in fact, you sigh they had a nice run. [closing bell ringing] liz: we have terrific military men. david: god bless them. liz: ringing that closing bell at the new york stock exchange. tech is better at nasdaq. what do we have. not a cap on losses at least for major indices today. here is how stocks finished. dow jones industrials getting clobbered, taking a further leg down, down 196 points. everybody kind of followed, david. really the dow. david: producers will correct me if i'm wrong, i believe we're down again for the year. we're playing with that flat line. now we're in the negative territory for the year but don't let that stop us. we'll have a very busy hour straight ahead. liz: let's get to it. "after the bell" starts right now david: getting right into it, we

have mike murphy at rose clip capital. he will tell us one area of the world where he is cutting some exposure. bill bell, atlantic capital management, will tell us why he is bullish about the u.s. consumer and how you can cash in on that. our friend larry shover from the cme. larry, the last day of the first quarter of the year. there were jitters frankly what happened in the first quarter. whether it was corporate earnings are going to show it. is that why the market is down? >> i think that is a big reason. we'll not see any market move until we see earnings stabilization. consensus we'll see earnings down 4% what consensus thought even three months ago. also intellectual basis, yes, we know that the fed is going to hike the rates at some point but i do not think participants are really prepared for that. that is why we seem to be trapped in this broad and volatile trading range. it has been like a roller-coaster, down january, up

february, down march. now we're exactly where we started basically three months ago with nothing to show for it. >> mike, leading into every earnings season you hear the doomsayers. larry touched upon it. we have to watch to see what the numbers do but when companies downwardly revise expectations they're lowering the bar so they can leap over it. i'm looking at names you like. they are big names like citi and intel. you must not be too worried about earnings season? >> i'm really not. leading into this earnings season, liz, what you will see, what you mentioned companies clearing lowered bar. what they have to deal with is strength in the u.s. dollar putting a lot of pressure on companies. really look at technology. we know how a lot of companies there have guided lower. i think you have to look also here, u.s. domestically you're seeing a lot of impact from lower oil that is going to come in. i think it will offset or lessen the blow of that strong dollar a lot. i think the selloff that has come in here recently is buying opportunity for quality names.

david: bill bell, the u.s. consumer has not been spending. we have to be straight about it. though thought with extra money on oil they would put it into buying things. instead they're saving it. however you think the consumer is ready to empty pockets and start spending. why? >> well, i think, typically what you see is a bit of a lag between the decline in oil prices and when the consumer actually starts to spend that money. so we think as we go through the year, they will get more and more comfortable about the fact they have more money left over at end of the month. and they are going to start to spend that i think some other things at that are happening, i think employment situation is looking much, much better. i think you're going to see wage growth, continue to be very positive as we go through the year. so, i think you're going to see, enthusiasm, pick up with the consumer, particularly lower and middle income consumers who have been hit hard the last few years. liz: larry, is he right?

is this simply a case of the january, february, blues and maybe a little bit of march? suddenly we're getting better housing numbers? ara hovnanian of hovnanian enterprises coming up. there are better numbers comingt psychologically help the consumer, don't they? >> i think so. if you look at last week's number, the real spending number was better than expected or at least semiin line. i do think the consumer will come to the rescue at some point but the larger story right now we're in a market the data needs to say so before we rally unlike it was the last couple years. with that in mind there is only so much money chasing so much out there. a lot of people are overweight europe which they should be including myself, underweight u.s., the fact that we are in recovery but slowing right now. the data needs to say so. that will take some time. david: we may have a fight on our hand because mike you say exactly the opposite. you're pulling back on spending money in europe right now. why and where are you

