so that borrowers who would otherwise not legally qualified for the fannie mae mortgages, could obtain them unlawfully. this is a large-scale mortgage fraud case that we estimate to include hundreds of millions of dollars worth of falsified loan applications. if we have learned anything from the recent mortgage crisis, it is that at some point, these schemes unravel and taxpayers

so, let's preserve and strengthen fannie mae and freddie mac.e really could be no place like home. . >>> welcome back to "the lead." we're monitoring the tornado that was declared in mississippi and we'll turn there if a moment. but now let's turn to the world lead. things got ugly in eastern ukraine. hundreds of chanters were attacked with batons and bats in donetsk. a homemade bomb took the life of a soldier. the violence comes as the president of the united states who is wrapping up a seven-day trip to asia is trying to defend his foreign policy to his critics. >> typically, criticism of our foreign policy has been directed at the failure to use military force. and the question i think i would have is why is it that everybody is so eager to use military force after we've just gone through a decade of war at enormous costs to our troops and to our budget. and what is it exactly that these critics think would have been accomplished. my job as commander in chief is to deploy military force as a last resort. and to deploy it wisely. >> this defen

so, let's preserve and strengthen fannie mae and freddie mac.ithout them there really could be no place like home. ♪ ♪ liz: earnings season in full swing. 49% of the s&p 500 has already reported first quarter results, and here's where we stand so far. so 161 companies, that's about 49%. 66% have beat. 24 companies, 10%, have met estimates. 60 companies, as i said, 24 have missed targets. and director of global and markets intelligence looks at every single one of them. christine short is here now from s&p capital iq with more on the strengths and weaknesses and perhaps, christine, more importantly, what they say about the u.s. economy. let's get a sense right off the bat sort of the broader picture. which sectors have done well, which ones are heeders, which ones are laggards? >> okay. overall growth, we're expecting 1.1% growth. so not great, but it's the highest expectation we've seen since the first week of march. liz: how does that compare quarter over quarter? >> last quarter we saw 8% growth. so when you're coming off an 8% pop, you know,

so, let's preserve and strengthen fannie mae and freddie mac.se without them there really could be no place like home. today is monday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today. >>> >>> bank of america with a six month low. >> you never want to see a company backtrack no matter what sector. that is what spooked bank of america investors today when the company said it would temporarily halt a four million buy back program. today, they identified an improper calculating program that goes as far back as 2013 and unfortunately was used to calculate some of the bank's capital levels in the most recent stress test. bank of america plans to resubmit the numbers by may 27. it said it would altar existing capital levels by around 30 basis points. if

so, let's preserve and strengthen fannie mae and freddie mac.ause without them there really could be no place like home. >>> secretary kerry is backtracking today for something that was said at a tri lateral commission meeting last week and overheard. joining me now from the capitol for more about that is kelly ayotte who serves on the armed services committee. we're talking about senator -- secretary kerry, former senator, suggesting to the trilateral commission in a private meeting and now backtracking from it saying if israel does not go ahead and the peace process does not go ahead and we know it's been seriously damaged in the last couple of weeks and the palestinian don't get their own state, israel would face a future that could be as an apart had nation, something he says he wish he would not have said if you can rewind the tape. i do not believe nor have i ever stated publicly and privately that israel is an apartheid state. anyone knows anything about me knows that is without a shred of doubt. one of your colleagues in particular, ted

so, let's preserve and strengthen fannie mae and freddie mac.there really could be no place like home. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ >>> welcome back to "power lunch." humphries downgraded the stock. marriott will report first quarter earnings tomorrow. the street is looking for a gain of 51 cents a share. that stock is currently down toward session lows, about 3.5% to the down side. back over to you. >> thank you, dom. >> stocks are given up their gains. s&p is flat for the year. the dow and the nasdaq, well, the dow is holding on to a gain. now it's lost 13 points. the nasdaq is accelerating its losses, down 56. given this volatility, how do you invest in this market? randy brown is co-chief investment officer. jim iuorio and jim kill burg assistant i by. the volatility some people expect to see ramp up. can you expect that volatility to co

