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Profits thing is the story. the money is disappearing into a sinkhole. yeah. dean has been arguing that excess saving is not our problem and i was sort of picking up from him. >> actually i take a different position. i think stick lits was onto something. we did see the reintroduce. you dead did see a rise in profit sharing. paul is absolutely right. my argument is we had a different regime, that what we had was the fed lowered interest rates. they felt comfortable lowering interest rates. he wasn't wired. he said this many, many times some of what they did, the way it ended up boosting the ec...

Prices will go up. >> gregg: home builder confidence the highest in six and a half years. how does the housing market help to grow and improve our economy? >> it's huge. it was the real estate bubble that got us into this whole mess. if there is some improvement in that that will definitely help the economy. it will help unemployment. people can't move to where the jobs are because they can't sell their homes. it's also the wealth effect that people have, feel their homes are worth more, they will spend more. >> gregg: the home mortgage interest deduction cost the u.s. government about hundred...

(laughter) >> and the points, that romney is going to have a lot of problems, kind of jonas alludes to, getting rid of a lot of these deductions. there's a lot of special interest, but it's the special interest that are kind of mucking up the economy. the government should not be in the housing business or pushing people into the housing business. that's exactly what the mortgage interest deduction does. and every industry and every service rely on a level playing field and that will unleash the power of the market, not the government mucking up things with all of these deductions here and the...

Home prices up 4.6% in august from a year ago. the largest year-over-year gain in six years. august marked the sixth consecutive month home prices rose in the united states. let's go to cnbc's jeff cutmore, live in london. >> good morning. you know how the saying goes, if there's a wealth effect in the housing market you get the trickle down. that's what we're talking about in this segment. we've seen this number coming out of core logic. they are suggesting a sharp rebound in home prices. it looks good on paper but let's not forget there's still more than one in five american home owners unde...

Why voters seem more bullish on the economy than you might anticipate they would be. >> let me break it down. >> break it down. >> there's two ways of looking at it. one is, the economy is bad. the unemployment is way too high. gdp growth is slow is a really disappointing. we'd like it much stronger. on the other hand, there is this relative way of looking at it compared to other crises, compared to what's going on in europe, compared to what's going on in china where you have to be impressed by the resilience of the u.s. from the voters perspective, there are two interesting things. housing i...