zandi? >> i think the key statistic for house prices are the homes for sale that are distressed.hare rises prices will fall. the math of it is that prices will fall. i do expect the sales that are distressed will continue to rise through the year. prices will probably bottom out at the end of this year. by this time next year i think we'll start to see some true price stability, in price gains. i think we have to get through this#çÒ last mountain of foreclosed property and on the other side of it i think we'll be in measureably better shape. >> ifill: mark zandi and rick sharga, thank you both very much. >> thank you. >> thank you. >> woodruff: still to come on the newshour: a debt ceiling showdown; a possible cell phone/cancer link; early connoisseurs of the french avant garde; and an embattled president clings to power in yemen. but first, the other news of the day. here's kwame holman. >> holman: the fighting in afghanistan claimed more lives today-- an unidentified nato soldier was killed in the east. and the u.s. military announced three americans died in a bombing on saturd

zandi, mr. brill, part of your testimony, the question about the impact during the period of recovery that manufacturing jobs had, manufacturing as a sector contributed mightily to the recovery, half the growth, but in terms of the job gains, about one-tenth. is that what you said? >> that's correct. one-tenth. if you include the temp jobs in manufacturing, at mows, one fifth. >> just at that posing that or putting that along with this question or point that mr. brill made about productivity, pretty substantial productivity gains, the question i have is how much when you consider both of those, when you consider the productivity gains with that one-tenth of jobs manufacturing contributing one-tenth of the jobs, what has happened with regard to wages? it seems that even though we've had pretty substantial up tick in productivity, i wonder how much workers benefitted from that. what can you tell us, if anything, about the way it -- >> senator, i can't speak to that specifically. what i can tell yo

mark zandi. the chief economist of moody's and analytics where he directs the company's research and consulting services to businesses, government and other institutions. dr. zandi's research includes macroeconomics, financial and regional economics. in addition he conducts regular briefings on the economy. he's frequently quoted in the national and global news outlets. dr. zandi received his ph.d. at the university of pennsylvania. i will stop and pause there for a moment. [laughter] and received his bachelor's degree from the wharton school of the university pennsylvania as well and we are grateful you're here, doctor. thank you very much. .. i'm glad i mentioned both institutions. research asap and is the president and ceo of the national association of manufacturers of aam come the largest manufacturer trade association in the united states, represented on march 90 actuaries and every industrial sector. he became the national association of manufacturers president in 2011, january. mr. sub 10

let me go now to mark zandi, the chief economist with moody's analytics. mark, people want everything. but if we don't raise this dooet debt ceiling, what are we really going to get? does the sky fall? >> yeah, pretty much. we have to balance the budget literally overnight. that means very aggressive, significant cuts in spending. so social security recipients, medicare recipients, they won't get the benefits that they normally get. there will be government employee furloughs. everything the federal government does will be affected and that will affect all of us. the cutting will be so severe that we'll be thrown into another recession. so that means lost jobs, higher unemployment, the stock market, i think, would get nailed. that means we'll all be a lot less wealthy. it's a very dark scenario. >> makes you wonder why the politicians aren't out there, instead of talking about taxes, medicare, spending, talking about the things that could happen if they actually don't do their job. but we'll get to that in a minute. let me bring in jean sahihi. this week,

if there isn't progress by mid- july, mark zandi says, the pressure will start to build, that's when moody's has threatened to lower the government's a.a.a. credit rating if a resolution is not in sight. >> pelley: anthony, has the u.s. government credit rating ever been downgraded and if it is, what happens? >> never happened, scott, if we lose that a.a.a. rating it costs us more to pay off the debt. it's like your credit card company calling you saying "we think you're a greater risk, up goes your rating." >> pelley: thanks, anthony. in afghanistan tonight suicide bombers and snipers staged a coordinated and brazen attack at kabul's intercontinental hotel and the taliban say they were behind it. an important meeting is scheduled at the hotel tomorrow on t hotel's roof. radiation fears have many japanese choosing to leave their homes for good. families of some american troops who died while serving their country are being denied a letter of condolence from the president. and what happened to those promises of ending special favors for special interests in washington? we'll show you

so i'm a buyer of stocks. >> my thanks to economist mark zandi. now back to maria with the rest of the show. >> thank you so much, bill. >>> up next on "the wall street journal report," ending america's dependence on foreign oil. one man who has a plan. my conversation with boone pickens. >>> later, ranking the most creative minds in business today. real growth stories from silicon valley to china to the white house's backyard. as we take a break, take a look at the stock market and how it ended the week. back in a moment. >>> welcome back. boone pickens is a man with a plan. most everybody agrees america needs to cut its dependence on foreign oil. but boone pickens is one of the few people who actually has a road map on how to get there. boone joins me now with a lot more. great to have you on the program, boone. welcome. >> thank you, maria. >> let me kick it off with sort of where we are in the calendar. we're about to enter the height of the summer driving season. where do you see gasoline prices going short-term and over the long-term? >> sho

