a day after we got new home sales. [closing bell ringing] here comes the closing bell, parker hannifan. nice, and the philadelphia flyers. david: tough boys of philly. liz: we want the rangers. david: tough boys of philly. city of brotherly love. bells ringing on wall street. a mixed decision today. everybody is pausing. holding their bret, wondering what will happen with microsoft. what will happen with amazon. pandora, some of the little stocks reporting that could move as much as 10% either direction as you can see here. with the exception of nasdaq which is getting a big boost from apple's big earnings report. all the other markets are essentially flat just waiting. we've got it all covered in the hour to come. "after the bell" starts right now

liz: really should call it earnings action because the stocks came up with numbers "after the bell," really moved. the market, sort of middling today. let's bring in the market action and lance roberts, sta wealth management ceo to tell us, look he is smiling but calling for a major market correction. okay, lance. hold on. bob iachin opt, tevis partners chief market strategist, also smiling in the pits of the cme. bob, we'll begin with you. what drove the action today. i guess you could say it was nasdaq. >> it was nasdaq. this isn't the kind of action we normally see. we had decent earnings before the bell. you mentioned apple. some of the things that took place today. we're volumeless other than apple. so it was sort of a whole day. the action was a lot of squaring up positions. we have weekly options expiration tomorrow and friday which drives some short-term thursday moves. i didn't see anything that interests me all that much

except that action in apple. david: we have to talk about apple earnings because they have been beating tremendously so far. i wonder how much is because expectations were so low? >> well that's a lot of it. i read an article recently talking about how the company earnings are also being kind of manipulated by a lot of accounting mechanisms that go on below the top line. one of the things that we want to keep a watch on the top line revenue growth. apple reported really, really great top line revenue. that is what you want to see. that is what really tells you about the consumer and what they're thinking and doing. liz: what are they thinking and doing? why then, if we do have such good numbers from a company whose products are anything but cheap, are you feeling that we will see a 10 to 15%? hold on one second. we've got microsoft numbers right now. david: listen to the yelling. >> the street will be interested in this. 68 cents earnings per their of microsoft. street was expecting 63 cents on revenue. it beats what the street was

expecting. consumer licensing revenue, 4.38 billion. the consumer hardware revenue, 1.9 billion. david, liz, we'll crunch through these and get you more information. david: we can see the stocks are not moving tremendously after-hours but i want to go to bob on this because, bob you don't have a lot of faith in tech stocks, particularly those reporting today, amazon, pandora but you life microsoft and why do you love it and do these figures bear out your love? >> i did expect a beat earnings per share as well as revenue. i have a man crush on satya nadella. i think the guy is smart. i think he brings almost jeff bezos, belies me not liking amazon so much, almost a jeff bezos energy to the company. i love the decision of office being moved on to the independednt pad. i think that will spur a lot of extra interest in that company. liz: bob, you want to hear this? listen to this, bob? q3 surface revenue, the tablet

everybody dumped all over, that revenue grew 50%. it is only 500 million. you see they sold 2 million xbox console units including 1.2 million xbox one consoles. those are not cheap. interesting to see that that seems to be a very hot product for microsoft. >> yeah. i think the surface was left for dead. liz: yeah. >> if you look at some review sites, recent iterations gotten very, very positive reviews. as had the xbox. so i think this is all, satya nadella is the right guy for this particular point in time and i see 47 to $50 in that stock in the medium term, unless the broader market crashes. i don't disagree with lance expecting a correction, but i buy microsoft down to 36.25. david: that is a huge price target. by the way we have an analyst coming up whos has a $44 price target. what do you think about this, lance? would you go into microsoft? >> yeah, i do, i like the

company very much. fundamentally, the underlying fundamentals are great. revenue growth has been good. i want to dig into some of those xbox numbers because their real competition comes from sony. so i will watch those a little bit closer. overall the numbers were great. i think the company -- david: by the way, two million, two million xboxs were sold. 1.2 million being the xbox one. is that a good number as far as you're concerned? >> i was expecting more. i was expecting closer to 2 million of the xbox ones. so a little bit light there but not surprising because there was some initial problems with the xbox one when it first came out to market. they're getting those resolved now. david: hold on a second. we have another earning coming up right now. pandora, and adam, this stock could move tremendously based on the earnings. what are they? >> revenue for them is a beat. 181.1 million. the street was expecting 174.96 million. the loss was 13 cents per share. the street was expecting 14 cents per share.

