now the federal reserve can create money, john taylor. and are they part of the recovery story along with the return to business health and some deleveraging by consumer. the fed does create new money and they have created quite a lot of it, have they not? >> they certainly have. a tremendous amount. and of course, they lowered interest rates as well. so that's stimulative. there's no question about it. and quite frankly, you can have some stimulus. i never said it was zero. larry, your logical arguement is very convincing. there's still some things that the government can do, but it's small, and in this case, spread out over so long. you can't plausibly see that it's done anything so far. o owe. >> it's the fed creating new money. if you're looking for stimulus, steve, why don't you look to the fed? >> because normal credit channels whereby this money would go from excess reserves to being loaned out are clogged up right now. monetary policy is having less effect than it normally would. i think that's one of the reasons why. guys, if the

. >> the fiscal stimulus package did not work according to john taylor.e should spend more, not less, to grow the economy on health care. and will olympia snowe back baucus? nts from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire.

. >> lou, the journal, and john taylor and a couple of others, john, there's a bunch of republicans. anyway, they say the stimulus didn't work. so that is not getting the economy going. lou, what's your take? you were right about the yen. >> the interesting thing with the forward looking indicators, i put out a chart earlier in the week concerning the 0-year yield and the s&p. you know, during the period when the 10-year yields were falling from over 15% down to about 5% from the early 80s down to the late 80s, that drop in yields was ben efficient for the stocks. but from that point on, the yields and the stocks have kind of gone in concert. nerds, when the yields fall on the ten year, so does the stock market and the ten-year yield, every time it peaks and rolls over within its larger trend has indicated a turn in the stock market. in january of 2000, the ten-year yields peaked. the last couple of years, it's repeated itself. in june of '07, the ten-year yields peaked and roldz over and the stock market peaked in october. in june of '08, they rolled over again and the stock market

>> monetary policy's 9/11 has been too lax than my friend john taylor of the hoover institute at stanfordaylor rule which he tries to model from past bavior, what he thinks the level of intest ra should be and universally during the decades it was too acmmodive. monetary policy was t easy and the lead to an over investmelt and housing for three years, 05, 06 and 07. to me that is that part of the cris tony, but the underlyin crisis was this effort to make everyone in america of regardless o capabilit a homeowner through gamesmanship inhe terms of the mortgag that fannie mae or freddie mac would buy. it makes no sense on the surface of it. t you combine that with the field of accommodative monetary policy and you have got, we have reaped what weise though over this decade and it we are living with the consequences. >> i think you have reached a key issue because the economi is one thing and who is to blame is one thing but it is the narrative that is important and what lessons did we learn because for decades and even still today we ffer from a gross misinterpretation of what happened in t

. >> the rap star hijacked country singer taylor swift's thank you speech for best female video. many big stars like pink john mayor slammed kanye on twit and west bloged a an apology and later beyonce won best video of the year and invited the 19-year-old back on stage to have her moment. class move beyonce. >> absolutely. and she had an amazing performance as well. >>> still ahead on "eyewitness news" at noon, take a live look outside. stay tuned, marty will be back with the first washing weather forecast. >>> -- warning weather forecast. >>> but first another look at the mi >>> now weather complete forecast and the first warning severe weather. >> oh -- okeydokey. >> looks nice. >> beautiful. >> those are shade clouds and passing fair weather clouds in the area and that's about it. i showed you that state satellite photo and really on the major satellite photo, it's the same thing but it's water clear over the entire mid-atlantic and northeast. look at first warning doppler radar. this is an issue. that's a lot of gathering moisture and it will be interesting to look at the same picture and we will tomorro

. >>> anne arundel county executive john leopold says he supports the arrest of a pasadena woman and her son for animal abuse and me flect. janet taylor and her son jeffrey taylor are charged with 42 counts of animal cruelty. last month animal control rescued 21 dogs >> their home. it was in terrible condition and was condemned. one of the dogs had to be put down. the other ones are being treated at animal control until they are healthy enough to be adopted. >>> maryland medevac officials say they are taking steps to improve safety and upgrady equipment after a deadly crash last year. major a.j. mcandrew told members of the general assembly that the state police aviation command improved recordkeeping and addressing personnel issues. it comes weeks before the anniversary of the medevac crash. mcandrew says the command has improved safety features on its 11 helicopter fleet with terrain awareness systems. they also provide realty weather updates, floatable rescue baskets and electronic locator transmitters that emit a signal after a crash. >>> baltimore mayor sheila dixon talked today about her lawyer's latest action in the state's cas

