larry fink basically said, this will translate into a weak fourth quarter.mage already been done, away from reputation? >> the number you can see, bank loans to business have been flat, so that makes me think you're looking at a weak fourth quarter. once this deal is done, people will look behind and see the fed is still there. qe is still there. tapering's still there. when that's all gone, $3 trillion of bank reserves to figure out what to do with. there's fear in the word world. that fear drives people initially into treasuries, which is the irony of the whole thing. >> all we've done with this bill today is just move the goalpost down the road. >> yeah, you bought six months. >> so, when there is talk, serious talk, he said naively, about spending in this country, doesn't that slow things down anyway? >> well, the slowdown is the fact that nobody can make a plan and pull the trigger on spending any money so they're just waiting. this six-month delay will make them wait even more. weak capital spending in the fourth quarter. you still have weak asia. euro

thank you. >> before i ask you for ways to play this, do you agree with larry fink? n a bubble market? >> i guess i would be a little bit more specific. look, i think you certainly have to respect larry's comments, and again, he sees the market probably as best as anyone. but i think it's a little broad to just say that the markets are in a bubble. i think if you look underneath there, there are clearly parts of the market that are in a bubble, and you can directly trace that back to the impact of quantitative easing. but i would also argue there's other parts of the market, and kind of dovetail steve's comment where earnings growth and fundamentals are solid, i don't see the random market. again, i do think ultimately we have to take this into account. >> i don't know, you know, why is tesla and netflix not going up because of ben bernanke? >> well, i think -- if you take a step back and think about what quantitative easing does and maybe what it doesn't, you know, quantitative easing doesn't drive earnings, because it doesn't drive growth. but it is extremely effect

you just heard from larry fink there. certainly we're seeing the downgrades to fourth quarter growth coming in. the pushing out the fed taper into the first quarter of next year. by the way, we may not even know what the real extent of the damage is to the economy still because of the shutdown. so how soon do you expect the fed can exit the picture here? >> well, we believe that that's -- what you said is true. we don't see any reason for tapering at all in december. right now we're looking at potentially march beginning to taper. we're going to hold off to solidify that recommendation or that -- until we can get some of the delayed data that we had out. waiting on nonfarm payrolls and retail sales from last month. that will kind of give us a better idea of what the fed can do moving forward. >> kim forest, there are going to be people who say why in the world is the s&p near an all time high when corporate growth rates are slowing, we're seeing that in earnings reports right now, and we inevitably are going to see the ta

. >> the question is does the fed have concern as larry fink suggested with the bubble nature of currenteed to take any air out of the balloon and we will be watching the statement, a green light, a red light or yellow light for stocks? >> just to remind our viewers here what black rock's larry fink said, the fed's policy or the fed policy contributing to bubble like markets and it is imperative the fed begins to taper its asset program. i would like to though, since then, since september, we've had soft reads on the economy, we've had the shutdown. do you think the economy is strong enough to start doing that 1234. >> the fed looks to have been the a holding pattern. what has happened however, which i think is a little more worrisome, the extent to which the market has extended its belief in qe. as you said at the top of the show, our fed surveys shows april 2014 when the taper begins, from november where it was, and continues to taper, i'm going to put money into the jaw, don't you worry, continues to taper through qe through all of 2014. i don't know if the market is too irrationally

his comments echo blackrock's larry fink. they've also expressed concern the markets are diverging, and this is what's important. from weak economic fundamentals. there's larry fink saying we're seeing bubble-like markets again. he's talking about equities. but also corporate debt spreads which have narrowed dramatically. with regard to the macro picture, certainly the government shutdown didn't help, cut about half a percentage point roughly off gdp. it's basically, though, helped keep the economy from accelerating and keeping the fed in the picture. but there's a bigger story here as well. and here's bill gross in his latest investor letter. he's now saying to fellow financiers, "you did not, as president obama averred, build that. you did not create that wave. you rode it. and now it's time to kick out and share some of your good fortune by paying higher taxes to favor economic growth and labor." in other words, the higher this market goes in a weak economy, the louder, kayla, you can expect those calls to grow. >> it's in

