the stock market continueses i bull run, but the wider economy is still playing catch up. is it too early to celebrate america's coming reason advance? i'm ali velshi and this is "your money." the dow is up 11%. that's better than you would do in some years. those who invested since the market bottomed have taken advantage of 130% rise in the s&p 500. that's the benchmark index for retirement investments including your 401(k). then there's housing. that other leg on the stool. finally, housing bottomed out last year with home prices steadily going up largely due to historically low mortgage rates. with home values climbing again, americans have gotten back their

number one tool to help build wealth and put it it to work for them. and finally there's this boom in america's energy sector which has already started to reduce america's dependence on foreign oil and has crushed natural gas prices. industry is taking advantage of the savings to bring back manufacturing jobs for the country. i continue to maintain this energy boom could fuel an economic renaissance in america for years to come. but many of you are not buying it. not yet any way. more than half of you are afraid to get in the stock market. some of you, by the way, because of it it. son consumers are still wary and may have a point. despite 36 straight months of jobs growth, the overall economy only grew by .4% in the last quarter of 2012. why? one reason could be our broken government in washington, which still can't pass a long-term budget and prefers to govern

from one fiscal crisis to another. joining me to discuss this and more is mohammed arian, the ceo at pin kro. and christine romans welcome. good to have you all here. it's great to have you here. you warned that those forced government spending cuts, which we called the se kwquester were kboing to do damage to the economy. strangely, the stock market doesn't seem to buy into any of had. does that mean the sequester wasn't the big deal we thought it was going to be or does ha mean there's more to come? >> unfortunely, there's more to come. the issues are really important. the economy is stuck here. the stock market is there. that's why we have a mix of excitement and anxiety. how do you reconcile? it's the wedge of monetary policy. it's the wedge of an aggressive

fed. what's critical is for the assisted growth to come up to genuine growth to validate the stock market. that's why it's important to remove these head winds from washington. >> that's interesting. that could happen. or it could go the other way. the stock market could figure out, wait a second. earnings are -- prices are not high compared to where they were the last time the markets hit these records. clearly, there's some stimulus involved in pushing people into the stock market. do you think the prices are real? >> i think all prices are artificial. three months ago if i told you we had an 11% increase in the dow jones and gold would be at 1600, you would say that's inconsiste inconsistent. it's the fed. they have a printing press in the basement. >> there's that disconnect that mohammed talks about and then this disconnect about how people

feel. christine pointed out earlier to me that there are 12 or 20 million people who don't buy the argument that things are going well because they are still out of a job. talk to me about the economic disconnect. >> i noticed when you had the three legs, you had the stock market, housing and energy. those are very important legs. you didn't have jobs. and i think -- >> that's the most important leg really. >> that's the most important for everybody. not so much for mohammed, he's in the investor group. >> everybody needs an income. >> he makes it it from investing. most of us are making it from our paychecks every month. and i agree with the argument about the fed, but there's anoth another disconnect going on as well. a lot of the forces driving the stock market are not affecting people's jobs. part of what's happening, and this is another one of the disconnects that's new in the economy is increases in

productivity are not feeding into increases in wages. we have seen that since the late 19 90s. >> sometimes it's the opposite. we have increases in productivity. and you take the profit off, but the worker doesn't get the benefit. >> maybe you fire people as a result. >> and we're watching you used to see 1% or 2% of gdp and say that's kboing to mean x number of jobs. it doesn't mean that anymore. people are trying to figure out at what point do you start getting jobs. i mean, i want to be clear here. the u.s. is moving in the right direction. you have europe in a recession, a very big property market concerns in china. this week a lot of economists raised their forecasts for gdp. we talked about the fourth quarter. despite all these things and with the help of the fed, the economy is doing better. >> the problem is the decision

about whether to be in this market in some fashion or not, that means bonds or stocks is bien are y binary. it's weird and it's inconsistent. the fact is for all the inconsistencies, if you were invest invested in the stock market over the last four years, you would have made a great deal of mon money. now what do you do? >> absolutely because the fed has been your best friend. if you can get on that train, get on that train. but we talked about two things. we're not using inclusive growth. secondly, there's an income distribution issue. if you have a globalized set of skills, you're doing great in had economy. if you happen not to have that, you're struggling. >> who is supposed to fix that? >> that's where washington comes in. i think of it as the global financial crisis sent us into the icu. we recovered, we're out of the hospital. we are better than others, but we are still structurally impaired. so everybody is expecting us to

