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folk that say governor sarah palin is dead in the water because she's stepping down from her governorship. they are wrong because she has a piece most would die for, cap and trade, energy a subject she knows really well. cap and trade is a dead-end. she says it will do irreparable damage to the economy. here is a key point she differs with president obama. she wants energy independence by producing more here, drilling more for oil and natural gas and yes, more work on nuclear power and yes, more work on coal. she's not opposed to alternative energy, she says de regulate, open the doors so we can do it ourselves and not rely on opec or our other enemies. mr. obama's cap and trade would limit energy, limit the economy, limit jobs, roll back these limitations to years, some people say 100 years going back

to early 1900s. that is what sarah palin is saying a drill drill drill message a natural gas pipeline message in alaska. i think she has the story exactly right. it goes to show you, instead of being dead, this gal will be around quite some time weighing on politics and policy. that's all i've got. let me turn this over to my great friend, dennis kneale as "cnbc reports" right now. this horrible frightening recession is ending now. >> it's no longer a one-man war, new firepower in dennis' attempt to end the downturn and the key report, from merrill lynch, the recession is over. goldman sachs and johnson & johnson. the money is pouring in. all is not well in neal's world. new details in the president's

push for health care. >> we will not add additional debt to the american people and we will produce a product that will give to the american people that will give a sense of stability and well-being. >> translation, new taxes are on the way, who will pay and how mu much? we have a lot to fight about tonight. "cnbc reports" starts right now. >> good evening. i'm dennis kneale. the recession is over. let me repeat that. the recession is over. i've been telling you that for two weeks now. tonight, i'm not being redundant for a change. tonight, i'm quoting the head line from major new report out today from merrill lynch, one of the largest brokerage firms in the world. merrill says the recession ended june 30th, the same day i declared on this show this recession ends right here right now. we have myriad other signs of hope today. they don't come from a broker trying to sell you something. intel came out tonight with a

loss but its revenue was a billion higher than expected. intel sees a stronger second half and raised its revenue estimate for this third quarter. j & j results were better than forecasted and retail sales better than expected. even treasury secretary timothy geithner says the force of the recession is receding. that's about as giddy as a government guy gets. the bigger story for me is merrill lynch is making a big bold call here. let's get to the real deal with dennis kneale and break it down. if they let me drink alcohol on air, i would uncork a bottle of dom right now. it's time to celebrate.. let's have a recession over party. let the bigger bashing blogger sell their doom and fear. and in my recession for hope, jump on this bandwagon. let's take a closer look at this

merrill report from irc, their research investment committee.e. the firm breaks it down in several ways, i'm quoting from it. growth forecast. where's my line? that's my line. growth forecasts are up. that's not a very good line there. we go. clear. now, let's try it. growth forecasts are up. cash should be reduced. that means you ought to get out there and buy some stocks. that's what they're saying. merrill lynch adds -- let me step over to here. we are bullish on global equities. meaning, yeah, you got to buy some stocks.s. you get what i'm saying? now, let's clear that baby. take a look at this. give recovery a chance. they're almost like, quoting

john lennon. as they say, encouragingly, our global economists believe the global recession ended in q2 and a fragile recovery has begun. heck, i'll take any kind of hope i can get. thank you, guys. the merrill guys are appealing to emotion. as i said before, emotion is a big part of this battle.. this is the message some 16,000 merrill brokers will be preaching to several million clients. there's also this. we are revising growth forecasts up virtually across the globe, actually mean around the globe, i'm a former editor, i can't help it. most note blue in the u.s., and china. you're only talking the two most important economy is in the world, the u.s. the biggest and china fastest growing large economy. we buy a lot of their stuff and we sell a lot of stuff to them.

