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because financial markets are in better shape because of the improvement in the economy, i am sticking with investment in banks and financials.

point number one. the corrective force of capitalism including business and cost cutting productivity are delivering unexpected profits giving a great boost to the stock market. i have to tell you, eventually the economy must deliver.r. right now, i'm not seeing boost in jobs, production or income. until i see that. i will add this note of caution, let me add, coming from washington, even as health care is defeated as i believe it may, the fact remains all this spending and borrowing is pulling resources out of the private sector, demoralizing the economy. that's what worries me, for the medium term. i say to investors, hang in there, i love the bank story, be cautious, this may not be forever.r. i'm larry kudlow and i will pass the baton to my friend, dennis kneale, you have a great show tonight. >> thanks, senator, you have my vote. "cnbc reports" starts right now.

tonight on "cnbc reports," watch out, it's a bull run, the market sky rockets, dow and s&p 500 score 3% gains, and nasdaq heavy hitter jumping 3.5%, more evidence dennis was right. >> this horrible recession is ending now. >> he isn't the only one saying it now, merrill lynch is joining the dennis chorus. while markets are our focus, we're also talking about the business of porn tonight. larry the legend flint is here exclusive as cnbc gets ready to debut a brand-new documentary, porn, the business of pleasure. bill gates changed the world, now, he wants to change the weather. we have a big show tonight. it all starts right now. this is "cnbc reports" on wednesday, july the 15th. >> good evening, i'm dennis

kneale, nice rally today, can i get a hallelujah? i have been telling you for three weeks now, this recession is over. the balance of fear,ien and yang of the market is beginning to level off. that follows a painful year, in which fear, like a fat ban in a bathtub overwhelmed all else. now, a new fear may emerge, the fear of getting left out. let's look at it in the real deal with dennis kneale. the dow is now up 6% in three days. that is extraordinary. tech led this nice 3% lift in stocks today, about time. nasdaq rising 115 points in six days, the best six day run since last october. one key factor in this nice spurt, maybe earnings won't be so bad after all.. i predicted this days ago, alcoa reported earnings were less bleak than expected. the big question arises can this

hot miniskirt of a stock rally condition and are the markets saying what i've been saying, the recession is over or was this nothing more than a short squeeze and stocks will head back down soon? that dichotomy, fear versus hope all over again is more bitter than i have ever seen. that spans two decades covering the "wall street journal" and forbes and now cnbc, this is a bipolar market, a sybille with a split personality. three simple charts will show you what i'm talking about. since july 7th, the dow is up 3 1/2%. ain't that nice? that feels so good to look at that, doesn't it? zoom out and look at two weeks of the chart. you see, oh goodness, yes, it's up a bit. look what happened first on the way down, it's bipolar, happy, sad. now, look at four weeks a full month of this chart, you'll see,

oh, my goodness, it's down, it's up, it's down, it's up. this is a market that cannot decide what way it wants to go, this bitter divide out there because some people are still scared and other people realizing wait a minute, i think armageddon is behind us, off the table. i have one final thought for you illustrated in this long range chart of the dow jones industrial average, this plots stock prices going back to 1896. the fact is over the long, long, long term, even with a couple crashes, over the long term, folks, stock prices head up, not down, recovery, here we come. what a rally, s&p, nasdaq, up 3% today alone. there's still bears out there despite things are looking bullish. harry dent is the bear among us. he is ever the bear, author of

the book, "a great depression ahead" and he thinks it will last until 2022. i am not making that up. and bill from core states capital advisor. what do you think about this? is it for real. >> dennis, you said it all, took all my spiel. i think you're absolutely correct. we've been saying quite a while, the worst is over, behind us and going through the old-fashioned climbing the wall of worry. >> and second that emotion? >> i think we're all on the same page.. confidence will rebuild in fits and starts. we're having one of those lurches ahead. it's backed up by leading economic indicators, declining unemployment claims. in other words, economic data is continuing to support this notion of second half recovery. >> now for the buzz kill, let's

