Easy money will help the market any day. Are we too complacent on buying . Ill tell you, the way the fed is running the money this has a long way to run. This is the fed. The news out of europe, the stronger dollar, but at the end of the day without the cheap money from the fed this market goes flat. Its not about the sequester that could kick in a week from today, not about the elections in italy or the currency wars going on right now, its about the fed . At the end of the day, yes. Youll see little bumps in the road like the last two days but they will disappear like they did today. Up 115 points. Have a good weekend. You too. The market is going higher and higher, the dow up 115. Looks like it will go out positive and every friday this year. Thats it for the first hour. Stick around for the second hour closing bell with Maria Bartiromo. And it is 4 00 on wall street. Do you know where your money is . Welcome back to the closing bell. Im Maria Bartiromo on the floor of the new york stock exchange. The dow snaps a twoweek losing streak and the s p 500 is posting the first losing week of the year. Take a look at how were settling on the street for friday afternoon. With the Dow Jones Industrial average up 120 points on the session, about 1 , almost 1 . Volume not great, but it did pick up at the end of the day with the dow back above 14,000. The nasdaq composite picking up 30 points and one of the Leadership Groups on the upside. 3161 the last trade there and the s p 500 up 13 points finishing at 1515. Todays action makes one thing clear, no clear direction right now for this market. Lets make some sense of it with rich peterson. Good to see everybody. Thanks so much for joining us. John, lets talk about the catalyst and where you see this market going. How are you invested today . Well, we still think that steady issues go, basically consolidating from 1495 to 1530 was the high in the futures this week so were right in the middle as we come into the weekend. We obviously have the italian elections and bernanke is speaking next week. Copper concerns us a little bit. The fact that the metal sold off, including the industrial messals, down to 350. We had a selloff obviously from the highs and decent volumes so the balance is nice and have to make sure that it holds. We think bernanke will be pretty friendly when hes before Congress Next week so thats a positive. I dont think the fed will tighten anytime soon but do think asset purchases will go down. Figure the asset purchase will go down but fed funds are basically going to be flat from basically now until 2015. If they do tighten, it will be slow and deliberate, so i think maybe well get a quarter, a quarter, quarter. Even if you get a quarter, quarter, quarter, not 22 , 3 for years. Lets talk about the catalyst. In addition to what john just mentioned, a meeting, a jpmorgan meeting and what do you think comes out of that . An investor day on tuesday. You want to buy financials . I like financials very much. I think jamie dimon does a great job at the Analyst Meeting and the stock reacts very positively but beyond the meeting on tuesday you actually have the stress tests that are coming up on march 7, and i think that is going to be another catalyst for the industry, that they will be able to raise dividends and buy back stock and this is the group you want to be overweight in between the. In terms of this market today, do you sense any change in settlement when we saw last week the federal government was questioning things. I think we were looking for something to happen, and i think its very healthy. I dont think you want to panic by any means. I do agree copper is disturbing. We do have to keep an eye on that, but overall, if you look at bottom eases up and housing and auto and aerospace and, again, to the banks and them lending, i think those are the places on the weakness where you want to be put you are your money. Ron insana, what did you make of the talk this week of the Federal Reserve suggesting that they are going to start unwinding. This is the same ongoing debate thats happened four years ago when the fed started quantitative easing. The same folks are probably dissending over the program in place. The only place who really count are ben bernanke and janet yellin and bill dudley, everybody at the new york fed. Jim bullard, the president of the st. Louis fed clarified the whole thing on cnbc. That was the real catalyst for the rally today. Im concerned as i was back on february 12th that we have headline risk for the market and broadly speaking, not a sell signal horanything like that, that i think we could see a 5 or 10 pullback. Many think so. Theres risk there. Looking at the averages, i dont think you sell good stocks based on this, but the market might be more volatile in the days and weeks ahead. What are the headline risks . The fiscal follies and in as many as the sequester may not be as big an economic deal as feared. The worry about the fed, had that actually come to pass that the federal was indeed thinking of something also easy would have been a double, triple whammy for the markets. Iran is getting back in the news, something that could shake the markets up. This is not a big market call or a career changer trying to Say Something is going wrong and i think the mark is due and overdue for a pullback and this is the environment for that to happen. When you have this kind of funding level, its easy to do a deal and this kind of cash on Balance Sheet. Deal flow, rest of the year and how do earnings look from your point . I a great Market Leader and a person who many getrance an wall street look up for guidance and leadership. Certainly a friend of our continues. And our condolences. Marty said two rules, one, dont fight the fed and rule number two, dont forget rule number one. Theres a lot of anxiety and everyone is risk averse. Easing will continue until we get 6. 