tom: what data do you look at to determine 3% gdp versus a howard ward gdp? what do you look at. efore the moving average, there has been a per it -- terrific indicator. that has been at a 40 year low or historic low so that suggest the economy is robust and with the unemployment rate at 4.1%, how low can that go? wage pressures are bubbling up. this is some of the concern people have about what will happen this year with the fed. does the fed have to move faster? francine: what is your biggest concern? is it productivity, if the fed has to move faster or if they are behind the curve? howard: my biggest concern is rising interest rates and let me explain why. i think the earnings outlook for this year is double-digit growth in earnings and perhaps for next year as well. that is the expectation right now. for returns, it is earnings and multiple. the last time we hit the 10 year treasury where was today was 2014 and the forward multiple on the market was 15. now it is 17. as rates go up, and they are trending higher, we had a technical breakout with yields to the upside. have as go

howard is here. jerry, when this was first cooked up in the house was not keen what he saw. ultimately came out and supported it. ultimately hopes with fingers crossed, eyes heaven ward it works out. so far so good, right? >> we are very pleased what we're seeing. number of new jobs being created in our sector, in all sectors of the economy, with will really drive housing demand. we believe the pend-up demand combined from the recession and strong economy that it will counterbalance potential negative effects the tax bill might have had. neil: i come from the high-taxed states, new jersey. as you know my new governor, democratic governor, positive governors of connecticut and new york, that it will adversely impact them in unfair way. housing in their state as well. for those in those states, what do you say? is it bifurcated, i hate using that word, because i don't think i know what it means, but a different market in states like that from what is going on in the rest of the country but do they have a case? >> all housing is local. there are more than 20 markets here in the metropolitan new york area are absolutely distinct from one another. in some markets, i think