and i also want to publicly thank the lifelong career in public service of ed demarco, including the time as acting director of fhfa. in the face of great economic collapse, the biggest one since the great depression, they help prevent an extremely bad situation from getting much wors worse. and it's hard to imagine thingsy being worse given the depth of the housing market collapse, bud i very much believe that ed demarco's leadership prevented a deeper financial collapse by stabilizing fannie mae and at mac. throughout his time, ed was instrumental in establishing the foundation for all the we will do going forward. so while you may know most of my comments today, certain changese in focus, you should know that i firmly believe that we will be building on a very solidus polic foundation. and we have been very focused on the numerous policy decisions that were and are in the of the pipeline and in making decisions isout the future strategic direction of the conservatorship, the principal that ful we are following is how best to fill in to fill our current obligations under current la

finally, he didn't exactly that's some that ed demarco had refused to do. hud secretary sean donovan announced that the fha, which is the government's mortgage insurer would reduce insurance premiums for borrowers who participate. this could help may fha loans more artable. fha share has dropped amid those higher premiums. this comes with new reports that housing affordable is weaker than previously thought, points to make metros like san francisco where barely 14% of middle-class residents can afford a home, and goldman sox looked at first-time homeowners who are hit with the higher rates. we have more details on cnbc.com. sio sue? >>> yesterday we had a huge gain in the copper market. it's giving some of that back today. look at palladium, though, up 1% on the trading session, $8.40 marginal decline in the gold mark, down about nine cents on the session. to the bond market now, out in chicago, rick santelli is tracking the action in bonds and in currencies for us. hi, ricky. >> hi, sue. hold on, i have to get my heart rate back down. principal reduction,

ed demarco wanted to shrink it. his successor mr. watt wants to expand it so we're going to have what sub prime part two and i don't even care if it works out. nationalization is not in the fabric of this country and in essence what the cut is describing with put-backs back to the banks and all the ratios being changed a bit is in essence the government underwriting housing. they have health care, they have housing. i think enough is enough. if housing can't stand on its own two feet and we can't move mortgages at 4.5%, there's a whole lot more wrong with the country than nationalizing and lowering credit standards. >> rick, look at -- hold on. 2009 to current right now. these books are privityine, so we have the bubble of the four-year period, the last four years the lowest delinquency rates in the history of the mortgage industry. >> good, then it should be great to turn over the profit sector and reform demand. >> that's a solid investment. >> if it was so solid why can't we get it off the books of the taxpayer? >> exactly. >> to

demarco, it's overwhelming. why did this happen? nbc connecticut contacted the access health connecticut and they told them it had to do with a computer issue with a vendor and when this gentlemen changed information during the enrollment process a new form was sent to the insurance company but that form didn't include the couple's subsidy. so the form was wrong. well, could this happen, is this just one demarco couple in connecticut? not according to a front page story in "the washington post." the headline is federal health care subsidies may be too high or too low for more than one million americans. paying incorrect subsidies to more than a million americans for their health plans and the government has been unable so far to fix the errors. the president of the united states goes on tv and says that the democrats forciblifully defend and be proud, madam president, who in america can be proud of the mess that the president and his administration have made of the web site and this health care bill, where once again, we see as "the