reallocating that money? >> so at the beginning of the year we saw an opportunity to allocate money to europe to overweight europe for the first time in a long time because we saw qe coming. we heard from draghi. he was finally pulling out bazooka we talked about. david: we have to say the european stock market boomed as a result you think that will end? >> absolutely. as european markets outperformed u.s. markets we're trimming overallocation in the europe and coming back to the u.s. we think a lot of names we talked about, intel, a lot of financials like citigroup, sold 10 to 15% off their highs. that's where we're looking to allocate money. liz: that's where you're looking to allocate, but bill, where are you looking to allocate? if you had to pick your best opportunity now, we could start with sectors, we could start with names, where are you picking now? >> you really want to focus on the consumer, particularly consumer stories with most of the revenues from the united states. we're worried that the dollar

strength is going to continue through, really looking for companies with little foreign exposure. i think a really good idea right now is ross stores. ross is a discount retailer of apparel. they tend to serve lower to middle income consumers. that is the group, as i mentioned before we think will actually benefit the most from lower gas prices and increasing wages. liz: coy ask you, you like o'reilly automotive. is that a play what is better automotive market, better car sales market? >> well you know, i think with we're going to see there is, you've had lower gas prices. that typically correlates well with increases miles driven and the more miles you drive, the more your car is likely to break down and that is definitely a help to o'reilly. david: bill, that makes too much sense. too much plain ol' common sense. larry i have to talk about the dollar. by the way the dow ended up 200

points to the negative. for the first quarter, we can now say the first quarter was negative for the year 2015. let's hope for better in the second quarter. a lot of the negativity has to do with international stocks getting hit because the dollar is so strong. does that continue, the strength of the dollar? >> it does. i really do believe it does, however it will not be as broad based as it was before. we saw 4 1/2% on trade weighted basis in the first quarter including today. we're looking for half of that into the second quarter but that's still going to be a headwind to international stocks at large. thus the reason to be at weight or underweight u.s. equities. liz: mike, we can't ignore iran and we won't because david is going to be talking in just a minute about that. huge development late this afternoon. that they are extending beyond the self-imposed 6:00 p.m. eastern time deadline. suddenly we saw oil drop. the markets went to the lows of the session. why do you think that is? does that have any relation to at least the feeling, a dashed

hope we were going to see a deal by 6:00 p.m.? or that people truly are worried about the tension between iran and developed nations? >> liz, there is no disputing fact in after-hours market you saw oil drop. with that you saw our markets, dow, s&p, nasdaq all trade a lot lower. what it comes down to the market hates uncertainty. we had a deadline. we thought we would get some news by the headline. it is thrown out. that is more uncertainty to deal with. people don't like that. liz: great to see you. mike murphy, bill bell, larry shover. david: and we do have breaking news on the iran nuclear talks. they appear to have been extended into tomorrow. of course this is beyond the original deadline that was supposed to happen at 6:00 eastern, about two hours from now. the united states and five other countries trying to reach a basic framework, working toward a final agreement where all the nails will be shut down. that should happen by the end of june if everything goes okay. joining us now is former

assistant defense secretary lawrence korb. now a senior fellow at the center for american progress. good to see you. i was told last week by the way by folks that had dealings with the iranians in the past that this was going to ha. they are infamous stretching things out. just when you think they have a deal they come in with some proviso. are you surprised or not so they did this. >> i'm not surprised they did it. not just them. don't forget, the french, for example want to take harder line than we do. you have seven nations there but it was important to put a deadline because you have to bring these things to conclusion. you can't keep this temporary agreement going forever. david: yeah. you bring up an interesting, does it bother you at all that the french are being more hard-line than we are? >> no. it doesn't. i mean i think what people have to realize is that country, for example the russians have a different concern about iran than we do because it is right on the border. and so, people have different

view. we're obviously working with iran to defeat isil. so you have got a complicated situation here. so it doesn't surprise me. they have always taken a harder line to iran, given their history in the region. david: by the way we're working against iran in yemen. so we're all over the place in terms of what we're doing in military lives. another thing that is really bizarre of all this, the deal essentially innings on trusting iranians to turn over enriched-uranium, trusting the iranians to turn over that you rhine yum for a nuclear program they say doesn't exist. just that fact contradicts what they say is true. >> they claim the nuclear program is for peaceful use. david: hang on a second. i spoke a lot of stuff that know as well. the enriched-uranium they were planning to turn over to russians is specifically for nuclear bam programs. >> it certainly can be used for

