. >>> and some surprising news from fannie mae today, it made money and a lot of it. it earned $58 billion last quarter, largest profit effort. sa fannie plans to use all of that to pay off uncle sam. the u.s. treasury bailed out fannie mae during the financial crisis. it expects to stay profitable for the foreseeable future. >>> a dire warning about the impact of the more than $1 trillion in student loan debt. the consumer financial protection bureau says much outstanding debt could have a devastating, domino affect on the economy, depleting savings, limiting spending on new cars sxuting off retirement savings indefinitely. and as diana oelich tells us, it could also have a serious impact on the housing market. >> sophia wanted to buy a home two years ago, but her student loans stood in the way. >> it definitely took a long longer than i anticipated. >> facing in $60,000 in debt from graduate and undergraduate schools, she moved back in with her parents. the only way we could save aggressively while paying down debt. >> i consider myself lucky that i had a place i cou

"what fannie mae is about to do is to reverse the tax credits that it wiped out and remit that to the treasury. so we'll get some help with that $53 billion." though it's a long way from a surplus, this year's deficit is about a third less than it was last year at this time. it also pushes back the deadline for raising the debt ceiling into october. president obama will be in texas today where he will talk about new ways to grow the economy through advances in technology. the president will visit with students at manor new technology high school, then later deliver a speech at applied materials in austin. austin managed to avoid a major hit during the recession. the president's trip today marks the first of a series of stops highlighting new economic models. an incubator for start-ups in chicago called 1871, for the year the city began rebuilding itself after the great fire, is celebrating a year of success. the digital co-op has provided space in chicago's merchandise mart for 225 start-ups - many of them no bigger than an idea and a laptop computer helping motorists, for example, fi

now fannie mae and freddie mac. were taken into conservatorship and two thousand and eight when they received over one hundred seventeen billion dollars in taxpayer bailouts now there's been a lot of headlines about fannie and freddie what record profits last quarter further the mortgage giants will pay the u.s. treasury fifty nine billion dollars in dividends which will put off the debt ceiling debate in congress now some have reported that fannie and freddie's profits were driven by a recovering housing market but according to fat fannie ten q. her net income was primarily driven by record re crediting tax deferred assets to further discuss this i have with me john pryor of politico thanks for having me thanks for joining us so let's talk about this fifty nine billion dollars that fannie and freddie are going to pay to the treasury fifty billion of that is accountable due to deferred tax assets what does this mean what are they and how do they generate so much money right so back in two thousand and eight when thes

he is the former chief credit officer for fannie mae. great to see you. >> thanks.ew health care law is getting hit by another lawsuit. this time from small business folks who claim that the irs is being used for obamacare implementation in a way that could put them out of business. coming up we hear from a business owner who is leading the charge against the irs in a must-see interview. you don't want to miss it. ♪ . my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects cou

i asked the ceo of fannie mae this morning if this new profitability might affect the future of fanniee said that there is a risk that policymakers will look at this profitability and decide that they don't need to do any reform of the housing finance system and he said that "would be a mistake." all the housing cronies i follow on twitter are ablaze this morning talking about this new profitability at fannie mae and freddie mac and what that's going to mean for the two's future going forward and also what the government is going do with this billions of dollars that it is getting from the two mortgage giants. >> they've covered this so well. people at home are saying, wait a second, fannie mae -- this is really incredible. she's spot-on. >> it is amazing to see the number and hear them say we don't know if we're going to exist after conservative toreship. >> these guys used to be very profitable. this was a great stock for a long time. the more housing comes back, the more they'll pay to treasury. >> many thanks to diana. >>> david faber is live in sin city at the sky bridge alternati

it will bring up a lot of what you do with the now incredibly profitable fannie mae and freddie mac. this is like a feel-good story. >> this is a great story. the fed is on permanent easing with qe. and fannie and freddie are back. let's call mark faber and see what he thinks. they're out spanning greenspan. it's really working well. everybody should own a house i think. don't you? are we doing it again? can you imagine how easy the fed is and everything is being guaranteed by government agency. that part is true. >> yeah. >> do you really need to work to get a house? do you know an address to get a house? is it really that important? it's not. if it's going to go up in value, it doesn't really matter. we need 80% home ownership. we're going to do this again. >> yeah. >> did you not think of that? >> no, no, no. i was thinking this is a bad -- i wanted to say brought to you by ben bernanke at the bottom. >> i know you like the book that you're going to write as a sequel to this one. another visit to the golden globes, more stars? if it happened? >> very clever you are. we're an hour

