- say bad things about them at a >> i understand their motivation, and the most amazing part about google is the consistency of the culture. i will say that i think google has done a phenomenal job being focused on the user, doing right by the user. even if that means --

>> sharing information with the government. >> taking less money, or putting off the business. i think they have succeeded in their efforts to not be evil. >> i have interviewed you many times, and i cannot throw you off. -- att throw anything at you, and you have a polished, diplomatic answer. it is annoying to me. backstage said we always go where you want to go, and i said that is funny because i never walked on the stage with an agenda. >> here is something -- i did before.you this i have moved away from yahoo! products over the years. >> we wish you have tried them again. >> i do not use any yahoo! products, except for yahoo! news. yahoo! news is getting better.

for those of us that do not use yahoo! today, what is one app or service that we should check out that mike it is again on yahoo!> -- yahoo!? ?> can i get three answers for the lightweight user that wants light commitment to see if they like what they get, try news digest. that shows you the quality of content, the quality of editorial, the beauty of the app . >> what is the news digest? iost is an app available on and coming soon to android. try that, or the weather app, to give you an idea of the quality we are trying to hit. mail is one of our best products and offers the deepest engagement. i understand that is a heavy commitment. for the user -- i think one of yahoo!'s superpowers is our ability to store data.

yahoo! mail is enormous in terms stored,uch mail we have 16 years, going on 17 years. we took flickr and we added space to everyone's account so that everyone can have a terabyte of photos, basically your entire lifetime of photos, essentially unlimited, and we're one of the few companies that has the ability to offer that kind of storage space to consumers. we actually did that project in six-to-eight weeks last year, in terms of that expansion. for users that want to try that superpower out, i would say try flickr, upload your photos, use the application, see how it goes. we're getting community engagement with new features. we added new search. the photo search has been better. i think the ability to store your photos, organize -- i think

photos make the world go round. >> switch to yahoo! mail, try flickr, get the free storage? if you want to just try it out for a few minutes to see whether or not you like where yahoo! is going, try news digest or whether. if you have a lot of data and do not know where to put it, i would say try flickr, and get a sense of what we can do with your photos, and the reliability of knowing they are backed up, that they are well-organized, search works among all those types of things. >> thank you so much. i really appreciate your time. [applause] >> thank you. [applause] >> that was yahoo! ceo marissa mayer speaking with techcrunch founder michael arrington here in new york. west" editor-at-large cory johnson is again with us from san francisco. what stuck out from you -- for

you question mark >> -- what stuck out for you? the alibaba comment. the notion that there is a tax penalty and it sounds like they have not figured that out. the chief financial officer at yahoo! has said he is trying to figure something out, has the it, butple working on they have the problem of the huge taxable gain they will be getting. it sounds like it or not they plan to figure that out, and they have not told investors, maybe for good reason. another thing that jumped out at me was the focus on mobile. free coffee throughout the headquarters. it was a promise made to them on their first anniversary. so, there is the social aspect to working at yahoo!, and there are random encounters that have been there. i can picture the scene of marissa mayer meeting this guy

and figured out he was the mobile engineer, or one of 30, or one of 60, and that they have gone from 60-to-500, that portends the change. >> cory johnson, joining us from san francisco. thank you. when "bottom line" returns in just a minute, said chairman janet yellen on capitol hill. ♪

>> it is time for today's latin america report. respol hashas -- pf.d a remaining stake in y they sold 12% through morgan and ay for more than one quarter billion dollars, realizing a pretax gain of $622 million. ford motor has suspended production in venezuela for at least the remainder of the month

due to a shortage of parts. the automaker took a $310 million charge in the first quarter for the sharp devaluation of the venezuelan bolivar. in thest before taxes first quarter more than doubled from the year before. that is your latin america report for this wednesday. saidchair janet yellen -- -- fed janet yellen says the economy is recovering but needs a dose of stimulus. peter cook has more on the first two days of testimony had no major change in her outlook. >> no major change indeed. she did not stray too far from the message the fed delivered last week. the economic outlook is improving enough to wind down the bond buying program, not yet good enough to start taking about raising interest rates at this moment in time. she told the joint economic

committee in her testimony today that after basically grinding to a halt in the first quarter because of the bad weather, the economy is starting to pick up some speed. >> with the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already underway, putting the overall economy on track for solid growth in the current quarter. >> the improvement is enough, she said, to continue the taper of the bond buying program in measured steps, confirming in her questioning that the programming could end all together in the fall, but even friday's better-than-expected jobs report did not convince janet yellen at the economy has turned enough of a corner to again consider raising interest rates at this point. >> we anticipate that even after employment and inflation are mandate-consistent levels, economic and financial conditions may, for some time,