that. it was to be turned into fuel rods only used for civilian purposes. that is one of the hang-ups you got here. the good news the russian foreign minister left yesterday, lavrov. he is back now. so i think they will make some progress in that area. david: real issue in interest to the iranians. they want to eliminate sanctions. they want them immediately removed before they prove good or bad fact. that is not what saudi arabiaians or our allies think should be done. why don't we trust our allies to go with their instincts on this issue because frankly they have been pretty good to us over the years? >> we'll not lift the sanctions completely. we want to make sure iran lives up to the agreement. david: one of the sticking points i heard about going on right now, that the iranians want to lift the sanctions quickly before they have proven whether they're of good faith.

>> no. don't forget not just u.s. sanctions. you have u.n. sanctions and european union. they will not all be lifted right away. that has never been part of the negotiations. they will do it gradually, so you can find out if they're going along. i think that is one of issues they're talking about. how quickly is gradually going to be but they will not be done completely. david: there is a poll lot of people are talking about saying most americans want some kind of a deal. that woo be if the iranians are true to their promise of not developing nukes over 10 years but in that poll they say 62% of americans want congress, not president obama to have final authority for a deal. are americans right on this. >> well, congress will have the final authority because if you do conveniently lift all of the sanctions, they're going to have to vote on them. but some of the sanctions been put on by executive action. so eventually congress will. but again, it is important to keep in mind, congress, for example, did not get involved in

the helsinki accords which recognized soviet control over eastern europe in return for opening up. so congress doesn't get involved. it is not just the u.s. deal. i think this is important. it is the international community is involved here because all of those countries negotiating there, with us, they all have sanctions themselves. david: all right. from a distance it looks like a mess but i'm encouraged to hear your optimistic assessment. lawrence korb, thank you very much. i appreciate you coming on. >> nice to be with you. liz: a famous rocker is taking on food giant kraft, taking on folders, taking on starbucks, with hills own line of coffee and soon his own cafe. we have the drummer for aerosmith and founder of rockin' and rose inch. he is doing that straight ahead. with joey cramer. david: been with them since 1970. trying to save money it is pretty much a losing battle unless you're in the market.

former fed chairman bernanke said it was a choice he had between the savers and economy. essentially he is taking no responsibility for the low interest rates. when will the savers really be saving? when will they start accumulating money? we'll ask marty feldstein, former chairman of the council on economic advisors coming up. liz: are you ready for breakfast all day? mcdonald's says it will do it. it may serve breakfast all day nationally as it tries to ramp up sluggish sales. they're testing in one state now. with complaints of an overcrowded menu already, is this right move? we'll debate it. >> hi, can i help you? >> yes, i would like a ham and cheese omelette or fries. >> i'm sorry we stopped breakfast but we're on the lunch menu now. >> i want breakfast. >> well you can't have it. we're not serving it.

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just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. liz: in just the last hour new york governor andrew cuomo banned non-essential state travel to indiana as part after backlash to its controversial religious freedom law and that backlash is growing. governor cuomo tweeted, new york has been and will continue to be a leader insuring all lgbt persons, lesbian, gay,

transsexual, bisexual persons will enjoy full and equal civil rights. governor mike pence insured that the law does not allow discrimination. >> i want to see on my desk at the end of this week, added to religious freedom restoration act in indian, make it clear that the law does not give business as right to deny service to anyone. we want to make it clear that indiana is open for business. liz: nine corporate ceos from some of the state's largest employers, eli lilly, anthem, indiana university health, they sent governor pence an open letter, ask the state quote immediately enact new legislation that makes it very clear near the religious freedom restoration act nor any other indiana law can be used to justify discrimination based upon sexual orientation or gender identity. david. david: former fed chair ben bernanke standing up against charges that his zero interest

