fannie mae and freddie mac were implements. they were tools in the hands of congress and the administration both the clinton and the bush administration and it was hud that was -- the department of housing -- >> which is a cabinet agency. >> housing development was bringing through the mandate and being tough because there was a lot of very good political use in there for the administration to say we have serving. and in the case of the bush administration, yes, he wanted. bush was favorable to the idea of home ownership. and in his memoirs bush said he was delighted with low income people able to buy homes and the home ownership was rising but i didn't realize the risk we were undertaking at the same time. he kind of apologized in that way for what his administration did and i think that was the right way to do it. they did not realize the risk they were introducing into the housing system and ultimately into the entire financial system by forcing fannie mae and freddie mac to buy mortgages that were not well grounded. >> a co

they didn't have fannie mae and freddie mac. what happened in those countries versus what happened in the united states? >> guest: that's been one of the major criticisms and i've always found it relatively easy to address because it's been looked at by a number of people. one is a professor at berkeley by the name of dwight jaffe who has done quite a study of what happened in other countries particularly spain, ireland and the u.k.. his conclusion was yes they have bubbles they are. i can't say why they had doubles. they have bubbles they are but minor bubbles collapsed the country with the greatest losses at that point were in the u.k. and they had losses of about 3%. in the united states fannie and freddie which had up all the layers had the fewest bad mortgages. they had many, enough to drive them in solvent that they didn't have the worst of the worst their losses were between 13 and 17%. and for other firms banks and so forth that were holding these bad mortgages their losses went up to 35 and 40%. the fact is then that in

they didn't have fannie mae and freddie mac. what happened in those countries versus what happened in the united states and why do you see the -- >> guest: that's been one of the major criticisms, and i've always found it relatively easy to address because it's been looked at by a number of people. one is a professor at berkeley named dwight offany, who has done a study of what happened in other countries, particular he the spain, ireland and the u.k. his conclusion was, yes they had bubbles there. i can't say why they had bubbles. they had bubbles there. but when their bubbles collapsed, the most -- the country with the greatest losses at that point were in the u.k. and they had losses of about three percent in the united states fannie and freddie which had of all the players had the fewest bad mortgages they had many, many enough to drive. the insolvent but didn't have the worst of the worst. their losses were between 13% and 17% and firms, banks and mortgage -- their losses went up to 35% and 40%. the fact is in the united st

ambassadors from many nations are here to see food from freddie mac fukushima is safe. it included edible wild plant tempura, grilled game fowl and locally produced sake. the governor told the gathering that his prefecture faces many obstacles, but he said he's determined that the word "fukushima" will once again be displayed with pride. organizers said authorities are thoroughly screening locally grown rice for radiation. they stress that food with radiation levels exceeding government standards would never be allowed on the market. >> i think it's important for people to understand the real situation. >> translator: if taiwan and japan can reach a reliable understanding on the safety of food through further talks, it would be possible to lift the ongoing restrictions. >> reporter: officials from japan's foreign ministry say nine countries and regions still ban imports of products from fukushima's farms, forests and coastal waters. they include south korea, china, and taiwan. they say 59 other countries require certificates of radiation inspection. authorities in fukus

also fit the may freddie mac i was too sanguine about fannie mae and freddie mac but by then in 2004 made me nervous then george bush since use of the increased the number of homes they bought below median income. by 2005 i joined the republican chairman to pass a bill in the house in the committee but it passed the senate republicans did not like it but i tried to work it out so the chairman of the of committee that nothing that happened with kidney or freddie said comet 2007 to become the chairman of the committee that haik paulson testifies with chaney's memoir is said the last time one of your officers so people know that is a washington read the. [laughter] and i can tell you all the politics which is benjamin franklin. sova chase says in 2003 we submitted a bill but financial-services committee chairman barney frank the problem was a was not chairman. nine tel 2007 and the house was run by tom delay. and they said if i was really at that time i had power but there are the things it would have done. i would stop the big tax cuts tell him not to look at the stars and i tell him i

