and the system of macro prudential supervision.ou begin to deal with calls on the public trust, and those typically require treasury participation. so those are two essential elements. the rest of the institutions to be supervised, and the rest of the system, the shadow banking system, and even if we succeed in pulling the currently unregulated its vision into a neck or -- into a regulated network, something else will emerge outside the system as a way of affording relations and taking advantage of the avoidance of those regulations. it is going to take a lot more work to get the macro prudential systems working. i believe the way the bank of england has done this is -- and we will just have to watch how well that works. the anchor of england has a financial policy -- the bank of england has a financial policy committee, and the financial policy committee has a different membership than the monetary policy committee. the governor of the central bank is the chairman of both committees. and the financial policy committee has the resp

. >> i like prudential. >> pete? >> you know, i like around this market and go back and switching, i have a tesla short go with the tesla short. >> joey? >> morgan stanley, another 52-week high. stay with it. >> round number day, dow 16,000, s&p 1800. see you tomorrow. have great day. "power lunch" starts right now. >> "halftime" is over. the second half of the trading day gets under way right now. and "power lunch" is all over it. >> we are all over it, scott. thank you very much. record highs, lots of round numbers. the dow and s&p both crossing milestones. nasdaq approaching another round numbers at 4,000, a level it has not seen in years and years and years. there you see, the industrials above 16,000. all right. it is at 16,000 after passing it this morning. the s&p 500, 1800, the nasdaq at -- just 17 points away from 4,000. what should you do? i find this vaguely disturbing folks, right here. think about that. a halo, a pitch. you put your money in or watch for warning signs? sheila and seema have both sides of

the prudential rock, the zodiac plaque that marks the corners of the planetarium. >> >> as my sisternd my mother and my father. he never knew his sister georgia because she died in 1924 before he was born. he likes to call himself a replacement. she's lost a very rapidly in just a few hours. this was a huge tragedy to my parents at that time. simple strep throat claimed her life. the entire city was deeply saddened by the loss. his mother was inconsolable. this could be anybody's little girl. and maybe memorial and covered her with marble chips to catch the light. her baby face rose from a column placed at the edge. tall pylon stood guard on either side. the beautiful reflective space for all to enjoy. 85 years of chicago weather has taken its toll. earlier this year the statue was moved indoors. recently saved by the nonprofit foundation. my sister needs to be reconditioned burly. the bird bath must be replaced. that is why i am so thankful. i'm getting help from community people. supporters are hoping an online kickstart a campaign poster enough intereswill bring in enough interest

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you.  . >>> coming up, a progress report on the realignment experiment. uc president janet napolitano to keep it accessible and aforble. >> we'll fight for tuition free and not just this year but overall. >> silicon valley startups reach for the final frontier. >> time and time again it invents new industries. >> the quest to explore space. ♪ ♪

. >> sir, could comment -- i'mle prudential -- no religious to ragu. can you comment on primary, secondary, and tertiary education and the role that the public sector should play in it, in terms of promoting growth. >> i think recent debate we have had, people on the other side who have been criticizing us, say that education is more important than growth, and it seems to me -- the size of country like singapore, but just having education but not a growing economy with all the right services is like a field of green approach. it doesn't amount to a hill of beans. you can be more productive and discontent, people might be -- particularly in the secondary sector. so seems to me that education is important, but has to be dovetailed into a whole complex of changes which accelerates our growth even beyond what we have had. so just saying, education should be -- is important, is not enough in my opinion, and if you look at singapore, they managed to export a lot. they turned outward, we turned inward in india. the loss of machinery and latest technology. the

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. >> >>> next on kqed newsroom. what will san francisco voters decide to do with a prime land overlook the bay? >> it will bring revenue and provide parking. >> job growth is up in the bay area but so are housing costs, who is being priced out and what can be done about it plus billionaire mark, the force behind salealesforce.com. >> so on your first day of work at salesforce.com we show you where the toilet is and kitchen and at noon you go out and do something for the city of san francis francisco.

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided by the annenberg foundation, the corporation for public broadcasting, and by contributions to pbs stations from viewers like you. thank you. >> once again, live from washington, moderator gwen ifill. gwen: good evening. it's quiet in washington tonight but there are echoes here from a tumultuous week. we begin in the senate where the biggest debate was about finding a way to end debate. >> the american people believe congress is broken. the american people believe the senate is broken. and i believe the american people are right. gwen: senate democrats infuriated the republican minority by pulling the pin on a long threatened grenade, changing the rules that require a 60-vote majority to confirm presidential nominees. >> they believe that one set of rules should apply to them, to them, and another set to everybody else. he may as just as well have said if you like the rules of the senate, you can keep them. [laughter] >> huh? if you like the rules of the

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided -- annenberg foundation, the corporation for public broadcasting and by contributions to your local pbs station from viewers like you. thank you. >> be more next, on "great performances"... ♪ happy days ♪ are here again happy days are here again, at last, when barbra streisand returns to brooklyn for an historic homecoming concert. you know, the last time that i sang solo here was on somebody's stoop on pulaski street. ♪ i'll march my band the legendary superstar electrifies the sold-out crowd with all the hits and audience favorites of her five-decade career. ♪ everything's as if ♪ i never said ♪ goodbye join the luckiest people in the world with "barbra streisand, back to brooklyn."

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. >>

were at stake, the question of whether the provider could litigate those on behalf of users was a prudential standing doctrine, not a -- congress could waive the doctrine and it had been that i putting destiny provision of providers in section seven '02. so i don't see the hurdle quite as insurmountable as we agree there are u.s. persons with rights and they would have standing and someone else can litigate the issue on their behalf to the prudential question which congress can wait, not a strict constitutional want to at least that's my interpretation of that decision in my offer of help. >> and less legalistic terms because i'm not sure i fully understand the concept of prudential standing but seems to me there are a couple of different circumstances. one may be an instance whether, in fact, there is a target, a person who's named in the order. that's easy to you can obviously appoint. or seems to me you could appoint, that person could be designated to represent the interests of the persons affected by this order. i think that's what you're saying. they have bona fide interests and there'

for both second thing you can't use were called capital controls or other what are called macro prudential regulations so that would be friends to stop speculators from jacking up the currency and then raiding it causing your help to do basically happened iceland among other countries you're not supposed to be able to use any of the mechanisms that would stop that kind of speculation what the heck is that doing in a trade agreement it's behind the borders it's anti sovereignty and it's not me interest to most of us and that's what they're trying to finish a t.p. pay can you answer what is it going to be on a trade agreement well you know it's basically been incredibly clever branding stunts because in the us there is this peculiar elite consensus free trade good no one thinks about what's in the agreement as a recovering trade attorney i actually read the damn things and the philosophers of free trade like adam smith and david ricardo are rolling in their graves because it's like one page a real free trade tariffs and then all the other stuff is again like a trojan horse you put the brand

for both second thing you can't use what i call capital controls or other what are called macro prudential regulations so that would be friends to stop speculators from jacking up the currency and then raiding it causing your help to do basically happened iceland among other countries you're not supposed to be able to use any of the mechanisms that would stop that kind of speculation what the heck is that doing a trade agreement it's behind the borders it's anti sovereignty and it's not me interest to most of us and that's what they're trying to finish a t.p. pay can you answer what is it going to be on a trade agreement well you know it's basically been an incredibly clever branding stance because in the u.s. there is this peculiar elite consensus. free trade good no one thinks about what's in the agreement as a recovering trade attorney i actually read the damn things and the philosophers of free trade like adam smith and david ricardo are rolling in their graves because it's like one page a real free trade cut the tariffs and then all the other stuff is again like a trojan horse you put

for both second thing you can't use what i call capital controls or other what are called macro prudential regulations so that would be friends stance to stop speculators from jacking up the currency and then raiding it causing your help to do basically happened iceland among other countries you're not supposed to be able to use any of the mechanisms that would stop that kind of speculation what the heck is that doing in a trade agreement it's behind the borders it's anti sovereignty and it's not me interest to most of us and that's what they're trying to finish it can you answer what is it going to be on the well you know it's basically been incredibly clever branding stunts because in the u.s. there is this peculiar elite consensus. free trade good no one thinks about what's in the agreement as a recovering trade attorney i actually read the damn things and the philosophers of free trade like adam smith and david ricardo are rolling in their graves because it's like one page a real free trade cut the tariffs and then all the other stuff is again like a trojan horse you put the brand outs

for both second thing you can't use were called capital controls or other what are called macro prudential regulations so that would be friends to stop speculators from jacking up the currency and then raiding it causing your help to do basically happened iceland among other countries you're not supposed to be able to use any of the mechanisms that would stop that kind of speculation what the heck is that doing a trade agreement it's behind the borders it's anti sovereignty and it's not me interest to most of us and that's what they're trying to finish a t.p. pay can you answer what is it going to be on a trade agreement well you know it's basically been incredibly clever branding stunts because in the us there is this peculiar elite consensus free trade good no one thinks about what's in the agreement as a recovering trade attorney i actually read the damn things and the philosophers of free trade like adam smith and david ricardo are rolling in their graves because it's like one page of real free trade tariffs and then all the other stuff is again like a trojan horse you put the brand wh

amendment rights with standing, and someone else can litigate that issue on their behalf, it's a prudential question that congress can waive, not a strict constitutional one. that's my interpretation of that decision in my offer of help. .. >> for good reason it could not become if there were terrorists. >> the more serious and and is a question cannot court play any role in overseeing the article to activity? the executive and that courts have agreed pfizer is a good thing but we'd want to push it but maybe fairly radical changes keep in mind all it would take is an executive to say we don't go warm all along with this with the of the fisa court and the supreme court might say the whole structure collapses. who knows? that has never been. >> referring to section 700 tueber also 215 about what the court could do and we should not think of them as a super inspector general with free range oversight of the intelligence community and its certificates constitutional issues sam practical issues. the court is not supposed to the judges are not trained it plays a different role. i try to set expec

for both second thing you can't use were called capital controls or other what are called macro prudential regulations so that would be friends to stop speculators from jacking up your currency and then raiding it causing your help to do basically happened iceland among other countries you're not supposed to be able to use any of the mechanisms that would stop that kind of speculation what the heck is that doing in a trade agreement it's behind the borders it's anti sovereignty and it's not me interest to most of us and that's what they're trying to finish a t.p. pay can you answer what is it going to be on a trade agreement well you know it's basically been an incredibly clever branding stunt because in the us there is this peculiar elite consensus free trade good no one thinks about what's in the agreement as a recovering trade attorney i actually read the damn things and the philosophers of free trade like adam smith and david ricardo are rolling in their graves because it's like one page of real free trade cut the tariffs and then all the other stuff is again like a trojan horse you pu

. >> sir, could comment -- i'mle prudential -- no religious to ragu. can you comment on primary, secondary, and tertiary education and the role that the public sector should play in it, in terms of promoting growth. >> i think recent debate we have had, people on the other side who have been criticizing us, say that education is more important than growth, and it seems to me -- the size of country like singapore, but just having education but not a growing economy with all the right services is like a field of green approach. it doesn't amount to a hill of beans. you can be more productive and discontent, people might be -- particularly in the secondary sector. so seems to me that education is important, but has to be dovetailed into a whole complex of changes which accelerates our growth even beyond what we have had. so just saying, education should be -- is important, is not enough in my opinion, and if you look at singapore, they managed to export a lot. they turned outward, we turned inward in india. the loss of machinery and latest technology. the

let's turn our attention back to prudential. its reported sales up 6% in the first nine months of the year. the stock up 2%. gains in the u.s. and asia offsetting a decline in the british market. earlier this morning, we also asked the prudentan ceo on if his company had any major announcements to cut. the four more important words at brew dent prudential is more of the same. there's an upside here. and we just have to continue to produce results. i don't think anybody should expect any drama on december 10th. the baby boomers in america, 27 million of them, so we have to continue trading that way. and the uk. >> tidjane thiam saying that's okay for investors. >>> the down side for the markets today is in the utility sector. centrica warning that earnings will stay flat over last year after reporting profit sales just shy of forecasts. britain's biggest household energy supplies taking heat. they own gas. and rwe down nearly 6%. the german manager firm saying it expects next year's profits to fall further. it's warning of a deep

we're obviously imposing on the largest systemic institutions much higher and more onerous prudential because i do believe the "one size fits all" is what's really at a disadvantage for the community banks and the smaller banks. a quick question about quantitative easing. do you see it causing an equity bubble in today's stock market? >> i mean, stock prices have risen pretty robustly, but i think -- >> correct. >> -- if you look at traditional valuation measures, the kind of things that we monitor, akin to price equity ratios, you would not see stock prices in territory that suggests bubble-like conditions. when we look at a measure of what's called the "equity risk premium," which is the differential between the expected return on stocks and safe assets like bonds, that premium is not -- is somewhat elevated historically, which, again, suggests valuations that are not in bubble territory. >> do you believe there's a federal role to support the stock market? >> a federal role to support the stock market? no. >> thank you. thank you, mr. chairman. >> senator berkley? >> thank you, mr.

. >> for prudential reasons, the risk to reward ratio with an allied government -- >> i think that wer. you are making a larger argument that the prospects of these intelligent agencies being able to tap phones, analyze e-mails is frightening. >> it is frightening. it might well be necessary. it is necessary. but in a google and facebook and others increasingly depicted as the way of america by competitors. a chinese telecom company -- >> operates with the government when it is asked to. >> it's seen as a chinese state. >> google, facebook, twitter, remember the business model. instead of article 2 of the constitution as legal basis, in terms of service agreement, which no one reads, it becomes the basis of a billion dollar business. so there is irony for the chairman of google to criticize this when his entire business consists of being voluntarily turning off data which then is data mind. >> do you think this is a turning point that you've been in washington and you were at the white house, do you think that there is now going to be much whether it's the courts where people say cour

team in to talk to more than 100 ceos from some of the top companies in america, federal express, prudentialented here by their ceos at this annual conference. president basically making his case along with the rest of his team for his economic record and his economic policies right now talking about the need for immigration reform, about the need to make sure that they can reach some kind of agreement on the budget, the debt ceiling later on, those fights in the new year. and one thing that we heard from one participant is that the participants here, the ceos here, are very frustrated by all of the uncertainty created here in washington. take a listen. >> the our fiscal policy right now is the sequester, right? take a bunch of smart political operatives, put them in a room to design the worst possible fiscal policy we can imagine, they purposely make it as bad as they can so we would never adopt it, and then watch congress go and adopt it. yeah, that causes frustration. >> reporter: but, of course, "wall street journal" reporters and editors want to be fair and balanced just like fox, and s

. >> i'm not sure i fully understand the concept of prudential standing. seems to me there are a couple of different circumstances. one may be that there is a target, a person named in the order. and that is easy, you can -- or it seems to me that person could be designated to represent the interests of the person affected by this order. i think that is what you are saying. they have bona fide interests. and there is a scrap of document able to bet be commented upon. you have a situation where there is capable of repetition, but it will delay your views unless you , even thoughdecide arguably the particular circumstances now move. also, congress gives courts its jurisdiction. >> congress created the original fisk, and it in a sense, you might say, that -- decided that this body of people could not become a regular participant if they had terrorist -- pre-k's -- >> and it begs the question, can a court oversee any roles like these? and they all agreed that fisk is a good thing and five is a good thing and we don't want to push it one way or another -- and f

failure could create financial distress will be used to meet higher standards of liquidity and prudential supervision to make sure they are more resilient. >> you were there during the housing bubble. you cannot let a bubble continue to continue to grow. >> i think in the aftermath of the crisis all of us have spent a great deal of time attempting to draw the appropriate lessons. there have been many. the federal reserve is focused on monitoring the economy, attempting to understand the threats that exist in the financial system and to improve our supervision, especially of the largest institutions to make sure we are identifying the threats that can be risks to the economy. >> when the chairman came before this committee he noted two things. they were clearly aimed at housing. you have spoken about the real economy. i hope that means an emphasis on manufacturing because of its ripple effect. one concern is the monetary policy doesn't do enough to serve americans. last year a journalist described it as trickle-down economics. we can enrich the wealthy on wall street, but it's not clear to

that sold better in public than the counterforce argument because it seemed to prudential. this remains the standard public personnel -- rationale used by public officials to explain deterrence. this remains the case. it also remains the case that this embraced rhetorically of cisco -- survivability, did not change the weapons. maybe because of unstoppable technological momentum, continue to make the missiles more and more accurate, to design the warheads in a way where they were optimized to go after enemy silos. meanwhile, the kennedy and johnson administrations did little to change the operational plan for using nukes to shift.nt any doctrinal they basically kept the plan they inherited, which was the massive retaliation plan. in a sense, the pursuit of survivability was always just the public story that covered the preemptive counterforce strategy. that has been the case for the history, really, of our arsenal, starting in the kennedy administration. even the counterforce preemptive story is not totally right because the united states, for the duration of the cold war,

metlife, aia, prudential, manulife and awda group are all in the money. >>> some americans just apparently couldn't wait for black friday to shop, so several stories such as macy's, best buy and k-mart opened doors on thanksgiving. the national retail federation estimates 1140 million people are going to shop over the holiday weekend, a slight tick up from last year. but if you don't want to brave them all, shop from the comfort of your couch. ibm says as of 9:00 p.m. eastern, thanksgiving online shopping was up 1 11% from last year, mobile traffic up 31%, with smartphones accounting for a quarter of all the online traffic. now, the obama administration is making a big change to health ca care.g care.gov. it's twitching from verizon to hp after outages across the system. the centers for medicare and medicaid services which oversees healthcare.gov says its contract was set to end in march, but they started taking new bids. the white house has promised to have the site working smoothly for most users by this weekend. verizon stock in frankfurt down around 0.2%. hewlett packard up 0.2%. >>> s

. >> i'm not sure i fully understand the concept of prudential standing. seems to me there are a couple of different circumstances. one may be that there is a target, a person named in the order. and that is easy, you can -- or it seems to me that person could be designated to represent the interests of the person affected by this order. i think that is what you are saying. they have bona fide interests. and there is a scrap of document able to bet be commented upon. you have a situation where there is capable of repetition, but it will delay your views unless you , even thoughdecide arguably the particular circumstances now move. also, congress gives courts its jurisdiction. >> congress created the original fisk, and it in a sense, you might say, that -- decided that this body of people could not become a regular participant if they had terrorist -- pre-k's -- >> and it begs the question, can a court oversee any roles like these? and they all agreed that fisk is a good thing and five is a good thing and we don't want to push it one way or another -- and f

the institutions whose financialuld create distress will be used to meet liquidityndards of and prudential supervision to make sure they are more esilient. >> you were there during the housing of old. housing bubble. let a bubble continue to continue to grow. >> i think in the aftermath of the crisis all of us have spent a great deal of time attempting to draw the appropriate lessons. there have been many. the federal reserve is focused economy,ring the attempting to understand the threats that exist in the financial system and to improve , especially of the largest institutions to make sure we are identifying the threats that can be risks to the economy. >> when the chairman became -- hee before this committee noted two things. they were clearly aimed at housing. you have spoken about the real economy. means an emphasis on manufacturing because of its ripple effect. one concern is the monetary policy doesn't do enough to serve americans. last year a journalist described it as economic -- as trickle- down economics. we can enrich the wealthy on wall street, but it's not clear to me and the

quincy crosby is a market strategist with prudential financial, which has a trillion dollars under asset are you telling investors now, adam? >> well, i think it's a matter of getting into the right areas. a year ago, simon, everybody thought that supervalue was uncompetitive, the stock was down to $2, best buy was just a -- as far as showroom for amazon.com, and nokia, everybody was writing off. those three stocks are among the best performers this year. and i think you could see the same thing. you know, instead of chasing the teslas and many of the companies that have done so well, what we're telling our investors is, you know, buy where there's value and lesser risk, where you can still get good appreciation. >> i mean -- >> we see that in a nuance communications, you know, which is hitting a new low. healthcare reits, and, also, a company like compuware, yielding 4%, 5%, so that's a good place to be in the market, for those getting slightly overvalued. >> we keep talking about the nasdaq surge, which has been driven, as you infer, by the likes of tesla and netflix. and we've seen th