there seems to be growing evidence that some of the mbs purchases, the impact of the mbs purchases, banks are holding on to some of the gains and not passing them on to the borrowers. is there anything you can do about that, and are you concerned about that? thank you. >> so the question is just to restate your question is about the spread between the mortgage rates that the public pays and the yields to mortgage-backed securities that banks may hold, and the question is that spread widening so that the full benefit of the reduction in mbs yields is being passed through. that's the question. >> yes. >> i just want to make sure that everybody heard it. >> so you can answer. our analysis suggests that it takes time. two points. the first point is that -- is that while we don't expect 100% pass-through of mbs yields to mortgage rates, our empirical and theoretical analysis, and the we've had quite a bit of work done on this issue, suggests that over time the great majority of the decline in mbs yields does get passed through to mortgage rates so we do anticipate over time that the full benef

let me distinguish between the treasury purchases and the mbs purchases.id: yeah. >> you mentioned both in the lead-in. david: right. >> i think the mbs purchases are potentially more important, more stimulative, holding down mbs rates which holds down mortgage rates and which helps refinancing and so on. david: but if i could put a fine point on treasury purchases as opposed to old type of thing which was just a switch, switching the short term for long term. >> exactly. david: this is brand new purchases. i would argue that is the more important part of today's announcement. >> well that is the more important part of today's announcement because the mbs purchases was announced a while ago but in terms of strength on the economy i put the mbs purchases first and treasury second. look, the fed was in a quandary. it was doing this twisting operation, buying the longs and selling the shorts. it no longer has any shorts to sell. so its choice was do we do nothing which would be a modest contractionary policy or do we just leave on the buying of the longs whic

it is important that we are acquiring treasury securities and mbs, taking those out of the market and forcing investment -- investors and two other closely related assets. it is not just the size of the balance sheet, per se. the amount of stimulus is more or less the same, it is a follow-through from what we sought in september. in terms of criteria, we have announced an initial amount of $85 billion per month of purchases. we are prepared to bury that as new information comes in. if the economy's outlook gets most of the stronger, we will begin to ramp down the level of purchases. the problem with giving a specific number is that there are multiple criteria with which we make this decision. we will look at the outlook of the labour market but we will also look at other factors that may be affecting the outlook for the economy. for example, if the fiscal cliff occurs, i don't think the federal reserve has the tools to offset that the event and in that case, we have to temper our expectations as to what we can accomplish. we will also be looking at the efficacy and cost of our program

mb wth te msp der stththinie tield ger ncattor . yeengoo inte int,% omaw dun heeae flianin cr ie ar psiandese heeae ki chs uswe mr ysiof agorr t tuadagn woor! tcol ouin d byoonnc int s. tuadag beanyms tingrer s. noerman ravae. ites neplonll d sic eao its le30on icda tten innd agh stne ge y nsge emdioi imti evtun ma. stwoaly morecoeul crwipfo prt s alp drs moyoki re dce aro hey tver stthlog . ep ie in hezi ttrel le eas ecca nget vege turn thh paed ose veys oritly ilu p emblmi thokfiin in, cr f anve she evkine ravae isefiv ll yerki skn oee an. prurikto em p ur cos thnd drs d ree veim 's a-m sy ofs lycete e-tiys aazban j$8. yeet an fourn,'lre 'sthryny bucawel re tu wio d up lle atly atns w p 9.orurdvge $7 oen.9 int,n orno thh sal temeer e rfosut rm aou fost.9 ry yl ntofs r y ravae. if d autlo wht fouin yon ick al fuf pasic ev ouust up ac'mans yo sou-lngn nalan, en asmytnatst thnkwi 1ar accon om saac, outh are f60s. so'vt in l a tir cas, w e twazfrif 5 e,rse. e ed fng anftnerent gry-inea thli n déetea thelmoanne thpecesag fiinndnk buato

. - ar pctr las rika w'eeatr ci teict - ar pctr las rika cre w'e'rethci rc wites teict - f rivn mb - ec cdy w obai - f r tllveil [sng - knitld am yli g d'kehoro boh en trong - knitld untaerhe am ylis up d'kehoro boh en tr0 3 whexy?- sed'ow - e? soer tosl. incamyk sd. theembed oro wap heni thbaai n stifee ..myk'li ree. wap heni thbaai by ti up ..myk'li henii g! gye p er ketiwio cober ti chrschvieappant colthrm. ads petl thun s nr. 'st icse hou®3% arpa exenbaaili foudmms,l nr weine ee brreut eembedlu pr, mo pa $av c d abth stsps ca mfbles ps. bue p er ouo b inw yl eln mes lad fant dele m ju bsun, al bpat. lad fant ee tlenu bysan dele ghecndto y en edtheato ? ghecndto slnu bos oue a y en inprbusttwasg. yoadk,l cahebe y sc fouee llht aou alec a sgs jfoqug t slnu b k t rire30hthori n 0 ngrd llsig e tved ue e cr r.nhemi romaitie an o p c. ved ormaer tt rothgh doanll. ved oybu yohader mompnt9 0 le t ved li o c norr dvd rmn yon'alav uvibee yon'ver . d evhoun meths y anp er ssyoave s. icavuge yhounli. in] rota mereano. icavuge yhounli. lllo thounm int ved] o netail exhepi asn ose. rwanit hta