merrill projects world-wide growth of healthy 3.7% next year, up half a point from its first forecast. merrill also predicted gdp in the u.s. will grow 2.7% in the second half. it had been a much lower forecast than that. merrill says the u.s. economy will grow 2.6% for next year. it had only been expecting 1.7, all right? that is actually a huge increase, when you think about it, in an economy as large as the u.s. economy is, a good $12 trillion or so, 2.6 from 1.7, you're talking billions upon billions of more in business being transacted. china gdp, 1.6. china's old 10% growth rate from 8.3% previously, growth anybody would kill for anywhere else. merrill lynch did an extraordinary thing in this report. they surveyed $33 trillion in

assets held by high net worth violence, the richest in the world. 33 trillion is almost three times as large as the gdp of the entire usa, the largest economy in the world, a lot of coin. merrill finds this breakdown.n. the super rich, they have only 25% of their holdings in stocks. 25% means they're acting as if they're investing, as if they're 85 years old. there's this old axiom, take 110 minus your age and the percentage of asset you should devote to stocks. only 25% in stocks yet merrill says, any moderate risk investor's portfolio, you ought to have 50% in stocks, twice as much as these rich people have. these richies, they have 21% in cash. 21% sit thing cash. merrill says a better number in cash, even now, at a time people

are so afraid, might be 5%. when your money's in cash, it's not earning any return, right? it's not earning almost anything at all. merrill talks about fixed income, bonds, all right, 30% almost in bonds, never mind that bonds, interest rates are near all time lows. do you know merrill points out if you put money into a three month treasury bond, all right, three month treasury bond to keep it nice and safe, make sure nothing ever goes wrong, you kept rolling it over, your money would double eventually, it's just that it would take 360 years. 360 years to double your money in a fixed income treasury and 29% for the rich. if you can find and asset to return 7.5% a year on average in ten years, you double your money in ten years, not 360 years. now, i want to know what the

professional doomsayers and unprofessional doom bloggers will say to all of this. growth. what they're going to say is growth will be sluggish, layoffs will continue to hurt the economy. the fed must extricate itself after pumping too much money into the economy and inflation could war up if the fed blows this transition, all of which may be true, but those are hurdles that can be overcome and stocks are priced far worse than that, priced astocks are priced almost army ged don, do you really believe some of the best brands in the world are only worth half a decade ago even though their earnings are double and triple what they were worth back then. do you really think the usa is over? on its last legs? out of ideas? no way, baby, i don't think so, neither should you. this recession is over, let the recovery begin. if you can't believe me, take it from one of the largest brokers in the world, merrill lynch.

enough about me. let's hear what some real experts have to say on this. i say the bulls are running but not everyone is on board. for more bulls versus bears, bull number one is lee munson, chief investment officer for portfolio assets, bull number two is joe miller, founder and strategist of wall street capital funding and our brave bear is john lekas, ceo and portfolio manager of leader capital. let's start with our first bull and give me your best case. am i overdoing it here? >> i don't think you're over doing it, dennis, you have to understand week going through a sideways correction, all year especially in interviews on "closing bell," people are degrading me when i said the recovery will start beginning 2010. the market is six months forward looking. we're six months away from 2010. i'm bullish. last week, we covered most of our shorts, started going long,

we've never been more vested than now. just a few months ago, people were talking about green chutes and now they're saying green chutes are yellow. it's bumpy, probably have higher single digit, low double digit unemployment a while. bottom line, companies are recovering, you have opportunities to get in. i've been bearish most of the year but my actions, no shorts, almost fully vested. the only thing i do with bonds is trade treasuries. if i see the treasury yield go below 3.2, i will be shorting. >> no shorts. our second bull, what have you got? >> i'm right there with you, dennis, you echoed some comments i was going to bring out. two things i look at, consumer confidence which is strong right now and look at rising interest rates of all things. rising interest rates, that simply means the mbs market is flooding right now, people are buying and refinancing,

refinancing means more discretionary money and buying means more ancillary services bought and sold. this is a great time. two years ago i predicted we will be out of this third quarter '09, i'm feeling real good. >> john, you're a bearish kind of guy, but if you're not careful, you will miss this bandwagon. >> am i on here. >> yeah. >> first of all, it's john lekas. >> sorry about that. >> i appreciate merrill's comments, they make 300% more if everybody is invested in equities. the last time they did this was in 2005 and almost put them in bankruptcy. >> just about everybody got wrong except doomsayers who made a fortune, i'm happy for them. >> a call is a call. we like to take it down to the numbers. we have a cost to capital model that basically boils down, what does the average consumer have at the end of the day? right now the average consumer

