I am filling in for Erik Schatzker today. He is off today. You know why . We are breaking economic news. November existing home sales are officially out. Our economics editor, Michael Mckee, it is at his desk cranking away with the headlines. That news and we do not know why. Right now we see existing home sales fell on the month by 4. 3 . The worst performance of the year. A lot of people may attribute this, and it is a good that it is through to the fed that pushed morgan rach up Mortgage Rates up. Two or three months ago when rates were higher, we have also had some bad rather bad weather. The final reason is that this is not the prime selling season. People drop off as you go into the winter and get closer to the holidays. People are buying less homes than they do in the summer. It is not good news for single which are condos, down. Inventories not particularly good news, either, at this point. We will take a quick look here. Inventory falling. Not as much for sale, but not helping out. Tom is already assigned grinch of the day, so we cannot let you steal his thunder. Our economics editor Michael Mckee with breaking news. 1200 an ounce. Showsnder 1200, really every move in the economy affects these markets. Michael hansen, the senior u. S. Economist, tank of america, Merrill Lynch bank of america, Merrill Lynch. Go to you first, peter. We will go to michael on housing news. This is a chairman with a jumble of economics to deal with. How do you rate ben bernanke off the tape or yesterday and then the view forward . Where does he stand . I think ben bernanke has done an outstanding job. Financial under great uncertainty. He used financial policy to great effect. A clears been transition for the next fed chair, and ben bernanke has taken on tapering. He has made it clear that the policy is going to continue. There is the macro view. Michael hansen, bring it down to the micro view. This is the dilemma that chairman yellen will have as we go back and forth, good and bad days. Thats right. The reason the fed tapered as they acknowledge that given what they were looking for in the labor market, it was good enough to get them to start moving. There is a lot of we have had some wobbles in the Housing Market in particular. Much of that is due to Interest Rates. As we go forward, the rates will be rising. Michael, you speak to investors every day. We love taper talk. How much do investors actually care . On the one hand, the markets are giving it a lot of intention a lot of attention. We need more clarity about what the fed will do what the fed will do going forward. They got that from ben bernanke yesterday. Arco when you look at this cautious view that was correct from bank of america, Merrill Lynch, have you brought up your view recently . Is there more optimism at your shop . Wehave not been low have not been below consensus for the last couple of years. For next year we are thinking with the smaller fiscal drag, with some signs of some of the tailwinds with the economy picking up, including housing, we are a bit more optimistic. We expect 2. 6 next year in growth versus 1. 7 this year. We know how much quantitative easing has helped the markets. How about america . How about regular people out there . What has he done for them . You have to remember if we had not had quantitative easing, there would have been more evident effect on the labor market. Forwardquestion going is, will we start to see investment pick up, private investment on the part of firms . That will be the key driving forward. We have e call hansen, 35,000 feet, bank of america. Are you ok . What is the irish phrase for gesundheit . I dont know. Guinness. Your view is New York University buying everything south and north of washington square. What do you observe in manhattan that you can bring to the American Economy . Eggs are getting better, arent they . Is in port and that we have a tale of two economies right now. It is important that we have a tale of two economies right now. Our mbas continue to get jobs easily. Are you up to 70,000 a year in tuition are you up to 70,000 a year in tuition . About 50,000 a year for mbas. How does that compare to other mbas . We are right around the median. Columbia Journalism School how much do you think that is . A lot. 60 grand. Have gotten your phd in economics if you are shelling out 50 grand a year . That depends on the opportunity cost. You said that like an economist. Is your show, im sorry. I am so thrilled that you are here. I asked tom if he would hold my hand the whole show today and he said no. Michael, the fact that there is positive momentum, that there is real growth, is that enough to belong in 2014 . I think there is a lot more upside and optimism and inventor Investor Sentiment that there has been. You see an emphasis on the Headwinds Holding Back growth, at now the tail wind is picking up. We are optimistic on the stock market this year going forward. Michael, your firm has led the way out of doubledigit housing recovery. You have some smart detailed notes. How much does housing go up next year . , ort a singledigit world with taper can we get some more enthusiasm in the market . Arco obviously we want to keep an i on how recess the Housing Market is. That is the question here. We had some strong housing numbers. Increase, looking for slower increase. We are still going to add a good point for in gdp a good. 4 gdp. Do you think we will continue to taper the First Quarter of next year . Follow ak the fed will datadriven policy. I think the really important thing that we have learned in the last few months is that we are going to get a continuity policy, and we have a new leader of the fed that will continue to be datadriven. Think, michael . I think we learned yesterday that the fed is starting to acknowledge that inflation is persistently lower than they have been looking for, and that is starting to become a concern. There is this scenario, the risk that the taper takes a pause at some point early next year because the Inflation Numbers will come in softer at times. Congratulations, michael, on your 2013 work. Michael hanson from bank of america. We will continue with phil henry in a bit. It is time for the top business stories from around the world. Facebook ceo Mark Zuckerberg, he and the company are selling shares in an offering valued at 3. 