>> dodd-frank does not do anything about underwriting standards. that is one of the puzzles about all of this. what it does is impose a lost restrictions on private sector, slowing economy. we've had slowest recovery from recession since the mid '60s. it hasn't cured the problem we set out with. government policy reducing underwriting standards causing a lot of people who can't sustain a mortgage, can't pay a mortgage to get homes of the we go into the same cycle again, have more failures and another crisis. david: you used to work for the treasury department. you're familiar with looking at accounts who has what, what kind

we want you to reduce your underwriting standards to 3%.tty soon, if the government wants to stimulate yet more housing they will reduce them down to zero% down paints. the point is, the government has tremendous incentive to reduce underwriting standards in order to boost the housing market. david: here's the dilemma. if in fact interest rates move up, we know they will move up, the government is on the hook for these very low interest rates, going, 10, 15, 30 years, what happens to the government's holdings? what happens to the government's mortgages? >> it will be, we'll have a serious problem here. not only is fannie mae involved in this but the fed has been buying fannie mae mortgages, fannie mae mortgage-backed securities. as a result if interest rates rise those will decline in value too. david: i know the answer to this, but obviously the taxpayer will be put on the hook. >> of course. david: how much do you think this will cost? could this be worse than the last financial crisis? >> last financial crisis had occurred in the private

off the risk to the underwriter in?we have an underwriter that provides the backing for the policy. >> do they get tell you are able to assess very different risk profiles based on different usage? >> this being the dominant factor for insurance has been known for quite some time. there are a number of research been done in early 2000 about this. they understand the rest just like we do and are able to build a policy perfectly based on mileage. >> i presume drivers getting more accidents and the average driver because they are on the road so much more. does the behavior skew differently when they are not driving for uber? >> the important distinction is the big difference for an uber driver is the time on the road like you mentioned. so there is a commercial policy for that. >> dr. dan miles, thank you very much. we will be right back. ♪ it's frustrating being stuck in the house. good thing xfinity's got 2 hour appointment windows. they even guarantee they'll be on time or i get a $20 credit. it's perfect for me... ...'

. ♪ >>> box underwriters kicking off their coverage of the file sharing site this morning. now shares are taking a hit, down by just about 3% or a little more than that. as we have neutral ratings or roughly neutral ratings from raymond james, jpmorgan, morgan stanley, wells fargo, credit suisse which was an underwriter of the company's ipo rates it outperform. joining us is an original backer of box, hercules growth capital founder chairman and ceo manuel enriquez. good to see you here. >> thank you for having me. >> given the ratings seems like there's a tepid view of the company from wall street, but you notched a record on realized gain on the ipo. >> look, i think that box is going through a growth phase that has to justify its valuation and prove out the business model to sustain the growth and convert the user base into a revenue that is sustainable and prove that can scale the business. i think that's a challenge for many companies that go public in today's market with what i consider to be a healthy valuations out there. it's going to be up to them to execute on th

we are helping to push credit scoring and underwriting into the 21st century.mily: you spend a lot of time thinking about big problems that you can solve and you have been pretty outspoken about the lack of -- why aren't you working on flying cars and rocket ships? max levchin: i try to find places where i can add value. i don't know much about jet propulsion and engines. i am not sure rocket ships are my forte. i really like math. my idea of a good time, until very recently when i had kids, was still curling up with a book on probability theory. applying that passion and that love for numbers, to places where numbers can make a huge difference, such as consumer finance, health care. emily: you mentioned your kids. you are very passionate about your work and your hobbies. what kind of parent are you? max levchin: i hope i am a good parent. my number one worry these days is if i am as good a father as i can be. my wife has now determined that not only am i a nerd, my son is a nerd. i am very happy about that. he is a four-year-old that loves arduino. he already