household of four is negative about $600 a month, we think that moves to 8, $900, as corporations refinance out of most of their debt. >> how can it be negative when the savings rate soared 6 to 7%? >> the government's definition of savings rate is net disposable income minus expenses, far different than a guy walking down to the bank and putting the money in the bank a misleading indicator and why we build our capital cost model to get a true sense of what's going on. >> lee munson, step in and help me out. i need backup. go ahead. >> here's the thing. i used to be a bear. i've been a bear almost a year now. when you start looking at inflows and amount of cash people have on the sideline, i was forced as a manager to start putting the money back in the marketed. if you don't believe the market will recover, that's fine, what you can't recover from is a

giant tsunami of cash. >> we're talking $9 trillion sitting on the sideline. at some point, don't consumers and investors get tired of being afraid. >> warren buffet said unemployment is going a lot higher and war rn is definitely right. >> people will be afraid.. interest rates are starting to rise and why i said it's positive thing.. as people look at interest rates rising they will get more active in the marketplace and realize they will miss this window. >> they will put their money in fixed income and take more out of equity market. >> i don't think that will happe happen. >> the other thing we're ruling out or leaving out, john, my fellow bull, if the market gets past this bumpy period and start to go for another 20% run a lot more of that money on the sidelines might come in. their fear of armageddon changes. >> the bumpy period is -- >> you already see that.

put it into stocks, why the rates are going up, why i'm bullish on that. this is a great time. >> got to leave it there. we'll be having our bearish friends there, mr. lekas, back in just a few minutes in for the other bulls, gentlemen, thanks for being with us, you're clear. later tonight, rick wagoner's final payday, it's pretty big, i'm sure people will be upset about it. too bad. and democrats unveil a bit more about the health care plan and the costs, ouch! we will break it down tonight.t. have you heard, merrill lynch agrees with me, the recession is over. thank goodness. back in two minutes. she wants to make up.

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disposable. you can bet on just about anything these days. three weeks ago my bet was the recession is over.. as far as i'm concerned tonight, that seems to be paying off. let's bring in the real deal squad to find out if the odds are with me. joining me tonight, tanya acker, blogger for the "huffington post" and phil musser, former advisor to mitt romney and frontier strategy and merrill's business school guys. and we'll talk about how much hope we should have and later, who should get the credit for and what could get in the way and lastly, let's try to talk one at a time because all you guys are far smarter than i am and viewers would rather hear you. so peter, the ever bow tied university professor, start us off. i'm seeing a lot of hope there,

at least i'm trying to build it. where do you stand. >> i think we will have a recovery in the second half, i don't think i'd date it june 30th but september 30th there.. are real risks on the down side, obama's health care and cap and trade. >> you say people should be buying stocks, absolutely. they should be buying right now, that's what i'm doing. >> chris wilson, what are you doing with your account. >> i'm not doing it. i think we're seeing a repeat in 1930 in the middle of the "great depression," you saw stocks increase by 68% and two years later you saw another 86% crash. my fear is we're on the upswing, have people getting in, seeing bargain, those bargain hunters are artificially driving up the stock market and will get out. >> you're shaking your head, peter? >> i don't think we will have a second flop, the market is so undervalued even if we accomplish modest growth, 2.6,

companies have cut back so much in costs and capacity, they will have profits nicely and we will have rising prices. >> tanya, where do you stand? >> i'm nervous about the glibness i hear about jobless claims. on one hand, we're seeing a small reduction in jobless claims, some because people have exhausted benefits and secondly, given the fact recession is tied to consumers being overleveraged and housing markets built on a house of cards, record levels of joblessness, we're looking at more foreclosures and delinquencies down the road. >> tanya, thank you for that very cautious answer. it leads me to my next segment. i'm guessing obama gets no credit for this recovery when it comes because it's coming now. >> i'd say no, my portfolio looks like yours from the chart at the beginning.g. with respect to the american people they haven't started to feel this recovery.

there's widespread skepticism. you have a great pollster that can give you great numbers. about 75% of the american people do not feel the stimulus has worked or affected their life. >> about 75% of the people are smart. tell us about the polls. >> a lot of pessimism exists. the american people are not convinced there is a recovery going on, keeping their money themselves and you're seeing obama's numbers taking a pretty big hit because of these recovery numbers. for the first time in a long time american people are more likely to trust republicans than democrats. >> and why they should wake up and start listening.g. i will wrap and come back for a quick break. stand by. we have a lot more to fight about. when we come back, i'll explain why this economic recovery might be george w. bush's last great gift to this country. how you do like that, tanya? don't walk away, stay here.

