that. >> ttt shall not steal. no, no.o. itit's about ethics.s. th's thewhole centererof itit >> gugu,,avereat day. >> " "por r nch" right now.  >>i'm looking for nonor ral compass. >>ake out your hymn bos,s, wel l stt with number36. weome to pour lunch '. this welcome to "power lunch" sheriffs are h heangng lower dada oil is downnother dollarto $63. we aoo have a a 35 bililli three-year note a ation which we'll get the results from an ur from w. that c cou m me the markets a a well. >>anditit's million-dollar home day here oncnbc. this houre'e'll look athow much home w wchch is worth million buckckwiwilluy you in florida. and we're alsooing to speak k wi a so-o-lllledondo

vultltur she's pickingvever dealslele by swarmsms oininveors. > d i'm michelle caso-cabrera. ththe o will tell u us where he investstinhihis $5050 billllio and f frr b bigimimsupersta vestors are buying. u'u' want to lien. th all madeonon last year when almost no o o else did. that's ahead. in the memeanme, here's your markets. bertha is at the new york s sck exexchge. bertha? > rororte thanks very much. the markeketsrere in t the abse ofny economic data today, folks arar w waing to see whaha happens s wi t the trereurury auction in the next hour. look at the s&p a a a precacari point of s spoport level. we break the low o of 8888 the s&p at a ononmomontlow and the dollar index a at a two-wee high. materialalarare wer as a result. duduntnt i part because t thehaa a lalay in aapproval of onone

its herbicides overerse.. alcoa bucking g e e trd bows ununci back. morrow, are the hmhmosonon see positive talk? apparent leewaynn washingtononon the psisility of lesess stringent governmentnt plan? >> re talk ofststulus in the last few minutes. the majority leaderer i in e sesena s sing he'e'd be open t send stimulus program. let's goovover to the n ndaq an briaian. >> thank you, w might go to leleve we haven't seen since may. we'r're wnwn or a rcent. it's n not quite 2-1 so i terms of eadthitit's not a brd-d-bad selloff butut with some big names thesesepo prpronncncedweakness. microsoft has aa securityisissu and they s shey're workingng on a tch forhat they call the ze day security e elentnt but they're downwn 1.9%. yao!o! launching a n new search pad asststt.t. you u casasave yourototes and sd it o on twitter or facebook tt down 2 p poi 6%.

apple down 1.7. amamon down n 2.6.6 i wantnt p poi out one positive, bank of amerera,a, merrrrillynch,ndnd ntnt, has a buyyrating. marvelel i up 3.1% butotot pulling up the broader chips. rick, he's inn chicago. hanks, c crse, i don't neneedo say it. you already kw.w. $3$35 bibilln? isis h been the number for the ththreyeyearote auctions and in abt 60 minutetese'll havehe results. does anybodody expect this not go well? not manyny traders i talked .. erere'a lot of thehem comomin forward. mamae e tomorrow's tens anand 3 might be more interesting. let's go b bac tosue. believe some b breininnews. dedeed 're going to goo to sharon for

the eaeaki nss down in newew york. >> the energy department leleed its short-term enerergy outlook and d eyey he raised theieir ouooook for00009 world l demandnd they're sing it upp by 170,000 barrels a y, closeo 84 million b brels and t therere raraisg theorecast and raising their 202009 otput forececas for opec toto 28.63ililon barrels perr day. they continunuetoto raise thr outlook here for dedema.. a betttt demand tlook inn june. that was the f fir time ty raised in tltlk since septptbeber. the idea being t tt by thee e e ofofhehe year, 're going t to pick up in demand. abebeer tltloo there.. there e we a a number of ananal inin poport today frfrom bank amicica goldman sachs, reiterating that they y se oi t $7aa barrell by thee end of the year. thth i is r 2009.. as of stst month they looked at

oil to averara a arod $5858 a barrel for t the year. > araron stay with us. wewe'lbrbrin in addison armsmsonong. a cnbc contributotor stanford, connecticut. addison, you heardthth numbers.. how does that seemith whatt you're expxptitingnd does it affefectouour forecast? >> it does not affectt forecast. i'i'm surpriseded a at e revisi upwards. especially given last t we's's unemploymentnt data. perhaps the group t the wasn't able tooooo very closely in the time allowed at wh's going on in the broroerer ecocono. . >> and ththe price is going d d sisincthat unemplplmementreport t tt's right. > i want y to knoww the u.s. l l demanan tyowered theirir forerestst. so we're talking about w wor oil dendnd they raisesed atutut lowered it r r thu.s. theyey raised their p pri targe for 2009 to $6$60 a brere so ty

raraed it a lile bit well. s s they seeeem tbe sayiyi we wewe w't'te the masters o ofuru owown domain whehe it c ces oi pricices >> but that's not ananytngngnew. they must b b looking atathihin d what the imulusacacka there is d dngng. ununrtuna unfortunately, the s stilulu package heheren n thu.s. is not vivi the same efctct o oil dedema. the consumer, uikike china,isis such a a huge driver of the economom twtwthirds of thentire gdp i is based on the consumer. until that situation improves we're nott going to see a picku in oildedend here i in e u.s. >> the k key will be thee g dedema and what happppen >> we'll watat tt closely tomorrow when the weekly data comes ut. th w wl reflect what happened on the rurunu to ththeth of jul hoholiy. >> see youou later. thanks. . as you heard a a little whi ag the s smulus debebatis startingng theheatup.

obamadvdvislalaur tyson s say lalaakers should draft a a sece stulul bill saying thehe $787 billion papaagage a appvevein february w w a bitoo smallll to use her terms. chuck dd caught u u withthth president on his international tour to talklkbobout the state ththeconomy.y. and our ieie washington corresespoenen john harwood i in thehe ite house with ghlights. o onef the issues that's leleva to whether or not there will be a second pkakages whether the obama administration got it rightht on the economy t firsrst meme before passing t $787 billion stulul elilier thth year.. that was aisissuthat joe deden,he vice esesent, raised over thee ekekd, saying we may have misread t t ecoconoc situatatio chuck todd a ask the p psiside and he saiaid mieaeadi might noo be the r rig way to scribe it. ta a listen. >> r ratrr than say "misread" w had incncplpletinformatatio we camen january 20thth. it was only aer the first

quarter numberss came in, a as yoll recall, that eryrydy looked and said, ee econonomy rank 6%. so i it' happeningg mh more rapidly. and at an acceleratedpapace tha the projections that werere out there at the me. >> but,, of ccoue,e, the sue goggorward is gngng to be whether r n notou can politicalllly achieve anonoerer stimululus ckage and etethe it mamakeececomic sense.. i can tell y y guys t tha i talked to a senioior administrationonfffficl who said wewe'rgoing to beery, very rereluant to go there. don't knowfitit's politiciclyly poibib. the spenendi issueisis onehat's a prime cocoerern, pititally speaking, for the a admisisation andd democrats o oththeallot net year. itililbe some momont before the decision is made. ththe higher ununemoyoyntoes the more likely i iis to happen. but they won'too there withouou a lolo ofololicalprpresre to dodo so. >> sosoun le the a aininisationn is stiti usup forit. and then steteoyer said we'll need to be opened tthe yid of

a sececon stulus. bymomo eststimeses only 10%f the currrrtt package haseen reased. how cannee judge i effectivenesess t ts popoin >> that'ssart of t the argumemet against t .. i talkeked to marark earlier to o is very wl spspecd economists on both sides. some of f th administration has lilisted to but he's a republican. he said it's too early to say with whether we n nee a second stimulus. m mht in the $400 b bilon rarang in thehe rst quarter of 2010 but we need toetet a few momont go by beforee gauge it to see if it's really necessary. ththk,k, john. the bus. it's summertitime you know it's summertime when the bubussare nning in spspai what abobo onalalstreet? will earningnganand e economy stopop t b bl there is? ststl to come here.