go to mr. dent. harry, it's not just me pushing this recession, merrill lynch came out and said it yesterday, dan gross a "newsweek" columnist and so did two different independent forecasters saying much of the same thing. tell us why you disagree. >> i agree with everybody, the leading indicators are pointing up.. the problem is this is different than others. we have seen the largest debt buildup and greatest housing bubble in modern history, only starting to de-lever average. once it starts, ask the japanese in 1990s, it's hard to stop. we've been very very bullish, too bullish at times, marking the baby boomers off their spending cycle, they're done, people spending at age 46, baby boomers will be savers from here on out, hard to keep this stimulus goes, we think the market is about to peak. >> i think he's wrong here, the

older we get, the more we buy. i don't think we're permanently changed here. >> you're not looking at statistics. >> maybe some people do. >> people absolutely spend less the rest of their lives. >> that doesn't mean it will fall off a cliff and the fact the older generation is far wealthier than older ages in previous generations, isn't that true. >> japanese went through this, peak and spending of a generation. >> letmy bull in here. bill. >> people are living longer, no question about it. people will have maybe some change in consumption te tendencies. there's a lot of demand built up in the last couple of years, you talk about replacement cycle for technology, cars, you name it. >> big snapback. >> there will be an inventory build, see earnings come back. >> fritz, finish this up. nice package, fritz. >> i think what's so important, you're talking about the baby

boom generation but you're overlooking the eco-boom generation larger than the baby boom generation coming behind us. believe me, we taught our children how to spend money. i'm very optimistic about consumer spending. >> we do look at the eco-generation. >> appreciate you being here. much more on this bull run as we pick out real winners, stock s poised to keep going. next, we turn our attention to health care, and democrats put out some plan, we don't know all the details but know it's complicated. look at that. i count 60 boxes, and a serious effort to show you the democratic health care plan. we're all over it tonight and the big business of porn. mr. hustler, larry flynt is here and we countdown to the porn special at 9:00. at 155 miles per hour, andy roddick

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so if this market rise continues and this recession is kaput, who will get the credit or try to take the credit for saving the economy. let's bring in our real deal squad. julie. and radio network, julian, and joe watkins, one of the best in the business, a republican strategist. julie, start us off here. that top you're wearing defines hot pink. >> thank you so much. i won't go easy on you but

thanks for the compliment. >> i'm thinking you're thinking george bush gets the credit for this, don't you. >> george bush gets every ounce of credit. >> we're being ironic. >> we're being very ironic. whoever's in charge gets the credit or blame. if things are going wrong, be the first to blame obama and things going great, president obama and democrats in charge of congress should get the credit. >> are things going right? >> they're going right in other places and not others. i'm not as upbeat as you are, the long term prospects but concerned about the risks a lot of financial players in wall street are taking. in general, yes, things are moving in a much better direction than they were back when george bush was president. >> joe, do you think things are getting better and second of all, is it all because of bam? >> if things are getting better, maybe because the market likes center. no doubt about it, our taxes are going up. that's what the american public

voted for and he's doing it. more taxes that will cost you more for everything including health insurance. >> that's a centrtainty. >> obama will get the credit. we know that's the law of gravity. the question is, is it appropriate for him to get credit. yes. all the mainstream economists saying what john maynard said when you're in a deep recession, do something counter cyclical, pump money in, act quickly. >> you have to look what investors have done out there. unemployment, where is it? still pretty high and going higher. if they want to make money, they have to do it on their own. you saw business leaders who gave back government money as fast as they could because they realized government involvement in business is not working. the credit goes to people who had the guts to do business on their own. >> i have to jump in here. this is predicated, this

assumption ben is making is predicated -- listen, i haven't made my point, you're telling me it's not. this assumption is predicated on george bush apparently gave barack obama this cadillac and barack obama totaled it. it's quite the opposite. look what he's been working with the past six months. >> i was against the first bailout, now, you're seeing wall street and others against the second one, too many strings attached. people doing business in this country realizing, i will make it on my own. >> what about these conservatives, what they're saying. >> there were three things in the recovery plan, one to spend money on job related programs. >> hasn't happened. >> started to happen. >> $21 billion. >> it should happen more quickly. the second, aid to state and local governments, if you didn't get them aid, they would have to raise taxes tore cut unemployment. we were able to stop that from happening. >> cents on the dollar..