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to being able to manage your diabetes properly. it's very important for me to uh check my blood sugar before i go on stage. being on when i'm feeling low can be like a rollercoaster. it does at times feel like my body is telling me to do one thing... and, my mind, my heart is telling me to do something else. managing my highs and lows is super important. with my contour meter i can personalize my high/lo settings so it really does micromanage where my blood sugar needs to be. i'm nick jonas and never slowing down is my simple win. fashion can speak a thousand words. look at this t-shirt, recession is when your neighbor loses his job. depression is when you lose yours, recovery is when obama loses his. now, that's the real deal facing

president obama. let's bring back the "real deal squad." tanya, you have a wonderful smile, great laugh, go ahead, tear it up. >> i laugh because you make me laugh. you ended that last segment with a statement as outrageous as anything i've heard in recent memory. the notion you will give george bush credit for this recovery and still try to blame the president not withstanding the fact you look at increase in residential real estate, not the mention housing values are falling, more people are buying houses. >> whoa! >> one second, one second. >> hold on! >> the viewers will know, i said maybe this recovery because i say it's happening is the last gift to us from george w. bush. he and his treasury secretary did put in place the t.a.r.p. that ended up saving the banks yet your obama man is saying all along, i just got here, only been six months, we inherited the company, so how can he get

credit for the turn around. >> i want to look at the residential housing market. this administration instituted an $8,000 credit for first time homeowners. if you will suggest that has nothing to do with increases in that market, i beg to differ. >> go ahead, peter. >> the reason we have a lot of housing sales and few more than past we have so many foreclosures dumbing on the market. >> bingo! >> we're not selling so many w news, selling pre-existing homes because banks are selling them 20, 30, 40% off, in a market t like that -- >> and those that couldn't afford them in the first place -- >> it has nothing to do -- >> please, obama -- >> the $8,000 tax credit, nothing to do with the $8,000 tax credit. >> he's threatening to raise taxes on everything. >> $8,000 is real money. >> peter just brought it up. i do think we're recovering but think the democrats will blow it

by raising taxes everywhere. >> that's exactly right. reality is this. the honeymoon period where he can blame everything on bush is over. obama owns this economy, democrat majority in house and senate and we have a stimulus bill that had questionable results and the answer from the administration is lay on big taxes, over 55% for small businesses and this health care bill, i have to tell you, it will fundamentally reposition the american people's attitudes towards this president. they voted for center center left change and they're getting very activist lefty government. >> you will be shocked when you see later in the show, i will show you numbers on who the rich are that pay all the tax, you'll be shocked how unrich it is. >> phil is exactly right. it's coming home to roost. what's weird, i find myself agreeing with joe biden the economy is worsening than expect and what they did is not

working. from the public opinion standpoint it's a changing opinion and what's happening obama change you can believe in has become a $1 trillion deficit for the first time in american history or more people out of work than any time in american history, it will be massive results in mid-term elections. >> as much as the right wing would like to blame all the people out of work on barack k obama, i take issue with that. let's take on the impact of the stimulus, we won't see the true impact until later this year. >> that's why obama doesn't get credit for my recovery. >> wait a second.. part two, i didn't say no impact, i said we're not going- >> a negative impact. >> we're not going to see the full impact. secondly, i feel like talking to you all about trickle down, you just will not release this notion the trickle-down theory works. >> please don't speak to me! >> it's trying to talk you out of the fact the tooth fairy doesn't exist. >> don't speak for me.

i'm the economist here. >> this president -- >> it's my time to be the one, i just have to say, thanks to the real deal squad, come on again, let's fight some more. breaking news from the "wall street journal" tonight, cit negotiating details on a multipart aid package. more info when it comes in. will government ever step back and let someone fail? more "cnbc reports" coming right up. merrill lynch agrees with dennis, i quote, the recession is over. that's the title of an important merrill newsletter released today.y. coming up, more bright spots coast-to-coast as we go "across america." also tonight, sarah palin's big pushback against cap and trade. is this her ticket to get on the side of big business? we're back in two minutes.