run, but we're just walking. in order to get running, we need to improve the structure of the economy. >> that's a long-term project. it's nonobvious. the thing about being in icu is it's pretty obvious things need to be done. >> stomaimulus and bailouts at ho ho moment. >> mohammed is talking about the project of the 21st century and nobody knows how to do it it. >> we are in a period where people are running and making a lot of money in housing and the stock market. they are the people who predictably who already have capital, already have money to deploy. and the vast majority of us are not able to go ahead and ride the fed. >> that speaks to the fundamental issue any investor should be asking today. it's not what can go well, but if i make a mistake, what mistake can i afford to make. the reason why they are not getting involved is because they can't afford a big mistake.

rich people can afford a mistake. they get the upside and also have self-assurance. >> that's what so many viewers have told us. i would have loved to have goen into the market. even now. but i can't afford to lose what i can't afford to lose. stay with us here. if this economy is a runner on the road to economic renaissance, it could use some cheering on from washington. that's not happening. have our leaders stopped sticking out their feet to trip up the runner? that's next on "your money." [ lisa ] my name's lisa, and chantix helped me quit. i honestly loved smoking,

and i honestly didn't think i would ever quit. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. it reduces the urge to smoke. it put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these stop taking chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. with chantix and with the support system it worked for me. [ male announcer ] ask your doctor if chantix is right for you.

with chantix and with the support system it worked for me. we still don't have a budget. we haven't had one in four years, but at least we don't have to worry about a government shutdown. this week president obama signed a continuing resolution to fund government through end of september. he will present a budget proposal a month and a half late. the end of the year fiscal cliff debacle delayed everything.

the budget cuts have been in effect for a month but the sky hasn't fallen. few of the cuts have happened yet. agencies are finding ways to deal with the bad policy that's been thrust on them. the pentagon says it it only has to furlough workers for 14 days instead of 22 days. and we have a bit of a breather before the next mini crisis hits. a fight over the debt ceiling is brewing again. that showdown season likely to hit until midsummer. there are even signs of reaching across the aisle. the president met with lawmakers of both major parties. no major breakthroughs though, but at least her talking. he's called on johnny isaacson to organize a dinner with senate republicans. this would be the second sit-down with gop senators in a matter of weeks. for just a moment here, for just a moment, it it appears washington may have stepped aside just enough to question out of the way of economic recovery. is it going to last?

david moore is a writer for "the wall street journal." these are great friends of our show. steven, am i imagining it or is washington the impediment it's been to the american recovery? >> you're on to something here. i talked to businessmen and women all the time. recently they are saying we don't always like the policies out of washington, but right now there's a benign neglect going on. at least we don't feel like a lot of bad things are coming down the pike. a lot of businesses are moving forward. you're starting to see an expansion of hiring. you saw what happened with the stock market over the last three months. a lot of the businessmen and women and workers are stay saving maybe there's a calm. whether this is a calm before the storm, i don't know. >> john, steven called it benign neglect. there's a difference between benign neglect and doing something helpful. this government has lowered expectations about what it should be doing to help the

economy. should it be doing anything at all or is this now the new normal? >> absolutely it should. benign neglect is not enough. the economy is improving despite the dysfunction and division. there are some signs of silver lining. immigration reform, something that businesses really needs to happen. there seems to be a political moment where both parties see their self-interest in passing something for the national interest. but we're going to have to see real movement on the grand bargain. it it seems unattainable, but it's not. we're going to need to see infrastructure investment. there's a role for government. government hurt this economy. with some sign their can work together, maybe we'll start to get some progress out of washington. >> john, i agree with most of what you just said. the one interesting thing, though, if you look at these two

budgets, you mentioned that for the first time in what was a wee hours passed a budget. but that's a polar opposite of the budget that the house republicans passed. so this big, you know, grand canyon divide between the two parties on these fiscal issues, that's still the number one issue. that's still pretty wide. >> it's very frustrating to see the budgets get passed. in some ways, we have skipped the real way budgeting is supposed to be done where the president puts forth his budget proposal, which he will on april 10th and everybody has to negotiate. we skip right to the voting pr it. it's not the kind of way a budget is going to happen. when they come back from vacation, the bickering will start all over again. the house and the senate, they both passed budgets but neither will be the budget that we'll end up having, if we ever have one. are we ever going to have

