that taste outta sight. hi, everyone, welcome to "on the money." a wild week for the market. worries about emerging markets. the fed makes a move. what all that means to your money. americans retirement crisis. does president obama's plan help? are you saving enough. plus matt damon, bono, not just dropping names here. why they brought their star power to switzerland and how some big celebrities are adding to the resume. >> my dad used to say to me when are you going to get a real job? and i would say i am with the band. what do you mean? he would say with the bank. a real job. and "on the money" starts right now. here's a look at what is making news. we head into the new week on the money. america's economy is growing at a fair pace.

the gross domestic product, measure of size and strength of the economy, the growth of 3.2% for the fourth quarter. consumer spending, business investment and exports were all strong. the markets like that news. the dow rising triple digits thursday. the nasdaq climbing almost 2%. that was after a week that saw a return of volatility and a triple digit decline in the dow on wednesday. the markets fell friday on worries about emerging markets. after a two day meeting federal reserve open market committee voted to slow the rate it is buying bonds and mortgage backed securities. by $10 billion a month. the second move. the fed will be purchasing assets at the clip of $65 billion a month. down from $85 billion end of last year. at least this is the sign in part of confidence in the economy. wrapping up the heaviest earnings week of the season, the report card is mixed. apple ahead of expectations. though guidance was light. the same true of yahoo!. facebook had a blowout quarter. google missed on earnings.

revenue came in ahead. amazon fell short. the outlook was weaker. among industrials, caterpillar, boeing, ford, beat analysts. exxon fell short. markets weren't thrilled with the taper. on second glance maybe it wasn't so bad? how strong is america's economy what does it mean to your port folio. joining me a former federal reserve governor. randy, thank you for being here today. we watched what the fed did last week. and there were a lot of concerns. there have been questions about what happened to the economy. there have been question as but what happened to the economy. was this the right decision to continue the taper? >> well, i think it makes sense for them to continue, given the data that they had. certainly the economy was still along okay. little weaker employment report at the beginning of the month. but basically what they're doing they're still providing stimulus to the economy. they're just, reducing the pace at which they're providing the stimulus. i think there is a bit of confusion the punch bowl is

being take any way. they're buying a lot of assets every month. >> i heard some one describe it, if you are a kid that gets an allowance from your parents, get $5 every week. suddenly they're giving you $3. though you are getting an allowance. you are getting less allowance and therefore change your spending patterns. its that what is happening here? >> this is a very, very small change. remember the chairman started talking about this back in may and june. so, people have had nine months to make some adjustments. and started doing this in december. there didn't seem to be much market dislocation. not sure just the fed's actions. turmoil in emerging markets started a few weeks ago. that is creating chaos, that rippled through to our markets as well. how big of a role does the fed play in any of that, or what chan they do about it. >> there is a lot that is -- home grown in these economies. many of the economies have, high

inflation. and they have been slow to raise rates.lcñjt many of the economies have very big current account deficits. imbalance between purchases and sales. in addition, many countries have, elections coming up. so all of the pieces of political uncertainty, economic uncertainty have led to jitters. it is really hard to blame everything on to the fed. particularly when this policy was announced a long time ago. >> look at what has been happening. i wouldn't kid this a -- i wouldn't consider this a crisis. not yet. if this or something else develops into a full blown crisis ills. and certainly can respond to the previous crisis. one they can provide international swap agreements. that was important at helping stabilize countries like korea and others. and the swap agreements. and dollar liquidity around the world to central banks. and two, if, if things start to become challenged here. they can increase asset

purchases. >> ben bernanke's last day was friday. you worked closely with him. how would you grade his work and legacy? >> we gave ben a bunch of different exams. one exam was can you flight deflation. i think the chairman gets high marks for that. because we voided a japan-style, to mild lengthy deflation. and we avoided certainly, 1930s great depression. sharp, sharp deflation. i think extremely high marks on that. with the quantitative easing i guess we have to give incomplete. we are seeing there could be bumps in the road for the unwinding. we are still a little uncertain about the cost versus the benefit. >> randy. want to thank you very much for joining us. it has been a rocky week for stocks.

watching emerging markets. the fed rand of course earnings season. and what is next? where do we go from here? joining me, jim paulson, chief investment strategist at wells capital management. jim, thank you for joining us. >> thank you for having me. >> people are getting nervous. a lot of volatility. a lot of that volatility taking stocks lower. are people right to be concerned at this point? are you concerned? a volatile, flattish market. getting a taste here at the front end. i sort of sense this one is getting closer to an end. we may rally over the next few weeks here. and i think the biggest thing, becky, is economic momentum. while worsening in the emerging world is staying good here in the united states. we just found out this week, we grew at 3.2% in the fourth quarter. after 4.1 in the third. we just had two back to back quarters of 5% growth coming

