all. >> reporter: thousands of bank employees took to the streets this weekend as news spread that the bailout plan could mean that thousands of them lose their jobs. >> my money. >> reporter: your pension fund. >> my money. they were taking them from my salary every month and i'm going to lose every penny. no pension, no money, nothing. >> reporter: the painful deal comes more than a week after cyprus shut down the entire banking system because its two biggest banks were on the verge of collapse. until the withdrawal limit was steadily lowered. first to 260 euros, now only 100 euros. supermarkets were packed all weekend long for fear of shortages. with the banks closed, businesses can't pay suppliers and restock their shelves. this woman buying so much they brought her two teenage sons to

help. >> we are concerned that there will be shortages of food, so we definitely want to make sure we have -- i have a family. i have to feed my family. >> reporter: with this deal, investors are also on notice. european taxpayers will not necessarily protect you as they have in the past. with each bailout, the europeans have gotten tougher and tougher. at first senior bond holders were sure they would be protected. but they weren't protected in cyprus. that's a message for the future. despite that news of the cyprus bailout today, it was still a nerve wracking day for investors. doug, i want to pick up on these comments that really spooked out investors today from that dutch finance minister, first saying that this bank bailout in cyprus could be a template for future

bank bailouts and that banks could look to their own customers to help. how should we factor this into our thinking as american investors? >> well, i think the bank's solution in the end wasn't all too surprising. in the end the good news is the insured depositors, the deu stuck to the contract, so that's good news. i think what it means to the u.s. is you're likely to get some black clouds appearing on the horizon, but in the end, i think it's wrong to believe that the safe place to sit in this market is on the sidelines. the 30,000-foot view i think investors have to take is, there's a lot of debt and it's currently in the public sector. and that public sector debt is ultimately getting transferred to taxpayers, as it always does. so in the end you're going to see taxes rise, lower interest rates, zero interest rate policies, and quantitative

easing. the investors on the sidelines will see no return on their money and they're going to see the value of their money eroded underneath them. >> doug, my question for you is, do you think that u.s. equities have had their gains for 2013? >> i think we made a quick leap into the year, so i would say on the valuation standpoint, they may have. so when you look at u.s. equities, your prices go up for two reasons. one is the earnings go up, and two is the valuation multiple assigned to those earningsit$ up. so day-to-day we've seen about a 10% increase in the s&p. i think there's plenty of room for earnings to grow, and earnings grow as a result of people having more jobs and buying more things, result of the housing crisis being behind us and people feel more

confident and their house price goes up and they put into their home and other+j87 things. i think there's plenty of potential. there's a lot of good news going on in the u.s. you have the manufacturing renaissance. you have really an energy bonanza. so i think the market can gon higher. i think there's a real risk of having too much money in nonproductive assets on the sidelines. >> doug, for a long time, individual investors were fearful of the markets and saying they were too scared to get into the markets. and now they're so scared that they've missed this rally. what do you say to your clients when they bring up this question? is it too late to buy in now? >> in the year 2000, year 2007 and now again today, the s&p was at about 1550. what i would point out is those were different valuations. in 2000 the market was trading nearly 30 times earnings.

in 2007 it was about 16 or 17 times earnings, and today it's about 14 times earnings. so the stocks, there's much more earnings underlying them providing a foundation for valuations. so i believe one, is valuations are fair, and then we see central banks around the world have kept interest rates low in printing money. in the end those dollars will flow into stocks and make them go higher. >> doug, i want to come back to earnings. i've been reading estimates that the first quarter earnings aren't going to be particularly positive compared with a year ago. are you expecting the second half of the second three quarters of this year to be better than the first quarter of this year in terms of earnings? >> yeah, that's the best news i've heard all day, that expectations are low. in the stock market, there's this thing i call the report card phenomenon. and that is if you're expecting ds from companies and they come

with cs, it's a positive surprise. i think it's going to happen again in the second quarter, that expectations are pretty low. remember, we're coming off the fiscal cliff and the sequestration process. so estimates are pretty low. in the end i think the market will respond positively to that. >> thank you, so much doug, chief strategist at river front investment group. >> the retailer says its strategy of selling more food will help drive gains. the company with more than 10,000 stores in 39 states is a barometer for low end retailers. shares gained during the day. dell has two alternate buyout proposals now. the call announcing that carl icahn has offered, and

blackstone has offered. both offers are better than dell's deal at $13.65 a share. and the shares have traded above that price since dell made his offer. and they were up more than 2.5% today. closing at $14.51. investors seemed to like that founder richard schultz will return as chairman emeritus and add two of his colleagues to the board. the move was seen as positive because schultz won't sell his stake in the company. shares almost 2% higher today. >> apple says it's bought wifi slam. this allows consumers to use hot spots on their phones. this will allow them to find a restaurant in an airport. apple report delay paid $20 million for the company. shares rose almost $2.