that's's mkk srsry this morning on "squawk box." is he ririt? uld this b be the besest inststme period? let'ss gather ourur "power lunc" grgrp.p. gu, , cole that with this prevailing smingly changing mood in thee markets now since thununployment report last thursday that sgeges the ecomy isn't growing as muchh as we thought it was. oil is cing ddn.n. talk o a sonond s stilus package. steven, aree at a aoint where we'r're eiei a long-term instment opportunity butut lower prices are s sti to c com hehe? >> therere'soioingo be a l l of chopoppi.. there's going g b be lot o o chchopnnsecurity's's prices cause there's a l lot of chopnn the datata. a year and a halalf o o weere e pricico peececon. coming into march, we e we

priced for the ararre m m gegentmen drest ma g g d donnd as we r rovered wewe nd this proaoactee reason o buy and there's the firsrst ivi tiveve aument divative gugume. what's the proactive reason? i thinknkhihis ll be an active managedenvironment.t. i think it wiwillee d dfificu bt itililbe doable. >jack, whato o u thihink will this turnrn o t to the best investing timimeover the next two to t tee yrsrs even ough it might be ough? >> i imimigh take nger than that,, unfortunately. but more of wththan a shshed recovery.. what they've beenn saying, the theoriries o of bottoms that wi take place makes sense.. a a t ofhahat is cause of the stimulus package.e. if they didid it righttthe firs time they'd creating jojo. isis package is notreating jobs. it too early?

i think it is. but that doesnsn't c chae the matter that r rig now thehe mart is concerned abtt s supyy and ththe treasuryarket and t facac that earnings s wisufffferoing ahead. >> but, i t ts s isn popounity a and a l of pepeop feel it is, erer do you pu money y ghght now? you're sining values t tha a l of p pplple are oncece -in-a-lie opoprtunity s >> we're puttingn strategic entranspoints. i have to agrgr with your guests earlier this morning. looking back ten yrsrs fm now you'll look at is a gat strategic c iic trtran poinint? >> i thihi there'sower end consumer discretionary. theononmer isototdead but he's damaged. i think in corporate ndnd space that's probablyly ere a t of people who have e be hurt a and stst money, but tyy stillneed to g getntnto e market s s

vevement-grade good corporate bond position may not t a a b idea for a t of p peoee to weher this and get exposure. a lot of peopople said t the wouldd avoid tasasy bonds for ththe ar ofinflatatio what do you do you'reotot putting it i ihe s sto marart?t? >> look for the y yie cve and itilill steepen. atat'd like to o do is look managed fures. th report we'rere seeeein peopl put theirrmomo into the long, only-index commomotyty funds i e e wrg wayo o o. >> thahank you.. breaking news inwawaington inin t capitol building right now.w. vice presidedentidid is s saring in t thenenewe senator t t join theranks. al frfrann,n, the formeromedy itit andperformer. he udd the ckck the lls of "3rock." seven months behind schedulule t finally has en sworn ashehe junior senatorrom m mnesota anand h he' completeththe supermajajitity. >> he's going g toavavso much terial when he goes b bk to

comedy, being in congress.s. >> he'll haveto wait fivee and a halflf yrsrs but it r rains to sehether ththat so-called supepermororit the 60 dememrara that t tak up ththe sete, theres former senatorroro minnesesa,a, walter mdadale partf the sweariri i ineremony inhehe 8080s and formerr vice presiden. it rains t tbebe seen whether that susupeajority hhol. a a t of s squmishness in the ranks. >>ndnd senatorsho frequently aren't the becauau illness. > wve had a lot of fololks decrats kind of abandndon se of these health care andnd e ery isissu. . >> but i thihink ty'd ratatrr have the 60 s senors just ca, rather then t tre be sckck withthhehe 59 and thatremains t bebeseen what hpepe afterthis. atat a ate, a al franann,n, is call "mr. senator."

he usedd toake fun o of himimlf because nobody h ever heard of hi nator franken taking h his seat. telelomom looks wn the bael at an anti-trtrusby t obama adadninisttion. gogoog,, pharmaceuticals,s, aiairlesesre already a target. isececsion the righthtime to cracackdn n business? ishehe psident going too far?? 0 "i'm rethihinkgg everything...

d#d#: 800-345-2550 including g whi i ust to look after r myononey tdd#: 1-800-0-34252550 tdd#: 1-800-345-5-5050 that's great,igh bebut t i'nono" tdd#: 1-800-345-5-25 "i guess i'm just doneneitith? tdd#: 1-800-345-2525 "oh, i'm not thinking ououmoving my money. tdd#: 1-800-345-2550 amam ming it."

how muhohocan you getfofor a cool millllio we traral l cot to coast showing yoyou att takes to get your foot in the door wi great deal for l ling or investing. they'd today oncnbc. > ahead ofof earnings laterer ts week, and some econonomi atats, ee markets are vererymuch under some pressure today. do about 90 points on t t dow. the s&p isndnd presessu as

well, as i thenasdaq. some of thecommodity'ss markets, ececically metals. >and the justice departmenen is crackingown on wtt theyey call anti-competitivive practic. this time it's e telecom ininststry is thebaba administration going too f far with anti-trustt action, , especially a recession?n? joining us nowow f the power grid debate. ththe l leg dictor at publicic knowledge a and syndicatedadadi ow talk stst ben furgeson. you each get 2sesecos to make yoyo case and weo at it. ben, isththis action a good ea? >> no.o. i thinink 's's bad idede i thinkk the obama administrtran has oversteppepehehere byaying inhehe down me economymy wllll go a aft compananss that an'n't having t the massive e enining atate look at. you look a at oo compmpanss in telecoms they looked at, at&t and vezon, theymamake some ca.. but they're ofof their -w-wee hihi and mucuch lowerththan the were were in '05, 6 and '07.

> antntitststis t the best imimus. if youou wt t to cate jobsouou got to give new entrtrana chance. but the reality is ifyoyou lookok a it. >> in 12 seconds i'm impressed. we'll haveou back.. veveryood ecocomimic response. >> you look rightow and y you know whehen t the economy is ba t t of times companies end u merging and coming tetetr more so t survive.. atat'se going to doitit thehe mpmpans? if you're weweak it's okay to memern you're b big we'll punish you? that makes bad b busess sense.e. >> that's not wh we're talking abouout. we're t talng a autut trying to give n new erants a chahanc and eak upractices that ememerdd in t t l las eightyears.s. we sawhe bellystem regrow back together ainin. 'v've en a lot consolidatatn n alady in the mamark a a that was notececau

the e mpanies were ak but becauseewawa street wanted high prprof margins and tyy t go-aheads frfromhehe administration. high profit margins arenen bad if youou'r willing to work. ththe oblem with antitrust an anantiomompetive behavior in new economy type businesses wre it can bebeveve hatonforce correctly, thererealhing is, you want to reward people who ararininnvatvinnonovaveve >> let's t talababouthe innovavaonon. they are puttiting hdrdred of llllns of dollars iad. look at thee ipipho. look at th touch blackberry. the realityty abt thisis, it's good for the compapani to put these other products o there and for themo have t the money to try new ideas a and things.. you'reelelng me oing afterer these cpapaes and saying, you're getting too big, peoplee will prprosrr from that? it doesn't make s sen on paper.