most recently from damage caused by fannie mae and freddie mac. thank you very much. [applause] [inaudible conversations] [inaudible] first of all let me say how much i really enjoyed the book. obviously some of the issues dealing with finance or close to my own heart having spent my time on the hill trying to work on financial issues. but also my dissertation work was on radio two areas during the progressive era. i found that chapter to be very much adventuress. the subtitle of the book is sort of device at the government and i think it really is the book less about the size of government than about the structure of government. in fact, if you read this book and immediately read marxist historian classic tribal conservatism you'd be hard-pressed to find a difference on the errors. i would suggest a site of a government that title might be off putting some of my friends on the left this is a book at anyone in the political spectrum would enjoy. it's a great introduction to the history. some of my critiques would be again this will reflect my biases as an economist. t

george bush ordered fannie mae and freddie mac to substantially increase the number of loans they bought for people below the median income. for 2005 i joined the republican chairman passing the bill in the house and the community. it passed the house. the senate republicans did not like the bill. tried to work it out have a ministration pulled the plug the chairman of the community was asked why nothing ever happened said george bush give me the one finger salute. 2,007 have become the chairman of the community and we passed the bill. and cheney's memoir the last time. some people them. [laughter] i can tell you politics mentioned benjamin franklin. [laughter] [laughter] >> there it goes. turn to my name. he says in his memoir in 2,003 we submitted a bill to reform fannie mae and freddie mac but barney frank killed it. the financial chairman of the house is being run by that time by tom delay. if i was really giving orders i would not -- there are a lot of things i would have done, stopped the big cash price and told him to go on dancing with the stars. [laughter] i said in the book in

find out why dick bove is bullish on government-owned fannie mae and freddie mac. he's going to team up with charlie gasparino in a very exciting discussion, i can only imagine. and it's a new type of house call. doctors who can diagnose patients via skype. are you a believer in this? we're talking to doctor on demand ceo on a new start-up. ♪ ♪ ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world, to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. liz: breaking news, the house has apd a year's worth of funding for homeland security. the news is that the house has passed the bill that would fund the the president of homeland security -- the department of homeland security for the rest of the fiscal year, that, of course, would avert a partial shutdown of homeland securi

so having outlined my theory i briefly want to tie fannie mae and freddie mac into the story as i think it illustrates this point. for the sake of brevity i'll assume you're generally familiar with fannie and freddie. the bottom line is they combined unsafe, unsound financial practices with an unprecedented lobbying operation to protect their investors and pad the bonuses of their executives. to hell with the credit risk, was their motto. for those who study the subject fannie and freddie are government sponsored entities. they're not part of the government. they are instrumentalities of the government. they're private corporations with pentagon public charters. the first and second banks of the united states, the experience with the banks, the second bank in particular, is eerily similar to the experience of fannie mae and freddie mac. normally when we think about the second bank of the united states, we're wont to think of nick rat biddle very far-sighted financier and we tend to think of the bank war where in my opinion andrew jackson comes across as much worse. but that is as far as

i was too sanguine about fannie mae and freddie mac. i started to get nervous then george bush this is in the appendices. he was substantially increase those below the median income. by 2005 by joining the republican chairman to pass a bill in the house in the committee i had problems on the floor but a pass the house the senate republican did not like it but the democrats did. put the bush administration would pull the plug and ross -- and with sarbanes-oxley they said george bush gave me though one finger salute. 2007 i become the chairman and we pass the bill. . .