so, let's preserve and strengthen fannie mae and freddie mac. because without them there really could be no place like home. liz: they twitter plummeted to earth smacking into the ground, micro blogging can't impress the strait. dubya today the stock hit an all-time low of $37.24 in its young life. the stock trading $4.19. billionaire jeff greene began shorting the stock in december at the price of 70. shares at an all-time high, and beginning to fall. it is the best, for jeff green, joining us live by phone exclusively, stanford law fellow which is a longtime skeptic of growth plans. let's begin with you. you have often said twitter may be a strong company at some point, it doesn't justify the valuation and that is why you begin shooting in at $70 a share. what do you think of the trade today? >> in mid to late december, it was $35 billion valuation. is the only option and didn't have any earnings and didn't have the solid time to brace earnings and an understandable pace anywhere near a level. and the sox are 55-70. very short and successful.

so, let's preserve and strengthen fannie mae and freddie mac.cause without them there really could be no place like home. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. spt-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistincthouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorsm from td ameritrade. ♪ stuart: i think we can both afford $10. i say republicans will extend the majority in the house. >> i will say this to you. you still owe me money from obamacare 2012. stuart: he says there's still hope for democrats in november. unfortunately he is correct since republicans don't have any ability to debate or present clear statements, so why not choose them? that is a rather pessimistic statement. saying stuart, despite disagreeing about 99% of the time, there is no need to attack the man. come on, dominic, thought we had a friendly conversation. and dave chimes in, he goes to the same psychiatrist they do. delusional. continue to comment on facebook and twitter pages. we h

like fannie mae and freddie mac, what is your argument? have the largest functioning bodies in the u.s. billage market and like and the other funds that are working on the equity side, we are dead investors. we are focusing on the securitization strategies that are the foundation of what is going on in the legislative process in the senate banking committee. >> do you feel like you're betting against the government? they can change the rules. >> we are working with the government. what we are really doing is trying to create solutions. our strategies are transferring credit risk away from the taxpayer. that is the function that we serve. >> use it in a different position than saw the guys at betting on the equities. had he feel about their argument? there was a taking any changing of the rules, examining the way the process works. the arguments have some merit. >> that goes back to hank paulson putting fannie mae and freddie mac into conservatorship and crushinging the shareholders in the process. it is not like the government has ripped i

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. >>> bill ackman's firm upped the stake in fannie mae and freddie mac. the largest shareholder in both of these government sponsored mortgage lending giants. shares surged about 9%. fannie mae closed at $3.9 and freddie mac at 3 pblt $87. >>> americans cut back on soda at a faster pace last year than in many years, that according to a new report and even diet soda sales are declining. this is the ninth straight year of declines for soft drink sales overall. shares of coke off a fraction to $38.66, pepsico 8 $3.50. >>> "frozen" topped a billion-dollar in global sales and it surpasses "toy story 3" set in 2010. shares of disney up 1.5% to $80.07. >>> apple and samsung in court again today. this time they are battling over patented technology use in each other's smart phones. as morgan reports, it's google that could have the most at stake in this legal scuffle. >> reporter: apple and samsung are at it again facing off in court for the second time in two years over patents. the new case revolving around design elements and featured use in the company's smar

so, let's preserve and strengthen fannie mae and freddie mac.ly could be no place like home. >>> the battle for trader of thee, joe, continues to hold on to the -- and the najarian brothers are battling it out for third place. there you go. weiss? >> let me say this -- >> boy, there was a stammer. >> it's a -- i feel like the -- it's a one-year contest, and you ever hear the joke about the father bull and the son bull at the top of the hill? so i'm going to take pie time, man. >> i'm hear a lot of bull. >> recent change i will be making likely on friday. i'm unhappy with more than one position, but i think four out of five will do quite woe, actually. >> we're going to go live to san francisco, as the face of facebook mark zuckerberg gets ready to take the stage. and we're ringing the nyse closing bell live from right here, that in honestor of our 25th anniversary. we're lucky to have two people in our control room right now who have been here since day one. that means you, pookie. >> and chris garretty, we are lucky to have you both on board. >