apollo group which operates the university of phoenix and other for-profit educational institutions, reported a 79% drop due to lower enrollment. the stock was the biggest gainer in the s&p today, up more than 7%. coming up, we'll look at why some college graduates are having trouble with education debt and what some schools are doing about it. >> and alsoñuf still ahead, the supreme court hears a case that touches the wallet and the medicine cabinets of moat americans. first take a look at how the international markets finished the day.

some good news about prices at the pump. average gasoline prices fell a little more than 3 cents a gallon to $3.71 nationwide. the city with the highest average price in the lower 48 states? see if you can guess. chicago, $4.10. lowest average price just $3.33 a gallon is in montana. >> just days after the senate passed its first budget in four years, bill dudley, president of the federal reserve bank in new

york, told -- >> this may not immediately lead to stronger growth because of the recent increase in fiscal restraint. >> also washington today, the supreme court hearing arguments in the so-called paid to delay policy by some pharmaceutical giants which cut deals with generic drug companies to keep their cheaper versions of brand name medicines off the market. they say it ends up costing consumers more money. >> reporter: americans have overwhelmingly embracedger netwo generic drugs over brand names, but the government is asking the supreme court to consider

whether consumers have been cheated out of even more savings by so-called pay for delay drug patent deals that keep drugs from coming to market sooner. the case involved the drug androjel. the drug's distributor struck a deal with watson pharmaceutical in 2006, which keeps the generic off shelves until 2015 in exchange for a fee. the industry contends in reaching some settlements for drugs like lipitor, consumers have benefitted. >> lipitor is coming to the market five years before the expiration of the patent, saving $4.5 billion per year. this is one of many patent settlements that involved some kind of consideration that saved consumers and the federal government billions of dollars.

>> reporter: aarp and the ama argue settlements allowing big pharma companies which pay companies to wait, undermine abilities for doctors to give cost-effective prescriptions to patients. analysts from deerfield institute found generics lost 52% of them. armen . >> these deals have been structured such that generics will get on the market before the patent expires that the brand name company is protecting. >> reporter: the justices had tough questions from both sides during today's hearing. a decision is expected by late june. i'm bertha combs. >> here's jeff brennan, currently a partner at

mcdermott. the simple question, i guess is, who's winning and who's losing here? are consumers losing? are drug companies winning? >> it's really not that simple. it depends on your view about that paradigm which the ftc is challenging. they would say, and their supporters, would say that in a settlement agreement in which the innovator company pays money to the generic, that that has an effect where generics enter the market at a lower price, and consumers are worse off because they don't have an option for a lower priced alternative until a later time in the future. the opposite response to that by the parties who enter into these agreements and that the brand has a patent protecting some

aspect of its drug product. in fact, these are patent infringement cases that are getting settled. it's a fundamental aspect of our economy and it helps support why innovator drug companies invest the r&d monies to develop new drugs. and that so long as the patent settlement agreement provides for generic competition before that expires, consumers are better off because they're getting the product sooner. >> what happens, jeff, if the ftc wins this case and everything has to go back to court, all the parties have to pay enormous costs, a lot of time to work through their differences. in the end doesn't the consumer end up paying more monçíó÷ doesn't that increase the cost anyway? >> that could happen if drug companies need to spend more

time in the courtroom paying people like me to litigate their cases. that certainly races costs, and ultimately at some point gets passed along to consumers. so from that perspective, certainly the drug companies would point out, as you mention, that a rule that had a tendency to extend litigation rather than terminate it need to be taken into consideration. >> so the fcc basically says, if these lawsuits proceeded to overturn a patent, then the consumer might get those generics sooner than they otherwise would. the brand drug people say, we're doing a deal where we're going to allow generics to come to the market sooner than our patent would allow if we were to prevail on the patent case. i guess what stands out to consumers is there is the idea of something that sounds vaguely