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you know, i had a happy day

today. i finally found official report for my call the recession is over then my day was soured by what speaker of the house nancy pelosi calls a really happy day because the house came up with a massive tax increase, one of the largest in modern history it will turn out to be, to pay for health care for people who don't have it. take it away, nancy. >> this is indeed a happy day for today we are introducing historic and transformative legislation that will benefit all americans, americans affordable health choices act. >> happy day for that. this happy day democrats are talking about, find a way to pay for a trillion health care plan that's supposed to reduce health care costs basically going to raise $550 billion from the rich. no big deal. just an additional tax of a mere extra 1%, no big deal for couples earning over $350,000

we'll go up to extra 1.5%, half a million. then millionaires, oh, ouch, 5.4% extra, okay? extra now, realize a lot of you out there say, well, they're millionaire, let them pay, who cares. >> i question whether that's the best thing to do for this economy. remember tax increases hurt growth. the top 1% pays 40% of all federal income tax, just 1%. the top 5% pays 60%. the top 10% of earners pay 71% of all tax in this country. you might think, so what, i'm not in the top 10%, right? you might be surprised what puts you at those wealth levels. let's take a look. top 10%, all you have to do is earn $110,000 a year or more and you're helping pay 71% of the tax in this country.. top 5%, only $155,000. top 1%, only $390,000.

what's that, jason? okay. wait. one more thing, hang on. one more chart on this? let's see it. 48.6 million uninsured americans, 140 million federal tax returns, we'll have 2 million to 4 million people pay for all of this when they already are paying 70% or 60% of all the tax income in this country. where does this make sense? that is what made my happy day a little sour. now, onto our next thing. earnings are solid so far, better than expected. merrill lynch agrees with my call, this recession is over, there are still naysayers out there. and one that really got my goat, john lekas, president and ceo of

lekas capital.l. i think you were talking about the 2011 going down to 4200. >> 4200. >> shame on you. what are you thinking? you think the best brands and best businesses and best economy in the world are worth 50% less even now than they're worth today. >> dennis, i have to tell you, i do agree with quite a lot you did say with higher taxes coming for sure and expense of the afghan war and particularly the large expense facing corporate america in terms of them refinancing their debt. we think earnings will decrease by 50%, most corporations reduce dividends to zero to pay for that. >> why will earnings decrease so much, john, when companies have cut so vastly, when they come out of this they will be far leaner? >> leverage. >> companies are de-lever averaging, everyone is complaining they are de-lever averaging too much. >> gm has $600 billion of debt.

70% come due in the next three years, the last 20 deals they did cost them 300 basis points time $600 billion, $18 billion a year for a company only going to earn 11 going forward. >> if the global economy is in the trash can, interest rates won't be that high, will they? they have to be low to encourage someone to borrow something. >> unfortunately the next stimulus plan will be bigger than the last one that didn't work, unemployment rate going higher, seeing 16% unemployment, keep your money short. we've managed to make money, up 8.5% this year, only down 2.5% last year, we will make money no matter what happens. we think the short end of the curve hasn't been this good since volcker raised rates in the 1980s. as you and i know he's back on board. >> you mean short term instruments like the three month treasuries that will take you 360 years to double your money?

>> a good point you're making and don't disagree in the short run. in the long run the fed has to raise interest rates to shore up the currency. if they don't, we will have a huge dose of inflation, the consumer cannot handle that, hanging on by its fingernails. >> this will be a girly emotional point, john, what about two factors at some point, investor have tos do something with their money besides leave it in cash and we get tired of being afraid? what about the idea of innovation and u.s. companies and big global companies and ability to push their way out of it by making better products and services? >> one of the best things that happened was gm going bankrupt, guys like roger pency taking over saturn and getting more efficient, that is all going to happen. i have a 20 foot american flagpole in my front yard, i am usa all the way, i have to tell you, you're a little early.