and their outlook for the whole year is consistent with estimates. their stock though is down roughly right now. i'm looking at it, almost down, 8%. liz: active listeners, 75.3 million at the end of march. that's an increase, david, of 8%. again, pandora narrowing the loss here to 13 cents versus what was expected of 14 cents and a beat on revenue. as we look into these numbers, david, again total listener hours grew by 1% to 4.80 billion for q1. david: let's go back to our market guests on this. i want to go to lance on this. pandora, what do you think about? they have a lot of competition out there but they have been in the game for a long time. they do have a lot of loyal listeners? >> and they do. but you know there is like spotify. there are several other ones also playing in that space. i'm real skiddish about a lot of these internet-based music companies because users are very fickle. they get tired of things very quickly and they move on.

until we see pandora turn into some positive cash flow and generate some better income numbers i would stay away from the time being as investors. liz: could we put up as we're looking for amazon numbers because amazon's stock is jumping higher right now. as we sift through the numbers, remember what was really important to gene munster who was one of our top tech analysts, he said in the last hour, watch for units sold, if above 20% that is certainly important because that's a number decelerating. again we look at amazon at the moment, it is a good $3 above its closing value price for both the bid and the ask, david. david: we're seeing it jump around actually. saw it at 337. back down to 337 right now. adam, you've got specifics on those amazon numbers. give us to them. >> amazon earnings per share right in line with estimates. 23 cents on revenue of 19.74 billion. the street was expecting 19.43 billion. so doing much better on the revenue picture. just a few couple things they're

saying here, north american net sales 11.86 billion. i'm trying to find that metric, that liz was just talking about but first quarter sales were up 23% to the 19.74 billion figure. david: so many metrics. that is the thing. i want to go back to bob on this. you have the amazon prime numbers. you have sales of kindle tablets. you have the new fire tv. i mean you have so many different products and of course that miniscule profit margin, they might not even have a profit. we'll be watching the operational revenue. they could have a loss or they could have a profit despite the huge amount of money coming in. >> definitely looking for that operating profit, or that operating loss which i couldn't scroll by too quickly. david: either way, excuse me, for our viewers, it could either be they're expecting either operating loss of 200 million or operating loss of 200 million. so that is the range. when you think of all the billions coming in, it is such a

small profit margin. that has been the problem with the stock. >> david, that is that lowered bar you and lance talked about a while ago. that is a pretty wide range. like telling my significant other that i will have two drinks or 20. don't know which way to look at that. having said that, amazon itself, i think when you look at amazon you have to look at them as hosting and cloud company as well. there are really good early reviews on fire tv, seems to be limited in its scope. what it does seems to do very, very well. we have to dig in as you and lance said, we have to dig more into those numbers. liz: let's do that with bob peck. with suntrust robinson-humphrey. set managing director. you've looking at these numbers, bob. it is match on earnings per share, a beat on revenue but you have sales for the quarter up 23%. as we look for this number on items sold, to me it is interesting, how could they not be pretty healthy at this point? >> no, i would agree with you. also point out that you have the

guidance which looks pretty strong as well. you have guidance of 11.1, to 19.8. street looking q. 2 to 18.9. operating profit, zero to 400 million. street is 600 or some they're always light on that so the street discounts that. two big numbers to look for on the call, unit growth of 25% and third party units around 29% what we're looking for. david: bob, operating loss is expected to be 55 million and 455 million. what happens if it comes in at 455 million? is that a real bad negative signal? >> for numbers you want to quote, the sbc, the therefore it is more in line with what the street is looking. they always guide margins sort of weak to try to beat. david: still if on really low side, 400 million or more, will we see the stock dip down below 300? >> i would agree with that. if you see we're at lower end of that range i think street would be disappointed and the stock

would head down. liz: let me look through some of these numbers as we say. look, the profits are thin, bob. >> yeah. liz: investors do not seem to care about that. bob olstein, of the olstein fund, was just here. he is an old-time value guy and he says i just don't understand how stupid investors could be to supportive of this stock when they just don't make enough money. but a lot of people, smart people see it differently. how do you see it? >> it is interesting. first of all they did beat on revenues and gross margins which everyone turns to right away they also beat on. jeff bezos and amazon doesn't care about the current quarter's revenues, ebitda and current cash flow. the way he manages that business is maximizing the net present value of future free cash flow. any given quarter or year he could sacrifice if it is in the best long interest of the company. david: let's leave picture of jeff bezos or video of him. it is bezos versus tim cook in terms of streaming video products that they have, in terms of what they're trying to

