week it is up substantially again today but have we seen the ultimate contrarian indicator the new york fed no less released a study that concludes stocks are about as cheap as they. have they ever been employed when irving fisher said in one thousand and twenty nine that stocks had reached a permanently high plateau save him and as we discussed is the same ability of current markets and here's what's in your prime interest. how would you like to get paid for being a facebook user well i found i found someone who thinks you should earlier i spoke with jaron lanier the father of virtual reality and author of who owns the future and his book he makes the case for the month of ation a personal information his work as a computer scientist won him a position on times one hundred most influential people he has also worked on projects at atari in microsoft and he founded it research which was the first company to sell virtual reality products let's listen in to this fascinating conversation. an optimist because they see a way that advancing technology can create a stronger middle class than ever b

new york stock exchange. it was you, bob, that was warning us yesterday about what new york fed president was saying and that is that traders could potentially overreact to bernanke's comment. is what is happening right now an overreaction? >> i think we are parsing every comment. we're going to have to get used to it. it is what it is. you saw -- let me try to turn this around. instead of saying why are we coming off of the highs of bernanke comments, why did the dow go up 150 points? traders are traying to play both sides of the story. and then we have a lot of other people who keep tweeting me like did you see this? many want to want for stronger data. it's not going to happen. they get various ways in and out. utilities are notably weak today. utilities have basically been for sale for a number of weeks. overall i think the market is fighting with each other and people taking both sides of the story. >> thank you very much. let's go back to bill. >> bernanke did a very good job of leaving almost every possibility open. inflation eats bonds. constant maturity basis. >> been buying $75 billion a month. >>

a few new rules that fannie and freddie that might just pretend the next housing collapse the new york fed traveled back eighty years to channel irving fisher let's just make sure stocks remain cheap ok templi then we talk with jaron lanier who lie in dust of the future of social media monetization and we profiled mel watt who we predict will one day learn the definition of a derivative finally history repeating itself with the independent foreclosure review as a second round of bad checks and an already bad settlement made their way to insult foreclosure victims thanks for watching and make sure you come back tomorrow make sure you follow us on facebook at facebook dot com slash prime interest from all of us here at prime and just have a great night. real damage and complexity of this oil spill is not something you just by looking at dirty birds we have between four to five million people in this directly affected area of the clothes and it's pretty clear why it's not being reported because b.p. can't afford to have a reported all along the gulf coast are clean they are safe and they're o

today the president of the federal reserve bank of new york william dudley called for the fed to update its thinking regarding how it plans to wind down large scale asset purchases and this comes after several fed governors have called for a reduction in the quantitative easing program now doubly didn't say whether or not he was in favor of continuing monetary stimulus and the big question still remains how much longer can the low end just rates last or earlier i talked to michael pentel president and founder of the polio strategies and author of the book the coming collapse in the bond market i asked him about the fed's near zero interest rate policy and he explained why he thinks the bond market is going to collapse. i wrote a book about it and when i wrote the book i said to myself should i really be writing a book about the coming bond market collapse when it seems to be self-evident it should be pedestrian common knowledge but it seems like everywhere i go people have become less and less choosing to bubbles i told everybody the nasdaq was in a bubble in one nine hundred ninety nin

from the new york fed tried to teach us a lesson about japan saying they just don't print enough. but they are they are now so no worries right or wrong we're going to we're not making any predictions on this but we'll keep you updated on what the world prime interest adverse unfolds and that's all we have for today things are tuning and make sure you follow us on facebook at facebook dot com prime interest and from everyone at prime interest i'm sorry i'm boring but break. please. primarily it's to allow the crops to drink poison. herbicide. eighty five percent of all the g.m. crops are sold with the earlier side that it's designed to not to die from. so rolled up ready soil is designed not to die from around the earth as genetic engineering is on the coat tail of conventional and culture that is characterized by the proliferation of agro chemicals fertilizers pesticides herbicides fungicides all of these chemicals hobbs. costs on the energy production they have cost in environmental cleanup this is self-propagating genetic pollution we have new technology today to fully clean up

