hewlett-packard down big time. [closing bell ringing] >> missing all of their segments. down 10%. david: oh, 10% loss. bells are ringing. we focused on negatives in the market. you can't avoid the obvious which we're in record territory once again. all of that had to do was to up one point. -- go up. it was up 13 points on the dow. the nasdaq is, let's see what the nasdaq is up now, where is the record on the nasdaq? liz: it is down. david: nasdaq is down just a bit. so we have a mixed record on the dow but on all of the indices but the dow in lord tear -- record territory once again. "after the bell" starts right now. liz: look a record is a record but the fact is, this one had a little less oomph today. let's get to the market panel to

read the tea leaves. we have mark russell january jay montgomery. likes u.s. equities why and where. and george young, from vilari and company expects the markets to grow between eight and 10% this year. a bull in our midst. then the bear on the air, todd horowitz. that is my new name for you. todd in the pits of cme. i was on todd's radio show david. he calls himself the bear in the air. that is perfect, right. david: he is. liz: still bearish. >> i'm still bearish. hi liz, hi david. the action has been nothing going on here. it has been extremely quiet. we've seen lower volume, lower volatility as we had nasdaq, 10 winning days in a row until today. still 14 out of six teen. the action is not healthy. it is not great. i will not fight the tape and say we're not going higher here.

at this level i would be very surprised if the nasdaq didn't test the 1999 high. the data i'm seeing, things coming out, i'm not comfortable being long in the market except as my investment account. as a trader i want to be short. i'm waiting and dying for an opportunity to sell this market. david: michael, let's talk about the economist. janet yellen was talking about it yesterday and today. is the economy strong enough to support prices on these equities? >> in general i think that on the short run we can continue it, because on relative basis things are okay. david: but what about long term? >> long term i think evaluation, extremely high. you have to go back into the late 1990s, into early two thousands with similar type valuations, with backdrop of weakest economic recovery since the end of world war ii. history says you will not have very good returns going forward over a extended period of time. there is no room for error. liz: no room for error.

mark, let me make this a very easy, not multiple choice, i guess between the two. stocks versus bonds, u.s. versus non-u.s.? >> stocks over bonds, liz. that is fairly easy for us, given nominal yield hurdle stocks have to overcome, 2, 3%. we think that is achievable talking u.s. or non-u.s. to the latter, non-u.s. over u.s. we think the valuation disparity is ridiculous relative to where the opportunity is where earnings growth trajectories are particularly for european-based equities. we see valuation disparity today being unlocked as the news coming out of europe is consistently improving sequentially compared to the u.s. equity market. that's why european equities defined by the euro stock index is up about 12% year-to-date, versus low single-digit rate of return for u.s. equities. we think that gap widenses out over the course of 2015. david: george, bring oil into the equation.

and the energy sector in general. are there, is it time to look for winners and losers in the oil sector to start making new bets in the energy sector? >> yes, i think this is a good time. depends which stocks you buy. one of the problems, oil is volatile commodity and we've seen that in last six months. take a stock like oceaneering international. one of the best operators of rovs, remote operated vehicles. they operate in harsh sea environments. they work for companies that need to keep oil services going. important to understand, eastern though oil is volatile, may go down next couple months it is okay to own oil service stocks. that's where we think there is value right now. liz: oil service stocks. michael that is not exactly where you're going. talk about why you like things like corporates, high yields which people are always arguing whether those are in danger zones? >> we look at it relative to

what they're paying compared to treasurys. selloff in oil, dragging down high yield last year, we saw yield spreads widen up to the highest level in two years. has oil settled down and economy stablized if we look at performance of high yield corporates regular tiff to treasurys this month, after we came out with, stronger than expected employment gain, we've seen treasurys selloff, interimmediate treasurys down more than 2% so far this month. and we've got high yield corporates, up more than 1% on the month. would say at this juncture i would rather take the economic risk rather than rate risk you have with treasurys. david: todd, talk about how the strong dollar is affecting things, in particular the financial sector. what is happening in u.s. banks as a result of the strong dollar? >> the real problem we have here now, david, is when you see the dollar continue to bain strength, it takes away the advantage of u.s. banks because of the dodd-frank and amount of