atomngt'ry rtin o wee uali rthe pye coin w oknd wl chmare-ol iton mo fod ve atha no mb 'sutet the t sshaomn. ha hayom o homa" seu t ptd he naaltig it wwicrg >> oens ne to aur] i sgonds peusc. isk woid aos $2ilowse a downeitnor po ddesshi hay as burs ginhe sc t ohe"3ocet

atw ty el san le ev t winve o y s, il mb thsut. t'l hiek epe " h."exek m o ama'pesnd si an y mdomng dashrou jt e th angme adhov. yon jou foo fa ollstwr ♪ condkeec evneea nusring it c h dse d d. k bo condke yoeaane th oumiepon eyp n hd rm thel wanay d asechabates thbaie 'tt arle the cl. moha,0 frrof ti ssthriak aonen we e tre atilchgyes s pt rnsit asatedn.nd hou are tcy t 2rle. > srends n e. isk e de hooosp owe, anra cmpya nt ri pl witig ic na a ack o ryerivgos t hu r. t,reanrt f r mi heinom e >> l ieirng atwso tac b

nis ivw r, mb woueaou e em hig] abyo c io intlelinstnt quy ennk t w fs ta inunt coteceavale ta aibn gl ou ahalis itinr . whr neo a her fa ir a-e unarju a lenkyoay doitr neo ep se-e chgynjveu thti anrgasod whoud utouod fa e neghp es boriniquy ocngyoouto itesshppal d si ss,ce lot cr.. egr lchn bendesamg dsdoins sds eps o 0 ofonui, de odces,erd ngerutt de 's ondy ia ne i ad es haju, d oo ma- 'rl . m g nifol osd solye nnernjs ngea lty rd fvee. stuto has ansyinea thalrianac r anuriln w,e'urt, dace rr.. >>.. yolithow e,leets fr l 7ncntr uspsout in , br p aou abto, thrs tithsteran veiltcapncu uleram anreshout eaexng dio ngltan ie n nd nr inofonle stn icarse i,nd >> m iheodo od yo traewa tcsy. noe tethwo hoowotndn coedwiurjade teloo ve esalndan esald . ofonleg ws tosh isnor crlestntli fr ds smie sp mpona coino ep ofonle tco ly0. fd oe w soicbe waousee er at gheu t niblsy cneth twrser aru y? io te s hi l g hig. e isnintow lot ! trmpth rrfa thdohani hestan crng teanoke imeg o has yavnj es ito ed wyo inath esal hpo chthuten oh ges aishi a errey . okth>>.. nthnjasth e tresnwh tecinieor stntlirodr

with average down mosby's of 2.5 mb per second. the bad as it is will fiber is only available in just one place right now kansas city, attack kansas. the rest of us net flicks as horizon files ranks no. 2 at nearly 2.2 mb per second. tomcats comes at a close third. >> 611 as the time and we will be back in a couple of minutes as we continue to was developing news and weather and traffic this morning. a live look of the golden gate bridge, still little wet there. we will be back with more details about the rain when it will go and when it will come back in a moment. woke up to a free rain drops but they're few and far between. are they going to come back? >> this weekend but most of the rain is moving out of our area. because of instability lit up pop up thunderstorms are possibility later on this afternoon. small hail could be produced. storm tracker 4 and we're looking at a break right now and it is pushing its way through. we're picking up light rain mid span on this and revell bridge to the east shore freeway from pinole headed

raweeaha >>whre pry dientheoho looir ian fe mers ra f ra t a cnt pl wet m sy pre o tnfti c he che rmn mbom t thhofthend ensorl ce anoint m s the e. cutrvhe gens das, atsdiy o ewo, he t vi wasfeum tal ahe ib owgho a pn ctceo tw ykn iia rmofdier rzi n t asan a fe gngoror ni se w sttethisr nd 3f to letaedegri ar tirnd se i twohr dy reerwe aer c t y cdfe spe tay a t gasan weut0 00 legied annlav a12 ect ce f ns t d g pe e, a enroksquy dein tmaou idat s rassi ahe wehe eou gou chngouro c torreocn. >> d elica >>s$30. ooruenro a er w irmn ee t hafo sad hapenfti d opdha >> h t iifhaou thlls rmt e sce ers w'r el, g t foio ansueumtiou ve hwn meio werdtnnd letnghe st rdoinat thantycao ckha ccu wewoitheo m rey gt ed pld t bh f siy,owhi thnyrets fostny anngha wee? >>s w.stsice. oreoronhi athop c u ou a w.keprco >>lcbaim t liaceluss wie isp ui ycoy. >canehi ek epuryi coit b gghe cm uc hcls. ta ok ♪♪ asd, fn l wipend sciothcoer aswolut t thndvion fl, wser il nd 's i cbondt re i shi bi. er h td ntsemp ait stdit aeafa i on auss etn f mch ttndrty buss soe y ch et uo a oieor em i aot f tndhe . haidakur u gng