another budget? you said there's a hope of a grand bargain. where? >> i think with the debt ceiling pushed to summer, there's a realization that they aren't too far apart. anyone who is clinging to this illusion to have a solution, they are living in reality of divided government. it's ridiculous we haven't had a budget in four years. the house passed a bug, senate passed a budget. and two, it's a recognition, even by boehner in particular, this ul matly is going to get resolved in conference. the two parties are too polarized to get something done. we're going to get it resolved in congress. >> we have johnny isaacson on the show a lot. president obama asked him to put this dinner together. he's an ex-businessman. he knows about a lot of stuff. he definitely is one of a handful of republican senators who have been able to reach across the aisle. they liked simpson-bowles and

were able to do stuff. do you think they are going to prevail over hard liners? >> it's a stuff call, it really is. the parties are so far apart. john is right. it's interesting that the news that leaked out that the president is going to put some entitlement reforms on the table. that's a big step forward if that's true. and because that's one of the things the republicans have been holding out for. i want to make one point that i disagree on. when you started, you think these automatic cuts are a bad way to deal with the budget. number one, we have not seen armageddon. i'm not sure it's so terrible to start this process by just asking every agency of government to cut their expenditures by 4 or 5%. you said it. they are finding ways of doing this, become a little more efficient, saving money on conferences and paper costs. businesses do a that all the time. >> it's a methodology i didn't

like. it's the sledge hammer approach. i agree. we have to find ways to do it. >> i think we're going to get hurt. >> there's too much agreement going on. that's the end of the segment. it was another record-breaking week for stocks. you would not know itly by looking at the floor. gone are the thousands of traders frantically placing buy and sell orders. this is 1987. it's all high-tech now. what that means for you, next. f. a special place we go to smooth out the ripples of the day. it might be off a dock or on a boat. upstream or in the middle of nowhere. wherever it may be, casting a line in the clear, fresh waters of michigan lets us leave anything weighing us down back on shore. our perfect spot is calling. our perfect spot is pure michigan. your trip begins at michigan.org.

♪ 'cause germs don't stick on me ♪ [ female announcer ] band-aid brand has quiltvent technology with air channels to let boo boos breathe. [ giggles ] [ female announcer ] quiltvent technology, only from band-aid brand. use with neosporin first aid antibiotic. i really like your new jetta! and you want to buy one like mine because it's so safe, right? yeah... yeah... i know what you've heard -- iihs top safety pick for $159 a month -- but, i wish it was more dangerous, like a monster truck or dune buggy! you can't have the same car as me! [ male announcer ] now everyone's going to want one. let's get a jetta. [ male announcer ] volkswagen springtoberfest is here and there's no better time to get a jetta. that's the power of german engineering. right now lease one of four volkswagen models for under $200 a month. visit vwdealer.com today.

...and we inspected his brakes for free. -free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke.

things have changed in the stock market over the last 30 years or so. there are robots trading and moving the market. some estimates put their activity at 70% of all trading volume and that's got a lot of people scared.

once upon a time, a regular investor called his broker to buy shares in a company. the broker called that order into a trader on the stock exchange floor. and for that, you paid the broker a substantial commission. that was then and this is now. today floor traders are becoming a thing of the past. the majority of stock trades in the united states aren't even made by human beings. they are made by computers. and the time it takes to execute your stock trade is dramatically faster and the commissions are dramatically lower. in the 1990s investors started migrating online for trade. we had access to realtime market information and could trade in realtime. that innovation gave birth to the individual day trader. but when it comes to innovation, big-time institutional investors are leaps and bounds ahead of us. they are using superfast computers, running complex

algorith algorithms. they are trading firms that use superfast connections to take advantage of stock movements measured in fractions of a penny within fractions of a second. they do it it countless times a day. in fact, up to half of all trading volume on exchanges is now taken up by such high frequency trades. so where does ha leave the little guy? many would say at a disadvantage. some would say the little guy has always been at a disadvantage. for retail investors who stayed informsed in the stock market over the last four years they saw a gain in the s&p of 130%. disadvantage or not, that gain is all that matters to some people. i'm joined by christine romans and camilla sullivan. her film focuses on high-speed trading. here's a clip from your interview with the owner of liquid net, a so-called dark pool that allows institutional investors to trade large blocks