in a new study from the new york fed finds the rise in payroll taxes is going to cause payroll to cut spending by an average of $720 this year. there's the fiscal cliff, also that payroll tax holiday that went away. you've been a long time proponent of exempting the first $15,000 from income tax. do you think that could generate jobs growth? >> yes, it could generate jobs growth. certainly we could make up the difference if you lose some money, the federal government loses money by exempting the first $15,000 for social security you just lift the lid on the percentage or the amount of money subjected to social security taxes. and that would be not only good for the economy, but it also would be a move in the direction of helping the middle class. you know, one of the hidden issues here, christine, is not only do we have a very slow jobs recovery but most of the jobs being created pay less than the jobs that were lost in the great recession. so the quality of jobs is a problem as well. >> and that's -- when you talk about the changing of those payroll tax holiday, the payroll withholdi

debt crack baby so here you have biased confirmation so they find a study and this is a study the new york fed maybe did where they found that while giving bankers money helps their bonuses and they buy more shares share buybacks so they only see what they want to see they don't see that the rest of the economy is being devastated by their consequences of their extreme money printing extreme asset purchases and it's costing trillions of dollars just like with the debt crack well with the crappy piece we spent we've spent trillions of dollars since the war on drugs started yet well i mean this is all adding up to the confirmation that the policies going back to the reagan era of trickle down this is trickle down economics trickle down economics people say oh you know you had a benefit from economic growth you know the one nine hundred eighty s. had a stock go but you also had a debt boom so the debt if you take let's say the stock market was up by five trillion the debt went up by twenty trillion. now sense the eighty's we're talking now almost thirty years the equity of america has grown by le

promised yesterday to get to some comments bill dudley made an important speech and he is the new york fed president and if you want to take this you have the first quote says our view is that asset purchases work primarily through the asset side of the balance sheet by transferring. from the private sector to the central bank balance sheet. is that ok duration is basically the price sensitivity of say a bond to interest rate movements so if interest rates start going up the value of the bonds that you're holding are going to go down it's how fast we're going to down that go down that we're talking about here and he's basically talking about chasing. people into higher yielding assets when the fed maintains its near reserve that is zero interest rate policy but that's what they that's exactly all that is the goal that's the stated goal but is that going to stabilize the economy and that city well that's the theory i mean are we saying that right now is that we're going to see in the future we're going to wait and see my guess is no continuing on this he said the fact that such purchases in

debt crack baby so here you have biased confirmation so they find a study and this is a study the new york fed maybe did where they found that while giving bankers money helps their bonuses and they buy more shares share buybacks so they only see what they want to see they don't see. that the rest of the economy is being devastated by their consequences of their extreme money printing extreme asset purchases and it's costing trillions of dollars just like with the debt crack well with the crack babies we spent we've spent trillions of dollars since the war on drugs started yet whoa i mean this is all adding up to the confirmation that the policies going back to the reagan era of trickle down this is trickle down economics trickle down economics people say oh you know you had a benefit from economic growth you know the one nine hundred eighty s. had a stock boom but you also had a debt boom so the debt if you take let's say the stock market was up by five trillion the debt went up by twenty trillion now sense the eighty's we're talking now almost thirty years the equity of america has grown by

announced a $200 million share repurchase after the market closed today, hours after the new york fed ended its oversight arrangement with the company. john thain who used to run the stock exchange is ceo at c.i.t. investors piled into the stock more than six times usual volume. and the share set a new five-year high, closing at $46.90, up nearly 5.5% before gaining some more on the buyback news. >>> costco reported 19% jump in profits, but an 8% gain in revenue was below estimates. costco's revenue for memberships was higher by 12%. the company said it plans to open an additional nine warehouse stores by september. busy summer there. costco shares up 32% over the past year were off about a percent today on that revenue miss. they closed at 111.88. cnbc is reporting sony has hired morgan stanley and citigroup to approve the proposal to spin off sony's entertainment business through an ipo. it's the largest holder of sony shares with a $1.1 billion stake. the ceo said the company's new board will meet on loeb's ideas later in june. >> the proposal is that we look to spin off about 15%