w hato a ofheer l't alhinnc weboil mb it ryfrat >>s l eayhe oac itotik wve g tenthisll reed 'rhig w g wi woaus ifswi tsre pldidur ushatele i t peonli hochagmeg th ca. yay a hou ustndkeoh tr hoe g wharom tgh y ust'otdn ar? horeyo >> mgo >>t' y, ? hoit g? idec . 'rerocu u. aneelr h- me hlr d mo gsobt he t f. ♪♪ me. or t hneo. ianie it k >>oh'tnkyee n'entertn r . lpus oitur ry, av c ro utgn ouan seav bs eh hnereru dr w cg adhi tun'aken reg t uge to lg. oudeyeerng r iak iooke n hne etheaul ag n o s, wavo sth de htouc use ndor op weeond tri w thwic mhe is, ilhet. i pbl m o br and m i l ket'lwbeth ingo v diul onh ew bll int thoi oe franidth bin ctyhe ncknd ret >>uiwh o cos pp rery h stot rat viro hadtec a ey as wd w,sevein deye ts ay 'laktve brha asre le lo >>ne yld. at y yoan tet t? >>'sgo l >>'s dit >>om fan tu sriy b w wiut tla b th ♪ > c ira ao moit >> ksoe nofd ue nd a el e- eobc. ♪ >>deot o af no 3m euc ma prti legeo wo th ein mry b t. f lop whe u setowut h an rod. e teac t peras ♪ arld b t ic iabntve ocbu iileort wht'lai a . fiyoveo g yew ea m astlo co ok. y c wos e. olicerl sopi thw

w hato a ofheer l't alhinnc weboil mb it ryfrat >>s l eayhe oac itotik wve g tenthisll reed 'rhig w ghe wi woaus ifswi tsre pldidur ushatele i t peonli hochagmeg th ca. yay a hou ustndkeoh tr hoe g wharom tgh y ust'otdn ar? horeyo >> mgo >>t' y, ? hoit g? idec . 'rerocu u. aneelr h- me hlr d mo gsobt he t f. ♪♪ me. or t hneo. ianie it k >>oh'tnkyee n'entertn r . lpus oitur ry, av c ro utgn ouan seav bs eh hnereru dr w cg adhi tun'aken reg t uge to lg. oudeyeerng r iak iooke n hne etheaul ag n o s, wavo sth de htouc use ndor op weeond tri w thwic mhe is, ilhet. i pbl m o br and m i l ket'lwbeth ingo v diul onh ew bll int thoi oe franidth bin ctyhe ncknd ret >>uiwh o cos pp rery h stot rat viro hadtec a ey as wd w,sevein deye ts ay 'laktve brha asre le lo >>ne yld. at y yoan tet t? >>'sgo l >>'s dit >>om fan tu sriy b w wiut tla b th ♪ > c ira ao moit >nomeinod aof re? un-m marg.c ♪ > af du l o is gar prti sk oton t'trk isxigas iow >>yook talre caes b thasll bcomi >>hao t iko thoie at. ♪ >> tryrio n k,t' aoren esttlth ens dnddo rsu etou k att lse olthldbr ouansee' at th thd kse on liec

. th g ia ofin ath gr ..dsexenit n ut gs nd ste e ts f whisfe. i ret r.in chhiis e de bus pee incth mbs mthwi af-ht ner elusld o li iri ar ty e . iseamef r. ndofbse o vepe ac tou, ngks a ou r orthinst wi kofou h, toakd knt s opheortyge vo wut bxp d nges h s nd'lar ouneng atl coti .allmeot -md ls. retot mrs las,tomy trn' er busmbip dd handwi u'kema 'sd od a allumbip t ea onmetin of niun dos hoolts toohe cof witsst hin arr le gyo t ourm roe,s toso ys l, itot whng ourouexed rupr sls.il tre .. la mg owne 'st ghre g vo ie est re nohad ra be oc aneerasin v s t peal ls,m whca mn. en d tind git ri ou at rengdoh it maitote on d he, 'st ab u et yprms u hanu h fu pealere ng ned ng t ths msttoe wcoy, nechng ae mas ar ae of cr vet ale el w we wwee . a4 t w i k het i . sm sodd r.ow g tt mon ths deeaan sk yo n touo t pain urn. k nwou .to e nd sc ps,cheo doad pots sup o aiwser l nwou . caalkenem s ya ne ie a moinacar keferrwh m euph ghtlo mth fene ra ar arop ov thoiner socks arh erast ju iru. wee stho w onil ie p heha ere cr ec atllernd i'x.coo la in h a lat i'ik syo w ce. o a'low ar. ad yo fmo jyo dai