. >> larry fink came on last week. he said that we're not -- he would not expect tapering until march for sure next year, maybe june next year. you talk about 2014. stephanie, it's all you, girlfriend. what's up next week? we have a lot of earnings coming out next week. what's most important from your standpoint? you have a great read on this stock market. >> congratulations on your 20 years. it's been a wonderful day watching you celebrate and everybody else celebrating you. i'm thankful to know you. next week will be fun. we get durable goods, consumer confidence and an important pmi number. we get china international numbers as well from china. a flash pmi. and a lot of the eurozone money supply figures as well. so, looking at kind of getting back into that whole thing will be interesting. of course, earnings. we have halliburton, we have eaton, some big industrial companies. we also have something like a coach coming out. so we have a lot of companies reporting. just get back to your initial comments, in terms of t

blackrock ceo larry fink saying the naretive in washington is hurting business leaders' confidence keeping them from making new investments and this will harm the economy and we will lead to lower growth. fink saying if the debt ceiling is lifted soon, the damage is already done. pnc ceo echoing those sentiments predicting the slowdown to economic activity tied to washington while u.s. bank corp said nervous investors are moving more money into cash and the influx of the new deposits will hurt the bank's net interest margin this quarter. seeing a similar situation saying its balance sheet is up $10 billion since quarter end, as investors have been seeking a safe place to put their money. >> interesting what larry fink said, all of this drama or dysfunction if you choose to use that word is a tax on growth. it is a weight. >> it has. a lot of people will say this has been basically happening for the last year and why you haven't seen a lot of capital ininvestment and ceos doing more buybacks because they feel that's a better way to use their cash at a time when they don't want to make or ri

and larry fink. the shutdown and fear and loathing surrounding the debt ceiling, topic number one. this is what they had to say. >> reserve currency -- central bank is the central banker and dash to the extent that, you know, we set the tone either in the form of interest rates or stability from the standpoint of currency and the like. of course, we are. is there a possibility of a debt default like i mentioned yesterday on the program? really, no. you know. i think it is -- basically theatrics. >> ceos are certainly not going to bill that factory in plant. they are going to wait and speed how this is resolved. i think that you are seeing that in the job data already. job data is -- has been incrementally disappointing. good, not bad. and it is all because of the uncertainty around washington. it is -- it is because of the uncertainty around how we are going to navigate it in washington and what it means for the future and -- behavior, people have to recognize it is -- it is -- their behavior, their decisions, are determined by the type of noise. >> you can watch brian's entire tal

larry fink telling us last week, he's not expecting tapering until june -- march, or even june. is that where you stand, you think it's off the table? >> i think it's off the table. i don't think the fed wants any reaction from the economy when it does it. it's going to be that simple. >> bob pisani, it will be a busy week for earnings. unemployment tomorrow, bar ca lounger and popcorn ready for that one. >> we've had phillips with lighting doing very well, s.a.p. doing well in europe, relieving some concerns about ibm, hasbro is at historic high, lennox, heating and air conditioning, highs. you assume we're at 15 times forward earnings, we go from $108, $109 to s&p, go to 120, times 15, we're at 1740 at the s&p now. >> i did the calculations off the consensus numbers. i think we can have bottoms-up consensus of 125 by the end of next year. >> 125? >> that's 4 or 5% increase now. you're at 2,000 on the s&p. it's a big number with modest -- earnings are squarely how you measure -- >> can you argue for a multiple expansion? can we say it should be 16 times forward earn sngz. >> i

on my panel, larry fink said, this could be the unraveling of the financial markets, the next big crisisall the new securities and derivatives going on exchanges, are you worried -- i mean, we've seen glitches across the board on public exchanges. are you worried that the system can't handle all of these new products going on, transparent? >> i'll start with this. first of all, we put them on exchanges because that's the thing we wanted to do. we didn't want the darkness. we wanted open prices. secondly, i think the obama people should take some comfort for that because it turns out that massive computer glitches are not purely a problem of the health care bill. but inherent elsewhere. finally, it's not something that we looked at because it hadn't yet happened. it is important to look at and to go guard with it. but the answer is not to retreat from the openness. you know, as chris -- we didn't ban anything. we had a market-orientedchanges example of that. >> given the size and speed with which that market grew in such a short period of time, and the transparency was critical, in my vie