anti-competitive about one company paying another company a fee, quote, not to compete. have i got that right? >> you've described thatwell, the situation. i think one thing that's worth keeping in mind. these are not, as one of my former colleagues once said, it's not a bag of cash that's being handed surreptitiously from the brand to the generic. these are in the ancillary agreements that stand on their own two legs, a co-promotion with the generic drug company to promote the product. in this case urologists to provide a new agreement. it's in conjunction with other arms length transaction. >> when is a decision expected? >> most likely end of the term, most people are thinking june.

>> jeff, thanks for being with us. >> thank you. >> americans owe roughly $1 trillion on student loans, more than on credit cards. if that's not enough, college graduates are being sued by universitys they attended to pay back the money they borrowed. tonight we hit a three-part series, hitting the books. >> reporter: erin graph is 39 years old and barely getting by. >> i don't go out to eat.  high equivalency courses and does some remodeling on the his $60,000 in student loans. >> i'm paying rent twice. >> reporter: now he has a court judgment against him. his university sued him last year for nonpayment of a $4,000 federal perkins loan for

low-income students. graph, who previously spoke to to bloomberg news said he is paying his other student loans but something had to give. >> i guess i could get another job where i'm working 17, 18 hours a day. >> reporter: the university wouldn't talk about his case, but said generally litigation is a last resort. >> by and large, i think most institutions are trying to work with their students. >> reporter: the problem is that delinquent student loans are growing, passing late credit card payments for the first time. and federal law requires schools to collect and sometimes sue. unlike most forms of debt, you can't get out of a student loan, not even by declaring bankruptcy. but with delinquencies rising, they're getting more aggressive about collecting, including taking their alumni to court. we found cases filed by yale and

the university of pennsylvania. a 35% jump from the year before. the university has declined to comment. graph hopes his case starts a dialogue. >> reporter: let's start to talk about why is college so expensive. what are we getting for our money when we put our money into these institutions? >> reporter: it's a conversation universitys are willing to have, but they also want their money. >> such a tough situation. first of all, a lot of these graduates, they have all this debt, and they don't have a job and even if they find a job, it's going to take a long time to pay or $60,000, $100,000 or more. >> this is why universitys are going online to reduce that. tomorrow, in part two of our

series, sharon efferson is going to report on the demand to make financial literacy a core demand in high schools. >> coming up, too young to retire but not too young to buy a retirement home. we'll look at new wave of buyers. first here's how treasures and commodities closed out the day.

tomorrow we'll get a report on durable goods, which measures, among other things, the appliances going into new homes. robert schular will be our guest on nightly business report. we'll also get the latest numbers on new home sales for february. >> speaking of housing, house prices are generally moving up, but considering how far they fell in states like florida, bargain hunters, some of the most unlikely shoppers, are still finding lots of values. >> reporter: at century village, a community retirement in boca raton, seniors get in early. >> this is my little getaway place. >> reporter: at 56, he is not a retiree. what he is is an astute buyer.

>> i bout an apartment that was valued at $75,000 and i picked it up for $25,000. so it comes with the peace of mind that i have some place. i know that if i need to go there, i can go there. >> reporter: from the height of the housing boom in 2006 to the bottom in 2011, home prices fell. now they're headed up again and that has created a great opportunity. while the median age here is coming down, you still have to be 55 years old to live here. but that hasn't stopped younger investors from jumping in and waiting it out till retirement. >> we see a significant up take in property values. so they elect to buy now. >> reporter: the vacancy rate for the community is around 2%,

because low prices are luring buyers. as for his older neighbors, charlie rogue has nothing but respect. but he doesn't know many of them because he's usually out at work. for nightly business report, i'm diana olick in boca raton, florida. >> this is an interesting angle in real estate, but i'm hearing more and more people saying i wish i had bought some properties during the downturn. >> absolutely. some of those prices came down so far, but it took a brave human being to go in at the depth of the housing crash in those cities like miami, las vegas, riverside county in california. really took some nerve to do it. i didn't do it. >> i didn't either. that's it for us on nightly business report. thanks so much for watching. >> have a great evening. we'll see you back here tomorrow night. ♪)

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