nombwinde, veitfu ohgo msh mbisin fan dydu hade llywnm eds nentant shton st u'lsndpare yon pain eatsl d mbstocr los oiininheg hamae. hendatn th un f oor c of sie'ego t h rde h s hefur bng o k ny ka ue f o ss latrae ag thele hech meenighiha thisngomhe t if tpis ino ye aloi aith ns .d ng co oe mpai mgewi rkmo tymhr pe'sy et xiut aptoagof suy'mtsp ys tmeelig poann thdympdee lendca l ug yboha lpfi ooxin lyinr dymp aid i ie sel eiandi d ns w tgh b haymodn neartse ofr hen higindn yan. 'rca evhe dinr ts w nis unolle sh ahe ly..shthuit hea re auu d b aymom cko a i avitreckks thh poanme le t akis bin eeikme's scng wthgea osp bt fily mfblheph drgefo le hlomu emo ha c, les kofng ouofven or poofe.iny a thli t watihen nentfig t meem'stl pa.. dr cth h puheou latt, bif wecrthrtex nent xtk inun.. weby.. m wby t. tusntbrng piof carninunbao . , giore coy'unlo omanw oo u atllt ine tr caalkenem e s in hacrdthnt maihe maen conan pinoo o ab60tta . he s ttelttg thine'rog ahe omind ieatotg y wiabre 'rnnatupab 80grwhis teat the tizatke t e y aspu lo linakmy asinepkihe h. "lngses tom teat" ng s. ka le toce eeegnt x

google fiber as the speedy its internet connection in the u.s., with average download speeds of 2.5 mb per second. but the bad news google fiber is only available in just one place right now which is kansas city, kansas. for the rest of us, and netflix says bryozoan effort by all as ranks no. 2, at nearly 2.2 mb per second. while comcast, said at a close third. >> doubles e-mail service has gotten a makeover. the new revamps in box is more user-friendly and caters to people check their e-mail smart phones and tablet computers. is the company's attempt to regain some of the ground lost a google. y'alls new ceo marissa mayer this tried to give people more reasons to use the company's on-line services and stick or around longer. >> >> new this morning there is something perfect for those who like to shop online and also impatient about getting the items. starting to that the financially struggling postal service is launching their same day delivery that could have those items delivered as soon as two hours after you buy them. >> we will go to will tran where he is waiting at the post offi

governor and other state officials who will mark that moment of silence something that will happen across÷mb country today. bells across connecticut will toll 26 times 9:30 this morning, marking the exact moment when terror!yjy& invaded sandy hook elementary. governor malloy called for a moment of silenceí?m and asked billings with bells to#b"=@ rig . for every --s many governors asked residents silence. yesterday, friends and family said good-bye to four more childrev0e:nxÑc benjamin. >> there should be no reason for a coffin that small. >> reporter: two teachers werepf also laid to rest. murphy was found shielding during her service the cardinal of new york?juz compard «ñ emuh+ssb.6l parker launched lantern for each victim in utah last night. >> there's no reason for us to be here tonight Ä new hampshire attended by 25 -- private service in new hampshire attended by 25 family members. attorney general holder met responders and investigators yesterday. >> i hope the healingzhenç can begin. it going to be a long haul, changes have to be made.?i the long line of grieving continues for th

that point we began the $40 billion per month of mbs purchases and said that unless we saw substantial improvement and outlook for labor market we would undertake additional asset purchasesor other actions. that's what we've done today. is simply follow through with what we said we would do in september. i don't think we have relative to last month, i don't think we have significantly added to accommodation. the reason is at least in my view and many of my colleagues is mix of assets on the balance sheets. on the asset side of the balance sheet. so what is important is the fact that we are acquiring treasury securities and mbs taking those out of the market. forcing investors into closely related assets. not so much in the size of the balance sheet per se. in my judgment, the amount of stimulus is more or less the same. just continued. follow through from what we saw in september. in terms of criteria, again, what we have done is announced an initial amount of 85 billion a month of purchases. we are prepared to vary that as new information comes in. for example, if the economy's outloo

then the port also then went to work with the planning commission and the board of supervisors and mb dc to outline the policies appropriate for the waterfront with the city's planned policies for the waterfront and to align the various jurisdictions and to try to give careful and consistent focus what should be happening along that waterfront. as i mentioned there are mixed use development opportunities that are identified in the land use plan, and the bryant street opportunity area is one of those within the south beach area consisting of pier 30-32 and sea wall lot 330. during the plan process it was always seen as an opportunity to create these mix use maritime developments that brought new opportunities for expansion and improvement of maritime uses with a mix of uses that would help to finance the bill taking of our piers, create a new mix of activities that would draw people out to the waterfront, and also we coordinated that with the open space plan. that's also promoted in the plan so the wharf project that was described to you was distributed conceived as a package for benef

there seems to be growing evidence that some of the mbs purchases, the impact of the mbs purchases, the banks are holding onto some of the gains of not passing them on to the borrowers. is there anything you can do about that and are you upset about that? >> the question is, just to restate your question is about the spread between the mortgage rates that the public pays and the yields to mortgage-backed securities that banks may hold and the question is, is that spread widening so that the whole benefit of the reduction is not being passed through. that is the question. i just had to make sure everybody heard it. [laughter] our analysis suggests that it takes time. two points. the first is that while we don't expect 100% pass through yields to mortgage rates are empirical and theoretical analysis, we have had quite a bit of work done on this issue, suggested over time the great majority of the decline in mbs yields does get passed through to mortgage rates so we do anticipate over time that the full benefit or most of the benefit will be seen by retail customers and indeed we have seen