. >> let me go to mark zandy, the chief economist with moodies anl littics. >> people want everything but in the simplest terms possible, if we don't raise this debt ceiling, what are the people really going to get? does the sky fall? >> yeah, pretty much. we'll have to balance the budget literally overnight, that means very aggressive significant cuts in spending. so social security recipients and medicare recipients, they won't get the benefits they normally get. they'll be government employee furloughs and that will affect all of us. the cutting will be so severe we will be thrown into another recession. that means lost jobs, higher unemployment, the stock market i think would get nailed. that means we'll be less wealthy. it's a very dark scenario. >> it makes you wonder why the politicians really aren't out there instead of talking about taxes, medicare spending, talking about the things that could happen if they actually don't do their job. but we'll get to that that minute. let me bring in jean, a senior writer with cnn money. this week the congressional budget office said we ca

there are two other things that is phenomenal which is under appreciated and number one is the fact zandi electronic book, there is no pass along. you cannot buy a the book give it your relatives so in theory mathematically if you can keep the same number of people reading, may be selling 100,000 copies in physical form, the same number of people read it, you should sell more because they cannot borrow with they have to buy it. for your own consumption. number two, the electronic book should be a global phenomenon with traditional publishing is territorial europe and england and france which are barriers. there is no geographic barriers for the distribution of electronic books and that is the second saying is that there is instant gratification if you want to buy the book on the amazon can go for the i ted you can download in 60 seconds and there is no getting up off the chair to find the book and pay for it to bring it home and all of that is gone. i don't see a downside from a business perspective as well as the present day publishers can manage the transition to control the content. >>

economist mark zandi says, before the recession, we carried 600 million credit cards in our wallets. rsave reducedown to 425 millione household debt by $1.1 trillion. new figures from the federal reserve confirm the progress, showing consumers cut credit card debt in nine of the last ten months. >> so, households are making progress righting their wrongs. >> reporter: but we're literally not home yet. new figures from corelogic show one in five homeowners is underwater on their mortgages, down slightly from the end of the year. and surveys show workers expect their wages to grow by less than 1% this year. and then their are rising prices, falling stocks, and the weak job market. >> any change in those variables and they change their behavior very, very quickly. so, a little bit of bad news consumers, i don't think they pull back, but they certainly hesitate. >> reporter: the key to consumer spending, bernanke says, is employment and the fed chairman is cautiously optimistic. >> i expect hiring to pick up from last month's pace as growth strengthens in the second half of the year. but

zandi, mr.ll, part of your testimony, the question about the impact during the period of recovery that manufacturing jobs had, manufacturing as a sector contributed mightily to the recovery, half the growth, but in terms of the job gains, about one-tenth. is that what you said? >> that's correct. one-tenth. if you include the temp jobs in manufacturing, at mows, one fifth. >> just at that posing that or putting that along with this question or point that mr. brill made about productivity, pretty substantial productivity gains, the question i have is how much when you consider both of those, when you consider the productivity gains with that one-tenth of jobs manufacturing contributing one-tenth of the jobs, what has happened with regard to wages? it seems that even though we've had pretty substantial up tick in productivity, i wonder how much workers benefitted from that. what can you tell us, if anything, about the way it -- >> senator, i can't speak to that specifically. what i can tell you, h

mark zandi, whom we like to quote because he's not a democrat. he was john mccain's economic advisor, paul. he and others, republicans, marty feldstein. >> did you read his op-ed in the "wall street journal"? >> i did not. i did read some of his op eds at the time we were considering what we needed to do to respond to this deepest recession we had. >> forget about what the economists said. look at the results. the economy is flat. >> the economy was put in the deepest recession that we've had since the deep depression of the hoover administration. >> schieffer: you're both reasonable men. you like one another. >> we do. >> schieffer: you personally are friends. tell me something. that the congress could agree on that would make this situation better. where would you start? >> let me say that where i would start is with bowles-simpson. >> schieffer: what? >> the bowels-simpson. >> schieffer: the deficit commission that the president appointed. >> the reason i say we ought to start with that is because we had a process. i wanted to see a statutory