do with their new fire tv, compared to the apple tv box. i mean, he is going head on with tim cook and frankly, if anybody in the universe is close to steve jobs it is more jeff bezos than tim cook, in my eyes, do you agree? >> i would completely agree with that. one of the most innovative companies we cover and most optionality. there was speculation out today they're building their own delivery network. there was speculation they passed on buying federal express and ups because they didn't think technology was up to speed. when you see them focusing on future with drones or whatever else he is pushing the box for five years out, not just this year. liz: tell me what you think about their interest in everything from fire tv to drones to now, new content, old new content, whether hbo. but also the prime rate hike when, it comes to charging people more to be amazon prime customers, it doesn't look like they have lost too many customers who turned their noses

up at that prospect. that is good thing for amazon. >> they're adding more and more to the service. hbo stuff is one good example of that. we did a survey. as long as they kept below $100 level there wouldn't be that much churn. looks like as though that is proving out. david: the sales numbers, will we see massive change in the sales numbers based on all these new products? >> that is ultimately the goal. don't forget you do have this digital transition where people go from more physical media to digital media. you see that continue to build that out particularly along the prime side of things. liz: particularly along -- you're happy with this number? you're comfortable? it looks a little bit stronger than what we've seen in the past. hold on one second, starbucks numbers are out. adam shapiro, let's drink them up. >> 56 cents earnings per share. that is what the street was expecting. street was expecting revenue 3.95 billion. quarterly global comparable store sales increased 6%, liz and they are reaffirming their

guidance for the full year and dividend, will it stay at 26 cents per quarter per share during the quarter. liz. liz: okay. i'm quickly looking through some of these numbers. global comp, same-store sales growth in the mid-single digits. they have revenue growth of 10% or greater. china pacific segment, asia-pacific, up 24%. they get the tea drinkers to drink coffee david. david: it's a good trick. bob peck, thank you very much for joining us. an thanks to our market panel as well. lance roberts and bob iacino. good to see you guys. liz: microsoft earnings came out moments ago. great numbers for some metrics of that company particularly, and this is a surprise, the surface tablet. what dot numbers say about the new ceo and the direction of the company and will it be enough to keep the stock momentum? what you see right now on your screen moving higher in after-hours trade. will that continue? david: let's go into the u.s. economy, specifically texas. that economy has been booming even during the down times with

an unemployment rate of 5.5% and it is not just oil, ladies and gentlemen. they have seen creation in jobs in 11 major industries in the last year. so what can the rest of the country learn from the lone star state? we'll speak with texas governor rick perry and tell us what you think about it. he didn't do so well in those debates in 2012. looks like he might be running again for president. does he stand a chance this time around? what do you think? tweet us @fbnatb on rick perry. your answers coming up. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded?

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liz: we have just swallowedded a lot of earnings reports including microsoft, amazon, digital music service pandora. david: you know who is keeping track of all of that, nicole petallides on floor of nyse. what is happening? >> we have you covered here on fox business network. watching pandora closely. beat on top line but stock is to the downside because of forecast. earnings per share, loss per share, no earnings to speak of. 13 cents loss versus estimates of 14 cents loss. that is good news, right? slight beat there. when you come in with revenue numbers, you see revenue 181.1 million, versus 181.9 million. a beat there as well.

analysts, you're seeing it closing value at 28.20, yet the bid ask range is in the $25 range. that is why you're seeing that. that is the forecast. meantime quick touch on listening hours and such that grew 12%, to 4.8 billion for the first quarter. then the active listeners, that showed a growth of 8%. and that was number of 57.3 million at end of march for 2014. still seeing the growth for pandora but the outlook a little less than what analysts were hoping for. that's why you're seeing the stock to the downside. one to watch for tomorrow, liz and dave. liz: thank you, nicole. blue chip giant microsoft just reported third quarter earnings. the stock is up actually 2% in after-hours trade. david: joining us rbc capital markets analyst. matthew, let me ask a general question about the company and new ceo satya nadella. how's he doing?