blackrock ceo larry fink tells us how the standoff could affect your 401(k) or your pension. >>> a newhe assassination of president kennedy. author larry sabato reveals his findings first on "cbs this morning." >>> and a new plan that might help you eat less. all you need are pictures of your foods. but first here's a look at today's "eye opener" at 8:00. >>> mitch mcconnell went into a meeting with harry reid and thought they had a bipartisan agreement and reid said wait a minute. >> still too many demands in exchange for reopening the government. >> this is a country that's always paid its bills on time. the effect of the u.s. debt default could be catastrophic. >>> they're calling it one of the worst ever disasters in south dakota's history. >> madeleine disappeared in 2007 en in portugal and police posted composite sketches of several men they want to speak to and hope somebody comes forward with new information. >>> 19 days in the woods. the extreme measures a 72-year-old man used to stay alive. >> he ate squirrels, some lizards, snakes. >> reporter: he has 90,000 employees and ye

the comments coming from larry fink, too, one that uncertainty is keeping investors on the sidelines.k going on to say it's the central bankers and elected officials who are driving things these days, not business leaders. would you agree with particularly that second statement? >> i think business drives a lot. i think the juices of capitalism over time are more important. if you look at what built this country over the years, it's been -- it's been tens of thousands of people that want to live better tomorrow than they're living today and go to work on it. we're here with 400 of the most powerful women and every one of them is thinking about how to have their business be bigger and better next year. so people forget that there's a lot of natural juice to capitalism and the government is a big factor. but if you ask me what accounts for where the united states is today, i would say that the actions of american citizens that are the dominant factor. >> although, you know, gdp has been below what the fed is expected, below what a lot of economists expected, particularly coming out of s

mohammed, i want to start with running a sound byte from early today from your friend and rival larry fink of black rock where he expresses sadness over who he saw this country just go through. >> i would say there is a profound sadness. they look at the united states as a beacon of hope and the united states to have a secured investment, and now they are raising questions are those foundation l principals correct going forward? that's what i'm frightened of. i don't see any overt change of behavior yet but being asked questions related to this and it may lead to changes in behavior. >> mohammed, what do you think there? he's referring to our standing in the world as a safe investment haven, our treasury securities most especially. how do you react to what you just heard? >> we are being asked questions, the rest of the world is looking saying what are you up to? how can you be so irresponsible if you're the issue of reserve currency and if we have delegated to you our financial mediation, after all we saved by holding your bond? so the rest of the world is confused, taken a back. you cann

mohammed, i want to start with running a sound byte from early today from your friend and rival larry fink of black rock where he expresses sadness over who he saw this country just go through. >> i would say there is a profound sadness. they look at the united states as a beacon of hope and the united states to have a secured investment, and now they are raising questions are those foundation l principals correct going forward? that's what i'm frightened of. i don't see any overt change of behavior yet but being asked questions related to this and it may lead to changes in behavior. >> mohammed, what do you think there? he's referring to our standing in the world as a safe investment haven, our treasury securities most especially. how do you react to what you just heard? >> we are being asked questions, the rest of the world is looking saying what are you up to? how can you be so irresponsible if you're the issue of reserve currency and if we have delegated to you our financial mediation, after all we saved by holding your bond? so the rest of the world is confused, taken a back. you cann

now, you had some experts today, larry fink of blackrock, and what's his name from pimco, bill gross. >> bill gross, right. >> and those guys said, tom mcclintock, i'll get back to you. gross of pimco and larry kudlow fink of blackrock, both said there will be no default. you're talking the heart of wall street. so therefore i have the heart of wall street, the market itself that ignored obama today. the whole thing smacks of politics. blake zeff is right. if it boomeranged and the market actually fell and we went back into recession, hell, we're only growing 1.5%. we're not that far. it would destroy obama. it would absolutely destroy him. so this is stupid on obama's part for about five different reasons, mr. mcclintock. >> we don't expect that out of a president. but i do think we could expect that out of a street fighting politician. and unfortunately, he's got his street fighting politician hat on and not his presidential hat. that's been true for some time. >> do you get any democratic votes in your bill, tom? >> nope. >> no democrats voted in the house? >> no, not to my recolle

