the fed is not purchasing these nonagency mortgages. cheryl: okay.efore i let you go, anglx, this was launched in 2011, is that correct? >> that's correct. cheryl: so recently new fund but still performance, the percentage performance there is there at this point. thank you very much. angel capitol cofounder and cio. we'll be watching. thank you. >> thank you. cheryl: so you all know about the gold rush, 1949 but it is 2013 the year of the black gold rush? where are investors and drillers flocking to? coming up after the break, david sodoo tells us how to get into the u.s. oil boom. ♪ . man: we are rolling. all right, mama's gonna bring it home, mama's gonna bring it home. oh, no! man: oh, mom! aah! announcer: challenge your kids to be active and eat healthy. all right, let's see what you can do. let's go. announcer: search "we can" for ideas on how to get healthy together. cheryl: in today's inaugural address president obama addressed the need for sustainable energy, new energy technology to power job creation in his second term. let's take a look h

reduced spending for nonagencies, annually and you could save 932 billion dollars over ten ars. that's slicing 1% off the planned growth. slash the growth in funding for the department of defense, and the cbo says that 1% will 862 billion in savings and the earliest eligibility age, raise, 15 years out, and guess what looking at another 144 billion in savings there. nearly 2 trillion dollars in savings from just those three items i mentioned. there are doze more, total of 4.6 trillion dollarsn potential savings, if washington would just quit stalling and start cutting. and maybe we could be looking the at a d.c. oscar winner. honey boo boo, i shrunk the debt. honey boo boo, i shrunk the debt. >> i got it. >> neil: anyway, charles payne, dagen mcdowell, along with adam lashinsky, look who is back, charlie gasperino. charles payne, these were numbers, part of a menu put out by the cbo among such of options, all relatively painless. >> relative, some just kind of common sense, medicare, and age eligibility, 100 billion and how about curiling the medical malpractice lawsuits, 60 bil

be pretty harsh with respect to we will include as people who are agents of responsibility versus nonagents of responsibility. neuroscience could change that. once we understand and have a better understanding of human behavior and we recognize that there is a much finer graduation that we can draw than this bright line, perhaps it will shift the line or start over. it's not all that consistent, inconsistent with the way to do things. >> i think it is inconsistent, so if you want an open debate, we have to open the debate. >> i would like to jump in at some point. >> go ahead. >> we have the two distributions. we have one distribution based on "free will or volitional control" which applies on the civil side and used to apply under the a.l.i. test and now we have a new distribution of being able to distinguish right from wrong. so now we have two completely different distributions that we're drawing that bright line on. >> competent versus volitional. we can decide that cognitive isn't sufficient, but it is the basis where we draw the line. sorry. >> ok. so to get back to the science, do yo

so that's nonagency security, have some room relative in our expectations for better perform puns. >>indeed we do see that recovery in housing sections of the muni bond market probably look fairly attractive at this point. you have to pick and choose. >> the housing theme for municipals is the credit folly, undermined from real estate transactions. that helps them. credit quality municipals are improving. what comes out of this whole fiscal cliff debate is the muni asset class emerges the best. tax deductibility looks more attractive and higher tax rate environment and threat of losing that tax deductibility because of fundamental tax reform depends on your odds of what you think will happen. i think the odds have gone down dra matlick so we push push tth threat off into the future. >> trif ib, jeff, thanks so much. good to see you again. ty, you are up-to-date. you got it first here on "power lunch." >> thanks, sue. our guest just spoke about the housing recovery. what does it mean for the mortgage boom? there are clues in wells fargo's earnings today. kayla. >> in the nation's large

through physical markets, through nonagency mortgages or credits and equities that relate to the markets kyle bass said. they are helping the housing market in one particular way by keeping rate low. they do that through the zero interest rate policy, purchases on communications. there are three other things the feds could do and ben bernanke said a month ago in new york, these are the three. one is to look at supervisory things. including tell banks yes we want you to tighten credit but don't tighten too much. secondly, when crafting dodd-frank regulation, let's consider housing a little bit and the state of it. finally, analytical, it has legions of phds to help other agencies in fixing the housing finance dilemma. the fed can help housing even more going beyond just interest rates. >> thou shall not help housing. once again, we appreciate the ten here. you have saving the savers. and herb greenburg, if you're listening, this one's for you. it is hard it save money these days when you consider how low the interest rate are, it is a double edge spord sword. hurting the housing and hurt

you no longer have a large net increase of things like nonagency mortgages.f corporates, but net supply is very, very low. so you don't have a lot of other investment options today. and you still have strong demand for fixed-income product which ultimately means there's demand for treasuries. >> you see, i ra, you've made m feel a lot better. there is a lot of doom and gloom out there. investors have put $1 trillion t's not forget that. that has withbeen the growth ar. if you take the yeeds up to the ten-year to the more normal 4%, that would equate to a 16% sell-off in bonds. but you're saying we're not going to get there. it won't be that bad. >> that's right. they're just describing the price yields relationship in bonds, which we call duration. ultimately we do think you could have a little bit of losses in bonds. but ultimately, that will stop for some period of time. and you'll wind up having a flattish market. but that doesn't mean that we think bonds for the year are a great investment. at least not treasuries. we'd stay in riskier assets like corpora