people should have equities, instead of having growth stocks, i think they should have value stocks. growth stock tend to do the worst, they tend to go down about 50% more than the overall market in a market decline of any seriousness, so, um, we think that value is going to be holding up much, much better if we do go off the fiscal cliff. or if we re going into recession. i think you have to look at your fixed income. people have been tempted, and they ve succumbed to the temptation of stretching for yield. they ve gone out there, and they bought junk bonds, and they bought longer-term bonds because they can t get return on the shorter end of the curve. and while that would normally at least the longer end of the curve would be normally good advice going into recession, with ben bernanke s penchant for keeping interest rates almost at zero, i don t think that s a good idea at this point. and we would argue vehemently against having poor quality or junk in your portfolio, we would ar
increase the debt, right? yes. there is growing controversy over what it will do over the long-term. something needs to be done. we have been at 8 percent in the unemployment front way too long. the fed needs to jump in. it could increase inflation. it is better than deflation which is a serious concern. positive side it could serve to help homeowners. interest rates the fed commit to do keeping interest rates nice and low. they could go lower than it currently is. it could make people do a refy secondary fy switch from a 30 year to 15 year. low interest rates could spur activity which could help with the recovery. it is not about low interest rates. people aren t buying for other reasons. i feel like we keep hearing this the housing market is going to get better. the only thing that will repel the housing line further is the employment picture. that will improve people have to
$25,000 in college loan debt. college tuition up 368% in the last 30 years leaving students furious. and politicians making promises. congress needs to act right now to prevent interest rates on federal student loans from shoothding up. if it doesn t, loans subsidized by uncle sam rises on july 1. extending the current rate would cost the federal government and ultimately the taxpayer $6 billi billion, but something the president and hiss gop opponent agree on. i would like to extend the low interest rate on student loans. governor romney and the president out today both in favor of keeping interest rates low on subsidized loans, but some say that doesn t go far enough. welcome to the program, nice to meet you. i know you have had a very busy week. you say the student loan debt is morally unsustainable and we should forgive this debt. isn t that essentially asking people to pay for their neighbor s education? i wouldn t put it that way, no, education is a public goo
we ve seen all year. meanwhile, here are your three big money headlines this morning. consumer cringe, quitting time and deadline date freebies, i m joined by consumer expert regina lewis. good morning. food and gas prices are up but the rate of inflation is slowing. how much is your average consumer going to be affected by this all do you think? the consumer price index was up 2.7% in march year over year, economists usually look for 2%, that encompasses everything we buy in a given month from groceries to cars, clothes, the gas we put in those cars, so it is significant, but it s not expected to change the federal reserve stated position of keeping interest rates low until 2014. you just mentioned the stock market. closed down. stocks actually tend to rally on indications of inflation because it means you can charge more for goods and services but it is a key number because it is linked to wages and collective bargaining agreements, the payout of social security for
aren t statistics they are people in pain. we want to welcome our viewers in the united states and around the world. i m wolf blitzer. you re in the situation room . we begin this hour with what s happening in iowa. right now the state that holds the lead off presidential contest is gauging early support for the republican candidates. we re standing by for the results of the iowa straw poll. the winner could get an important boost heading in to the 2012 primary season. cnn don lemon is joining us from ames, iowa. don? all right. thank you very much for that, wolf. joining me here is cnn candy crowley to talk about all of this. are you hearing anything? back there at thtabulating. i mention we ll hear in the next 15, 20 minutes. we were talking about ron paul, herman cain, rick santorum, michelle bachmann. he said if he didn t place high enough he s is going to get out. the problem isn t so much oh, my gosh this person placed fifth it s that donors look at it and