so, let's preserve and strengthen fannie mae and freddie mac.ause without them there really could be no place like home. for $175 dollars a month? so our business can be on at&t's network yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. new at&t mobile share value plans. our best value plans ever for business. ♪ ♪ liz: after spending most of the year in the red, apple is ripe for a comeback. the stock is on its way to closing out the month near the $600 a share level. looking at shares right now, they did hit a new 52-week high today, they hit it twice yesterday, 592 and change right now, the yellow line is apple compared with the nasdaq which looks like it'll close the week down about 2%. apple's shares are largely outperforming the nasdaq over the past week. what's behind the sudden jump? nicole petallides takes a

so, let's preserve and strengthen fannie mae and freddie mac.hem there really could be no place like home. could mean less waiting for things like security backups and file downloads you'd take that test, right? well, what are you waiting for? you could literally be done with the test by now. now you could have done it twice. this is awkward. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. >>> the dow is still holding. let's look at what's happens in terms of our daily rundown. what do we call it? >> we call it what's going on. >> street silk is what we call it. those shares are moving to the down side. >> the target has also doubled here. that implied about a 15% valuation. they're making this evaluation call, expect long-term this is an industrial company that does everything from pumps to tubes, anything oil, gas, and really even airbase related, they handle. >> this is a strong run from the company, just upping the price target. it blew past the last one. >

so, let's preserve and strengthen fannie mae and freddie mac.hem there really could be no place like home. >>> the leaders are diverse, but they all have some key traits which helped them succeed. joining us with a look, is the editor in chief and so much more at inc. incorporated. what a fascinating piece, eric, which you can find on cnbc.com. you know, eric, you at "inc." follow the entry prior neural spirit in culture like no other publication in the country, but what stood out i thought was how many of our top 25 actually failed at one time or another. >> yes, behind every entrepreneur there seems to be a comeback story. jack bogle, martha stewart, steve jobs, they hit bottom before they rose up to the top. >> if you can't handle adversity as a business owner. >> and you shouldn't etry. it was the thing that gave them wisdom or humility and allowed them to get better. both bogle and steve jobs said getting fired is what made them successful. >> that very vivid image that you describe in your piece of steve jobs in the fetal position on his p

so, let's preserve and strengthen fannie mae and freddie mac. without them there really could be no place like home. . >>> the net income soared bolstered, macaw improved book us for that casino group, currently trading up about 8% near session highs. check out las vegas sans and wynn resorts, up as well in sympat sympathy. s so, again, those casino stocks up big today, tyler. >>> thank you very much. to celebrate our 25th anniversary, creating a list of the 25 most influential and transformative people in business in the past quarter century. earlier today we revealed the list and how they ranked. all day we're telling their stories, and now he's the mutual fund pioneer who gave birth to vanguard and invehemented the index fund, number nine on our first 25. investors' pockets than any other. his name is jack boggle. he shouldn't be alive. >> he was in many ways a true innovator in the field of individual investors. abilities to access the markets. >> boggle has had at least six heart attacks. at age 31, suffering from congenital heart failure,

so, let's preserve and strengthen fannie mae and freddie mac.se without them there really could be no place like home. today is tuesday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today. >>> if >>> if you are just engining us, you missed a lot, but don't worry. here's the recap about 2:10 eastern time adam silver announced a lifetime ban on l.a. clippers owner donald sterling. silver says the nba has confirmed that racist comments made on tape were voiced by sterling. the nba also fined sterling $2.50 million, which i do believe is the maximum allowed under the nba constitution. we shouldn't lose sight of the markets, either. the dow is up by nearly 100 points we're going to have much more on these developing stories and lots more coming back with b