joining me at the table, former governor eliot spitzer and from the fannie mae research, jim carr and congressman cummings. this is what would happen if we can get principle reduction, discount the amount people owe on their homes. you asked for that. >> i asked for that report. the findings were very clear. the congressional budget office, which was independent said it's a win-win-win. a win for homeowners and taxpayers and a win for the economy. they recommended we do this and be done as fast as possible. >> the question is, why hasn't it been done? a few theories. one is the dimarco theory of fha. and the other is the administration's theory and this book about tim geithner talking about a program created by the administration as part of the t.a.r.p. money to help people work through foreclosures. we estimate the banks can work through 10 million foreclosures provides they help foam the runway for them. >> all my discussions with the administration, they claim they are in disagreement with dimarco. he put out a report where it seems to say to me it showed excellent evidence we shou

congressman mel watt as director of the federal housing finance agency this is the agency that oversees fannie mae and freddie mac. now his nomination garnered both bipartisan support and criticism tennessee senator bob corker it said in a statement i cannot be more disappointed in this nomination this gives new meaning to the adage that the foxes guarding the hen house on the other hand white house support from several republicans including senator richard burr and representative spencer baucus this is the second time obama has announced a nominee from north carolina to head the f.h. f.a. and she thousand and ten the president nominated joseph smith the north carolina commissioner of banks for the position but his confirmation failed that the republicans questions miss independence from the white house since the agency's creation in two thousand and eight and has yet to have a senate confirmed director and the post was nomination and contacts and confirmed he will take the helm from edward demarco the interim director since two thousand and nine. thousand courage to many groups to demand his remo

. >>> all of that building and buying means uncle sam is about to get a big check from fannie mae. first record profit will net the treasury $59 billion dividend check next month. look out netflix. youtube is now charging per month or per channel. >>> they are speeding up wi-fi on airlines. and blue crates backed up traffic for miles. >> and whose girl made maxim's top 100 list. >>> great britain's royal bad boy, prince harry of wales is taking washington by storm. he's here for a week. it's his first trip to last week since last year's naked vegas romp. he's been able to keep his clothes on. tracie potts has all the details. >> so loud, security had to quiet them. even capitol hill staffers could not resist getting a glimpse of the prince. >> the expectation of every human being is no more than a dream so long as these dreadful weapons remain where they are. >> the prince unexpectedly stopped by the white house for afternoon tea where he helped children make mother's day gifts. today he will lay a wreath at arlington cemetery. >> he spent much of his time supporting rounded warrio

even if you're not a fannie mae, not a fannie mae product a lot of lenders will follow their guidelinesmae has specific guidelines regarding condominiums on presail, the -- presale, percentage of units owner occupied. historically condominium units have more credit risk than a single-family home. >> do they still have more credit risk than a single-family home? >> yes. >> if you got the 1 1/2 million in cash you can get one of the places behind me. but look at the view you will get. that is manhattan over there you see the carnival cruise ship, i believe that is carnival docked at the pier. that is the view people will have in condo developments up and down the hudson. credit scores are still very important. used to be easy to get a loan but nowadays, anyone between 620 and 740, a little tougher than if you have a credit score 740. most of us fall between 620 and 740. ashley. ashley: that is the issue. what a view indeed especially at nighttime. it is all lit up. adam shapiro. tracy: taking ferry to work it is a really nice way to commute. i'm telling you. from the east coast we'll move