leverage they can put on the street, that strong dollar takes away. it allows foreign banks to woman underneath and loan money to people we normally end to. it is underleveraged situation to 2008. we were overleveraged. now we're becoming underleveraged which create as dramatic effect on their balance sheet when they report earnings. david: short u.s. banks and long for return banks? >> that is probably a pretty good spread. i see no reason the u.s. dollar will not continue to gain strength here because the fed can not bring rates higher because of falling rates throughout the country, the world, excuse me. so i think banks are probably a pretty good sale and i would probably look to buy foreign banks, that's correct. >> something tells me mark luschini would disagree with that. you like one u.s. bank in particular. why is todd long? >> i do, liz. i don't disagree with todd relative to the four

ex-headwinds. namely that is finally passing the fed stress test they'll will be releaserred here shortly. it is an institution that hasn't done a good job of correcting itself to meet the covenants what it requires to pass the stress test and treat shareholders more friendly than it has in the past. management got it last time. what i look forward successful pass of the stress test and shareholder friendly activity, namely either the announcement of a share buy back or raising the token dividend which is negligible at the moment. doing so, inviting in a whole different level of sponsorship into the stock basically absent due to lack of dividend payout structure in place. as a consequence cheapness of citigroup compared to money center pierce peers with opportunity to unlock value has great potential. david: michael, elephant in the room is all central banks fueling the stock rally wherever

it is, whether here or abroad. robert rubin talked about this. we'll talk with alan blinder, former fed official coming up at the end of this hour. robert rubin had ha piece in the "wall street journal" that this is very dangerous. that this is creation of bubbles as a result of monetary policy. does that concern you at all? >> yes it does, david. if we look at times federal reserve or low interest rates almost inevitably you end up in bubbles with certain asset classes, whether it was in real estate, whether with bonds. david: where do you see a bubble? be specific. >> i think you have it more into the equities. federal reserve when they implemented the policy essentially said we'll try to create a wealth effect that should trickle down and filter out. so we've seen asset inflation in equities, frankly in bond prices but you've got certainly be a normal yields relative to inflation. when we start to come back to more normal levels you have a

very vulnerable essentially stock market as people adjust to normal realities. liz: good to see all of you. good discussion. mark luschini, michael paul, george, great to have you. todd horowitz we'll see you when the s&p futures close. david: thanks, twice. 20% of all cars on the road have been recalled because of safety defects. we've been talking a lot about them here. a lot of those have never been repaired. people just never took them in. how can you protect yourself if you're buying a used car that was never repaired? we'll tell you. liz: plus the average 30-year fixed mortgage rate, 3.9%. back in 1981, david, ready for this, it was nearly 18%. with rates so low shouldn't the housing market be a lot stronger? we have the ceo of douglas elliman next. david: jpmorgan will start charging its commercial clients fees for holding their cash. is this a sign of what is to come for your own personal

savings account? we'll ask former fed chairman alan blinder. tell us what you think about this. are you nervous banks will begin charging you fees for just holding your cash in savings accounts? send us a message on facebook or tweet us. ♪ there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away

for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com you but at t. rowe price,ket. we've helped guide our clients through good times and bad. our experienced investment professionals are one reason over 85% of our mutual funds beat their 10-year lipper averages. so in a variety of markets, we can help you feel confident. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. we're reinventing inhow we do business, so businesses can reinvent the world. from pharmaceuticals to 3d prototyping, biotech to clean energy. whether your business is moving, expanding or just getting started...

only new york offers you zero taxes for 10 years with startup ny, business incubators that partner companies with universities, and venture capital funding for high growth industries. see how new york can grow your business and create jobs. visit ny.gov/business

is it crazy that your soccer trophy hey, girl. is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this.