>> he is doing a great job. i think he is changing the perception of microsoft at this point. one of the things we're certainly looking forward to the fact he is participating in earnings conference call, unlike his predecessor. we like the fact he is embracing other platforms and his focus on enterprise, commercial segment in particular is big positive for us. liz: let's not gloss over that. i think that is excellent point. that satya nadella is confident enough to participate in the earnings call. not saying matter of confidence because steve ballmer knew the company very well, but the fact i is ready to take calls is important. what will analysts pile up on about? what is the focus. >> i think the focus will be continue wages of his vision. when he came in the vision certainly devices services company. certainly the focus is going to be how microsoft embraces other platforms. there is really this next generation of computing. that will be point number one.

there will be questions on nokia. they did indicate they will not talk about a whole lot. it is closing tomorrow. i'm sure a lot of people will focus on what the potential impact, dilutive impact on this year's earnings for that are too. david: i wonder with all the devices whether it is becoming a device company. is it moving away from becoming a software company? >> that is another good point. that is certainly the vision. they want to live in multiplatform world where windows and office and binge et cetera, can exist on this multiplatform world. office ownisti -- on independednt pad is a attempt to embrace the multiplatform world. they only did thing xbox but fact that surface tablets up 50% is impressive. liz: as bob, one of our traders said, left for dead but no, it's not. what about the phone business, absorbing nokia, will we see amazing game-changer in the phone world? >> that is the question. we're looking eight cents

dilution, flat or neutral next year and accretive in '16. the real question is, does nokia start to embrace, platforms outside of wind dose, whether android, what not? at build we saw a lot of new, exciting devices. anticipation is still high. we're still waiting to see what the cost synergies in plies once the deal closes. david: price target of $44. moving its way towards the $44 mark. >> thank you. >> matthew head berg. david: texas governor rick perry came to new york in order to debate governor, andrew cuomo. mario was his father, about who has the most job-friendly state in the union. there they are, face-to-face. next we're going to ask governor perry exactly why his state is more business-friendly than new york. that is coming right up. liz: all right, then. the housing market hits doldrums is it still suffering from aftereffect of the polar vortex, the brutal winter or are there deeper forces at work now that

the sun has come out? a former governor, frank keating is with us live. he is the of the and ceo of the american banking association. are think lending? what is going on? we'll ask governor keithing what is behind the housing dip and what it will take to rev up the housing market. ♪ all stations come over to mission a for a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured.

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[ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. xfinity watchathon week was the biggest week in televisionhone. history. but just when you thought it was over... what now? with xfinity on demand you can always watch the latest episodes of tv's hottest shows. good news. like hannibal... chicago fire.... ...and bates motel. the day after they air. xfinity on demand. all the latest episodes. all included with your service. it's like hi-fiving your eyeballs. xfinity...the future of awesome. david: texas governor rick perry claims to represent the most business-friendly state in the country. after all a third of all the new jobs that were created in the, america were created in just that one state over the past decade, but new york, just came out with an ad campaign claiming it is the best state in which to do business. so governor perry came to

new york today to challenge governor andrew cuomo to a debate. governor cuomo backed out. we took the opportunity to interview governor perry. take a look. >> look at the record, look at the data. almost 30% of the all the jobs created in the last decade were in the state of the texas. texas is the number one technology exporting state. you don't see technology companies moving to new york. you don't see, as a matter of fact, migration out of new york and california been some of the highest in the country, per cap tax those two states have led the nation. so, you moved up from 50th best job climate to 48. my hat's off to governor cuomo. david: by the way, governor cuomo you challenged him to debate. i guess declined that debate. >> he has. that is not to say we shouldn't continue discuss whether or not we can get together. it is not about new york versus texas. it is actually about the concept

of should states be given authority to compete against each other, whether delivering health care or education policies? this one size fits all that comes out of washington that is not good for new york. it is not good for california. it is not good for texas. i believe andrew cuomo and his legislature can make better decisions for new york than washington, d.c. with that said, we're going to compete. and those businesses are going to take a look do you want to stay in new york, high taxes, high regulation, litigious society that has been created? or, do you want to come to a place where freedom really raines. david: to that last point, texas instituted lose pay to cut down on frivolous lawsuits. >> sweeping tort reform in the nation. to keep up with my friends bobby jindal and rick scott in florida, we decided raise the bar, pass loser pay, which we did to make texas more competitive there.

is reason that texas has the third highest graduation rates in the country. there is a reason that people know they can come to texas and have that skilled workforce. because of the policies, on the accountable education side. but also tax, regulatory and legal policies. david: as different as ever state is, i agree one size does not fit all, the great thing about this country, each state is pietri dish for new experiments -- >> laboratories of innovation. david: how much of what you did in texas is transferable to states like california, new york, illinois? >> i say almost all the tax policy, regulatory policy, the legal changes that we made and accountability in public schools all of that is transferable. >> by accountable, you mean what in public schools? >> by accountability, i'm talking about charter schools. i'm talking about incentive pay for teachers. putting accountable measures in. david: by the way, if you're trying to put those in states like illinois and new york you have to deal with much tougher unions than you did in texas.