so, let's preserve and strengthen fannie mae and freddie mac.m there really could be no place like home. live in the same communities that we serve. people here know that our operations have an impact locally. we're using more natural gas vehicles than ever before. the trucks are reliable, that's good for business. but they also reduce emissions, and that's good for everyone. it makes me feel very good about the future of our company. ♪ i'm almost done. [ male announcer ] now you can pay your bill... ♪ ...manage your appointments... [ dog barks ] ...and check your connection status... ♪ ...anytime, anywhere. ♪ [ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. time for the world lead. claims by the australian firm that they have found some sort of wreckage in the bay of bengal that may or may not belong to flight 370 are being met with heavy skepticism by australian officials and many experts. so why are two navy ships on their way to investigate? cnn aviation correspond

so, let's preserve and strengthen fannie mae and freddie mac. because without them there really could be no place like home. mattress discounters memorial day sale! what's this? a queen-size sealy gel memory foam mattress for just $497? mattress discounters has the largest selection of memory foam mattresses under one roof! comforpedic... icomfort... optimum... and wow! four years interest-free financing on the entire tempur-pedic cloud collection! don't miss the memorial day sale. ♪ mattress discounters >>> talk about awkward. in the last hour, republican congressman paul ryan braped up a meeting with members of the congressional black caucus. ryan had a lot of explaining to do after he appeared on bill bennett's radio show last month and said this. >> we have got this tail spin of culture in our inner cities in particular of men not working and generations of men not even thinking about working or learning the value and the culture of work. there's a real culture problem here that has to be dealt with. >> uh-huh. the tape doesn't lie. it cause

so, let's preserve and strengthen fannie mae and freddie mac. without them there really could be no place like home. pcentury link provides reliable yit services like multi-layered security solution to keep your information safe & secure. century link. your link with what's next. >>> mechanic gets a cold, black people get the flu. that means any economic problems for the nation means economic catastrophe for communities of color. income inequality is glowing, but the racial wealth gap is far larger. immediate income for black and hispanic americans were almost $20,000 less than they were for white work nerz 2012. unemployment rates for black and hispanic americans remain more than double the rates for whites and on and on. what are we going to do? a sold-out summit in d.c. organized by the congressional black caucus is seeking answers. the color of wealth summit starts wednesday and is headlined by nancy pelosi and elijah cummings among others to talk about the summit and et cetera goals. dr. maya rockymora, the president of the center for globa

overall and for boosting the affordable housing goals or maintaining the affordable housing goals of fannie maereddie mac. he wants to weigh in on the policy debate as well. overalldebating the fannie and freddie going forward. he thinks the proposal went too far. >> peter cook, thank you. coming up, we will go back to the new york auto show. matt miller will speak with the president of subaru, tom doll. ♪ >> bloomberg is the only business news service being offered on amazon fire tv. if you miss any of our interviews, you can now watch them on bloomberg on apple tv. featuring live streaming and on-demand videos. it is time for today's commodities report. my colleague joins me with details. >> good afternoon. we have energy prices taking a big kumble today after the latest energy department data showed a surprise, causing traders to do a double take. inventory has been more than five times as much forecast. mexico grows by the most ever since the energy department began reporting this data, backing back to 1990. we are now looking at supplies of 10 million barrels. he called the build up huge a

china that they would begin selling all the freddie mac and fannie mae securities that they had that their central banks owned in order to pressure the united states do have a federal guarantee of those amounts before we would federally guarantee it. rush itself didn't have enough to do that but if china had come by that would have caused pressure. china according to our secretary of treasury at the time paulsen he gave them assurances that the united states would stand behind that debt before there was any legal basis for those assurances. so there is something a little troubling about the whole pacific's dreaded g. that the pentagon is rolling out at a time when somebody who was the biggest single creditor aside from the federal government is china who is the antagonist that we are anticipating. there is something very unusual about that and it's extraordinarily hypocritical to hear politicians china -- who basically buy their votes on the budget voted to mortgage the country's future revenues to china china. >> i would observe this was another place where you and the tea party wer