warrant keeping the target federal funds rate below levels that the committee views as normal in the longer run. pressed byllen was committee chairman kevin brady on exactly when rate hikes might take place, but unlike in her first press conference, she declined to answer the question, basically dodging, saying the data will determine the timing and that did not totally satisfy kevin brady. >> forgive me for being skeptical. i believe we need more specifics and it clear timetable on the comprehensive exit strategy. >> he pressed her on a host of questions regarding the exit strategy. that was about the toughest moment for janet yellen, mark, the questioning from kevin brady, but otherwise, a similar question -- message to what we heard last week, a fed looking carefully at the numbers. >> thank you, peter cook. for more reaction, i'm joined

from stamford, connecticut, by michelle girard, chief u.s. economist at rbs securities. >> thank you for having me. >> chairman yellen said the recession officially ended five years ago, but the u.s. economy needs stimulus because unemployment and inflation are well short of the fed's goals. is this what investors wanted to hear? >> they wanted to make sure nothing has changed from the message the fed has been sending. employmentrong number, and a weak gdp number. most people think it will be revised into negative territory, and the question is has anything changed since the meeting given the new data, and the only thing that is clear is that the fed is sending the same signals and the views have not changed. it is hard to thread a needle between suggesting the economy is strong enough to warrant the tapering of qe, and at the same time not have anyone worry that the fed might be thinking about hiking rates.

>> the chairman noted the data showed solid growth, and that supports the case for faster expansion this year. do you see that as well, will investment and consumption get the tail when that they need? >> that is the thing. i agree with the solid second-quarter growth rate. after the miserable first quarter number, to get 3.5%, or four percent growth, which a lot of us are calling for, if you average the two quarters, it is so theout 3% at best, question is where do we go after that, i think you are talking about a 2%-to-2.5% growth rate, and consider it -- consumer spending will continue at a moderate level. some of the capital spending hopes people had at the beginning of the year were overdone. we will have better capital spending and last year, but i do not see why they will take off at a pace that we have not seen a couple of years. yellen was, chairman

asked repeatedly about a specific time when they would raise interest rates. she did not take the bait. what you read into the nonresponse? >> she learned her lesson that fed chairs should not be too specific. the fed spent a good six weeks the fomct comment in press conference rattle the market and it took him a while to get the market call back down, and the message was sent loud and clear, the views have not changed. she would not go anywhere near that. it was funny when extreme she went to to not give any kind of specifics on the timing. >> at one point, dr. yellen said the fed, in her words "is considering whether additional measures are needed to further reduce the risks associated with large, inter-connected institutions." that was about it. she did not elaborate. any thoughts on what those additional measures might be?

>> now, but what is interesting is this idea that financial stability is moving up, and clearly is on the fed's radar screen. we talk about it being the unofficial third mandate, if you will parent one-third of her speech talked about financial stability, what the fed is doing to monitor. they do not see valuations above historical norms, no bubbles. this is a continued sign that the fed is watchful, not only of economic conditions, but also financial market conditions, and they want to make sure they do not sow the seeds of future bubbles that the economies and policies of the last cycles have done. >> michelle, we have about one minute left. the fed balance sheet is nearly $4.3 billion. how could chairman yellen and her colleagues whine that down without actions being disruptive to wall street and global markets? >> they will do it so slowly --

the signal is the one not sell assets. they will rely on stopping reinvestments, or letting them run off when securities mature, and that will mean the balance sheet will not normalize until take eight will years to get the balance sheet back to its appropriate level, and that is how you do it if you do not want to disrupt financial markets. >> and, i guess it is $4.3 trillion. >> i was going to correct. [laughter] were talking about billion, this would not be a conversation. michelle girard, thank you so much. >> nice to see you. >> if you have a college loan, you might want to pay attention to today's treasury bond sale. we will tell you why next. ♪

>> college students may want to watch the result of today's 10 auction of the 10-year treasury note.

interest rates will be determined by the bond sale. janet lauren covers higher education for bloomberg no -- bloomberg news and joins us. walk us through this. >> as of last year, the rates are set to the 10-year treasury note, so for each of the three different types of federal student loans there is an add-on of two point 05%, for example, for the stafford loan. the base is 10-year stafford note, and basically congress had come up with interest rates to do not change and now they are dependent on this auction, and once a year they will know what the rate is for the upcoming school year. >> how will this affect college students? i thought the interest rates were set for the life of the loan. >> they are set for the life of the loan, but students take out a new loan every year because schools we look at the parents financial situation each year, so they get a new loan.

interest rate is set for the life of the loan, but now, every year, they will be changing. >> how bad could the increase be? >> it is 20% higher. the rates were -- .8% higher. the rates were announced today. if you borrow $10,000 and have a 10-year repayment period, you'll $50 more perut year. >> would it be possible the students would be better off taking out a private loan instead? privatepends because loans have less safeguards. for example, they might have variable interest rates. you might have a terrific rate today, but in a couple of years it might be higher. also, private loans do not have the same protections if you are struggling. for example, federal loans have income-based repayment, and you can pay a certain percentage of your discretionary income.

