the treasury is part of the executive branch. federal reserve is an independent agency, created by congress, with independence of the political pressures from the white house. in that sense, the treasury could not mandate instructions to the federal reserve. chairman thomas p. mccabe believed the fed's role was to restrain inflation. treasury secretary john snyder and president truman wanted the fed to help finance the war. president truman, in his memoirs, described the experience he had in 1917. he bought liberty bonds. he didn't know, and most people didn't know, that those liberty bonds, certainly the series he bought, went up and down with market prices. after the war, interest rates rose, bond prices fell, and many people had to sell bonds below what they paid for them. truman never forgot that experience. he thought the government shouldn't cheat people. truman called the federal open-market committee to the white house for a tongue-lashing. never before had a president tried so directly to influence fed policy. there was

which would put a nice floor under treasuries. last but not least, there's a seasonal factor that she believes could lift treasuries. heard someone say this just today. according to garner who cites, going long on the 30 year bond futures around april 24th, and then selling, around august 19th, has been a successful trade about 70% of the time. 7-0. in other words, she thinks we're entering a seasonally strong period for bonds starting in april. now here's the bottom line. i don't want you trading treasury futures, uh-uh, no way. and i still don't want you investing in u.s. treasuries here. not when there are so many better higher yielding dividend stocks to come down. you know i say the action that rates are going to go higher, not lower. but we have to take the variant views into account on this show. and garner's work suggests bonds are not about to fall off a cliff which is what would happen if the fed takes away the punch bowl tomorrow. one more good reason not to fear bernanke will do something rash tomorrow. it slams bond p

treasury representative in 1940s. he said there's one thing i know i can say that we don't want any of those islands. i know he doesn't want jamaica. i know he doesn't want trinidad and i know he doesn't want reddish sky in that. last night in fact, the u.s. was more spontaneously generous during the second world war to china and the soviet union than it was to britain. it seems rather remarkable today. the mindset during the war was really focused on britain as our main rival. this is all overthrown three years later with the marshall plan in 1947, but that's another story to be told that my next book. one of the reasons for the collapse of british imperial power in 1946 in 1947 with this rapid and violent because britain was rapidly running out of dollars and the u.s. treasury was managing that process. if you look at the debates going on behind the scenes and the british government at the end of 1946, early in 1947 on burma, greece, palestine wall collapsing by oakley is all about dollars. we have to make the pound

treasuries before. i'm even more bullish right now. >> on treasuries? >> on u.s.reasuries. >> not stocks. >> no, not stocks. bonds are bulling but they're good at this time. if money is coming back you have mini rally in u.s. treasuries today and they could go down if this situation extends to spain, italy, in coming days. that's the first part. the second is, as michelle said earlier, a lot of firsts here. particularly, the ecb used to be a chairman to supporter of the depositors. here they are joining an imposition of attack and loss on the depositors and completely calls into question what the central bank loan is supposed to be in a crisis like this. >> if we rule out the worse case scenarios here in terms of global investors, let me bring you into the conversation because one of the biggest fears is if there is a capital slide or a deposit slide from areas not just southern europe, stabilize the global financial system, which includes us. this is a scenario that is possible in your mind. >> well, we have seen today there's no bank run in spain or italy and th

. >>> new treasury secretary jack lew weighs in on the markets and the american economy. his interview just ahead. >>> and the tsa under fire. the growing backlash over knives on planes. what every traveler needs to know. good evening, everyone, and welcome to our public television viewers. suzy, the market beat goes on and on. >> it's like the energizer bunny. it just keeps going and going. the dow marches on higher for the tenth day in a row, the first time since 1997 -- 1996. it ended at 14,539. the nasdaq added 14 and the broader s&p 500 gained almost 9 points, and it's now just 2 points away from its own record high close. >>> there is some concern that the rise in the markets may have been too high too fast. and this could be the start of a market bubble. but newly installed treasury secretary jack lew tells steve liesman not so. >> the analysis i've seen doesn't give me reason to be worried right now. >> we'll have more of steve's interview with the treasury secretary in just a few minutes. >>> as the dow hits unprecedenteded heights and the s&p 500 nears its own p

