the lowest levels since 2007 that the federal reserve might pull back on the stimulus and that was an overwhelming concern for the bond market that shot up rates and shot stocks down, even though walmart and some other companies kind of gave us kind of the opposite news that things weren t going as well over there. so what would you do right now, would you bet that today was wrong and you would buy stocks that were going to go higher, or do you think interest rates will still keep going up? see, i think the key to the bond market or the key to the stock market is the bond market right now. a lot of people think rates are going to continue to go higher but if the fed pulls back on the stimulus, the stimulus the fed does is they buy bonds so the rest of us don t have to and we invest our money in stocks and if the fed pulls back on buying bonds, interest rates will go higher and we re worried that will hurt housing and car sales and will slow down the economy. while i think that co
they were worried about the claims of unemployment insurance the lowest levels since 2007 that the federal reserve might pull back on the stimulus and that was an overwhelming concern for the bond market that shot up rates and shot stocks down, even though walmart and some other companies kind of gave us kind of the opposite news that things weren t going as well over there. so what would you do right now, would you bet that today was wrong and you would buy stocks that were going to go higher, or do you think interest rates will still keep going up? see, i think the key to the bond market or the key to the stock market is the bond market right now. a lot of people think rates are going to continue to go higher but if the fed pulls back on the stimulus, the stimulus the fed does is they buy bonds so the rest of us don t have to and we invest our money in stocks and if the fed pulls back on buying bonds, interest rates will go higher and we re worried that will hurt housing and ca
stock market is the bond market right now. a lot of people think rates are going to continue to go higher but if the fed pulls back on the stimulus, the stimulus the fed does is they buy bonds so the rest of us don t have to and we invest our money in stocks and if the fed pulls back on buying bonds, interest rates will go higher and we re worried that will hurt housing and car sales and will slow down the economy. while i think that could very well happen if the fed pulls back, i think the stock market will continue to struggle under the weight of higher interest rates. thank you very much. that s going to be the fascinating question and, of course, for so many you got to think about interest rates going up meaning refinance as quickly as you can if you haven t already. and now our second story outfront the bloodbath in cairo. the bodies of some of the 580 people killed over the past two days now line the floor of a mosque. these are horrible pictures to look at, a day after the
the burn area got rain on it. it turned into the mud slide. more on that amazing video. incredible. thank you for delivering on the nice weather. thank you, chad. could it be another record breaking day on wall street? stocks soared. the federal reserve would keep pumping cash in. the dow topped 15,460. the s&p 500 hit 1675. both are records. last month, they indicated the fed might stop buying bonds. some warned the latest rally may be short lived. a spike in crude oil in part thanks to the situation in egypt and the peak summer driving season. they are creating a perfect storm. the price at the pump jumped 4%. industry experts expect prices to jump over the next couple
them to near zero until unemployment falls to 6.5%. as for wall street s response, this may be where things change. the markets took a dive as soon as bernanke started speaking. by 3:05 the dow fell 140 points closing the day down more than 200, steve rattner. i wouldn t freak out over that considering that the market is so inflated right now anyway, but we ll talk about how bernanke signaled that things are going to be changing moving forward. what we are arguing about here or talking about rather is defense bond-buying program where they have been buying bonds. so we have a chart that basically illustrates this. if you go back to before the financial crisis, the fed owned something less than a trillion dollars of bonds, mortgage bonds, treasuries and so on. during the crisis they have been buying heavily and now they are up to something like 3.5 trillion dollars of the stuff. in the first quarter of this year, the fed bought 80% of all