>> there's the difference. you have to have men and women who are courageous. willing to stand up against special interests to say you know what? our children's interests are more important than the union's interests. how they're going to perform in life is what we're focused on. you've seen our test scores going up. you have seen over 100% increase in hispanic participation in higher education in the state of texas. that's the thorough fare to a better tomorrow. david: well you talk about texas being a blue print for other states, how about what you have done in the texas over the past what, 13, 14 years as governor being a blueprint for the nation? ing the politics, people, let's go back for a second to last election, a lot of people say you didn't do so well in the debates. >> i agree with them. david: what did you learn about that situation. >> two things. i shared with you earlier if you're going to run for presidency of the united states, don't have major back surgery six weeks before you get into the race. you will not probably perform too well.

secondly, you must be prepared. and preparation to run for the presidency of the united states is a very long, thoughtful process. i didn't do that. it was a very humbling experience for me. let me share for you, 2011 was very frustrating, very humbling experience. i'm a big believer that america is about second chances. i'm also a big believer you can tell more about a person's character by how they perform after they have fallen down, after they failed, rather than whether it is all blue sky and wind behind your back. david: talk about the use, the word preparing, are you preparing for run for president? >> i want to give myself every opportunity that, when i leave the governorship of texas next january of 2015 that i got a lot of options. the preparation that i'm doing now to be a better governor, to, better spokesperson for these conservative values and things we've done in texas this, is good preparation forethe possibility of a presidential race as well. david: do you think by the way,

that you could pull in a lot of immigrants that governor romney was unable to pull in? >> i think when you look at the economic policies, when you look at thoughtful, smart, immigration policy, that the republican party should be a very comfortable party for an immigrant, whether you're from mexico or whether you're from one of the asian countries. david: certainly looks like he's running. at any rate he didn't rule it out but seems like that is the direction he's going. by the way you get a more full picture whether or not he will run look at the full interview. go to our facebook page. facebook.com/afterthebell or visit foxbusiness.com. you can see the whole thing there. very interesting character. there have been comebacks. richard nixon, lost in' 60, lost in '62, came back to win presidency. liz: from a business standpoint, throw down the gauntlet -- david: cuomo backed out of the debate. liz: he is always welcome. governor cuomo we would love to

have you. david: have a faceoff, perry and cuomo right here. liz: fda outlining plans to regulate e-cigarettes. will this dim the lights on this fast-growing industry? we have the ceo of e-cigarette maker logic how the industry plans is respond. this is a fox business exclusive.

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your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva.

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market leader as shares of apple led the index higher. s&p for its part posted gains while the dow closed unchanged. this is kind of momentous. this is the first time it closed unchanged in more than 12 years. orders for durable goods rose 2.6% last month. of that is the biggest jump since november. 4% surge in aircraft orders drove the mix. number of americans filing for first time unemployment benefits climbed by 2 -- 24,000 to 329,000. david? david: for the first time ever the fda is proposing to regulate electronic cigarettes. they want to ban sales to minors and place new requirements on manufacturers. liz: while that proposal won't mean any immediate changes how cot fda's draft regulations what has become a burgeoning e-cigarette business? we have logic ceo and president. you knew it would come, eli, didn't you? >> we yes we did.