liz: consumer discretionary stocks led the market higher with retailers hitting new highs. david: nicole petallides on the floor of the nyse with latest. nicole. >> dave, liz, we saw names hitting lifetime highs. consumer stocks did very well. take a look. i know some since pulled back. autozone, that hit a lifetime high, but pulled back. tjx, target, tgg would be one we look for. target came out with strong sales for the latest quarter. stronger than expected same-store sales. tjx, parent of t.j. maxx and marshals. eleven% rise in profit. quarterly dividend was on the rise. those were just a few names in the consumer area that hit those lifetime highs. back to you. >> thank you, nicole. david: well the s&p futures are

closing just about now. 10 seconds from now to be exact. todd horowitz at the cme. how is it shaping up for tomorrow, todd? >> they're closing a little bit softer but very close to the unchanged line but i think it is important for people to say you know what? markets at all-time highs. they're making new highs every day. indexing part, we need to look for alternatives. i think you look to the oil space for some of those stocks. alternative investors, real estate. with room for growth because i think the indexes are really well-overdone. david: good stuff, todd who are waits. thank you very much. >> u.s. home sales fell less than expected, yes, less than expected in january. home prices are up 4.5% from one year ago. are these hopeful signs or confusing signs for the housing market? or with rates as low as they are, should we expect be seeing numbers twice as strong? joining me, dottie herman, douglas he will my man --

elliman ceo. we have 3.9, fixed 30-year. >> that is crazy. liz: so cheap, we had our staff look back. 1982. in 1982, february, these rates were 17.6%. people were still buying houses. >> people bought, okay. i think people just got used to it. there are some people not aware, like the refinance markets, so many people really don't get around to do the thing. they just don't do it. it should be so much easier. the thing that is the problem right now though is the supply. there really is such a little supply of housing. liz: but it is rising. we saw a decent number. >> rising from astronomically low numbers. when you look at those reports, it says it is rising but really rising from nothing. there is so little supply. liz: do we need more building up? homebuilders coming out, to brothers, for example, they did

very, very well with less supply. the economy is incrementally getting better, right? >> we need to see more new housing. but we need to see, came out with financing couple months ago, millenniums, that generation is buying, 27, 35, 40 years old, they need thedown payment. so they have this 3% loan out, i don't see anyone having success. liz: why not, dottie? are they missing the opportunity of a lifetime here? >> i think a lot of people don't know about it. but i think it is also new and has got some kinks. i think we need to watch that. tell you what is still hot, miami. liz: really? >> just came back. that is hot in a lot of ways, okay. liz: are the prices still reachable, attainable? >> well, they're really, if you bought there a while ago you're in. liz: yeah. >> they're just going up day by day. i think you will see that in

florida a lot of southern florida. a lot of the baby boomers, they're, instead of markets going up, you will see that really build up. liz: dottie, do you think it is totally unrealistic the younger end of millenials would be buying? i remember when i was 24 to 29, there was no way i was in a position to buying a house. i was trying to build my career. i could barely make the lent rent. why are we putting it on them, oh, they can't afford it. we never could. >> we worked. a lot of the millenials, really their parents helped them out. but the problem is, we walked through a little better job market. the market was tough. these kids have a lot of student loans. they graduated with a recession with jobs. whatever jobs they had were paying half and the down payments. >> let me bring up donald trump, who called into maria bartiromo's show yesterday, okay? we were asking him, things have

gotten really expensive really quickly here in new york. here is what he said about the new york housing market. >> yes, i do. i think there is a bubble. i think it is going to pop. when it does i will be a big fat, beautiful, buyer. >> can't really make a decision which way he wants to go, can he? he says there is a bubble. >> let me tell you something, when it comes to real estate he did pretty damn well. he knows it. the okay? he can testify. no, i think you will see 2015, the foreigners really strong foreign market again. instability in europe. liz: when you have a fancy apartment who are you showing it to, more russians or chinese? >> well, actually, chinese is number one. russians are number two. liz: the new millionaires. >> that is in cash. they have that cash. no matter what anyone thinks about the u.s. a, it is a lot better than there. liz: amen. i agree. dottie, great to have you.