plus terrorism with, his massive insurance portfolio, what will he underwrite and what won't he touch? here we are with warren buffett, 50th year of running a company. $10,000 invested back then would equal 170+ million dollars. >> something like that. >> you did a lot for yourself. >> it's working out okay. >> when you were starting back then, you were literally going door-to-door, asking friends and family for money. >> i started the partnership in 1956, that was $105,000 from primarily the family, my roommate from college was there, too. >> they took a bet you on? >> i'm not sure why. i stopped at woolworth's and bought a ledger for 98 cents and we had dinner and entered contributions and went over the ground rules and went from there. >> aunt katie, you had to hit up family. how much did aunt katie give you? >> i think aunt katie probably gave me, it was in a couple different installments over time. maybe $20,000 or something. >> when she died, may she rest her soul, what was that worth? >> i think probably may have been worth a couple hundred million. i'm not sure. >> couple hund

as history repeats itself, underwriting standards are being thrown of the window. the data is overwhelming that there is a direct correlation between payments and foreclosures on the one hand. finally, they have announced they will begin siphoning off taxpayer funds to fill government housing sludge funds. all the while, fannie and freddie remain ridiculously leveraged. the best affordable housing row graham -- it is time to grow our economy from main street up, not from washington down and time to get off the bailout cycle. it is time that hard-working middle income families and greater opportunity to achieve financial independence and the opportunity to buy a home they can keep. >> thank you mr. chairman, let me welcome my friend and former colleague bill watt. in the years since you became head of the federal housing and finance agency, you have taken steps to make sure the housing market is up or double and works for everybody. it is 38 billion dollars more than the treasury invested. i think it is fair to say that our actions prevent a total collapse have been

forms of birth control they view as causing abortions, based on religious couldn't be forced to underwrite the costs of those particular forms of birth control. in the wake of that just a couple weeks after the decision i want to play a little bit of when the rabbi had to say about his view of that decision. >> the real problem is the hobby lobby case. by giving religious exemptions to a broad category of employers, millions of employers in this country and allowing them to make religious claims to discriminate on the basis of religion, this is deeply deeply troubling. there's no end to the claims that can be made. >> okay. tony, so the new ambassador at large for international religious freedom is deeply troubled by the hobby lobby decision granting religious freedom here in the u.s. >> which even the supreme court ruled in favor of 5-4 that business owners have a right to operate their business according to their faith and not be forced to underwrite drugs that can induce an abortion. this is troubling. again, he -- this would suggest that he shares the president's view of the freedom of

and we also incorporate the nist framework in the underwriting questions that we pose to our potential insured. so we hope through that that's going to really create some standardization, some benchmarking, as ajay said. >> ajay and peter do you think we need framework 2.0? >> absolutely and three, and four and five. it's going to have to be iterative. >> evolving all the time. you have a risk road map and you have created what i would call a storm for everyone who talks the same language. where a little while ago in cybersecurity we were not all talking similar language. it's a really good first step but if we sit on this right now the other guys are moving way too fast. the guys you're trying to protect from are moving every day. every minute. right now there are people trying to hack into our companies. right now. and one of those idiots might succeed. that's the fearful part. and what you have to be careful of is that you are being able to stay agile enough to protect yourself, and not think that there's one framework to solve every piece. >> that's the over all issue, is that with

detector, make sure it is undler underwriter laboratory and then there's this combination smoke alarm and c.o. detector with a ten-year warranty for about $30. >> it's the cheapest insurance policy you'll ever buy. >> reporter: a dangerous level is anything above 30 parts per million. >> it's the shortest exposure time that is going to get you. >> reporter: symptoms are headache, nausea and fatigue. new construction requires a hard-wired and battery backup detector and there must be at least one on every level of the home especially near the bedrooms. >> it is really the only way you can detect the presence of carbon monoxide. >> reporter: test your detectors with a simple press of a button. like smoke detectors, you should test c.o. detectors once a month and replace the batteries twice a year. they could save your life. in upper marlboro erika gonzalez news4. >>> so you know what the powerball jackpot ended up being tonight? >> what? >> $564 million. the numbers have just been drawn. i'll give you five seconds to get your tickets. there they are. >> want me to check yours while you