>> we have to stop talking over each other. >> the third thing was safety net program which also helped put a tourniquet on what was happening in the economy right no now. >> we were headed off a cliff, everyone recognized that and the stimulus and t.a.r.p. program helped stop it from happening. >> joe. >> psychological. psychological. you have to admit, you talk all you want about money filtering down to states and local government, six cents on the dollar has filtered down to them. they haven't gotten their money yet. this is a huge disaster. all these people haven't been -- >> the last time we had a democratic president in the white house, we had peace and prosperity, every single economic indicator was headed in the right direction. >> look what's happening. >> look at the congressional budget office. >> we will go to a second topic. the stock charts showed us hope

today.y. look at the big jump in the dow, nice, liking that. this chart opens up our next debate. it is a map of what president obama's health care disastrous reform plan would look like. the republicans put it together. all right, squad, julian, i want to hear from you first. >> that's what republicans all try to do when they try to scare people. basically what the president wants to do is create a public alternative to the health insurance system a broken system -- >> the chart -- >> what -- >> when barack obama ran for president, i was sold on this idea he told the american people i will give insurance to the uninsured. you look what this does today, if you make as a family $88,000 a year, you will get a government subsidy to help pay for your health care even if you didn't ask for it. that's not helping out the poor.

>> julie. >> first, the republicans said a month ago, had this big press conference talking about the fact they want to expand access to health care and all these great ideas and said they would give us a plan and gave us a chart. >> when you try to ram it down our throat -- >> the chart shows -- >> did not interrupt you, let me finish my thought. bottom line, these guys spent this time putting it together that may well have been manufactured by the rn krrc, no cent or penny or thought given to how they will achieve their own goals. >> you have the cabinet agency, veterans departments, labor affairs, hhs, the list goes on, homeland security, a recipe for disaster. >> i think larry kudlow is right. i think this market rallied today in part. when they saw that chart and how ridiculous it was and probably a

pretty accurate depiction, this plan goes nowhere. >> maybe they realized it's good. >> we have big names to talk about, big companies critical tomorrow, ahead in just a few minutes. also ahead tonight, the business of porn, larry flynt of hustler fame with us tonight and counting down to 9:00, porn, the business of pleasure. ♪

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♪ nice song picked by producers, "hustler," at the much to the hour, 30 minutes from now, we're reporting on the porn industry, a dirty industry. and melissa reports on the women in the business and what they want. >> reporter: there are no official statistics on the number of women in pornography, according to industry insiders, the ranks are growing and that's good for business. >> what do you put in your movies to cater towards women? >> i try, what i tell my director is i want a stronger

female lead. i don't want it all to be about the guy. >> reporter: is that a change. >> oh, yeah, how about a female lead, guys, remember, it should be focused on the woman, not just the man. that's definitely a change we have seen in the last several year years. >> so many jokes running through my head right now, let's skip them, "porn the business of pleasure," tonight at 9:00, don't miss 1 minute. larry flynt remains an icon and publish ed "hustler" magaz e magazine. with free internet porn, it's amazing this magazine has survived much less thrived.. this weekend you arrived in style to celebrate 35 years in business. tell us, what does it take to stay in business that long, in

