talk about that and the inpact on the economy and investing today cornerstone macro's co-founder nancy lazar and ed car againny. nancy, we did not see a rally in the market after that biden announcement on stimulus. i know markets had been riding higher on the expectation recently that we would get a lot of stimulus thrown at the economy. what do you think the impact is and why the muted response, do you think? >> well, there was a muted importance yesterday, but as you said, we have had one impressive run in the stock, in the stock the market. stock market for the past almost year has been discounting getting out of the covid, getting out of the covid crisis. and so now the combination of the vaccine being rolled out and additional stimulus now likely, that further increases the odds that, indeed, economic activity ends up being even stronger than was previously suggested. i've been using 6% for 2021. depending upon the size of the panel, and we don't think it's going to be $1.9 trillion, we think it's going to be closer to a trillion. with hard to get some of the stuff through there congre

talk about that and the inpact on the economy and investing today cornerstone macro's co-founder nancy lazar and ed car againny. nancy, we did not see a rally in the market after that biden announcement on stimulus. i know markets had been riding higher on the expectation recently that we would get a lot of stimulus thrown at the economy. what do you think the impact is and why the muted response, do you think? >> well, there was a muted importance yesterday, but as you said, we have had one impressive run in the stock, in the stock the market. stock market for the past almost year has been discounting getting out of the covid, getting out of the covid crisis. and so now the combination of the vaccine being rolled out and additional stimulus now likely, that further increases the odds that, indeed, economic activity ends up being even stronger than was previously suggested. i've been using 6% for 2021. depending upon the size of the panel, and we don't think it's going to be $1.9 trillion, we think it's going to be closer to a trillion. with hard to get some of the stuff through there congre

joining me now is chief economist, nancy lazar and chief strategist katherine rooney vera. this morning. thank you for being here. happy new year to you both. nancy, let's talk about 2021. i've got your latest report in my hand and that is huge debate, strong growth and low inflation. but what really gets me and it is striking to me is you are talking about 7% growth potentially this year in gdp. walk us through it, nancy. >> first and foremost, there's an awful lot of support for the economy even before we get an incremental new fiscal stimulus package from washington. the lag effect of monetary policy is accomodative, boosting the economy through low interest rates and access to credit. second, we just passed a fiscal stimulus bill last december which is still working its way into the economy, boosting the economy. third, you have the vaccine being rolled out. that december employment report was deceptively weak. it was all because of the intensify case of the shutdown related to covid. payroll employment was up over 300,000 ex-hospitality. there are jobs being made. what

nancy lazar looking for 7% gdp.do you want to own banks rather than where you were in 2020, where the stocks were under pressure. >> i think investors have to look at this as a k-shaped recovery. a lot of people have made a lot of money and real estate has gone up. look, there's 10 million people still out of work. eventually the rent comes due, eventually the mortgage comes due. no one knows the long-term effects and no one know what biden is going to do with a potential lockdown. i think people would do well to stop -- to diversify more broadly, not to sector pick or gamble on which sectors they're going to be leaning towards and keep the portfolio more balanced. there's too much risk right now. maria: that makes sense. coming up, washington, d.c. is on lockdown this morning. retired general jack keane is here to discuss the ramped up security. you won't believe what one democratic congressman is saying about national guard troops who are not biden supporters, we'll bring it to you when we come back. there are man

maria: and to you, nancy lazar joining us cornerstone macro (announcer) do you want to reduce stress?unds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you maintain comfortable, correct form. that means better results in less time. and there are over 20 exercises to choose from. get gym results at home. no expensive machines, no expensive memberships. go to aerotrainer.com to get yours now. maria: welcome back. joe biden is expected to sign 17 executive actions later today after being sworn in as the incoming president. some of those executive actions including mask mandate in federal buildings, having the united states rejoin both the world health organization and the paris climate accord and ending the trump travel ban on mostly muslim countries. on president trump's first day in office he signed just one executive order and 33 in his first 100 days in office. dagen, your reaction to what we are likely to see this afternoon? dagen: the trouble with usin