. >> larry fink and black rock doing all different things. you need to prepare.orries about collateral chains. think about the treasury, the collateral chains. so many things could blow apart. >> the break the buck is an obvious one. they have to break the buck if they own short-term paper, which is what they're supposed to own and the regulators give an excuse and say we're defaulting, move on. >> other points would be a vix indicator, gold indicator, swap deposits over the next few days. and we'll see how this tivo watch goes. the yield on the notes due october 24th .72 up from .51 yesterday. >> you're kidding me! it's crazy. bank of america, very little exposure. everyone wants to know who's in a position to really get hurt by this. i feel very confident about bank of america. looks like they've taken evasive action. that's not the way they short -- they don't short-term fund. >> no. bank of america. we haven't spoken much about the earnings. the stock is up about 1.5% this morning. generally good. it was a beat on the way these things are measured but also al

all across the united states, brian sullivan moderated a panel discussion last night knee chfe larry fink and bill gross who weighed in on the topic. >> standard bearer of the world. people look to the united states as a country that lives by principles. and just the notion, just the conversation of a potential default is unacceptable. >> our central bank is the central bank's banker. and to the extent that we set the tone either in the form of interest rates or stability, of course we are. and is there a possibility of a debt default like i mentioned yesterday on your program, really, no. i think it's basically theatrics. >> he doesn't expect it to repeat year of a of it rear, but if it does, there could be several years of negative gdp. joining us this morning from paradigm group. been a while. nice to see you. is it pure theater? >> well, i wish it was just theater. it has some real impact on the economy. but i think the obama administration is right to really put their foot down this time because otherwise it might become a very regular reoccurrence. >> we saw the s&p having its worst

. >> larry fink told me it could be june. >> could be. >> brian, is this the right allocation? what do you tell clients right now? is this warranted, stocks into bonds given the environment we find ourselves? -n? >> could be. as year goes on, asset allocation kicks in, as they tell asset allocators to increase their position in equities, you'll see more and more flows into equities. we caution people, since mr. welch is here, this is not the '90s. hey day of ge is not the '90s. you're coming back to america because of the consistency and fundamentals. in the '90s you came because of the growth. we don't have any infloes like the 1990s. this whole secular bull market remains in the very early stages. >> jack, you speak to so many companies out there, whether it's your management institute, or meeting with various companies, small and midcap and large, what do they say? >> it depends on the industries you're in. if you're in old, traditional america, it's thumping along, you know, 1.5%, 2% economy. if you're in health care, have you niches that are doing very well. if you're in o

larry fink said it on our show last week. he's not expecting it until possibly june. what do you think? >> i think it's going tib lot longer. maria, not only congratulations, but you were a trail blazer predicting there would be no trail blazer. remember that. remember when they said the data was unclear. now the data is even more unclear because now is it not only there, but the quality may be called into question. that will cause the federal reserve to wait a little longer. looks more and more like a 2014 issue, not 2013. >> michael, what are you thinking about on a day like this where we see google, for example, up more than 100 bucks, chipotle up more than 60 bucks. the nasdaq is almost back at 4,000. we haven't seen that level since september of 2000. >> well, i'm thinking it was probably a really good idea to take advantage of the paranoia that happened prior to the government shutdown, to take advantage of this market. really, scott, it's a momentum market at this point. maria is absolutely right. by the way, maria, happy anniversary. >> thank you. >> it's a mo

earlier we had larry fink on the show. he said he's expecting a fourth quarter. what about you?>> i think it's too early. we're 15 days into the quarter. we're seeing growth similar to what we saw the last couple of months and all the way back into last october. it's too early to call. but uncertainty is not a good thing. essential, our political processes have injected a high degree of uncertainty into the market. >> dan, let me ask you about this new vehicle. a bi-fuel natural gas chevy impala. talk about this concept and do you think it will gain traction with consumers? >> well, we have a new car, the impala, which "consumer reports" calls the best sedan in america. we invented an engine that will burn compressed natural gas or regular gasoline, liquid gasoline. we'll have to put two energy reservoirs, known as tanks, one for gasoline, 3600 psi cng tank in the car. that will increase the cost of it. at the same time, it gives cleaner energy and compressed natural gas sells at about a third to half of what the equivalent btu count would be for gasoline. so, there's cost advan