any business? >> well, we weren't successful because of what we did but in spite of what we did. in the '90s, we seen the light and we knew that publishing and video internet didn't necessarily have the features we were looking for. the last ten years, we've been diversifying, got into broadcast, into casino operations, apparel. we have nightclubs in ten u.s. markets and also in london, paris and australia. we are the largest adult entertainment company in the world. we're also the largest adult video provider. in the world with a presence in 67 different countries. >> that gives you an eye on actually the broader economy. first, how do you think the broader economy is doing? is it getting better? >> you look at the s&p, down 10%, profits down 45% but

earnings are starting to come back strong. all of us know that earnings drives the market, what this whole thing is about. i think that recovery is, you know, just around the corner. we've got a lot of hurdles with health care and some other spending issues, but i think we'll conquer it. >> how's your business in particular? is lsu recession proof? >> no, it's not recession proof but my core business is down. the businesses i mentioned, like casino operations and broadcast is doing really, really great. >> even in this market. where are you on health care? do you provide health care for your employees? >> yes, we do. i support the president's plan, you know, if there's a public option, i think that's the only

way it will work. everybody's so paranoid about the insurance companies going out of business, i don't think it will be a bad thing if they did. >> yeah, i do. iwonder if it might put them out of business. i don't understand how hustler survived when the internet mushroomed with all kinds of porn and narrow market, how do you manage to make a profit in the porn business at all with so much freebie on the internet? >> just what i said earlier about our core business. the magazine sales are down dramatically. dvd sales are down. and internet, because of all of the free porn that is on the internet, the sites, we're making a lot of money, including our own sites are down substantially. like i said, if it wasn't for the diversification we made in other areas, we would have a problem. i think the industry, as a whole, is having a huge problem.

i don't think the dvd market will be here a year from now. i think publishing is in big trouble. >> good luck navigating those difficult waters and thanks for being with us tonight, larry flynt. >> glad to be with you. >> thank you. let's bare it all now with the real deal squad. i don't know who to start with guys, the woman among us or the ordained minister. let's start with the ordained minister, joe watkins, what do you think of the porn business generally? >> what do i think about it? i think we all have feet of clay and nobody's perfect, because we have all fallen short of the glory of god, we can't point fingers. i will tell you this, that industry doesn't help anybody. business is one thing and hopefully most businesses people are in will help people be better people. this is one industry that doesn't help people be better people.

>> why can't it help a couple have a better relationship a more adventurous romantic life? why can't do it that. >> i don't know. i'm a married guy. i haven't needed that to help my relationship with my wife. i don't know anybody would need that industry to help their personal relationship with another person. >> from what i understand, julie a lot of people have no idea what they're doing and a little video help can go a long way. >> you're asking me? i'm sorry for you, dennis, if that's the help you need. i actually want to know how many hustler covers you have to buy to throw it up on the screen every time larry flynt speaks must be a huge stack of hustlelers. >> we have quite a collection. >> i actually disagree with joe. i met his wife, she's lovely. if people want to engage in porn, that's their decision to make, i'm very very, you know, libertarian about that kind of stuff. >> ben ferguson, the conservative republicans like to raise the moral bar pretty high for all america and then they

themselves kind of commit sin. >> i don't know if it's a a conservative thing as -- i know what the porn industry has done for my generation, ex-sploir ru marriages and is it good for my generation? no, we have divorce levels at a high rate. >> you're blaming porn. >> yeah, guys addicted to porn especially the internet generation we've never seen before, it's ruined a lot of marriages, you can criticize me for it. i feel bad for the women who get stuck in it and men get rich who own the companies. >> i thought the couple gets divorced because they hate each other i didn't realize porn played a big area. >> not my area of expertise. i always thought when economy goes down, porn goes up which is a different definition of stimulus. i think a different issue from public policy matter perspective is whether we are ensuring that

underage folks on the internet, this is increasingly available to them, whether we're ensuring through parental controls and mechanisms, they're protected. >> that word "parental," parents making sure kids aren't getting access to it. thanks for being with us and thanks to hustler, larry flynt. don't forget the porn special is on at 9:00. the bulls come roaring in, we're talking winners and losers tonight. many walters saying if you're not in the market now, you better hurry. >> you will miss this bandwagon. >> also tonight, he's already changed the world, now, bill gates plans to change the weather. this is not just a crazy scheme, he has the power and resources, back in two minutes. having the right tools is crucial