liz: what you heard about the form it will come, what do you think? is this something you can handle, swallow, absorb? >> we yes, we welcome the regulations. we think it's a good thing for the government to take a step and support the industry in the measures they're taking. i really brief on scientific basis we have a lot more to do. -- 2016 it will be a totally different place. sorry. david: the fda wants to put health warnings on. but we don't know, there is no scientific evidence that has come in yet to indicate what the warnings are. other than the you can get addicted to nicotine which is in e-cigarettes. how can you put a warning on a package when science has not made a decision about whether it deserves a warning? >> wealth warnings will be taken voluntarily. logic if not the most

conservative company, age restrictions on packaging, ingredients, no health claims on it. so i think this is the direction and logical support. >> what warning specifically does the fda want you to put on the cigarette box or the e-cigarette box if in fact there is 240 scientific evidence that there needs a warning? >> age restrictions, ingredients. not to be sold to minors. liz: and let's bring up the minor issue. some of these cigarettes are in different colors. they have flavors. candy. if the regulations restrict that, would that hurt the entire industry. >> i don't think so, companies like logic are very conserve at this at this point, we don't sell, we don't manufacture flavored products out there. sos, as i mentioned before we're very conservative. we have toe bake coflavors for traditional tobacco cigarette users looking for alternative. david: nicotine is a pesticide.

how dangerous is it to handle? some people actually mix the liquid nicotine in themselves, right? >> yes. talking about open systems that we are looking into it. our product is not mix but we are looking to get into that aspect as well. liz: it is fascinating to see in early stage of an industry. in a way that's where we are, mid to early. because fox business jumped on this about a year-and-a-half ago because it was alternative to smoking, if you call them benefits what do you say the people about benefiting smoking e-cigarette cigarette? >> i have to be careful about my answer. this is great alternative for smoker who is looking for alternative. especially indoor smoke. no second-hand smoke in that direction. there are benefits there. but really at this point we would need the help of the fda to help us to create as far as warning what we can or can't say. david: by the way, just as a side note, you were a former

smoker, regular cigarette smoker. yes. david: now you smoke these. >> i smoke logic. david: do you have any words about that? do you feel different? >> i don't smell like cigarettes anymore. my family loves me. i don't get heartache from my loved ones. liz: you don't get kicked out during dinner. saying he welcomes regulations of logic. >> yes i do. david: thank you very much. >> good to see you. >> after this week's soft housing data, many wonder if the housing market will pick up this spring in entirety? forget about the cold weather it is gone now but numbers are weak the. frank keating, former governor of oklahoma, we'll ask him for the real deal from the bankers side. hi, are we still on for tomorrow?

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liz: we have seen some disappointing data out of the housing market recently especially this beak. number one, existing homes sales fell to a 1 1/2-year low. new home sales for march, out. they plummeted 14.5% in the month of march. the polar vortex may have still played a big part in this weakness? we're getting tail end of it but the decline could continue because the new mortgage requirements could make it tougher for americans to get a loan. let's bring in frank keating. he is former governor of oklahoma and now the american banking association ceo and president. wonderful to have you, governor.

can we still blame the extreme weather for these weaker numbers? >> this is a pretty grim quarter. i serve on title insurance company board and when i first saw them i was really stunned. i think weather has a big role to play here. remember those of us who bought cases in my cases, my case, many houses it took more than a couple months to figure out, is this house that really want. so i think that now that the spring appears to be here, it's a good time to see if you will not see more activity. 4,000 pages ever qualified mortgage rules under dodd-frank. that has a chilling effect. as a matter of fact we have did a poll at american bankers association, showing 80% of our members think this will have chilling effect on our credit. i think student loan debt $6 trillion student loan debt will have a drag. i'm hoping that spring will see some sprouts in the housing finance and a lot of people going out to get a house because that still is the american dream it. >> is and let's back up to the

new regulations and of course those 4,000 pages that have been added. when entire housing market blew up and we had the mortgage crisis, warren buffett said i will make a presentation to hung paulson, a the time who was treasury secretary, would require mortgage brokers and bankers simply to have a two-page document, that would simply say here are your mortgage payments. here is how high they could go. here is how low they could go. here is what you are committed to. but what did dough do? opposite. we may it much more complicated. how much more of a freeze will that put on the housing world out there. >> well we have a lost banks say they will not be in the mortgage market anymore. this is a very difficult environment. it is costly in terms of compliance. but i think the buffett comment is a good one. you have to have a job, assets and income. we made a big mistake in the middle of the last decade thinking people would be in homes they couldn't pay for.

