clinton, president at the time made it mandatory, although it's gone back two years and he said okay, freddie mac and fannie mae, to government-sponsored enterprise have half-year loss of affordable housing, i.e. subprime lending. that was a germanic announcement because of the size of freddy and fannie. there was an article in "the new york times" identified the risk involved in this issue in a sad lesson, freddie and fannie are so big that there's no way they can meet this goal without radically reducing mining standards and home mortgage business. for legitimate affordable housing market is not that big. if they achieve that goal, they'll take so much risk that freddie and fannie can get in financial trouble and that could have been in 10 years. they are so big they can take out the whole u.s. financial system. nine years that have been. we have $5 trillion had $2 trillion in subprime mortgages. even before they failed, they were leveraged 1000 to one. that means that a thousand dollars in debt. and it's like having a net worth of $10,000 in being able to burrow $10 million. humiliated that is

bill clinton who was president at the time made it mandatory, he said, okay, freddie mac and fannie mae. you have to have at least half your loans and affordable housing. that was a very dramatic announcement because of the size of fannie and freddie. an article in "the new york times" identified the involvement in this issue. freddie and fannie were so vague that there is no way they can meet this goal without reducing lending standards. so if they had achieved that goal, they would be taking so much risk and that could happen and they are so big that they could take out the whole u.s. financial system. nine years later, it happened. when they fail, they owed $5 trillion and they had $2 trillion in subprime mortgages. even before they failed, they were leverage 1000 to one. that means they had $8000 of that for every dollar. so the only way to do that is if the government guarantees your debts, not exactly what was going on. this is something that is way underestimated. you have the dominant player and has over half the market driving down lending standards. it sucks everyone into the

it is between the banks and freddie mae -- fannie mae and freddie mac.re is an apostle about who has to hold a mortgage if the market goes bad? -- a tussle about, who household mortgage if the market goes bad? over the last couple of years, there is a problem called put back. the banks are afraid that fannie mae and freddie mac will put the mortgages back on that if the ec documentation problems. this is one of the reasons why we have been in an environment for the last couple of years where the federal reserve has pushed interest rates were low. you would think that would help to get a mortgage market going, but it has been slow to recover. there are signs of progress here which we could talk about. we are starting to see mortgage writing happening with some pickup in mortgage writing, but it has been a slow recovery, in part because all these different levels of the mortgage writing process, trust everyone of these points broke down during the financial crisis. host: trust as an element of the economy. our guest wrote about it, and you can ask him ques

he said freddie mac and fannie mae has to have at least half your loans in affordable housing i.e. subprime lending. that was a dramatic announcement because of the size of freddie and fannie. a number of economists identify the risk involved in this issue and said listen, danny and freddie are so big that there's no way they can meet this goal without radically reducing lending standards in the home mortgage business. so it is not that big. if they achieve that goal, they're taking so much risk that studying for any candidate in financial trouble and they are so big they can take a couple u.s. financial system. nine years later it has been. what freddie and fannie failed, the outside trying dollars and they had $2 trillion in subprime mortgages. even before they failed, they would average 1000 to one. it would be like you having a net worth of $10,000. the only way you can do that is if the government guarantees your debt and this is something way under estimated. when he had the dominant player with over half the market share driving down lending standards, it everybody into that

and to improved administrative efficiency -- wind down for fannie mae and freddie mac. this will insure this system primarily supports housing affordable to low and moderate income households. our report provides considerable detail about the individual components of a housing finance system we envision. it describes the structure and responsibilities of the new government entity we call the public guarantor. that entity will administer the limited catastrophic backstop and it outlines the roles of the other actors in our new system, the originators, mortgage servicers, issuers of securities, and the private entities that will credit enhance these securities. unlike many proposals that call for special congressional it started entities to issue it and credit and hands mortgage securities and to carry a government backing, we call for a wide range of entities without special government charters but subject to rigorous approval standards and capital requirements to participate as issuers and private credit and answers. a final note -- the commission report identifies seve