the prices are high show me why you believe it's not going to do better and why the banks are underwriting on the growth tell me now we've reached manhattan prices why everyone buildings it's going to go the other way and we're not going to maintain it if we maintain it cities like oakland will grow a lot better a than they've been growing and that's where there's on tusk areas i'm going to ask for a be a strong spokesperson. >> commissioners, i understand your passion and i looked at the bay area and the warriors stadium is going to be the best and ton of potential and look at the list of companies that are on page 15 and i go this is an amazing economy we have here i guess - >> i concur so i believe we should be part of it and the recommendation is contrary to that i really wanted to be backed up with more than the simple two or three 0 worldz words amy's scale maybe we should take 60 years worth showing you show me when it went down and why we shouldn't i'll be a happy viewer in the facts prove me wrong i'm happy to say hey that's good information. >> you know i guess where i continued

forms of birth control they view as causing abortions, based on religious couldn't be forced to underwriteosts of those particular forms of birth control. in the wake of that just a couple weeks after the decision i want to play a little bit of when the rabbi had to say about his view of that decision. >> the real problem is the hobby lobby case. by giving religious exemptions to a broad category of employers, millions of employers in this country and allowing them to make religious claims to discriminate on the basis of religion, this is deeply deeply troubling. there's no end to the claims that can be made. >> okay. tony, so the new ambassador at large for international religious freedom is deeply troubled by the hobby lobby decision granting religious freedom here in the u.s. >> which even the supreme court ruled in favor of 5-4 that business owners have a right to operate their business according to their faith and not be forced to underwrite drugs that can induce an abortion. this is troubling. again, he -- this would suggest that he shares the president's view of the freedom of worsh

the pays system and that moons that the rating agency is pleasing its client, the issuer or the underwriter. in that world if you don't please the issuer they may go to a different agency and there's a difference that makes it more possible to switch. >> in this case i mean it's behind the pursue of regulators to say we need a different system a system whereby the investor i want to remind my viewers where they say i don't buy the bonds, securitized mortgages, maybe you did not. maybe the town that you live in did. we heard many of these stories. this affects more people than one might think. has anyone proposed a better system. >> there has been a number of proposals. congress considered ideas such as switching from an issuer pays to subscriber pay system which you may not realise until the late 1960s, both standard&poor's and moody's charged the subscriber, not the issuer. it fell apart with the invention of the xerox machine, making it impossible to change the ratings. we had a subscriber paid system. i think we can go back to variations of that. it requires congress and the f.c.c. focus

they are producing earnings, underwriting terrific credit.eople would argue whether they are underwriting enough. i think they are doing their job. the companies are in good shape. it is a political question. what this congress wants to do with fannie and freddie. that is open for a tremendous amount of debate. >>commercial real estate is another active market. commercial real estate is -- we are seeing pretty significant price changes which supports the end of mental -- underlying fundamentals. the average loan is 10 years old. it is 2015. loans are due today. they were originated in 2005. you have a lot of debt that needs to be refinanced in the next three years. people know there is a refinancing law. it creates opportunity. you have employment improving companies creating earnings. it creates a good fundamental environment. >> how do you make 12%? you can't talk about your returns -- >> we can. that's a big number. >> let's take that or 10% or 15%. ms. priced securities -- they cannot be ms.ispriced by that much. it doesn't sound to me li

olivia: "house of cards.; tom: nobody can get a mortgage. >> underwriting standards have gone up.s dodd-frank compliance. if you are a bank and you get sued, your level of risk aversion has gone up. the pendulum has swung too far in terms of difficulty to get a mortgage. olivia: if ben bernanke cannot get a mortgage. brendan: this is day that you flag. fica scores -- fico scores, five years ago they were in the 710's. we are used to seeing homeownership as a public good. it increases property value. do we need to re-examine the obsession with homeownership? >> that's a loaded question. >> it is the only kind we do on friday. >> the pullback would be dramatic. talking about changing the tax code so mortgage interest is not deductible. the market where fannie and freddie make deliveries has a government backstop. there is huge foreign ownership --. to make that change, we are kind of in bed with this. brendan: that is kind of a conservative answer. real-world frictions are huge. olivia: life, liberty, and the pursuit of happiness and a mortgage. >> house prices improved. some level

there's very little underwriting.t would be with one loan, the loan given to parents, the parent plus loan. we do not have any numbers as to what is going on, whether these loans are subprime or not. we do know that subprime borrowers do not have a difficult time getting federal loans. private student loans are a different story. those loans that are given out by banks and other private lenders still do require high credit scores in order to get those loans. pedro: here's gilbert from alabama. good morning. caller: good morning. i read a number of your articles in the wall street journal and i am interested. you made mention of the fact that about 3% loans. -- 300% loans. i'm a community investment advocate in the city of birmingham. credit is fairly new to mean. . i have to buy things to keep myself going. there are people who have these high credit scores 750 two 850 they do not have to go out here -- what i'm saying is come until lately, lending tree, they're competing to big banks. the competition is small banks.

and that includes the book program to underwrite the translation of the publication of millions of books and journals that were sent across the iron curtain. literature including joyce hemingway and also books on art history, economics psychology, sociology. it was described by one of its participants as a marshall plan for the mind. it deserves a full history. i got the cia documents in the regular mail to my home in northern virginia in august of 2012. it was a thrilling moment. what was most striking about the material was the enthusiasm of the officers writing about doctor zhivago and internal memos. here is the soviet russia division chief writing in july 1958 when the printing operation was already underway. quote, pasternak's humanistic message that every person is an title to a private life and deserves respect as a human being irrespective of the extent of his political loyalty, our contributions to the state pose a fundamental challenge to the soviet advocate sacrifice of the individual to the communist system. there is no call to revolt against the regime and an awful. but the

organization at the weakest link in the chain weapon also incorporate the naist framework in the underwritingstions way pose to our potential insureds. we hope through that that's goal to really create some standardization, benchmarking. >> do you think we need framework 2.0? >> absolutely. >> and 3 and 4 and 5. it's going to have to be iterative. >> evolving all the time. you have a risk road map and you have created -- for everybody to talk the same language in cyber security they were not all talking similar language. it's a really good first step but the other guys are moving too fast. the guys you're trying to protect from are moving every day. right now there are people trying to hack into our companies. right now. and one of those idiots might succeed. that's the fearful part. what to be careful of is being able to stay agile enough to protect yourself and not think that there's one framework to solve everything. >> that's the overall issue is that just a number of agencies and internal parties, external parties, things are moving very quickly, and so where on the real cyber threat, at

>> we have an underwriter that provides the packing for our policies. >> do they get how you are ableassess risk profiles? >> this profile of mileage being the dominant backer for insurance, there are a number of research being done and they understand that risk just like we do and that's how we are able to build a policy perfectly based on mileage. >> i presume uber drivers give it an for because they are on the road more. does the behavior skewed differently when they are not driving for uber? >> the big difference for an uber driver is the time on the road. so there's a commercial policy for that an we are measuring the miles in between. >> thank you very much will stop "bloomberg west" will be right back. ♪ >> i'm cory johnson and this is "bloomberg west ." from google plus do no evil to facebook's plan to connect the planet, it's not enough for companies to just do good. startups start with a social impact mission statement before a business statement but is it just do goodiness? as a recovering new yorker, i was rolling my eyes and somewhat, but it's so true that there are so ma

family acquisitions will continue have a strong overall credit risk profile given our current underwriting eligibility standards and product design. seems to me fannie mae in its filing with the securities & exchange commission has admitted that the program is going to result in loans with a higher risk. would you agree with that assessment? >> i have admitted that today too that possibility exist if you're not careful which is exactly why we're being careful and. that was a third quarter analysis and you notice they didn't announce this until december because we were it putting all of these constraints around them to make sure that we minimized that risk. so -- >> if i looked at when they file a 10-q for the quarter we're in right now, i would not expect to , see something like that. >> you may see something similar. 10 hqs as you know are designed to -- 10-qs as you know are designed to i have got public and people out there the worst possible case. >> aware of the risks. >> right. >> the administration in 2011 released its so-called white paper, entitled reforming america's housing fina