there is a number of things that will raise that spread between mortgage rates and mbs yields. that is unfortunate. what we can try to do is try to encourage good policy that will reduce the perceived risk of cost to banks of making mortgage loans. but again, i think most of those things are not really in our control. again, taking all those issues as a constant, it does seem to be the case that over a period of time, most of the declines in mbs yields do find their way through to mortgage customers and thereby strengthening of the housing market. >> thank you very much. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> president obama will be in new to an incoming connecticut, this afternoon. -- in newton connecticut, and he will be talking to the families and thinking the first responders. he will be speaking at an interfaith vigil beginning at 7:00 p.m. here on c-span. >> the white house was very controversial. the designer of washington's city, there is a competition and he submitted a design for a palace. am

a health scare at u-mb-c warning students about a new abell is on campus with reaction, jeff....:10) (abell) tonight. someone, somewhere oo ccmpus has bben diagnosed &pwith tuberculosis...." (17:23:55) (reading alert) community has een diagnosed alert went out arlier the - today..... administratoos confirmed that an "unidentiffed perron".....in tuberrulosis. (17:26:12) "for connidentiallty purposes, thhy can't tell uss aalittle more informatioo..." (17:20:20) "the first for thrre ayy maybe its me...." t-b is an airborne disease which attackssthe lungs....aad can rove deadly. &p at the county heaath ddpartment, they're trring to determine if this case....has spreed. (17:14:10) (monique pyle) "ffrttnately with t-b, its veer difficult to contract time with the nfected indiviiual, so there's aavery low risk potential for the commuuity at large." (abell) ""hhs is the second time this year tte campus has deaat with tuberculosss. campus in february." n - (17:23:25) "for a smaall &pcampus its kindaasurprising how many casesswe had so far...." for nnw, the campus is on aaerr.....as studen

and then last year, mb donal beat deeds. moving on to new jersey, speaking of the terry mcauliffe campai campaign, if you're thinking of working on hillary clinton's campaign, you're supposed to send your resume to mcauliffe. i'm not joking about that. in new jersey, chris christie's run for a second term and presidential ambitions will be shaped on how he manages the hurricane sandy effort. will he make a move towards a presidential bid? watch the garden state governor's race for clues. people close to christie believe the biggest mistake mitt romney made was not seeking a second term in massachusetts. they believe their best shot is winning the election in 2013. >>> joining thus hour, stephanie cutter, kevin madden from their respective campaigns, obama and romney, they'll be here next. we made a list. we checked it twice. now we're going beyond hillary and jeb. we'll have the daily rundown's politicians to watch in the new year. you're watching a special edition of "the daily rundown." i'm the messenger, by the way. what'

. >> coming up on "the willis report," outrage in staten island as a mb was broken promises and governmenteaucracy has stifled the recovery. as a source of lost everything they work for an disgusting than big time. we get to the bottom of t. and then nfl nightmare, murd-suicide tragedy exposing huge problems within one of the biggest industri in the country. football legend ricky watters is 50 of the cystic. also, lumps of coal for america's hottest company. we are o the case next on "the willis report." gerri: been morehan a month since hurricane sandy ravaged the east coast. new york governor andrew cuomo seeking federal aidfor the victims of superstar and sandy, new york and new jersey requting $79 billion from the federal government in order to rebuild. but there are still many foks picking up the pieces, trying to rebuild there lives and businesses. my next guest who lost her entire store in the storm. she says the government has done nothing to help work and finds herself in a circle of red tape. if you for coming in the show. appreciated. >> thanks you for having me in letting me te

at that point we began the 40 billion-dollar per month of mbs purchases and he said that unless we saw substantial improvement in the outlook of the labor market we would undertake additional asset purchases or other actions and that is what we have done today. we have have follow-through but what we said we would do in september. i don't think we have relative to the last month i don't think we have specifically added to accommodations. the reason is that at least in my view and i think many of my colleagues, that what matters primarily is the mix of assets on the balance sheet on the access side of the balance sheet so what is important is the fact that we are acquiring treasury securities and mbs, taking those out of the market and forcing investors into other closely related assets and that is where the stimulus comes from, not so much on the side of the balance sheet per se so in my judgment the amount of stimulus is more or less the same and continues to follow-through from what we saw in september. in terms of criteria, again, what we have done is we have announced an initial am

market, they're divided in terms of 50% think it will be treasuries only, 50% think treasuries and mbss come into more and more -- the fed has come into more and more criticism. what we're finding this is market is increasingly concerned all these purchases will disrupt market function and pollute the pricing information inside the market. they didn't feel that way in september of 40 and apparently we're crossing a threshold of concern in the market. a couple other points, we want to know what bernanke's view is on the drop in employment. we think he will say i don't think it's for real, doesn't tell me the labor market is improving because of the reasons the unemployment rate is dropping. then there will be some discussion about using economic targets versus calendar targets at the moment for fed watch. when it does change c the market has to pay attention to the change in guidance. right now, i don't think they're ready to do that. michelle. >> what about the fiscal cliff? >> the fiscal cliff is something he will talk about, say they have to solve this. he's talked before about the u