between fannie mae and freddie mac and fha those three entities underwry all of the home loans. as the americans want a 30-year fixed you are going to have uncle sam in the picture. >> dave: that means a disaster on s on the way. fha insured about 740,000 loans that were in foreclosure, about 10% of the one trillion dollars of the mortgages may be in trouble? >> that may be an understatement. the government will throw them out of business because the government guarantees of fannie and freddie and fha, government is not around we don't have a market. privatize them and break it up you will get a private market and in terms of government, governments hurt the housing market. we have dozen countries that have higher ownership than we do. >> dave: when the government tries to fix the mortgages it fails 40% of those mortgages that have been reconstructed are now in foreclosure again? >> you are probably right. i think john is too hard on some of these government insurances. don't end them. let's put a $50,000 cap on things like mortgage insurance. let's put a cap on deposit insuranc

according to freddie mac, 30- year rates surpassed 3.5% for the first time in nearly four months. the average 30-year fixed rose to 3.53%, up from 3.42% last week. the 15-year fixed jumped to 2.81% from 2.71%. the company allegedly behind robo signing mortgages is paying a $120-million settlement. 46 states will recieve a share of the payout. the company, lender processing services, is accused of wrongfully foreclosing on homes when people should have been allowed to stay. the company is accused of using robo-signing to automatically sign documents without proper review. shares of lender processing services rallied yesterday. walmart is putting limits on ammunition sales. the world's largest gun retailer will limit sales of ammo to three boxes per customer per day. walmart says it's in response to limited supplies. ammunition and gun sales have risen following the tragic sandy hook school shooting. most of the picketing against walmart is coming to a close. walmart filed a complaint with the national labor relations board after the union lead a demonstration during the holidays. u

mortgages because of the old days they would expect to just sell mortgages onto fannie mae and freddie mac. so within the last couple of years, there's this problem called a fax that the banks are afraid fannie mae and freddie mac will put orchestras if they find any little documentation problem. so this is one of the reasons why we've been in an environment for last couple years, with the federal reserve has pushed interest rates really low. you would think that would help get the mortgage market going, but it's been slow to recover. there signs of progress here, which we could talk about. we are starting to see some mortgage trading happening, but it's been a very slow recovery in part because all these different layers of the mortgage writing process stressed that every one of these points broke down. >> host: trust is an element of the economy. our guests read about it. you can ask questions for the next minute or so. jon hilsenrath joins us until 8:30. 202-58-5388 euro for democrats. (202)585-3881 for republicans. (202)585-3882 or independents. if you want to send a tweet, c-span wj.

then former house secretaries talk about fannie mae and freddie mac. c budget cuts or states. >> the housing commission released a report on monday calling for the elimination of fannie mae and freddie. it included henry cisneros, mel martinez, kit bond, julia stasch, frank keating and pamela patenaude. >> this is the target and it means mostly helping people secure private housing. which is assistance that is not mostly government own housing, but private housing and that is where most of the housing is. we need to make it more affordable. we will take a question from someone on this site. then if we could get through the next five minutes. yes, ma'am? >> i represent retired professionals and those that remain passionate about housing. when i started my career in the 1960s, fannie and freddie were created in the secondary market to incentivize private lenders to lend to people who normally would not be eligible for housing finance. so now that you are recommending that there be private sector bags taking on greater risks, they are not even fixing the p

you can actually do better than that according to fannie mae and freddie mac.eal. not only is it good for sellers right now because there is so little inventory on the market, the real estate agents are saying come back in. at the price point of say a million dollars in this part of somerset county they're getting multiple offers. they say now is the time to come in. for buyers it clearly is a good deal. for sellers absolutely it is perhaps time to get in. expect expect prices go up slowly not near the peak of 2007 but certainly off the bottom. tracy: time to get in you have 250,000 lying around. adam shapiro, thank you very much. ashley: the strength in housing is helping companies that make products for the home. fortune brands home and security makes cabinet, fawcett and locks and it had a phenomenal year -- faucets. they have at a 52-week high. chris klein is here to talk about it. shares are up 70% over the past year. does this truly reflect the improvement that we're seeing in the housing industry? >> absolutely. we've seen real strength in new constructi