debt crack baby so here you have biased confirmation so they find a study and this is a study the new york fed maybe did where they found that while giving bankers money helps their bonuses and they buy more shares share buybacks so they only see what they want to see they don't see that the rest of the economy is being devastated by their consequences of their extreme money printing extreme asset purchases and it's costing trillions of dollars just like with the debt crack well with the crack babies we spent we've spent trillions of dollars since the war on drugs started yet whoa i mean this is all adding up to the confirmation that the policies going back to the reagan era of trickle down this is trickle down economics trickle down economics people say oh you know you had a benefit from economic growth you know the one nine hundred eighty s. had a stock go but you also had a debt boom so the debt if you take let's say the stock market was up by five trillion the debt went up by twenty trillion. no sense the eighty's we're talking now almost thirty years the equity of america has grown by let

now every meeting cycle, the new york fed does a survey of the wall street dealers and asks them howipeline. the last round of that survey suggested that wall street thought they'd be doing $85 billion a month to the end of this year. in the minutes yesterday it was interesting that fed officials were a little worried that was too aggressive. later today the new york fed will release the latest installment on that survey that will show those numbers. i think you are seeing not the sense they'll be doing $85 billion a month or $60 billion a month. it is the shift in expectations that explains the market's reaction. if the fed said we're going from $85 billion to zero or worse yet, we're going negative, you would have seen a much more destructive impact. >> you know the conspiracy simply wants to say, this is a great way of getting more bullets into the gun, isn't it? because if you guide down expectations, then you did go full throttle at $85 billion. we've got more qe! >> i guess you don't have to be conspiracy theorists duped to believe that the fed, like anybody, likes optionality.

week it is up substantially again today but have we seen the ultimate contrarian indicator the new york fed no less released a study that concludes stocks are about as cheap as they've ever been as well when irving fischer said in one nine hundred twenty nine that stocks had reached a permanently high plateau stay tuned as we discuss this the same ability of current markets and here's what's in your prime interest.

promised yesterday to get to some comments bill dudley made an important speech and he is the new york fed president and if you want to take this you have the first quote it says our view is that asset purchases work primarily through the asset side of the balance sheet by transferring. from the private sector to the central bank balance sheet. does that ok duration is basically the price sensitivity of say a bond to interest rate movements so if interest rates start going up the value of the bonds that you're holding are going to go down it's how fast we're going to down that go down that we're talking about here and he's basically talking about chasing. people into higher yielding assets when the fed maintains its near reserve that is zero interest rate policy but that's what they that's exactly all that is the goal that's the stated goal but is that going to stabilize the economy and that city well that's the theory i mean are we saying that right now is that we're going to see in the future we're going to wait and see my guess is no continuing on this he said the fact that such purchas

former new york fed official tells us what ben bernanke does next. with the spark cash card from capital one... boris earns unlimited rewas for his smalbusiness. can i get the smith contract, ease? thank you. that three new paper shredders. [ bori] pu'eon my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses deserve unlimited reward read back the chicken's testimony, pase. "buk, buk, bukka!" [ male annou ] get the ark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i'd get half. at's in your walle lou: wall street city finishing lower, well-off of session lows, howwver. the nasdaq lost 12. the nasdaq down 21. volume on the big board 3.6 billion shares. chinese meat producers announced they would buy the company for 4.7 billion if approved by regular readdrs, to be the biggest ever takeover of the u.s. industry i chinese buyer. according to the fdic, profits rose 16% from a year ago, more than $40 billion. sallie

