welcome to our book forum, "the fateful history of fannie mae," faithful not only for fannie mae but for everybody else too and there are copies of the book out in the reception area which we hope you will buy and which bob hagerty will autograph after the program. i am the president fellow at a e. i. and we are pleased to have you with us to consider this fateful history and its role in american politicized housing finance. after many years of dealing with and thinking about fannie mae i thought i knew a lot about this subject but i learned a lot more about it from reading bob's book, especially the very long-term evolution of politicized mortgage finance in this country and also about the vivid personalities involved over the last 40 years, all the way to the end of the story, at least it is the end so far. the book is full of information but in addition if you read my invitation to this event you know i think it represents an underlying tragic drama. in fact a shakespearean tragedy in five's. rise, power, hubris, fall, and other humiliation. on power, many people in washington not

fannie may this indecision. they they both increase their buying of mortgages at the worst possible moment. just went housing market was starting to collapse. well, by late 2007, early 2008 they were losing large amounts of money. the chinese have bought lots of fannie and freddie the bonds were getting antsy. they kept going up paulson and saying what's up? are you behind fannie and freddie or not? we can hardly tell china to go jump in the south china sea because they were our biggest creditors. so by 2008 the game was over. treasury had to come in and provide huge infusions of money. so far this has cost about $142 billion. fannie and freddie now were under the thumb of the regulator, edward demarco, a no-nonsense fellow, and he promised to shrink them gradually and to reduce the independence of the housing market on them gradually. but meanwhile, we are still relying on fannie and freddie to provide funding for most home mortgages. fannie and freddie and fha in recent years have accounted for around 90% of n

government took over the mortgage mortgage giants fannie mae and freddie mac. few companies buy mortgages from lenders and package them into mortgage backed securities while there's a new report out today by the inspector general's office for the federal housing finance agency that shows that since that time taxpayers have spent one hundred and ninety billion dollars on these companies this is despite a decision earlier this year to cast pay for executives at fannie and freddie at five hundred thousand dollars per year but it turns out that even while the top of the top might have a pay ceiling pay for those in the second and third tier well they're doing just fine the report shows that there are actually three hundred and thirty three employees at the vice president level and they have a median pay of about three hundred eighty eight thousand dollars additionally there are more than sixteen hundred employees at what's called the director level and there median pay is more than two hundred and five thousand dollars per year i want to talk more about this with a

say, fannie, see you?iggest recipients of campaign contribution from fannie and freddie when he was senator, they will not be shut dunn while he in the white house, but let's do everything we can to, keep them as small as possible, not let them grow back to the malig malignant entities they were. it does offense me as a taxpayer to see these people get these generous salaries courtesy, from uncle sam in order to do bad things, we should not subsidize housing, period. neil: when ben took over aig, he instituted higher pay, he did turn a lot of things around. so, there is something to be said but aig is one thing, fannie and freddie? >> i would be more offended as a taxpayer after this rescue of the company, if the housing market does worse than it was. but, one other thing we could look at without talkso talking about doing away are fannie and -- away with fannie and freddie, is address the regulators, this is a choice, one that is already being discussed. they are ones that capped salary, at fannie and fre

dave: top 90 employees at fannie and freddie, that is lot of money?i'm not going to support that kind of salary to anybody working in the government but i'm not sure it's indicative of a problem of the problem of bailouts. i have real issues with the direction that fannie and freddie have taken. you have half. mortgage debt under the control of these two organizations. had we let them go down the drain, anybody that owns a home would not have been happy with the financial result of letting these things go down. bailout may have been ugly but unfortunately it was absolutely necessary. >> the bailout is still ongoing. these organizations are taking hundreds of billions of dollars from taxpayers. just to remind people what fannie mae and freddie mac do, they buy up all the mortgages and then package them in mortgage backed security and sell them to federal reserve board in order to buy them. its government operation? >> yeah, it's an example, i'll give my liberal friends credit. they had good intentions when fdr started it in 1938 and in the '90s, bill c