there's elements of truth on both sides, but it is the case then a man freddie mac, these two giant wordage finance firms played a role in writing that mortgages written in the housing boom are creations of congress in the capital requirement for this institution and oversight of those institutions was sent as it was for the banks. .. >> guest: i saw the elements of this in so many different facets of what i was covering. i covered the federal reserve, it was clear to me from covering the fed that the publickest make of that constitution that is changed in the last few years. when i look at morning market and stock market, why look at the rangeling that goes on between republicans and the white house, i mean, it's clear there's common demon nateers here. i want to understand more about them and more about what was happening. i should say i got a lot of response to the story, and i get the sense from what viewers are saying too, i mean, people i think there's starting to recognize there's a problem. i talked to a few companies that see this as a fundamental problem with business and trying t

repaid more than $187 billion to bailout fannie mae and freddie mac. 60 million homes went into foreclosurebut they pay by being forced out of their home and a never ending list of the attorney general's hit the metaphor for closures of the many but the rating agency? off scot-free until yesterday. more on the blame game with a federal prosecutor. could the free-speech defense work? >> best said looks to extract their flesh from the bust but what about the folks who lost their charm? gerri: the u.s. government blaming standard importers and the parent company for its part of these potential meltdown. to have an interesting defense. federal prosecutor, and thanks for having me. things for the argument being made. >> what the government is saying it is under the 1989 law that the s&p defrauded those that give federal jurisdiction. it is not a criminal case but with the aaa rating. >> the is and the desire for increased revenue downplays the credit risk to favor the large investment bank. but the s&p says the lawsuit would be without factual or legal merit, they would be wrong saying it was dr

>> this is why you are not seeing the government act too quickly on fannie mae and freddie mac. they know that they have to perform, restructure and in some cases eliminate what these two entities do. they do not want to undermine the housing market because it is such a big part of this housing recovery. that is why you are seeing them move more slowly. i think you will see reforms made. it will be slow because the government does not want to do anything to interrupt the housing recovery. the second thing is helping, in addition, is the fed. the fed creating easy money. it is hurting a lot of people, particularly seniors who are on a fixed income. it is driving people to buy riskier assets. the government has got to take advantage of both of these things and do some spending cuts and they have to move on that. dagen: robber, it was great to see you. be safe getting home. have a great weekend. the governor of connecticut, malloy, has created a state of emergency. roads are subject to closure at noon today in the state of connecticut. bank of america went back a $2.5 million mansi

says well the markets expect that will bail these companies out but just like with fannie mae and freddie mac. before and during the lead up to the financial crisis everybody is expecting the government to bail out banks if they don't trouble because of the belief in washington is that we have to maintain stability ben bernanke is explicit mandate at the fed is to maintain price stability washington is all about trying to create stability in financial markets there's no way that of goldman sachs or j.p. morgan chase were to go insolvent that they wouldn't be bailed out so there is this this expectation exists and it was explicitly put in place by the dodd frank act warren there she cited this figure of eighty three billion dollars that a few banks get in subsidy isn't this is taxpayer money where the banks be able to survive without being propped up by taxpayers. well let's let's parse out this eighty three billion number because it might sound as if taxpayers are actually giving that in cash to the banks that's not exactly what's going on it's in the form of that is right yes so it's an impl

will also hear from frank nothaft was a chief economist at freddie mac, and frank is an expert. i've known frank for -- i was held on, because he looks much younger than i do, but it's a long, long, long time, and he is an expert in the housing market and i think that's one of, if not bright spots at least brighter spots in the economy today. and then finally we'll have bob costello was the chief economist at ata. in this economy we build stuff that would put on trucks and we move it around. so if you're trying to keep track of the trucks you can also keep track of the economy and bob does an amazing job of that. i'm happy they all agree to be here this morning. when you look at the u.s. economy today we see an economy that have started growing three and half years ago. the problem is that it never hit its stride. it grew but it grew at an average of about 2.3% which is virtually our long run potential. and as a result we never made up the gdp gap from what was a very steep and prolonged economic downturn. so you've seen this chart in the recent cbo, a little different because c