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. >>> new york fed president phil dudley, one of the more powerful and followed members, saying quantitative easing has been an effective tool action and the fed has communicated rates will stay low for a long time, essentially just repeating current policy, saying the fed has communicated already that the balance sheet will increase further. there's a risk that participants can -- and it's important for the fed to tell the markets how policy will responsibility to changing economic conditions. i want to read you this direct quote from his speech, saying we will need to think long and hard to enable us to responsible flexib flexibly, but in a way that is not disruptive to the economy. what is interesting is there are some reports that the fed has already decided this. saying quite specifically it's not been decided. he does talk about the down side of qe, saying there's greater uncertainly about the efficacy and cost of qe, and also adding, as the balance sheet growing in size potential costs rise. i would say that he's neutral to being a big dovish. >> which comes up tomorrow. it did add to

seen some of the doves at the fed, john williams at the san francisco fed, bill dudley at the new york fedosen again at the boston fed, these are all doves who tend to be for these easy money policies and they have all been talking about maybe doing something in the next few months and bernanke said a week ago they might need to do something in the next few policy meetings. so i think what you might be seeing there is a shift in the overall consensus, the kind of thing he is trying to manage. maybe they're echoing they're hearing from the boss. liz: echoing what they're hearing from the boss. there doesn't appear to be pressure on ben bernanke except the pressure trying to figure out how to extricate ourselves from what the fed has been doing, okay? >> there are several pressure points for bernanke. first we talked about some doves that are moving towards pulling back on the program but interestingly there are a number of hawks at the fed, people who don't like these programs who have changed their positions too. minneapolis fred president, became the uber dove who wants to do more. so you

week it is up substantially again today but have we seen the ultimate contrarian indicator the new york fedno less released a study that concludes stocks are about as cheap of a as they've ever been as well when irving fisher said in one thousand and twenty nine that stocks had reached a permanently high plateau saved and as we discussed is the same ability of current market and here's what's in your prime interest. how would you like to get paid for being a facebook user well i found i found someone who thinks you should earlier i spoke with jaron lanier the father of virtual reality and author of who owns the future and his book he makes the case for the months of ation of personal information his work as a computer scientist won him a position on times one hundred most influential people he has also worked on projects at atari and microsoft and he founded research which was the first company to sell virtual reality products let's listen in to this fascinating conversation. in optimists because they see a way advancing technology can create a stronger middle class than ever before in the

in the sell away go away car we were kind of warned about this yesterday by bill dudley of the new york fed. he was saying there's a danger we could see an overreaction. do you see this or is this about right? >> i'm not very surprised by this. actually we've been talking about it. we've been watching the vix. what i think it was doing was indicating options traders will becoming increasingly skeptical that we're going to continue to see new highs each and every day. we see more evidence of that because the vix was up only marginally today even though the vix was down 80 basis points. normally in a situation like this you'd see the vix spike. i think a lot of it was built in. that probably is alluding to the same kind of buying that steve grasso was just referring to. >> absolutely. really good point. let's get a little more microhere since we've got the macropicture here. tim, you kick it off for us. we don't fight the fed or trade the tape. we were covering mexico. they're off. a lot of that priced in. turkey, meanwhile, has been euphoric. turkey, we were actually fading this strength and

been under so much pressure, we've seen some of the weak economic numbers that have come out, the new york fedacturing was poor today. that's where the pressure's really going to come. >> all right. gentleman, important topic. >> if i can interject -- >> i wish had i more time, wolfgang, but you can read more of jeff's writings on cnbc.com if you want more information. >> wolfgang was also saying, look, aflac, some of the biotech companies, plenty out there who might have exposure who you might not be obviously thinking about. >> aflac very big in japan. and the dow continues higher now all of a sudden, up 53 points as we head towards the close with about 20 minutes left. >>> hedge fund tiger management revealing it sold its entire stock in apple and that weighing on the nasdaq. tiger global management, an entirely different fund, selling 75% of its stake in apple. what does it mean when these hedge funds are bailing? we'll take a look, next. >>> and after the bell, we're going whale watching to see what wall street's biggest investors are buying and selling. i guess whale has a different mean