policy rate, which the fed is still practicing of course is killing seniors and all the other savers out there. here is what he wrote this week. quote, i was concerned about those seniors as well but if the goal was retirees to enjoy substantially higher real returns than the feds racing interest rates prematurely would have been exactly wrong thing to do. is ben right or do seniors have a point? former chair of council of economic advisors marty feldstein has some views on all that some of which were in the his article in the today's "wall street journal" which everyone should read about interest rates. marty feldstein, thank you for coming in. for seniors, other savers, particularly seniors, don't have a lot of time or put their money in the stock market, it is very simple they're losing money and blame ben bernanke. are they right? >> i don't think so. the way that seniors got hurt in the past was by inflation. when we had higher inflation, we also had high every interest

rates -- higher interest rates but you paid taxes on those higher interest rates. so when you actually looked at your attacks return, it was often less than the inflation rate. so people were losing more money back in the bad ol' days in the late '70s and early '80s. they were losing more money then, than they forego now with today's very low inflation and very low interest rates. by the way, the saving rate, recently has been rising. saving in the last few months is averaging around 5 1/2% of after-tax income. david: there could be a lot of reasons for that. i think part of might be people are a little nervous about the future. they want to put some money aside. but clearly if inflation as low as inflation is inflation is still above interest rates, and that means, that if you're saving money you're losing money. >> but if, if you move both of them up, if you added percentage

points to the interest rate and 3 percentage points to the innation rate, you would lose more because the government would come along and tax that interest to make it worse. david: professor, your article today is putting, pointing finger at the fed saying you guys are not raising interest rates clearly enough? >> that is absolutely right. i think the fed is creating two problems with its plan for a increase in interest rates. one of those problems it could lead to higher inflation over the next few years. the unemployment rate is down to what we think of full ememployment around 5 1/2%. if you look at folks out less than six months, it is well under 4%. those are the kind of thresholds that historically have triggered more inflation. but the other thing that, worries me and i think should

worry the fed is a concern about financial instability. these very low interest rates that we've had are causing all kinds of risk-taking in the stock market, in the bond market, by bank lenders, which could come home and really be a problem. david: yeah, because people can't make money saving on regular interest on fixed income. therefore they make risky bets. it also is changing the whole banking structure because the old style where savers, would put their money into a savings deposit account which was nice and safe. then the bank would lend that money out and the money that it would make on those loans it would return to savers in interest, that whole system is falling apart because banks aren't lending money out at these low rates. >> and what a lot of folks are doing is they're putting their money into exchange traded funds for bonds. and they say, well i can sleep well at night because if i need to get out, i can get out on a

day's notice. the real problem is, that the etf, the exchange traded funds, that are holding larger and larger amounts of corporate bonds, they're going to have to sell those bonds in order to pay off the individual investors. when they go to sell those bonds, they're going to drive down the interest rate, drive up the interest rate, drive down the price of those bonds. so i think that's a very fragile part of the financial markets. david: professor, i have to get this final point in because it is something the fed is insisting on reaching a 2% boosts up inflation to that 2% level they want. why is the fed so fixated increasing inflation, taking money away from us? >> beats me. where did the 2% come from? it is just an arbitrary number that started being set by central banks around the world. and if you take out the special temporary effects of lower oil

prices, our core inflation rate is about 1 1/2%. big deal, to go from 1 1/2 to two. who cares? david: yeah. >> seems to me that the fed should really worry about doing anything that would get us back into the kinds of almost double-digit inflation that we used to have. david: i think everybody doesn't want their prices to go up. marty feldstein, good to see you. thank you, sir. appreciate you coming in. >> good to be with you. liz: sell in may, go away. that is one of wall street's favorite things year after year but if you follow it this year will you end up following it too late? david: fame, fortune and caffeine. from playing drums in a rock 'n' roll band. that wasn't enough for aerosmith's joey kramer, how his obsess tiff search for the perfect coffee made him a successful businessman. how successful? he will tell you coming up. liz: live in studio? ♪