of securities without wild swings in prices. >> we continue to invent things faster than the regulators can understand it. and faster than we have the ability to assess the risk of it. so what happens and what has happened is that the industry makes a tremendous amount of money creating these new types of products until it blows up the world. >> wow. i didn't even know there was a movie on this. what made you think this was something you'd make a movie about? >> it's such a complex topic. a movie was the best way to bring this discussion mainstream. >> let's start by bringing it main stroom now. if you had a little time, how would you explain to my viewers the perils of this type of trade i ing. >> if you have a car that can do 200 miles an hour, should you

drive it that fast? no. this is like a freeway with no speed limits and some people have ferraris and some people have camrys. >> just to be clear, the average investor, the person watching me now cannot get that ferrari. if you're the most active day trader going, this high frequency trading can trigger a flash crash. >> these are systems that are very closely guarded by the big companies that use them. in some cases, it's brain yaks who for their final project. there was one time we profiled a kid who made the black box. he said because i'm hoping goldman sachs buys it for $10 million. look at it this way. when i first started, people used a grid chart and would look at three different or four different commodities and see the relationship between them and place trades in them. these computers do that with hundreds and thousands, a human isn't doing it.

a box is doing it. when i first started covering markets, imagine atari when we were kids. this phone, the technology has changed so much this phone has 500 million times the power of that atari. that eknology has been applied to trading. what we do that was the atari of when we were learning how to trade is now a 500 million times that complex. >> absolutely. when you look at the complexity, if you look at the price of disney in one second, there are 30,000 price changes in one second of disney stock. what's the price? >> here's my main question. we're talking to people about whether they should have been invested and whether with the traditional measure, the price to earnings ratio being lower than four years ago, whether you should still be invested. let me ask you this. is the deck stacked against? >> the deck is stacked against a day trader. those days are over. for retail investors, you have

access to firms who will manage this for you who do have the superpowers for you. but trying to do it yourself and thinking you're going to outday trade a black box, you're dreaming. >> there's been a lot of pushback. last week we did a show that told mempeople you need to be invested. there's no other game in town becaus becaused the fed pushed interest rates. this is the stuff that makes people not trust the world. >> regulators are looking at it. the market has always moved ahead of realgulators. when it was people. just when you look at the computerized trading versus hand to hand people, when people were trading we said is the deck stacked against the lone investor? small mvs or investors have always worried it's bigger than they are. >> when christine and i worked on the floor of the new york stock exchange there were 6,000

traders. were things fairer with people? and is that a silly argument? >> it's a great argument. it's easier to regulate. when they wrote a the lot of the regulations, they wrote instantaneous. now it's the speed of light and if my service half the speed of light? it's just the fact that technology has leaped from our ability to regulate. >> it's an argument about thinking you can compete with the big boys if you are an active trader. that deck is stacked against you. camilla, thank you so much. she's the writer and producer of "ghost exchange." coming up, it is a two-headed bull shark discovered by a fisherman in gulf of mexico. creepy. doesn't have anything to do with money, but the phrase two-headed bull shark struck me as a perfect way to describe the stock market right now. but is it it time to get out of

the water? we'll talk about that next. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.

♪ let's face it. everyone has their own way of doing things. at university of phoenix we know learning is no different. so we offer personalized tools and support, that let our students tackle the challenge of going back to school, like they do anything else... their way. even in stupid loud places. to prove it, we set up our call center right here... [ chirp ] all good? [ chirp ] getty up. call me! seriously, this is really happening! [ cellphone rings ]

hello? it's a giant helicopter ma'am. [ male announcer ] get it done [ chirp ] with the ultra-rugged kyocera torque, only from sprint direct connect. buy one get four free for your business. bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align.