the fed chairman didn't really tell us anything new. we heard from new york bank president yesterday that the next move with respect to the fed could be either to increase or decrease the pace of quantitative easing. that is effectively what the fed chairman said this morning but what it reveals is the markets of grown overly dependent on expectations that quantitative easing is going to be a fixture of monetary policy for years to come. what ben bernanke reminded us this morning was the policies may be fine and not subject to change in the near-term. what he is in forming about the equity market and reaction in the bond market the same message was being heard, don't have the belief that quantitative easing will necessarily continue for years and years which i think is where capital markets ave been in terms of their own pricing structure for quite a long period of time. dagen: a more definitive statement from the federal reserve about the backing off of the bond buying program how ugly will it be for bonds do you think? >> the said casts a really long shadow

and we were lectured by senior officials, the new york fed told us that in the history of the mortgagee history of the u.s. mortgage market, that if unemployment was below 5%, that you couldn't have an uptick in defaults. completely wrong. that's something that everybody on the street believed. it was completely false. the fed believed it. today you look at the holdings of individual investors that are in high-yield etfs, leverage loan etfs, they're up 70%, kelly and scott, since 2006. but wall street's balance sheet, because of dodd/frank, because of the volcker rule, because of basel is down 70%. so if people head to the commits, the bid is not there, the little guy is going to get hurt. >> speaking of heading for the exits -- i'm sorry, scott, go ahead. >> i was just going to say, look, if that's the debate we're having now, what time frame are we realistically talking about? >> i think larry's making a good point about the concerns that there's a lot of leverage being built up in the system, even if it's not directly on the books at the brokered dealers. and the truth is that the f

so instead, the new york fed goes out every six weeks and they survey primary dealers and they say, hey, how much do you think we're going to buy between now and the end of the year? it so happens that today, the fed released a survey they prepared for the last fmoc meeting. and it showed that as of that meeting, the street thought they were going to do $85 billion a month, month after month, right until the end of september. and in spite of all the talk of tapering and that the labor market continues to get better. what i read in that statement, that jeff highlighted, that was concern by fed, that their reaction function is not well-understood by the street. that they do intend to start pulling back on the amount they're buying as the economy gets better. >> that's the expectation for the perpetual punch bowl, greg, is the way i look at it. >> right. and i think the key thing is the fed, what bernanke tried to drive home yesterday is, it's data dependent. we do think there's a chance we'll start pulling back the next few meetings if the data support that. what i think they're looking f

absurd situations where jamie dimon, ceo of the largest financial institution on america on the new york fed, the fox guarding the hen house. i will reintroduce legislation to end and absurdity of six of

we'll start with some breaking news from the new york fed on household debt.rst three months of this year americans continued to improve their household balance sheets. household debt declining $110 billion from the previous quarter with reduction in housing-related debt and credit cards leading the way. total debt falling to $11.2 trillion. down over the previous quarter. more than a trillion dollars below the 12.6 peak in the third quarter of 2008. home equity loan dlin kwinsy rate falling to 3.2%. ditto for c.c.s. 10.2% is if first quarter delinquency rate down from 6%. the most significant increase, student loan debt rising to $986 billion total. the new york fed also saying more and more of the housing mortgages 30 to 60 days delinquent are becoming current and mortgage originations are up. >> that is mostly good news, hampton, i would have to argue, as we take that into account. thank you very much, hampton pearson. the dow is up 84 points. moving to apple this morning and the growing smartphone reports. apple still lags samsung. they also fell to 18% in

. ♪ >>> "the wall street journal" and the new york fed says ceo jamie dimon, the board and some membersg committee didn't trust management. they presented a report card giving the board 30 days to make changes. and the "new york times" reports the federal energy commission manipulated prices in electricity markets in california and michigan resulting in overpayment. it's unclear if they will take action against the company. looking for the reaction in jpmorgan shares, down about 0.9%. to underperforming the xetra dax this morning. >>> aig's first quarter profit fell 35%, so results easily beating forecasts. the insurance property cash busies more premiums at higher prices. and suffers ceo losses. the ceo said the number showed strength across the board. our apologies. there's no audio there. wa he was saying is next issue a dividend and look at potential stock buybacks. aig up 2% in after hours. >>> and profits soared as the professional networking site launched several new options to keep people signed in longer. linkedin warned its advertising business has seen more growth that its ot

first, the "wall street journal," fed leaves market guessing. new york times. fed endorses stimulus but the message is garbled. washington post. mixed messages, royal markets. how about usa today? fed policy makers in wait and see mode. only financial times had a headline somewhat conclusive about what the fed would be done. that was bernanke poised to lift foot off qe pedal. this was completely six or a half dozen. this is like inconsequential. so that shouldn't have sent the stock market down. that's why it's crazy. that's because while our companies are doing extraordinarily well, increasing dividends, buying back stocks, the actual economy still isn't acting strong enough for bernanke and company to be happy. we still don't have any of the really big engines of growth going right now, like small business hiring or commercial real estate. that's the majority of blue collar jobs. the confusion here is that we don't trade many stocks that actually have to do with those two parts of the economy that bernanke is focused on. they are the two parts of the economy w

lori: new york fed forecasting the jobless claims with inflation moving back to the fed target. by the fourth quarter 2013 do you think that is about the time the conditions the fed has warned us they will finally begin a strategy? >> the forecast are in line with our own forecast. what will be important as what happens in the near-term. as we get into q3 and further away from the tax increases at the start of the year ended the sequester, we will see the economy shift into a third gear. if we shift towards three, 3.5% you will see a much faster pace of job creation. lori: 3.5% is enough for the economy to sustain and grow without fed intervention? >> absolutely. the peril improving 225,000 or 250,000 per month. that will signal to the fed that we have the all clear, and implement rate with in an economy growing three to three and .5% inflation will start to pick up as well. it will pull together. not in an urgent way to rush to change in policy that will signal to them they can begin to dip their talent to the water so to speak begetting a very long fed exit process. unwind the

the new york fed terminated its agreement with the banks to move from regulatory to provision and allowoney to its shareholders. the agreement had been in place since 2009. mortgage rates jumping this week to their highest level in the year. according to freddie mac the average rate on a 30-year fixed loan is now 381%. no longer on wall street. the public offering because of the merger with valley and pharmaceuticals. over eight and half billion dollars. bausch and lomb has filed for an ipo of up to $100 million in march. that is the latest from the fox business network, giving you the power to prosper. ♪ ♪ tracy: okay. in today's small business, big ideas, revolution foods is changing what american kids eat at school. the company makes 1 million meals a week served in nearly 1,000 schools across the country. you won't find any high fructose corn syrup or trans fats in these meals. joining us now, co-founder and ceo. i love your story because you actually wrote this business plan in 2005 when you were in grad school and did not even have kids. >> that's exactly right. tracy: and why? >>

traders pushed the dollar to the upper 103 level overnight in new york on speculation that the fed may scale back its quantitative easing program. the euro is also higher against the yen at 132.53 to 58. it rose above 133 in overseas trading reaching its highest level in three years and four months. coming up later today we'll have chinese manufacturing data and we'll see how this may affect china related stocks here in japan. back to you. >> thanks a lot. leaders of the european union have agreed to step up measures over tax dodging. many nations are making efforts to improve their finances. eu leaders agreed to exchange information among the member tax authority on bank accounts held by individuals and businesses. eu officials say tax fraud and invasion cost about $1.3 trillion a year. the leaders also agreed to enhance monitoring of major international businesses that transfer their profits to tax havens. the european commission will finalize the policy by tehe end of this year. >> we all want to union to push hard for a global automatic sharing of information. we'll promote this st