that was silly. the incentive system has to work. when i was turned down for my first mortgage and banker said, tell you what you do, if you have the owner collateralize the first $10,000 of debt we'll do it which the owner did i got the house that would not be done today. that is not a qualified mortgage. fannie and freddie wouldn't buy it. complexity, bad facts always make bad law. the complexity of this process will definitely chill the mortgage market and hopefully cooler heads will prevail and we'll get some amendments and change, some massage to this process but it certainly will hurt. liz: we know how frightened the banks got. they only know two emotions. with all due respect, with the banking association, they know greed and fear. right now they're in the fear mode. do they understand people can put down 25, to 30%, have could decent fico scores should not be tortured? i talked to people all the time, i had 25% ready and i never miss

ad payment on my house and yet they couldn't get it done they would rather park it in the fed. >> banks would much rather lindh because that's where they make their money. part of the dodd-frank qualified mortgage rule you have no more than 43% debt to income ratio or relationship. well, that really hurts senior citizens who have a lot of assets but limited income. liz: that's right, yes. >> to buy another home. in places like puerto rico, at 43% debt to income requirement is really chilling to low income and moderate income people. so if you can't have character lending, you can't have, like, even asking my father to cosign my loan, would not make it a qm loan. it couldn't be sold. just too rigid of a system and hopefully we'll work our way through it. liz: you are so right. i was talking to a doctor lived nearby. liz, i had three million in the bank. i retired because i wanted to retire and wouldn't give me hope because i didn't have income. ridiculous. character lending, that is not a bad idea.

governor keating thanks so much for joining us. >> thank you, liz. liz: we'll have you back when the next number combs out. let's hope it's a better one. frank keating. david: great guy. science fair for tech startups. we'll tell you all the cool things at new york tech day. and worries that we're in a tech bubble. you want to stick around for this. ♪

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liz: today marks new york's third annual tech day, when startups from all over the world gather to show up and show off new products. david: jo ling kent was there and was asked if they're concerned about being in a tech bubble. >> it is 450 startups. 10,000 people, more than $20 billion of investment dollars in play. that is not even including the angel investors. they're vying to create the next big company in silicon alley. last year companies hired for nearly a thousand jobs. this year one of the main topics of conversation from booth to booth is the potential tech bubble. are we in one? where is the money flowing.

should investors be concerned. here is what they said. think you will get a lot of different answers. >> a lot of companies here are building companies. they're not just building tech bubble companies. they're not building something right away, building companies that help serve a purpose. >> i think we're seeing real companies created today. nor the first time people make real bookings on web and mobile. they're spending real money for services. >> that is why a lot of companies are raising money. uncertainty about the macro environment. but no one knows i think quite yet yet what will happen. >> overall new york tech day confirmed what we're reporting on, real services to shift to tech sector. silicon valley, startups seem to be less focused on software side than fashion, medical, hardware start-ups. one company buzzing aeros they came out with a air conditioner

the basically the nest of air-conditioning being incubated by quirky, the very hot design and invention company. liz, dave? >> interesting stuff. jojo ling kent, thank you very much. david: president obama vows to hymenoid robot during the visit in japan. the historic endown tesh coming up. you don't want to miss it. ♪ announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."

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david: time to go "off the desk." president obama got up close and personal with a humanoid robot in japan today. they even played soccer. the president encountered the honda-designed robot during his tour of the national museum of emerging and innovation in tokyo. the robot can do fun things like run, jump, play ball. they are working to give him skills to help people in need.

liz: "bend it like beckham." bar by hitting the big screen -- barbie. partnering with mattel to live action movie. they see it as next big global franchise. the question who will play the iconic blonde. maybe the human barbie. maybe she will make an experience. that is real person. the movie starts production at the end of this year. david: looks likes governor perry will be running again for president. we asked you whether on facebook he stands a chance. matt said i stood a chance. he will do it again. doesn't hurt his chances way economy looks. liz: mary looked said on facebook, last time he ran he looked to be a loose cannon. i doubt he stand a chance. david: let's look a stocks that announced earnings and losses today. microsoft after-hours is trading up 2.5% right now. amazon is also up 2.5%. liz: indeed.

amazon with a meet on bottom line but a beat on revenue. microsoft a beat on both the top and bottom line, moving higher in the after-market session. david: pandora unfortunately down 6.25%. liz: have a great night. "the willis report" is next. gerri: hello, everybody, i'm gerri willis. right now on "the willis report," has washington just wrecked the internet? consumer groups say new federal proposals have done just that. also does the government have to issue a permit for everything? we're taking on the struggle to regulate airbnb. is a million dollars enough to retire on? >> doesn't even sound like a million can get awe great place to live. gerri: we'll help you find your number. we're watching out for you on "the willis report." well, tonight some good news, from an unlikely source. the federal government. the food and drug administration today announcing they will begin regulating, regulating,