>> great to see you. liz: dottie herman, been in the trench forever. douglas elliman. david: i love that. southwest airlines forced to ground 1/5 of its feet after discovering the planes missed inspection of back up rudder system. faa said southwest can continue flies planes that missed inspection as long as they are inspected within the next five days. according to a southwest spokesperson, the company inspected about 80 of the 128 planes in question overnight. >> here is another number. 60% of the americans between ages of 18 and 40 saved nothing in 2013. david: wow,. liz: not a. a totally new app is doing the math and is saving aside affordable amount each pay period that works with your

machinely behavior. we're talking to the founder. stay tuned. david: buyer beware, a new study shows used cars are sold with unfixed defects. the ones recalls were supposed to fix. what should you do to make sure you're not buying one of these lemons? liz: one credit card company raising interest rates for for one million cardholders. you need to know about this one next. ok, if you're up there, i could use some help.

smart sarah. seeking guidance. just like with your investments. that sets you apart. it does? it does. you're type e*. and seeking another perspective is what type e*s do. oh, and your next handhold...

is there. you don't have to go it alone. e*trade gives you the support and guidance to make informed decisions. are you type e*? liz: listen up, american express users. the company is planning to increase the interest rate on some of its credit card accounts but average of 2.5 percentage points. amex says it will notify customers about this change give them the option to keep the card at higher interest rate or cancel the card the company declined to say how many of its 42 million cards will be affected. david: new study, 1/5 of all the

cars on the road were recalled for safety defects but never were repaired. liz: oh, boy. there are a lot of phantom cars out there. what can consumers do before they buy a car? we have a foxnews.com automotive editor. that is a lot of cars. how can consumers be smarter to make sure they're not getting some defective car foisted up on them? >> first you have to do research ahead of time of a car you might be interested in. see if that model of car has a recall on it. when you go look at specific cars. it is really easy. get the vin number off the car, look it up and it will tell you if there is specific cars and specific model. to find out if it is worked on this is more difficult. used cars, these car dealers don't have to tell you if work has been done, if there is recall. they don't have to get recall work if it is sits on its lot. get carfax and auto check. reputable dealers will do that

for you but question you should no. david: repairs are done for free. why aren't people, boy who cried wolf, there are some recalls people don't bother to turn them in to be repaired. >> part of that. how many times does the your tell you to eat right, don't go to the junk food place. if the recall isn't scary, you might not get it done. these problems, millions of dollars will never have the problem recall is before. the parts are defective but may never break f your car is running find, you may never get it firsted. gm switch and airbags that is more scary. you hope those get done quicker. gm had to give out gift cards to get them to bring them in to get them fixed. liz: even so, people didn't. talk about the vin number, the vehicle identification number. where can you find it on the car. some on the windshield? is that par for the course. >> window sticker with the car.

pretty easy to track it down. if you don't know where it is ask the guy selling. >> recommending you do the homework before you begin to look at a car? >> a lot of people today, i'm amazed, maybe because i cover cars for living, you know what? we need a new cars and go to strip of car dealerships pick out a areca. they don't know what car they will buy. see the red car. we'll get that one. have no idea what they're getting into. not hard to look that stuff up ahead of time. david: talk about the cars that deemed dependable. j.d. power, by the way, one thing surprised, tesla model s was deemed top car but only ranked three out of five on reliability. did it deserve that top spot with three out of five? >> that is "consumer reports" test. that is different than j.d. power dependability test. it is a great car. it is exciting car. i think "consumer reports" car might be raz sill dazzle giving

99 point score based on reliability. good car and fun car to drive. one thing about tesla, they take care of customers when things go wrong. can do that when you're not making many cars. be interesting to see if they keep that up selling a million cars. liz: look at least dependable cars. land rover, jeep, least dependable. i had two jeeps, they were fantastic. they were totally dependable. what are they basing this on? >> dependability study is not about cars breaking down on side of the road. features in the cars whether they work to people's satisfaction. infotainment system is slow, you touch it, not so happy. it might not be a defect. a lot of people buy jeep wranglers will never take them out on the road, not a great car. little louder than a regular car. a lot of wind noise. it's a truck. people don't expect that when they get into it, when you ask them, that is little noisy.

david: might be a lag here as well. land rover i'm told fixed a lot of props. they had a test up in iceland that a lot of people thought cars did very well on. >> we're talking about cars from 2012. back in 2012 particularly, this is a lot of new technology coming into the cars. not all of it was ready for prime time. things first-hand i can tell you are a lot better now. david: good stuff. liz: gary, thank you very much. david: thanks, gary. are you one of the millions of americans with little or no money in your savings account? coming up next we have the owner of a new app that makes it a lot easier for you to put away cash at a time you might need it. liz: spacewalk at international space station today to prepare loading tocks for more traffic of the fascinating pictures and the update on the mission straight ahead. david: plus, the fed, in fact all all central banks have they reached their limits what they can do to prop up an economy and markets? have they maybe gone a little too far? we'll ask former federal reserve

vice chairman alan blinder. vice chairman alan blinder. he will be here in a moment. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva respimat. discuss all medicines you take, even eye drops. if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain or problems passing urine, stop taking spiriva respimat and call your doctor right away. side effects include sore throat, cough, dry mouth and sinus infection. nothing can reverse copd. spiriva helps me breathe better. to learn about spiriva respimat slow-moving mist, ask your doctor or visit spirivarespimat.com

whto have an unlimited mileage warranty on a certified pre-owned rcedes-benz? what does it mean to drive far as you want... for up to three years... and be covered? it means your odometer... is there to record... the memories. during the mercedes-benz certified pre-owned sales event now through march 2nd, you'll get complimentary pre-paid maintenance and receive your first two month's payments on us. only at your authorized mercedes-benz dealer. grind virtually any kind of food waste into an unending source of electrical power for a city? when emerson takes up the challenge, it's never been done before simply becomes consider it solved. emerson.

"what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do.

creeping up on you... fight back with lief so smooth... cre.it's fast. you... tums smoothies starts dissolving the instant it touches your tongue ...and neutralizes stomach acid at the source. tum, tum tum tum...♪ smoothies! only from tums. david: in 2014 the savings rate for adults under the age of 35 was actually negative 2%. more people in debt. they aren't alone. in 2013, 60% of adults saved nothing at all. liz: nothing. one app hopes to change all that by making savings easier. the app is called digit. it is different than what you

expect it. puts money away for you based on your spending patterns and behavior month by month. joining us ethan block, digit founder and ceo. we love this story because we looked at this and said, you would notice $200 taken out on a certain day every month but you might not notice $5 on a tuesday in early part of the month and 18 later, so, on. ethan explain how it work. >> when you start signing up for digit it looks at your spending patterns. it looks at small amount of money you don't need but also feel you won't be missing as you spend money. david: as i understand digit savers, don't get interest. you take that, am i right? >> yeah. today -- david: don't they have a little bit after problem with that? you get all the interest, they get none? >> well, today we don't pay

interest. we plan, as we grow to pay competitive interest rate but the challenge in america is people aren't saving. so we spent an insane amount of time trying to help people save. we'll help people actually grow their savings. liz: so i'm assuming it hooks into your account, your bank account. it watches somehow through it algorithms, what day you pay the rent, what day you pay utility bills. what day you might owe somebody some money for your car payment. it weaves through on the days you might not notice it, and takes out anywhere from $5 to how high? you tell me. >> the highest transfer possible is $50 but it is extremely rare -- $150. the average transfer is $18 every two days. david: i don't mean to harp on this. interest rates are very low. so people don't worry about not getting any interest on saving with you guys.