charles: we've got breaking news on fannie mae and freddie mac. future profitability is far from assured from the housing finance agency of the inspector general who went onto point out these firms could chalk up losses on a derivatives portfolio similar to those they reported in the fourth quarter. this news was obscured by a lot of other events today, but nothing really should make your hair stand up more than the idea of another bailout for fannie mae and freddie mac. how could this be? net revenues while they were down 83% still 14 billion from 84 billion. they've been making a lot of money and the loan loss reserve of 61 billion down to 37 billion. it's a sign of confidence, but, in fact, if you want to see more, fannie, take in more risks. they are issuing out or back more of the loans with lower fiko scores under 660, 7% to 3%. lower loan to value. it's pretty clear that if they're in trouble, they're not acting like they're in trouble. here's the thing. fannie mae paid the u.s. treasury department 136 billion dollars since they were bailed

he's now in charge of regulating fannie mae and freddie mac. >> then you can insure that a 3% loan is just as safe as a 10% down payment loan. john: really? a 3% down payment is as safe as a 10% one? how can that be? neither mel watt nor the secretary of housing would talk to us about the government's eagerness to give your money away, but we're fortunate that former fha commissioner david stephens will. he says in his two years serving under president obama he made the system safer. but not safe enough, says ed pinto, who studied housing risk for the american enterprise institute. he says we're on the way to another bubble. >> the government is once again doing the same thing that happened in the early '90s which is saying let's loosen credit, let's give loans to people that potentially can't afford them, and everything will be fine because house prices will go up, and we won't have the same problems we had before. that clip you had -- john: they don't promise they'll go up anymore, but they're just saying if we're careful, it'll all be fine. >> on the careful point, we looked at the

the fha, federal housing administration fannie mae freddie mac all put tax payer money is the risk by granting mortgages or buying them. these invite reckless behavior guarantees on top of politicians pressuring banks to long under served needy people they led to the last housing bubble. >> they owed more on their mortgage than the home is worth. >> incredible housing bubble they created. >> it was incredible a speculative frenzy. otherwise investors started saying housing prices can only go up the prices went up wildly until they didn't. the popping of the bubble is bad lots of people lost lost of money. we learned something from our mistakes. at the tell them you only have to put 3 percent down. except actually government is now doing that again. a few months ago fanny and freddie after raising their minimum down payment to a measly 5 percent lowered them to 3 percent. are they crazy? a sensible congressman tried to get an answer about that from the administration's mortgage regulator. >> all things being equal is a 3 percent down low riskyer than a 10 percent down loan. >> that is

george bush ordered fannie mae and freddie mac to substantially increase the number of loans they bought for people below the median income. for 2005 i joined the republican chairman passing the bill in the house and the community. it passed the house. the senate republicans did not like the bill. tried to work it out have a ministration pulled the plug the chairman of the community was asked why nothing ever happened said george bush give me the one finger salute. 2,007 have become the chairman of the community and we passed the bill. and cheney's memoir the last time. some people them. [laughter] i can tell you politics mentioned benjamin franklin. [laughter] [laughter] >> there it goes. turn to my name. he says in his memoir in 2,003 we submitted a bill to reform fannie mae and freddie mac but barney frank killed it. the financial chairman of the house is being run by that time by tom delay. if i was really giving orders i would not -- there are a lot of things i would have done, stopped the big cash price and told him to go on dancing with the stars. [laughter] i said in the book in

i briefly want to tie fannie mae and freddie mac into the story. they had unsafe and unsound financial practices with an unprecedented lobbying operation to protect investors and pad bonuses of executives. and for and for those who study the subject fannie and freddie are government-sponsored entities not part of the government but instrumentalities private corporations the public charters. my book starts by discussing the corruption inherent to the 1st two the 1st and 2nd banks of the united states, the states, the experience with the bank, the 2nd in particular eerily similar to the experience of fannie mae and freddie mac. normally when we think about the 2nd bank we are want to think of nicholas biddle who was a very farsighted financier. if we. everything beyond him we tend to think of the bank were andrew jackson comes across as much worse. but that is as far as the common understanding usually goes. it overlooks something which is that the bank have been in place for about a decade before bilking on board and was terribly politicized and sel

how could you convince the market that fannie mae and freddie mac are not backed by the full faith and credit. as a law that says they cannot drawn the credit of the united states. they have the secretary of the treasury standing on the steps of the treasury once a year and saying i reaffirm no federal guarantee that their loans always traded with a discount that indicated that the market that they were backed up by the u.s. government and guess what? they were and they got bailed out. but i did talk to a couple of economists who said you know the stocks are loans of the biggest banks also trade at a discount like.com that, indicating that the market doesn't believe the biggest banks would be allowed to go bankrupt and in 2008 we saw these bailouts happening and we saw t.a.r.p.. you can argue that the day the tea party started was the day the bush administration announced it intended to spend $800 billion bailing out the big banks and congress phones rang off the hook with nobody organizing it. congress's phone started ringing off the hook with people saying don't give $800 million to

mac and help families stay in their homes and expresses the intent of the board to negotiate with the banks that sell more of these at risk mortgages to the cdfi's and pose low financial financial risks and burdens to the city and i hope that we can work with other cities to pressure the banks to sell more of these at risk loans and the city councils in richmond california and new ark new jersey have passed similar resolutions and i've been in contact with them and it also urges our mayor to join us in this effort and i hope mayor lee can work with fellow mayors to include other cities to help us pressure the banks who sell these at risk loans and the rest i'll submit thank you colleagues. >> thank you supervisor avalos supervisor campos? >> thank you madam clerk. you know, last week on wednesday at the request of supervisor farrell and i believe supervisor christensen as well, we had a very enlightening hearing at the budget committee to get a presentation on the planning department's efforts to enforce the short-term rental law and so-called ab and b law and it was a very informativ

freddie mac had discovered the work ethic in team spirit of veterans has been wildly successful. project are being done ahead of schedule and under budget and now new teams are getting started. >> really i'm the most excited about the opportunity to have a career with benefit, to work for an organization where i know they will be loyal, i will be committed and we can get the job done. >> thomas smith is just one of the original vets in the program. to learn more about how this has helped his life go to the nbc washington app and search "veteran." >>> well it's here march madness is under way, folks. georgetown and vcu playing today, virginia and maryland tomorrow. carol maloney is with the terps tonight as maryland hits the practice court for the first time. >> reporter: the road to final four begins from here columbus. maryland has made it. you know that saying it's great to arrive but the trip is always the most fun, that seems to be the case for photographer chris kerwin and i. like a lot of fans we decided to drive, leaving the nbc studios in d.c. supposed to take six hours.

. >>> fannie mae and freddie mac fell by over 80%. raises the question of whether they're another bailout on the horizon. and how the u.s. taxpayers would react to something like that. joining us now is david stevens he is president and ceo of the mortgage bankers association. thanks for being here. >> good to be here. >> so fannie and freddie have been placed in conservatorship and 2013 was a great year for them. they gave billions of dollars back to the u.s. treasury. 2014, not so great. there is an issue where they have to draw on the credit lines of the treasury if they fall below a certain threshold. >> that's right. if you think about the earnings unheard of with any in the world. those at one times were asset recoupments. and recoupments of reserves, legal settlements, those types of things. what we saw in the last drop was what we think will be returning their levels would be. that's certainly not sustainable for two companies that have no capital and are dependent on the lines of credit the treasury department holds. >> we kn

the purpose of the guarantee fee is to offset fannie mae and freddie mac credit from defaults. if you use the guarantee fees to offset new spending, you are doubling the revenue. in december of 2011, congress passed a two-month extension of the payroll tax cut that was offset by increasing the gp's for 10 years. this was simply a tax increase on folks in the united states who pay mortgages to justify congressional spending. additional attempts were made to use the extension to cut offsets in other legislation. directing the guarantee fees to the treasury department rather than protecting taxpayers from mortgage losses was used because it technically brings in a new source of revenue. any increase of guarantee fees should be used to protect taxpayers from mortgage losses and as a repayment for the bailout, not for a gimmicky offset. that's why i'm offering the scorekeeping amendment with senators warner, corker, and markley, to ensure that transfers from fannie mae and freddie mac will not be used to offset increases to the deficit. it is one, a congressional mandated can only b

