cnn's christine romans is live in new york. a lot of mixed feelings on this. >> this is the biggest industry government settlement since the big tobacco settlement of 1998, kyra. in sheer size, this is big, $26 billion. it could be even bigger if more servicers pile on. you're right, there's a lot of concern and skepticism because so many of the programs to date have been under wheming, disappointing. one in four people who have been promised help under some of these government programs have been helped. so there are a lot of homeowners quite rightfully who feel scarred by the housing market. let's talk about what they're aiming to do here. it would be a million underwater homeowners. these are people who owe more on the house, kyra, than the house is worth. california, new york, florida, they are now on board. almost all the states on board. so that's important. the attorneys general of some of these states didn't want to give up their own big investigations into the banking industry, and they won't have to. now these are non-

christine romans has a breakdown in today's "smart is the new rich."ical, right? i'm sure your panel will agree. but let's talk about the provisions that the president is hoping will appeal to the middle class, people trying to put a kid through school or trying to save money and make ends meet. to college students, there would be tax breaks for college students and their families on tuition. this would be an expanded college tax credit, making it permanent. for universities, there would be more money for work study programs and also keeping the pell grants right up there now at $5,635 through the year 2014-15 school year. for middle class workers, a payroll tax cut, making it permanent. that's that $40 a paycheck that people have been getting, the president wanting to make that permanent. you can see very clearly, soledad this is an attempt to go right to where we feel it, the pocketbooks of the middle class, to try to sell them on some of these measures. because all of these are the kinds of things that the middle class have been complaining about, r

christine romans. >> i believe everything christine romans says, especially when you have a data wall of different sources of data. we can really make sure we cover our bases here. >> is it a great thing because you can buy a house cheaper. >> depends if you're a buyer or seller and depends on where in the country you live. all real estate is local. i want to show you what it looks like. remember, we were all in shock from september 1 1th, a decade ago. the whole world was a different place then and that's where home prices are now. you look at this chart, you can see where we have come from the peak in prices in 2007 when you had prices that were well over $200,000 on average for the price of a house and now more like $154,000, that is real money that has hurt people. let's look at where things are going now. this is where i'll bring in zillow. so, 2011, according to zillow home prices down 4.7% and 2012, almost another 4%. real estate is so wildly different. i want to break this down and show you according where prices are still falling. places like atlanta another 8% drop. zoraida,

papers could happen within 20 minutes if christine romans is correct. she's pretty clever. >> we're very excited about this. >> maybe two hours, three hours. maybe sometime today. >> can you do me a favor. dumb it down a little bit and explain ipo. >> you can't get it and neither can you or you or you. ipo is initial public offering. a new company -- this is only eight years old -- a new company becomes public. it offers shares to the public, investors, mutual funds, dow components, individual investors can buy the value of facebook. which means you'll be able to get a look under the hood of the car, see how much they're making from advertising, facebook credits, gains and those kinds of things, and how much money this company is making. how does it compare with some of the other ones we've seen lately? >> before you go there, why can't i get in on it it if it's public? >> you will initially. you don't get that first big -- you can't just call a broker and say, i would like one of the first shares of this very sought after company. >> is that because th

christine romans, how high it will go and how soon?porter: it will go higher and probably keep going higher. already above $4 a gallon in some spots. if you're one of the states that tends to see a higher price because of your tax burden in your states, you're seeing it go up, hawaii, chicago, probably in the northeast, higher gas prices continuing. oil prices are moving up. they are up about almost 12% over the past year. and oil prices affect everything, they affect gas prices, the transportation costs for companies and businesses that are trying to ship products. they affect things like cost of making tires and all kind of petroleum by-products, or packaging costs, raw materials for manufacturing and the cost of running a factory, heating a store all these things feed in energy costs. one of the worries is the higher oil prices will mean higher gas, energy price and that could cause some companies to put on hold their hiring plans, and slow the u.s. recovery, that is why we're watching it closely, kyra. you're watching gas move up.

christine romans is here to tell us what we will do about this.e. >> whenever you talk how the great recession hurt different demographi demographics, young beam on -- young people have been hit hard. whether you will buy a house, get married, have a baby, all these things have been put on hold. we know from other surveys and this one that people are young people are polstponing their lie decisions. the recession hit them so hard, when pew surveys people who has been hit hardest or who will suffer the most, adults and young people alike all said young adults will bear the brunt of this, they have really suffered. it's interesting they don't have the assets. >> they don't have a mortgage. >> they are making all these life decisions that have been affected which is interesting. >> is it because we were talking about this earlier, because the baby boomers are staying on their jobs longer. >> that is exactly right. boomers aren't leaving if they can hold on for dear life, they are, there are fewer opportunities to get in because you have experienced w