when interest rates go up, and they will go up. we're not sure exactly when. sometime this year, whenever, when they go up, aren't digit savers going to demand they get cut of their own interest? >> if interest rates will go up it will be great for everyone. as we grow membership base we get more leverage with the banks. we get more competitive rate to share with our members. david: you would be essentially lobbying for your members? >> that's right. interest rates rising will raise all boats for us. >> which would be awesome but in the end we know startups like yours, some of them come, they go ipo, they're huge. others go. how do we know our money is protected? as we understand the fdi consider is involved, is that correct? >> so we actually work with banks who hold customer funds in discuss towed y'all accounts. we work with wells fargo and bfi federal bank. we don't have title to the money. they're held for the benefit of our customers. they can never be use in event

digit goes bankrupt. they can never be leaned if it creditors come after us. we have zero right to them. liz: who is your dream client here? >> dream client? anyone really between the ages of 25 and 35. our average customer today is 27 years old. makes $55,000 per year. we save around 5 1/2% of our customers monthly income on average. david: it's a great start because as we know. it is not new. young people generally don't save but it's a good time to learn how to do it. you're helping them. ethan block, digit founder. thank you for coming in. liz: good luck. >> thanks for having me. appreciate it. david: meanwhile a little more information on a mystery that has been really bothering a lot of parisians. three al jazeera journalists have been taken into custody apparently flying drones illegally in western paris. the arrests come as french

police are scrambling to figure out who is flying these over city landmarks overnight. they say there is no relationship for the moment between the two incidents but again this is the beginning stages of this investigation. liz: yeah, more like six incidents here. it is just bizarre you would see al-jazeera journalists doing that. five sightings reported between 11:00 p.m. and two a.m. on monday and tuesday nights near the u.s. embassy. the concord we told you. two old city gates. flying drones over paris at night, illegal. day time flights even require authorization. flying drones without a license carry as maximum of one year in prison and $85,000 fine. david? david: all right. there has been a lot of pressure on jpmorgan to break up lately. following its investor day yesterday one analyst believes a split is nearly inevitable. mkm says jpmorgan did a thorough job of showing the attractiveness of it is individual businesses furthering the argument why a breakup makes

sense. the firm says jpmorgan addressed the issue of a split upin a more formal way than it has ever done before. it believes it will start to feel more pressure from the street and manment will eventually relent. that would be huge news. management. charlie gasparino i bet will get it first. liz: he probably will as he does with everything. second of three spacewalks with the international space station happened today. these are long ones. the crew is preparing for new docking ports that will allow spacex and boeing aircraft to dock at the station. how are these companies preparing for their space missions? more on that next. david: have central banks reached their limit helping to boost economies and market and are they covering up for mistakes and inaction of elected officials. we discussed this a lot more with princeton university professor and former vice chairman of the federal reserve alan blinder. he is coming up in just a moment. in new york state, we're reinventing how we do business, so businesses can reinvent the world.

from pharmaceuticals to 3d prototyping, biotech to clean energy. whether your business is moving, expanding or just getting started... only new york offers you zero taxes for 10 years with startup ny, business incubators that partner companies with universities, and venture capital funding for high growth industries. see how new york can grow your business and create jobs. visit ny.gov/business ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ our passion to make it real.

sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car.

don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

liz: nasa astronauts completed the second of three spacewalks outside the international space station but after the spacewalk one of the astronauts report ad little water in his helmet. david: uh-oh. phil keating live in miami. how serious is this?

doesn't sound good. >> never sounds good with water in the helmet in void of space but apparently not serious enough where nasa would actually delay sunday's plan of third of three spacewalks to upgrade the docking abilities of space station. this friday nasa managers will discuss this with much more great skepticism and intensity. the six 1/2 hour, actually six hour 43 minute spacewalk this morning went absolutely flawlessly before the senate discover ad basically a water bubble, water in his helmet, waiting in the airlock to return to inside of the space station. of the nasa says he was not in any danger during the spacewalk. it happened at the end. he noticed moisture in the helmet but nothing like a full gallon that nearly drown ad says walking italian -- drowned a spacewalking italian in 2013. they had laid cable and lube bring wait kate attracted a lot of -- lubricate attracted a lot of parts.