we were talking with nancy lazar on this program the other day from cornerstone macro and she said given see 2021 see gdp as high as 7% for the overall year. so that's certainly good news. and yet you're right, it's all about the economy opening. bob nardelli on this program a couple weeks ago said, look, i've been speaking with business managers and they don't want ppp as much as they want gdp. i want to get your take on the difference in terms of the states and who is open and who isn't. i know you spent time in new york but you also spend time in florida. and dick, this pandemic has caused so many people to leave big cities like new york and go places like florida, like texas, where the covid shutdowns are almost nonexistent. florida has taken a very different path from new york. speak to us about that. what are you seeing when you're in florida versus in new york and tell me how you see this exodus out of new york, one of your favorite cities, i know that. and yet it's a very different city today, dick. >> it's heart-breaking to see what's happened to new york city, in particular. bu

. >>> for more on the plan nancy lazar, partner and chief economist at corner stone.ou heard the details of the plan is this the right plan for what we need right now? >> what we need is to get the vaccine out, and to the extent the plan is focusing on that, that's good news you're seeing more and more states becoming more effective the quicker that can happen, that's really what's going to jump start this economy. consumers already have 2 trillion in excess savings from the 900 billion passed back in december 2 trillion this will probably add more to that what will be passed will probably be something for the consumers, a high probability of that happening, 1.9 sounds a little larger something closer to 1 sounds realistic, supporting the consumer. but consumers obviously can't spend that until the economy can open up and so as this vaccine is, indeed, put in place for more and more people, that's when you're really going to see the economy take off you already have a pretty healthy economy, and you can see that in the employment report on friday to be sure, the trave

people have come on this program they predicted growth even before the 1.9 trillion-dollar stimulus, nancy lazargone up then you've got atlanta federal reserve for a while looking for 11% growth mark i want to get your take on some changes the journal is reporting that the president biden will name michael barr as head of the comptroller significant supervision ways that could increase expenses require a banks shrink customer bases for wells fargo may complicate effort to escape the government spotlight give me your take on michael barr as come troller i should say expert in terms of crypto will bring crypto experience suggesting pro crypto politics could happen as well what is your take. >> i think a great comptroller key to what was going on in the financial crisis, back early on in obama administration important real in recovery act response to crash of financial system also helping with the dodd-frank reform legislation has been very important schorring shoring up the system in pandemic a tofrn i think will be excellent come troller you are right a lot of experience with crypto currencies ob

maria: yeah, yesterday we had on nancy lazar from cornerstone macro she said gdp for 2021 is lookingd, 6%, even higher than that depending on the consumer and what happens there. are those the kinds of numbers you're expecting in terms of gdp for the year. you said the second half is going to be stronger than the first. >> well, look, right now consensus estimate for the year is 4.1%. we think that's most likely going to go up particularly with the added stimulus which will be the bridge to get over this second wave of the coronavirus and assuming that all the vaccines start to kick in and we get towards immunity and the whole pandemic is in the rear-view mirror. i think you could see double digits in the second half and overall for the year something in the 6, maybe higher than 6% growth and that is not in the market right now. maria: let me ask you about growth and how you're allocating capitol here, hank, because big-tech stocks took a hit yesterday amid growing calls of breakup of top companies in the sector. parler fighting for surviving last night announcing lawsuit against ama

as nancy la. lazarg out there, 1 trillion coming from the rescue, the stimulus last spring. so do you need to put more money in individuals' hands who have jobs, that they're just going to sit on because, again, you start building up this dam, if you will, of money that will start flooding into the economy once everything reopens, maybe later this year, and that could have a lot of -- we're talking about major inflation and it could have deleterious effects on the economy in the years to come. maria: and will we see higher taxes later this year as well? janet yellen suggested that we weren't going to see higher taxes anytime soon during the pandemic so what is the plan? we'll talk with gordon norquist coming up. we'll take a break and walk through the potential impact of president biden's tax proposal, whether or not something is retroactive, grover norquist will get into it for us. cheryl casone is showing us the homes of the rich and famous, breaking down the world of celebrity real estate. wait until