and staying with us is brian reynolds.or. how significant is that on the local economy? >> what we're seeing is that those areas that are hardest hit are actually in many cases rebounding hugely in terms of the prices. that's where the investors are focusing. groups like blackstone specifically are focusing on regions like florida, california, arizona for their investment. yet, the prices are still 20% below peak in a lot of those areas. >> i was talking with someone who said he bought in 2004, 2007, in that period you'd still be underwater in your investments. there isn't a bubble in housing forming just yet, is there? >> i don't think so. not yet. in fact, part of that is driven by real low inventory. that's what's driving up prices. we're also seeing prices depressed a little bit. some of those sales, 18% of those sales, are still distress sales. the wages, the problem we have are wages are not keeping up with these rising prices but a majority of these purchases are still investors who are counting on rental income. we

i want to steal a line from brian reynolds this morning. gone to a level of quantitative easing that we have never seen. so it is interesting that the rate is pulled back when the treasuries are rising. >> and the earnings are good. >> so it is not a situation of risk on/risk off. but what is happening is that the fed is emphasizing the jobs puzzle and not out there with the inflation and in my humble opinion, i believe that there is a reason why, if the market believes that the fed is going to hold back and maybe they are constrained on the capacity side. i don't know, but maybe this is why we are seeing so much concern kind om coming from the credit markets, because, jim, it is not as if the equities have fallen out of bed, but it is the emerging markets. >> i have not talked about it enough. >> i will leave it there and run with it. >> all right. kelly evans. we are about to put ben bernanke and justin beeber in the same sentence. how is that possible? >> both stayed too long. >> we are back after this. my mantra? always go the extra mil

major, but the kinds of jumping in the last day or two that are indicative of what one strategist brian reynoldssigns of panic in credit. the extent to which the financials on the equity side are hit by the panic the credit market may help to explain why they are underperforming. >> well, it is the reserves at the rest of the world at a time when the dollar is gaining and worth less in drollar terms, an deteriorating market. those assets are worth less by the hour is the issue. >> and important to know about capital levels around the world and focusing on that. and lot of it come back, to macro, and a lot of it is on concerns that the tightening is premature, that will hit the banks at the time when the rising rates might be a tailwind for them. >> and they have bounced quite well. >> and earnings are not that far away and the banks are at the front end of the earnings season, so you will get a good read of what is happening for the banks and where they believe that the environment is leading here. >> and david faber said that if we see the offering hold a deal a month or two over the summer, it

brian buckton. deep center field. great catch, at the 407-foot side. number one, mark reynolds, way to his right.in time, back to reynolds get the runner at 3rd base and the rangers win the game. we will be back why shop t.j.maxx and marshalls? one. you get all the awesome brand names. two. you get them for less than department stores, and that's awesome. three. she'll think you look stylish and awesome. four. you'll actually be awesome. which is awesome. wownow we just need guests.t. yeah, so they can race! hey! kachow! bellissimo! guido! our tires are a-flying! whooooaaaaaa little tractors, dance! they're here! it is time! there's high-octane fun for everyone at cars land. only at disney california adventure park. our next newscast is tomorr morning at 4-30. >>> david letterman is next. >> have a great evening see you tomorrow ( band playing "late show" theme ) >> from the heart of broadway, broadcasting across the nation and around the world, it's the "late show" with david letterman. tonight... plus paul shaffer and the cbs orchestra. i'm alan kalter. and now, pernickety bike examiner david l

brian buckton. deep center field. great catch, at the 407-foot side. number one, mark reynolds, way to his right. the rangers ,,,,,,,,,,, our next newscast is tomorr morning at 4-30. >>> david letterman is next. >> have a great evening see you tomorrow

brian. as more and more smokers are turning to e-cigarettes they are not only helping some people kick the habit, they're helping the economy. joining us is the president of r.j. reynoldsy e-cigs are made here in the united states. she joins us live. >> good morning. >> it is called an e-cigarette. you've got one in your hand. there is no tobacco in it. how do you smoke it? >> basically it's a power unit that has a battery. when an adult smoker inhales on it -- >>steve: the end of it glows. >> it heats what we call the v lick kid which does have -- what we call the v liquid. it is expected to be a billion by the end of this year and three billion in the next five years. >>steve: i know at this point you can't make health claims. there is no tar in it, no carbon monoxide, no tobacco. it has to be safer than a regular cigarette? >> we're not making health claims. no tobacco product has been shown to be safe. this is a digital vapor cigarette so there is no tobacco. there is no burning. >>steve: for some people who are looking to make the switch from regular cigarettes, this might be just the answer. how much do they cost? >> on average ours will cost about $10. what's re