it will be 2011, just in time to come out of this, 2012 will be the beginning of the bull market, not the end of the world. >> not according to merrill lynch and second, if stocks are where you say they are in 2011 fall, i owe you a bottle of dom. if stocks are higher in fall of 2011, you owe my two bottles of dom. >> i will personally fly back from new york and buy you those bottles of dom. if you're wrong, you fly out and buy it for me. >> i'm shipping it overnight. thanks for coming. >> thanks for having me on. governor palin, just because she's leaving the governor's igloo doesn't mean she's walking away for good. in a "washington post" op-ed, she took swipes at obama on cap and trade, the big carbon tax for greenies would be an enormous threat to our economy and inflict permanent damage. i think she's right.

i have to tell you, i think this story is overplayed. palin is overplayed. i say by the time the presidential election rolls around, she will not be in the rung and we will not care what she has to say. lea goldman, and monica hesscy, reporter from the "washington post" and john cnbc contributor. start us off. >> what's most amazing about this story, it's plausible sarah palin devised this article, she actually penned it. this woman needed a palin to english dictionary the last 12 months. she couldn't articulate a coherent thought what she ate for breakfast let alone spokesman for cap and trade. i'm not buying it. out in six months. >> i think we have not begun to see the overplay of sarah palin yet.t. we have a long way to go hearing more news about her and i think this was a smart political news on her part. this bill is controversial and polarizing and she's come to out

swinging. >> she may not read newspapers but she may write for one. >> this is a smart political one sni had to read the column five times to understand it. it is borderline coherent. i'll make this point repeatedly, sarah palin is 45 years old. she ain't going anywhere a long time. she might end up making speeches, may end up with a tv show. anyone thinking we should short sarah palin, clearly not the case, this is not a woman retiring and walk away. >> i just wish she had a few more experience. right now, we have a president in the white house with only two years in the senate. >> maybe if she didn't quit her job, she'd have more experience. back to school blues for retailers. one predictions shows it will reduce 8% and college students cut back and our kids are going back to school with holes in their clothes. this will be a horrible capitalism, it was down 2%,

survivable, what do you say, monic monica? >> i think it's underplayed because it's the sign of right sizing we should have seen long ago. what kid needs new crayons and "hannah montana" backpack every year. i'm thrilled by this news and want to hear it shouted from the rooftops. >> she has no children and therefore the backpack. >> i guess they didn't get the memo of the recession being over. it's the harbinger of more bad news. besides the school district, property taxes up up up, fewer services, scale back the bussing, this is only the beginning. >> property taxes rise only if governments raise them apprai appraisals going down and will be cheaper unless they have the guts to raise them. ted kennedy's book bonanza, his memoir set out to come out this year, 22 million copies out

to print and 1,000 special edition in a special cover and electronic sitting and selling for $1,000 a pop. i can't decide if this story is over or underplayed because frankly, i just don't care. john. 95 a simple market based solution, if you don't care and viewers don't care, they don't have to buy the book, especially not the thousand dollar edition. >> for all you kennedy plans, you get a kennedy bookmark for the 1,000 bucks. >> all i can say they better not put that on the school supply list of any children, we know they're not going to be buying. >> over, under players, thank you very much. straight ahead, we're going "across america." i bet we will find nor bright spots, and i will take a shot at those bloggers who have been on me like -- i won't read that line. >> the recession, it's over. welcome to the now network. population 49 million.

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groceries, gas, entertainment, and more. get up to 25,000 bonus miles... with the gold delta skymiles credit card. call 1-800-skymiles to apply. this is the official card... of the world's largest airline. . we're going across america now, guys, with four. charlie, with the detroit news, amanda carpenter writes for the "washington times" and joe for the "philadelphia enquirer" and des moines register, lynn hicks on the phone. let's start with charlie with the detroit free press. >> detroit news.

>> detroit news. i'm very sorry about that. i apologize. i interned years ago at the detroit news so i know what a terrible insult that is. my apologies publicly. rick wagoner at gm walking away vastly less than his contract called for, 10 million instead of 20 million or more. what's your reaction to that. >> 8.2 is 8.2. recession is not over. recess is over but up here, recession is not over. like the rest of us, he took a big hit, 8.2 is 8.2. >> i can see why in your back an areaed detroit, hard to find an up side although you have chrysler and gm coming out of bankruptcy in 40 to 45 day, that's something good. >> that's the bright side but blood letting not over, more laid off. how we supposed to buy the cars? you can't get a mortgage without a private detective going through your stuff. california goes bust, i don't know who's buying these cars, doesn't look over to me.