christine romans is here to explain. christine, you've been crunching the numbers.nt is this? >> it's significant for both parties because they tonight have something to fight over about who raised taxes on working americans. it means something for 160 million people who get a paycheck. in that paycheck there are social security taxes. you've gotten a break on the taxes that you pay for your social security. that's coming out to about $1,000 a year or $40 per paycheck. that's calculated, fredricka, on people who make $50,000 a year. people are going to continue to see that little extra in their paycheck. there will not be a little tax increase for people this year. >> what else is is in the deal? >> they're packaging unemployment benefits and the doc fix. this is medicare reimbursement. it looked like doctors could be in trouble for a while because congress couldn't get its act together on extending that. unemployment benefits also. what they're fighting about is how long to continue to extend these unemployment benefits. in something like 20 some states you can get

christine romans has been following the story. christine, this is so horrific. >> it is. out of her car going in to see their dad. he locks the door. won't let her in. and she smells gas. she tells the dispatcher that she could hear one of the little boys crying and that she can't get in. she doesn't quite know what to do. listen to one of her first calls. >> okay. how long will it be? >> i don't know, ma'am. they have to respond to emergency life threatening situations first. >> this could be life threatening. he went to court on wednesday and he -- he didn't get his kids back. this is really -- i'm afraid for their lives. >> of course she was absolutely right. and when you listen to another part of this call, another call after the house actually blew up, you can hear just how frantic she is. >> ma'am, listen. >> burning the house. >> do you know the exact address of the house? >> yeah. it's 8119, 189 -- >> okay. okay. stay on the line. >> do you know if anyone's in the house. >> yes. there was a man and two children. i just dropped off the children and he wouldn't let

cnn's christine romans looks at the big picture. >> reporter: a very strong jobs report.ring in january and the unemployment rate drifted down. this is what it looks like for the year. for all of last year, some revisions are in and we know 1.82 million jobs were created last year. we know that the hiring starting this year was pretty broad based. you had professional and business services about 70,000 jobs created there. leisure and hospitality, manufacturing and health care. health care has been a steady performer for job creation for more than a year now. unemployment rate dipped to 8.3%. that is the lowest since the second month president barack obama was in office. you have the jobless rate spiking after he was in office, even before he was in office. got up to 10% and is drifting lower. lowest since february 2009. one thing that is important to note here is the drop in the unemployment rate for african-americans. a big drop. 13.6% is now the level there down from 15.8%. hispanics was mostly steady at 10.5% and whites 7.4%. economists are saying today they want to se

christine romans has more on her special "coming home." >> you guys working in groups.ou have a deadline. you have defined responsibilities and someone is being a problem. >> reporter: a typical workplace issue, but this isn't a workplace, it's a class for veterans making the switch from military to civilian work life. >> doesn't show up for meetings. doesn't do anything. >> reporter: work force opportunity services is a program that pairs classes with a paid consulting job. so here and here is where former army combat engineer tom richardson is learning a new language, corporate speak. he served in iraq and came home in 2003 with a military background and post traumatic stress disorder. >> when you join the military thinking when you come out people will be throwing jobs at you lining up outside of your house, and it's the total opposite. >> reporter: the jobless rate for iraq war veterans like richardson is 9.1%. for very young vets, many who don't have a college degree, it's more than double that. >> i was unemployed for two years, and it's really hard i know for vet

christine romans has that for us. >> good morning to you, soledad.a lacrosse trial. huguely e-mailed yardly love before err had err death saying i should have killed you. he's on trial for fatally beating her to death. prosecutors say he killed her after a jealous rage after finding out she had been dating a rivalries lacrosse player from another college. >>> egypt's prime minister won't stop its crackdown on ngos. the egyptians first raided ngo offices last year accusing them of improperly using foreign funds. they are going to try the son of transportation secretary ray lahood. >>> the weekly jobless claims it says 358,000. it sounds lick a lot. we were expected 12,000 more claims. any time this number comes in less than 400,000, that seen as a sign the labor market is headed in the right direction. the obama administration will announce that ten states are getting wavers from the most burdensome mandates of no child left behind. in return, those states have agreed to raise standards for improving student achievement, provide more accountability, a

>> let's bring in christine romans to chat about this. if we continue krthree cents evy night this can get out of control. >> 3.75 to 4.25 is what i'm hearihear hearing for an average. the price of gas is divergent across the country. two things i know, my mom loves me and gas prices can get political. >> what's driving it? >> iran. people say the fear factor of iran is adding about $10 per barrel of crude, which adds about 30 cents per tank. the supply shock of iran would be something that effects the global market, even though we don't get a drop from iran. it's a world market that has speculators, hedgers, people who buy and sell all the time. this is how a gallon of gas breaks down for you. 12% is basically taxes. distribution and marketing is 6%, refining 6%, and the price of crude oil is 76% of the cost of a gallon of gas. when you see crude oil above $110 a barrel, this is where the money go. energy companies are making so much money and we're paying at the pump, why is that fair? a lot of you are asking for tax subsidies. >> 12% i

in this week's "smart is the new rich" christine romans looks at the growing divide between winners anders in this economy and what you can do to take control an speed up your own recovery. >> your job, your home, your investments. on paper you're doing okay, right? unemployment is going down, but the long-term unemployed, those out of the workforce for 26 weeks or more are still struggling. home prices are at the lowest point in more than a decade. while the payroll tax cut is putting an extra 40 bucks in your pocket, that's likely going to pay for rising gas prices. rick newman is the chief business correspondent for "u.s. news and world report." there are winners and losers and it's harder to get from this group into this one. >> absolutely. i think of this as a barbell economy where some people are at the top, they're generally doing fine, getting back to their jobs, getting raises, promotions, their investments are picking up a little bit. >> coming back to normal for those people. >> whatever they think normal is, yeah, things are pretty good. at the other end are people who may n

something i've got to he'll 2 you. >> for "smart is the new rich," i'm christine romans. get used to the name jeremy lynn. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ ♪ ( whirring and crackling sounds ) man: assembly lines that fix themselves. the most innovative companies are doing things they never could before, by building on the cisco intelligent network. >>> what a game for the new york knicks. get used to the name jeremy lin. he came out of virtually nowhere scoring 38 points last night against the lakers. he is the city's new hero. cnn's richard roth has more on this amazing athlete. >> reporter: jeremy lin says he is a low-key guy. he looks unassuming at practice with the new york knicks.

christine romans, cnn, new york. >>> that's it for this edition of "world business today," i'm charles hodson in london. >> i'm andrew stevens in hong kong. thanks for watching. we'll see you later. you're watching cnn, the world's news leader. [pig oinking] [hissing] [oink] [oinking] [ding] announcer: cook foods to the right temperature using a food thermometer. 3,000 americans will die from food poisoning this year. keep your family safer. check your steps at foodsafety.gov. [oinking] >>> this week on "marketplace middle east," the uncertainty lingers as progress been made in bahrain since last february? and libya one year on, an interview with the country's planning minister and what lies ahead. >>> plus, treasures of saudi arabia, a rare glimpse in the kingdom's history through its ancient artifacts. >>> it's been one year since protests swept across bahrain. today uncertainty still lingers over its political and economic climate. the unrest began last february, a government crackdown in the weeks that followed left dozens dead, hundreds detained and more than 2,000 lost their jobs

for "smart is the new rich," i'm christine romans. >>> among the legal issues we're tackling today, a former university of virginia lacrosse player accused of killing his ex-girlfriend. he breaks down during his murder trial after watching a videotape. our legal experts will be weighing in on this case. americans believe they should be in charge of their own future. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future. ♪ like a ramen noodle- every-night budget. she thought allstate car insurance was out of her reach. until she heard about the value plan. dollar for dollar, nobody protects you like allstate. over a million people have discovered how easy it is to use legalzoom for important legal documents. so start your business, protect your family, launch your dreams. at legalz

christine romans finds out why and how it's actually working. >> reporter: meet the laflers. >> i'm dad mom. >> i am the son. >> i am the grandmother and great grandmother. >> reporter: three generations, plus one dog. >> okay. >> reporter: living under one roof. make that four generations when granddaughter, ella, visits. >> i really value family. it means a lot to me to have everybody together a lot. >> reporter: for the first time in decades, more generations are moving in together, reversing a trend that's been in place since world war ii. it's about culture, it's about convenience, it's about money. the trend has grown 30% over the past decade, fueled by immigration, people living longer and more recently job losses and foreclosures. >> we have a couple of bedrooms upstairs. >> reporter: new jersey builder baun burnes renovates single family homes to accommodate more than one generation. >> when you look at what's been happening in the housing market, you can see this is an area in housing that is showing growth, no question. are you seeing that in your business? >> absolutely. we

>> christine romans, thanks so much. in new york. >>> later on this morning president obama talks jobs, more specifically jobs for out of work veterans. we'll get a preview of his plan to get them back on the payroll. that's coming up in about ten minutes from now. >>> also this morning new information on two american tourists who have been kidnapped. the government released news of the women's abduction just a couple of hours ago. cnn's ivan watson joining us right now from cairo. tell us about how this happened. >> reporter: fredricka, let me just interrupt. egypt a very turbulent country right now. right outside our balcony right now you're seeing a column of thousands of people marching across the nile river towards tahrir square. they're carrying the flags of the main soccer teams in cairo after 79 people were killed at a soccer game wednesday night in another egyptian city of port sayed. many of them denouncing the ruling military council that governs egypt right now and blaming the police and the military for what