fannie mae and freddie mac replace them with a public garn tore which would guarantee mortgage paymentsthout buying issue mortgage backed security. while it was necessary for the government to step in when the market collapsed five years ago the current role in housing is unsustainable at the moment. fanny, freddie report 90 percent of sij family mortgages and faa faces billions of dollars in losses. they also express the concern that credit worthy people are being denied housing due to overly strict underwriting standards. if they step back private lenders will step in. these recommendations are go on to congress and the white house and will be keeping an eye out to see if they show up in any votes. thank you, diane. 46 after the top of the hour. still ahead talk about a wild ride. how did this pickup truck end up on the roof of a house? >> do you still need to plan your family's spring break? it's not too late. we have the best destinations and deals. first let's check in with steve doocy to see what's coming up on fox and friends. >> those places look fantastic. i will be watching. s

have created basically a structure around them that is like the structure we had fannie mae and freddie mac. no one is willing to acknowledge there's an implicit government guarantee. we are hoping that these institutions won't fail through some combination of competent management and government supervision. i don't think that you actually have that combination. and so then what you're left upon relying on is the capital liquidity cushions to hope when they -- and when the regulators, not if, but when the regulators don't catch it in time, there enough of a cushion so you don't need to come in and do another bailout. the thing i found most significant about this, is federal reserve governor, dan, who is the lead governor at the fed for implementing the systemic risk options of dodd-frank. he said basically we don't know how to measure or do this. congress, you are to do it again. for the lead fed governor, appointed by president obama who worked for president clinton to say we don't know how to measure systemic risk or address it when was that the corp. function of dodd-frank. i think it's

between fannie mae and freddie mac and fha those three entities underwry all of the home loans.ericans want a 30-year fixed you are going to have uncle sam in the picture. >> dave: that means a disaster on s on the way. fha insured about 740,000 loans that were in foreclosure, about 10% of the one trillion dollars of the mortgages may be in trouble? >> that may be an understatement. the government will throw them out of business because the government guarantees of fannie and freddie and fha, government is not around we don't have a market. privatize them and break it up you will get a private market and in terms of government, governments hurt the housing market. we have dozen countries that have higher ownership than we do. >> dave: when the government tries to fix the mortgages it fails 40% of those mortgages that have been reconstructed are now in foreclosure again? >> you are probably right. i think john is too hard on some of these government insurances. don't end them. let's put a $50,000 cap on things like mortgage insurance. let's put a cap on deposit insurance. $50,000

freddie mac releases weekly mortgage rates and better reserve releases consumer credit date for decemberon-line game maker zynga stock soared yesterday after a better than expected quarterly statements and earnings. the sampras's company who makes games like farm bill saw its stock jump over nine percent yesterday. >> it was an accident in san diego. a car suspended over an outdoor staircase. this happened yesterday when authorities say seven the road and lost control of his car. you tried get a parking voucher edible when the car started to roll forward. the man that is oriented and hit the accelerator is sending the car through the gate of the parking lot, over occurred, through a metal guardrail an end to the building. the driver had to wait while crews figure out a way to safely get him out of the car. he was not hurt. >> to breaking news stories one of vallejo with there was a home invasion and three people were shot. also we are looking live in los angeles as they are searching for a former police officer, an lapd you can't move the tv there. yuh-huh. we have a wireless receiver. l

we pay more than $187 billion to bail out for fannie mae and freddie mac.omeowners lost seven and a half trillion dollars in equity. 60 million homes went into foreclosure. to be sure, homeowners may mistakes bu with but they paid g forced out of their homes. banks have paid a price and a never-ending list of attorney general's hit them up for foreclosure settlement money by the rating agencies got off scotch free until yesterday. coming up, more on the blame game. telling me if the free speech defense could work. all stations come over to mission a for a fifinal go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. gerri: the u.s. government blaming their part of the financial meltdown that the rating agency said it did nothing wrong and have an interesting defense. i'm in now, former federal prosecutor, great to see

