A new government report shows the Federal Housing Administration, which insures more than $1 trillion in U.S. mortgages, has a 50 percent chance of needing a taxpayer bailout next year. The audit found FHA may need up to a $43 billion taxpayer bailout to go on. Christopher Thornberg, founder of Beacon Economics, joins the program to discuss what this means, as well as talk about the state of the housing market.

Guest:

Christopher Thornberg, founding principal of Beacon Economics and one of California's leading economic forecasters.