dave: top 90 employees at fannie and freddie, that is lot of money?i'm not going to support that kind of salary to anybody working in the government but i'm not sure it's indicative of a problem of the problem of bailouts. i have real issues with the direction that fannie and freddie have taken. you have half. mortgage debt under the control of these two organizations. had we let them go down the drain, anybody that owns a home would not have been happy with the financial result of letting these things go down. bailout may have been ugly but unfortunately it was absolutely necessary. >> the bailout is still ongoing. these organizations are taking hundreds of billis of dollars from taxpayers. just to remind people what fannie mae and freddie mac do, they buy up all the mortgages and then package them in mortgage backed security and sell them to federal reserve board in order to buy them. its government operation? >> yeah, it's an example, i'll give my liberal friends credit. they had good intentions when fdr started it in 1938 and in the '90s, bill cli

fannie is about $3 trillion where it was a few years wack. no plans on the table to wind either one down. i know, in the '90s you proposed road maps to get them wound down. do you want to update that if possible. do you see any possible way they can be easied back to the private sector over six year, eight year, ten year period. or is it a lost cause? >> when i spoke at cato in 1989, after coming out with the monograph, bill, who was the head of the cato at the time after the talk we wandered in -- different not quite as elegant as this. it was nice. we were talking and we said how do you get rid of them. i said once they fail you can do anything you want with them. i was wrong. [laughter] hopeless optimism. [laughter] i don't have an answer because hidden in your question is a question of what the political process thinks about the thirty-year fixed rate mortgage. if we were willing to say we don't care about the thirty-year fixed rate mortgage, which simply a long-term instrument with a tail on it, at least, that can't exist in all phases o

knows is coming out of fannie or freddie or fha. this provides a backdrop of global securitization around the world. the u.s. is a heavy user of credit products. europe is a distant second. it gives you a backdrop of the credit availability. this gives you some backdrop that the markets in the united states have come back to an extent if you look at the various asset classes. not as many people buying cars. the market is functioning. most of the student loans are going under the government's balance sheet. different loan obligations -- this data is a little bit old. $50 billion and that market is rapidly returning. this is the slide that everybody talks about, the dramatic change in how mortgage credit is made in the united states over the past six years. securitization of volumes have gone up by $300 billion in the past six years. private credit is a huge volume. $700 billion put through the private label security system. $22 billion is overstating it. of all the slides i have, this is the most telling about where the credit is com

to me that will be really ugly, fha, between fannie and freddie and all that.uld take years. >> it could take years but you have journey of a thousand miles starts with a single step. tracy: i agree. ed pinto, thank you very much. >> thank you, tracy. always a pleasure. happy new year. tracy: happy new year, ed. what a guy. he is so great. he is right, if all goes well it will be great but we've got to get the government out of the housing market. >> all right, i know. 34 tornados hit the south. at this point, why not. so look at these pictures. looking at them right now. 34 tornados the south while whiteout blizzard conditions hit the midwest for christmas. what do we expect in the northeast? lori: people are piling into u.s. government debt. debt downgrade again. this is in the discussions with the whole fiscal cliff debate and you know, people are pushing rates down. they're still picking up paper. they still think it is the safest investment with all the uncertainty out there. there is the long bond yielding 2.93%. we're back after this >> i'm dennis kneale

seems like right now, fannie and freddie are down at 625. are you still up at 729. wouldn't it make sense to go ahead now and make some changes that need to be made? you can do that yourself. why don't we do that? >> as i think you know, we supported our loan limits coming down. and they were supposed to expire last year. congress made the decision to allow -- lower the g.s.e.'s loan limits but kept f.h.a.'s -- >> can you self-implement that? you cannot do that? >> i do not believe that given that congress explicitly extended those higher limits, that we can take that step. >> would you like for us to help you do that? >> we have supported before and i will state again today that going back to the limits makes real sense. i will go further than that, that we should lay out a path to go back to even lower limits that existed before the crisis in a way that is done consistent with how we do housing finance reform. that is a larger question. but the immediate step of going back to the pre-era limits is one we would support. >> are you developing a fan. and i hope we co

here we go again, fannie and freddie could take on billions more in risky loans.r these two corporations were nationalized. it is all done with your tax dollars, emac is on the case getting a bottom line. here is what comes up next. shibani: the biggest hollywood flops this year. we know what the hits were. more fun to talk about the losers. we'll talk about big losers coming up next. ♪ . love about her. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsaf drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset sto

. >>> plus the fanny pack that's also a bra. >>> and the video about getting it while you can before the eapocalypse that never came. >> the pencil really got it. >> so juvenile. >> it's easy to see how an altamonte springs police officer suffered a broken nose in thins dent. check out the dash cam video from a police car. >> help, help, help! help me! >> this is angelo pachino, officials say officers were called to nightclub after getting reportsf a disorderly man. when ey showed up. they sid it tookget this guy ine patrol car. and once they did -- [ bleep ] [ bleep ]. >> at this point they say he went on a 35-minute rampage. beating his head against the front of the car. >> what? >> police say that angelo did admit he was drinking, but at this point, police do not say that anything else was involved. at one point police are getting into it, they're trying to get him into the patrol car, they're trying to calm him down. he kicks an officer, hitting him in the nose, that was not caught on video. >> release your leg or you're going to be tazed. [ screaming ] >> he's restrained, you do

---instituciones como wells fargo, citigroup, fannie mae y freddy mac son algunas de las instituciones que tomaron esta decision... ---muchos embargos se efectuan durante la epoca navideÑa debido al tiempo en que colapso el mercado inmobiliario.

. >>> here is a story to stir some taxpayer outrage, a government watchdog says mortgage giants fannie mae and freddie mac doled out huge paychecks despite being propped out with your tax money. the payout $92 million for the top 90 employees and that does not include the ceos.

taxpayers now own both fannie mae and freddie mac.o the idea is if you were current at least five years on your loan, if you got a irate on your loan -- high rate on your loan, you may be able to get help from fannie and freddie. already a fifth of u.s. mortgages are underwater, that's equal to about 11 million homes meaning they owe more on their loans than what their house is worth. so right now we're seeing about 330,000 borrowers have refinanced underwater mortgages by the fall of 2012, and that's up from 60,000 in 2011. so the issue here is will the u.s. congress approve a change in the charter of, for fannie mae and freddie mac allowing them to refinance or, rather, guarantee refinanced mortgages who are underwater borrowers? that's not the case right now. and, jamie, this comes on the heels of the failed plan to get fannie mae and freddie mac to do, to allow more principal reductions of mortgages. this may be the backup plan that's under discussion because the idea is if you get more homeowners current on their mortgages, maybe

>> well, it separated us. >> reporter: fanny was in the u.s.t year when the protest movement first erupted. >> once it started, he said don't come back, fanny, because they would get in trouble for housing an american and just wasn't safe. >> reporter: from outside, fanny watched and worried as a brutal syrian government crackdown led to a fully fledged insurgency. ala says he finally no choice but to leave his country and his family when it came time for his mandatory military service. >> i don't want to be killed. i don't want to have to kill or shoot. >> how did you feel when you crossed the syrian border for the last time two weeks ago? >> i don't really -- for now, i don't -- i think it's the saddest day of my life. >> reporter: amid the grief and worry, there is joy. this couple has at last been reunited after war separated them for more than a year. >> well, eventually, we'd like to go back to syria. when we have a family -- >> wary going back, yeah. >> hopefully. >> as soon as we can. >> it's it's safe. >> as soon as it's reasonable. >>

to me that will be really ugly, fha, between fannie and freddie and all that. that could take years. >> it could take years but you have journey of a thousand miles starts with a single step. tracy: i agree. ed pinto, thank you very much. >> thank you, tracy. always a pleasure. happy new year. tracy: happy new year, ed. what a guy. he is so great. he is right, if all goes well it will be great but we've got to get the government out of the housing market. >> all right, i know. 34 tornados hit the south. at this point, why not. so look at these pictures. looking at them right now. 34 tornados the south while

the thing is we own fannie mae and freddie mac, taxpayers own fannie mae and freddie mac and essentiallyed to be run to get back in the hands of shareholders. now they are being run at the expense of taxpayers. here's the deal. a fifth of all u.s. mortgages are under water. that is 22% equal to eleven million homes in negative equity. the white house wants to boost the number of spenders out there in the u.s. economy to help the u.s. economy deride itself and to do that they want to allow the some prime negative equity borrowers to resurface out of their underwater mortgages and the number of refinancings have been moving along nicely. lookit 60,000 in 2011. i got to tell you the key is not only fannie and freddie would charge more on that refinanced mortgage, but it has to deal with the banks, particularly will the banks agreed to not have any put backs of loans on their own balance sheet, banks say we would rather have those rotten mortgages. if they do default unbalance sheets of fannie and freddie meaning taxpayers expense, the bailout could get bigger in the housing market. dennis:

barney frank was the godfather of fannie mae and freddie mac in the u.s. congress, and the two of them -- mozilo in the private sector, frank in the public sector through fannie and freddie -- were the unholy alliance who allowed the people who with profited from countrywide to create loans that people could never repay. they just turned around and sold those loans to the federal government, and how was that made possible? it was made possible by barney frank through fannie and freddie in the names of altruistic social benefits. housing for everybody, and let's put poor people into mcmanagess that they can't afford. that's the world of atlas shrugged, the world we just barely survived in the financial crisis. >> host: donald luskin, what do you do for a living? >> guest: i'm an investment adviser for other investment advisers. >> host: what does that mean? >> guest: i give strategic ad vice on the stock market and commodities markets to other investment managers to serve customers. hedge fund managers, mutual fund managers, investment counselors, the like.

take the most recent fannie mae housing survey. top two reasons is to have a good place to raise children and a good place to live it. we all our citizens of a safe place to live it. a roof over one's head does not have to come with a mortgage. in some cases it should not come with that. home ownership is a valuable. for those who purchase a home and a place to make long-term claimants can provide a vehicle of wealth creation. it is important to recognize it is more of the result of expanding credit and not over barring the underlying home appreciation in the fundamentals. long term value going back to 1975 is 4.6%. since 2001, the average appreciation has been 2%. leading up to the crisis, stability, security and savings was disconnected and in the 2000's. a lot of goals of the ownership society from building long-term accord be on short-term gains. it became more about making profits. home purchases and investment gains and not for selkirk, increased from 4% to 28% o in 2006. homeowners have a leveraged. cash out refinances using

. >>> nacieron gemelas y una hermosa y la otra, fanny, con un defecto congÉnito. . >>> cuando pasan cerca la muerte decidiÓ arriesgarse. >>> fanny es la mujer en el espejo >>> un grupo de residentess de la

. >>> nacieron gemelas y una hermosa y la otra, fanny, con un defecto congÉnito. . >>> cuando pasan cercasta la muerte decidiÓ arriesgarse. >>> fanny es la mujer en el espejo >>> un grupo de residentess de la poblaciÓn espaÑola de... armados con harina y huevos dio un golpe de estado y se tomÓ la alcaldÍa, a partir de ese momento los llamados en haro nados. pusieron multas a los que no objeto objeto dejaron y el que no pagÓ termino como las imÁgenes. el inicio de teft jos de invierno de esa localidad. objeto arre el 28 de diciembre de cada aÑo en el dÍa de los inocentes. y los en haro nados encuentran oposiciÓn en medio de una batalla, tan particular como la que estamos viendo. ojalÁ todas la gerba eso fueran como esta. y y we debamos al film. grdzs por su compaÑÍa disfruten el fin de semana. es el Último del aÑo, maÑana tendremos mÁs noticias para ustedes. ahora estÁ usted bien informado, noticiero univisiÓn. su voz, su decisiÓn.

host: what is the role of fannie mae? is there a policy position on fannie and freddie?uest: they were chasing after subprime mortgages and that led to the problem. the mortgages are boring product. it's not like apple computer. 30 year fixed your mortgage. stay within your budget and we will give you the mortgage. hedge funds betting on the market. that is wrong. the backing of the mortgages is essential. without the backing, the 30 year fixed mortgage could disappear. host: lawrence yun, we appreciate you talking to our viewers. up next is steve forbes. after that we will be talking with matt bennett about gun background checks and gun sales in the u.s. mr. forbes coming from our studio in new york in just a few minutes after "washington journal" continues. [video clip] >> that they really started to get worried in the summer and fall of 1774. the british admirals and generals and diplomats were reporting to the crown that the colonists were sending ships everywhere to try to get ammunition and muskets and cannon. this was after the british had sent more troops to bost

this year's freddie/fannie evicition-free dates are dec. 19 through january 2nd. you might think airlines wouldn't be able to find ways to add more fees to your ticket, but that's exactly what was talked about at the airline information conference that just wrapped up in san diego. airlines are reportedly looking at ways to use past passenger preferences as a way to customize add-ons for future travel. airlines collected $36.1 billion in extra fees this year. still to come, how you may be able to get your house back, even if it's already in foreclosure and you were evicted months ago. plus, why the u.s needs good old american ingenutity now more than ever. bill moller explains, after the break. w the industrial age - when making things with machines basically made america great. for years the manufacturing sector has been in decline, but many feel it's fine to cede our one-time world dominance here to other nations while we pursue the sexy growth areas of i.t. but not so fast, say the authors of the book, "producing prosperity: why america needs a manufacturing re