taylor and her 38-year-old son jeffrey. >> it sends a very strong message. >> county executive john leopold alerted animal control of the problem after receiving a call from a concerned neighbor. you can see how scared and nervous the dogs are. right now, the spca has 8 of th e 21. >> the veterinarian that an assessment of one of the dogs. regrettably, it had to be euthanized. >> they will be prepared for adoptions, so that is some good news here. as far as the taylors are concerned, they have been released on $100,000 bond. they face thousands of dollars in fines and up to 90 days in jail. we will take a closer look on what that has gone -- but that has done to help curb animal abuse. >> we have seen some clouds moving through, some brisk winds, but so far west of the day, not a lot of rain. on the eastern shore, the rain does pick up. showers down there on the lower eastern shore appear to be moving in this direction. the deeper we go, the weather will likely make its way west to the baltimore area. that is due to the storm sitting out over the atlantic. showers have an overt -- the weather will take us into friday, and perha

. >> and john lannan trying to get that 9th win of the year today. let's go down to deb by tayloris beautiful night for baseball. you had a chance to visit with a left-hander john lannan. debbie? >> i sure did, johnny, and he's looking for his first one since august 5th, and it will be challenging tonight, taking the mound against pedro martinez who has been one of the best in the game. here is more from john. >> i face toed him last year when the he was with the mets, but it just impresses me how these guys keep coming back. i watched him and smoltz and these guys pitch when i was younger, and they everyone so dominant then, they still pitch now, and they've been through a lot, have been released by teams, and to come back and really help out the teams they're with now is something cool to watch, but it will be great to compete against them. >> sit inspiring, too, just to be able to take the mound against a guy like that? >> yeah, of course work but i'm not facing them, facing the phillies, hopefully get to them. we're in a little bit of of a slump all around, but this will be a

taylor swift won an award on the music awards. he appeared on jay leno and said he needs to take time off to analyze how he can improve himself. >> good luck with that. >> elton john'sf adopting will not come true. and his partner wanted to adopt a 14-month-old ukrainian boy with hiv. ukrainian law requires a parent to be no more than 45 years older than the adopted child. elton is 62. ukraine does not recognize homosexual unions as a marriage. >> still ahead, we reveal the night winner in our friend us on facebook contest. >> plus, the ravens in for another fight sunday when they visit the chargers in san diego. but how healthy are the . >> once again, seeing the clouds move in. and spot city showers through the overnight. better chances for pop up showers tomorrow. as we can see on radar. and that we have a few showers south of the city, down around annapolis. but in d.c. but it looks like the chances for rain continue. 40 percent chance, to 50 percent chance through wednesday and thursday. and looking at friday, 20 percent chance. we may get sunshine out of there. now the temperatures are cooler from the 80s down to the 70s. so 73 degrees on wednesday. and 71 on

john. >> nothing says i forgive you like a duet. >> and west on jay leno's new show, 10 p.m. eastern time on nbc. david what, do you think taylort that moment. >> stunned silence. >> what so co-she possibly do except say, okay, you want to say something, here is the microphone. as a veteran of the industry, sure she has a lot of respect for him and i'm sure she did for this moment. >> feel sorry for her, at a least beyonce gave her another moment to shine. and taylor swift will be on "the view" telling her side of the story. >> "the big picture" talking about bad behavior, the house of representatives is considering a formal reprimand for south carolina republican joe wilson who called president obama a liar during his prime time speech to congress last week. wilson spoke on the floor of the house just a short time ago but did not offer any apology. >> during my 25 years of serving the public in the state senate and congress, i have not seen such passionate events full of patriots. 95% of whom support health insurance reform but not a government takeover. >> you recall that last week, wilson did apologize to the white house chi

john tailor at hoofer institute at stanford has the taylor rule he tried to mod frel past behavior what he thinks it to be. universal during the decade it was too accommodative, too easy. that led to overinvestment in housing for three years, 2005, 2006 and 2007 tochlt me, that is a part of of the crisis, tony, but the underlying crisis was this effort to make everyone in america, regardless of capability a homeowner through gainsmanship in the terms of a mortgage that fannie mae or freddie mac would buy. it makes no sense on the surface of it. but you compine that with the fuel of accommodative monitoring policy and we have reaped what we sow, over that decade. we're living with the consequences. >> moderator: the economic system one thing and who to blame is one thing. it is the narrative that is important. for a decade and even still today we suffer from a gross misinterpretation of what happened in the 1930s. under hooverand roosevelt we got protectionism, more government spending, more intervention and suffered 12 years of of an economic downturn. it was big government, including b