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the markets up big time today, 3% for the dow, 3% for

s&p, 3.5% for nasdaq. some bears are still out to kill this party as the bulls try to make a run. listen to this. from david tice. >> we believe that essentially the financial system is functioning only through the good graces of government intervention. >> only through the good graces of government intervention. you know what, the government has already been pulling some of that stuff back. jpmorgan of goldman went out and issu issued debt without a government guarantee. i think these guys that make their living selling the doom at some point, that will run out. at some point, the fear will be flooded by hope. that's what i'm hoping with this earnings season. >> at some point, you will be 100%. >> journalists are never wrong, just early. >> let's talk about the earnings. focus on financials. we have jpmorgan tomorrow. i want to talk about financials. everything surrounding earnings starts with goldman sachs.

i want to look at one week, and look at the run-up they had into their earnings and then it consolidated. we're working on this. they had another pop there, was no loss. everyone thought when they came here, buy it, sell the news, it didn't happen. look at the whole sector, look at the big names and weeks they have hat. citi group coming from a low point, amex, b of a, jpm, bigger groups than goldman sachs is having. jpmorgan tomorrow morning, range from a loss of 23 cents a share to a profit of 27 cents a huge range incentive-wise and a major difference. the consensus is for a four cent profit. in many ways, jpmorgan and bank of america, friday, more important, goldman, everyone seems to say and think it's separating itself, it's different a. lot of analysts s

think how the rest of the field fares will be a truer test. let's look at the financial sector. friday, art from ubs said on the 17th, end of the day, we know where we stand. financials are true leadership will be determined by jpmorgan and bank of america. if those two report a loss, we're going to feel a lot different friday afternoon. >> i cannot believe the wide range. shows you know one out there knows what will happen until it happens. you have to place your bet. with those financials running up so nicely all week long, you have to wonder if they will take profits even if they have an earnings report. >> goldman has tripled. people are nervous about it because they do not want to get burned. people on the sidelines, people looking for entry point on a name like goldman just don't know when to jump in. >> that's hard if you didn't buy in because you were so

terrified, do you buy in now at $1.60 or something? i don't know. it would be great if it can catch fire and spread, the finals that got us into this entire mess can at some point lead us out. >> just cost cutting and lowest mats can't lead us out there, has to be some growth. >> reason to rally. >> i like your consistency. >> i like it, too, you have to believe it. >> more stock talk in a few minutes a few guys with money in the market will tell us how they're playing this run-up, first, jpmorgan announces earnings tomorrow we kick it off tonight with jamie diamond making it clear how he feels about the government's role in the banking sector. he doesn't like it. "wall street journal" reports dimon is unhappy with walt's derivative trade to publicly lifted, transparency of all,

dimon the first honcho to publicly complain about it. i say this is way underplayed. it's about time somebody spoke up. dana milbanks, start us off. >> i agree it's underplayed for an entirely different reason. if it got a bit more play, certain wrath would be directed at mr. dimon, not quite of the aig bonus scale, people would say, look, we had enough of too big to fail now you guys are few failed to talk big. let's tone down the arrogance a little. >> dana, they paid back the t.a.r.p. jpmorgan is out of the woods and jpmorgan never needed that money. >> of course they did. $25 billion is okay for them to receive from the government. when things change a little bit, they won't take the regulation, what you just said, got us into this mess in the first place. if the government can't now change the way banks do

business, what have we learned. >> beverly goodman, jpmorgan managed risk just fine, jpmorgan didn't take the hit bear stearns took. why can't it speak up right now and say you're going too far with regulation. >> it can speak up all it wants but any player in an industry that owns 40% of the derivatives market obviously has a huge stake in how little regulation it gets. it's a little absurd for jpmorgan foact like it paid back the $25 billion and now has a clean slate. it doesn't. >> funny, i think it's absurd the government thinks it can do a better job regulating this than the people that invented it. hank the hero, former treasury secretary henry paulson testifies before congress. has paulson been unfairly vilified in the aftermath of the meltdown? i say this story is understood