>> whahat a aut the i iss that consumers suffer becauause pric go up t t high? >> i ionon'think s ifif y l looat the mamarkplace therere ee a lot o of carrierss there. i look at the addeded an people that callllurur office d i i lo at the airlines. the factis, i'm g gd these cocompies are out thee competetg.g. i don't think it's's one ortwtw compmpans.s. in myown i have a at asas eight to choose f fmm when it comes to my cell phone. >> holold, ten seconds. w wn you raise prices thee thingswiwith anti-competitive b behioior 're all p pining a monopoly tax. doesn't go to health cce.e. it gss to the companini.. i don't oecec to themem making profit but i want t the to woro for it.t. >> we'll have y ba. see e yo lateter. fororhehe nt 20 sesendnds, e miioion-llar home day here o cnbc. whwhatind of hse $a$a million bucks buyyhese days?? a tt more thth itsese to. we'll head too miami to e if you the pickk up your dream ho. >anand at 12:45, it's the "t momone halftime report. . >> do i get a t te lilimi

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the dowisis down 100 points. but two stocks buing the trend,etna and united health care are hhehe andhehe s&pss leading the wa talk of c comomise on the public health option is boosting the e entire specter.r. t these are the leaders. >> day here on c ccc we're loining how much a millioion bucks can bubun citiescross ththe untry right now. we're looking atanan kikingeat the meltltdo i i m mmi whehere the biggest v vic has beennhehe housing rket. e man kwnwn as t the "condo vulture" is picking ofof deals left by a swarmff vevests.

michellekakakaczskski takes aou with hihi >> to own ththis condo in miami all y you ne is cash. $2.1 million at i i pk, this trophy, two-bebeoooom on the ba is a srt ssal the e nknk is asking$9$90000. >> it's 50% off. >> and 100% miaiami still.l. topp ofof t line kitchen, bathroom, details likeke aririva elevatoranand at view. the down side? in a building full o ceceleititie it's alsofufu of foclosures. it h hadhehe fifth hieses raten the state, b but the condo vuue says at isis price b buys could make a killing.. >> do i think it t wi tradenn fiveve eaea? ababsotely. >> he sasayshehe greatesest deas around are alreadydygone. the boom, he says, h hit miami bebeac a fulull year ago. all tonn thissosout beach hot spot onene owner is slashining cocondbyby 7.

there aree currently 81,0,000 hs on the market inin south florid. a 25%rorop since november.. and goinin >> this is bargainin sement. >> thihis is bargainn basement? >> bargain basement but n not yt a bottom according too some experts bubuaa millionuyuy a tt rere luxury than feww years ba, , en if the bt als vevelown t coupe. chellekaczynynsk cnbc news. >> d d 're in bererly hilil showing us what shehe finds in cacalirnia's priceyeyestipip codes. th's'soming up later today o the "clososg g be." is it titime toininve in hoinin maybe now w yo rlly can purchase y yrrsecond ho.. whwherisis the ght market?? we profiled mii. tt joining usow t t talk autut atat i jack mccabe.e. ceo ofof mccabe researchndnd consulting andmonicahatcher,, real estate reporteter from the miamii herald.d. what does y you get tete you, monica?

we heaeardhehe gentleman the report talk abobout ththin that me of these condos w wll sell at p prot t in a yeye or so from now. do that bear outut what y've en seeing? >>well, he wass talalki about miami beachhihichas one of the markets in our region thahat sa maybe the ls severerice decline than otherer papart of town. sosoutflorida is a ve vast a ad diverse r rl e este rkrket there'e's memearts of wn where that's nothehe ca. . >> there's onlnl so mhh land on amami ach right now. no. thee isn't m muc land on m mmim beacach dd it's hily desirable to people ththat live roroad or ou of ththe state. in othehe parts of totown meme are goingg rr$50,000, whichch i an interesting ququeson, too.. you'rere lkiking athahat you can buy forr a m mlilion bucks o o $50,0,0 0 or $3$30,0 orveven $2$20,0 in south floridadais tremendodo. . >> jack, i r rember yrsrs agogo dog g road ip through m mmimi and famously, two r rea estatat agts told me, at the titime remember --

>> i remember -- >> prices are alwlws s hier in miamami. that was one trainin wreck you cod d e cining in souou florida. w what? w what? has it comeeown eenoh,h, do you think? i i there m mor tocome? i i there m mor tocome? no. i think itit wi dropnonoer 10 to 15% across sththororid llll. the souththeaea arerea of miami beach, in particular, i is one f llll. the momost desirable andd it's complelelyly built. it has some othe nicer ghghris at the southern tip. it's very desirable and pricess have maintained to a hheher gree. theyeyavaven seen the rapid prpric declinese have across the causewayvever in downtowown mimiam but we've stilill tt a wayso go here i iflflora. onone the things people arere yiyi to do is g getnnhehen prices are cheap buthahat dodon'n'tecessarily mean t tha prices will m mov up an time soon. in our neck of thee woodsup here it tookk almost a a decade f f prices to r rea level t tt is w had seen sometime ago.

this is no guarantee. >>ll right. whwhat we've seen o ove the las five mthth when look at realalto ecifics is tt the cocond prices i condond single-family home secectoarar bocing arouou.. that's bececau what's selling are the bank-k-owdd homes and shshorsales. mostlylyhehe baba-owned homes. 60% ofofhahas sellilingare foreclosures a andhoho sales. those are kind off being kinddf epept t of the maetet. whwh's's hpeningnd what we've seen iss lenders a holdining ba se foreclosureresigight now. theyey'r c cnes selling s ses a thforeclosure auctions. why are they doingg that? i in denial? t thiis the topic of an upcoming story.y. i i thk because they want toto control l th aunt of foreclosure inventory t thas ining dumped on ththe market.. what's happepengng i people are yiyinghese homes. ththe bas knowhahat buyers a willing to p p and that's rlllly key. they can likee control the  mamark. there's so m muc -- ththers so many peoplee i i distrtres in h

florida it's reallycatastrophic thth ts hououngng market. tetensff thououndnds of peoplpl. >> the bottom lili question. >> the bottom lili question. this time y? would d yobubu something ririgh now inin south florida? >> i think we truthfully, you sa 10 to 15% more o t downside. downside. >> if youave a lonon enough time horizon,ouould this be a odtitime tobuy? >>haha you're looking at a 5, 7, 10-y-yrr horizon,,here are some deal thth i is make sense.. odtitime tobuy? ththe'e'ssome foreclosurure lel leles tetelly, 70 and80% off leles tetelly, 70 and80% off what priceces were in2005. you can make a a song case thah prpres are getetti near t the prpres are getetti near t the bottom inn c cerin rkets. wetill have a wa to g 10 t t 15%5% off a miioion dol property is a a l lot of money. wewe sll have a big dropp to go. i think 2010 the yearr t t y.y. >> all rightht i w wder what th two real estate agegentarare d doi by the

way. > y remember atat ththeyerere theaeall cute and peppy and they aid, ohoh,no. preses a always going to go up. >> andnd h l londid it takeke? >> i thihink it was febebarary 2006. . >> some people in ththarea, ten yeyearto see price rrecery. >> y y know, a a million bucks we've heard d it buys lot pas s florida bu n in other partrts of the orld. according to mercer's c cosf living rvey, tokyo now the most exnsnsiv city for foreignersolollod by osaka and londndonroropp out of the world'd's pp ten. most expensisive c cits f f the first time sincece2001,, new yo isisn eighth p pcece to nd, making i ithehe only cyy in america to be inin the t ten. . a w wilriri for energy prices thihipapastear. now, regulators wawant to clamp dodo on oil and ga speculatoro. what it will meaean ghght ter this.. ( honking, news raradiu)

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th is the official card.d. t theorld's largest airlinene > some of the alth care and managed car winnerer highgherriri for cigna by %. kof trihealth, up morore than 5. rumors that ththerss some kind f cororomi when it comes s tohehe puic auctiononhen it comes to health careeform and w wheer or notothehere will be p plilicr

a a alth insurance cpapany adadnistered by ththe governmen well oil ctatain has had some wilild s sngs the pt yr, he said, stating t the obviviou 147 atat teak last year. $33 earlrlr r th year and now at $62.2. gugulars may be pparing to crackdown on speculatatorin that and other markets. mpmpto pearson is in washington with dedetas.s. mpmpn? >> bill,l,pepefically, the chchaianan, basically mayay b thinkingng o craraftgg tough ne rules to clamp down o on speculative energy traders and othercommodity's markets and he's plannnnin se public heariningsoo get at the hett o ththmamatt in the nexext few weeks. rececent spent a a lot of time testifying o oapitol hill in front ofcocongssional commititte a aut his enency plplanoror r regatory r rororma he wants to hearrom bunesses. mamaetet rticipants and consnserers whether to set position lilitsts on all commodity's f fure contracts. the chairman sss the focus of ththe first hearing wl be

possibible speculative limits o crude oil, heating oil,nanatul gas and gasoline. ininther words, energy mmodities that have a finite suly. a kekeisissu who should qualiliy for exemptions om those lits? sosome lawmakers say hedge exemptions shouldld onlygogo to ththeehat plan too buy t the commodity likeairlines who routinely hehedgjeje fuel versus those that hedge commodity popotitionas part of a risisk management sttete. lalasteaear whenil set a a reco, they were on the sideleleses an there e rere cplaints that investor funds and specuculaonon distorted tse markets.s. noww there is aantspeculation lelegiatatn pending in congngre thatouould direct t tm to s set posititi limits onil and otherer enererutures and sell out in this report, the rolole s spsp and hehedgunds in thohose futur mamaets. bill? a a right. ththanyoyou ry much. that's g goio be pular.