instead of what we've been doing since the space shuttle retired, relying on and paying russians to do it for us. spacex will shuttle astronauts up up to the space station in 2017. both tell me they are right on schedule. spacex revealed dragon 2 capsule. it seats four to seven astronauts inside. it has a unmanned flight next year which is exciting. boeing is not planning an unmanned test flight but plans to send up astronauts two times in 2017. its capsule can hold up to seven. it broke ground on the 200-foot tower at kennedy space center this friday. once the space capsules, will all be u.s. astronauts flying on american made ships up to the space station. it will allow regular amount of residents up there live, six, what is currently always is, to seven astronauts. could be a little crowded now. would you too like to know how

much taxpayers save once we don't have to rely on russians? liz: yeah, i love that. david: how much? >> we've been paying russians 70 million-dollars per person flying up in the soyuz. in the spacex, it will be $58 million per person. that is $12 million savings. liz: thank you, elon musk. david: i want to just go to miami where phil is. those not quite daring enough to travel in space you can still experience a piece of nasa history. rare never-before-seen photos of nasa's pioneering astronauts taken in space and on the moon are going up for sale in london tomorrow at an auction. the collection of about 700 vintage photos including everything from buzz aldrin's first selfie in space to ed white, the guy that died in that awful fire in 1967. his first spacewalk. notes range from $460 to $15,000. the auction is expected to make about one million dollars.

liz: we'll take it. david, after more than 40 years, the cleveland browns, my team, are changing their logo but in a very subtle way. the helmet is now a new orange, that the browns say matches the passion of the dawg pound which is the cheap seats at cleveland stadium. the face mask will be brown, representing strength and toughness of cleveland. yes the team only had two official logos in its 69 year history. that is more than the super bowls they have ever run. david: all right. let's root for the cleveland browns. speaking of sports, former nfl star terrell owens tells us what he thinks of possibility of los angeles getting a football team. liz: is the fed out of ammo when it comes to propping up the economy? what options will be left if it we falter again? who better to ask this, former federal reserve vice-chair alan blinder. >> hi, everyone, i'm gerri willis. coming up on my show at the top

of the hour, is it time to fire your financial advisor? we'll help you make that decision. that is just one of the big stories coming up on "the willis report" in just a few minutes. ♪

david: the markets still hang on to every word of janet yellen and other fed members as well but former treasury secretary robert reuben says a fed-juiced market has gone too far. he warners in a "wall street journal" article that governments and markets are

missing, quote, the moral hazard created by disproportionate focus on central banks. relying on too much on central banks. is that simple? is he right? alan blinder, princeton university professor and former federal reserve vice chairman. good to see you, professor. is there a danger, governments relying on monetary policy to dot heavy lifting? >> well, i think there is. one of the problems that you heard, you heard more about it when bernanke was chairman, is that, fiscal policy wasn't actually pushing our economy forward. it was pulling it backyard. -- backward. bernanke was all but begging congress to stop doing that. that is one example. the fed was doing more than 100% of the job. david: markets are getting lazy bit too. he mentions all sorts of ways they are pushing risk to extremes. for example, lbos done without any covenants and a lot of other

very risky behavior we're getting into right now, partly because of the free policies of central banks? >> yeah. when you have interest rates at practically zero or negative in some cases. david: that's right. >> and economy awash in liquidity, so, most anybody can get financing for anything that makes the slight lest -- slightest bit of sense, except home mortgages where the memory lingers on you will get things like that. that is another example of the problems you can get into when you rely more than 100% on the fed to stimulate the economy. david: so what is the risk? i mean other than particular investment vehicles that you know are risky going into them, like these lbos, these lbos without covenants is there a risk the entire market may become a bubble? >> well, i don't know what you mean by entire market. david: the entire stock market.