we have, i think, probably around 20% treasuries right now.small wading in high yield corporates. counteracting that, we do have a wading in mortgage-backed securities, which are largely noninvestment grade and outperformed high yield corporates in 2012. another area that we look is emerging markets. we have approximately 12.5% of the portfolio in emerging market corporates. >> bonnie, we've got breaking news. we want to check in with kayla. breaking news on citi? kayla? >> first of the requested distribution of the banks that were under the federal reserve stress test. citigroup coming out, saying it did not request a dividend increase, but requested a stock buy-back plan, $1.2 billion, that's between now and the first quarter of 2014. it was expected, melissa, that banks could not release this information until next week. today was the day that it was basically just going to be mostly about the capital levels, the tier one common capital ratios. you can see citigroup shares are moving afterhours. citigroup posting the highest tier one common

connell: treasury secretary jack lew meeting with the chinese.n the agenda, some of the growing concerns we have. dagen: not confident they will recover comfortably. americans are not stocking away enough money. take a look at how oil prices are doing today. almost $94 a barrel. still stubbornly high. ♪ investor. yeah, i'm a serious investor but i'm a busy guy. it used to be easier but now there are more choices than ever. i want to know exactly what i am investing in. i want to know exactly how much i'm paying. i want to use the same stuff the big guys use. find out why nine out of ten large professional investors choose ishares f for their etf. ishares by blackrock. call 1-800-ishares for a prospectus which inclus investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪ (train horn) vo: wherever our tras go, the economy comes to life. norfolk southern. one line, infinite possibilities. dagen: we love charles payne. he is coming up. right now it is stocks now

secondly, what you need is a true european treasury with a treasury minister, should be turned federalmocratic control of the u.s. senate, a second chamber get something for states to work naturally together with european parliament, representative king citizens. and forth, also a common european bond market, we start with what we call european collective redemption sent. that is the ideal to neutralize steps across 50% mark to create liquid market of three children of euro -- 3 trillion of euro and that would be a real game changer that should change the marks to ensure when i give you these building blocks and you're under can come you say that's exactly what we did in the 18th century, more or less. you started in 1776 with the declaration of independence. in 1781 with the arctic of the -- the articles of confederation so based on unanimity, and then in 1787, a big change in the convention of philadelphia in which the articles of the considerations were fundamentally changed in a real federation with article seven stipulating that an approved by nine of the 30 states was sufficient

treasury inspector general tells us about washington's crucial mistakes in the high of a credit crunch in two thousand and eight. john kerry made his first major verbal gaffe as secretary of state by mixing the nonexistent country of kershaw to stand in one of his speeches of course it is funny when politicians misspeak george bush was pretty good at that but i can say that we all make mistakes when we speak trust me it is very easy to butcher the pronunciation of someplace on earth like course to low voltage or walla walla washington the thing is that he didn't just misspeak his speech was written correctly and if you look at his eyes as he said it he wasn't really looking at notes or something he's reading it off of a teleprompter right now i am reading off a teleprompter but i put every word there myself which is probably why john kerry is spelled with a q but my question is would kerry and prompter master obama just read anything put in front of them to even really know the realities of the tiriel they're reading in their speeches and who are deeply versed on some subject and you s

treasury inspector general tells us about washington's crucial mistakes at the height of the credit crunch in two thousand and eight so after the break. the month before the oscars and what annoys you with their predictions and the most after everyone complains about the results but it is a big talked about much as the few hundred people who gathered to protest the glamour filled award show but what protests the asker's you ask. well although the film life of pi won the oscar for best visual effects effects to you that made the movie look so amazing were the men hughes has filed for bankruptcy quickly after the film's release you know that seems like a bit of a discrepancy i mean the group that made the best visual effects in the world in two thousand and thirteen is flat broke how can that be this reminds me of how the lead creators of call of duty modern warfare two were let go directly after the release of the game which to date is the eighth highest grossing video game of all time this was done supposedly to dodge paying them the royalties that they you know earned through hard work th

his first interview since taking over the treasury. then we are awaiting the results of the latest review of the banks. we'll find out which banks requested more capital, which were rejected, and which were given the capital. find out what it means for your portfolio. that and a lot more coming up on "closing bell." platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5411. >>> welcome back. new treasury secretary, jack lew, >>> welcome back. new treasury secretary, jack l

but if it needs to be safe, it's hard to feel safe about a ten-year treasury at 2%. more liquid, and taking advantage of the yield curve when it rises and then extend some maturities that better suit your needs and your plan. i don't think you can, as a plan for part of your retirement, think about how you're going to trade treasury markets. i do think you have to know what your growth goals are, and if you look at any sort of historical dat a can you get there? markets like this very dangerous for those thinking about retirement. they get you to make emotional decisions. don't. stick with your plan. you'll see the other side and get to retirement just fine. >> michael, thanks for your time. coming up next, two tech titans go head to head as we kick off the second round of fast money madness. plus he's helped turn the indiana pacers into an eastern conference power house. kevin pritchard reveals who he thinks will take it all in the ncaa. stay tuned. ♪ ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your

treasury at record lows last july are now up more than half a point and are expected to go much higher driving prices much lower, a scary thought for bond holders. >> if the ten-year treasury reverts back just to its average yield from 2000 through 2010 it will go down 23%. >> what happens next with rates and bonds depends on the u.s. economy growing stronger and this man has been dropping hints on when that can happen. more improvement depends on the direction of unemployment and inflation. >> as we make progress towards our objective we may adjust the flow rate of purchases month to month. >> for now the fed chairman says interest rates will likely stay very low into next year. so the clock is ticking and many experts say it's time to move away from bonds especially the longer term ones because the longer you hold them the more you stand to lose. and we know the interest rates are important not only for bonds but also for mortgage rates. >> that's exactly the case. falling interest rates for home mortgages has led to a recent boom in refinancing. with rates boosting many homeowners w

treasuries they have been buying you have to say these must are supposed to bet smartest guys in the room if they are not liking the balance sheet loaded down with treasury debt and what they are trying to do to support the spending going on that is a gut reality check. >> rick, i know you are a lawyer and not an economist. >> but i play one on tv. >> the numbers don't add up, do they? >> the ryan up ins add up. >> could you think the obama numbers add up you? >> we haven't seen them yet. >> we have seen them and seen how he has spent. i'm not talking about pie in the sky. where he has spent. increased the size of the government by 20%. is it working? >> except you would agree that we are seeing the deficit come down each year is since 2009. >> good size now at 800 million? >> of course, it is not at a good size. it is getting better. we are focusing on the ryan budget and i got hammer this because listen say what you will about paul ryan. i don't say a lot of niece things but he is supposed to be a leader in the area and the budget was so disingenuous it amazed me. >> wait a minute.

steve liesman spoke with lew about his role at treasury, the budget negotiations in washington and the challenges the u.s. economy still faces. >> reporter: treasury secretary jack lew in some of his comments in the new position, talking about the value of the dollar, the budget deficit and the economy. i began my interview with him by asking whether or not equities which have seen new highs are in what he would consider to be a bubble. >> the analysis i've seen doesn't give me reason to be worried right now. i think one of the lessons we learned from 2008/2009 is that even when things are not a problem, we always have to ask those questions. we need to make sure that we have the transparency to see what's going on. in firms and markets. we need to have the regulatory tools to deal with problems as they develop. that doesn't mean we should jump in when we don't see a problem. >> every treasury secretary serves at the pleasure of the president. you have no way of knowing how long you'll be in the office or how much time you'll have to do it. at the end of your tenure in the secretary's

tracy: and let's take a look at your ten and thirty-year treasuries., and your 30-year also unchanged, 3.33%. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be is hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a

>> we do see treasury yields moving a bit higher. modestly higher. we have a 250 yield target on the ten-year for year end. we think as we get into late this year, there will be some visibility on the end or the scaling back of fed purchases which should lead interest rates to creep up a bit. >> so yields on the ten-year today are about 1.85. you see them going to 2.5. that would suggest that you feel that people might well lighten up on their bond holdings. >> absolutely. people have been piling into bonds over the last four years. they've provided great returns. but those returned are in the past. really mathematically possible to see those type of returns in the future. even if interest rates stay relatively low, we're looking at very low single-digit returns. so it's time to begin liquidating, especially some of those longer maturity positions at these quite high prices. you know, shifting some of those assets into the equity market. >> so what ideally should a portfolio have in it? obviously everybody's different with respect to fixed income. is

the treasury department says an important aspect of the u.s.epartment of the treasury's mission is to detect and thwart threats to the national security, including financial crimes and terrorism. so, do you think this helps that goal or is it over reach? >> well, i mean would the country have less crime if the police could break down every door op a whim and arrest people on a whim and prosecute them and convict them without a trial? yes, we would, but who would want to live in a country like that? government is always looking for shortcuts. government views the constitution as an obstacle, not as the supreme law of the land. if you give a little bit of power to the government, it will find a way to expand that power and to make its job easy. is it easier for them to get information from us by demanding it rather than going to a judge, presenting evidence of why they need it and getting a search warrant? of course it is. if they find a way around the constitutional obligations, they'll do so. yesterday, we learned they're going to do so on a ma

government does is redeem treasuries.d i go into debt we pay by transferring liability to a third-party. when the u.s. government issues debt it doesn't transfers liabilities it issues it's own currency to redeem the outstanding debt. the government can never run out of dollars, they come from united states government. they don't come from china, we're not going broke. we're not putting our children into bankruptcy. >> we're putting the federal reserve balance sheet at work which is fine so we don't need a coin actually because that's where we are. >> i should explain to people when we talk about federal balance sheet to work what we've done is increased the money supply in different methodologies during the crisis called quantitative easing. the trillion dollar coin idea is just basically a way of doing sterilized what's called sterilized quantitative easing through the back door. it's a way of creating a mechanism. >> it would allow the united states to put the federal reserve's balance sheet to work for the rest of us,

treasury secretary.this. ♪ ♪ ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ >>> some >>> some troubling headlines from china and this time it's from j.p. morgan downgrade from china. it is recommending the banks as a short. adrian mowat is from j.p. morgan and made the call yesterday and joins us now on the news line. adrian, always a pleasure to speak with you. >> hi, melissa. >> you say momentum is growing with policy signs constrained and that makes for a nasty combination. what in the data are you seeing that makes you think the momentum is slowing and we talk about policy responses. is that specifically stimulus? >> that's

more from treasury secretary jack lew. peter? >> that's right, david. these budget negotiations will have an impact one way or the other, good or bad, on america's aaa credit rating, which, standard & poor's cut two years ago because of all these budget dysfunction. so i asked him if we will get it back? take a listen. >> i'm not going to comment on what ratings agencies might or might not do. >> why? >> what we have to focus on whether the economic challenges we face and why. we need to do a number of things. we need to take steps to have an economy where we're investing and creating jobs and improving the future for american workers. the truth of the matter is we know that we need to do entitlement reform and tax reform. we need it for competitiveness and we need to do it on bipartisan basis. time to do it and time to unleash the investment that i think will follow from a certainty that we have dealt with the challenge, that everyone knows we need to address. >> last question, play economist for me if you don't mind for one moment. the administration

it is perhaps the second and down the street i treasury treasury department headquarters pennsylvaniavenue. for decades the general public could bring government checks to this room and have been cached. in 1976, the cash enclosed is a ceremonial space. there's no cash in the cash room. as for today's kind of cash, the transition to electronic payments, most americans who receive payments such as social security, supplemental security income, veterans benefits and retirement than if it were federal employees will no longer choose paper checks. they have two options. direct deposit to take account of their choice or a new government issued card called the direct express card. for many americans as an easy choice. david bank account their entire lives in a two set up your deposit. approximately 17 million adults in america have no savings accounts allow according to the federal deposit insurance coalition. these are what we call about 80% of all american households. and there's an additional one in five under banked, meaning they take accounts, but they also use financial services. this

people felt very hard into treasuries.hey were just trying to stampede over each other to try to get in there over the last year. >> imagine the opposite would have happened. that would say to beat there is money on the inside trying to get out. this acts like a market where there is money on the outside trying to get in. >> i have a hard time calling it the great rotation. the great sprinkle is really what is happening. the fed is pumping market everywhere. to say that people are actually physically getting out of bonds and moving to equity funds, i find that a little bit too cute. liz: stocks are yielding more than treasuries. you do not see this often. you saw it just shortly after the start of 2011. it started to happen. here we are, it yields 2.16. did you see what is happening. this is just obvious to me that you want to be in stocks at this point. >> i think over the long run it is true. i think that you know, i am not talking about what the market will do. the stock market doubled without flows going the right dire

department of the treasury. in that role she covers financial access, financial education and consumer protection issues and serves as the executive director of the president's advise advisory council on financial capability. jeanne 40 garth is the vice president of policy at the center for financial services and innovation, an organization that seeks to improve the quality and quantity of financial products and services for the unbanked and underbanked. she was previously an economist at the federal reserve board. and david rothstein is project director or of policy matters ohio, an organization dedicated to building a more prosperous, equitable and inclusive ohio, and he will be peeking about his -- speak about his experiences in the field. at this point, i'd like to turn it over the melissa koide. .. >> the other is what the cash room looks like today which is this beautiful, enormous, stately room and which we have many conversations like the ones we're having today about what the future of financial service

in order to pay the treasury with regard to dividends.it also is ensuring the taxpayer starts to see more of a return on the support provided and does not allow for the companies to take earning an essentially recapitalized themselves. >> i thank the gentleman. >> the charter recognizes the gentlelady from new york, ms. maloney for five minutes. >> why did fenian freddie get into subprime lending and what steps have you put in place to prevent any entity, whatever it is they are from taking action in the future? >> complicated story with regard to the enterprise, participation in subprime lending, but clearly driven by what was going on more broadly in the marketplace. there is a sense of fannie mae and freddie mac losing market share to private participants. there was a sense of serving more borrowers that the margin or mortgage market and the sense the strength of the u.s. housing was such that home prices are going to continue to rise. there were a thought of things going into participation in the marketplace. with regard to where we a

to preserve capital is the only reason you would buy treasurys.iz: before we go, tyler's other pick is sea drill. we have oil rising over last few sessions. david: huge dividend on sea drill as well. we'll be able to talk about that as more next time you're with us. tyler and kevin, good to see you both, gentlemen. >> thanks. david: a deal may have been reached to save cyprus from collapse but the drama is far from over. many questions remain as and the cypriot people want answers as we take to the streets. we're live there, nicosia, cyprus with a on the ground look. liz: plus is gold emerging as the new bond allocation for your portfolio? a top strategist tells you why the old strategy of 60% equities and 40% bonds should be dead. clean it out and make room for shinier balance in your assets of your portfolio. he will talk about that coming up. ♪ . [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someo

treasury secretary jack lew on a critical mission to china.ay he met with china's new president to talk cybersecurity and more. peter barnes in washington with details. hey, peter. >> tracy, that's right. cybersecurity is at the top of the agenda the new treasury secretary around the new president of china. just last month the private security firm mandy apt, tied the chinese military to cyber attacks on more than 140 u.s. companies. analysts describe the meetings in beijing as a get acquainted session that will set the table for future negotiations on this and other issues. a treasury official saying quote, it was a warm and wide-ranging discussion but secretary lou was candid and direct in his comments! experts say china risks a backlash if it doesn't stop hacking.% >> it is the american business community is killed by cyber espionage from china. they're the ones that are supposed to be the voices of reason. you take the business community support away from the bilateral relationship you have a lot more possibility for problems. >> china has

treasurys, for instance. >> yes. domestically has some treasuries, but we have been overweight in credits and high-yield bonds for some time now. as we all know, that has been the place to be. any risky assets, especially in bonn space. we are not taking excessive duration of maturity risk at this point. so per obvious reasons. our average duration is somewhere around four years. cheryl: i want to show our viewers, bring a pot part of the s&p. about two points away from a record close. i want to give our viewers a sense that we are getting close to a new record high. this could be a big day. ten minutes to go. i do want to ask you also about sectors that you are avoiding. you mentioned u.s. treasurys. one of your bigger holdings right now is real estate. i'm thinking that 2012 will have been your signal to buy more. you are still going to bank on that sector this year. is this u.s.-based real estate or international? >> is globally defined. we implement through american century's global real-estate fund run by steve

and if you want to buy some treasuries, go ahead and buy them.s part of a diversified portfolio. don't feel bad if you're a bull and need some treasuries. >> before we go, you've got the six box sitting there. how's your bracket doing. anybody pick harvard last night? >> that was the only winner i had. >> all my other picks lost. yeah. >> i'm wearing my tie. >> ole miss making it over. thank you all. have a good weekend. >> owl bouncing back. the dow jones industrial is on the move today. where will that leave the week in terms of stocks? let's get to josh lipton. he'sali tallying it all up. >> after three weeks of gains for the three major indices, four for the dow, let's review where the major indices need to finish to break even. for the dow, 14,514. the biggest gainer by the week in the dow was coke, the laggard was cisco. as for the s&p 500, breaking even is 1,560. your leader this week, nike. the worst performer, oracle. on the nasdaq, they'll have to it 3249 to break even. and we'll end on one notable mover to mention. that's plaque bblack

first, steve liesman going one on one with new treasury secretary jack lew.hat's ahead, 4:15 eastern time. and former fdic chairman shelia bair will react to the federal reserve's decision on whether to improve the plans by the big banks to raise dividends, buy back stock, we're going to get the capital plans, coming up. you're watching the "closing bell" on cnbc. >> buckle up! >> buckle up, bill! [ male announcer ] the lexus command performance sales event has begun. ♪ featuring the powerful gs. ♪ just when you thought you had experienced performance a new ride comes along and changes everything. ♪ get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ and his new boss told him two thi

i would urge congress to pass the bill that gives treasury investigative powers requires the treasury department to investigate reports of suspicious activity in u.n. security council resolutions and clamped down on further perpetration of crimes against humanity. by linking human rights violations for sanctions, the united states could deliver a potent threat come a credible threat to the regime. thank you very much. >> thank you, professor lee. >> mr. chairman, ranking member, thank you for the invitation, members. >> thank you, ambassador. >> way of background, in january january 2003, north korea pulled out of the npt and told the iaea and monitors to leave the country and that was after the united states told north korea renewed they had a clandestine uranium enrichment program in violation of the npt but the agreed framework. we started the six party process in august 2003. is the true pronged approach in the 2003 you are told the north koreans for the connecting nuclearization, but also illicit cavities. we are looking at you counterfeiting 100-dollar bills, counterfeiting phar

melissa: a look at the treasury as we head out to break. ♪ . capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone but her... no. no! no. ...likes 50% more cash. but i don't give up ea... do you want 50% more cash? s! yes?! ♪ [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase, plus a 50% annual bonus on the cash you earn. it's the card for people who like more cash. ♪ what's in your wallet? why? and we've hit the why phase... >> i'm cheryl casone with your fox business brief. twitter is expected to generate one billion dollars in ad revenue in 2014. that is according to research firm e marketer, which forecasts twitter mobile ads will bring in 583 million this year which is double the ad revenue in 2012. twitter has more than 200 million monthly active users. >>> volvo and shell announcing a deal to fuel volvo heavy-duty fuel trucks with lng, liquified natural gas. nat-gas is cheaper than most gasoline and diesel fuel. the two companies will focus

, the treasuries are yielding so little money.hich of the bond classes has become dangerously overpriced at this point? >> caller: well, i could characterize the overprice. i don't know if i use the word "dangerously" as high yield right now. overall, it's up 3% over treasuries with the really lowest of the junk, the junk of the junk, ccc's up 5.5% year to date. now, that said, high yield companies have been doing really well, able to refinance their debt, and perspective default rates are low right now, but i'm wondering if that market's starting to look pretty overheated. dagen: bob, great talking. thank you so much. i hope to see you very, very soon. >> caller: okay, good speaking with you. dagen: bob, take care. >> caller: thank you. con cop another big story, president obama will come out expected to nominate thomas perez, current u.s. assistant attorney general to take the place of the labor secretary. dagen: this could stir up controversy on capitol hill. joining us now with reaction is "wall street "wall street journal" ed

9% now of the revenues coming into the treasury-- treasury come from corporations. a few years back it was double that. a few years before that it was triple that, it used to be, many years ago that half of the tax revenues that came to wasngton came from corporations. now it's down to 9% of our revenues. and in large measure it's because of the kind of deductions and loopholes which are used, some of which are perfectly legitimate because they've performed an economic function, some of which are not. >> rose: we conclude this evening with a conversation with a 17-year-old who just sold his company to yahoo! for what some people believe is $30 million. his name is nick d'aloisio. >> at the end of the phone call they're like how can we arrange meetings. i think they are like we want to do a phone call at 11 a.m. this had been a night mire. i said i can't do 11 a.m. i said why can't you step out of the office. i said well, i'm at school. and they're like what, college, or post grad. and i'm like no, high school. >> and what, final year. >> no, 10th grade, 9th grade. w

rate of return, unfortunately probably not at anytime in our 44 cast period and if you look at the treasury it closed at one 99 and two% for the last couple of most and is for the next two years it doesn't get above 2.6% and so what we are really saying there is if you look at united states treasuries right now the two biggest buyer of threshys are the united states reserve and they are going to continue to buy treasuries to continue to drive down interest raids and the other major buyers are foreign central bank and is ten year ago at the time if i had i was a foreign central bank i would have bought japanese den nominated bonds and britishic pound sterling and united states treasure res is that the case today? central bangs don't want to touch anything in euros and japan is slipping into another recession united kingdom never got out of it's last recession and now it's getting into it's next recession we main feel good about our gdp growth but we are doing better than the other advanced economies of the world and there is a johnny cash song that says the beer i had for break fast was not

that's way better than your ten-year treasury. >> we'll leave that for another conversation, but thank you so much. robert shiller, co-founder of the case shiller index and also economics professor at yale university. >> today's case shiller house price confirms why americans are once again bullish on real estate. according to the latest cnbc all-america survey, 33% believe their home prices will rise during the next year? that's up from 9% from november and it is the highest that number's been since december of 2007. 54% think home values will stay the same. only 13% think they will decrease. and while stocks and real estate look promising, gold is the preferred choice of american investors. 35% say they believe gold is their best investment. 27% of the respondents named real estate and 21% like stocks the most. >> so while most americans prefer gold, that investment hasn't paid off recently and jackie deangeles takes a look at why the precious metals is looking tarnished. >> many investors are wondering if the gold rush is over as the dow has made a record run and money is rotated in

if your traces or put it in treasuries or corporate bonds, it is even worse.ery hard choice of what you can find, so do think the race starts to go up, you will see some of it taken out of the housing market and the equity market and that is going to hurt, to hurt consumption, a drive on the economy. gerri: rc, to you quickly. are our stock the best place to put your money right now? the point mark is making is it is in the factory. >> if you had 10 years, do you put your money in a ten-year treasury or procter & gamble? to put it in procter & gamble, mcdonald's, exxonmobil. but i would rather have my money in procter & gamble then in ten-year treasury. gerri: mark and rc, good job, i feel limited. all you did not make me feel all that much better about what is going on. thank you so much. well, now we want to know what yo think. here is our question tonight, is this bull run for real? i will have the results at the end of tonight's show. and this bull run began in 2009, believe it or not four years old. around the average duration of bull markets since 1929,

i turned in $600,000 to the treasury, 18% of my budget. i didn't lay off anybody, because we're careful about the way we spend it. we spend it as if it were our own money. if all your public officials were doing that, imagine what we could do. i have another bill which will never see the light of day up here because they don't want to fix anything, i have another bill that would give bonuses to civil servants, federal employees who find savings. right now we do the opposite. if your budget is $12 million and you work somewhere in the bureaucracy of government, you want to spend it at the end of the year so you can get it the next year. i would change that incentive. i would give that civil servant a significant bonus if they'll keep money at the end of the year and turn it back in to the treasury. can you imagine the savings from top to bottom throughout government if we did that? but if we're to do that, to ask civil servants to do that and look for these savings, and right now with the sequester people are throughout government looking f

are you talking treasurys, high yield?ayinging away from. >> the bond market is interesting market. all bonds go up and all bonds go down. equities sometimes go up, sometimes they go down and you have something to talk about. this is 30-year cycle. rates peaked in 83, 84. here we are 30 years later rates are troughing. all bond rates are going up. then you will see bond managers say, gee we have great performance. we'll have great relative performance. relative performance will be meaningless, bond returns, corporate, treasury, junk they're all going to be negative when rates start going up. tracy: you know what though? treasury market is on fire because no one wants to pay taxes. that certainly has got to be a help. >> yeah. but there is lot of the participants in the treasury market are tax-exempt. they just don't want to take any risk. tracy: can't blame them. mike crofton with the philadelphia trust company. thank you, sir. >> thank you. ashley: all right. american companies rewarding investors with record payouts. liz