by the wa auiuick programming note, commissssnene of the cftc, bartulton will be on "closing bell" at thehe 00 p.p. hour. > i i w wonr ifhehe "fast moy gang will havee anhing to saya abouout l l this. wewel see. ahead, the c of th muaua series of funds, wheree he'ss investing the $50 0 biioiohe has undeder nanagent. @day.

welcomee to the "f"fasmomon lftime report. ththe ocock market is prpruity mu low. investors gettttin nervousbout e cocomi earnings seseas. whatat'shehe best way to protec and pfifit. let's get you t t w wd on the street. dennnnis i joining us. anan patririci edrdrds. before w w get to th,, here's scott who has breaking ne.. scott?t? >> reporter: melissa, firirstf all, the secayays it obtained dn ast freeze an roughly halflf bibillnnollar allegededononzi scme involve pr have d dt

royaltiess a 2 26 and early this ye.. the secaiaidt t wa a ponzi schememe in the alleged ponzi schememe tt we k kno so we, theananrd finanancll ponzichchem allen stanfordrd, his aororne ysys the government is in on coordinated attack onhihis constitutition r rhts. they w won fr up his aets to pay for h legal defensnsehehe the court t ss threatened d th insurance cacarrr r th a agrddo paforatat athe same meme, requiring t ttt if hs to g those assets hehe would have to waivivhihis fth enendmt rightgagast self-incncrinanaon. they s sayn n e filing filed yesterday he'seieing presented with either waivee hisififth or sixth amendmenent right to uncil. eieith s shod free up t fends for his dedefeee which theyy estimate a at $10 million o o dismiss thee21-count indndicene filed d aiains him l lasmonth. meliliss >> thank you verermumuch

we have marketets atatre sesellg ofoftoday. the dow down 1.25%. the nasdaq dnn by 1.1.50 whwh's'soing better?r? the denensi lays. ifif consumumer staples.s. patty, how a you plplayg g thths >> go foromething that's alst a sure thing. people wonon g givup cigarettes d beer in arrecsion. we're seseei g gd actctio from illip morris i ierernaonal and moleson. if youou lk k the overseasas exposusureouou g from phlip morris it's growingtt over 20%. valuations a arerereasabable. i thininththesthings gohihier frfromhere. dennisis, urur defenensi plays in this market? >> easy. keogogg' i like kellogg's and gegenell mimill the samereason people d don gigi u up x or beer, they're nt going to give up theirir breadnd cereal. ancocoodity priricearare fallili so the profit mamainins for nenel mills and kellogg'srere exexpaininas grain pces go down. >> are you concerned ty'y'll haha t to roll back prices to et

ee falling c cmodity pres? >> o. >> no cononce about that? >> they may r rol them back som. t t t asucuch as commodity priceses hee llllen no. > stttt, what's the t telng thflflr in terms o of rkrket action todod?? aaharp decline prerey y mu ross the board? techchnogygysome gainsonon the back of bank of a amecaca and merrill lynch bubuwewe'r l losg the adership as well? >> peoeoplre etetty didisaointed. itit a a follow-on from whatt w sasa withunemployment.t. the turn-a-aroddn consensus sentiment i is amazing. that was reallll a surprise and peopleleththers no good nenews thisisss probably nothehe time when we want to startrolling oueaearngs androbably not the titimehehen we wanan a alc lead the y.y. so peoplple ee very worried abot what we d to seeeeut of earnings into anand t tk about tation. we canan't ignore t the commodi trade. jo you've beenfollowing the maet and it's tough.h. weotot the headlineses t tha th might be more restrictioionsnn

furere trading when c com cocommitity. you'u' theory iss that ws dict will youimimcted the adade l? >> absolutely. it took t price ofilil down $2. it hasas impact. that's one of theeeaeans why wee keke sayiyingmomo away f fro th exposure to oioil fufureres. it's thehe wild west. way too volatile. geyoyo eosure inin oer names. > l beta oil names. low beta,ththe lolomovings. n't looooatat t rigs. >> slow and steady. >> slow and steady. >>ooook hess. lolookt t the names t to get you energy exposusure that's t thetrade. >> a at e e me timeme, are you coerned about expxposee t to mamainins? conoco phillipsayays 's's mosty posed to gas.s. >> i would n not put tefefins oranany ergy company thatas the eosure to n nurural gas onn my ladry lisist. i wantnt big, integegrad d l w obal expoposu. . >> let's talk aboutut fifinaiais

thee deer indexex down by. y y are watching, it's t the bk that s ss more towards thehe regionals. > i l loo aul. huh a ralal o onery light volume all the wayy from the march low into the highs of f a ekek a. you hadad to likike them for peod of time and t y yld cue e is sloped, but at's well into the mamark.. ththishahart looks aul and looks li bank stocks are heading wer. sorry there s sh thing as the titi-d -- >> i itasas that l loo to it an looks like it f faid d to ve the golden cross and 'sheheadg baba down and the fdd i run in cacada is selling bkk stocks. >> they lost their upperer momentumural in june and goldman sasackss earnings and theeek of lyly 13th c ctical for t financial and normalized

earningsgs a a a we gngngo see a return?? >> letet move o o to the e ne tre.e. they wll bely andhip shares and intel and the leadinggainer isis higher by a abo a a quarte a percent andhe sharesould bobounand see a a cyclicalal rebounund. papatt what do you sayay abouthe chip mes when you see the pc makersrsndnd t demanand to rcrcha the devices? > t on thing c conmers are willing touyuy is theittle dedeces. eyey a so all over ipopodsndnd iphone and besttuy isis selling ufufthat u can putn your popock.. there is somomhihingo it and i ink when wetart to come o of thihis mess that w we ee ini will be ttecology. i'm not t 100% sure we are ther yet. f f might be t too earlrl >> might e.e. >> what are do y you saynnterms the corpopora upgrade cycle? will wee s the wa upgrading in the economic environment? >> the best p pcece for atat is microsoft, the l lauhh of windos

>> you love ththat >> theheararke share, butut the lach ofininws 7 is important september and octoberer wiwithhihis tapepe y have tocut down thatt position. don't forgetththis m micsoft isis pbabay the bt out thee with theirirash potition let's s mo o on d get auctions tion in here. joinining on the fastt line an you u ar watching a as well wh what we often . higher by 4% a as wee a chchki totordrds ssion wsws > t f fures are flat actually. thee july futures ururtes is the ndd for ca andnd so i is e nextxt mthth t, the august ntntra. not untitiyoyou get out t to september that y youhahave a a reading g of . basicallllththeris a faiair amot of debatate in the pits. isis igoing to c connue and will there be apipike i in ee vicks. certainly y were justt belowhe moving avavere. could meeback up rough

that and if wedo,o, right now e options spececulororare not bebettg g th that happens. >> they haven't gottenenigighe than what theyey he.e. >> that's tr.. are y seeing d did differentiation n in tmsms of a vixen? >> not so much and rtrt of tha has to itit theact that the broad market has just really gottenkikied over tast week or so.o. we d don s see a aotot o differentiatioion twtwn the indedex. >> thanks s soucucfor joining us onon t fast line. cocomi u u nt, the f fir terview with the biggest neutral fund ceo out thther where isis he putting his $5 bibilln n wwor morereasast money halflfti r ro after r th b bre. >> time too open t oks on this ththe-month rally a and

veveors may not l lik what they see. re's how totorotect yourself befoforehehe earnings seseas. >he trtrad.. who holds the e edg ininhehe wl of program trtring. we havave e e tre from this ststor plus, nearly a a bililonon unit sales s ereryyear. he's how to get behind t the trtradgoingmobile o a ameca's poststararkeshow tonight. erere ll you find the stabilitity d d sources keep you ahead of this radldlevolving world? these are totougququesons. that's why we brought tothth two of the most powerful names in thehe iusustr introducucinmomorg stanley smith barneyey herere trereink wealth managemenent. morga new wealthmith bararne mamanameme firm intrhe t to swer...stanley your questioio.. wiwithver 130 years of experieienc and you know whahat, works. trisystem for men: flexible new proroamams peononaled to meet youruroaoals what's great a autut nrisystem is you eat t theoooo you love