>> amanda carpenter, give us a little more hope. >> you want to look at the auto industry, the big news is steve rattner stepping down as auto-czar and the replacement is from the united steel workers. he has investment background and labor background. some people are skeptical of the move and question why we even have a car czar. he does seem to have an interesting mix of experience. maybe he dan work through. >> it are you convinced his departure is entirely innocent. i wonder if he's a result of pay to play going on at his former firm. >> there was a report an hour ago new york is seeking a settlement for the company he founded, quadrangle, so he can avoid civil charges. >> is it lynn or hicks. >> hicks with an s. >> give us a sign of hope out your way. >> a sign of hope.

we've been bracking for months things in iowa are not as bad as nationally. we're feeling the recession but never hit bottom like it did nationally is starting to recover. last month, sales matched a year ago. and overall indicators are poor but new faf orders are rising. that is huge in iowa, big manufacturing state. and the crops look amazing. we are going have an incredible harvest. that means mixed news. corn prices are down but that's great for large stock producers and ethanol. >> all right. joseph in philly. >> did you know, you mentioned general motors. the old commercial real estate arm. i talked to a fellow there that close as lot of their loans. he doesn't know what recovery -- he says the only folks out there lending in any kind of commercial real estate today is fannie mae and freddie mac and the fha and banks aren't in it.

you know, it is -- still looking real slow to him at this point. >> you know what? weren't we told this is what banks need dodd? they needed to loan to far better candidates and needed to deleverage and started doing it and now we are upset about that. >> i think that things have gotten different kinds of mixed messages what they should on shouldn't do. you go back to obama mortgage plan. they are spending too much credit and goes through not lending enough. going to use the backing for the federal government and 25% under water. >> we have to go. quick around the horn. what you are working on tomorrow. charlie. >> corruption, always corrupt n corruption. barack obama did not step foot in the blackened city of america. >> that's good. joe in philly. >> biggest story in our paper tomorrow, talk about corruption, state senator going away for 55 months. >> lynn hicks in des moines. >> new appraisal rules what it is doing to the market.

you mo, nationally a lot of talk about it gumming up sales. we are see something of that in iowa. so that's coming up. >> okay. >> and amanda, take it home for us. >> i'm getting knee-deep into the thousand-page-plus democratic house bill unveiled today in the current congressional budget scores over a trillion dollars of what it will cost the next ten years.s. lot of math and numbers and stuff to get out there. >> we also look at how america feels about paying for the health insurance. 6 million illegal aliens that have none. 23 hours and 58 minutes a day. when we come back, i get my two minutes or so. revenge is a dish best served on my show. @y@y@y@ but did you know you also get hotel price assurance? it's a one-two punch of savings -- pow! pow! lower hotel booking fees mean you get a lower total price. plus, if another orbitz customer

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it is hard tore hold on to hope when bloggers and followers are beating the daylights out of me online just about every day. is it hard for investors to keep putting monday i don't into a market when everybody else is so depressed and sour and cynical? i tried to ignore it for the longest time. after i quit, managing editor of "forbes and joined cnbc 20 months ago i stayed away from the blogs because they were so mean. i try not to let it bother me.

why should i care that nobody says vile things to me in a post only other crichtons will read? i am weak. like the song you are hearing now, i got hurt feelings. i tried twitter instead of blogs. on twitter it is the same bitter crew with shorter insults. listen to the venom. you think they are responsible for any mistakes you make? man up. remind me of the kids with pocket protectors, slam into mockers on the way to shop class. that hasn't happened in a while. i see the ibc guys humiliated you again. reminds me of a slam. remember the slam book? ? sixth grade the cool zbirls in my class ganged up on this one girl writing down everything they hated about her and having other kids add their comments.s. i don't know what she did to deserve that.. just like i don't know what i have done to these hateful things online. i offer this to you.

i came up with an unofficial ad reader, increase your wealth. that phrase isn't punchy enough. i shortened it and offer to all of my bitter bloggers out there. up yours. taking its rightful place in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz.