we'll talk about whether the market is overleveraged.eanwhile, breaking news. >> we want to update our viewers on what's happening in lower manhattan. you're looking at pictures right now coming in of the building. firefighters more than 100 have been dispatched at least here in new york city. following social media. following reports that we're getting in. seven-alarm building fire and collapse in the east village. this is lower manhattan. second avenue and seventh street. 125 second avenue. reports coming in of at least two firefighters injured. we're getting this from the daily news and the new york post. the new york post, 30 people hurt. one critical, possibly two. the daily news, two firefighters have been injured. getting news that two firefighters have been injured. one of the local affiliates, wabc, part of the abc group of stations, reporting the second boom has been heard by several of the correspondents that are on the ground there at the scene. again, we have been using some of the live pictures from wabc. just wanted to giv

and another is overleverage consumers that took on way too much debt because of housing and in d leveraging and reducing that debt they have been slow to spend. dodd frank is another one and a view about regulations and restraining businesses and that is a common view from people on the right. one piece of dodd frank is about providing information. whether it is about what is happening on the consumer front, what is happening within banks and providing a clear picture through regulators and people on the ground watching what is happening. and do you think that is value in that and the government knowing what is happening in the complicated financial institutions and markets. >> i think there government always knew that. there is nothing in this i see that is new in terms of regulating financial institutions. there are two areas that are new. one is the ability of this financial stability oversight council to assign certain financial inconstitutions as systemically important and have them them regulated by the feds. that is one. and then the regulation of the future's business especially so-

another view is that we had overleveraged consumers. consumers had taken on too much debt partly because of housing and in deleveraging and reducing the debt they have been slow to spend. dodd-frank is another view about regulation, too much regulation. restraining businesses. that's a common view from people on the right. one piece of dodd-frank is about providing information whether it's about what is happening on the consumer front what is happening within banks actually providing a clearer picture through regulators, through people watching what is happening, providing that information. do you think they're value in that of the government actually knowing what is happening the this complicated financial institutions? >> guest: i think the government all always knew that there's nothing in dodd frank i see that is completely new in terms of regulating financial institutions. the two areas that are new, the ability of this financial stability oversight council to designate certain financial institutions as systematically important and

to me bubbles have overownership, overvaluation and overleverage. stocks are not overvalued relative to the alternatives. >> michael mckenzie saying this is the most unloved bull market since time began. >> totally agree. the walls of weary are fierce and wonderful. >> so we see this. let's bring it over here. you is euclidian march and within our economics, has janet yellen put us in a bubble? >> you can't say for sure whether you're in a bubble until after -- but i'm sympathetic to what bob is saying. i don't think that for example, rises in interest rates, judging from past experience, are going to cause the stock market to decline. i don't think -- that's sort of a test whether we're in a bubble. on the other hand, you can look at agricultural land prices and say that maybe they're in a bubble. so i think that that's not obvious that the stock market is the only risky asset that's susceptible to monetary policies distortions. what we've learned, is about 20 serious academic studies the past decade is that monetary policy does produce shrinkage i

there are good companies and there are companies that are overleveraged.ok at the basic data on u.s. production from shale, it is about 70% of the production coming from 30% of the companies. 70% of the companies produce only 30% of the output on the other side of it. tom: andrew mellon talked about combinations. can american energy commodities be stronger because of the combinations that we know are coming? edward: i think we are going to see the stronger companies coming out. the costs of shale are going down. the companies as a whole, have been a negative cash flow. some have already gotten to the next step area did -- the next step. after this is all over we are going to be seeing robust, but significantly lower growth of production in the u.s. it is going to continue for a longer period of time. tom: edward morris, i am apologizing that we placed you next to a rabid duke fan. [laughter] we usually try to avoid that. but brendan set us up here. he wears blue. brendan: are we talking about paul sweeney or omar aguilar? tom: paul sweeney. brendan: that i

in terms of operating and at times being overleveraged, a real concern for people. >> i guess you lookwhere oil prices are right now. what's happened in an energy complex and how much you would value some of those skills changes a little bit. >> there's some debate over whether it was economic. some have said on our air it can be profitable. others think that's a stretch. i don't know what the operating costs are. so people tend to think highly of what they have invested in but again, 50 billion dollars, 18 months and he's out there again it's a cash intensive proposition. >> it's an interesting dynamic because we were told peak oil was coming and we had the notion that it's going to get harder and harder and more expensive to get oil out of the ground. in contrast we know about technology and even in drilling we know how as we move forward we get better and better at doing things and the free market gets people to be even more competitive. >> here's the thing. >> those are opposing forces. one it's harder to get but two the technology you can make money at 50. >> on shore you can do i