stephen moore, dan grossman and zanny beddoes.: why bubbles are great for the economy." >> this is how we create new infrastructure, telegraph, railroad, internet. we don't sit around and the government says build this line from here to here, people run around and go nuts and build four railroad lines and four telegraph lines and they all go bankrupt. but then someone picks up the pieces, takes that infrastructure and does something with it. when the infrastructure companies went bust, we built the web 2.0 on top of that. when we're not developing any new way of building housing, the benefits are much less. >> is the fed creating a bubble? >> i think there is a certain excess in, i would say, corporate debt. consumers have done a great job deleveraging. they've learned their lesson. but companies are able to issue debt. good companies and bad companies, at very low interest rates and they're doing an awful lot of it. >> stephen moore, conservatives tell me sometimes they're very concerned about all the money the fed is printing an

zanny, what do you think about the housing recovery? is it enough to power an economic recovery in 2013 or is housing still just too small overall size of the economy now? >> you know, in matters of housing i will always defer to professor shillor. it has been horrible for such a long time and there has been a huge, enormous adjustment in house prices. i'm reasonably confident that this turnaround we're seeing is now for real. are we going to see a repeat of the early 2000s when we saw that absolute real estate bubble? i don't think so. and certainly i hope not. that's not what we want. but i do think that housing will contribute to growth and i think it's going to put construction, help consumer confidence. i think it will be a bright spot in the economy this year. there are dark shadows. the most important of those, as you mentioned earlier, is really washington. what happens in washington and how much they cut spending and how fast they do it. >> let me ask you, robert, about the fed. how much credit does the fed get for keeping inte