when we had a run on freddie mac and fannie mae in 2008, vladimir putin and russia, what put pressure on china, that they would begin selling all the freddie mac and fannie mae securities that they had, that their central banks don't, in order to pressure the united states to have a federal guarantee of those amounts before we federally guaranteed it. if china had combined, that would have caused some pressure, treasury secretary paulson give assurances the united states would stand behind the dead before there is a legal basis for those assurances. there is something a little troubling about the whole pacific strategy that the pentagon is rolling out as a time when somebody who is the biggest single creditor aside from the federal government in china, the antagonist we are anticipating. there's something unusual about that. extraordinarily hypocritical to hear politicians china bashing, to basically buy their votes on the budget voted to mortgage the country's future revenue to china. >> this is another place you and the tea party are more in league than you ever expected to be becau

so, let's preserve and strengthen fannie mae and freddie mac.hout them there really could be no place like home. stuart: right out of the commercial break. pope francis. tweaking out inequality is the root of social evil. all right, liz. the pope is discussing economic policy. number one, should he be doing that? mark zuckerberg does not stop somebody from creating a business. we have had socialistic experiments around the code. the worst income inequality -- when you talk about what fixes income inequality, that is something different. >> that is capitalism. do you think, do you believe that the pope skews left towards socialism? >> does he skew left towards socialism? stuart: does he? after that kim is a station of pope john paul ii. stuart: okay. there is a quote. >> i have to move on to streaming. we say it all the time. it is king. we were on the upside. we are talking amazon. look at yahoo!. two comedies coming up next year. nearly 4% up for yahoo!. check out the latest washington post paul. the president's approval rating has dropped to 4

so, let's preserve and strengthen fannie mae and freddie mac.ut them there really could be no place like home. a lot of people would like it to grow. that is ahead. look at apple, hit a 52 week high earlier, $5.99. to the big board, we're two points. and flat markets, close to a closing high. all right, that that could be bad weather, obviously that is a factor. but 0.1%, that is week. stuart: if you don't think it is a red flag. charles: there is no way you can take a victory lap on this. stuart: i say it is a fall as a problem. i don't think it is the weather. this is the president's policy which he pursued for five years, tax, regulate, spend a lot of money, go into debt, that is the problem. charles: the policy of taxes too. taxes were devastating, electricity prices that high, health care costs of gone up dramatically. 7%, $40 billion, imports were down, we had the polar for tax but couldn't export things? there is something wrong and i think it gets back to policy. this is a great economy. people should not write america off we will never

if you're out there trying to get a mortgage, most big banks are selling their production to fannie mae and freddie mac. like i said before the federal housing administration. they make sure you fit within the four corners of the box. credit unions and community banks may be more forgiving. maybe stuff outside of the box. maybe a condominium, maybe you had credit problem because you lost a job. credit unions and community banks tend to put the loans on their books. they aren't selling those into the secondary market. they may be more flexible on different requirements that a big bank may say, sorry, i'm not doing that right now. >> you mentioned credit scores. maybe getting condo, regular house. another arena they're loosening up, down payments of 3%. that is certainly a big change for a lot of folks out there, nick. >> that's right. in fact the fha had 3 1/2% down payment mortgages throughout the crisis. what is different that it isn't easier to get the loans but there are more options. private sector options for 3% down mortgages or 5% down mortgages. fha jacked up insurance premiums

so that borrowers who would otherwise not legally qualified for the fannie mae mortgages, could obtainnlawfully. this is a large-scale mortgage fraud case that we estimate to include hundreds of millions of dollars worth of falsified loan applications. if we have learned anything from the recent mortgage crisis, it is that at some point, these schemes unravel and taxpayers can be left holding the bag. financial institutions in short have to obey the law and follow the rules. our financial system is predicated on this basic concept. >> that is manhattan da cyrus vance, junior. matt taibbi, you are at the trial. you heard prosecutors vance suggesting some link to the financial crisis, but that wasn't the case. >> i mean, it's on the steamers. humorous.most here he is holding this grand press conference. they had a chain gang were they chained 19 defendants together and hold them in the court for this exercise. >> all working for applicants? >> yes. these are working-class chinese immigrants, basically, the highest-ranking official in this entire case made $90,000 a year. many did not spe