and my personal view is they're going to be buying $45 billion of treasuries and $40 billion of mbs.nth until well into 2013. and it wouldn't surprise me if they were still buying by the end of next year. >> 7%, fed has forecast 8.1%. in fact it forecast 7.75% for 2013. >> yeah. >> so, the unemployment rate doing better than the fed had forecast. cos that change policy at all? >> i don't think so. you know, i think they look at the labor market, rather than that one number. that number is so distorted. the survey which it comes from is so wild, so volatile, they look at the broad picture. pay roll is 150 a month, that's not good enough. >> we should point out ian has a new company. he used to be at another company. pantheon you just started. >> yeah. >> and just hired five americans. >> what was it high frequency? we can't even say that? >> i didn't want to -- >> doesn't even exist anymore? >> so it's not exnay on the -- >> no one's ever left here. >> they poof. when they leave cnbc, never to be seen. >> right. >> so this was your first -- you just got here? you've never had another

a huge change or the private mbs, private and investors -- there is a huge volume -- to large of a volume $700 billion to the private-label security exchange system. $22 billion is overstating -- a lot is repackaging and it not true new loans going through the system. of all the slides i have, this is the most telling of where is the credit coming from. it is coming through the u.s. government balance sheet. lots of statistics about 95% of loans being made are effectively guaranteed by the government. to put this into international context, a lot is originated around the world as well. europe does not use a government backing program. they use a pond system as well that has some various backings through the banking sector, but ultimately you have a significant amount of rbs originative threat the world. much of their securities that the issue, they retain on their own balance sheet. they pledged them to the european central bank. it is a way of getting credit to the government system. it is not fannie and freddie like, but it has a government backdrop. japan, australia, each of these will

be hat wo the rhan bc maermf,oyacto utoavefe riinexer ♪ >>y,gu mb m pesal bec per.e bcir. i'inove t a tr y g fo wellkn atbaue abin b doo atre a ree enhe iari hati' odict asllgin imou h f er urd,atld cdegrng alavok. herise sn lo nreea theoxn the si ahe asee inervi tat unuter he se det ethgnoud toowo ayp oo ye ll o reokoruiis teur tmpatoue cin t, temtuf w i e. ng tve yo silepsn sled tepfoure exie od'met s. eiiouh ng t are uc ssod. lrdyote se er omarn te i g dyn ri. e in gllth nsiisa s lumeeae olnt. l hi 'si c o at 5,des tco prc nca tisecd, ungrrab pormpurst reract ifew,ouont tottto1des oueaki sendeah t th gprucis gg yof gus ss iscauo sae. yoey it hets 'r go rseot i ohe ie, t' ict aate a we j cngri d. oucor h de ohy g ths aatsa w jtirt ernmeayonf es weeotrein e fht g r ngnind bugs fxh et fdutowak ter g d b aeltyefic gilonhe >cob yo el sotik gow o sa s elusshch ttt oi yoow faninfo anin yabndta >>knhyo a ti t. theinld b anr ryh spl fam. rlk a cen s. ♪ >> nesuis fla. g t arthf ouus ke iss. eyle ph e an cthorle15 nu ngartranst beseh j wi edinnoil s lyedsi. mybandavn fo rs

stwihe le mbs wawius e nge. mr yod p atno facll wcoy qu weuge'kere om t ma alo da le fom xa.bastthak methst ptsmngdufo ure . rtlen sp inirntseop e,re of tmearse suy" prtserev mpg alt te w a frfas init ttkire. thstenou h agt g o n kee sasngpole r cond deh essue ys'ser o y eaheic c gotortr tmtobyan ure. cusla clyoyee lyt s eto e t akcaf r c illa t tll y fhet he lithabtawi eat tteac er.. gwaepn y po bs ahes th diputhut ss p sey bhe nc prlex n m a yoas. oeea nsma bodo le ti anm g ppt. oneee tl ash goto snie ours elu x. w g tdre uremwi w waot the'oio it abfir mis. r tme. deteeee th. ea ypojuro l dasmndlu an evhin aiey tha. thanayt prts d g n heeg prm doate.in behiou d stur tcaf ao el mpg yfuin wi-l ilkindoywi pof wcoy st sinmesi a on thiwee t thayli r stha pde ofnaer annes onco, vi p t re canten ourske e sheaando ngcet' ti aleinhe ra sund. e dtiinou ispeare tr sthaansbja elal thusseg . oenixes hen anva, in o bulng bua indg 1anat hothe i thupecy va ei ure cry op. thwaga oe prty aceor stanke gng retoe h he hed oovire eyig w tnoten anllve ng sr yan bleenaiwn thol d bengk fo frhechnde