mac are backed by the full faith and credit of the u.s. treasury, even though they swore they were not. we pondered in a study we did some years ago how could you convince the market that fannie mae and freddie mac are not backed up by the full faith -- there's a law that says they can not a draw on the credit of the united states. you have the secretary of the treasury stand on the steps of this treasury once a year ask say, i reafirearm no federal guarantee? but their loans always traded with a discount that indicated that the market thought they were backed up by the u.s. government and guess what they were and they got bailed out. but i did talk to a couple of economists who said you know the stocks or loans of the biggest banks also trade at a discount like that, indicating that the market doesn't believe the biggest banks would be allowed to go bankrupt, and indeed in 2008 we saw these bailouts happening. we saw t.a.r.p. you can argue that the day the tea party started was the day the bush administration announced it intended to spen

mac. >>> baseball is in talks with news organizations about hosting news content. this would mean facebook users could view soers without clicking out of the site. the new york sometimes reports this idea is being tested and will likely roll out in a few months. the official marters in are expected to be times buzz feed and national geographic. >>> a monthly subscription fee service is the latest venture the founder of hulu, vessel is like you tube, but with a price tag. it provides early access to videos from performers. again, it is a monthly subscription fee under $3 a month. >>> congress is moving to make it easier for you to switch carriers for your cell phone and other electronic devices. >> 7 on your side's michael finney is here looking into the iske issue. >> this is big for consumers and for the valley. should buying a cell phone or tablet from one carrier mean you should have to stick with that carrier? several members of congress, including silicon valley congressional represent lark ib and ash you say no. they introduced a bill today that would allow c

the purpose of the guaranteed fee is to offset prospective fannie mae and freddie mac credit losses from borrower defaults. thus, if you used the guaranty fees to offset new spending, then you're doubling, doubly counting the revenue n december of 2011, congress pass ad two-month extension of the payroll tax cut. that was offset by increasing the g fees for 10 years. this was simply a tax increase on mortgage, folks in the united states who obtain mortgages in order to justify congressional spending. subsequent to this additional attempts were made to use the extension of this kind of gp as cost offsets in other legislation. directing that the guaranty fees to the treasury department go to the treasury department rather than protecting taxpayers from mortgage losses was used because it technically brings in a new source of revenue. any increase of guaranty fees should be used to protect taxpayers from mortgage losses and as a repayment for the bailout, not for a gimmicky offset. that's why i'm offering this score keeping amendment with senators warner, corker and merkley to assure transf

prior to joining he was the director of affordable housing sales at freddie mac. please give a warm welcome to mr. barry wides. [laughter] our next justices civil rights entrepreneur -- just is -- guest is a civil rights entrepreneur. he is also the best-selling author of two books, his most recent top 10 book for 2014 for "essence" magazine and for "ceo read and business strategy." it is the only definite is the best-selling -- please welcome mr. john hope bryant. [applause] and today i want to thank you very much because we have a special guest in her long list of accomplishments it is more -- and her long list of accomplishment is more than just one alone. she does the chief executive officer of the kingston, and internationally renowned speaker who spoke to the united nations. she is a graduate of spelman college and earned a masters of divinity from emory university. the eldest daughter of martin luther king and karen is stuck in, she continues the legacy of nonviolent. -- coretta scott king, she continues the legacy of nonviolence. [applause] our next guest

mac but just a few weeks ago to told the annual not take risks on mortgages now except the 3 percent down payment up until now their lawyers insisted that the banks take 5% but now to stimulate the housing market with the same problem the government said it really you to except 3% which will be in overtime to exactly the same problem with people have mortgages that they cannot sustain when the cycle turns so we will have another crisis that has the same defect confidential institutions to have something to a financial crisis. we should have understood that it is the government's role to reform the of government rather than trying to impose those restrictions. >> host: will that be different from the last one did? >> there will always be some differences but if we keep calling this way with the government in charge we're about to have a federal judge prices again in what is important to understand this isn't something that is irrelevant to use them because for those who own homes if work is it your neighborhood fail the value of your home is forced to decline. so your own investments