from the private sector. i think that time of -- and eventually bring buyers back in. >> if the emerging markets are fragile. u.s. is stable. you would think this wouldn't be hitting our markets like this. and you would think this is the place investors are coming for safety. >> i think so. you would see the dollar go up in a safe haven bid. that we are not seeing yet. and i really think this is more about a market, a consensus that was thinking the market is due for a correction and looking for reasons and we found a little built of reason and emerging world. starting to taper. really quick to label it a crisis. really quick to label it a correction. i think that's good. if you have a lot of people buying on the dips i would be more worried. i think the fact that most people are prepared for the

worst, makes it turn out better than expected. >> jim, quick investing advice you would be giving people right now? >> i would lean at taking advantage of the correction. underweighted equities get more weighted. becky, i would look at this the opportunities to take bond off the table. at better prices if you haven't done that. in the stock market, i would look at some cyclical sectors getting beat up. materials and industrials. i think a great time to enter the manufacturing sector, if you haven't to this point. >> jim, thank you so much. great talking to you. >> thank you for having me, becky. >> up next, we are on the money. if 90 is the new 70. millions of americans will have to sock away a lot more money for their golden years. its president obama's new retirement plan the answer. the world's largest money manager tells me what he thinks. and later, making deals. why some of the world's biggest stars head to the alps to take meetings with bankers and ceos, a global who's who with a cause. >> i am not the biggest star here. [ male announcer ] pillsbury grands biscuits.

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#. >> i will direct the treasury to create a new way for working americans to start their own retirement savings. it is a new savings bond that encourages folks to build a nest egg. >> president obama announced a new pilot program called my ra during his state of the union address. the program will create government backed retirement accounts that will provide millions of americans access to a retirement plan. will it stem the retirement crisis? joining us now with his take, the world's largest money manager, blackrock chairman and ceo larry fink. larry, thank you for being here today. >> becomy, thank you for having me. >> you have been talking about this coming retirement crisis for a long time. how big of a problem for individuals and for our economy? >> well, i think it is most

serious crisis that we have today. but it know it going to be manifested in, in today, it is going to be manifesting over the next 20 and 30 and 40 years. we, we are witnessing a total lack of savings towards a retirement by, by, a large component of our population today. and importantly, if you are part of a company plan that once was defined benefit plan now contribution plan, we are seeing so many people are not participating in those plans. and though, most americans today have a real shortage in what they, they need toward retirement. talking about the private part of -- of our economy. the public sector actually, the men and women have, probably a appropriate, pools of money for retirement. in the private sector, in the small jobs men and women working part time. so this crisis is going to be severe. and the crisis is going to be probably very debilitating for our economy if we don't address

it now. >> what do you think is happening? are americans not saving because they can't afford to is? it because they're afraid of the markets? >> i think you pointed to two possible reasons why they're not saving. i mean, i think it is a struggle. you know, this all linked toward the lack of wage growth in our economy. in many cases, lack of mobility toward jobs which, more and more people are talking about. people are, spending what they're earning just to stay afloat. but in other cases i think, people forgot how to save. this is why i applaud the president in just introducing the concept of savings. this is certainly not going to be enough. what the president announced is a -- a very modest plan in terms of dollars that one saves. and it is also a very -- low yielding plan because, because i think the first step in saving is something with total security. and the president announced a

plan in which people will be investing in u.s. treasury. so your principle is protected. you're earning a modest return. and the same type of plan many public workers have. >> right. that plan has a ten-year return of 3.61%. its that something that is enough for savings? you are saying this is just a good first step? >> because of longevity, and because of -- of -- the -- the amount of money that people will probably need when they retire, they're going to have find instruments that are going to earn 7% or 8%. advocating long term investment strategy inequities as a component of any retirement plan. unfortunately we all know, equities go up and down. and, this is why i believe what the president pro posed is a good one. because the the first step -- and the first step is one that your principle is always protected. >> larry, you bring up good points about longevity. any statistics you can throw out

out us in terms of how long we are expected to live. impossible to say how much somebody should save. what if you are some body makes $100,000, $150,000 a year. >> statistically if you are a couple in good health at 60 years old. one of the two is going to live to 92. >> wow. >> you have a 30-year life left. so, when we talk about retirement and longevity and savings, it also should now envelop the thought processes when do you retire? i have been advocating, it makes no sense for very productive people who are in good health at 60 years old to even think about retirement because you have a third of your life left. and, so, we are all going to live longer. now statistically, the men and women who are in their 20s, probably, all of them are going to live -- statistically into their 90s. so if you are, itch you are 20 years old. you have plenty of time to

prepare. i speak to students who are leaving -- leaving academia and going into business, i have been recommending them, repeatedly that they could, should start a savings plan toward retirement imed me yacm immediately. >> larry, thank you straer much. an issue we all need to think about. good news we, are living longer. bad news, we have to figure how to pay for it. thank you for joining us and bringing us more on the subject. appreciate it. >> thank you becky, have a good day. >> on the money, what the swiss alps, matt damon

