joining us jim bianco, president of bianco research. t me ask you this before we get into the actual market and direction of stocks, jim. this hurricane sandy point out as many have said how ill-prepared the exchanges are for an event like this? >> yes, it does. the --. cheryl: looks like we lost jim's camera. ashley: there you go. cheryl: even chicago where you don't have --. ashley: did agree with our point. short but sweet. cheryl: we're looking at breaking news, ashley. want to pull up shares of proctor & gamble right now. looks like one of their plants, one their chemical plants in central new jersey is currently without power. expected to be up and running by tomorrow but a company spokesman telling our partners over at dow jones the facility in new jersey. according to a spokesman, from jeff leroy at the company. we'll continue to monitor that as well. ashley: let's go back to jim bianco who had a very short and sweet answer were the ex-changes ill-prepared for hurricane sandy and first thing you said and only thing you said was y

>> from your mouth to god's ears. >> jim bianco, what are you looking at right now ? what are you buying? >> i'm really looking at the election. i think this market has been all about monetary stimulus for the last two years. the rally we've had since june has been about qe-3. the concern we've had in the last few weeks other than earnings has been a romney presidency, means bernanke gets replaced. that's what's driving markets. unfortunately, the answer for investors is going to have to be the election and who replaces bernanke over the next six months or so. once you get past that, i think you can get back into ma wha the policy differences would be. for now, i would stay neutral to long stocks because i'm not 100% sure that romney is going to win, but if i thought he was going to win, i think that would be a short-term negative only because it changes the equation with with the fed and not necessarily with policy. >> so short term negative for stocks? >> no, short-term -- >> because there's a real debate there. the equity guys say romney would be a short-term posit

jim bianco, one of my favorite economists wrote a wonderful paper. i'll put one quote out. everybody hates treasuries. the quote is we do not see a big interest rate bet being made by the public. we see tax plays, we see currency bets and big bets in corporate bonds. which can also be described as the low beta stock bet. what is he really saying? what he's saying is don't lump it all together. it isn't really an interest rate play. it's really a credit market play. and a lot of that, munis in particular, even with areas of california potentially illinois, around the country, these municipalities that are going chapter 11, it doesn't -- or chapter 9, it doesn't really matter. because it is still a play maybe against the fiscal cliff, taxation. but the point is there is something we all agree on. but be careful. okay? if this is five years on stocks, i think what everybody's thinking about is between where we're at now and five years, they do believe stocks are going to be higher. but the real question is, where's the path to get there? and i think the same thing is true for

. >> i feel the sake about you and jim bianco, that's for sure. >> that really is the topic because jimope slipping into recession or already being in recession isn't the 8%. it's much bigger than that. give us some data. >> it starts with the financial sector. 20% of the banks have as their parent a european bank. some of the largest banks in the country are owned by european banks. hsbc's the tenth largest bank. deutsche bank would be collectively the sixth largest bank. if you want to go down the list a little further -- now a parent does not mean if you have a problem in europe, the united states has a problem. but if there's a problem in europe, the parent might be less risky or not wants to tag loans. so it's critically important for europe, to the banking system for starter. >> and i totally agree. i think when we frame this issue, we need to frame it on the context that there's a lot more at stake with regard to capital and how capital investment. so what you're really talking about is the parents trickle balance sheet issue. if the parents are tightening their belt, it's hard t

. >> jon: cbs news host jim lehrer moderated the great debate this week but his performance didn't win him many accolades. robert bianco the best moderated ser no moderator at all. washington post, whether letting go of the leash was an intelligent on his part or the only option he definitely let go of leash. >> jon: so, let's find out with our panelists think. >> the media is upset they weren't part of the story. the candidates got to talk. i think it's brilliant. this is exactly what a moderate ser supposed to do. this is not about the media. shame on the media who jump in there and say you didn't become part of the story and you didn't wrestle with the politicians. you are not part of the story. it's about their ideas. let them talk. you i loved it. >> jon: so barack obama supporter would he have done a better job. >> i think the two of them are unrelated. but michael cauldron had an interesting point. leher did not go to new media or didn't take any crowd sourcing questions. he didn't ask people what he ought to ask. that is who decided by himself. >> jon: it was mostly the liberal media that trashed leher's perfor