the federally-controlled mortgage finance giants, fannie mae and freddie mac blame strained credit and labor markets for the lowered expectations. and when it comes to renters the picture is even less rosy --rapidly rising costs, coupled with slow wage growth is spelling trouble for the middle class. to be considered afffordable rent shouldn't exceed more than 30% of a household's income -- and that doesn't include utilities. but that rule of thumb is being surpassed in many metro areas including new york, los angeles, chicago, miami and boston -- among others trulia economist jed kolko confirms it is a trend that started during the recession. rents are rising faster than wages and income have been. and even during the recession and the housing bust, rents continued to rise in many cities across the country. that means that even though buying became much more affordable after prices fell and mortgage rates got very low, but we didn't see the same improvement on affordability on the rental side. nationally, rents now require a higher percentage of income than they have in the past 30 ye

senate bill aimed at shutting down the government-run morning financeier and the sister company, fannie maeould pose a risk to the stability market. they alerted the market that is giving them a private lending role before the companies are eventually phased out would undermine the important roles that fanny and freddy play in guaranteeing 60% of the nation's home loans. >>> now if you have been looking for buy or down size to a smaller home you will probably find there is not much out there on the market. so no wonder many home buyers are thinking of remodelling their old home instead of buying a new one. diana oleg has more on the push to renovate. >> reporter: the riley family is re-thinking the way they live. with one child already in college and another leaving in the fall, you might think they would be looking to down size. but it is just the opposite, because they expect the kids to move back in. >> for them to come back here, they're going to spend thousands of dollars a month on rent. so the idea was to build a suite downstairs for them to have their own space when they came back h

are still spooked by the housing crash, which cost them billions of dollars in payments back to fannie mae, freddie mac and the fha. >> a lot of bankers are saying i never want to service a defaulted loan again. which means i won't originate it. >> reporter: mortgage analyst paul miller has been revising his numbers down for mortgage volume every month. he's at $1.1 trillion worth. compare that to $1.9 trillion many 2013. >> the bigger guys are not going to do it. that's where you get the marginal borrowers. that's how you give them credit. >> wells fargo said it would start offering loans to those with lower scores, but only through the fha and only through their own retail channels. it's a very small share and a far cry from the days of sub prime lending. >> after a long season of cold, snowy weather in most parts of the country, retailers were feeling the brunt of old man winter. many of those companies are now betting on an extreme case of spring fever. >> reporter: this year has been harsh for retailers with severe weather winter keeping shoppers at home, cranking up the heat, subs su

clearly still spooked by the housing crash, which cost them billions of dollars in payments back to fannie mae, freddie mac and the fha. >> a lot of bankers are telling me now, i never want to serve a defaulted loan again, which means i won't originate a loan that does default, i'm keeping my credit scores above 700. >> mortgage analyst paul miller has been revising his numbers down for mortgage volume every month. now, he's at 1.1 trillion dollars worth. compare that to $1.9 trillion in mortgages made in 2013. >> the bigger guys are just not going to do it. that's where the scale is. that's when you really get, you know, the marginal borrowers, below 680 fico scores, that's how you give them credit. >> wells fargo recently said it would start offering loans to borrowers with lower fico scores but only through fha the government's mortgage insurer and only through wells' own retail channels. it's a very small share and a far cry from the heady days of subprime lending. i'm diana olick in washington. >>> maryland lawmakers are trying to help some of the have-nots. they've easily passed a bill t