sallie mae, when you hear that name, sounds like fannie mae or freddie mac, is that part of the government or not? it's occupying some weird space. what is sallie mae status? they're private but have a government guarantee? >> sallie mae started off as a government sponsored enterprise like fannie mae and freddie mac and spun off in 2004 and now a publicly traded company. most their assets are federally guaranteed loans the vast majority of their balance sheet. even though they're a public company, most students, most borrowers, most families when they take out sallie mae loans, they assume it's somehow guaranteed or blessed by the government and it's not. that source of confusion is leading a lot of families down the wrong path. >> people talk about the student loan bubble all the time. what is driving the fact that sallie mae is recording record profits and sallie mae said in your article we're cutting rates down, we're providing a great service and great for people to take out loans at the rates we're offering because returns on education is so high. why is sallie mae so profitable in t

regulates fannie mae and freddie mac. we will also take your call, e-mails and tweets. ♪ host: congress returns after a week-long recess to take up in number of issues. the senate foreign relations committee will hear testimony from debra jones, president obama's choice to replace chris stevens, the u.s. ambassador killed in benghazi. look for coverage on c-span.org. also in the senate, the homeland security panel will focus on the border security provision in the gang of eight's and immigration proposal. we want to get your take on usa today's front-page story from monday -- and \ / \ send us a tweet, post your comments on facebook.com, or e- mail us. here is "usa today" -- here is a quote from mark zandi -- we want to know what impact this economic growth has had on your paycheck. start dialing in now. good social media, code twitter, go to facebook. facebook. few of from we want to hear about your wages during this economic recovery, during the recession, what has happened. a little bit more from "usa today," this was

. >> sally mae, when you hear that name, because it sounds like fannie mae or freddie mac, you think part of the government or not? what is sally mae's status? they are private but have a government guarantee? >> sally may start off as a government sponsored enterprise, like freddie mac and fannie mae. they were privatized in 2004 and now are a privately traded company. most of the assets are federally guaranteed loans. even though they are a public company, most students, most borrowers and families when they take out sally mae loans, they assume it is guaranteed or blessed by the government and it is not. the source of confusion is leading a lot of family s down the wrong path. >> we talk about the student loan bubble all the time. what is driving the fact that sally mae is recording record profits and sally mae said look we cut down rates, provide a valuable service. it is a good investment for people to take out loans at the interest rates we are offering because the returns on education are so high. why is sally mae so profitable during this period? what's going on in that market

. >>> fannie mae and freddie mac seem to be on the rebound and profits are rising and both are set totreasury billions every month. treasury is making money. why aren't shareholders? consumer advocates and freddie and fannie shareholder ralph nader asking that. liz: sell in may and go away didn't ring true for stocks, exempt for today. it may be pretty solid in the commodities pits. is the selloff yet to continue when it comes to the assets on your screen? we're heading into june. we have the summer commodity playbook coming up next. don't go away. ♪ . [ male announcer ] need help keeping your digestive balance in sync? try align. it's the number one recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align. liz: while stocks soared in may excluding today of course, commodities did not fare nearly as well. take a look. we have natural gas and silver both falling about 8%. look at gold, down about 5.5%. and oil ending lower by nearly 2%. david: what is ahead as we head into summer trading season? phil flynn, senior market analyst price futures group.

. >> of course, $50 billion is a pavement a tax gimmick from fannie mae.et the 60 million? they borrow it. neil: a lot of it is a tax increase. that part is there temporarily because with the fiscal cliff came at the end of the year there was a huge pre-emptive realization and bonuses were paid and 100 billion as one time revenue. neil: so you say with a focus on the latest scandal and there are a lot of them we will be distracted. >> we almost have the imperfect storm with the stock market with a high of the fed monetary crack cocaine that is the stock market and distracted with scandals in washington and the cbo put out rosy scenario forecast saying the problem is solving itself. therefore there is no hope that the political machinery willing gauge and drift into the teefourteen election in both parties are positioning in 2014 and then they're adding tuesday long-term debt and long-term debt regardless of the onetime pickup is in the $1 trillion range as far as the eye can see. neil: just like the golden moment. so they have said another spin on its. des

replace julius janikowski and also expected to top melvin watt to head the agency which oversees fannie mae and freddie mac. private sector payrolls ahead of friday's jobs report. also manufacturing and construction spending. back to you. >> hoping for good numbers there. thank you, kayla. >>> the past lthree years have been sell away and go away. but this way stocks in your retirement accounted said good-bye to april on a high note. with all three major u.s. indices up double digits. if the fed continues to ease money policies today, the streak could continue, we hope. >>> tuesday apple holding a record $17 billion bond auction that helps finance $100 billion pay out to shareholders. >>> dreamworks is said to be close to a deal to acquire awe amness tv. >>> the blackstone group has joined the push to put hundreds of thousands of vets back to work. yahoo!'s president will double maternity leave. giving four months of paid leave to new moms and two months to new dads. "consumer reports" claims more than half of hundreds of ground turkey samples tested contained fecal bacteria while 90% conta

you have fannie mae, the much beleaguered, chastised, reprimanded institution paying back its loans. >> $59.4 billion. >> freddie mac paying back what it goes. >> $7 billion from freddie mac. >> i read "the wall street journal" too. >> sometimes you surprise me, like three times a show. cheer up to the republicans? it is the democrats who said that a sequester would mean the end of the world. unemployment, we would reduce gdp. it andnt ahead and did it is working. i am very cheery. else can you do on this panel but laugh? the president can take credit for some of the improvement because the economy is improving. the answer is growth. this is how you get rid of the deficit, through grow. >> not through government handouts, in other words. >> we do not need to go there. sequestration is hurting some parts of the country. ourselves, on the vulnerable are the ones that are feeling the effect. they cannot pull together a lobby -- >> the answer is growth. the economy is improving, the economy is growing. people get jobs and there is more money in the treasuryhat will help. >>t isbout consu

the congressional budget office cites higher tax revenues and better than expected payments from fannie mae freddie mac. >>> o.j. simpson is expected to testify in court today as he bids for a new trial in his 2008 armed robbery and kidnapping case. he is saying his previous attorney caused bad legal advice. >>> and the navy made history tuesday by launching an unmanned jet from an aircraft carrier. the stealth drone roared off "the uss george h.w. bush" and flew a series of maneuvers before landing at an air station in maryland. >>> now for your first look at today's business headlines. we turn to jackie deangelis. good morning. >> good morning to you. stock futures lower this morning following yesterday's rally. that was spurred partly by bullish comments on cnbc by a top hedge understood manager. the dow posting its 18th-straight gain on a tuesday. 30% of the stocks in the s&p 500 hit all-time highs. >>> meanwhile, walmart isn't signing on to a global agreement over safety at factories in bangladesh. the retail giant says its own safety plans, including stepping up inspections at factori

all of that building and buying means uncle sam is about to get a big check from fannie mae.ecord first quarter profit will net the treasury a $59 billion dividend. check next month. >>> elsewhere we knew it was coming. youtube is now charging a few dollars a month or per clip for channels ranging from sesame street to ufc. >>> regulators are in talks to speed up your wifi by using satellite air waves instead of earth-based signals. >>> whole foods is recalling a chicken and vegan chicken salad after the two were mislabeled and mixed up at some of its stores this week. >>> and check it out. a soda truck jackknifed and spilled mountains of dew on to the road in pennsylvania. the sea of green boxes and blue creates backed up traffic for miles. >>> it's kobe bryant ver vus his mom. deta details coming up. >>> and how close are the nation's number one and number two in command? we'll tell you. (announcer) wake them up with breakfast-favorite flavors like salmon, egg, cheese, and whole grain oats. friskies. now serving breakfast. a regular guy with an irregular heartbeat. the usua

some of the money will come from bailed out mortgage giants fannie mae and freddie mac making large dividend payments to the government this year. the economic outlook is less assuring in europe. the region's economy shrank for the sixth consecutive quarter. france fell into a double-dip recession, with president francois hollande expecting lower growth this year. analysts are not expecting any major policy shifts from euro leaders. in germany, chancellor angela merkel faces re-election in september. and the european central bank has already cut rates to a record low. next week, european commissioners will meet in brussels to discuss boosting economic growth. the largest bank in europe is talking about letting 14,000 workers go to cut costs. hsbc set out a plan to save $3 billion by eliminating jobs, along with selling assets while expanding in faster-growing markets. bloomberberg news reports analysts view it as a sign the bank is struggling to maintain its performance. the hsbc job cuts will be worldwide. as a follow-up to the oil market manipulation investigation we told you about yesterd