the stock market continueses i bull run, but does that mean the economy is set so soar? this week the s&p 500 was closing above its record set back in 2007. this matters to you because you probably have 401(k)s and funds that mimic the index. it's up 10% in just the first three months of the euro. some are lucky to get 10% in an entire year. those who stayed invested from tom som time when the market bottomed out would have a gain of 130% in four years. on top of that, the dow just wrapped up its best first quarter since 19 98. many of you still aren't buying it. that's because of a disconnect that some of you think exists between this bull market and the broader economy. despite 36 months of private sector job growth and a stock market that's more than doubled,

folks are wary or don't have the money to invest or don't trust government. they figure it would be dumb to buy into a record-setting market. look at this. despite four years of almost constant gains in the market, 55% of you say that investing even $1,000 in the stock market is a bad idea. needless to say, i couldn't disagree with you more. the more important question isn't necessarily when you should buy. when a market is on a tear like this, it's when you should sell. you don't make money until you sell, but it can make you greedy. you fear losing out on the next bull run. one thing you can do is set a target selling price. that's not easy to decide. if you lock in a 20% gain you're doing well. carter worth is the chief market technician and amy smith join us. amy, let's start with you.

thinking about the market generally, how should an investor decide when to sell? all i ever get is tweets and questions about should i buy this. nobody asks whether i should sell something. >> first, you should always consider selling a stock if it falls 7 to 8% below what you paid for it. that way you're protecting your portfolio. if it's going to take you a 50% gain to get back to even begun. that's too big of a loss. it's hard for all of us to come back from that. that's the first thing. the next thing is to talk about hawaii about offensive selling. this is when we get to take profits off the table. you're going to do that mostly -- most stocks with great earnings and sales will run up on average about 20 to 25% before they begin pulling back in price. you might want to think about locking profits at 20s were to 25%. the next is the individual

investor must look at the average indexes and what individual stocks are doing. if there's heavy volume ha comes into market or leading stocks, the institutional investors heading to the sidelines. we want to do with the institutional investors are doing. three out of four stocks will follow what the general market is doing. you just want to get out. >> ned, you seem to think selling it right now despite the run. up is a terrible idea. what would have to happen for you to decide it's time to sell some stocks. >> selling stocks actually goes to the same equation. it's mainly profits. the first thing i tell people is to watch the momentum and earnings year over year. if there's a deterioration in the growth rite of a company's rnings, one should be wary. analysts will justify one shortfall, but the second one is

problematic. so i tell people maybe take some profits off the table with that first warning signal and wait for the next. the second issue is with changes. look for companies doing accounting changes that enhance short-term earnings. this is what i call fluff reporting. basically when you see a company that's starting to change the way in its methodology and enhances short-term earnings tharks a problem. the third thing is watch wall street estimates. if they start to deteriorate, there's growing concern about the future of the company. but more important, look for the outliars and see if the rational is there. if it is there, i would suggest, if you agree with them, that you start to sell that stock immediately. regardless of what wall street says. >> the interesting point i'm taking is you're asking people to do research about the company. don't get caught up in momentum and plays about the market in

general. carter, you have a different view about what the stock market is going to do. you say it's in for a correction pretty soon. maybe between 6% and 9%. if up to look at this chart, you can sigh save in the last two years it's done nothing but go up and it looks fantastic. but you have a warning, e those red arrows skblp we're in a bullish phase. it's a great bull market. history shows that when you have very euphoric bull phases, they give way to corrections. what amy cited is prudent. there are rules for offensive selling. she cited 20, 25%. the stock market is around 40% to 70%. from a november low, we're up about 20%. at this point, this is exactly where e normative correction or pause occurs. in fact in the last two or three

years, we have had several between 10% and 15% pullbacks. last september it was 12%. so is this a time to be getting more aggressive or to be actually harvesting some gains? many things are up more than 20%. i would put it in this context. intermediate tops or bottoms, they are typically identified by rapid price increases. just what we're seeing now while everyone is trying to get in. just as bottoms are identified by rapid price declines when everyone is trying to sell. >> good advice. if you're listening to this, it will give you advice on how to sell, when to buy and what could happen to this market. carte ere worth, ned riley, and amy smith, thank you. take a look at ben bernanke. he has a lot of people worried.

should you be worried? richard quest joins us for q&a. stick around. but what we'd rather be making are tee times. tee times are the official start of what we love to do. the time for shots we'd rather forget, and the ones we'll talk about forever. in michigan long days, relaxing weather and more than 800 pristine courses make for the perfect tee time. because being able to play all day is pure michigan. your trip begins at michigan.org.