tom: good news for some homeowners, some, but bad news for most taxpayers, fannie mae and freddie mac are wiping away debt for certain people underwater on their mortgages, but government stillos tax payers bailing out money from the entities, john said this deal is too sweet. >> it's not going to work, if you talk about people walking away from home mortgages, people say why are they allowed to walk away, most americans have an obligation to pay, like other modification plans, this is not going to work, people that are current in payment, and government has arrived to take up 20% of your intangible assets, people that are current on the payment are not going to walk away from the home, this is a political ploy to try to appeal to certain base. this does not work. tom: this is my first impression too. to qualify for this program, we have been through, i lost track, i don't know if you kept track, but there must have been 5 or 6 programs in the last 7 years, that have been tried that are similar to this, and not one of them, the more qualquations they put on it the tougher it is, why n

the new york governor also sent letters to fannie mae and freddie mac. why did he do that? overnment, as you know, backs most of the mortgages in the country. freddy and nanny are in charge -- freddie and fannie are in charge of these loans. fema is the slowest. private insurers have done a far better job. >> shepard: all right. gerri willis in new york. we'll watch for you this afternoon. 5:00 eastern time on the willis report. we could know who will be the next pope in a little more than a month or so. whoever gets the nod will lead the church through very difficult and confusing times. we'll look at what's ahead for catholics around the world that's next as "studio b" reports live from rome. >> shepard: 41 minutes past 9 p.m. here in rome. the vatican behind me, and there pope benedict's final public mass is now in the books. thousands of worshipers packed st. peter's basilica for the ash wednesday service, marking the start of lent. the retiring 85-year-old rode down the aisle in a wheeled platform, sparing him from having to walk. it's not easy for him these days. the p

right now, fannie mae and freddie mac are making it more difficult to get a mortgage but they are goingough the fha. this is part of the problem -- not that we don't have enough regulation, is that we don't have good regulation or people enforcing those regulations. guest:

we'll hear from the chief economist for government lender freddie mac. >>> the search goes on tonightor a former lapd cop suspected of going on a shooting rampage, killing three people. special report from washington starts at 6:00 eastern righ. right now, back to new york and the five. >> a new study from kansas state finds people who use the internet at work spend most of the time doing things unrelated to their job, a if h phenomenonn as cyber loafing. i say forget the impact on work. how does it affect your life? the danger of cyber loafing is the word itself. when a reporter attaches cyber to a word, it's because they're out of ideas. dana's new app, cyber jasper, but more important the danger of surfing isn't the time wasting, it's the crippling fear of action it encourages in your life. the laptop simply makes it that much easier to avoid doing things as you watch others do do things all around the world. achievement has been replaced by observation, and that makes it harder to move. we are creating a nation of gaw gawkers, cowards who can't people to people, texting, writing o

. >> brian shactman, why don't they go after fannie mae and freddie mac? list of culprits for this whole disastrous housing meltdown, rating agencies near the top. banks and wall street brokers, near the top. i agree. what about fannie and freddie? at the order of the department of housing lowered credit standings constantly. they started in the mid to late '90s and they continued right through the boom. where is the subpoena for fannie and freddie. >> >> i don't know how that would even work. i don't know how that would actually -- >> suing for $180 billion.even . i don't know how that would actually -- >> suing for $180 billion. >> for me it comes back to if they don't go after other entities, that's one thing. but what woo they really expose the themselves to government resources if they didn't make the case? >> i think they want to look like they're looking tough on thib they can be tough on. what i find incredibly rich, was the government to blame in some cases is this the ratings agencies are monsters that were created by the government. state after s

in the old days they expected to just sell the mortgages to fannie mae or freddie mac. over the last couple years there's been a problem called putbacks, but the banks are afraid fannie mae and freddie mac will give the mortgages back to them if they find any documentation problems. this is one of the reasons we have been in the environment the last couple years where the federal reserve has pushed interest rates really low. you would think that would help to get the mortgage market going, but didn'it has been very slow to recover. there have been signs of progress. we are starting to see some mortgage writing happening, but it's been a very slow recovery, in part because all these different layers of the mortgage writing process, trust account. host: trust as an element of the economy. our guest wrote about it and you can ask him questions about it for the next few minutes. john hilsenrath joins us from the wall street journal until 8:30. here's how you can reach out to him -- you can send us a tweet -- or reach out to us on facebook. or send us an e-mail. if trust is