>> to be clear, under the terms the federal government went in to help fannie mae and freddie mac, theirey, it's going into the federal treasury. they have not yet paid back the taxpayer, but the goal is to pay taxpayers back. i think that it's a little complicated why this payment is being made but it reflects the fact that their core operations are more profitable, which is a good thing. it's a good thing they're paying back taxpayers. it doesn't address the long-term need for reform of our housing system. we need to make sure that we're doing everything we can to make sure the middle class homeowners can refinance their homes if they're under water or high-interest loans they can't get refinanced. we also need to look at the future of housing finance to make sure we have a system that balances two very important concerns. one is access to credit for qualified borrows so we can keep homeownership as an ideal for the american family and keep construction going. on the other hand, make sure we don't create ever again a situation where the taxpayer has to assume the risk for decisions tha

because right now fannie mae and freddie mac are doing better technically.you look at the housing market, the housing market is getting stronger over the last year oso. fannie mae and freddie mac are benefiting and doing better in the sense that they are making more money. but they still have all of this major debt from the government and also these dividends that they have been paying out. 10% a year of dividends of money that they don't really have. and so in a sense, you are paying but you are paying with money that isn't necessarily there. so, it's a little bit confusing. i know it's a bit in the weeds here. >> clayton: i'm like a 5-year-old when it comes to this kind of stuff. you explained it very well this morning. so, basically, he they're just moving money around that they don't actually have right now. >> it's an accounting, you could call it a gimmick. you could call it a strategy. it's based in the 2008 bailout and now we are seeing the effects of it play out. >> jolene kent from the fox business network. thanks for talking math this morning. >>

adjustment reflects new revenue, thanks from changes in tax laws and increase in payments from fannie mae and freddie mac. the cbo's current projection would mark the lowest deficit yet under president obama. >>> another u.s. service member assigned to a military sexual assault program under investigation for sexual misconduct. the pentagon says a u.s. army sergeant could face charges for solicitation abusive sexual contact, assault and treatment of subordinate. the soldier allegedly forced one subordinate soldier into prostitution and physically assaulted two others. the report comes a week after an air force lieutenant colonel working in the sexual assault prevention office was arrested and accused of sexual battery. >>> a day after being convicted for some of the worst crimes you can imagine, dr. kermit gosnell has avoided life in prison. he was found guilty of the deaths of three babies at his abortion facility. under a deal with prosecutors, the 72-year-old will spend the rest of his life in prison, while giving up his right to an appeal. >>> now, to business. the dow and the s&p log

there is no question, for example, that wall street helped create the financial crisis along with fannie mae and freddie mac. and i've been public with you, among others, maria, in saying that when boards do the wrong thing, they should be held accountable. in this case, everybody agrees that our tax code is uncompetitive in its rate. it's counterproductive in its complexity there is bipartisan agreement on that. and yet nobody in washington is working on reforming the tax code. instead, they're engaging in political theater. they're berating a ceo of one of the world's most important and most valuable companies who has been doing what a ceo is supposed to do, which is take his business to countries where people are making the strategic choice to lower their tax rate, which we should be doing, to attract their business. >> when you were ceo of hp, you also built up in ireland as well as other countries to take advantage of various incentives. do you see an ethics issue here to balance with the competitive landscape? >> no, i don't see an ethics issue. i see a pragmatic issue. so it's interes

change due to strengthening economy with greater than expected tax revenues from freddie mac and fannie mae. consumption makes up about 70% of the u.s. economy. >>> the market sets new highs on almost a daily basis, but are we ripe for a correction? a lot of skeptics out there. what about that pesky federal reserve and what happens when easy money comes to an end. we're talking how to invest with alison deans and richard bernstein of richard bernstein and associates. thanks for joining us. >> thank you. >> what about that performance. mile tones almost every day. do you think that leads one to believe we are topsy-turvy or would you put new money to work? >> i would put new money to work. we're in the stage of the bull market people are just beginning to realize there's a bull market going on. when you consider it's four years old and people are still extremely skeptical. that's understand ab. we're getting to the point people might realize there is a bull market. >> fueled initially by the federal reserve. alison, do you agree with that and what about the fundamental backdrop. how has earn