forward, you've got, you know, interest rates are clearly going to move up at some point, although larry fink us last week he isn't expecting tapering until june of 2014. you also have a mayor's race happening in new york. bill deblasio in a position to raise taxes. he told you what he's going to do. he's going to take taxes up. if he wins, does that put a crimp in anything? do rates go higher? >> in terms of the mayor's race we'll see in the next couple of weeks. whoever it is, will try to continue the positive job growth, the diversification of our economy, technology -- focused on technology. a lot of the companies moving downtown, midtown south are getting priced out. i think whoever that mayor is, whether it's lodo or de blasio, he'll continue to make jobs, continuous to be the capital of the world in terms of trying to attract and retain the best and brightest and continue to drive crime down and public safety and a liveable city. go to brooklyn. you see the tremendous amount of people living and working in brooklyn today, queens, all over the city great growth. >> brooklyn is hot. what

. >> let me get your take on something larry fink just told me, lloyd, because he is worried about thederivatives part, opening up transparency of derivatives on exchanges. he says that may very well lead to the unraveling of the financial system again, because you look at all the glitches we face on all these exchanges. how dpou believe the opening up of derivatives and making them more transparent on exchanges is going to impact your business? and do you worry that, in fact, the system is not ready? >> well, there's a little bit -- we're seeing systems problems in all walks of life now. let's say we get past that. the overall consequences -- look, there's -- we're responding to a set of negatives. and the unintended consequence will produce a new set of risks. for example, clearing houses which i think are a good thing and a terrific thing that we take some risk out of the system by having everybody going through clearing houses. i've said this before, i think that will reduce the risk of the 20-year storm. but what happens in the 40-year storm or the 50-year storm is that is so seve

larry fink, ceo of the largest asset manager, black rock, with $4 trillion told me last week this willinto a weak fourth quarter. >> it really probably leads to a pretty weak fourth quarter. and most importantly, it may drive a weakening into the first half of next year. >> meanwhile, standard & poor's is out with a release last week saying the shutdown likely took out about .6% of the gdp. about $30 billion. add that to the retail environment, which has been bifurcated at best. very fragile and weak at worst. considering deloitte survey this week that said consumers expected to spend 10% more on holiday shopping this year than last. but for the life of me, i certainly cannot find any anecdotal evidence to back that up. in fact, most people i speak with say we're going into the fourth quarter weaker nan expected and wanted. it will likely show up in corporate earnings and revenue. some of this, of course, is simply slow demand. but much of it is brought on by simple uncertainty. which can be traced directly back to the drama and the lack of clarity, that this government continues to in

blackrock's larry fink warning that the d.c. dysfunction will cast a very long shadow. >> it really probably leads to a pretty weak fourth quarter. and, most importantly, it may drive a weakening in the first half of next year. >> so the question is, where do we go from here? that's always the question, right? let's see if we can answer it this time. good group. heather hughes. katy stock from btig. greg et from the economist. good to see you all. katie stockton, what is going on? we're at all time highs. are we moving higher from here? is there still momentum, or what's going on? >> there's definitely still momentum. really there's nothing bearish to say about new all time highs for the s&p 500. everybody says don't fight the fed. i would expand that to say don't fight the up trend. don't fight the momentum behind that trend. and really don't fight the breath. breadth means the broad participation in the rally. you wouldn't have the russell 2,000 at new highs either unless you had broad participation. >> greg, katie mentioned t

listen to what larry fink told me last week on this program. i want to get your reaction to it.his. >> i think it's going to force the federal reserve to push off the tapering at the very least to march, but maybe as late as june until you see better understanding of what this is going to have to do related to the economy. >> so there you go. the largest asset manager, $4 trillion in assets asset manager, saying, look, no taper ing. probably not until march, probably not until june, even. is that a positive that it's all on the fed? >> i'm not going to try to predict what the fed -- what the fed is going to do. i'll say this, though. it's wrong to be relying on monetary policy as the main driver of the economy when you're in a liquidity trap. it's wrong because we're not sure how large the effects of it are. we haven't been in this kind of territory with quantitative easing and forward guidance and the like before. it's wrong because the way monetary policy stimulates the economy is by buying capital assets. and pushing their prices up, whether they're bonds and so forth. and wh

we're going to ask the man who manages more money than the fed itself, blackrock ceo larry fink back. ceos of honeywell and bmc software tell lawmakers from both sides of the aisle how the shutdown and debt ceiling threat have been affecting the economy. that and much more, maria and i look forward to seeing you. here we go again. should be a ruckus last hour of trade. see you then. stay tuned. the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon. (announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) r

because particularly larry fink and others are saying the markets are starting to resemble a bubble. do you agree? >> well, i think the markets are bubbly, all assets are bubbly, bond prices, stock prices. steve liesman has pointed out profit margins are bubbly. to the extent that any of them can be sustained is the ultimate test in terms of tapering or, you know, the purchases by the fed in terms of adding to their balance sheet. yes, slightly bubbly. let me throw out something that will stagger the imagination i guess of your listeners and steve liesman, but the fed is in charge of regulatory policy and to the extent that buying a trillion dollars a year as a rather blunt instrument in terms of elevating ae ining perhaps b stock prices they're in charge of margin requirements and margin debt is at historic levels. to the extent they want to simmer down equity prices they don't have to attack it through tapering or through reducing a trillion dollars worth of purchases. they can raise margin requirements. >> okay. you said so much, kind of blew my mind, bill. all asset classes are s

larry fink came out and said it's at least until 2014, potentially the second quarter of 2014, and so therefore, you know, it's going to be a party in the equities, party in the -- the dollar will get weaker, gold stronger, equities, where will people go. >> people are dying to buy the market but lower. i call around and say 2 to 5% they want to see it lower. focus on this. earnings guidance gets cautious in the next couple weeks. market dips a little bit lower. down 2, 3, 4%. and you buy. >> stocks going to be higher at the end of the year or lower? >> higher. >> higher. >> higher. >> higher. >> higher. >> they say higher. >> the bulls from barcelona. >> the bulls from barcelona say we're going higher. kenny, great to see you. bob, you. and thank you our guests from barcelona. welcome. melissa? >> tyler, three stocks waving red flags and investors based on quarterly reports released today and yesterday. ibm a two-year low after reporting a 4% drop amid a decline in hardware and emerging markets. hardware hit in china which accounts for about 4% of big blue's business. ibm saying it w

what better insight to get than a guy like larry fink that runs $4 trillion, $4 trillion with a "t" about their reaction to the government, also to the risk really of a debt default. that's tonight. we'll have it tomorrow. mandy, i know you've had a flurry of activity the last couple of hours, especially coming from john boehner. that has dominated the headlines here. kind of feels good to be so far away from d.c. i feel a little cleaner. >> absolutely. we're going to get the markets taking all of that from just a -- in a moment's time from bob and also rick. first of all i would like to get to eamon javers because on the political side of things, does boehner even have the power in his own party to make such a comment? >> well, he definitely can make any comment he wants. to brian's point, i feel perfectly clean being here in washington, d.c., by the way. it's great here. you should come down and visit any time. the weather's not as nice as l.a. "the new york times" broke this story at the top of the last hour. that started this market rally we started to see as people digested the impli

i'm sorry to be so granular to larry fink and say great job, but is it stock supposed to be 270? i don't know. should the fed be tapering? if you care about employment, no. if you care about inflation, no. if you think that stocks are too high, sell 'em. >> well, there is an argument to be said. >> comcast -- i'm a little concerned about our parent company, 129,000 lost video subs. >> as will of 117 last year. >> and there had been a hope it would go the other way. >> 65 cents, did beat 61. high-speed customers plus 297. >> you mention it's our company but the cash flow up 30%, profitable growth for everybody there. >> yeah. there's some competition on the video side with uverse, which section panding very aggressively but a very strong quarter. we'll see if people focus on the loss of subs. >> what's being sold because it's too expensive? yesterday apple went down $13. sells at eight times earnings. i'm always caught by this notion that we are all u.s.-centric. ken langone had comments about great american companies selling cheap hi. 20% of the average industrial i follow is eur

this is larry fink, the c.e.o.ackrock, october 22, the beginning of this week, in the "financial times." quote, many -- this is the person who holds the largest assets in the world. many foreign investors are rethinking their approach to investing in u.s. debt. even a marginal change in the willingness of government pension funds, insurance companies, and other institutions around the world to buy american bonds will incrementally raise interest rates and drive up the cost of financing our deficits. student loans are tied to treasuries. ultimately mortgages are. if interest rates go up permanently, even a little, because people are rethinking their approach to investing in our debt, that will do lasting damage, ironically to the deficit, but to middle class families as well. and again, this isn't because there's lack of faith in the united states economy or the power of our entrepreneurs or innovators. it's simply about our dysfunction, it's about the practice of threatening default in our budget battles. bill gros

but we had on our air larry fink of blackrock. do you know who he is?r pensions firefighters pensions, and he said this narrative is embarrassing around the world and that it is going to harm us longterm. can you respect that opinion? >> sure, but i can also respect the opinion of moody's the ratings agency that last week came out and in no uncertain terms said we are not going to default. i don't know why no one asked mr. fink about that. you can be extremist if you want to. you can be hyperbolic if you want to to get on television but the truth of the matter is there are reasonable ways to handle this situation. >> you said that you supported the bill if it comes from the senate. do you expect senator cruz and one other senator to support and not prevent a bill passed in the senate perhaps this afternoon? >> it depends. i think if there's broad bipartisan support, my guess is that senator cruz would not object to it. if it's an outrageous capitulation, i can't speak to senator cruz. i don't know him that well. i didn't say i would support it. i said i

let me give you a couple of this iswe have told larry fink, this ceo of black rock.e financial times. who holds therson largest assets in the world. many foreign investors are rethinking their approach to investing, even a marginal change in the willingness of government and pension funds and other institutions around the world will incrementally raise interest rates and drive up the costs of financing our deficit. student loans are tied to treasury. people are rethinking their approach to investing in our that. damagell do lasting ironically to the deficit and to middle-class families. not because of the power of watchman nurser innovators. it is simply about dysfunction in the practice of threatening default in our budget battles. bill gross, the worldview of the u.s. has been damaged by all of this. this dysfunction appears to be a herman and disease that should concern longer-term treasury and investors as for the volatility of washington's debt. the international financial system is based on the assumption that the core of the system will predict early and respo

let me give you a couple of quote's we have told this is larry fink, this ceo of black rock. this is from the financial times. this is the person who holds the largest assets in the world. many foreign investors are rethinking their approach to investing, even a marginal change in the willingness of government and pension funds and other institutions around the world will incrementally raise interest rates and drive up the costs of financing our deficit. student loans are tied to treasury. people are rethinking their approach to investing in our that. that will do lasting damage ironically to the deficit and to middle-class families. again, this is not because of the power of watchman nurser innovators. it is simply about dysfunction in the practice of threatening default in our budget battles. bill gross, the worldview of the u.s. has been damaged by all of this. this dysfunction appears to be a herman and disease that should concern longer-term treasury and investors as for the volatility of washington's debt. the international financial system is based on the assumption th

first, let me introduce larry fink, the chairman and ceo of blackrock. he has been a great partner to the administration. we have benefited greatly from his global advice about the economy. he is the largest asset manager in the world, and his counsel and advice have been important over the last five years to the president and his economic team. group of very a large global investors several months ago, and that was the fruits in the beginning of our decision to have this large conference today, so, larry, thank you for your leadership and for being here. please join me in welcoming larry. [applause] next i would like to introduce angela, the chairman and ceo of dow chemical. every week.lmost he is the kind of ceo who rolls up his sleeves and is not shy about his advice. he serves on a president's council and was appointed co- chair of the advanced partnership. someone whose advice and counsel we appreciate. please join me in welcoming angelo. [applause] simon, theed by bill president and ceo of walmart usa. we work closely with bill and walmart on a ran

black rock ceo larry fink expressed optimism washington lawmakers will get their act together before debt ceiling deadline. >> it will be resolved very rapidly. but i think the most important thing that we must understand, the united states is a standard bearer of the world. people look to the united states as a country that lives by principles. and just the notion and just the conversation of a potential default is just unacceptable. >> on that note let's bring in john manley and john hogan with lazard capital markets. good morning. >> good morning. >> are you as sanguin as larry is? >> i certainly hope larry's right. the middle ground seems to be opening up to, as you pointed out, a larger deal, wrapping both the debt ceiling and continuing resolution together. but talking about things that have to do about the budget and walking away from the debate over obama care. if there's going to be a middle ground, it's going to have to be struck next week. they're going to have to talk about some things that are substantive to the budget and have nothing to do with obama care. the clock is