make sure using newest equipment, underwriter laboratory approved make sure you use safety especially around children and pets. >> commissioner before i let you go i have to ask you this question about the alleged scandal in your department accusations of firefighters having sex with a paramedic on duty. what can you tell us or can you update us on the situation? >> basically at this point, it's a personal matter. right now we won't discuss it until we get all the facts and decide what course of action we need to take. once we do that i think we can provide more information. >> the mayor has said it's a complicated issue. we recognize that. is this something that could change department policy? >> oh, it definitely will change department policy. i think you have to always look at ways you can improve your organization. so i guarantee it will change department policy. >> commissioner thank you for coming in today. good luck to you. we appreciate you and your time. >> thank you. >> one super bowl ad last night focused on the serious subject of domestic violence. take a look. >> is there

the group says it will not go along with being forced to underwrite and ad dman would have the company's brand themselves assess liars . . -- as liars. ordering the cigarette company, in 2006 to admit publicly they lied decades about the dangers of smoking. the company says the statement is overboard and too broad and too misleading. >>> the prince george's county courthouse is closed today. no trials head today it's a either the district court or circuit court in upper marlboro. the district court in high yitsville is open today. bond hearings he there beginning at 1:15 this ank. circuit court bond hearings going on now at the prince george's county detention center. crews are working to repair damage after a pipe burst at the courthouse last week. >>> despite incidents at several metro stations the transit authority is say shoring riders you'll be safe if you're riding a train. there was a smoke report somewhere between foggy bottom and rosalind yesterday. firefighters responded to both stations and said it was likely a mechanical issue. over the weekend, four incidents at metro statio

the government has tried to work around this problem by underwriting the cost of black citizens purchasing farmers who are willing to sell. this program aims to redress injustice but also to develop the rural economy, where the black population lives in conditions of dire poverty. man: our challenge is not just to give people land because there is a demand for land, but to... to... approaching this matter in a fair manner to ensure that people get access to that resource which they will then use to the benefit of the country as a whole. narrator: now, seven years after the transition to democracy, how is land reform in south africa progressing? what successes in securing justice and promoting rural economic development can the government and the people claim? so we are moving towards the westward, the kalahari. narrator: geographer brent mccusker is studying a rural area in the northern province to analyze the impacts of reform. is this true scrub land or is it more savanna? narrator: during apartheid this was a large white-owned commercial farm. in 1995, 396 black south africans purchased

exports are so good the x m bank, a wheat underwrite exports, reauthorize our charter. there are costs to other companies in the same industries that don't yet -- subsidies are added disadvantage. the best example, delta has been raising the roof about subsidies to boeing. boeing's customers like air india or ethiopia, subsidies from u.s. taxpayers are subsidizing the competition of u.s. carriers and delta has made a big deal about it but there are $50 billion of subsidies over the last seven years in manufacturing. each of the manufacturing beneficiaries as a dancing customer and these customers are put at a disadvantage the way it dealt the is. i am hoping the bank is not reauthorize, its life is through june 30th and that is something we standing for. we wrote about it in one of the papers the 140th congress. i will stop there. thank you. [applause] >> we have time for 0 some q&a. there's only one rule and that is to express your question in the form of a question. otherwise we are ready to go. >> i have a question to follow up on the import export bank. they believe

