It involves panty hose, all sorts of things, including even secret elevators. We will talk about that. Plus a physical attack on the wealthy. One affluent town in california has been hit hard. Speaking of wealth, the wealthiest neighborhood in the u. S. Not by zip code or by county. We will go street by street. Tyler is out today. Simon is at the nyse and we will get downtown in just a second. First, that big news on housing. Diana olick is in the house and she has been talking to the biggest name in the business, ivy zelman. The noted analyst famous for calling the top and bottom of the latest housing cycle, last spring she said here on cnbc that we were in housing nirvana. By fall she revised her outlooks down. Today she explained why. I think nirvana took a pause, during that time house prices home prices were surging and we had very attractive affordability and a few months after i was on, we had rates spike about 100 plus basis points and we saw a pause. The consumer was rationally responding to the surge in prices, the backup in rates. She did not seem particularly concerned about affordability and she sees credit loosening a bit. She did say, however, she doesnt believe the government report today on a 9 jump month to month in january new home sales. Her numbers say sales were flat, largely due to lack of supply which she added is about to change. What we hear from builders right now, they did not have enough communities to meet demand in 2013. They were caught by surprise by the surge in demand so they didnt have enough developed lots to open up new communities. Well, this year, they caught up and they are very prepared. We will have double digit increases in new communities. What was most interesting to me, she did not dismiss the idea of investors getting into the new home market, into new construction. I have spoken to a lot of investors who say there is just not that much low price supply out there to buy and they are looking at buying new construction, and that could mean a lot for the builders going forward. Zelman says its still a small percentage but didnt dismiss it. Thats interesting to me. She didnt dismiss it. But along the lines of that demand ratio, because if you look at the unemployment reports that weve had that have been iffy and subject to a lot of revision, the Participation Rate in the labor market has been at record lows and wages havent been growing so it doesnt seem to match up with the increased demand shes looking for. Well, ivy always looks at demographics. She says we have this many people here, there must be that pentup demand and it should come in as the builders start to put more supply on the market. A lot of folks do say that sales have been slow because of this lack of supply. But i believe that affordability is a big block to a lot of buyers getting into this market. I talked to the realtors, to the buyers, to the mortgage lenders who say folks just dont have large enough down payments to qualify for the credit they need and they are not able to get into this market as prices continue to go up. Yep. That makes a lot of sense. Thanks so much. Good to have you up here. To dominic chu for a market flash. Check out shares of aquin financial. There are new concerns about the company, one of the nations largest Mortgage Servicing companies. In a letter, he said his office had found a number of potential conflicts of interest between ocwen and other Public Companies with which its affiliated, that it really could work with. It can harm borrowers, push homeowners into foreclosure. So those shares drifting toward session lows. A big percentage loss there. Thanks very much. Breaking news in the bond market. The five year note going up for auction. The two year yesterday. Got an aminus what about today, ricky . If you have 7. 3 trillion in national debt, this is the kind of auction you want to see. A for apple, solid pretty much on every metric. Lets go through it. 35 billion, the w. I. Was 1. 54 offered at 153 1 2. We priced it under the offer side. 1. 53 is the ultimate yield, lower yield, higher price. Thats solid. We look at the bid to cover was the strongest since september of 2012 at 2. 98, ten auction average is normally only 2. 59. The only thing that was light was directs at 9. 2. Dealers take about 40 . A for apple. Tomorrow is the last of the supply, 29 billion sevenyear notes. Back to you. Thank you very much. Swiss cheats, the Swiss Banking system on the hot seat in washington today. The Senate GovernmentalAffairs Committee is investigating how thousands of wealthy americans evaded taxes with the help of big swiss bankers. Our chief washington correspondent john harwood is on the hill. How did they do defending themselves . Reporter they did okay. It wasnt a very contentious hearing. Most of the attention around this hearing was on the cloak and dagger methods that the Investigations Committee which is now adjourned for a couple hours, uncovered about how 22,000 secret accounts were maintained and fostered by Credit Suisse. Youre talking about a full Service Office at the Zurich Airport to enable customers to go straight to the ski slopes and do their business after they got off the plane. You have a remote controlled elevator, you had cash hidden in pantyhose, you had Bank Statements stuffed in Sports Illustrated magazine, fake visa applications. All of this was used to conceal from taxation money