hi yomnses tngndiant yownsp mb l i.ore. > n annhi me la w >> wmeken us nee ehhers o nified h i cho zi chtu ta t llm ce i sun shor en ♪ himveue i ic we 3esorf ndty iub o l strew y ti un00 uaoo pdiom 0 h n ad letaok 'rer ieuxus li lotsracence th f fri avne fliat ug tfil. eracrain ngm asou t s th eekyhlo toli wwsndat kiew 'r hth moor il. eoz w bng fiac trtrs d aiois uiturdouou gi t er vopogevie orce on treeasth ie baitlis erom cl iisedm seyos cetnd ils. mmlde leour a begeenhear hespl w ai ge wcos, icer aot o cer e. ieer p t ten fy ie no t asi ken thste, ert rini uns,sh siit t a de woannd s. th iheim ken whalouamnd iewier thinoo i wrf e ntinilnd ndtheso p oue th rd dicoresd is idipela w wiheesrf yo hctaror ilin we y vif5es ous rdan lca . wlaoaxnd un, asit ot jric eruiit oas ba nohe tasas for. fom. adon y hhish rdldarng rredil drind s. ♪♪ id edh acdrand gn gnroioy bg hi thlu ackav lkthomel sunde eds teeawigoo ot ahe ca wh an rer ♪♪ e h ksinr 10 set ad vak ft ilis >lleart inha l ctes. >>coacoen us nee'n nnl. hoo wth m hihige

kiut tat p ls t y wd g yhi e'row aony uatol mb maouhondvein u'owt eaa. >>nk.woitoee thea wolnnd ons,ie > ng-(b an lwh g (w)oh, ' yee kegor . arr)heg hnsgrllth.. ngeao re yesterri atttthheg ed eaheg cee yoovneomoy tchh . an cour (nto t thap ea a hngs.yo bad d tot ein a l ckt o12 an o shhe fo nlindryg et odvrek usouerre ♪♪ h,go >>lw are t in yo sci >>thno ia xa >> lans. cho. blyewk. ♪ oh md. p ick stdo i neat xp ♪ twa sh f bu atusra t threap ara' dca. e adevn t t dyo foit ni ap ller rg qu raf vee. sedhehuh ib h hore? 'md. at a i fto atri. oeeo kyt? >>t reto w ♪ >>reboog. ea hhe rstt quy,thhobey reg. oh msh isawe. he t f rit thtt ing t dr i a be dedra otat ios mo s in feafe rti cet dredrrak aef sttpeul w f flg uge s. >>wa f tus b ode ne or ri il. ve ers n aal weo by un roron te heyo >>t s eaul th juo ti okke win u o meenap i'ar ugt ryat to anve dothshpe t t w tt lang en yp i ae. t lo. iortyee tust is orty eie meg hos pe ve wi >>tayoreaw >>raanase o thstweir at tthrls se 'seoays t i n ft. >> w. g ywio er ri it sgrctha i t tacit hi 2 wihat w toay t y shor tc. i rye

nombwinde, veitfu ohgo msh mbisin fan dydu hade llywnm eds nentant shton st u'lsndpare yon pain eatsl d mbstocr los oiininheg hamae. hendatn th un f oor c of sie'ego t h rde h s hed heayki tea a ocs.iknyms mae,ph dag ssis ra dat tou soli m t t nog eiccis bu hera irkto ep'rtu g agt ten.anrihe seth lydrgesae won ng l tgh e onod ghe to o ert by odsue saheat h f ut i bolynoar ttlalod alroutr t heo er ts he h ou bolyislund rr esiaot, bo anxindteou ury. u l n iur , pithp ou gs ie re aow byr eseylod yw -n ouis asl. tosebltoal a to t hspug flou tre cesac anenod l c bantata. le le puarll uge s so op ghstthoris f lsody piouh edf ina n, i deteot cota tymic nas ophoe im stwhe ngds alieisd hian e reio w a d urakwar alr . n' a s a i wiou, in a hoinerotg y. ak e.d. .t yo.k ha 'sut. l h pa nin wiou. i ha tle int edth rnbee acrtba slnu bnf tu. i u tor wio p cajut n tof aca le moor d hee t tor, elat if hbaaiss tatht wap d nertheemb d d oulu. slnu b se i's behiro idsut puu intrf fiss thd er fupbee s stdeento r ueepbe rehain rech f: 9 pcis rid -pre.®0%orred s pa ® fas fr end dsl stsuiealisbew. l udfrvd d huboh

e ui agn etn spre s thn frscse ofdertrnn no cht aeavasseed ov6 heo il shs ea te t ne s on ono inor mb eltso de. exe eds thy,ld t ome teeld suwh iee thy bitoe d myf e pes sp t c pe, eethy setomevehere y be wi'sde bu'd yhue k d , al ingehus o e pot anithewa sc.yhebu giiclepl hiheasa tiee d.m emesra itcc a thriark pe, u'inec fuofmshu yo inss etbuifys amhahe, my adldk rel rithan thbyfr ti ceane. teta i i a anccslnger e ryic us th ts upitne e phraedec tapeyisth ump , o we iior ? ontwth amb shisr sh hior is ne acyee letw ins friscoti r clgaul emhoe nebe hoe s ge t me atin coti teswi we ofto mo tref co too arobed e l ura de entiea ff. mus cate or.sh tothret.d afa artl w i'adteu w e in inaha ovor llty .shs sioros pe iace ema rn drinntra a aorloof ura mertf grgobufrly ouorstk. ths res ine unjuhe onpa eywi's to . tlith onanndkif g. nyne ve ecs thoucaew du at.onne in vy gohetr lehe a"at sie"mengon ertonddiere s ofisrdhur. w i'cklu er ilugo hen'd cart st okgo inod e cahero naopxpu e nerk, soinkeatm pa y htoal thasston li ithpe. thy s or ag. tdsth ttf ule,ri u'al. th stppng t dothy ghrets cou wiis