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liz: is there really a downside to $20 a barrel oil? is luxury dead or just hibernating while the new rich in china get scared they will lose their newfound money? mcmuffins at 4:00 in the afternoon. we're talking about all of it with our panel. sell in april and go away? doesn't have the same ring as sell in may and going away. but a growing chorus, pretty smart money people say it may be more profitable. should you sell now? we have greg zuckerman, phil flynn and adam shapiro of fox business. okay, greg, take it. sell in april and go away? april's tomorrow. >> not a big believer. april is a great month on stocks on average. 9.4% gain historically, best month for stocks. stocks are not that expensive. we're trading 17 pe. compared with 15 past couple years.

for broader market that -- liz: growing chorus. there is guy named stein jacobsen. his premise you have to sell now or definitely pare, phil. he said in essence we'll possibly see tighter interest rates. that will cause all gyrations and volatility. so what? that is called volume at this time and that doesn't work? >> april showers bring bull markets. >> that is history, you agree with greg. not the people who are saying sell? >> absolutely agree with greg. i think they're too early. greg hitt the nail on head. usually bull markets don't go out on a whimper like this. usually you have fireworks here. i'm expecting to see a big month in april. liz: adam, sell it and put it under mattress or hide it? >> you better have strategy to come back in. your buddy warren buffett said the dips you want to buy. lumber liquidators closed up today. everyone else was down. be careful what you're selling.

>> you have to be in it to win it, right? when the market goes down you're buying what you wanted at a cheaper price! guggenheim partners predicting, this is a big prediction, oil prices could fall as low as mid $20 a barrel? they say this would be a good thing. others say not so much because you see layoffs in the industry but who is right on this one? what do you think, adam? >> well there are in line with citi. when anybody is in line with citi given what happened in 2008. citi said oil $22 a barrel. i don't think it would be bad for economy. i think it would prime things to get the economy much stronger than it is. liz: i'm with adam on this one, phil. a painful segment of the population, that is part of free market boom and bust cycle. >> well, first of all i don't think we're going to get to 20, that's number one. i think we're bottoming in the market right now. i'm afraid if we do get to 20 because something really bad happens. liz: hey, weren't we there in the late '90s?

>> we were, exactly. everybody thought, that the selloff, late '90s is a good example. we had asian financial crisis. oil prices went to $10 a barrel. that stirred a revolution. i will give you a another example. what about the crash in 2008? oil prices fell from $147 down to $30 a barrel. that didn't really portray good things about the economist. sometimes the price of oil, when it is going up is a good thing, but showing economic growth. if we fall to 20, might be because europe is falling apart. china or some other country to be named later. >> or you could quote, shakespeare, greg, the fault, dear brutus is not in ourselves but in the stars. oil industry said drill, baby drill. they are drilling much more, giving us energy independence but gives us a lot more supply and prices come down. >> i will disagree with the panel. i think prices will stay much lower than people think. everyone and their mother -- liz: is that bad, is it good?

>> good for the overall economy and good for the market but you don't want to get carry ad way. industry is more important than it used to be that will hurt too. prices will be low for a while. liz: consumers using money paying down debt. highest savings rate we've seen in years. i think that is a good thing. more with our brilliant panel straight ahead. are luxury retailers left in the dust, the stardust even as global economy shows signs of improvement? will mcdonald's get more loving by extending breakfast hours. david, mcmuffin at 4:00 p.m.? what do you think? david: we'll see. government releasing names of colleges that could pose a risk to students and to taxpayers. we'll have details straight ahead. mortgage rates could be headed higher this year as fed gets ready to raise rates. how are homebuilders preparing and how will that impact your search for a home? we'll talk to the chairman of homebuilder hovnanian

enterprises. the drummer of aerosmith is taking on names like kraft and starbucks with his own coffee line and his own coffee houses. we'll talk to him coming up next. ♪ ♪ ♪ (under loud music) this is the place. ♪ ♪ their beard salve is made from ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing, you see what's coming next. you see opportunity. that's what a type e does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.

