zane brown, and mark zandi. wonderful to have all three of you with us. let's get straight to this issue of the forecast on potentially on rates, mark zandi, and aside from the magnitude that he's saying they could go as high as 15% to 20% if they just stop buying, one thing i found fascinating about his point was he's saying really essentially, right, china could just start to buy different sorts of u.s. treasuries. go on the shorter end of the yield curve and all of a sudden long-term rates could go up without china even selling a dime. >> i didn't catch all the interview, but what i heard, that depressed me. i'm usually a guy who depresses me, but he actually depressed me. that's a scenario, but a very, very unlikely one. we've got our problems. we've been through a very wrenching period and interest rates are going to move higher 3.5% ten-year treasury yield is not something that's going to be around for a long time. 15%, 20%, you know, i just don't see t i think we're making progress on our problems. the saving rate is up. corporate savings is higher

thiss mark zandi. >> suzan: that's "nightly business rort" for monday, ptember 21. i'm zanne pratt goodght everyone. angood night to you paul. >> paul: goodnight suzne. i'm paul kans wishing all ofou the best of good buys. "night business report" is made possible by: this program wasade possible contributions to your pbs station from viers like you. ank you. captioning sponsored by wpbt captioned by media access groupt wgbh accessgbh.org

economist mark zandi says government policy is key to what happens next. >> i don't think the housing market will do well without significant continued government support. that means continued low mortgage rates because of the federal reserve buying mortgage securities; that means an extension of the housing tax credit; that means an extension of higher conforming loan limits and other things. i just think, at this point, the market is still too fragile. after modest opening gains, wall street headed lower this morning as investors focused on those disappointing home sales numbers and ignored a drop of 21,000 in the latest weekly jobless benefit claims. the dow gave up an early 30- point advance and posted a 45- point loss at 11:00 a.m., with the nasdaq off 27 points. stocks stayed broadly lower as a resurgence in the dollar undermined commodities, especially oil. the dow industrial average closed down 41.11 at 9,707.44. the nasdaq fell 23.81 to 2,107.61. the s&p 500 lost 10.09 to 1,050.78. in the bond market, the ten-year note rose 10/32 to 102 2/32, putting the yield at 3.38%. >> su

ecomist mark zandi says government picy is key to what happens next. >> i don't think the housi maet will do well without significant coinued government pport. that meansontinued low mortga rates because of the federal rerve buying mortgage securitiesthat means an extension of the housing t credit; that meansn extension of higher conforming loalimits and other ings. i just think, at this pot, the market is still too agile. afr modest opening gains, wall street headed lower this mning as investors focus on those disappointing home sal numbers d ignored a drop of 21,000 i the latest weekly jobls benefit claims the dow gave up anarly 30- int advance and posted a 45- int loss at 11:00 a.m., with the naaq off 27 points. stockstayed broadly lower as a resuence in the dollar undermined cmodities, especily oil. the dow industrial avege closed down 41.11 9,707.44. the nasdaq fell .81 to 2,107.61. the p 500 lost 10.09 to 1,050.. the bond market, the ten-ye note rose 10/32 to 102/32, puttinthe yield at 3.38%. >>uzanne: the senate finance commite today continued debate over chaman max baucus' op

mark zandi a highly respected economist wrote, the financial stimulus providing the fodder for betterales, lower payroll tax withholding, checks to social security recipients and more financial help to unemployed workers are buoying the sales. the recession is ending just when the stimulus is providing maximum economic benefit, end of quote. as australia's prime minister said a couple of weeks ago and i quote, this is a case study in bringing the world back from the brink and it was the american leadership from president obama that was the key, end of quote. you know, it all adds up to this. if my view at least. the recovery act has played a significant role in changing the trajectory of our economy and changing the conversation about the economy in this country. instead of talking about the beginning of a depression, we're talking about the end of a recession eight months after taking office. but the recovery act still has its critics and one of the criticisms is that it's a grab bag of too many different programs. but the fact is the recovery act is a multifacete piece of legislatio

mark standy, the economic advisor to john mccain's presidential campaign last year, said the stimulus contributed to g.d.p. growth. dr. zandy recently stated, i quote, as the fiscal stimulus provides the most maximum benefit in the next few months, real gross domestic product should turn from negative to positive in the current quarter. current projection so that the recovery act increased g.d.p. by 2.3% this year. we voted on the recovery act this winter, economists from across the political spectrum eam emfatically stated the fiscal stimulus was seengs. dr. zandy, for example, stated the stimulus plan as laid out will provide a vital boost to a flagging economy. president reagan's chief economic advisor, martin fell stein, testified before a -- melstein, testified before a joint house committee, that a large economic stimulus would be essential to avoid catastrophe and catastrophic unemployment. then bernanke, the republican apointed chairman of the federal reserve stated, the 5d mcmorris rodgers and congress are currently discussing substantial fiscal package that can passed could provide an economic boost. since that he