zandi, appreciate you being here as well and i know you see the export market ascii. one key piece of this is as we look at the market one of the things that becomes clear to me and mr. timmons mentioned this we are competing in these markets against companies and other countries that sometimes our new competitors. the of new rules. they've been able to start fresh, and i am coming increasingly concerned with rules and regulations for look at medical device where a lot of the investment is going now because china is requiring country of origin labeling and now no one even guesses two decades ago so because the european system goes faster, one-third of that venture capital money has been going a year or tourism because it takes so long to get a visa to come to america versus great britain we lost 16% of the tourism market since 9/11, not necessarily because we put the security rules in place but we have an adjusted in terms of how we handle those applications. so i just wondered if you could comment about the economics of changing the rules and regulations because we n

we'll hear from the president of the national association of manufacturers and mark zandi. live coverage at 10:15 eastern on c-span3. and then the outgoing head of the federal deposit insurance corp., sheila bair, talks about regulation. she is expected to be taught -- asked about greece's economy. >> the c-span networks -- providing coverage of politics, public affairs, nonfiction books, and american history. it is all available to you on television, radio, online, and on social media networking sites. find our content anytime through the c-span video library. we take c-span on the road with our digital content bus. it is washington your way. the c-span networks -- now available in more than 100 million homes, created by cable, provided as a public service. >> up next, "washington journal," with a look at today's news in your calls. the house gabbles back in this rn

economist mark zandi has estimated that the "hire" act created 250,000 new jobs, a quarter of a million families with a paycheck coming in. and the larger financial incentives this this new bill would continue to dent the unemployment numbers in rhode island and nationwide. the previous "hire" act sponsored by senator senators sr and hatch received wide bipartisan support. and i hope my colleagues on both sides of the aisle will support this act as well. because right now we cannot forget that too many unemployed americans are hurting. too many are out of work, too many are out of work through no fault of their own, indeed, too many of them are still out of work because of the cascade of misery that washed across this country from the wall street meltdown, and there may be a lot of blame to go around on that, but none of it attaches to the workers who got caught in that cascade of misery. and, of course, too many families are struggling just to make ends meet week to week. we must continue fighting for them by using every tool at our disposal, including these new tax incentives-to-, to

mark zandi, who i think it is important to note, was john mccain's chief economic advisor, and now works as an economist at moody's. here's what the democrats and republicans all over the country. -- he's -- he has worked with democrats and republicans all over the country. he said we cannot wait until august. we need to hold a series of meetings, and we are going to do that. next week, on tuesday, the day we get back, we'll have senator conrad, who is were very, very hard, with the people on the budget committee to come up with they way to move forward on the budget. we will meet with him on tuesday. on wednesday, we will have another caucus. the caucus on wednesday will have the administration folks come up. i've invited the president, the vice president. we are confident that they will be able to be here. or, we will go there. also, on thursday, we will have the president's economic team come. gene sperling, and of course others. we need to stay on top of this. these issues are resolved by people meeting and discussing them. i have had a number of senators, both democrats and republic

it will include movies economists mark zandi.lso on c-span3, the outgoing head of the federal deposit insurance corp. sheila bair testifies about financial industry regulations. she expected to be asked about greece's economy and the stability of the european banking system. live coverage gets underway at 1:30 p.m. eastern. >> mr. president, i thank you very much. i feel deeply honored to be nominated to become the 12th director of the central intelligence agency. >> with the senate confirmation hearings scheduled for this thursday, if learn more about general david petreaus through his nearly 50 appearances online at the c-span video library. with more than 115,000 people and every c-span program since 1987, all searchable and free, is washington your way. >> earlier, how secretary kathleen sebelius and food and drug administration margaret hamburg and as new warning labels for cigarettes. then the labels include more information on the dangers of tobacco use and show images of the side effects. this is the first time that the f

mark zandi, the former economic advisor to john mccain when he was running for president, has estimated that the republican budget plan will cost 1.7 million jobs by the year 2014 with 900,000 jobs lost next year aloan. the house republican budget is breathtaking in its degree of cruelty, but don't take my word for it. in a letter to congressional leaders after the house g.o.p. plan was introduced, nearly 200 economists and health care experts wrote, and i quote -- "turning medicare into a voucher program would undermine essential protections for millions of vulnerable people. it would extinguish the most promising approaches to curb costs and to improve the american medical care system." end of quotes. as a columnist at "the washington post" wrote last april, that and i quote "the budget ryan released is not courageous or serious or significant. it's a joke and a bad one. for one thing, ryan's savings all come from cuts, and at least thirds of them come from programs serving the poor. the wealthy meanwhile would see their taxes lowered and the defense department would escape unscathed.