marty feldstein is a professor mer mer -- emeritus.omy at this point. what is your thought on all of this? >> i think the fed is actually helping the housing sector. i'm not sure that is such a good thing. we have had a housing boom and bust in the past and drove us into the recession in 2007. i'm afraid the house prices could depend on these extremely low mortgage rates which will turn around when the fed stops its quantitative easing policy. >> that's fair concern. we did speak to someone who said we're looking at higher prices across the board but aren't real buyers, investors jumping in and all have a way of changing the valuation and distorting thing. the question is when does the fed step out and what happens to the valuations when they do? >> at some point, the fed has to stop changing long term interest rates. they say that's the strategy. if we take long term bond rates to anything like a normal number. right now you have negative 10 year yield rates. we take that back to a normal number, that means higher bond interest rates,

have the debt limit coming up and have to have a unified position and i'm worried, we just heard marty feldsteinn the previous blog making the point that the white house has lots of the powerment i was the legislative management in the reagan administration, the white house can force those through and i don't think it gives much leverage. >> at all. >> so instead republicans should be demanding the spending cuts. >> neil: and stop the gimmicks, i want to leave you with a quick thought. congressman in washington came up with an idea to have the federal reserve print a trillion dollar coin that's a fall back in case they're up against the break. i'm telling you this is what happened to rome in the final days. i have no proof, but i think so. good night. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

up next, marty feldstein will weigh in on that. ♪ ♪ [ male announcer ] this is ren anjeremiah.don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. it's just common sense. all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. e most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. ♪ david: well, just as tax increase

my favorite harvard professor, marti feldstein. he will join me.e budget. hope i can't wait. join me at -- macro econ, the foundation for everything. ec 10. lori: do you think he remembers you? melissa: he will pretend like he does. that's for sure. lori: with apple plunging how can you invest in its smartphone rival samsung? tracy byrnes and ashley webster have the answers next on fox business. don't miss it. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. apple falling hard. the stock dropping nearly 12% on fears the company, well, is losing out to smartphone rival samsung. that raises the question how can you invest in samsung? we're looking for options in moments. it is not that easy. tracy: it is not. there is no adr. the odd man out months after nasdaq and i.c.e. teamed up in a failed bid to take over the new york stock exchange, nyse and i.c.e. are going it alone. bob fwri felled shares his reaction w

yesterday we spoke with marty feldstein who says he thinks the fed is artificially inflating housinghat makes people able to get much lower mortgage rates and eventually that's going to come off and will put a lot of pressure he thinks on the housing market. >> well, you know, i love marty a lot as a colleague. but i think he's wrong here. i mean, world interest rates are low. inflation is low. real rates are low. you know, i don't think even a point up on mortgage rates is going to kill this market. i mean, we're still below a million housing starts a year. all the economists i talk to say the normal is 1.5 million. >> jeremy, do you -- if you had to say -- we talk about sentiment, and now it's been 12 years, and the individual investor doesn't really necessarily believe in buy and hold anymore, and sometimes i think what you're saying is, if you look at the public, and investor sentiment and see how low it is, and we're so early in them returning, that's almost more important than anything that happens in washington. you can almost base your buy and sell decisions on that, rather t