9 billion. He is selling a portion of the shares being offered and says he will use the money to help pay his taxes. Beforeck was up 108 today and it fell at the open. Investment bankers and traders at citigroup are probably going to get bonuses that are a little changed from last year, or less. 5 or 10 may earn less than a year ago. And her she is expect and hershey is expanding in china, valued at 600 million. The company is buying shanghais golden monkey food. Ready, tom . It sounds pretty sweet. The top headlines. What is the real value of an mba degree . There are lots of questions about that. The more microeconomics and an mba degree, the better you go. Of course you would say that. You left economics. The it the Insider Trading have consequent had consequences for steve cohen. Good morning. Market makers worldwide. Tom keene in for Erik Schatzker. Stephanie ruhle is here as well. Should i get an mba or a cfa . You could definitely get an mba. The other question, is it worth the money . We have phil henry in with a truly global perspective. A college dean. There is his book, turnaround third world lessons from first world growth. That so manyigor programs do not have. What do you say to a person who wants to go to sturm and says i really want to do a group project, i do not want to do equations. I want to have fun. How do you respond . An orlive in an and, not world. Collaborative group project. That was a Market Makers shameless plug. The real value, Career Opportunities. When i think about people going back to get their mbas, is it because schools have the ability to rock up all the biggest and best companies and give those students Career Opportunities . Is that the real value . Studentsnly 96 of our have fulltime job offers, and starting composition for students upon graduation is about 140 thousand dollars. So, yes, big opportunities, but it is also about learning. It is about coming to stern worlde the future of the an example would become you want to go into finance, inc. Of the opportunities cities present. 2. 9 billion people around the world are moving into cities. Think about all that will mean for Economic Growth around the world. And,will not let you pick i will let you pick or. If i had to wake up and say this is what i want my students to do, would you pick finance or tech . The trend is to work tech, but the stock for finance will continue to be high. Look at the development of the curricula and the idea of kids coming in, who is your best entering candidate . I thought it starts with how well liberal arts students can be due within mba curricula. At your door, they are ready to run, but the liberal arts students can do surprisingly well, can they . Absolutely. Students well prepared in finance and economics, that is great. Philosophy majors who are critical thinkers, people who understand how to look at their world, see problems, and use the tools to create value, that is what we are looking for. That is what the world is looking for. It is application season right now. What is your flow and what is the demographic . A veryba degree is still valuable degree. We are still largely seeing students who are roughly 27 years old looking to have a transformational you have not introduced the word of 2013, disruptive, the word of 2012, or the idea of leadership. Overused phrases. How do you teach leadership versus other schools that are leadership, leadership china, google, facebook, apple . The thing about leadership is show as well as help people to lead. We believe our students, when they come into our schools, give them the opportunity to work with classmates on real problems. Give us an example of a real problem. Urbanization. Students paul romer is at stern. We are working with him on the teachingion project, how to lay grids for further expansion. Do they know how do they know who he is . Tom is doing bring up an amazing point. Paul romer is one of the leading macroeconomists. He has now turned his attention to one of the biggest problems and opportunities facing the world, rapid urbanization, particularly in the emerging world. Whoalking about leadership, do they know who paul romer is . Is there any argument to be made that mise that these millennials have too much arrogance. I want to be a leader, i want to be this. Back in my day, i did not ask do i want to work for the man, it was, god, i hope he gives me a job. Here is what i tell our students. Have a 30,000 foot respective on the world and the ready to roll up your sleeves. That is the key. I want to greg gradually i want to congratulate you on bringing the word rigor into the mba program. One of our Staff Members here are at stern. It is like your kids and homework. It is like, yeah. I can barely get through second grade spanish. How do you keep the students scrappy . They might have great opportunities, but how do they leave stern, get into the workforce, and realize it is about tenacity . Those are different skill sets. You have to remember and why you is the definition of tenacity. It is in our dna. Katie is in social media. Tell me about the bars around nyu. Is it enough of the social life around nyu . There is no question there is