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welclce e ba and time for the "power lunun" " tre to .. you h hee a densive py up that sleeve of ururs. >> very a coke and smile. we needthat. look at coca-cocola and resiliey in t ter of earnings. got to likehehe story and h h keeps prsing upatat $50. it willl g get above $50 at some point.t. i like co-cola. >> theyreontinuing to make investments in placaces likeke

china.a. >> andindia. it is above15%. u u tta like that story. >> that isissayopopic we d dn'n get t touch on in the a block. hmupup %ndnderhaps they llll backway froroththe public plan. >> at this p pntnt iegin to llll ithehe obama confusing trade.e. i don't knkn how it is exactly d you craft expososur and y you dot know from one day to thehe next. >> let's goround the rn. do you buy orrsell? i i'm buyuyin k kelggs and sesellgg bananks and sellingerer shirt hathawaw.. >> i like p plliporris and thehe greenhoho. >> e i'm in the market and not smart enougughoo pickk a ttttom andotot trtry, butrere fensiveamames will be health ca, jnj is papartf f thclass of t t o outfit and i would s sa

away from the e inrerers ouofofhe risky trades into t the low beta. >>oil or verall? >> in g genalal and across the arar >> that arare eses i for us. cocomi u up next, breaking news from thebond h hitthat may move the markets. reresus s the gogovement's $3$ billllioththir-t-twoear note auction. instant market reacacti a awell as a anasisis. >> receiviving $50 billion in n assets. we will talk about thahat an wt to see ere eye few othther superstar investmentsrereuying theedays. then it't's bullversus arar wwt's time for comomrcrcia real estate. all of that straightht aadad. t t sec is accusing prove ntroyalties as an offering

fraud andd pzi schemee and said the offerings in question n ininvoe oilndnd ga and involve re than 7700 investorsrs alalanstanford's a attneneis asaski the court to free up funds to yy for stananfo's's defense e d disssss the ininctctme against him. the ergy rsese its2010 forereca b by a barrel. thatat'snbc.com news now. m scott cohen. >> welcome y tolt second hour of "power llun". a couple of f stieiewe are fofollining. threreyeyearotes and theesests are justst o i in moment. thousands aree saying farerewe t the king o of pop. the memorial t to getndnderay shortly inin dntntn los angeles. weill head there as wellll

>hat are they buying nonow? we will you. >> i'm'm mhehell cabrera. ha w w lost t the willfor alternative e energy? weweill bril on the lack o opuph to go green. who wants go? >> you see boone pickens is looking g fo a site forhihiwind farmrm hwawas ilding there in xas. it not going to happen because they can't get enough transmission lines. >> a litittlmomo complicated ththane thought. as w w wait for the-year note, let's go tote stocks excxchae e where priceses glolowe >> we are athehe l levs s cle to

may lows as farss thehe do we g go bebeww that dd we s see esessu to the downside. one of the things that g lower here in the last couple of h hoé hahaveeen tech stocks. the stockcks havetatart higherr and upgrading a a t twoo the upside.. rick? ddshy of 1.52ss a mumuchhihigh yield than around the quasi-1.49. member that thee higher yield is not a good pricicincocompent because it m mns higher neeld, wer price. 2.62 a c changng evevery dolla

worth available. that's good. 54ananven withh t the met morprphos s of what that includ is still pretty good. om a demand perspectitivett tsts about a a b us. fr a p pringng perspective a c plplus call it a a miminuauction. back t to u.u. people thought we mighght better. itit toad me investorsrs a s srt maturititi a are getting smart d they know the ction process anthth are way not beieing as aggressive anan they have to push it backck to m me the pepe. > h holrsrs of the world's hottest ticks are attendnd sd d star-studded mememorl l fo michael jacksoson. jane iss at t t site,, jane?? >epeporr: people are starting

m maktheir way in.. ththememorl is starting mementily. an outsidede stt you c e the crowd is starting to t thiasas people havave nene iide. ususr,r, mamariaaarrie can go 9 minutes s tohrhreehours. didianrorosss not here. e woman listedss theback up guguaran for hischildren. he mayttend a f filyatatheng terwards.. thevent isosting gg who is fering up a small fortrtun >> out of our pocket i is sutantial, but it wasn't abobout the moy.y. i dodot t thk i have seen the commenentsndnd i weary of ananne who wants to standnd othth casket. that'snappropriate and we should be talking about t hi legend.

someme suggest it's 224 mlion to the cyy of los angeles. cacabusinesses are e expted to do between $2-4 millionn in business and hotel ococcuncncy even asfar ayy as pasasenena or long beach. 37 feedersilill brbroaast, b the man's chinese ll n not aftr thth a ask it will not do so. top of ththcost, t losss of prpructivity as people are wawatcng, but peoeoee here in te city of los angeles, the chihi of police s sugstst if you a working downtown, you mimightata the day ofoff. they have e behutting down freeways to accommodatehehe entourage.e. there is a caskettoming here and some date over whether or tt mhael jason's reinin

ar aually in it o if i is just s symlili we don't k knoththatet. we havee the three-y-yr r no auction resusults. thank you soso mh.h. mutual serieies e e ofhe largest andosost successful family lue around with $$50 billion inn assetsts,t't's ownedby franklin tempmple ton and whoho also man ee 13illion dlarflflagip mutual shares fd upearly 6%6% thanks toto t oppoportisisti approach t tvavaluinvesting. pepete joins us. > w think ththisss a good market f f us. when thingsre too g gdd and eryone is optptisisti it's ugug forththe veveors to findd interesting oortunities. st y yeayoyou had a situauati erere didn't seem toatter r

the ststocyoupicked. it was a tidal w wavof gagaves an feedbacac now we ee in thee situation whee things a areot ndnderl, but t it looks lili w we pull b fromhehevevent and that's gdd r us and s sckck pickekersndnde ee fining a lost of thingss t do. > s sor this a stock pickere market as s a susu and if so, what d do u u ke? >>ii ththin i i beganan a littlt of volatility a a not tomumu timism and not h horndndou negativeeeeeli as wewe.. we aretty eectic and invevestllllver the world a a about halffassets are in nonon-s. names. we like theererge acquiuisionon actitityty ahough you haven't seen a large nbeber of deals as we saw a couple of years ago. the deals out therere d d e pharma d dea a areresenting reread >> all the newews about the

antitrususeasures by t obama adadmistration, d doe that put dent that wl you seeeemore m&a pharmamaceicics. > ware loloining for the dea th have some regulatoryisissu and we think they ar mamagegeab. there is a l lotf f nsolidation generally and i i'm noturure ho mumuchororyou will see. a cocoup o o possibilititiesnd the antitrust efforts and groroh is hard to come byby. you will see them look t to owow meme think itit willee v shape and others think it will b be w-shaped. ththsisituion is right and the ite house admitted it's lesess certain than you t tugught

we focus risk and we wanto ownn things inn apopoorcocomic enroroent and they w wil sustain themselves andndood managememe t tha can w wk their way y rorouga difficult titi. that wks to our favor having a difficult pioiod. >> david wason c cnb and asked his t tugught on the shape of th recovery and how lolong th migt take. here's what they had t tsasay. >> imamagi we h h a beararket anand along the way w we hit tw ice peaks in 20000 a and 0707 indeed i i still is. we are about hfway thugug > oers trade acaccoiningl ere will be huge spasmsalalon e e wa >> i reaeali you haveoo i invtt fofor living, butut the averar investstornn an awfulotot of cacash we keep hearing about all of that. isis ts the time to steppp or you are talking like isisnd somemeon saying we arhalfway ththroh h a cular bear market.

>> we don't veve to invest and people invest w wit us. ourr funds c can ha cash level of 10% up p noh h of %. wewe d't haveo o be fully invnvs and i d't disagree, but thatat makes for a greatvavae in the environment. take advantatagef f th overreactitionwhwheneople are negative and buy thihing ry, very cheap and people get ovover opoptistst. >> financials? >> they aree diy. e e go news is ththey raised a lot off money. thefefear people had of o oaa and cicity cocos,s, those s see have abated. uu haveo o be careful and there opportunities.s. >> what about a fdmomoto company. rere's companany that didn't't take tarp money a and bringing share and bringing out ne products. >> theyidn't do allththe things. e tos are pretty diesy. although i willsay we o own daimlelerand we tnk that's

very, veveryhehe and a diffffent ananal with the other negagati that is the u.u. g guyhave. >ooood see you and thanks r joining us. it's a y yrr l lat and boon pickens s isususng hard f for t alternativive erergyplan. withrices lesshan halfhaha they were e layear, have we lo our will for alternative energy? mething we will talal about in a a montnt >> we willll f foc on real l ta is it time to getinin or te to ayayaway? as wee headout,t,onone stock h been c cutngng t diffident by a nickel andnd thetotocks down almostst 5ndnd quarter%. back in a moment. (announunr)r) we s. but we alsoso sakakpgs so you can n flbyby g stations. fact, we speak mp s so uently, we can sayaynene more thing.

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>> chip stocks a areucucng the trtren tata a a lk. 3% f for lsi andndet's get t mt nenestwho has got more. > me trend buckcker for y.. ifouou cck out the health grgrou the hmos,ou will pull a a babamaman he.. holy hmos.s. 6%igighe as a gupup and all s sx mbers are higheranand one pot,t, ts group touched a one-month hihigh ry, very few industrieies and

sectorors and industries cann me that claim herertoday. these are th big 5ererceage gagaers here today. united and well p poi and aetna and gngna and humana all pushing higherer t t sesessn. is is due to that talk k an speculation and d momor tip. call what you wilill and briri it out ofshington. erermay be flexibility witith the health care sysyemem. b bne picicke is scrapping plans toto bldld thth world's largrgt t wi farm from last year ghs. >> i don't't see w you canan d beer than we have done. werere moving f fasanan i inink by the e e o of e year we will veve plan for america. have weost our well anand s s

prices near $4$4 eltrtric power programdirector anseries. go good toeeee yoyo dodo y age?e? wiwi w we achieve allll that ov the next cououe e of years? >> there i is a lot of potentit erer we have seen continued progress while the ctor has been imimpaed by the recession. wewe s que e a t progrgres last yeaeaitit attracteddorore investstme t tha fossil f fll a 40 of all power cacacy edititio.. >>asasole was up $4. it not anymore. we are c connunuinto see that trend soso from market sharere ststdpdpoi, renewable energrgy will grorow. it will matchevery year. > i will mahh year overr ye? >> we expect continuedrorowt because the driversrs a so strong. if you looook tohe policy sisignss coming all o ove the worldnd heree in the u. where the houseofof representatives a

colele o wewess ago passed the clean enengygy a security act and the senate literally t tod is d debing the issue of trying tohange and look at how we head towards low-carb on economy and thahat' going toened a stronger m mkeket. >> that's a muchch tghgherell and less likely to o be pasasng than it is in the hoe. let's face it. weaiai liperervi to energy for a numbmber of years and it' geining louder thhehe new administration, bubudodoest it come d dow to pcece when people feelel t pincnch, ty look foror alternativeves d d w thth c can a aord the cosost o engy, they arennot isn't t tt simple? >>t's not quite thahat simimpl atate seeeisis that there is ilill i incdidibl strong suppop and even i if there is a momost priceencrease for s som nds renewablbles t the benefits across t t b boa for invevestgg

renewables. >> are a and the vololatitity issueses. >> are peoplplewilling to p payr thee ternative energy souourc gin the economic climate? >osost indications thatat th people are willing to papay because they wanant a cleanenenr future and think t t u.s. needs toet the way on developing technologies and it will add bsbs a yes, it's an instment. >> the behavior that w weeeee wn gas s eseso $4 and p pplple sto driving and lookok f the cheaper gas wherever r it may ,, that i not rrored in thee space. they are willilingoo pony upphe sh for ththat >> i thkkthe oil prices clearly are a factor, but i gugus what we ar trying toto s is theyy are not t the only cto. the is significant otherer drivers like t t thrt of climate change that people are recognizing and trying too t te

action o on emem a the security chleng chlenges. i i inink ice is not the only ctor involved here. >> when itomes to security though. is it possible in our lifetitimehaha we w won need rereigoil? >> that's s a ododuestion. the answer i is is ing to keke a lonong time to g beyondndhehe foilil ffue.. itit g goi to take time.. it's abobo h howuickly wecan acceceletetehe transition n because of the benefefs s th come from itit. good toee you and thanks so much. >> my pleasure. >>e're didn't sound sskeicical diddwe? >> john paul and eoeorg twtw h hot shot billiononais s make a l l of moneyasast yeaea when everybody waslosining. where are thth heavy hitters putting g ee money ririghnow. ststicaround and we will tell you. >> as we ad out, o o stockck i dick's sportinin gdsds ththat od for 2%% to the upupde for the stock trading at

1721.

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ga o o 5%. perhaps buy e rurumo what llll happen tomorrow? brn, where are you seeinin selllling? >> iwant t to poioint out in the previous coconvsation, allhe solar stocksal off and it happens inin steps. wewe a down ande will bring us

back t tththe y l low were above it r rhtht now,w,bub gogoog traded lolo 4040 and hahasneen a below 4 since may 22nd. a a colele odigamames and dell dodo two oririel ddn.n. we wantt to talk about that f f the "wall street journal".". babasilly they arere 3350 a sha from c and represents an 8 times 2009 eararngngs. that's a big p pmimium u u ys talked about intntelndnd marvel from thepgrade tobabank america. backck you. >> thank you v vy y mu, brian. where are the world's toto investors putting ththeioney to woworkigight now. inin tayay "wall street jojourl," greg zuckckmaman got e pipickanand pans andohn ppauono and others. eg joins us from new yorork a hard at rkrkn the upcoming bo, the greatest trade eeve

i'm m adad you can take a brea. it's been a ile.e. yoyou interviewed the topguns. some of them of coururse had a killining years past betting against soso l liky ades i was struck by g geoe because bet on the emerging marks a and dn't so well last year. shststicng withhehe trade. >> he admits he may be making a mistake. believes inn china and brazil ananthat's a big holding o of s. he wasas ht t st year,r, but he more than offsfsett t th hens elelseerere. he is stillll a belilierer inch. arar >> notusussi which we hear over anovov again. ththeyetet nvous there. paulson, i w wasntntrie and 10 ofofis holdings in gold. he is worried ababouininflion. meme say morore anan ththat

there is realllly s sn of inflflatn n rit now. elieves in o oerer smart guys too we are shoveling g m muc money as are otherououries ararou t the globe thatt we will get inflation ande is preparing for it now. >> b botofof tse guys are not afraid toto go a ainst the grar. jo paulson made billions on his going short, butut in ththe mortgage marketsts, i is rt of going with the pararty line and the fear of beingngththat we ar gog to see ilation down ththe road. >> good pointnd pepeop make that crititici that yy,, he wa ororthox bet boror and subpbpmeme mortgages andhehereas mimidd d dnside to therade. u were buying protectctio at rt cheap prices and heis ying up a lot of gogold he is interesting in ttt i give him a lolo of critit t same are he bet against he is buying.

>> the demise o othe credit rkrkethat we have been talkiki about. >> i was ruruck that they aree all prettyororri longer tm and therere t t theme th arose from the sry of the invevests s th we will buy things now a expect the market toto g up orrtheexextfew months and evtually th economy and t the markeke will back down and won't reach the same depths thatate e rehed a few montnthsacac they areverytrtroued l lg-term nojujust about inflation, but the enonomynd they think the stimulus is helping thingsgs a that will gogo ay.y. >> or at pepen ancapital,looks likeke h is very aggressively

ing into health care e en n though there is aaotot oftalk ouout e o oma administration.. >> he isnn other healtlth care anas you guys reported,ealth ca sharar a and hmhmos h havdon wewe and heeisis sticking to h guns and t the i i too much bearishness about healtharare and hhs inparartilala ororthox bet there.. >> he didid so well the last uple of years. lot of f opopleaid he couldn't pepe that. > w u ud d toave him on in te eveving. >> he is thehemost worririedff e people i talalketotond the most skepeptil l the market.. whwh h he doing instead of buyingnghehe protect, hee i buyg protectionlslsewre and thought easternanand central european

markets are e th most trorolelea prlelemac. he is buying r reayy expensive swsws s aninsurance. similalar t t subpbpri t tdede which is what i writing abt.t. 's's inexexpeiviv to buy a no e thinks t the c couries will go a default on their ddeb japan and ireland. >> we haveve breaking news, b b ththk k yoyo it's great to see e yoanangood luck on the g greesestrait ever. >>hen we thought w figured out the story, a secondnduyuyer emerged. ii he never bebeen soononfuoned in my lili. totom rickets had the term of se lined up about 900 m milon to buy the cubs and reuters is cording the sececdd bitteter dd

tught he was oututsi the equity veveor. they agreed to tms with the companynd both offers according to reuters llllbe submitittetotohe bankruptcyy court. we knowow hom and his fher founted td eritrade. wenenew this haha to through theanankrtcy cocourt and the critits and now appppartltl two offefe and this is very, veryy confusing. wewe he herer is t g g to goo ththugugh the prorossss. pretty confusionon and now ther isiswo. >> i h havtwtwo rds for you. sam zl, one of the savviestst negotiators out therere. >> w we thought o orr t lastwo weeks he h haseen playing thehe off eaea other,bubu at se inint u have to call itt a biel th the debt they v. i i n'n't know. >> uimately had itself f b be

decided with basasebl l d the bankruptcyourt h has t decide first. thee fat lady h hn'n'tung yet. miming up o on e half hrr mark and takesuls of the markets. >> politico saiaid crew is using th obama children to hock ththei clothehe they saiddno, w we' not. we wilill rtrtt out in a moment.

>> d dow at l lsthan 70atat 82.. > let's go downo the floor of thnew york stock exchange. we were do triple-digits anand what's wrongngitithhe market? >> all eyes are o twothinin.. technicals t tohere w w are around that 88886 l lel w whi i the moving average anand it's cacaed 8885 the ototr r thg is alcoa totomoowow wewere all ititin on that. we were at 885 a and 886.

alcoa camame out with commenents that pick up tththe levels r rig now. >> thahaarare stock is up 5%. you want touyuy the d before the r rards earnings? i don't want to buy it, b b seeeemshehe cpany i bringining thee glasses a andhehe came out withth t coenents atathihis int everybody, looktt the ololes. they are ananem.. >> the treasury options. they are n n wchchg that and the governmeme ca raise $6$65 bibiion in debt? >> the prlem is everyonee i looking at o o and ifhehe governrnme kps ininti money d printing oney,ee talk about t a stimulus program. u think oil is crack and most of myuyuywill trade down to 55. we will see 85 sooooneraraer than l lat.. >> thanks, stevev appreciateeit. sp me if y you heard t thi bere. cnbc's chliligagaspino said tomorrow will be ththe day t th the govevernntnt unveils the pl to take toxic assets offhehe

books. ththeo-o-caed pe pit anan. >> tomorrow and torrow andnd tomorrow creeps s in at this pey pace from day to day. >> all our yesterdays have theh waway b bus death. i i llll sp there. >hank you very much. >> theeaeali is eyey he been dedelang this since wednesday.y. they askeded them tuesday night all ththeelections of their final paperworork d d ey are ady to go on weesesda ththeyay every d day it's tomorrowow the people that have beenhohose and told thaha it's tomorrowndnd that theyy a going to annonocec. i don't knowow wt't'worse that they are delayayinththisr this riricuculo name. >>t't's horrendouous. >> one sisiti thing is weget

to say we have a scoooop d d mes on thehe lt.t. we found o o a a cple more namemes. we r reptetein the p pas and ge have partnership anan welling isis involvlved and there was spspululatn about the lklknd ny roles tt t he would d out, but he isinin asas wellll. i'm waiting too hear on whether pimco is in as well. i don't t owow that, b but that would be intetereinin that's anothername. bill grs's name s come up with howee is doioiany things fofor e federal government. >> it'ssoo dierert than talkininababou lliburton. need company who ishaha the ababitity get it done. u u ar going to lolo a at . >> you have e to it nice to openp with other players. itill be i ieresting to see whwhelelse is. >> that will be interesting if ldman sacks s is init. anywhere betweween0 a and $45

biioion. we arealalki about buying e assets offhehe banks. that's a far cry. the badbankasas suppopose to b b everytythi.. trtrilonons d they dumpedthth bad d ba c conpt and came up th the partnership. they a are t private companies that will l tt the firms that ae lding the toxics up. >> we will haha y youack tomorrow.. >> when it starts.s. >> i i wl read anonoth poem. >>eeee y later, shakespeare. >> withours to gogon italy when they kickoff aedia outltl.. chaos rules fororivive outside d wewe arejoined by cnbcbc recoveg the sumumtt f us. luy y yo evev >> lucky me th were live outsidend the obobm is you can'n'tet near the place. you have over 3,000ouournists

rning up and the problblem is w are not in the t tow and tell you, it's a ghghos towown. alall haveissecurity and popoce and they a living in at the prprest t mes. this placess sllll a lee earthquakekeonone. we havave a rhter scale rding 4.1 on a tremorasas frfrid.. the original earthquake was back inprprilf over 300pepeop. at thihi m momtt i'm talkingtot you and eastt ofhere. that's bececau a a theededia are having to camp aroroun the country. originally it was s supsed to be a lovely gig anand arar t pair island and t t coast. the problem they moved it th region to highlight the proboble he. the problem is for preresintnt obama and evevyoyonelse and the first g 8, it's chs.s. you have g gototot g 8, but ererne who you can imaginene i here. ththe rican nags and t the chine e e here.

utter chaosos and th sets coininueor the nexthrhree dadays i'm really hopinin fo a truck ririt in the middle of thehe ze. weilil show you what's g gngng o >> we can't wa. now you have o ourattention. > he a i can anty.. you u wi f fl betttter >>ure will. >> straight t ahead, we know th hohowi m mart is hurting, but what about commercial real tate and more painn to comee here o or rere mey to be madeen the sector?? we have aull and a bear to battle it out.

>>pmorgan chasese inin positive territory y byorore an 1%. uslllly they g gee you ee dictctioof the mamaetet, but that is not ppppeng today.y. thther have been reports about dealssetetti done in cocoererci real estate. are thingss looking up or will w see reclosures. th think there is opporortutyty and the "walalststre journal" and the "walalststre journal" reporting a shortt wle ago t tha ey areaising a billionon dollars to open a a w w fu to do that and show t t p parer and real estatee attorney toollow thth blogs and ahor of foreclosururenation. mortrtgiginghe american drm. partner and cirir of the r rea estate praraicice of harris. nini to have you both herere. erer, you are basasalally saying that wtt w w see in the mmmmeral real estate marartt in urur view willl be the residential market m mas lkk residential market m mas lkk etty darn odod whwhy e you bearish? >> absolutely. commercial real estateteasas bn a great iestment and we wilill reretu to ttha b buthese are toughtimes. whwhy e you bearish?