5 unemployment sometime in mid2014 and then the markets rally. The fact is weve seen a deal flow very buoyant. The fact is m a activity in the u. S. Is up to its best level since 2005 but its really a segregated activity. Merger activities are off 20 from a year ago, look inging a, despite the lbo, Technology Sectors are over 30 misyear over year. If the fed is very accommodative as Capital Markets are offering credit, dealing with robust activity, should help the earnings family Going Forward. Is that a positive weve got more deals coming or is it where we are in the market . Our groups at s p capital iq 70 correlation between the actual activity and s p 500. And it also speaks to the confidence people have to be putting their cash to work and its not just dividends and buybacks but also making acquisitions to fund growth for the huge year, and this is sorting to pick up. Thats a very i think the other point, maia. To put a finer point on my concern. The president is relenght on increasing taxes again and i dont think thats good for market psych swri right now. John . Getting pack. That could be problem make. Its because of the president s filed policies that we believe rate are at historic level. The quicker they start to unwind some of the easing the crisis from 2008 is obviously over but the rates are still here, so thats problematic Going Forward and as we withdraw liquidity tiny bits at a time, that can only help the market. Well leave it there. Thanks, everybody. Well see you soon. Have a great weekend. Todays of course,. Bob pisani wrapping up the winners and losers. 14,000 for the dow right on the nose. What moved the markets . Jim bullard was a big talking point, on our air 7 00 a. M. Eastern time saying the fed is going to keep easing for a long time, and there were reports that mr. Bernanke has been out minmissing as and a lot of people think hell be backing up bullard. A lot of damage was done on wednesday when the fed minutes came out. Material the big decliner and my choice for stock of the week, hewlettpackard, up 14 , great Earnings Report and their earnings will be out next year the. Finally for the week the dow made it into positive territory, just barely and the nasdaq is down 1 . Thank you so much. Much pore ahead. Is mick the warning of a bond market blowup. I cant think of any political system without interest going on. Is that americas future . Thats next. And pioline protests and fingerpotting. Well have a first on cnbc interview coming up and later daytona 500 history. 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[ male announcer ] with citibanks popmoney, dan can easily send money by email right from his citibank account. Nice job ben. [ male announcer ] next up, the gutters. Citibank popmoney. Easier banking. Standard at citibank. Makes it easy for anne to manage her finances when shes on the go. Even when shes not going anywhere. Citibank for ipad. Easier banking. Standard at citibank. Welcome back. Stan druckenmiller sounding the alarm on our governments debt and spending expenses warning on this program yesterday that a bond crisis could still be at hand. You know, the bond market is a funny thing. In greece the bond market was perfectly fine until february of 2010. Not moving. Not doing anything, and then in two weeks it was over, but if we dont deal with it in the next four or five years, the same thing is going to happen. Were going to wake up. Interest rates are going to explode and the next generation, they are going to have a very, very tough time and its so unfair. No surprise that our Rick Santelli agrees with druckenmiller but dean baker is not worried. He says this isnt and will not be greece. Dean, where do you think druckenmiller is going wrong then . Weve been hearing these things for four years and im waiting. Three big differences between the United States and greece. First, were a huge diversified economy, not a Little Country dependant on tourism. Secondly, people in the u. S. Pay their taxes, you know. Greece had a deficit of about 7 of gdp. That would be over 1 trillion a year in the United States before the collapse. We have a very different story. The third is a huge difference. We have our own currency. Greece is like arkansas. The reason why its Interest Rates went through the roof. Everyone thought that. I think the point he was trying to make in that that if we dont do something about this the market will figure out that we have a credit problem in the country. The markets are smarter than that. When you normalize Interest Rates, right now they are really manipulated, if you normalize Interest Rates, youre talking about 500 billion going out the door every year just on interest expen expense. Thats just paying the interest on the debt. You think thats sustainable . Thats a lower interest expense than what we had relative to our economy