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Know. joining me gary how are you? great. arthel: i understand you believe raising the debt limit will cause problems. what kind of problems and how will it impact wall street? then i want to know how will it affect the average americans daily business? if we keep raising debt right now 43 cents of every federally spent dollar is deficit. if this continues, markets are going to start speaking out. how? interest rays are going to skyrocket. nobody is going to want to buy our bonds, they are going to be worried about getting paid off then you see rates at 6, 7, 8%. the bad housing market will get much worse. amazingly to me, the interest rates have stayed low. i think that s because the fed has been buying bonds. ....
Territory to go in. house republicans are not just pushing the envelope, they are soaking it with lighter fluid and waving a match at it. i think the president came out very much above this week, above the fray. i think he s going to do it again. i think he knows and i think ben bernanke is telling him, listen the fed chairman you d better get this stuff together because rates are going to start going up rather dramatically once we re done buying bonds, which is going to be in july-august. the president knows this has to be solved within the next 12 months or it s going to hurt his re-election. interest rates will go up dramatically precisely because of medicare. what about this entitlement fight they re starting on the republican side? i think president obama s making a calculus right now that traditionally, presidents versus congress, whenever they go head to head, the president usually looks better. and throughout the past week, president obama, i mean, on friday mornin ....
Pushing the envelope, they are soaking it with lighter fluid and waving a match at it. i think the president came out very much above this week, above the fray. i think he s going to do it again. i think he knows and i think ben bernanke is telling him, listen the fed chairman you d better get this stuff together because rates are going to start going up rather dramatically once we re done buying bonds, which is going to be in july-august. the president knows this has to be solved within the next 12 months or it s going to hurt his re-election. interest rates will go up dramatically precisely because of medicare. what about this entitlement fight they re starting on the republican side? i think president obama s making a calculus right now that traditionally, presidents versus congress, whenever they go head to head, the president usually looks better. and throughout the past week, president obama, i mean, on friday morning he called his aides into the oval office and said ....
I think he knows and i think ben bernanke is telling him, listen the fed chairman you d better get this stuff together because rates are going to start going up rather dramatically once we re done buying bonds, which is going to be in july-august. the president knows this has to be solved within the next 12 months or it s going to hurt his re-election. interest rates will go up dramatically precisely because of medicare. what about this entitlement fight they re starting on the republican side? i think president obama s making a calculus right now that traditionally, presidents versus congress, whenever they go head to head, the president usually looks better. and throughout the past week, president obama, i mean, on friday morning he called his aides into the oval office and said this is the same time harry reid was out there saying they re throwing women under the bus, and he said be quiet, don t say that much. when he went out during the week, whenever he came out, you kno ....
Selling, we did not have enough buying and when you push treasury prices down, it pushes interest rates up. neil: how up do you thing they go? guest: well, once we run past $4.25 on ten year treasury rates we will see a slow down because it pushes up the mortgage rates and how high? it is tough to say because we did not know how much money the federal reserve is going to print to keep buying bonds. they have been specious about what they will do when their bond buying program is over. so we do not know how high they can go but i think they can go high, maybe north of 5 percent. neil: thank you very much. we use financial types very rarely on there show and my only career dough credo we have are his credentials and his are ....