i thought it was frankly perverse to keep fannie mae and freddie mac's -- to bring fannie mae and freddie mac's loan limits down and not to lower f.h.a.'s at the same time. exactly for the reasons that you've said. we are concerned that it would drive business to f.h.a., that should go back to the private market. so i would urge you and others, i know you're supportive, but to work with your colleagues to try to do that as quickly as possible. and i do agree that we need to look at and we are doing that, looking at the standards for how we allow borrowers who may have defaulted in the past to borrow. again, i would say, though, we should not hold a responsible homeowner who has demonstrated their ability to pay back their debts and to be a homeowner, a successful homeowner, simply because they may have lost a job due to what is an unprecedented economic crisis that we've been through. so this is not just about time lines. it's about what the standards are for when we allow folks to borrow. >> well, my broader point is this and several other factors should also be about doing it in a way t

en breve...fanny gutierrez nos presentara la informacion del entretenimiento... ya volvemos!!s si en esta epoca de fiestas se les hizo dificil comprar o buscar un juguete para sus hijos, no se preocupe, tenga lapiz y papel para que anote la direccion de los sitios en donde se hara otra entrega de juguetes, gratis!, maÑana y le realizamos una entrevista a luis fonsi, a las seis le mostramos una parte y he aqui un poco mas de lo que nos conto luis fonsi, artista internacional, habla sobre la campaÑa thanks and giving del hospital saint judes... y les cuento que un clasico literario, muy conocido en broadway... ya tiene amigos feliz fin de semana, feliz aÑo 2013, si quieren despedir el aÑo bailando, aqui les va una muy buena opcion...

at one point with fannie mae -- when fannie mae was issuing these loans, they were generally the variable rates and pay allowed a borrower to basically withdraw over time the amount of money they needed. as that program has switched to the jenny made program there is basically no option for those borrowers to do anything but withdraw the full amount. >> and white? >> that's because we don't have the statutory authority to be able to make the changes to the program that would allow us to limit the draw. that is the change we are asking to be made. our alternative to senator corker, we could basically eliminate or put a moratorium on our regular program and just go do what what to what we call our saver probe in which is somewhat safer, but the problem is we still have the authority under that program to avoid this whole draw feature of it so the right answer in our view is give us the authority to make the changes we need so that we end up with what is a safer product for fha and frankly a safer and better product for seniors. what we are finding with this full draw product to many seniors

owns fannie and freddie stepping in in a big way.heir colder announcing criminal charges and the sentiment of the one$.5 billion with ubs which is basically three times the barkley's mind and the second biggest penalty ever to hit a bank. >> they defrauded the company's counterparties of millions of dollars did so primarily to increase profit. bigger bonuses for themselves. tracy: the liz: the manipulation conspiracy and other traders with other charges but you know what the issue is? how widespread this fraud was and the u.k. financial regulators saying it would be routine manipulation. 45 workers implicated 3 dozen have already left the bank. all of the submissions which were 2,000, risk of having improperly influenced which in 2005-2010, when you dig into the e-mails you can see them, i will tell you something interesting. this is a trader talking to a low as possible, if a man of te my word. we heard about this case that has been downplayed and dismissed, this is just markets color. what we have seen, it has been rated higher to

. >> fanny tomas fue instruida de cargos luego de apuñarlar a cuatro familiares , entre la víctima se>> hombre se esta recuperando luego de ser herido de balas , enfrentamiento tendría que ver pandillas. >>se detuvo dos personas que asesinaron a hombre y ocultaron su cuerpo para cobrar seguro. >> el sujeto armado baleado por la policía fue identificado como antony junior , el inciedente fue por incidente domestico. >> hubo tiros dentro del departamento y no sabiamos que ha pasado. >> la policía aseguro que no se buscan mas sospechosos. >> balacera dejó lesionado a joven de 18 años , lo que afecto las rutas hacia la dirección de san francisco, se espera que autoridades den mas información. >> con la intencion de reducir el crimen , se anuncio que hecharan manos de dos personas anticrimen , estos elementos tienen éxito en la lucha contra el crimen. >> dividiran a la ciudad en cinco distritos para realizar redadas. >> en oklan sujetos robaron en tiendas . >> en hispalo ,las aguas regresan a la calma , el caudal ha disminuido notablemente . >> el norte de la bahia se prepara para mas prec