prior to joining he was the director of affordable housing sales at freddie mac. please give a warm welcome to mr. barry wides. [laughter] our next justices civil rights entrepreneur -- just is -- guest is a civil rights entrepreneur. he is also the best-selling author of two books, his most recent top 10 book for 2014 for "essence" magazine and for "ceo read and business strategy." it is the only definite is the best-selling -- please welcome mr. john hope bryant. [applause] and today i want to thank you very much because we have a special guest in her long list of accomplishments, it is more -- and her long list of accomplishment is more than just one alone. she does the chief executive officer of the kingston, and internationally renowned speaker who spoke to the united nations. she is a graduate of spelman college and earned a masters of divinity from emory university. the eldest daughter of martin luther king and karen is stuck in, she continues the legacy of nonviolent. -- coretta scott king, she continues the legacy of nonviolence. [applause] our next guest

mac. by 1994 democrats worried about those loans telling the federal reserve to regulate them. that is an interference in the market. we tried on several occasions the states passed laws to regulate predatory lending. the administration used federal power to preempt that. the state banks become national banks. in 2,004 democrats passed a bill to restrict subprime lending. when i became chairman in 2,007 i did not get a bill through the community. no lending to people who cannot pay you back. the "wall street journal" attacked me. why doesn't he want minority groups to have loans. 2,007. all before the crash. here is what he said i am aware of the loosening of mortgage credit terms for subprime borrowers increases financial risk and subsidized homeownership initiatives distort market outcomes. i believe that has now you have the power to regulate. the benefits of homeownership are worth the risk. protection of property rights so critical to a market economy requires a critical mass of owner

government told wall street, you reap the profits and we'll get fannie mae and freddie mac to stick taxpayers with your losses. they took us up on that and then my colleagues are shocked that they did. it used to be that if a bank made a bad loan, they ate the loss. and they went away sadder but wiser. and if a homebuyer took out a bad loan, they lost the collateral and they went away sadder but wiser, but in either case they left the rest of us alone. the damage was limited to the responsible parties. rather than returning to a market system where lenders and borrows are free to negotiate their own terms, analyze their own risk and make their own decisions with their own money, we institutionalized every folly that led to the collapse by adopting dodd-frank. this is the definition of insanity. doing the same thing and expecting a different result. this budget starts to move us back toward the sensible mechanism of a free market. i yield back. mr. rokita: does the gentleman yield back? the gentleman yields back. mr. lieu, you're recognized. mr. lieu: the cfpb is answerable to congress, the sa

of stack of bibles they were not how can you convince the market fannie mae and freddie mac are not backed up. there is a law that says they cannot draw the credit of the united states. the secretary of the treasury stands on the steps of the treasury wants to hear and says i reaffirm though federal guarantee. but the loans always treated with a discount at the market copy were backed up by the government and guess what, they were but i did talk to a couple economists who said the stalks or the loans of the biggest banks also trade at a discount like that indicating that the market doesn't believe the biggest banks would be allowed to go bankrupt and indeed in 2008 leaseholder bailout happening. you can argue the day that the key party started as the the day that the bush administration announced it intended to spend $800 billion bailing out the big banks and their phones ring off the hook with nobody organizing it. so i'm opposed to too big to fail. they would make their own decisions if they had to stand on their own 2 feet. they would let the banks fail if they made bad decisions

in this environment, fannie mae and freddie mac are buying things -- credit score 620 and above. one single item will probably not sink somebody low enough that they'll be shut out altogether, unless they have some other dents in the car also. so if you've got good credit and proof of income, money for a down payment, that one erroneous payment won't shut you out. it may bring your interest rate higher. >> we should mention, lest you think people that don't pay their bills get a free ride, if you wait 180 days, it's fair game for these agencies to put that debt on your credit rating. right? >> yeah. in the case of the medical debt, absolutely. this is not something that will let people skip out on bills they otherwise owe. it gives that 180 day period, if it's a dispute between the provider -- >> which it almost is. you're almost always in dispute with some part of your insurance bill. it just makes sure that that doesn't interfere with your overall credit rating. >> absolutely. the whole idea is accuracy here. as consumers, we have to do our part too. pull copies of your credit