from u. S. Clients. Now, the Credit Suisse people defended themselves, said they shut down that line of business. We had get to the part this afternoon where the senators are grilling the department of justice which they say has dragged their feet on enforcement and going after the names of some of these bank customers, what theyre sure to say in response the department of justice officials is there is a tax treaty pending with switzerland that has been held up in the United States senate. If that treaty is passed, the Credit Suisse officials said this morning many, many more of those names could be turned over to the United States senate. I guess the swiss have always been fairly inventive. John harwood, thank you very much. Of course, its been a huge year for cybersecurity stocks. Fireeye up more than 300 in just one year. Shares of competitive check point up 7 in just a month. In fact, the cyber guys are meeting in San Francisco today. Eamon javers is there with more on the stocks in this sector and the new possible buyouts. Eamon . Reporter all that bad news you are talking about for consumers and for retailers in terms of cyberhacking is really good news for the people who are walking this floor. This is the rsa Cybersecurity Conference out in San Francisco. The folks here tell me they are expecting a wave of mergers and acquisitions throughout the year as the consolidation continues in this industry as the big players try to snap up a lot of innovation from some of the smaller firms that are in this space. I talked to raj shah who sold his Company Earlier this year to p palo alto networks. Take a listen. I think the characteristics that make a company a good acquisition target is a very strong theme and truly disruptive technology, not a me too approach to an existing problem. I think if you marry those two with good customer attractions and theres a nice fit with the parent company, it makes a nice fit. I certainly can see more of that. Reporter analysts put together a list for us of some of the potential acquirers and potential sellers in this space. Take a look at some of these big names. Emc, microsoft, symantec, ibm, oracle. The targets are kind of interesting, though. Fortinet, imperva, proofpoint, qualys as well. They say the buyers are walking the floors here of this exhibition hall not just to buy the technology and software but to buy the companies themselves. Interesting to see the quotes of the potential targets. Eamon, thank you very much. Eamon javers there. We are up 40 points on the dow. Check out shares of itt educational services. The stock is plummeting on news the u. S. Consumer bureau sued the forprofit College Chain for pushing its student into high cost private loans that were likely to end in default. Those shares down about 11 in trading so far today. Keep an eye on this es ishares. We sure will. Thank you very much. The drought of course a big problem in california. Its historic. But some relief is on the way in the form of rain and some snow up in the mountains. Heres the weather channels tom niziol. We got two significant storm systems that will impact california with rain and snow beginning today and running into the weekend. Lets show you the setup for this. We have systems that are really going to undercut an upper level ridge here and bring moisture into california, both today and then going into the weekend. This is muchneeded rain and snowfall for that parched region of the u. S. Heres a look at the mountain snows and rain that will hit the area. Most of the state will be included under this. The snow is back into the sierras and here is this rainfall forecast as we go into saturday. A general three to five inches along coastal areas, two to three inches for much of the state. By the way, some of the foothills could see as much as six inches of rainfall. What i dont like about that, it is going to bring up the possibility of some flooding, especially in some of the burn scar areas, colby, madison, powerhouse, those regions in southern california. We take a look at the snowfall, that natural reservoir, snow pack of the sierra going to be infused with a foot to a foot and a half of snow through friday morning and more snow is likely through friday afternoon and evening. All in all, this is great news in most aspects for california. We just hope too much rain doesnt come too soon. Stay tuned. Back to you. Tom, thank you very much. Check out nat gas. Prices are falling again today. Third session in a row, hitting two week lows. Traders are cashing out of the march contract because it is expiring. They are looking ahead also to spring which we hope will bring milder weather. Despite the big drop, nat gas prices are still up more than 15 year to date. Meantime, the rollback on sanctions providing a big boom for iran. Reuters reporting that irans oil exports jumped in february, the fourth straight month that the Islamic Republic has seen a rise in its exports. They are now at about 1. 3 Million Barrels per day. Indonesia, syria, south korea, india and china are some of irans biggest oil customers. Since the interim deal was announced, brent crude has been pretty much flat, up just a little better than. 1 today. Simon . We have two big stories on the wealth beat coming up. Robert money bags franks is back. First we will take you on a tour of the richest neighborhoods in america and none are in california or new york. We will tell you who tops the list and what their residents earn. Then, living in those wealthy neighborhoods could make you a target. A town in california thats filled with billionaires just got tagged with graffiti attacking the 1 . We will show you the Shocking Police pictures and tell you why the fbi may get involved. 