it's time for a little q&a with richard quest. he's spoiling for a fight. one of reasons we're seeing this bull market in u.s. is because of intervention by the federal reserve pumping $85 billion a month into the economy, keeping interest rates low and that's pushing money out of bond markets and into stocks. it's why a the lot of people think it's artificially fueling the bull market. so today's question, are the world's central banks too powerful? let me go first for a change.

give me 60 seconds on the clock, starting right now. i take issue with the premise of the question which was your idea. the too big or too powerful question is silly. if central banks weren't as powerful as they are, the united states would have been sent back to the stone age and europe would be decimated by its subsequent debt crisis. central banks exist to set monetary policy and interest rate levels and ensure adequate money supply. they do this two ways. they print money, which puts more of it into the system, makes it cheaper to borrow money. that's why america is seeing a housing boom after years of bust because mortgage rates have never been lower. when prices across the board start to rise, inflation, central banks take money out of the system making it more expensive o borrow without central bank intervention, recessions can become depressions. that's why they can be good or

evil, but they must be powerful and independent of politics otherwise they would be useless. richard? what are you huffing and puffing about? >> if you take a strictly narrow definition of central banks as you have done so, then, yes, they are fine. but the problem, ali, is that central banks today have a wider and wider. the fed with its 6.5% threshold on employment, widening the remit. the bank of england with its vast new supervisory powers, widening the remit. the ecb with its omt policy and with its new supervisory powers, widening the remit. the chief economist, the former president of the bun disbank, they are saying there's a

contradiction. politicians make those decisions, not unelected central bankers. be warned, there's a contradiction, there is a conflict and they are too powerful. >> that's an almost perfect argument if i had anybody idea what widening the remit means. richard quest champion of his debating union. the banks that are too big to fail before the financial crisis are bigger today. one person is another's buying opportunity. could the banks that drove the u.s. into recession power your portfolio's recovery up next. don't treat cough. they don't? [ male announcer ] nope, but alka seltzer plus severe sinus does it treats your worst sinus symptoms, plus that annoying cough. [ breathes deeply ] ♪ oh, what a relief it is [ angry gibberish ] [ breathes deeply ] ♪ oh, what a relief it is all right that's a fifth-floor probleok.. not in my house! ha ha ha!

ha ha ha! no no no! not today! ha ha ha! ha ha ha! jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dikembe mutumbo blocking a shot. get happy. get geico. fifteen minutes could save you fifteen percent or more.

of mild to moderate alzheimer's disease is exelon patch. now with more treatment options, exelon patch may improve overall function and cognition. your loved one can get a free 30-day trial. and you can have access to nurses. it does not change how the disease progresses. hospitalization, and rarely death, have been reported from wearing more than one patch at a time.

the most common side effects are nausea, vomiting, diarrhea, fall, loss of appetite or weight, application site redness, and urinary tract infection. the likelihood and severity of these side effects may increase as the dose increases or if patients weigh less than 110 pounds. people at risk for stomach ulcers who take certain other medicines should talk to their doctor as serious stomach problems such as bleeding may worsen. patients may experience slow heart rate. free trial offer for them. nurses to talk to for you. visit exelonpatchoffer.com. ♪ more market discipline to risk, financial institutions must be allowed to fail. >> that was 2008. five years later the banks and they are too big to fail. >> too big to fail was a major

part of the source of the crisis. we will not have successfully responded to the crisis if yes we don't address that problem successfully. >> in 2007 the biggest five banks held $6.2 trillion in assets equivalent to 44% of the economic output. today it's r $8.8 trillion or 56%. dick is a banking expert. you say the u.s. needs big banks. did you ever agree they were too big to fail or needed to be less big? >> i think it's definitely needed to have banks that are too big to fail. if the united states wants to be an effective competitor in the global financial markets. remember, the united states is the biggest, strongest financial enty in the world. but they are rapidly losing that position. in last couple of days, a number of chinese banks have reported their earnings.