david: breaking news on the iranian nuclear talks. they were supposed to end at 6:00 eastern time. that's about an hour 1/2 from now. they were extended but now the u.s. is playing hard ball, somewhat, with iran. this is according to reuters.

they say that the iranians have to make up their mind by dawn. dawn is now the deadline. of course that is dawn swiss time. so that will be about 10 hours i believe from now. so they're extending it, hour by hour. we'll see if the u.s. sticks to its guns on this but they are giving iran up until dawn to make up their minds as to whether they are going to continue with these talks. we'll keep you update throughout the hour. liz: i will check my watch. this is moving target every single time. are you shaking in your gucci loafers? despite improving world economy, brands are struggling with profits, with prada profits plunging 28% last year. is luxury dead, dying or hibernating? we bring back our panel. i want to give this one to the designer boy phil flynn. is this true, that these are names you need to get out of, the one driver is the new rich in china.

maybe they're a little nervous about their faltering economy? >> no, i think this is absolutely the time to get in because i think china is going to turn around and the reason i think will happen, liz, is quantitative easing. you can not underestimate the power of quantitative easing. when we had slowdown in china, cancel gifts or anything, all that buying went down. i think you will see a big boost to the economy. i think it will give a lift not only to luxury goods but to a lot of other commodities as well. i'm looking to big demand surge coming out of china. more rich and wealth. buy gucci and louie individual tons. liz: buy coach, kors, there are a lot of publicly-traded names. what do you think? >> used to be that brands ruled. now they're switching. people don't want brands like they used to. if they're anything, get no-name brands or unnamed. liz: who are you hanging out with? i have a 13-year-old. every minute, can i borrow your

burberry scarf. can i have your longine. i didn't even know i had this old stuff. >> she is counter trend. liz: there is name luxottica, which makes all the sunglasses for chanel and prada. they're doing well. >> this hadn't hiking bis in downtown cleveland. 20-somethings, 30 somethings who are going to become wealthy are going to want luxury. luxury never goes out of style. channel robin leech, is he still alive, life-styles of the rich and famous? what luxury is popular changes. who knows. people pay hundreds and hundreds of dollars for beats and it is not that good of headwear but they still want it. luxury never lies. liz: we remember robin leech strolling down the champs-elysees.

mcdonald's is the on champs-elysees. breakfast makes up 25% of its total sales. that is a big chunk here. can they lure customers back in by serving breakfast all day long? greg, what do you think? >> hotcakes all day long, trying to become more modern and progressive. people getting away from processed food. will complicate service and will hurt growth strategy. liz: i don't mind breakfast for dinner. >> bingo. egg mcmuffin, bring it on. i think it's a great idea. liz: phil, in chicago. >> breakfast is most important meal of the day. need to serve it 24 hours a day. i think it's a big win for them. look what happened in michael douglas in "fallingdown" you would have had a movie. >> "pulp fiction." >> people on friday night, had a few, get up, come in, want something for breakfast. liz: 3:00 in the afternoon. >> you stopped serving ten minutes ago.

>> pizza for breakfast. we need dominoes. >> cold pizza is the best for breakfast. liz: good to see all of you. greg zuckerman, phil minute, adam shapiro. david. david: i prefer 5:00 p.m. somewhere. that is my motto. attention parents and students. the education department just released a list of colleges that are now under scrutiny that they may pose a fear to students and taxpayers financially. this comes with concerns about the institution's finances. more than 500 colleges and universities have been specifically identified. you want to he associate list. to see the full list, go on facebook.com/afterthebell. we've got it up there. liz: new signs of life in the housing market. home prices rising more than expected in the month of january. one housing ceo, here live to tell us what it means for the critical spring season. it is a fox business exclusive next. >> plus, if you think keeping the beat in a rock 'n' roll band is tough, what about brewing the perfect cup of coffee while

keeping the band together? aerosmith's drummer joey kramer mastered both and tells us how and which job is tougher? don't go anywhere. joey is coming up. ♪ [announcer:] what if one stalk of broccoli could protect you from cancer? what if one push up could prevent heart disease? [man grunts] one wishful thinking, right? but there is one step you can take to help prevent another serious disease- pneumococcal pneumonia.

