[From the CNN; The Communist News Network Transcripts]
MALVEAUX: So how the president communicates is really being scrutinized along with what he says because the economic recovery is very much wrapped up in how people feel about their future, whether they have confidence in investing and spending again and Americans are looking to him for those cues. But Obama is not only doing the comedy circuit. He is going to sit down for an interview with "60 Minutes" this weekend and I imagine, Kiran, that he is going to get some tough questions.
ROMANS: You know, the president can multitask, this we know.
President Obama isn't letting off the economic stress keep him from making his NCAA tourney picks. He was filling out his presidential bracket on ESPN Wednesday. The president's final four, in case you're wondering, Louisville, Pittsburgh, Memphis and North Carolina. He likes Louisville and North Carolina to play in the title game and has North Carolina as the national champion.
CHETRY: And another uptick in gas prices. AAA reporting the national average price for unleaded regular is now $1.93 a gallon. It's a penny higher than yesterday's price. Thirty-nine states though still have gas prices below $2 a gallon -- Christine.
ROMANS: All right, Kiran, we're on the "ROAD TO RESCUE" this morning, and the Federal Reserve is taking a bold step to try to stimulate the housing market and the economy, frankly.
The central bank injecting $1 trillion into the economy, buying up treasury bonds and mortgage securities to help unclog the credit markets pushing mortgage rates lower. That's good news for your money especially if you're looking to buy a house or maybe refinance. [But causes inflation]
Gentlemen, let me start with you, Ryan. This controversy over the AIG bonuses, I mean, the American people are outraged about this. We find out that Senator Chris Dodd says he's responsible for some of the language in the stimulus bill that sort of allowed these bonuses to go through at the behest really of the Treasury Department, he says. I mean, have the American people kind of washed their hands of administration and Washington efforts now to try to fix the economy because of this distraction?
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Well, I do think that it really impacts consumer confidence. And looking at the administration, you know, Chris Dodd, I'm glad he came out and finally said something, that he, in fact, apologized for that because this administration basically promised us to have transparency, [But only after getting caught] and making sure that we know exactly what our government is doing at all times -- what did we vote for, who changed the amendment, why didn't this law or legislation get amended.
ROMANS: Keith, the president has this town hall last night, where he tried to kind of -- he took the blame for it, but then also said that he didn't create the mess in the first place.
KEITH MCCULLOUGH, CEO AND CHIEF INVESTMENT OFFICER, RESEARCH EDGE, LLC: Yes. I think now they're finally doing the right thing. You finally have Bernanke taking control of the situation. Maybe we weren't doing the right thing when we had Summers and Geithner maneuvering. I don't think people bought into that. Obama is stepping up. And I think as Ryan pointed out, everything is built on confidence, given transparency, accountability and trust which was the message, really something more than just, you know, rhetoric with Bernanke backing it up with a trillion-dollar program yesterday. That's a lot of money.
[Note: consumer debt, and the ability to pay their debts, is the rather large elephant in the room - do you suppose that increasing inflation will help or hurt the debt situation. Does it give extra capital to spend, or restrict it to just essentials?]
MACK: Exactly. Exactly. At the end of the day, 4.96 percent. Rates have dropped down to a total of 30-year fixed rate. This is going to affect your bottom line. The whole crux of this market now is housing prices. Can people afford to purchase homes? And this actually makes homes cheaper for individuals. It shores up balance sheets. It shores up the balance sheets of Fannie and Freddie May. There are risks -- you know, higher inflation, the moral hazards that it might suggests. And in terms of putting more taxpayer's money at risk.
But I think over the long run, this is going to shore up housing prices despite possibly having a $5 trillion balance sheet for the Fed over the next two years. I'm not necessarily sure about that. We're slightly concerned, but I think it's a good move overall.
ROMANS: The Fed essentially printing money, but, boy, there's a lot of reasons why they're doing that right now.
MCCULLOUGH: Right. And they're printing it in the two places that you care -- your home and in your 401(k). So when you do what Bernanke did yesterday, you actually break the buck, where you break down the dollar. When the dollar goes down, everything else that you own reflates. And that's what you need.
You need to -- you know, house prices have to stop going down, that's positive, that builds confidence, and your portfolio can stop going down. We've seen, you know, the stock market go up 17 percent in the last six days. You know, that's going to build confidence. Markets are built on confidence, and I think that's where we need to get.
ROMANS: If we could just buy trillion dollars in confidence and just put it right where it needs to be, wouldn't that be easy and great. Keith McCullough, thanks so much. Ryan Mack.