at an economic briefing here this morning, the chief economist of mortgage giant freddy mac said there's been a spat of positive housing news recently and he expects the momentum to continue. >> we're expecting total home sales up in 2013 and we expect the feaferrable news o favorable prices. they're up 4 to 6% last year compared to the year prior. we're expecting 3 to 4% increase in national house price indices in 2013. >> you can see how the housing recovery has played out in these maps between 2009 and 2010, only north dakota and dc saw housing prices rise, both with economies that held up well, one thanks to shale oil, the other thanks to a gusher of government spending. then in 2011 we saw the markets perq up in four more states and by last year, prices were higher in all about seven states. he sees new home construction jobs up 25%. he's expecting a 20% jump in housing starts this year. he also sees mortgage rates inching up from about three and a half percent for a 30 year fixed rate mortgage but remaining below 4% for the year. but he worries about possible public policy disrupti

freddie mac says the average is 3.53% this week. the 30-year dip as low as 3.31% back in november.tgages are encouraging more people to buy homes and to refinance. higher home sales push up home prices, which in turn makes consumers who are wealthier, more likely to spend. guys, as you know, the spending accounts for 70% of all economic activity. >>> shartia, thank you. >>> one of the stars of the olympics will be in d.c. gymnast gabby douglas will be at the washington auto show today signing autographs, meeting with fans there. the 17-year-old will be at the convention center tonight at 6:30. she won the all around gold as well as team gymnastics gold. this is the final weekend for the auto show at the washington convention center. it features more than 700 domestic and foreign cars. doors open today at noon and tomorrow and sunday at 10:00. >>> most of us -- >> rang in the new year. >> rang in the new year last month. but in weekend will mark the beginning of the chinese new year. on sunday, we'll come out of the year of the dragon and enter the year of the snake. >> you're looki

now, i checked with fanfannie mg with freddie mac, and they said the strategic defaulter waiting periodyears. other former borrowers can prove hardship or short sales but not if uk walked way when could you pay. is what left in government. fha requires three-year waiting period. if you walked away as late as 2010, you could soon be good to go buy again. tyler? >> wow. thank you, diana. that's amazing. >>> terrible and feared disease. that many thought could never make a come back, is. right here in the united states. we will tell but it after the break. also ahead, the next round in the battle between google and apple and hollywood insider on who will win big this weekend at the oscars. and while we're at it, we are asking you to go on finance.yahoo!.com and answer, which of these classic movies that didn't win best picture should have. which of those five? and before the break, this quote. if i hadn't been very rich, i might have been a really great man. who said it? which movie did it come from? we will tell you more later. more famous quotes and where they came from coming up. we'll

freddie mac says the average rate on 30-year loans at 3.56%.an the prior week. 15-year loans staying steady for the third week at 2.77%. even though rates have been heading higher, they are still close to the record lows for the 30-year mortgage 3.31% back in november. housing market shooting higher of late and certainly those low mortgage rates are helping out quite a bit. >> market is heading higher after two days of pretty decent selling. see how the numbers are looking. right now the dow is up by 39. nasdaq up 10. s&p up 5. hp up by 6.5%. michelle and frank, back to you. >> thank you. have a great weekend. >> reporter: you, too. >>> a prime piece of peninsula real estate is up for sale but it comes with a catch. the owner gets to stay. the $100 million property sits on 46 acres in hillsborough above san mateo creek and south of crystal springs road. the 16,000-square-foot mediterranean style mansion is owned by a 76-year-old man. he was born and raised in this luxury home and he wants to stay there until he dies. the mansion features 7 bedr

