funding for "washington week" is provided by prudential prudential, brigham and women's hospital, additional funding is annenberg y the foundation, the corporation for public broadcasting, and by to pbs stations from viewers like you. thank you. >>> next on "kqed newsroom," new developments in the leland yee saga and reaction from the chinese-american community. the highs and lows of the cannabis industry, documented in the new book, "weed land." >> it's going to be a long while before marijuana is going to be a reward issue for politicians. >> plus, poking fun at the culture of silicon valley. >> if you want to live here, you've got to deliver. like steve. >> jobs or wozniak? steve jobs or steve -- >> no, i heard you. >> which one? >> jobs. >> jobs was a poser. he didn't even write code. ♪

joining us now is quincy crosby, market strategist for prudential financial. great to have you with us. >> thanks very much. lou: all is well now? we have three straight days of remarkable gains, the lights are shining bright. it is all over. we don't have to worry about me? >> not for now. we do have options expiration tomorrow and you know that does provide a slap in the market. some of these things that we look for, lou, have actually been taking place in the market. it gives us a little bit of confidence and the data have been positive and that really does help. lou: is it your since based on data which you say much of it has been positive, are we growing now? is this economy actually solidifying and, and moving forward? >> it's moving forward at a very, very, modest pace. it is solid but not stellar. this isn't the kind of recovery that we used to have with the real pent-up demand on corporate america and consumer. it's been very, very steady, solid and it has been, it hasn't given us the kind of growth that provides employment that we need. >> earnings s

follow their own roles unfortunately, the depended hadn't been doing that and that did not only prudentially at&t but every person that lives in the neighborhood that wants access to the service of board abandon network it prejudices all people who took the walks to look at locates and prejudices everyone person who took time off from work or family to give input. in essentially 19 out of 21 appeals people came and told the hearing officer there was at least one alternative location that the public was all right with. so those people were prejudice as well as bus the hearing and director have not been following their rules. the department has broken it's only rules and at&t respectfully ask ask i reverse your decision. >> just so i understand what at&t wants from the board are you looking for a global decision. >> well, certainly the board would have very good reason to make a global decision for instance, the city was to act on the appeals in 60 days didn't act on one single one broke the public utilities code it's a fact that is common to all 21 appeals that the hearing officer and directo

. >> additional corporate funding for "washington week" is prudential. brigham & women's hospital. funding is provided by the annenberg foundation, the public ion for broadcasting, and by contributions to pbs stakeses viewers like you. thank you. >> once again, live from washington, moderator gwen ifill. gwen: good evening. tothe third time is supposed be the charm president obama's sia trip was designed to keep some long overdue twice canceled promises. ut even as his promise to emerge with a grand trade deal to veled so did the effort move the dial in the middle east. john kerry said the window shut completely for the israeli-palestinian peace talks president sounded more pessimistic. posture.can folks can cling to maximalist positions. realistically there is one door and that is the two parties someng together and making very difficult political compromises in order to secure of israelis and palestinians for future generations. them walk yet seen through the door. gwen: the president said he doesn't see anyone walking door any time soon. where do we stand, indira. who was watchi

funding for "washington week" is provided by prudential. williaomen's hospital. annenberg foundation, orporation for public broadcasting and contributions fr stations from viewers like you.  . >>> next on kqed newsroom more bridge e?les.q corrosion revealed in the criticalÑie1q part of the easte span.r a downturn in techfá stocksw3w3s alarm. >>> science of bringing back distinct iy;[ñspecies. >> to goçó backe1 to that origi mistake or crime and try to do it, therermight bexd redemptionn that.ñr

i think a far more appropriate response is a macro prudential target.e could still see the mpc on hold. fpc very good chance of the starting to think about using their maximum potential. we have been looking at the bank of england in the past, we have tended to be quite lazy. more recently, these -- well the easing scenario where we are seeing much broader range and the channels that we need to reach to affect the economy. when you think about the f pc in >> thanks together -- for your analysis. chief european economist at rbc. big hollywood names own vineyards. we sat down with a professional wine taster to find out. >> as you can see, we have a lot of wind behind us. bergman to try to drink it all tonight. this is a 2010 vintage. full black foods, black raspberry black currents. as one is rich, powerful, and the wine i could put away my wine cellar for the next 20 years. medium and style, good acidity. without acidity of wine will never age. i can see this wine all day and not drink it. one of the great food wines that is ready to drink when you buy t

. >> additional corporate funding for "washington week" is provided by prudential. brigham & women's hospital >> additional funding is also provided by the annenberg foundation, the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. once again, live from washington, moderator gwen ifill. gwen: good evening. with the exit of health secretary kathleen sebelius and the arrival of her nominated replacement, sylvia matthews burwell, the white house sees a fresh chance to push ahead with implementation of its health care law. >> there are 7 1/2 million people across the country that have the security of health insurance, most of them for the very first time, and that's because of the woman standing next to me here today. and we are proud of her for that. gwen: white house officials insisted that sebelius' exit was her idea, and that burwell will pick up where she left off. is that even possible, alex? >> i think she's got some catching up to do. she comes to a new agency. she doesn't have a lot of health care exp

monitoring developments in the housing market and we think that it will use its new tool kit, the macro prudentialkit to tarbgt mortgage standards later in the year. the more that the bank does to cool the housing market going forward, the less it needs to don on the venn ventionry monetary side. more targeting means less need for interest rate rises. >> will the housing price bs the story for the next 12 months if the u.k. in general? >> it is a really big issue in the u.k.. one of the key issues. it is not a new problem but it has become a bigger problem now is the lack of supply of u.k. housing as it relates to housing construction, the u.k. -- housing supply has had a bust without a boom. construction was pretty weak before the crisis. it is even weaker now. construction has fallen to its lowest level since the second world war. construction is running at a rate of around half of household formation growth. so it is not surprising in that context that prices can, you know rrks headed quite sharply higher and will continue to head higher. how the bank of england deals with that and the policy,

the franklin and algier advice about hard work, firm moral character, prudential habits of saving and thrift, all of this, i think, seemed irrelevant in many ways in this new society where, in people's daily lives, in bureaucratic settings, they were involved in interactions on a daily basis with dozens and maybe even hundreds of people over and over again. the old standard of hearty individualism just did not do much for them. in this new environment. carnegie's book, "how to win friends" dressed the situation directly and printed an irresistible messaging that people responded to very enthuseaticly, and that messaging was, quite simply, one could find success in the modern world by developing attractive personal traits, by developing and displaying self-confidence, by developing skills in human relations, and, most simply, as carnegie would put it, by getting people to like you. that was the game. carnegie insisted, and as some of you may know if you have head this book -- insists over and over again that getting ahead in life, securing a better job, making more money, enjoying the

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just to give you an example, the eight directors of prudential received total composition of $78 million by $15 million in just three years. nice if you can get it, right? alex edmund, professor of finance at the london business school and an expert in pay and bonuses joins us. alex, great to have you with us. let's start with that. is any group of directors worth an increase of $15 million over a three-year period? >> normally i'm a strong opponent of directors getting paid millions when their firms have done badly. this is a rare case where the firm actually did very well. roughly speaking the value of pru den shl went from $25 million to $50 million. over that three-year period not all of that is going to be down to the directors. let'sy conservatively 1% was down to the directors. that's still 250 million. it's actually not too outrageous for directors to get, say, 15 million of that. >> alex, i know you're pro -- you support executive pay being linked to performance of a company. >> that's correct. >> i think you've said over the past, you know, if the company performs well, then ce

those kinds of prudential controls are binding.e are back to the 4-1 income ratios that we saw at the peak. provided the financial conduct authority and the lenders make sure that is the maximum, then that means that house price inflation, even in london, can only move at the same rate. >> of affordability is enough? they have the tools necessary for now? what thes pretty well authorities have, apart from a rise in interest rates. >> the interest rates increase forecasting. you are going for the second half of next year. >> the politics do not really come into this. lot of reasons including rising interest rates in the u.s. member though one suggested a rate increase it could come in the spring. would you be surprised if we did not see a rate rise in the third quarter? >> i would not. if the economy continues to outperform the forecast, then we could see that. i think the consumer will pause for breath a bit. i think the economy will slack off a little bit. >> we will chat more about business and the risks to the u.k. economy. pete

he said moderating the risk could be the next frontier of macro prudential policy.hat do you think of that, ian? you might come under closer regulation. >> we only do the research. we don't do the asset management, but we do work with asset managers, clearly. i think there's a lot of discussion. there's been paper in the u.s. that has had a similar theme. now it's an exceptional economist, andy howell, an exceptional economist in the uk. we're starting to see the mechanism through which these markets are supported, going through the asset management business. so it's absolutely right that the central bank should be focusing on their systemic risk. they are overinvested in bonds and unemployment. that's the one thing that loses. and even their equity portfolios look like bonds. >> corporate bonds or -- >> as i say, the risk is that their equity portfolios look like bonds. if we were to get a bond blow up for whatever reason, then that would be major. >> and that's how financial repression works. they're trying to make sure that people remain invested, perhaps for too

in the emerging market economies, they need to strengthen macro and prudential policies to safeguard against market volatility. in the low income countries where growth continues to be strong, they need to guard against the rapid debt buildup that needs to be watched. not short-term growth, but we need to also guard against the risk of hoe growth this the -- low growth in the future. and to deal with that, we need ambitious and coherent policies to avoid years of subpar growth and to secure global financial stability. that means that all countries, advanced, emerging and low income, need to step up structural reforms. that is certainly the case in product and service markets, but it is also the case in labor markets. together with that well -- we've got well targeted investments whether private or publicly-funded are needed in quite a few countries, not all. it also means renewing the momentum on global financial reform and containing financial vulnerabilities emerging in hot spots in various places. for instance, in the nonbank sector both in the united states and in china and high

you had to put $4 in capital behind that loan while you held it, the prudential reserve.i add fannie or freddie only have to put $1.6 o behind the loan because -- excuse me, $2.50 because i have a different standard. if i now create a mortgage backed security using all these loans chai charlie and the others sold me and put a guarantee on it, charging 45 cents per hundred dollars for, i now create a mortgage backed security backed by 1.50 and capital of the mortgage backed security and the 2.50, and then i sell it back to you. this creates tremendous incentive for me as a government gsi to be in the business of buying your bad loans. >> i understand. >> i want -- so the banks only lead fannie and freddy into the extent that it's in their interest they get into the difference, extract confession, and later on once this process is underway and mortgage standards are written, the basic game is organized, that's when investment banks get into the game. it is no accident that when the crisis occurred, well over half, perhaps as much as two-thirds of all the others sit inside f