>> the massachusetts senator elizabeth has a proposal on the table that would tie student loan relief to the buffet rule. explain that. >> it would give student loan borrowers the opportunity to refinance their debt, just like if you had a house and you had a high interest rate and interest rates dropped. some federal loan owners have interest rates higher than 8%, and today's rate is now 4.66%. starting in july 1, you could have the opportunity of the lower rate and make your monthly payment less. >> janet lorin, this is something you follow quite a bit. you have been on "bottom line" before and we have talked about student loans. how bad is the student loan situation? we hear horror stories of students buried in debt, and they are literally hounded into 50,'s and even's iser for this debt had >> it

-- for this data. >> it is more than credit card debt, and it depends on what you take in. a few private loans, they will generally be lower. if you have taken out money for graduate school that is on top of what you have had for college. the economy is not what it was years ago when you went to college, you went to graduate school, and you pretty much assume that more education would get you a better salary. that may just not be the same today, and hopefully that will change in years to come, but you have to figure out how much you are borrowing, and is that return, especially for graduates go, going to get you a better paying job. covers education for bloomberg news. thank you so much. >> thank you for having me. >> stay with us. another check of the market movers is on the other side of the break. "bottom line" on bloomberg

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>> be sure to tune in to bloomberg tv tonight at 9:00 p.m. as we look at the next space race with an in-depth journey to the booming business of space exploration, and join us thursday morning on "in the loop, as betty liu has highlights of our exclusive interview with the 11th richest person in the world, sheldon adelson, the ceo of las vegas sands. that is tomorrow starting at 8:00 a.m. with experts throughout the day on bloomberg television. get the latest headlines on bloomberg radio, live on bloomberg television and streaming on your phone, tablet, and on bloomberg.com. that does it for this edition of "bottom line."

i am mark crumpton in new york. thank you for joining us. on the markets is next. i will see you tomorrow. >> it is 56 minutes past the hour. bloomberg tv is on the markets. i am olivia sterns. let's get you caught up on where stocks are trading right now. the s&p and the dow are in the green. the dow is up almost triple digit. the nasdaq though, selling off internetthe selloff of stocks in particular continues with big declines in names like and whole foods is a real laggard today. earlier today, while janet yellen spoke, saying that a high degree of accommodation remains warranted, she is signaling the fed will stay in the game and continue to support the economy. market -- theond treasuries in reaction to the comments from janet yellen -- we saw a widening of that yield curve. yields on longer-dated

maturities coming up a little bit, two basis points on the 30-year note, but essentially unchanged on the short end of the curve. sticking with bonds, junk bonds are looking more expensive, even compared with stocks. investors keep plowing money into the debt as they search for big returns in this era of central-bank stimulus. joining me with on whether people should keep buying, lisa brown what. in junk bonds.on what was it that janet yellen said that move the markets? >> first of all, janet yellen said she will remain accommodative. this is good for junk bonds. it keeps people in this search for yields, even if relatively speaking, the yields are unbelievably low, back near record lows, really expensive compared to stocks, and she said she is starting to see a search for yield behavior in the speculative debt, lower-greater

debt, even though she thinks stocks and housing prices are within historic norms. even the federal reserve is seen this is potentially excessive. >> an interesting move. we saw junk bonds rally, but the question is why are people spending so much money on junk bonds, and the idea is you're getting a better return because you are taking a risk to buy .elow-investment-grade debt >> is about the average yield on a 10-year treasury over the past three decades. you are not getting compensated on any historic basis. prices are high, and people are saying we understand prices are high, and this has returned 18% on average since 2008 all because of the fed. the fed is keeping its program, full speed ahead, why not stick with the debt? frankly, what else are they going to get -- reliable, risk-less, but less volatile returns?

acceptable concern about a pullback? >> very much. people are trying to short the debt in a major way and there is an alarm among hedge fund values -- managers that say there is not value it. >> will be on the market again in 30 minutes. in the meantime, "street smart" with trish regan starts right now. start now. janet yellen looking to close the day. mart starts right now. welcome to the most important hour of the session. 60 minutes left till the closing bell. we are counting down to earnings. federal