>> high in the swiss alps at annual meeting of the world economic forum, some of the wealthiest andinfluential people gathered. a spot for celebrities to pal around with bankers or a cause. >> we launched, six years ago, red, here. so we can always say, not just a talk and shop. >> musician philanthropist bono joined with bank of america ceo, b of a reaches one of every two american household to announce is nsh ti is nesh tinitiative to prevent child transmission of hiv. >> you make a splash. you are doing an ad at the super bowl. >> u2 was given a song from the album, sneak peek from the album, "invisible" for 24 hours

you can download this free. the bank will match or sggive $ for every time people download. a big deal. my dad used to say to me when are you going to got a real job? i would say, i am with the band. he would say with the bank. a real job. bank of america is a game changer. we couldn't have dreamed when we started red that we would have this kind of leadership. guess what? by 2015, if we keep the pressure on, those women won't have to pass that virus on. we can get them the medication. 700 babies are born every day with this hiv virus. and then you have pay for the rest of their life off to keep them well. or they don't have to be. and, and that's so exciting. like 40 cents a day. i mean, this is a doable thing. not sort of we are here, aren't we great. and one day. not one day.

it's coming up. and i think one of the things, attracted to, was that you felt that, your consumers and employees liked that this was finite. >> it's definable. experts have off to get it done. our job is bring money to the experts. finite ability over the course of a couple years to solve it. our view, an enabling escapability. we are proud. >> how did u 2 forge this relationship. >> they are doing really good stuff. though i think the banking community has really let down let down the world over the last few years. some people have tried to stick with val use. i think that they understand that people work for them, work better when they stand for something. i am very happy to work with -- anybody who wants to stop those women giving those, that virus to their children. and i am just grateful, that it happens i really like them.

but even if i didn't. i would be sitting here giving you the interview and telling you how they're saving lives. >> also turning heads. oscar winner matt damon. co-founder of walterter.org, to bring microfinance loan capital to those in the developing world without access to clean water. >> our partners identified access to affordable capital as one of their biggest points. massive demand for these loans. walter loa water loans. best thing we could do, and saw tremendous demand and all of these, social, social -- this, social capital markets. maybe marry the two up. >> yeah, a good place to do that. a lot of money around here. has the it been easy to get gettings, biggest star here. >> i'm not the biggest star here. i don't know where i rank. since we last -- did this show. we have -- we have added almost

another 1 million, we have, brought clean water to another 1 million people. the model of alug people, giving people the tools to help themselves rather than just by doing straight charity. has been so effective. >> gary, the loans that are given out. can you explain to people again. when they get these loans. these are microloans. high rate of return. 98% get paid back. >> 98%. people value water, sanitation so much. even people in pocher t poverty. they want few get access to walter connection at their home. they don't spend all day scavenging for water. they can get that loan. they can pay to get connected to the local water utility. they can take the time that they have now. work at a paying job. repay the loan. >> i know you have a goal of raising $12 million. >> this is going as well as we ever could have hoped for it to

go. i think that the way, the market based solution like this, i think really does have an appeal for, for the crowd out here. >> do you expect it will be small, individual investors who are doing this. putting a little toward the fund. or wealthier people putting a lot toward the fund. or do you care? >> there is a huge social market of very wealthy investors looking for these types of investments. i mean if any of the business leaders want to give us $25 we'll take it. >> we will be watching the outcome both announcements. water.org and bank of america's promise to fight aid. you can download u 2s sing m this weekend. of next a look at the news that will have an impact on the money. and as we head to break, take a look at how the stock market ended the week.

for more on the show and guests go to our website -- >> you can follow us on twitter@onthemoney. here are the stories coming up that may move the markets and impact money. earnings from disney, twitter, 21st century fox and michael kors. and thursday, new york fashion week kicks off with j. crew,

torrie birch and dkny. friday, kong regs hcongress has raise the nation's debt ceiling. and getting the big number of the week. jobs report for january. this is typically a market mover. this time around more important though. given concerns about the economy and markets. that's the show for today. thank you for joining us. my guest next week, at & t, c.e.o., randall stevenson. each week keep it here. we are on the money. have a great one. i will see you next weekend. ♪

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>> chrisy and open are make 60 look so good. big anniversary her and leno ultimate exit interview hi even. welcome to "access hollywood". i'm shaun robinson. we begin with big news this weekend that is superbowl. before the big game we caught up with the players including denver quarterback peyton manning and seattle rich sherman who has had a lot of attention with the rant following seattle play off victory. now meet with the real man behind the loud voice. >> people take time to know about me and learn about me it's more to me than that rant rant. >> like 4.2 gpa in high school and degree from stanford drawing the biggest crowd for the media day. to