freddie mac shows the same rate as last week. still very low. let's check the big board again.sses on the dow. housing stocks leading us lower today. ♪ i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. david: you are happy for the guy, but happy it was not for you. and amateur baseball club attached $92,000 at an auction. not a bad profit. we are looking at a dow that is down 122 points. let's look at one stock in particular. let's take a look at yelp. nicole: they came out with their quarterly report. revenue was stronger than expected, earnings per share came in a little light. they talked about strong revenue growth. it is down 6.6%. they do the listing on websites. dramatic sel

to the housing market the latest read on freddie mac 30 year fixed-rate mortgage rate, no change stayingow. check the share price of yum brands, operator of taco bell releasing the cool ranch flavor of its doritos taco, big news, this comes one year after release the not so -- come cheese flavor. coming up, valentine's day. a lawyer who is giving out a free divorce to the couple with the saddest story. i don't believe we are doing this that this is the way "varney and company" does valentine's day. little different. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ (tra horn) vo: wherever our trains go, the economy comes to life. norfk southern. one line, infinite possibilities. stuart: world's biggest airline american airlines u.s. airw

the housing market, the latest read on freddie mac, the 30 year fixed rate mortgage is 3.p 51% -- 3.51%arbucks customers are using starbucks wifi. they will be able to access 15 free articles a day from the new york times. otherwise you only get 10 articles a day if you are not in starbucks on their wifi apparently. another company capping its service is pandora, the on-line music company is going to limit its free listeners to 40 hours a month, pandora. back in 90 seconds. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing. stuart: charles brings us stocks which he likes. we're going to follow up on one that he's done recently. he did like monster beverage. what's the follow up? charles: there's two things. first i want to let people know you have to avoid trading after the market closes on emotions. the stock was down $3.50 in th

freddie mac releases weekly mortgage rates and the federal reserve releases consumer credit date for zynga stock soared yesterday, after bed and expected quarterly earnings statements. if the san francisco company, will make gains like farm bill saw its stock jump over 9% yesterday's. the company up to $2.99 a share. although still a far cry from the almost $16 a share high for the stock. >> we will watch the market and be back at the weekly jobless report at 530. >> one bay area city has the highest average credit score of their to the others across the country. according to a report by trans union, san jose has the highest average credit score. augusta, georgia is one of 10 metropolitan areas with the lowest credit scores. a low metro rating does not just indicates that people live there are sloppy built theirs. some areas are likely to have a high and a rate or have been hammered by home foreclosures. >> the state department of public health has issued fines against three bay area hospitals or health code violations that it says are likely to cause serious injury or death to patie

we also got the latest read from freddie mac on their 30 year fixed rate mortgages. week. all this and weekly jobless claims, up 20,000 to 362,000. we've got a negative reading on manufacturing in the northeast. and that puts the dow down 55 points. 13,872. another economic indicator numbers out from wal-mart today, reported it took in less money, sold less stufff we've got less money in our pockets, but they raised the dividend. they were more profitable, so the stock goes up nearly 3%. our next guest, an environmentalist, he is talking global warming fear mongering next. stuart: more money making from charles. this time it is the chicago bridge and iron company which he likes. charles: i do like it. the company was founded in 1889. i like these companies with long pedigrees. they are headquartered in the netherlands. i think that's for tax reasons. forget about the hype, solar power, wind energy, it is still all about gas, fossil fuels and it will be for the next 20, 30 years. these guys are making a ton of money around the world building these facilities. they are

all this is over concern we may need another bailout of an agency like we saw with fannie mae and freddie mac tune of $150 billion or so. now in november, the fha reported an economic value of negative $16.3 billion. that is basically a deficit in its capital reserve because of mortgages continuing to go bad. but one fha critic, ed pinto, of the american enterprise institute testified today by his analysis the fha is actually short by more than $50 billion. so critics say that this means the fha is headed for a bailout but, fha supporters say that the critics are hyperventilating. >> if the fha were a private financialness stigs likely somebody would be fired, somebody would be fined or the institution would find itself in receivership. instead it is merely merrily on its way to becoming the recipient of the next great taxpayer bailout. >> i don't think there are many independent people think we're looking at the next great bailout. yes, the fha is little bit of an issue at the moment because of its countercyclical mission, by the way it was part of a their original mission to come in during