. >> julie christian son, joan wood, fannie renwau. >> good afternoon. >>> good afternoon. i support the general connection of t-line to north beach if it is well designed and well planned. because of that i don't support the abandonment of equipment under chinatown. i believe the loss of finances and the loss of momentum could reduce the chances for an eventual north beach station. i do support the extraction at the 1700 block of powell. whether that be the pagoda or one of the adjacent properties. i think the pagoda itself has a lot of benefit. if the extraction takes place, if the land is leased from the property owner, not purchased, the property owner has a lot to gain. there is a high water table. there's tons of concrete, bleachers poured in the middle of that building. if the city extracted the unit there and left that property owner with a better situation, it would benefit both us and him. of course, the purchase of the property is what i'd like because i think there are a number of benefits to the neighborhood in having a transit station at that particular locati

and you mention and gerry warner in there says that there's no way to know the cost well we do know fannie mae and freddie mac. are the two government sponsored entities in the united states which are now fully owned by the u.s. taxpayer they underwrite something like ninety five percent of all mortgages now in the united states well when you take out all these contracts mortgages interest rate swaps they're type two and the libel rate in an internal auditor at fannie mae and freddie mac. has determined that libel or rigging cost them three billion dollars and therefore the us taxpayer they defrauded the government and remember we talked about one thousand and one that notion that if you lie to any federal authority in america you get thrown in prison and a federal prison for a few decades so. that a lot of our scandal they ended up in games with billions of dollars of the fraud which were added on top of the bill that were given to taxpayers from the likes of hank paulson needed the seven hundred fifty billion at the time became fifteen sixteen trillion to bail out these guys so why boras

contracts mortgages interest rate swaps they're tie to the libel rate and an internal auditor at fannie mae and freddie mac. has determined that the libel rigging cost them three billion dollars and therefore the us taxpayer they defrauded the government and remember we talked about one thousand and one that notion that if you lie to any federal authority in america you get thrown in prison and a federal prison for a few decades so. a lot of our scandal they ended up engaging billions of dollars into fraud which were added on top of the bill that were given to taxpayers from the likes of hank paulson needed the seven hundred fifty billion at the time became fifteen sixteen trillion to bail out these guys so why boras having a direct impact on people's lives and for every dollar that's saved in interest expense on a mortgage of course you lose two dollars in pension money in retirement money so people who think they're saving money on this are either i don't know reference or read german more than a propagandist for the telegraph well you know speaking of him i also got in a fistfight ba

and senate fannie mae and freddie mac. so that's a huge thing we're going to keep track of that over into the next new year but i want to talk about to fail not to bail that's what i've come up with not seem to lead he's to fail not to bail on the kaiser report because of course according to this three max keiser tweet did not seem to lead you still in london not said to lead responded max keiser i ran away i was told you wanted to punch me in the nose right well he's afraid to come on the show because he has been exposed as snake oil salesman charlatan who's intellectually bereft of anything meaningful to say but people like the b.b.c. and others put him on their shows because it makes them look smart because what he's saying is incomprehensible well to put this into context he was here london pushing his book anti-fragile and he didn't appear on the kaiser report because he didn't want the questions here instead we don't b.b.c. newsnight the same b.b.c. news night that had the evidence of jimmy savile and his paedophile

host: what is the role of fannie mae? is there a policy position on fannie and freddie? guest: they were chasing after subprime mortgages and that led to the problem. it is effective lead government owned. the mortgages are boring product. it's not like apple computer. 30 year fixed your mortgage. stay within your budget and we will give you the mortgage. given that, there is no world wide -- hedge funds betting on the market. that is wrong. we want to ensure shrinking down of the investment portfolio, but the backing of the mortgages is essential. without the backing, the 30 year fixed mortgage could disappear. host: lawrence yun, we -- laurence yun, appreciate you talking to our viewers. >> the house and senate are in today. the senate working on two bills -- to extend provisions of the foreign intelligence surveillance act and the other, a $60 billion relief package for areas affected by hurricane sandy -- hurricane sandy. a book planned for 5 to 30 p.m. eastern on at least one. and the senate will swear in their replacement for senator inouye. the former democratic l