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those are issues by fannie mae and freddie mac are in all this directly when into the coffers of federalernment. so we have two schools of thought. and then you have the people who are afraid that they will be moving too slow. lou: let's get to the real news of the day. this continued play 60 minutes and high frequency trading. the world is aghast that this is going on. we have been reporting on this broadcast for years. and the fact is that it is a character set of the marketplace and it's approved by the sec released in acquiescence. and they also sell a lot of access to the market. with high-speed lines. >> shirt. to your point, all of a sudden some guy having an epiphany a couple of years ago -- i mean, give me a break. in $2097.9 billion in revenue. it's not a new phenomenon. but i will tell you that i think it is part of larger picture. in this book there is the hero and you go to the exchange. there is a video. what does that have to do with high frequency trading? and it was more political than anything else. and there something deeper here. i feel that it's another attack on cap

you put a lot of stock, to my surprise, in the community reinvestment act and fannie mae and freddy mackhey were part of the problem, but you don't talk much about the large private investment banks that if you priefize them, which were enormously large part of the runup in the early 2000s, and, to me, without that, you would have had an unpleasant system, fannie mae go broke, but loans made were not made under the reinvestment act, and seems to me the moral hazard problem is a bigger problem than cause. to me, the housing market, the place that oozed out into, could have been something else. who wants to go first? >> i'll start, and then charlie will finish. all right, so i think it's important to get the chronology of the facts straight. as i mentioned, private investment banks get in in the early 2000s. >> they see a market opportunity that fannie and freddy placed for them going back to the 1992gse agent. that act has several euroyows features, one of which was it told fannie and freddy they had to repurchase loans from banks that met affordable housing standard criteria. >> they had

legendary fannie mae and dave barry and angel of death nick gillespie. this is the independents.he i am matt welch along with kmele foster and our special guest for the

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so, let's preserve and strengthen fannie mae and freddie mac.look at energy, one of the big winners on s&p. >> the best one so far in the s&p 500 today. energy stocks are on fire. the s&p energy index is hitting an all-time high today. among the energy stocks that are hedging their 52-week highs this morning, check out shares of exxon mobil, schlumberger, and it's overall a great day, but it's not oil exploration production, services, it's across the board. a decent day for the energy stocks. >> dom, thanks a lot. >>> getting word that germany siemens is in the process of submitting an offer to acquire the energy business of france's alston, according to the frinch economy minister. he said it's being considered by the board. of course, general electric has an offer on the table for the power division, although we know so much of this is happening in the halls of the highest political offices in france. david, do we -- we talked about this the other day. >> we did. that will be an important part of this. they have confirmed that. in fact, siemen

i mean, think -- remember john costigan, the guy who turned around fannie mae -- or freddie mac, excuse me, so earned the ability to turn around the irs. but he didn't turn around freddie mac. quantitative easing did. mary barra is not taking responsibility for a company she has worked for for 33 years. she might be new to ceo, but not new to general motors. not even general motors engineering. >> by the way, all -- all a result of the division that had the cobalt cars in question. i'm not here to bash her. >> right. >> the fact of the matter is, it continues a pattern where maybe in this litigious society we live in, and i have a couple of lawyers coming up, you have to cover your hiney, right? you have to say, for p.r., that you feel bad about what happened, but you won't take the blame for what happened, right? >> right, exactly. so it's a system that works together. the more litigious we are, then the more we cover our hinies as you put it, so poetically, so the system needs to be fixed. we need good tort reform. but then again, what let trial lawyers say? oh, she didn't blame herse

and more disciplined, fannie mae and freddie mark -- freddie mac. it created a whole industry. we can then look in more detail at health care and say how has this played out, what does it say about this debate, keep the government out of my health care, and the affordable care act actually fix things? this is a graphic i came up with to visualize the progressive of health care regulation or back to the 1800 some of the public health regulations sanitation, and layer upon layer, medicare and medicaid and today health reform in the form of the affordable care act. with significant is the latest don't tend to go away. with very few exceptions. wantonce a program is in place it stays. we tend to build. the conventional view would say this is crowding out the private sector. has it? here's the growth of national health expenditures in the united states. if the work a crowd that out that my be good thing because we have seen astronomical growth to the point that health is now almost 18% of our entire economy and it continues to grow at a rate of unknown and the rest of the developed