strengthening economy, with greater than expected tax revenues and payments from mortgage giants fannie mae and freddie mac. retail sales rose unexpectedly as well for the month of april, climbing a tenth of a percent. analysts were expecting a decline of 0.3%. that's a sign of consumer strength, important because consumption makes up about 70% of the u.s. economy. >>> the market sets new highs on almost a daily basis, but are we ripe for a corrtion? a lot of skeptics out there. what about that pesky federal reserve and what happen hence the easy money comes to an end? we're talk about how to invest right now with alison deans, senior adviser of varick asset management and richard bernstein of richard bernstein associates. good to see both of you. thank you for joining us. what about the record performance? milestones almost every single day. do you think that leads one to believe that we are topsy-turvy, that we're going to turn around and go down soon or would you put new money to work here? >> i would put new money to work, maria. i think we're in the stage of the bull market where peopl

homeowners struggling to pay their mortgages back to fannie mae and freddie mac will have more time to take advantage of "harp," the home affordable refinance program, and "hamp," the home affordable modification program. both will be extended until the end of 2015. the longest hotel strike in history is over. after a decade of protesting low wages, workers at the congress hotel in chicago may soon be back on the job. the union says in a statement, "the decision to end the strike was hard, but it is the right time for the union and strikers to move on," adding the boycott "effectively and dramatically reduced the hotel's business." the hotel's attorney calls the strike's end "a surprise." a few dozen of the original 130 picketers could potentially get their jobs back. it's nearly impossible to make money on basic checking accounts, but bankrate.com has discovered a number of banks are offering ways to earn money with your money in a high yield- checking account. greg mcbride of bankrate joins us via skype. question: why is the discovery so surprising? - i think this comes as a surprise

fannie mae earned a record profit last quarter and will remain more than $59 billion to the u.s. treasury. the agency will owe 21 billion of the originally $116 billion loan then. the recovering housing market and accounting maneuver are behind the good fortune. >>> american airlines reached a settlement with the federal government over safety issues. the carrier will pay nearly $25 million to resolve about 162 million in potential fines over electrical wiring and other problems going back several years. >>> the ftc is moving forward with a plan to provide better in-flight wi-fi service. it's proposing to auction off newly available airways in order to improve the speed and lower the cost of internet service on those flights. it may take years but the goal is to provide travelers with service that exceeds what most americans have at home. >> that is nice. >>> new u.n. report says by next year there could be more cell phones on the earth than people on the earth. right now people outnumber those devices about 300 million in all but with more people working and personal phones, it

. >> today we could find out who president obama wants to oversee fannie mae and freddie mac.ace edward demarco. president bush had appointed him. the federal reserve open market committee h be meeting today. most expect the fed to keep the main rate where it is. coming up an 12 before the hour and reaction continues to pour in on the fda's decision to here the age on the morning after pill. girls as young as 15 will be able to buy plan b without a prescription. >> i think it is very smart. 15 year olds are having sex. >> i don't think it is a good idea. i think in today's society there is so much free will to just do whatever you like when ever. >> a judge ordered the government to lift all age restrictions on plan b earlier this month. >> yahoo!'s ceo is reaching out to new mothers. they h receive 16 weeks of paid leave and new parents get $500 to buy groceries and baby clothes. she was criticized for banning tell commuting earlier this year. we learned how much money she made during her first five and a half months with the company. >> it is nice work if you can get it. she

. >> you introduced the topic of fannie mae and freddie. driven in part by some accounting charges. got about $116 billion in bail-out money. how would you in a fannie and freddie and what do you think should happen to those two? >> clearly they should now be abolished. >> some of us did try to stop the sub prime lending. people forget that. the bill with another democrat to start sub prime lending and it was stopped by tom delay who said it was a violation of free market principle. when i first became the chairman, i worked with hank paulson and we put the rules into effect that stopped the bad thing, gave them the power to put it in conservatorship. i think that's pretty good. what i think should happen now is they should be abolished. >> almost everybody who is in the housing market. >> and the way that people are moving, i believe, some republicans and administration is to have available a guarantee that can be purchased by lenders who want to have a 30 year fixed rate mortgage priced to pay for itself. and i think that's the likeliness. they will be replaced by a mechanism. that