what that shows is that each one of the top four banks in china are earning substantially more money than the top four banks in the united states. the chinese are gathering the g financial system and as they move to push the dollar aside with the one, they are currency, what we're doing in the united states is we're trying to shrink ourselves out of the way. it is almost as if we have a death wish for our financial system that we want to be the next great britain with the next pound while the one takes over and pushes the dollar aside. >> do you think there is any risk in banks being too big to file or none whatsoever. >> there is a great deal of risk of banks being too big to fail but we must say that risk. that's the difference i have. they shall you should run for the hills and not accept risk and not accept the -- if you will the cost of risk. we must accept the cost of risk because if we don't, our financial system which is

shrinking badly, shrinking dramatically relative to the world financial system, our financial system will no longer dominate the global financial markets. that's not good for the united states. it means that the united states will have to repay its debt which is something that we cannot do. so the net effect is they have to think beyond simply what the costs are when these big banks fail which obviously admittedly is very high and they have to understand that the united states has to absorb it. >> so instead of just being on the receiving end of this, can the little guy benefit from it? financial stocks are coming back and they lag the broader market. here is a chart, the blue is the s&p 500, the red is financial stocks. the pattern is roughly the same. they moved in some degree of lock step, but the gains haven't been anywhere near the broader market, dick. tell me what your thoughts are on that. >> first off, over the last 18 to 20 months, the banking stocks have out performed the market. if you had purchased bank stocks a year ago, a year-and-a-half ago, 20 months ago, you would

have been making more money than if you had bought the broader market. secondly, i will give you a shocking statistic. let's assume you're a mutual fund manager and you put $10,000 a week into purchasing bank of america, one of the worst of all the stocks, correct? of all the bank stocks. if you had bought it every week from the day that bear stearns failed to the present you would be sitting now with a profit of about $300,000, so you didn't lose money in terms of buying these stocks on the dollar cost average willing basis through this period, and if you were buying them, over the past 12 to 18 months, you beat the markets soundly. >> should you buying them now assuming you think you should be getting into the market generally? >> yeah, i do think you should be getting into the market generally and at the present time you have a large number of banks in the united states selling at discounts to the book value. the book values are actually rising because of the boom that's occurring in housing, so the net effect is not only are

these stocks selling at discounts to their book values, but the book values are understated because as housing prices go up, all of this distressed assets on the back -- the books of the banks are in a position where theorizing, so i think bank stocks are incredibly cheap, and i think basically you're looking at least at a 20% rise between now and the next 12 months in these issues. >> dick, good to talk to you as always. thanks for joining us. i suggest you look into buying stock. i haven't bought a now care in awhile. this car is a little different. >> they never know when it is on and off. there is no noise, no vibration. nothing at all. >> the crow says this car is the car of the future. why aren't you buying them? i will take the .drive next. morning, brian!

love your passat! um. listen, gary. i bought the last one. nice try. says right here you can get one for $199 a month. you can't believe the lame-stream media, gary. they're all gone. maybe i'll get one. [ male announcer ] now everyone's going to want one. you can't have the same car as me, gary! i'm gettin' one. nope! [ male announcer ] volkswagen springtoberfest is here and there's no better time to get a passat. that's the power of german engineering. right now lease one of four volkswagen models for under $200 a month. visit vwdealer.com today.

from the new york auto show i am ali velshi. i am not in the auto show. i am outside the auto show. this is a nissan leap.

here is something to do, look for the tailpipe. get lower and look for the tailpipe. there isn't one. this is a fully electric zero emission vehicle. i went for a test drive with the head of nissan. >> always amazing because people trying the electric car first and never know when it is on and off. >> right. >> there is no noise, no vibration. >> incredible. >> no smell, nothing at all. >> what rt sort of feedback are you getting from people? what's the feedback you get why people come in, try it and don't buy it. what's the thing that stops them? >> people who try it and don't buy it are waiting. they're just saying, look, this is a good idea, but let me make sure, let me discuss it with my friends, neighbors, let me try electric cars and see where are the charges stations and they're testing it. this is a car in my opinion is going to carry a lot of brand and is one of the big engines of growth for the future. i don't think on the short-term it makes any big impact for the

moment. nissan is approaching 5 million cars sold a year. it is not going to make a big difference for the company, but in terms of technology, image, environmental image, in terms of particularly potential for the future, it is a great car. >> we talked in previous years about being a good lineup, a good offering. obviously your lineup increased dramatically in the last few years as you promised it would. availability of credit was a real hindrance to your business. are we done with that in the united states? is there still a remnant of people that want to buy cars and in your opinion should qualify for loans that are still not getting them? >> no, i don't think so. i think in the u.s. there have been a dramatic change. i think the problem that we have seen in 2008/2009, are really way behind us today, and i don't think it is a problem