much they got and you can see the banks and financial services to who but you see fannie mae and freddie mac, aig auto companies and others in the visual comparison. "the washington post" reports the feedback the 182 billion that it receives and gm goes over 21 billion then allied 11 billion. >> guest: the ottilie 014 billion. this is a lot of money. so, for that we know 74% of the company, 22% of the general motors. so there is still a large institution. but the everything that i was talking about earlier is the nearly 300 small institutions the were left and the numbers may be small, but those are institutions that cannot get out. there have antril. the smaller banks that serve communities, i mean, they're still having trouble, they still need assistance and was never supposed to be about bailing out the larger institutions. it's supposed to be helping everyone employing the homeowners and that money isn't going out the door sufficiently. >> host: christy romero special general for t.a.r.p.. why is no one in jail? where in t.a.r.p. does it say pay executive bonuses? she says it is misappro

right now, fannie mae and freddie mac are making it more difficult to get a mortgage but they are going through the fha. this is part of the problem -- not that we don't have enough regulation, is that we don't have good regulation or people enforcing those regulations. guest: he raises a lot of really excellent points. you have to come back to the causes of the financial crisis. you are right, the rating agencies played a part in the financial crisis and subprime mortgages played a part and one of the parts that was played it was pay that was encouraging these companies to take risks, and that is why it is so important for us to review the reports that we did. i will give you a perfect example. you had loan officers at banks who were being paid bonuses and pay based on how many loans they created, not whether they were good loans, not taking into account whether they would later defaults and cause significant losses. there are a number of different causes of the financial crisis. we tried to report on that and we are doing a lot of work in this area to say what has not been dealt with.

be, and so we've added it to the list to highlight that and also the fact that in resolving the freddie mac and fannie mae situation and taking them out of conservatorship which the congress still has to do -- we have modernizing the financial regulatory system on the list -- that fha system needs to be taken into account and there be an integrated set of activities there so we don't increase the risk even further to fha. >> and i'll summarize, if you will, from the way i heard it: you don't fix freddie and fannie unless you fix fha at the same time. they're all, if you will, subsidized or opportunities that could lead to the federal government putting up billions of dollars again if anything goes wrong. >> that's exactly right. it's all about softing what the -- solving what the federal government's proper role should be in the housing market. >> and if i understand correctly, when you said that by not indexing this $1.36 per capita that 25% would not even have made the list, effectively what you're saying is we have shifted 25% more things which are in constant dollars state responsibilit

reserve ratios, so we've added it to the list to highlight that and also the fact result in the freddie mactuation and taken a lot of conservatorship, which the congress still has to. modernizing on the list that fha situation needs to be taken into account with an integrated set of activities that are so that we don't increase the risk even further to fha. >> summarized a few of the way i heard it. you don't fix freddie and fannie and i see pics fha at the same time. they are all subsidized or opportunities that could lead to the federal government putting up billions of dollars again if anything goes wrong. >> that's exactly right. so with the federal government's proper role should be in the housing market. >> if i understand correctly when you set by not indexing this dollar 36 cents per capita of a 25% but not even made to this. effectively you're saying they've shifted 25% more things, which are in constant dollars state responsibility onto the federal back and that's a substantial amount of dollars. is that correct? >> that's correct, mr. chairman. we've recommended feed that take in

center introduce a very well thought out and choreographed plan for what to do with fannie mae and freddie macow to move this market into the next generation of tit. a lot of people are strolling about why we're not taking on those problems and why we are settling for tackling these political issues that keep coming up when we should be forming more housing policy and more concrete plans that could help homeowners and lenders to free up more credit and help the housing market a little bit better. host: how does sequester impact relief to those on the east coast impacted by hurricane sandy? guest: it was brought up in the committee hearing. the congress did pass some help that will go to these communities affected by the storm. we're considering cutting back some of that. it puts in limbo that money and plans for getting things back to normal there. the cuts are real and could pull back some of the assistance to build up some of the homes damaged in the storm. you just approved these funds and now we could be cutting into them again. host: virginia in cincinnati, ohio. caller: i'm wondering if