play -- underplayed. i think congress ought to apologize for beating the daylights out of im saying you were right. even obama is only buying $30 billion worth. >> there are a couple stories. hank paulson is the guy who thought he could solve the economic crisis with a three-pager calling for $700 billion in buying toxic assets. this is not some genius guru that saved us from armageddon. >> actually, you are entirely wrong. how can someone i like so much be so wrong. dana, this guy did save the entire system from economic collapse. >> i'm sorry. to the extent paulson is getting any credit, it's overplayed, like giving rumsfeld war hero status for iraq. >> how can you say that? he didn't get us in this mess? >> i sat in a hearing with him in early 2008, there's no problem in the mortgage markets, economy is coming along, the market will take care of itself. >> except for a couple of bears

always bearish and always predicting doom and turn out to be right. >> he was the secretary of treasury, he has to be right. >> i think the guy took the steps we needed at that time. the fact he wanted a $700 billion hedge fund with very little restriction, who can blame him? he knew how to run the money better than government did. >> too little too late. >> we have three ultra liberals. the liberal press right there before you, bill gates, playing god, the microsoft founder and several scientists have come up with a contraption they say it can be used to reduce the number and severity of hurricanes by basically taking the cold water from the bottom of the ocean and moving it to the top of the ocean. the consequences, who knows? i say this story is underplayed, free market at work, you don't need government, i love it. google is working on a version and will do it for free.

>> i agree, it's underplayed. everybody complaining about the weather and nobody does something about it. finally, bill gates is stepping in there, possibly, he might think of electric cars or something to deal with the disease opposed to symptoms but let's give him credit. >> absolutely a. creative thinker with fiphilanthropic see and more money than god. if anyone can change the weather, he can. >> wrap it up. >> i'm happy he's doing it. i would rather have a solution to hurricanes than see another version of microsoft word. i'm quite pleased he will change the weather for us. >> nicely done. nice line there. thanks. >> more bulls and bears next. this market today out of control for the good. i said it before, i'll say it again, recession is over. i'm not the only one saying it. i have backup from merrill l lynch, i'm talking about individual winners and losers during this bull run coming up

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joining me with stops picks and pans, bullish lee munson, asset management and bearish, peter. and joining us once more, fritz meyer, senior market strategist with invesco and bill, with core state capital advisors. lee, start us off, where are you putting money now? do we go back down or is this the start of a new rally? >> i think it's the start of a rally, second leg up. if we go down tomorrow, futures poi pointing up, i would use that opportunity. if earnings go well and they don't show anything unusual, we want to go back in. right now, you have to get rid of your junk. that's what's been going up since march, look at some quality names right now, you'll be okay. bottom line, get rid of junk, look for quality. have a keycorp, sell it. maybe a pullback, i think we

will get a late summer rally. if it doesn't happen, this fall, market's going up. >> all right. bill, what sectors or stocks you looking senate. >> i'm a big believer a recovery has begun. i like anything you can eat, smoke or drink, that category will be great profits. >> discretionary? doesn't that count as discretionary or escape astaple? >> both. buy both.. you have tremendous und undervaluation. stocks are 20 to 30% under valued. and it's like a cockroach, it won't die, back in the game. >> there you go. we won't see any ad campaigns for consumer brands but i'm with you. >> peter, i imagine this bullish talk is making you feel uncomfortable. >> i'm wondering with household debt and disposable income north of 120% how consumers will come back gang busters. >> it didn't bother them before.