i think travelers, trv, because that guy knows how to underwrite. let's go to rod inn in florida. jim. longtime listener. >> excellent. >> caller: my stock is ship finance. i'm looking for something for income income, not worried about the growth. >> geez, i tell you, i can't be as confident. when i think of income, i think of the kmi because rich kinder has game and even down here at 48, 50 even 35 he's still going to give you that deal. let's go to jim in illinois. jim? >> caller: jim, first-time caller from chicago, home of the blackhawks and white sox. my stock is watsco. >> my friend turned me on to that stock about 100% ago. you have got a winner on that one. terrific. and that ladies and gentlemen, concludes the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. >> caller: jim, a big boo-yah from the palmetto state. >> great barbecue, what's going on? >> caller: greetings from buffalo, new york. >> oh, man, my friend biebs is going to love this phone call. what's up? kurt in idaho. kurt? wow, kurt pick me up. whoa. >> caller: been watching you

we're basically underwriting the asset, not the individual.can wire people up to millions of dollars within hours. >> aitken's million dollar idea from a pawnshop. unlike your garden variety pawnshop his company, clients, and assets are several cuts and karats above. >> we've done oscars grammy awards guitars from famous musicians. very expensive classic cars. it's a new category in lending. i think we've done that. >> behind steel bolted doors in warehouses like this from l.a. to new york to london borrow stores these luxury assets. not just diamond bobbles and bangles but fine art, sculptures super bowl and world series rings and even this jacket worn by the notorious b.i.g. ♪ before he was murdered in 1997. aitken said he gave $2,000 for the jacket the owner never paid him back. here everything has a price. as much as 4.9% in interest per month. that's 60% a year. >> there is a lot of trust supply for people to deal with us. we take possession of people's assets. these are assets that they want back. if we get to the point where we're selli

. >> when shopping for a co detector make sure it is underwriter laboratory or ul listed. these detectors have a seven-year battery life and will likely run you about $15. then there's this combination smoke alarm and co detector with a ten-year warranty for about $30. >> it's the cheapest insurance. symptoms are headaches, both new and existing prince george's county homes must be at least one co detector on every level of a home. especially near the bedrooms. >> it is really the only way you can detect the presence of carbon monoxide. >> test your detectors with the simple press of a button. like smoke detectors, you should test co detectors once a month and replace the batteries twice a year. they could save your life. all right. here's another safety fact. all new gas appliances should be installed by a master plumber, somebody that's got specific qualifications. the washington suburban sanitary commission requires they require a permit and inspection after it's installed in prince george's county and moushs moushs. for answers to any questions you migh

the underwriter in "the atlantic monthly" in 1928 who wrote "the older generation has certainly pretty well ruined this world before passing it on to us. so what to do. hold on. hold on to what has previously been understood to be the truth. hold onto what you have always understood to be the truth." about race relations, about gender relations, about the limited role government should play, about the limited power of workers, about what art should look like, what music should sound like, and how literature should read. hold on. let's stop there. all right. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [captions copyright national cable satellite corp. 2015] >> join us each saturday at 8:00 p.m. and midnight eastern for classroom lectures from across the country on different topics and arrows in history. lectures in history are also available as a podcast. visit our website -- www.c-span.org/history/podcasts or download them from itunes. >> sunday afternoon at 4 p.m. eastern, join us for "reel am

so obviously we're seeing a return to loose underwriting standards at the agencies. i'm sure, director, you've read one of the largest banks in the country publicly statemented a 3% down payment loan is too risky for them to originate. and yet here on the other hand, you have agencies you're instructing them to take on more risk than the largest two big to fail banks. every day we read in the paper how wall street banks are greedy and risk taking but it would appear that in this situation that you're doing just the exact opposite of what they're doing they're being more prudential and you're saying, as someone else once said, let's roll the dice, but the difference here is we're rolling the dice once again with the taxpayer money as opposed to private investors. is that wise to do. to be riskier than the -- >> let me clarify i haven't instructed any bank to make any loans that they think -- >> not the banks, you're instructing your agency to -- >> i've instructed that fannie and freddie that they can guarantee loans that are made responsibly that fit our criteria. th

