. >> we rick rieder have a director guest with us rick rieder, --we have a terrific guest with us, rick rieder, at blackrock. billion.seas $640 right now, 60 seconds, how do you feel about the new year? >> free optimistic. i think the bond market, you know, coming into 2013, rates were distorted, we work 130 base points off of normal levels, we are back to normalcy, and i think it is good for bond markets, equity markets. bond guys are not supposed to have a very optimistic view of the world -- >> certainly not right now with the top of tapering -- >> yeah, but i'm actually -- i returns,s is positive i think it will create some positive returns in the broader market should be in good shape. >> what was your optimism level this time last year? >> different. part of what was happening this time last year was this extraordinary qe program and you got over the fiscal cliff. all of a sudden people had to buy assets, there were not enough assets to buy, you are squeezing, the 10 year with getting to 160, 165, and you knew it was wrong and it all end up igniting in may and june. you knew it wa

let's bring in rick rieder who oversees $700 billion in fixed income and torsten.re down to 2.7% and what do you make of it? >> yeah, a bunch of things. a bunch of things happening. i think what's been the most surprising is the adjustment of the emerging markets as fast as it's happened and you think about the news last night with regard to turkey and how markets reacted in a positive fashion to turkey which was amazing to us. at the end of the day there's an adjustment period that has to take place amongst a number of countries to deal with what are fiscal challenges, inflationary challenges -- >> isn't part of that adjustment -- if they're doing the right things to some extent, then why aren't they seeing any benefit for it? how much more aggressive do they have to be? >> sure. well, i think ultimately you will see the benefit. the problem is that it creates economic duress in the interim. you talk about when you have a real impact on your lending mechanism, a real impact on your ecosystem, it has an impact for sure. ultimately it's the right decision. i think w