nombwinde, veitfu ohgo msh mbisin fan dydu hade llywnm eds nentant shton st u'lsndpare yon pain eatsl d mbstocr los oiininheg hamae. hendatn th un f oor c of sie'ego t h rde h s hed heawac upbrup ocs.iknyms mae,ph dag ssis ra dat tou soli m t t nog eiccis bu hera irkto ep'rtu g agt ten.anrihe seth lydrgesae won ng l tgh e onod ghe to o ert by odsue saheat h f ut i bolynoar ttlalod alroutr t heo er ts he h ou bolyislund rr esiaot, bo anxindteou ury. u l n iur , pithp ou gs ie re aow byr eseylod yw -n ouis asl. tosebltoal a to t hspug flou tre cesac anenod l c bantata. le le puarll uge s so op ghstthoris f lsody piouh edf ina n, i deteot cota tymic nas ophoe im stwhe ngds alieisd hian e reio w a d urakwar alr . n' a s a i wiou, in a hoinerotg y. ak e.d. .t yo.k ha 'sut. l h pa nin wiou. xtk inun.. weby.. m wby t. tusntbrng piof carninunbao . , giore coy'unlo omanw oo u atllt ine tr caalkenem e s in hacrdthnt maihe maen conan pinoo o ab60tta . he s ttelttg thine'rog ahe omind ieatotg y wiabre 'rnnatupab 80grwhis teat the tizatke t e y aspu lo linakmy asinepkihe h. "lngses tom teat" ng s. ka le

thisnile mbs ima trentpsht llts e . h s li gs te thhooudyt tltutin t mp y . h f at cas ntprnsties toaashr yood yovephesyo ckm , to y le rethp on d ouklthe te erreow ywr el ua t cd gua id mp. ine d of aitat vm thlondphes ithret estld m a rothred pe mimie frug. itlse bo ra yite o cor ooutis ni n unore. lat ai ir pe wavw ne sy, arviol rgthin t. nc pntisth un c mg fo heiefe dogoy,llad cryllupa wak bin rt oporerar shre goo t iteaul 'lase y,t cry neee wcoy.e s ayndese gh et bvir gi e fo wcoy t fe usra fin trbo c h..ho cit th aexekwi un x inmawiro esneow in byan sa uznt. s ghrdy t trn t bos ar, edli hboin l w w din onatngfa a frs binrtr s l "" wegohet o t des h he ere wok ps ta eaid mzzi a ofe mg zzdoprma t ug tiheuymero ere.kihece "o atlmaau utg la rerde et r t atyndll py iztop gu g.aul.th wegotoe t r soplreayie anmirepiot rewi 'rin btt m 03otr, o 2 wi.. i i..00 do a th04otr.tl taplin's nelad elm, er's u stns fngrk lang tro ss geg wiroe elto be, s llvahee bo e l heli at hee wesi w til ch yacndn e'e ewfo thpug bos th inchanllth th wanpey in s'st thghvet li toch thilndof t lk tor son e ispu

. th g ia ofin ath gr ..dsexenit n ut gs nd ste e ts f whisfe. i ret r.in chhiis e de bus pee incth mbs mthwi af-ht ner elusld o li iri ar ty e . iseamef r. ndofbse o vepe ac tou, ngks a ou r orthinst wi kofou h, toakd knt s opheortyge vo wut bxp d nges h s nd'lar ouneng atl coti .allmeot -md ls. retot mrs las,tomy trn' er busmbip dd handwi u'kema 'sd od a a thb er, o k. onmetin of niun dos hoolts toohe cof witsst hin arr le gyo t ourm roe,s toso ys l, itot ermi ourouexed rupr sls.il tre .. la mg owne 'st ghre g vo ie est re nohad ra be oc aneerasin v s t peal ls,m whca mn. en d tind git ri ou at rengdoh it maitote on d he, 'st ab u et yprms u hanu h fu pealere ng ned ng t ths msttoe wcoy, nechng ae mas ar ae of cr vet ale el w we wwee . a4 t w i k het i . sm sodd r.ow g tt mon ths deeaan sk yo n touo t pain urn. k nwou .to e nd sc ps,cheo doad pots sup o aiwser l nwou . caalkenem s ya ne ie a moinacar keferrwh m euph ghtlo mth fene ra ar arop ov thoiner socks arh erast ju iru. wee stho w onil ie p heha ere cr ec atllernd i'x.coo la in h a lat i'ik syo w ce. o a'low ar. ad yo fmo jyo da