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liz: home prices are rising. okay, we got the latest numbers. they come from the month of january and they posted for home prices the biggest gain year-over-year since september. is that a sign that you better rush to buy a house or, even a sign that the housing market is heading for a strong spring selling season? joining me now in fox business exclusive, ara hovnanian. you know that last name. hovnanian enterprises, chairman, ceo and president of. good to see you. >> food to be back. liz: the data look good. tell us what you see in the trenches. >> spring is off to a great start, there's no question about it. liz: define a great start. what sales are you seeing? >> spring is always a good time. that is the time for the housing market to take off. we announced our quarter, and our first quarter, which ended january, we were up over 20 years. liz: revenue is up 22%. >> definitely getting better and there's more to come. we're definitely building momentum. but we're early in this

recovery. that is what people don't realize. it's a lot better than where this industry has been. we're still way below normal. liz: are you ramping up building in higher end areas? >> we're ramping up in many price points but definitely in higher end areas as well, yes. liz: seems the people who are able to purchase right now, get a mortgage, have a down payment, are people who have a chunk of change and want to live in strong areas. >> that is true but i think all price points are enjoying a little bit of a recovery and lift right now. liz: here comes the federal reserve maybe. maybe. if janet yellen and company decide at some point they have to tighten rate this is year, how will that impact you guys? >> this is the funny thing. people forget, you go all the way back to 1981. mortgage rates were 18%. there were more homes started in this country then than there were -- liz: people swallowed an 18% interest rate and right now, for a jumbo, you could get 4%,

30-year fixed. >> unbelievable. when rates go up they will have to adjust their housing type. they may have a townhouse instead after single family. or may scale back the 4,000 square foot house to a 3,000 square foot house. liz: you are worried? i'm thinking if the fed starts to tighten rates there will be gyration and volatility and fear. so is now really the time, if you can get that mortgage? >> clearly, first of all, i think the fed chairman is brilliant and very close to what is going on in housing. liz: but will she be as brilliant if she tightens rates? >> i think she is going to do it gently and she is very focused on housing's impact on economy. we met with her as industry and the fed numerous times the last few years. she is very focused on it. i can't imagine she would do anything that is harmful to the housing recovery. liz: so you're a believer in janet yellen? >> absolutely. liz: do you get a sense from your compatriots in the housing economy?

>> absolutely. liz: your first house in 1981? >> i had a 18% mortgage, hard to believe. obviously refinanced it a few times. but -- liz: are people spoiled do you think? >> people, people that are not buying right now are going to look back five years from now and says what was i thinking? i could have locked in a 4% mortgage. now i can buy a quarter of the house. that is what is going to happen. people are starting to wake up to that. i think housing market again is -- >> always come on, you're positive. you made it through the crisis. there is one thing you're doing everything right. revenues up 22% but you're still a $3 stock, ara. >> that will change. liz: how do you get that to move? >> it's 2016 is going to be our breakout year. we are really focused. we're dramatically increasing the number of locations we're in. we're buying a lot of land. we're starting them now. we'll open them during the year. 2016 breakout for revenue growth

and profit growth. liz: from your mouth to god's ears or at least janet yellen. thank you for being here. >> thanks. liz: ara hovnanian of hovnanian enterprises. david, he said this is the year. david: there you go. if you're looking to buy low this is your opportunity. from rocking out on stage from serving up a perfect cup of coffee, aerosmith's legendary drummer, joey kramer has accomplished both. the rock 'n' roll hall-of-famer is telling us how he is taking on coffee giants. that some coulding up next. >> i'm gerri willis. coming up at the top of my hour it is a secret list. government making a list of colleges in financial trouble. that is one of the consumer stories on "the willis report" coming up in a few minutes. around the world, to actively uncover, discuss and debate investment opportunities.