mac. this created a "house of cards" that collapsed catastrophically. they said you reap the ploftsrofits and fannie and freddie will take care of it. it used to be if a bank made a bad loan they ate the loss and went away sadder but wiser. and if a homeowner took out a bad loan they lost the collateral but went away sadder but wiser but in any case they left the rest of us alone. the damage was limited to the responsible parties. rather than returning to a market system where lenders and borrowers are free to negotiate their own terms analyze their open risk and make their own decisions with their own money. we institutionalized every folly that lid to the collapse by adopting dodd frank. this is the classic definition of insanity, doing the sail thing and expecting a different result. this budget starts to move us back toward the sensible mechanism of a free market. yield back. >> does the gentleman yield back? >> the gentleman yields back. mr. lou you're recognized for one minute to clo

mac. president obama considered her for the post of treasury deputy secretary but porat withdrew her name from consideration. she'll be replaced by jonathan pruzan. that will happen at the end of april. back to you. >> mary thaompson, thanks for that. will a dividend or buyback happen soon? martin joins us on the fast line. martin, great to have you with us. what's your naugthoughts on tha terms of capital return? >> well, i think both of those points are probably a little further off than people might like to think. i cover media entertainment stocks and obviously buybacks are a theme there. i still think google has a lot of growth. i'm looking into this as a positive move, number one, ruth coming in, bringing in more financial discipline. patrick had i think good financial discipline. she'll hadd more but at the sam time not stifle google's investments. one of the attractive things is the fact she has a tech, silicon valley and wall street background so it can be a very good balance. you

i was watching tv the other day and freddie mac -- where you have your housing -- they make money, i don't know what you call it. they took and $40 million extra. i believe it was a democrat asking what jack lew was doing with that money that they began in. he didn't have an answer for him. you know, $40 billion is a lot of money. don't you agree? guest: i certainly agree. there is money coming in from freddie mac and fannie mae -- the government-sponsored enterprises the deal with housing. they were losing quite a bit of money before. they are bringing in money, and that is making the deficit look smaller than it would otherwise. it is going straight to the treasury. host: here is paul. caller: good morning. i disagree with. you, and other people, especially politicians out there in the district of columbia, they say that a tax cut is an expenditure. i don't believe that is correct. that is our money that washington confiscates from oz and redistributes other people. spending on programs like planned parenthood, those expenditures. me keeping more of my money, and other tax p taxpay

also, the federal agencies fannie mae, freddie mac piled up huge amounts of derelict loans. that scam in both the public and private sectors collapsed the economy. so president obama's facts about the recession are debatable to say the least. certainly not in stone truth. and, believe me, you will not hear this analysis on the nightly news broadcast or other cable news operations. you will only hear it here on fox news. not because we dislike president obama although some fnc commentators clearly do. it's because people like charles krauthammer, brit hume, megyn kelly, dana perino and others are fact-based analysts. and that is a clear threat to any politician or political party that's trying to deceive people or trying to promote policies that are failures. so to blunt the impact of fox news we're attacked by the left and derided by the other media you see that consistently on msnbc and cnn, which are both collapsing in the ratings. i mean last night i turned on cnn at 9:00 p.m. to see what they were reporting. i saw anthony bore deign eating soup in india or some place. th