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We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics are necessary. Beam us up. Thats my phone. Hey. [ female announcer ] the x1 entertainment operating system, only from xfinity. Tv and internet together like never before. Welcome back to power lunch. Check out uti worldwide getting hammered on ten times its normal trading volume. The company says it breached some debt covenants and would report a loss in the Fourth Quarter due to lower demand for air freight, saying it will have to raise more than 525 million in capital to pay off about 400 million in debt due in april. Those shares down on the news. Sue . Down almost 25 . Wow. Thank you so much. The wealthy are under scrutiny as income inequality becomes a National Debate and Major Political topic as well. The class warfare is escalating and has the fbi involved. Our wealth editor robert frank is here with more on that. This sounds frightening. It is, a little, especially for the residents. The wealthy town of atherton, california has been tagged with antiwealth graffiti. Pictures here from the police showing that fences, garage doors and even cars have been spray painted with the same slogan, f, cant tell you the rest of the world, the 1 . The police so far have no suspects or leads. They are telling residents lock their doors and windows and keep their valuables secure. The police have also contacted the fbi. This could just be a couple kids making trouble but police want to make sure its not part of something more organized like the occupy wall street effort. Atherton is one of the richest towns in america, people like meg whitman have called it home. This suggests the antiwealth sentiment we have seen in San Francisco could be spreading to Silicon Valley. You mentioned atherton. We know thats an affluent town but where does the other half of the 1 live . Interesting, all over the place. Today we have a ranking of the top neighborhoods and you would think that new york and california would have the richest neighborhoods. Sorry, guys. Its actually maryland that has most of the top neighborhoods. A new study of the 100 wealthiest neighborhoods shows that three of the top five are in maryland. This is a list based on mean Household Income compiled by a professor in alabama. The number one richest neighborhood in america is the golden triangle, that home to all the hedge funders. The mean income there, 614,000. The rest of the top five, almost all in maryland. The bradley manorlongwood section ranked number two with income of 614,000. Potomac manors ranking third and carderock ranking fifth. The demographics of these high end neighborhoods also getting much more diverse. In the number four ranked place, in coral gables, 47 of the population is now latino. Mostly cubans, a lot of them entrepreneurs. Absolutely. I was just in maryland. That longwood section is beautiful. Its really, really pretty. And pricey. Yes. Exactly. I was just looking. Just driving through. Dont panic. Thanks so much. Simon, down to you. Heres a question. Which hot Tech Companies do the smartest minds in america want to work for . It may not be apple. Seema mody and josh lipton on those stories. Seema . Institutional ownership of apple is at a record low. I will walk you through the stats and the reason behind this coming up after this break. Coming up, power pitch. This startup wants to make electronics fun by putting the power in your hands. Imagine, invent and create. Does it have the power to succeed . Stay tuned. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Save you fifteen percent or more on car insurance. Ould yep, Everybody Knows that. Well, did you know the ancient pyramids were actually a mistake . Uhoh. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Welcome back to power lunch. Check out shares of ebay right now. We are focusing on them only because they responded to carl icahn. They dont want to let the truth get in the way of a good story. Ebay saying his statements are not factually accurate, again responding to the carl icahn overtures with regard to ebay and pay pal. They are saying again his overtures, his claims are not at least factually accurate and they go on to lay out all the details. Very Interesting Development in the carl icahn versus ebay saga. Simon . Thank you very much. One reason why the nasdaq is hitting a new 14 year high for a Third Straight day, apple clearly a big stock to watch in advance of the Shareholder Meeting friday. Lets remember that. Over to you. Thats right. A new high for the nasdaq but no love from apple. A new report from Morgan Stanley reveals that Institutional Ownership of apple is at a record low and that the top 30 holders are allocating 2. 2 of their fund to apple compared to a high of 4. 1 in the last five years. Analysts write that sentiment is negative as most funds are questioning apples ability to grow revenue long term. Apple shares lacking momentum in 2013. In a very similar story this year, down 7. 5 despite the moves in apple, the tech sector still up. Typically when