. >> can i take a look at fannie mae and freddie mac?if we have one week on fmna and fmcc, and they're making boat loads of money right now and are in a position potentially to cash in, cash out and be even with the u.s. government by the end of the year, but, man, those stocks, jim have been crazy. >> i don't want to think -- >> i'm look at fannie mae down another 18%. >> the common was overvalued -- >> it's a spec play. in talking to bruce burk wits earlier this week, he says there may be a lot of option -- there may be option value there and it may be significant and you may go down a number of roads to get there and the first that the u.s. government will do something here to reconcile the fact that these are private companies and conservatorship and perhaps no longer should be once they've gone back and you expect a finite return and not an infinite return. there are no security organizations. if you take a look at the banks, they throw everything at fannie. >> oh, yeah. >> david raised a point which was interesting because the comm

you talked the debt limit, unemployment, housing, fannie mae, the sequester and we'll hear more over course of the morning. our steve liesman in london. thanks. >>> in less than half an hour, they will address the annual bank structure conference and they'll offer any clues of the fed'sen tensions involving current stimulus measures and this is not a place where monetary policy is argued and discussed and more about banking regulation, and when the man speaks you have to listen especially now in the words of some and there's one person that can stop the stock rally it is the chairman when we thought there might be according to a tweet that seems not to be true. that they would increasingly talk about tapering and you should remember that we have six central banks around the world that have eased during the course of the last week and the fed is, in essence going to be doing exactly the opposite which is why the dollar is so high today. we talked so often about cheap money so you can't imagine. carl, of course, you never know what would be said and/or answered by the fed chairman desp

stop a run up in price of over a hundred seventy percent in the last two months just last week of fannie mae announced they will repay the treasury. fifty nine billion dollars for bailout money it took during the crisis but this is a one off event that's only possible because of an anti-doping change and deferred tax asset good luck mr paulson. and the bloomberg a to stand ten ten years as financial heavyweights engage in dialogue with the embroiled market data provider clients a good ng a china central bank the federal reserve and the f.d.a. if you have inquired about data confidentiality issues and j.p. morgan short of problems itself is having serious dialogues with bloomberg and is considering its options the sheep executive of bloomberg lp has personally reached out to three hundred clients and apologized and lastly age as europe's a large as banged has so far gotten off with a wrist slap for money laundering suits and the u.s. and europe but it now faces a new money during charges and argentina is a country that hordes one in fifteen u.s. bills according to bloomberg. view sees trouble

that there was a political impetus for this move and that is during the clinton administration fannie mae and freddie mac. were mandated to deal with loans to people who were minorities racial minorities he could not afford to repay these loans but clinton want to be able to say at the end of this term the minorities under my watch the minority in america were able to buy houses so it's black clip for you and to a friend of my residence for am i wrong on going. right maybe and right and enjoying some support today. thank you yeah. absolutely right it's not only the clinton decided to have an operative clinton's idea was where we're less races more blacks will own their homes did bush comes running in with the ownership exactly the same divisions that do the same thing. we were basically pushing. the throats of people who couldn't afford lives everybody so it's ok but that was criminal of i'm a guy who played the rise of the religious why don't you go ahead george those go ahead george yeah but who paid that though again who paid the price for this the people who pay the price of the homeo

have to worry about the bank in cyprus or washington mutual or bank of america merrill lynch or fannie mae or freddie mac. or any of these institutions failing and you losing the value that you have in your big point you're really just more subject to the exchange rate risk and if you can convert it into gold and that's really what you need so that's how i see it playing into this overall large theme of the great credit contraction where capital is borrowing down the liquidity pyramid into safer and more with good assets gold being the safety and big coin increasingly becoming more and more with quit as more merchants accept it and individuals accept it we had a chance to talk with. us and we talked about the multi-tiered payment structure that we have we have the consumer level payment system where people buy food and gas with the money but we also have for instance u.s. dollars used in a large way in international settlements is it possible for bitcoins to become a global reserve currency is a big enough to get big enough and also retain i'm sorry and also retain its ability to work in t