a great iestment and we wilill coereral l lag residentiti t too much a andhehe timesn the commercicialeaeaestate while ththeyre about to t tougugr.r. we don't't need crystal ballll sesee how much toucher the indicators a a.. >> is it stst history that is tetellouou ts?09 tetellouou ts?09 atat i iicators do yoyou sesee? >> absolutely n notnt vacancy rates are upndnd cap rates are up andrices a are going ddow monthly revenunuesrere gng down. delinquencies s l loa are up, up, , up >> karl, take ththat > i i startedy sgesting thah foreclosures wououlde e and a loof loans will be matururin over t the coursef the next f years. atatoesn't mean it's not a timeto tt into commerciaia real eseste. the fafactss at vues arewhat they are. they have come dodown dramaticical..

prices are finally starting to come to m mee withhehe lues. ifououaninind the transactionon deals w witnn lo-term, the interestst rates will s sta climbing hierer. inflation wiwi c comhigher. inflation wiwi c comhigher. >> aabsututel atat'shat andhy invnvtotor grpspsre standing on n e e sidelines waiting g toumumin. 75%% s sveyed are accumulating capital andhehe will beuge numbers of foreclosures ananthty want toaiai for that t happen.n. certainlnly erereeals ppening. grpspsre standing on n e e 75%% s sveyed are accumulating want toaiai for that t happen.n. if you happen to b beone of the devevelorsrsho is lucky enough have a luxury condooroject at can be confertetedo a a ususg project an money onn toto t thas great. that's's arere deal to do most commercial developers and real estatenvestors and most commerciallelends are making phonone calls to lalafifirmaski for hehelp >> soundsesesessikik the onlnly

difference b bweweenhe two of youss duration and timingng. that's true of everybybod everybody isis looking at t crystal ball. the fact is tt when themarket heats up, everybody willee ing after the s sam tranansaioionsnd the same values and d thsasa places and this is a gogoodimime to be sorting o o whwherththe ue values a are for you nnind the fifinaininordodo you havee to he cacash >>f f urse youdo. the f fincici levelels are noto whatat tyy were andnd they have cash andnd nd d deploy the cash andnd nd d deploy the shsh. >> you wanted to g getn n the. >> that are g goe to whatarar wasasayi. wasasayi. it's a m mteter timing. thcommercial lnsns are exexctctedo have more ththanhah afterwards. ererthree prorobls s wi thth.. thcommercial lnsns are afterwards. mber one, because of t the property devaluationons dd ghter underwrwrining standards, ghter underwrwrining standards, an estimated 2/3 wl not be

refinanced andumber t,, one of the uniniee things is lotfff0 ememere closed wi legal agreement t an pticipation and pulling g in servicing agreemen pulling g in servicing agreemen and trust willrevent a lender from being a abl t t extend or modify eveveifif they want to a modify eveveifif they want to a number three, there isis n mortgage momoy. wewe wl see a a t of extensnsns, negotiated somehehowrr foforeososes this year m makgg ththnenext year or t two a goode totobuy. >> thank y youotot appreciatete t >hanks for having us. >> t tak caca..'s > aopop near and dear to my heart. >>hett butler is the kining the big screenen according to datata, mgmgm t. 70-yeaear-d d go with the windstaring clclargable andd vivianly is theemomostsusuccsfu movie e ofllllime when you adst for inflation. the classic has taken inalmost $1.5 bill whereon in b boxffffe rerecetsts.

ee forces stitill " "st w war i secondndlalacend the soundff mumusi et and thehe0 0 coand ams and roundingut the topp 10 pictures o of all ti, tinic, thmost recentofof a of these starring leonardo dicacaioio an kate wininsl.. the err siftt a andhe all timim grossing animamate motion picture, snow wte and the 7 arar. no ca blanca?a? what is that ababou the website's s magege >> run into thehepack i is a opopriary trading may causenn ococtor crash. this is from an analystwho arar on cnbc overnight. ihope i i am p proununci this right. he i is saying werere notoioingo have a recoverery dd because we are not, all ththesundsthth ar going long g llll srt going

shorort d d i wilill ee that l haen. we balance it o o with other mmmmen who said no way. >> ourur leaders are divivin in the negative headlineses. > c you blame them? y y can't. california and eir ious. >> hotottotopi >>hese tngng are bngng trtrad.. we got papereritith an interestt rate a and you got a marart.t. >> you havee seen thatt movie before. lifornia iscocomi out w wit guidelines abobo w whacan and n'n'do and yo have skrunch wn and people shohoul c cck that out. weecided isnsn't that a good reason to thw thee currencies onon ious a ahings likeooden dodolls? >> the example of currenency around the wororld >> they had a pblblemith inflation and t the started printing i it wood figuringng e wood would be wowohh something. yoyou d twicealls and coconut

lelees. that one i'm g goi toake a look atat. thank k u,u, alalan atat's all on cnbc.com. thank you very much.. we will go r rig there and we will go to t t metals market and some of themaking aeaeang and wewe wiwi tkbout what's behind theheetetal melt down whwhene e me back.

we talkeked about lower eney cocos.s. wellll, melsls pces areoioi lower aswell. gold ddow silveve copper d dn significictltly well. is this trend lely to coinue?? ananhohow should vestors plalae that? shshar epperernns at the n new york merck rigightowow. it's u up about $3 now, but we have seen a lot of weakness.s. ststil a a lot of buyers cinini, particularly from hgege fufund kevivi grady f fro mmmmf globabd that's what y've been sengng >> one of f thbibig ings that's going on i t t strorongololla is rereal,, really putting p pssss on commodities. we see cre oil wnwn, gold downwn, tt thenene significant

factor, if y lookt t th chart over the last two, threeeedays we see tremendous s ouount o of buying. er the lastt two dayshehey ve tried toto penetrate thatt leve ybe two, tthr,, ten times, and eyeye not been able crack it. > kevin, can weriri up the intraday art? weade an intradaday move about 1:00 whehe w got the sults of e treasury auction,hen rick santelel g gav b-b-nunus to c t. are we s a reactition itt raises concncnsns aut how much money e government is ininti? >> itdoes. inflation isis the key. there's a b direrepay, are we inefeflaonary momoderr inflationana mode? even the peoplee looking att inflatioio t there saying, what's the timeline? the hedge funds s ar comomgg in yiyingnot bding thearart up, but what they are dodoin sitting in ee shes, waiting

for cheaper prices. > , kekevi this r rorort out talking about theact thaha some ofof t o oer metals market, some ofhe peripheral markets llll clclinthis year after some big run-n-upecause chinais done restocking,hat kind d i impt do you expecect, i i any at t an the price of gold? >> golddss concerned of sitting on its own. it's g goi t to nfnfluced by some of these otothe markets, t i inin rightow theimple fact that s somofof tse hedgee funds are putting me of themm 10in gogo,, that's g gng t epep t price w.w. >> maybe n not ilver, ght? yoyou' saying silverr is a different ststor wewe'vseen a big sell-off in the lalast couple montnths >> what theseseeoeopl are inin ishehere saying ritt nonow, people are not aggressively bubuyi silver as much, s s there's ratioo players tt there saying, hey,f there's going to be more strength i gogold i'm going to be sesellgg that lver. thth's what you'r'r startingg t see. >> kevin grady therefrom m.

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it's kind of a storyaiaid e sa/she said. politico.com r reptingppppel keker j.rew was inin first ughters as a marketingtotool afafr r th first daughterss wer spottedeaeari head-to-totoe j. crew outfits. politico ysys j. creww sent oua prs releaseoo about 100 reporters, featuring a a photogogphph o the kidss leavin thplane anddetails of w wt sasha and maliaia werewearing.g. j.rere says tre was no picture andererel r resnding to memedi ququirs. according to an n e-ilil sent t us by politico, ined j. cr

attached a phototo. is thihis c. withom anddad? remember earlier this ar m chchle went aftfter -- politico tete the white e hoeedid not approve the informatioion rerea. eitherer w,, it p problbly will helputut j. crew sales, b b that's a s sliereryslope. >>'s you promoted in that t rete section of i ita they ven't hearard o th. >> but that taffeta trench, $298. >> i think you h hav to be rerefu that's "wewer nch." thanks. seseyou tomorrowow. rebecca jarvisis ihehe in 30 sesecos.s. >> ee fda w wil require darvn and d darcece t to carry boxox warniningsbubut rerejeinin call for the p procts toee pulled om the market. ththeyanant to raise a