christine romans is live in atlanta. we have a new poll out about the payroll tax. tell us what americans are saying about it. >> good morning, ladies. americans are saying they want to keep their extra money in their paycheck. some 54% of people polled say they approve of passing favoring the payroll tax cut for all american workers. only 42% oppose it. we keep talking about this $40 per paycheck number. that's if you make $50,000 a year, you're going to take home about $40 extra a paycheck. you did last year too, so it means now you wouldn't see less money in your paycheck. it looks like this agreement would be for the rest of the year. the president of course yesterday as you guys pointed out was a little bit cautious, saying he'll believe when it he finally signs it. it looks, all indications are republicans and democrats have found common ground on this payroll tax cut. just not paying for it. they're going to let it happen without paying for it. at least through the end of the year, in an election year, they don't want 160 million workers to have a tax increas

christine romans is following the story for us. how worried should we be?. about these prices going very high. >> i think they're going to keep going up. if you're filling up a half a tank today, try to fill up a whole tank. if it goes up three cents, soledad, it will keep moving higher. economists are saying 30 cents of the price of gas right now of every gallon of gas is tension with iran. we don't use oil from iran here in the united states. we have a world oil market that we're all a part of. all of this worry about iran is adding to the price of a barrel of crude oil. that adds to gas prices. here's the thing also. we know that hedge funds and commodity pools and investors and speculators have been buying energy contracts. they are looking at the array of things out there that you do when you make an investment decision. they say, hey, this looks like it could be higher down the road. speculation is adding to this overall because demand is down. demand for gas is actually down in this country. prices are up. that's got a lot of people kind of talking a

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let's bring in christine romans, she's in atlanta talking about this. ristine, do these downgrades really matter? >> they tell us what we already know, that it's going to be a complicated and long road to fix europe's problems. it's so funny, listening to you talk about the markets, i feel like the paula abdul song from the '80s with three steps forward and two steps back. >> that's a good one. >> that's exactly what it is, you know? then we get optimism about greece, then we're concerned about some of the other countries. i want to show you quickly the countries that moody's downgraded, among them italy, spain and portugal. they have an awful lot of debt and they have to figure out how to grow their economies and also cut their spending. also, moody's did something else that was getting a lot of attention. france and the uk, their ratings stayed the same, but they put them on what's called outlook negative, meaning they could cut those ratings. those are a couple of very important countries, too. so, does it matter? it doesn't change anything today, but

i know i'm making a difference. >> reporter: christine romans, cnn new york. >>> let's talk about shapingething to help your cat or pudgy pooch. >>> coming up on cnn weekend prime, church pastor bishop eddie long back in the news for a controversial ceremony that involves what appears to be a rabbi wrapping him in a jewish torah and anointing him king. it's raising questions about long's judgment. all that and more when you join us tonight on cnn weekend prime at 11:00 p.m. eastern. montgomery and abigail higgins had... ...a tree that bore the most rare and magical fruit. which provided for their every financial need. and then, in one blinding blink of an eye, their tree had given its last. but with their raymond james financial advisor, they had prepared for even the unthinkable. and they danced. see what a raymond james advisor can do for you. premier of the packed bag. you know organization is key... and so is having a trusted assistant. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above and still pa

. >> let's bring in christine romans to talk about that that.e talk every day about greece and the bailout. now we have a plan, but are we closer to having resolution? >> we are. here's why. because greece has now got the money. european lieders say you're going to get the money. they won't go bankrupt. they're going to make a big large bond payment and greece can move forward. they've promised more austerity and cuts in greece so they can deserve this. investors are taking a luge hit. >> bankrupt, default, same thing? >> it's basically -- at this point it is. this is the end of the road for greece. they had to figure this out. it was a contentious down to the wire negotiation. they've agreed to do something to -- with this kind of emergency firewall. so overall, leaders are hopeful that these kind of countries aren't going to bring down the entire eurozone. this is not without an awful lot of pain for the citizens. >> they've had smaller pensions, steep job cut, reductions in pay, they're going to have pay cut. this is why people are taking to

. >> i want to bring in our own christine romans to talk about what the president is proposing here. christine, we know that the president's plan is aimed at helping struggling homeowners take advantage of the historically low interest rates, and they have tried programs in the past, and they have been rather disappointed. do we think that this is really going to benefit folks? >> this is different and again he is challenging congress to pass this. this is something for people who are current on their loans, but under water on the loans, and you want to stay in the house, and pay your bills and you could have a lower mortgage payment if you could get the record lower mortgage rate rates, but you ca because you owe more on the house than you have in value. the president said it would save on average $3,000 a year, and a fee paid for by the big banks and help people with a credit score of 580 to qualify. as it is now to refinance, you have to have a really good credit score, maybe 750, and equity in the home and a job. people who could lower the mortgage payments, but he wants to do a b