underwriting article 5. my own belief is we should be doing more to help the ukrainians defend themselves. >> thank you. >> again i want to thank the panelists. i appreciate your great service to our country and the joint statement. very helpful when we get those kind of joint statements. we've been discussing a lot of the challenges, certainly that we have as a country in terms of national security. we also have a lot of strengths. one of -- to me the ultimate strength that we have is the men and women in uniform who continue to volunteer, raise their right hand, post 9/11, so they know what the risks are to serve our country. i've had the great honor. i get to spend a lot of time with our troops. i'm sure that was a great part of both of your jobs. and just in the last two weekend i was at national training center a couple weekend ago with thousands of young alaskans soldiers training out there. and this past weekend i was with a smaller group of marines reservists. and this time with troops for me raises

was somewhat responsible because they overlooked the fact that fannie was beginning to relax its underwriting guidelines. they were beginning to buy loans that they said they wouldn't buy. they didn't accomplish that with a change in the law. they accomplished it with variances. i guess my question is, what are you all doing to see that the agency doesn't go around the rules again? they were being pushed not by the white house. as you said before, you're independent from the white house. i wonder if you're independent from us. it's members of this body who are pushing for the relaxing of those standards so that people can get loans. i hear some of the same language today. what are we doing to make sure this doesn't occur again? >> first of all, at that point, fannie and freddie were not in conservatorship, and so the regulatory role was a lot looser than the conservatorship role that we are playing now. we're involved in virtually every decision that fan sandee freddie makes, and we take very seriously our statutory mandate both to do things safely and soundly and to do things in a way that w

what we did not want to have happen unfortunately for lenders to become so lax with their underwritingtandards, letting consumers in that are too risky for types of debts. the debts they're defaulting on auto loan and student loan. those are worst type of debts because, auto loan is secured. means they get your car after a couple of months. student loan, unless you die, you're going to end up having to pay it back because statutorily not disclarkable unless you have a incredible heartship to convince someone you got. gerri: as much as you want you can't get rid of it. >> that's it. gerri: cars and student loans. not mortgage, right? balances are not quite as high as the things that brought down the economy in 2008 but still can be a drag on the overall economy. what do you say? >> student loans are the biggest risk with student loans is that most of them are taxpayer-backed. last year we saw $22 billion short fall in the federal student loan program, that added directly to the national debt. and you know, that the debt is already over 18 doll trillion. with 1.2 trillion in potential li

follow through on the reassurance initiatives for nato on our posture, bolstering our posture, underwriting article 5. and my own belief is we should be doing more to help the ukrainians defend themselves. >> thank you. thank you, mr. chairman. >> senator sullivan. >> thank you, mr. chairman. and again, i want to thank the panelists. i appreciate your great service to our country and the joint statement. it's very helpful when we get those kind of joint statements. you know, we've been discussing a lot of the challenges certainly that we have as a country in terms of national security. we also have a lot of strengths. to me the ultimate strength that we have is men and women in uniform who continue to volunteer, raise their right hand, post-9/11 so, they know what the risks are to serve our country. i've had the great honor, i get to spend a lot of time with our troops. i'm sure that was a great part of both of your jobs. and just in the last two weekends i was at the national training center a couple weekends ago with thousands of young alaskan soldiers, training out there. and this past w

for alibaba, they did not have the financing, the underwriting, servicing in the u.s.do this on their own. so it's a really good partnership that combines the strength of each marketplace and benefits all of our customers. >> well, it is true, renaud, it will help u.s. businesses source products potentially more cheaply through alibaba venders. there will be critics who say you're taking this business away from u.s. suppliers that may be already were supplying some of the small businesses with these parts. what do you say to critics and say to people who raise questions about quality control? >> yeah. i mean, the alibaba platform has been in operation for a while and it's designed to buy goods from china. that's what it does. in terms of quality control, i think alibaba is very focused on providing as much protection as possible to u.s. buyers and at the same time they offer the financing for lending club, they are offering a new program which is a buyer protection called insurance that's allowing them to guarantee both the delivery and quality of the goods. >> hopeful