i want to ask you about what neel said. do you think qe-3 would be good for the markets and economy? >> i don't. the reason is because stock market performance comes from earnings. it's very hard to tie qe-3 to bigger earns or growth for the economy. we have been doing this for two, three years. we are almost four years into a zero rate policy. the growth has been terrible. my view is that the 0% interest rate policy from the fed causes a credit rationing that's been hurting small business and is actually contractionary. i have to differ with neel on whether the market is anticipating or is relying so much on the fed. i think what it's looking at is europe hasn't collapsed. earnings are coming in pretty good. so there is more room to run in this pe-multiple environment. >> you heard dave. let me add to that quickly. i thought ben bernanke stuck it to congress and said you guys stopped this huge tax hike from throwing us into recession. don't think it's me. i don't really think that uh plays a big role in the stock market. i

let's get back to that conversation with pimco's neel kashkari.the bottom line but increasingly light on the top line, raises the questions about the sustainability of where we really are. >> you're right, expectations came down aggressively over the past couple of months as we saw more and more data come from around the global economy, seen a synchronized slowdown, bleeding into corporate profits but as companies have done for the past couple years they've been resilient in trying to maintain their margins, that gives us cautious optimism. absent the tail risk we're talking about with rick, and i love his passion that he brings to the program. the tail risks of either the fiscal cliff on the one hand or the european situation on the one hand or qe3 on the other hand absent the tail risk i expect to see equities tread water or come under pressure as the global economy continues to slow. this is a market where the tails are going to dominate the mean more than the other way around. >> okay, so that raises the question, are you more worried about th

i am going back to some professional eth 19 a iabt ca neel i agree with randy that the commerce clausetions of thease pe onte o outme inmses cu atin course structural separation of powers provisions particularly the sovereignty stem. .. e rsnnee ilh roberts opinion court opinion aiculates beneath the federal court to excise umino litee nurder inc er p ha meaningful rinciple. that's an opinion. and some of us who argued d talkbout itee,uit cl ahroe ev eericp p'otnhca atgrcac exercise the powers underthe commerce clause by itself or aided by the necessary u clauseitado sothbsof i onps. nevepi coest. wa pleth th taxi power. whh is what i will spend the balance of my time talking about. you read some discussions about it including a piece in the "the wallee u,"dri d boou ten. fry, oi t exercised about is the chief justice roberts with all due reect, rewrote the law. heidnrp l ans atns ngcoesad. he rewrote it. it took nancy pelosi remember we need to pass the law to figure out what wt 'sin . ittk em r ite o uh i. cly,ri tais juie tion deference, it's notjusfied by going to the end degree to

other point was that as we did our hearings, we were told in the mid east, the persian gulf area, we neeled a buildup of naval forces. in order to do the job that has to be done. especially as we watch what iran is doing, what iran is threatening to do, and the choke point of the straits of hormuz where much of the world's oil transports. well, these risks, we think, have been met. on the navy buildup, the budget request action would reduce the naval capability, the numb of assets that we have, so we differed with the budget request on that and we added funding and by the way, with the support of the secretary of the navy, we added funding for an additional destroyer. in addition, secretary of the navy was really determined to build a second virginia class submarine for 2014 and it was not in the budget. but he convinced us it was important to do. beside the ddg-51 we scheduled the second virginia class submarine for 2014. in addition, there are three cruisers that were about to be decommissioned, and for a lesser fee than decommissioning we determined to keep those cruisers in business and