Why U.S. gov’t cannot afford ‘normal rates’

Through the prism of The Good, the Bad and the Ugly on Wall Street, here are three top items for investors on Wednesday.

Closely followed hedge fund manager Kyle Bass told CNBC on Wednesday that "normal" Fed interest rates probably won't be at precrisis levels for a long time. The founder of Hayman Capital said the federal government can't afford it. "With every 100 basis points [in rate hikes], it costs us fiscally about $150 billion in interest."

Read MoreRich and poor worried about income gap

Critics of near-zero rates so long after the 2008 crisis say Fed policy sends a negative message that it believes the economy won't be recovering enough anytime soon.

Read MoreNew home sales blowthe roof off with 18% surge

The war of words over Internet privacy took a new turn when Google Executive Chairman Eric Schmidt told CNBC that Apple CEO Tim Cook's veiled criticism of the search giant's polices are unfounded.