References;
1. http://library2.akadhmia.org/CNN-AmericanMorningMarch19.pdf
2. http://transcripts.cnn.com/TRANSCRIPTS/0903/19/ltm.01.html
MALVEAUX: So how the president communicates is really being scrutinized along with what he says because the economic recovery is very much wrapped up in how people feel about their future, whether they have confidence in investing and spending again and Americans are looking to him for those cues. But Obama is not only doing the comedy circuit. He is going to sit down for an interview with "60 Minutes" this weekend and I imagine, Kiran, that he is going to get some tough questions.
ROMANS: You know, the president can multitask, this we know.
President Obama isn't letting off the economic stress keep him from making his NCAA tourney picks. He was filling out his presidential bracket on ESPN Wednesday. The president's final four, in case you're wondering, Louisville, Pittsburgh, Memphis and North Carolina. He likes Louisville and North Carolina to play in the title game and has North Carolina as the national champion.
CHETRY: And another uptick in gas prices. AAA reporting the national average price for unleaded regular is now $1.93 a gallon. It's a penny higher than yesterday's price. Thirty-nine states though still have gas prices below $2 a gallon -- Christine.
ROMANS: All right, Kiran, we're on the "ROAD TO RESCUE" this morning, and the Federal Reserve is taking a bold step to try to stimulate the housing market and the economy, frankly.
The central bank injecting $1 trillion into the economy, buying up treasury bonds and mortgage securities to help unclog the credit markets pushing mortgage rates lower. That's good news for your money especially if you're looking to buy a house or maybe refinance. [But causes inflation]
Gentlemen, let me start with you, Ryan. This controversy over the AIG bonuses, I mean, the American people are outraged about this. We find out that Senator Chris Dodd says he's responsible for some of the language in the stimulus bill that sort of allowed these bonuses to go through at the behest really of the Treasury Department, he says. I mean, have the American people kind of washed their hands of administration and Washington efforts now to try to fix the economy because of this distraction?
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Well, I do think that it really impacts consumer confidence. And looking at the administration, you know, Chris Dodd, I'm glad he came out and finally said something, that he, in fact, apologized for that because this administration basically promised us to have transparency, [But only after getting caught] and making sure that we know exactly what our government is doing at all times -- what did we vote for, who changed the amendment, why didn't this law or legislation get amended.
ROMANS: Keith, the president has this town hall last night, where he tried to kind of -- he took the blame for it, but then also said that he didn't create the mess in the first place.
KEITH MCCULLOUGH, CEO AND CHIEF INVESTMENT OFFICER, RESEARCH EDGE, LLC: Yes. I think now they're finally doing the right thing. You finally have Bernanke taking control of the situation. Maybe we weren't doing the right thing when we had Summers and Geithner maneuvering. I don't think people bought into that. Obama is stepping up. And I think as Ryan pointed out, everything is built on confidence, given transparency, accountability and trust which was the message, really something more than just, you know, rhetoric with Bernanke backing it up with a trillion-dollar program yesterday. That's a lot of money.
[Note: consumer debt, and the ability to pay their debts, is the rather large elephant in the room - do you suppose that increasing inflation will help or hurt the debt situation. Does it give extra capital to spend, or restrict it to just essentials?]
MACK: Exactly. Exactly. At the end of the day, 4.96 percent. Rates have dropped down to a total of 30-year fixed rate. This is going to affect your bottom line. The whole crux of this market now is housing prices. Can people afford to purchase homes? And this actually makes homes cheaper for individuals. It shores up balance sheets. It shores up the balance sheets of Fannie and Freddie May. There are risks -- you know, higher inflation, the moral hazards that it might suggests. And in terms of putting more taxpayer's money at risk.
But I think over the long run, this is going to shore up housing prices despite possibly having a $5 trillion balance sheet for the Fed over the next two years. I'm not necessarily sure about that. We're slightly concerned, but I think it's a good move overall.
ROMANS: The Fed essentially printing money, but, boy, there's a lot of reasons why they're doing that right now.
MCCULLOUGH: Right. And they're printing it in the two places that you care -- your home and in your 401(k). So when you do what Bernanke did yesterday, you actually break the buck, where you break down the dollar. When the dollar goes down, everything else that you own reflates. And that's what you need.
You need to -- you know, house prices have to stop going down, that's positive, that builds confidence, and your portfolio can stop going down. We've seen, you know, the stock market go up 17 percent in the last six days. You know, that's going to build confidence. Markets are built on confidence, and I think that's where we need to get.
ROMANS: If we could just buy trillion dollars in confidence and just put it right where it needs to be, wouldn't that be easy and great. Keith McCullough, thanks so much. Ryan Mack.
References;
1. http://library2.akadhmia.org/CNN-AmericanMorningMarch19.pdf
2. http://transcripts.cnn.com/TRANSCRIPTS/0903/19/ltm.01.html
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