>> it's different world, that was a rate of 9 1/2% and credit card companies won't allow consumers to drive spending they once did. the world is recovering but mostly it's outside the u.s. the u.s. will have sluggish growth with a noose around this economy. >> but the fact is the rest of the world rebounds, we are the biggest exporter in the world and we sell to those guys and furthermore on credit cards, they're charging 20, 30% interest, they're not going out of business just because their defaults go up a bit. what do you say, fritz? >> you're right on that. i'd stick with sensitive economic sectors that go with the rest of the world. >> give us two or three. >> i'd stick with materials, industrials and consumer discretionary. i love that point about cockroaches. consumer spending will hold up reasonably well. finally, i'd stick with

financials and lastly technology a leader. year-to-date, thick that continues. >> lee munson, why aren't you talking about tech? tech stocks, they're earning double, triple what they were earning five, six years ago and there will be a snapback in demand from corporate customers and i think tech's a great buy. >> i do think it's a good buy. when you start looking at the multiples of things like, even something like a retailer like ebay, you don't have to do something like sandisk, though i think it would be a great speculation going into next week's earnings. but when you look at a cisco, which is the bellwether, i want to warn people that tech is going to come back, but you have to avoid some of these smaller, commoditized names. we're big in altria, which is the domestic phillips morris. i love sarah lee. i even like burger king. a couple days ago, they said, we're not even going to do a dollar menu because we don't need to. so you've got to take a cue from some of these companies. >> that's an interesting point.

peter, how long-term of a bear are you here? obviously, you must not see anything turned around in nine months, otherwise, people would be buying stocks right now. >> since the march lows, i've been bullish on commodities and the impact that has on emerging markets. i'm bearishn't u.s., bullish on south america. bullish on asia, bullish on the emerging markets of eastern europe. the u.s. is going to grow below potential for a few years. we're going to get a second half rebound in auto industries. >> what's your forecast for second-half rebound. >> it's maybe possible, but if it's export oriented, if it's going to be trade and inventory restocking -- >> car sales will come back. >> that will come back, yes. >> 0.7 percentage point. bulls bears, thanks very much, guys, for being here and thanks for your thoughts. i'm back in two minutes with tonight's bombing run on those pesky, hateful bloggers.

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came across a curious blog post today. a thoughtful guy and a blog called butthenwhat.com. he asks a question of me and anyone who says this recession is over. he says, so what. he says, quote, it doesn't matter, it doesn't make a dime's worth of difference to the people who are unemployed, under water on their homes or just generally terrified about the future. guys, i've got to tell you, so what? so what? of course it matters whether this recession is over, because it's the fear that is killing us. and the faster the downturn fades, the faster the fear will fade with it. i know it's tough out there, but could we look at the other side of that dime of difference that this blogger talks about? okay, yes, we've got 10% or even 16% of the nation unemployed. that's really tough, but it also means 84% of us still hold our jobs and the layoffs are slowing, they are not accelerating. and okay, yes, we've got something like 5 million homes

in default or in foreclosure. and some forecasters say that could rise to 10 million. that is difficult. but it's no tragedy. it means 100 million homes are in pretty good shape. and finally, yes, the stock market plunge has hurt like hell. my retirement fund, my life's savings shrank by 32% in one year. ouch. but the markets are up 30% or so in a few months and i'm hopeful they will keep rising overall. see, hope is the thing. and here's the other thing.. we're not allowed to admit, a lot of us, because it would be politically incorrect or insensitive when so many others are suffering, a lot of us are doing okay. if our job is safe and for a lot of us, that's true, and we can make the rent or the monthly mortgage payment and we bought our homes before, say, 2005, we're not in financial straits. and we don't have to be so afraid.. and like i said before, it's the

fear that's hurting us. i'm thinking it's time to sell short on fear and start buying lots of hope. i'm dennis kneale, that's all for us to tonight. "cnbc reports" is back at 8:00 tomorrow. stay tuned for "porn: the business of pleasure." have a great night. it's a $13 billion industry where the bottom line has always been sex sells.gi "porn: business of pleasure" next. where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions.