profitsnows investment the way he does about lisa abramowicz is with us as well.ave there been any injuries? >> not so far. >> triage will be done a bloomberg news. steve whiting, these are exciting times. what should investors do? would be careful to think this is all about american stocks, for example, and you have been bringing in europe -- >> and the loonie. >> yes it done this coming to grips with what is driving bats, the fact that the oil price could be down 20% in a world where we are always worried about geopolitical things, coming to grips with all of these across asset classes and should make investors part's not pause.stors markets have had half the volatility. that is veryt of material in that we are having a real shift in policy certainty. say imid-2011, you could very certain that cash yields in the united states will be zero even 12 months from now because the fed told you so. they are not saying that anymore and you cannot be so certain. >> within this conversation, this is what you do so well, oil prices up. croftdy get her limlima quick. eting,

lisa abramowicz and josh wright join me for perspective on the markets and monetary policy concerns.hank you both so much. best -- about the fed's let's talk about the fed best laid plans. throw a wrench into the plans or give a frenzied market some pause? >> i thought he was trying to give confidence because he said what will the extension of purchases do -- not that much in practical terms. it is more of a psychological boost, that the federal reserve is not stepping back from stimulus and they will keep easy money policies until six this -- sufficient signs of acceleration. >> what are those sufficient signs, josh? >> the fed has been about jobs and inflation. the jobs numbers continue to be strong so far. the interesting number is inflation numbers. market expectations of inflation have declined more than real data, so now we're talking about real economic data versus market expectations. >> at some point, because we are talking about a data dependent said, you have to go by the numbers on the numbers tell us and elation is still below the target of 2%. but the coreght, numbers -

. >> lisa abramowicz is also here. what on earth is going on?nsitioning to a new world and it's confusing. you guys had me on the show a number of times when stocks go down and the economy is in the pits. whatever the bad news was, i tried to tell you and i try to tell our clients that the fed will keep going until they get thisreflationary recovery in place and guessed what? it's here. >> why are we paying attention to it now? why are we saying oh my goodness look at what's happened? >> we are moving from a part of the policy reaction function at the fed, how they react to the downside which we knew well to this new world where we have to figure out how they react when everything goes right? the answer is we just don't know. that creates confusion. it's as simple as this -- they have rate projections telling you they will raise 75 basis points by the end of next year and so on. but we don't really know anything about those rate projections. we have the dollar to contend with, the europeans to contend with, the japanese to contend with. add in a

are investors to look for those parts of the market like high-yield or emerging-market debt. , lisa abramowiczoining me in studio. thank you so much. when "bottom line" continues, we will hear from the latest nobel prize winner for economics. how his efforts show how governments can best regulate industries that lack competition . we will be right back. ♪ wechsler this year's nobel prize for economics goes to french economist jean tirole, awarded for his work on market power and regulation. is and what he has discovered. it is a good day in france. they are celebrating. the 61-year-old head of industrial economics at toulouse university, a former m.i.t. professor, a guy who started with an engineering degree, got a doctorate, and then went on to get another doctorate in economics. this is a very smart guy. he was awarded the nobel prize for his work on market power and regulation. many industries are dominated by a small number of large firms, what we call an old godly -- an oligopoly or monopoly. it produces undesirable outcomes like excess prices, excess restraints to competition. he used ga

. >> lisa abramowicz covers the bond market for us.y are investors ready to , they have loads of cash. >> investors have been stockpiling cash over the past couple of months because yields have gotten so low. said we don'tly see the upside here. why don't we hold back and wait for some kind of this location? >> and make the hero trade? it looks good, especially if it doesn't go bad. >> the question is how technical and fundamental it is. there is a huge technical aspect to selloff in high yields. you saw investors pulling money from mutual funds and the biggest wall street banks selling into the selloff. it contributed to the selloff. there are some fundamental concerns. --ide imf director o these inflows have created a liquidity illusion. is that what we saw? >> that's a big part of it. when you have outflows for mutual funds and managers are forced to seleka mother is not as much of a buffer. -- are forced to selloff because there is not as much of a buffer. yes, this is a big issue. >> dodd-frank doesn't really help. get involvedcan