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maybe the better question is, why do you have that insurance company? with liberty mutual new car replacement, we'll replace the full value of your car. see car insurance in a whole new light. liberty mutual insurance. david: there is a lot of gourmet coffee out there but none of it was good enough for aerosmith drummer joey kramer. he decided to create his own brand. out of that desire came his own coffee business. it is called rockin' & roastin'. >> that is a great name. to tell us about his business and transition from rock star to business rock star, joey kramer in the house. >> hello, liz. >> hello, darling. david: >> hello, david. david: hello, joey. >> rockin' & roastin', i always heard you loved caffeine and coffee because long recording sessions you have to get through. >> yeah. >> what was out there just wasn't exactly to your liking?

>> you know, over all the years i've been on the road, the band has been together for 43 years. so i spent a lot of time on the road. i've never really been able to find a decent cup of coffee or anything i would consider form may or really -- gourmet or really good. left me to the old adage if you want something done. david: do it yourself. >> do it yourself. david: the question is, so much competition out there. you're taking on some big guns. what do you have that starbucks doesn't, for example? liz: joey. >> joey. first of all, you know, no matter what your platform is, i have a great platform, being in the band, okay. no matter what your platform is. no matter what you're selling or no matter what you're doing, the bottom line is, if you got the goods, and it's quality, it is going to happen. you know and, one of the things i'm like terribly picky about is maintaining the quality of what it is i'm doing. i'm not like a lot of other

celebrities that lend their names to a product, whatever it may be and sit back and think they will collect a check. i'm hands on all the time. i cut the coffee with the roasters. i check all the stuff that they're doing. they know exactly how i like things. they send me samples all the time, things that i'm always checking. and so, it is my baby. it is my name on there. liz: talk about where you find it. shaws, star market. >> star. liz: star market. massachusetts people. this big leap to go from these names, in america, to international. would you make that leap? would you make that attempt to go international? >> as a matter of fact i'm glad you asked that because we're, in process now with iga. they represent australia, korea, china, japan, and spoke at a conference that i iga gave just last week.

actually last week we sponsored, rockin' & roastin' sponsored a breakfast. people from india loved my coffee. people from china loved my coffee. liz: that is a billion customers. >> young people in, young people in china and japan are just coming on to coffee now. they're heavy tea drinkers. but coffee is becoming very, very popular there now. david: are you going to give up rock 'n' roll and just focus on coffee? >> i will never ever give up rocks and role. the reason i do the coffee is for the same reason i dot music. i do the music because i loved to bring joy to people's lives. i love making people happy. david: yeah. >> everybody loves coffee. david: that's right. >> but the bottom line is, no matter what all the hype is or anyone else is around the coffee is good. it's a good quality coffee. and i'm bringing a good, high quality, gourmet, usda certified organic coffee to market for reasonable price. david: god bless you. >> you don't have to be gouged

for coffee. liz: great to see you. joey kramer, rockin' & roastin', find it on supermarket shelf. >> thank you. david: you will play at all the roasting centers. >> oh, yeah. david: "willis report" is next. gerri: hello, everybody i'm gerri willis and this is "the willis report," the show where consumers are our business. the list being made public for the first time. the growing number of colleges struggling to stay in business. angie's list trusted by millions of americans for honest consumer reviews. the home warranty category is the most complained about category on angie's list. gerri: it is hit with a explosive new fraud lawsuit. we'll investigate. retirees crushed by near zero interest rates. the growing calls for federal reserve to raise rates right away. shocking new aarp report on unemployment and folk over 50. we'll have straightforward solutions to help fix