>> yeah, there is, about you it doesn't look that way to me. maybe i will have to eat those words in another six months. one never knows about the stock market but you know the stock market fund funds as you -- fundamentals as you well know are earning and interest rates. earnings are high, interest rates are low. that adds up to fundamentally high stock prices. i'm not convinced on top of that is a huge stock market bubble with the possible exception of these various and sundry social media ipos i don't even understand what they're doing. david: all right. you hinted at one of the unintended consequences some case wrest negative interest rates. we just had jpmorgan announcing they will be charging some of their big commercial clients for whom they're holding money. i'm wondering if you think that might pass over into regular savings accounts? do regular savers worry about

some day paying banks who hold their money? >> given what happened in the financial system in the last six years, nobody should say anything's impossible. i don't think that one's too likely. you know bank of new york mellon started paying, or charging very big customers for holding their money, how long ago was that, 18 months or two years ago? i don't quite remember but a while ago but they haven't charged small depositors. so i doubt that is in the offing. david: the other thing that bothers, robert rubin, this is one of his main focuses as a former treasury secretary, that by creating these artificially low interest rates we have government officials who don't feel it is necessary to really do the hard work in terms of fiscal policy, lowering taxes, lowering regulations in order to get the economy working again.

do you take his point? all right, alan blinder i think lost our feed. we just lost the feed from alan blinder. liz, we're going to move on. liz: we're talking about the nfl. it is one step closer to returning to los angeles after the city council, this is great news, sorry, going to l.a. rams game way back in the day. the l.a. council approved plans to build a football stadium. earlier stuart varney spoke with six-time pro bowler terrell owens how he feels about the nfl's return to l.a. part of our fox business rewind. >> los angeles has not had a football team in 20 years? what is this, l.a. is not a football town? >> everyone knows being here in los angeles this is definitely laker nation. clearly becoming clipper nation but, everybody is been wanting some football around here for some time now. so i think this is definitely a

step in the right direction. >> would you want to play in los angeles? >> absolutely. i think los angeles would obviously be a great place for someone like myself who is considered a great personality, flamboyant, obviously a star among stars so. >> wait, wait. wait a second, are you flamboyant? you're a great personality? is that you, terrell? is it? >> you know that's what they say, that's what they say. >> you have a wonderful smile. david: he is wonderful guy. interviewed that guy. just a terrific person. catch all of these interviews and more on foxbusiness.com right now, if you missed anything. liz: if you saw our story earlier, we've been asking you if you are worried banks may start charging you to park your money in your savings accounts, not paying you, charging you. spencer says it is not out of the question. all it takes is one big player to start it off and do so.

everyone false in line and it is norm. david: alan blinder says you can't rule anything out. wayne says, don't give them any ideas. >> lisa, said with interest rates so low how can a bank be expected to store our cash free of charge? david: scott, says it is not a savings account then, is it? really isn't. liz: that's a great point of. where this started jpmorgan is possibly charging very large clients for leaving money. david: so far it is commercial. there may be concern it is passed on. when you have interest rates as low as inflation is, interest rates are lower, historically that is very abnormal. you can't just save money holding on to it. so banks are passing on the charge. liz: is it abnormal to see record after record? well, we got two more. dow and russell hitting all-time records. russell eking out a one point gain. the dow is up 15. good enough to put them in the history books.

david: apple, we can show that as well. apple was down 2 1/2% it is still record highs. still has a market cap of about $750 billion. liz: we'll do it all over again tomorrow but for now "the willis report." >> hello, everybody, i'm gerri willis and this is "the willis report," the show where consumers are our business the supreme court hints it may side with investors in a landmark lawsuit over retirement accounts. >> if everybody has to serve the customer's best interests, everybody wins. >> the lead attorney arguing the case before the justices is here. lawmakers push new legislation on equal pay. the move is inspired by this. >> it is our time to have wage equality once and for all and equal rights for women in the united states of america! [cheers and applause] >> we'll investigate the real reason for the pay gap and if any law can fix it. the uproar over the new secretary of the va lying about his military