they have the same treasures with fannie mae and freddie mac. they have the same subprime situation, they don't call it subprime. they have a mortgage insurance bubble that is really interesting driven by the cmhc and gen worth up there. that has existed a couple years. in my business it's all about timing. what is the timing to pop that bubble? and we really see oil as the pin to pop the canadian housing bubble. if you look at the canadian provenÇal markets, atlantic, canada, has been soft and unemployment going up for several months, even a couple quarters now, the same is true in quebec very soft, rolled over last year in the middle of the year, but alberta and saskatchewan where the oil boom have been going on have been strong and kept the stats up until now. january like they fell out of bed. calgary home sales listings up 40% and sales down 40% in january alone. never seen such a dropoff. and so if you continue to see soft oil prices you're going to see the beginning of weakness there and because the setup is so leveraged and loss ratios

the budget assumes that fannie mae and freddie mac would be privatized, and it also eliminates the fdic's ability to bailout major financial institutions that go under. he wants to and any notion of too big to fail -- and any notion of too big to fail. betty: still to come, adidas has decided not to renew its deal as the nba's official outfitter which they have been for over 10 years. why the second-largest sportswear company is taking itself out of the game. ♪ betty: trading just under way. we are in the red again on this tuesday morning. scarlet fu has much more on the early action. scarlet: it is a consolidation of yesterday's advances in today's a day of path, and markets are taking a breather before the fed statement tomorrow at 2:00 p.m. i had that, here is what moving. they videogame maker teaming up the kardashians debuting a new game in late 2015. staying with the retail idea, gsw having its biggest gain in half a year. the company boosted its dividend, burlington stores also saw better than anticipated results. linkedin is trading at a five-week low right now after green capit

freddie mac says the average 30 year fixed-rate loan fell below 3.8%. a year ago the average 30 year mortgage was under .3%. -- under 4.3%. the rates are historically low even though the fed has ended its program holding down rates. a touchdown worth nine points? check out this idea from the indianapolis colts. a team would have to trail by 9 points in the closing minutes. if it scores a touchdown and a two-point conversion it is eight point. the colts suggest the team try a 50 yard real go --yard field goal for one more point. we have to take you back to the showdown in brussels. is it a showdown? and more pressure on the greek prime minister to firm up a plan for the economy. what do you really expect from these talks? pomp and circumstance or results? >> germany's angela merkel has played them down. the eu president said a while ago, before the summit started that this is not greece possible last chance. i'm not sure that we expected any big deals or announcements. angela merkel and the other players want to hear what the greek prime minister has to

mac are privatized, and that on the too big to fail front this budget anticipates removing the ability for the fdic to bail out and failed financial institution. stephanie: peter cook, thank you. joe: back to the israeli election, voters are choosing between incumbent brian minister benjamin netanyahu, and a coalition led by herzog. our bloomberg middle east editor is in tel aviv. elliott? elliott: thank you very much. we have the polls closing in just under six hours. great to have you with me. you are quite close to benjamin netanyahu. is he on his way out? >> we think he is on the ropes. the optimal -- outcome will be very tight. the segment of the electorate of that is right of center is larger than the electorate that is left of center. so just and broad numbers of the aggregate vote share that is sympathetic to him and his point of view is greater than the opposition. but it is a fragmented white -- right wing. he has been in power for a long time. he is focused on security issues. those issues have made it a challenging environment. elliott: and if he ends up losing the election

i was watching tv the other day and freddie mac -- where you have your housing -- they make money, i don't know what you call it. they took and $40 million extra. i believe it was a democrat asking what jack lew was doing with that money that they began in. he didn't have an answer for him. you know, $40 billion is a lot of money. don't you agree? guest: i certainly agree. there is money coming in from freddie mac and fannie mae -- the government-sponsored enterprises the deal with housing. they were losing quite a bit of money before. they are bringing in money, and that is making the deficit look smaller than it would otherwise. it is going straight to the treasury. host: here is paul. caller: good morning. i disagree with. you, and other people, especially politicians out there in the district of columbia, they say that a tax cut is an expenditure. i don't believe that is correct. that is our money that washington confiscates from oz and redistributes other people. spending on programs like planned parenthood, those expenditures. me keeping more of my money, and other tax p taxpay