a lot to do outside of the classroom. Rigor and relevance. This is when all of the banks have firstround interviews at nyu. Do the students want to spend the summer at investment banks . As i said, there are big opportunities in the investment world. Finance is not going anywhere. The key is finance and something else. Is there a bank they want to work at most . Number one pick, do they want to work in at blackstone, goldman . They want to work at great firms. I want that answer. I had to try. His entourage is over there with a cue card saying do not answer that question. Thank you so much. They are my original sponsor on bloomberg. The first time i ever said a sponsor, it was nyu stern. That was just after prohibition. That is my hood. She just has to ask. You can take her to the carlyle. Peter, thank you so much. When we come back, hope this does not meet mean in and Darden Restaurants makes a big move with red lobster. We will have that next on Market Makers. If you missed any of our interviews, you can watch bloomberg on apple tv. Live streaming and ondemand videos. Looking for the video. Back with more in two. Welcome back to Market Makers. Stephanie ruhle joined by tom keene today. Lets head to on the markets. Darden restaurants will be separating the red lobster restaurant business. Those who love the shrimp bonanzas, the allyoucaneat crab legs, they seem to be worried. Almost 7 on the day. Gold is the story, no question about that. Gold is down, down. That barely explains how it has been crushed, under 1200. There is the 20, 30year chart of gold. That is an ugly bear market charts. Gold down until otherwise we note. Story as we begin next year. When we come back, you know i love talking about hedge funds. Guilty as charged. The verdict is in in the massive Insider Trading case, once again about hedgetions Fund Billionaire steve cohen. Also, the original blue chip investment. We will look at casinos, all that coming up on Market Makers. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and Stephanie Ruhle. Welcome back to Market Makers. I am Stephanie Ruhle. All tom keene wants for christmas it is something ups cannot deliver. Look at you. Om has an extraordinary twitter following, and he wants even more. Ourlet fu will deliver twitter following. They are bigger than you realize. Tom, the twitter king at bloomberg media. How many twitter followers do you have . 12. 40,000, tom, and i know you every i know you know every single one. We have a chart that shows just how important the number of twitter followers you have our. What is interesting is this is a distribution chart that is skewed to the left. The number ofis followers for active twitter accounts. Active twitter accounts are people who have posted within the past 30 days. Fewer than 10 followers. Those are active users . Yes, over 20 of active users. Help us understand what an active user is. There are tons of people in the financial industry that use twitter, that follow people. Icahn, billcarl greg, and they are not active twitter users. I dont agree with that. The link, the guy at arizona te that came up with this the link is the key thing. You have the two groups, the people on twitter and everyone else following. Is something we are all getting used to. Interestingly enough, you guys are really big deals because how many twitter followers do you have . Not that many, 13,000. Withu are in the top 1 13,000. Tom keene, by the way, with his 45,000 followers,. 1 . Follow moree users people than follow i dont know why they follow tom. He does not Pay Attention to stuff and is tweeting as we speak. In 2014, do you think we will see people follow less . On instagram,that i took out a lot of people i did not enjoy following. The key right now is twitter i think is holding, and this debate over where facebook is where mr. Zuckerberg is selling stock. Talking ierberg am surrounded, folks. Sorry, this is our zone. Help me here, please. Is on the way. The major deal here is the digital overload we are getting through facebook, and i do agree a huge deal for next year is how facebook does with all the overlook. Do you let your kids look at this stuff . I do not, but in 2014 more people in the Business Community asked me who should i follow. Help peopleould understand, these are the more valuable people for you to follow. Those do not mean people who are promoted. I would love to know the answer. What kind of pickup do people promoted on twitter get . To me, someone who is promoted does not feel authentic to me. I am going to promote Stephanie Ruhle right now. Here it is. As we go, i am playing the new Instagram Video of Stephanie Ruhle. It is out right now. E. U can see that sruhl up, you would wish you had invested in casino stocks at the start of the year. We will make up that here on Market Makers. Good morning. How about this . Seven to 20, that is what we get in this casino business. We have a great group to speak to on the casinos. A full house. Very good. Oh, my word, you are just gaming our guest is with us from isi. Richard hightower is also with us. This is really special. Ryan miller is with us as well. Our coke i want to take us to make cal for a moment. He says it is a winning bet, whether it is positive Economic Growth or negative. Take a look. If youre going to buy equity, you want growth. Where is their gross today, particularly in a place like mac au. 50 of the World Population lives within a flight there. Is it a winning trade, no matter what happens in the at it, the way we look a lot of the gaming names that we cover are not really have a hasof exposure to it, it been a fantastic year for them because a lot of the Free Cash Flow generated out of macau has gone to debt, and that is fabulous. I agree. In the gaming s