in the early 90s. We could live with that. We lived with that in the early 90s and the economy did great in that decade . Rick, what do you think . I think that we have so many os stritches i dont think we have enough stand. Whether its mr. Druckenmiller or barrons this week. Dean is pretty clear, we arent greece, but we can be. The math is the same, at least on its trajectory and hes hit all the highlights of why we bury our head in the sand. Were the reserve currency. Were right. We pay our taxes, hes right, except not everybody is required to pay federal taxes. I wont argue that point. According to the greek debt clock, every citizen is responsible for about 41,000. According to the u. S. Debt clock everybody citizen is responsible for 50,000. According to barons, if you look at public debt, okay, and i understand were not counting underfunded lights which even bill gross said in 2011 makes our problem way worse than greece, were at about 75 of gdp. They are at about 150 , but the trajectory at the current rate means in 22 years we will be them, and i thats a little wacky trajectory there, buddy. Whats wacky . Dean is calling you wacky. That assumes we have huge rises in debt. I hope he lives 22 years to tell his grandkids they are wacky when they are chasing them. My grandkids will tell me im whack if we follow the prescription of cutting the deficit and raising the unemployment rail even higher and putting their parents out of work. And thats what makes us different than greece. We can afford to pay to put people to work as opposed to people working in the private sector carrying their own load. Just look at the Infrastructure Bank they are proposing. Its freddie and fannie. They are propose creating another freddie and fannie and whats worse, dean, its going to be off Balance Sheet like wall street was doing in 07. Had very good success with infrastructure. In the new deal they dealt lots of infrastructure were still using today 75 years later. Thats what we need to do again. Youre right. The private sector is not hiring these people. Thats why the depression wouldnt have ended if it wasnt for the war. I see am tie sclas version. Its hard to take seriously. Because it doesnt fit the plan youre trying to sell. If you can have growth with war and spend money on infrastructure, that doesnt create jobs and have growth. Why am i saying war . Do you think i have any problem cutting the defense baby. You say we got out of the depression because of world war ii. Okay. Then lets put out the infrastructure toed bying, cut out all unions that basically put the guy in power and lets start there. You want to play it that way . Were a democratic country. Cant get out unions. Might not like them. People shouldnt join them. Sorry, were a democratic country. All that stuff is shovel ready, didnt we see this movie in 2009 . We didnt need shovel ready as it turned out h. A lot longer recession they were betting on. You know what, dean . Forget building bridges and building hoover dam, just get all these people to get teaspoons and pay them 20 an hour to move the sand from l. A. To new york and then back again. Thats the same thing youre suggesting. At least they wouldnt be unemployed. If you think thats the answer, who you calling whacky. Not my top answer, buddy. If youre not going to let me do something productive, i would rather pay them to move sand. We want to do something productive. We want government to quit controlling the treasury market and quit controlling the equity market and the quit controlling the economy. I think youve got a conspiracy theory. Its not a conspiracy. The markets are shot. You dont even get a signal like stan said. Interest rates should be at 6 00 and then all of this would stop. Ive been hearing this for four years. Dean, are you saying we should not worry about the debt and it should not be a priority in terms of slowing down the spending . Saying that as clearly as i possibly can. How can you say that . Very easily. I just did. Had a very small deficit going into this. How irresponsible is that . Sdh it its irresponsible. How come you folks werent talking about the housing bubble in 2004, 2005 and 2006 . I was. Greenspan was. Youre ignoring them now. Greenspan was saying there was no double. What was barney frank saying . He wasnt going to pop it but recognized it was developing. It was his job to pop it. We agree on something. Were going off on a tangent, as fun as wonderful as this conversation has been, we seem to be going off on a tangent, but interest take there, that you dont think cutting spending should be a priority at all right now, dean. Zero. Even though there are expectations that the 16. 5 trillion debt is going to 22 trillion very quickly in the next few years. Yeah, and thats thats going to take us back our Interest Payments relative to the size of the economy will be lower than they were in the early 9 as. Because the fed has trillions of dollars of treasuries, dean. Its a ponzi scheme. Other people are holding those treasuries voluntarily. Do i have a vote whether the fed keeps buying them . Where do i go to stop the program . Very important points you both made. See you soon. Thank you so much, guys. Up next, pain at the pump. 4 a gallon gasoline spreading to our Nations Capital for the fifth time ever according to aaaa. 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