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bulls and bears, some of the brightest in the business go head to head. compensation war. new york attorney general andrew cuomo says u.s. banks bailed out with t.a.r.p. money paid out more in bonuses than the execs earned. and the man who moved into this new condo building in florida. ever see the shining? "cnbc reports" starts right now. >> good evening, i'm dennis kneale. are we back? you bet we are. so far the summer rally just ended and we ended our best month in the dow since 2002. stocks are up 7% or more in a month. it's a friday, take your profits and go home. that didn't happen. let's explore it in the real

deal with dennis kneale. we hold these bull-bear debates all the time in cnbc and drill down with arcane economic methods. i'm convinced the real point comes down to this, either you believe in the future of america or you don't. you believe we in habit the best, most innovative freest nation on earth or feel we're headed for the trash heap of history. by now, you guys can guess which side i will take. let me invoke a fancy trade. a latin phrase. it means american peace. another translation, the greatest nation. pax romano applied hundreds of years ago when rome ruled the world. and pax applies today. no other nation on earth, military might, economic power, moral intent. we still invent the greatest new

tech products on earth and over half the new prescription drugs introduced every year and culture and media and entertainment that shaped much of the world. some really smart people will tell you the 21st century belongs to china new york times city america. i don't buy it. china can trash our currency but still buy u.s. treasury bonds because they're the safest on earth. look how long china has to go. airports. china has 477.7. how much does the u.s. have? 14,000 airports in the u.s. to ship products around the entire country. let's look at roads. china has 1.2 million roads. how many does the u.s. have? oh, 4 million roads, more than three times as much. rails. let's look at railways. they will ship products and take things to people and distributors, china, 47,000 miles or so and the u.s.,

140,000 miles. china has 14.3 million computers connected to the internet.t. 14 million. how many does the u.s. have? 3 300 -- 3316 million. if i have my math right. we invented the internet and built it. china still hanging there in with the equivalent of riqshaws. i fear not. both dow touched on the gdp numbers that came in less bleak than expected.. i think it will put a spring into your step and portfolio. better yet, today's rise may show new money is beginning to flow in from the sideline and could be good for stock prices. for more on that and what it can mean for the market and etf,

let's talk to john, managing partner and founder of et watch.com. is new money flowing in from th sidelines. do you see evidence of this. >> yes, we saw new money flowing in this past week despite resistance from up above. and big asset allocation trade is about to take place, we break that level, we think short term defense going on trying to protect the thousand level in the s&p, we think sooner or later, we will break and go much higher. >> let me see if i can translate and get a little more energy out of you because this is a happy thing we're saying, happy about new money flowing in, good for the markets. we like that. what about this thousand trade thing? tell us about this. >> an asset allocation thing out of bonds and s&p futures. the reason for this is money managers behind it right now trying to catch up, waiting for

that elusive pullback we haven't seen yet. we're expecting these players have to get into the market once the thousand level is broken and obviously get out of lower yielding assets and take a chance on s&p. >> right. what we're talking about, people will feel confident enough to take on a little more risk for higher returns on their money. this s&p thousand number, one reason it's important, psychologically, people go wild and the need beyond others have to catch up to that, don't they. >> exactly. you look at etf that performs this year, we had triple qs and smh and oil service holders we've been long for some time now.w. the basic reason for that is because the flows are going well into nasdaq, more aggressive risk averse stocks. as well as the oil, commodity,

deflation trade and smh has been the benefit of being overweight, more of the nasdaq type stocks that have been more concentrated. we believe that will continue going forward. >> okay. thanks very much for being with us, john. we have to wrap. i just wish you'd sound a little happier about all that. have a great weekend. time to have the real deal on the market.. bulls and bears, john brown at euro pacific, a bear, mat shapiro, a bull, at instituteland equities and another bear, bullish bob phillips of spectrum management group. bob phillips, what do you think of idea of s&p 1,000, whether it brings in more investors in the sidelines and that creates more of a frenzy and we keep rising? >> dennis, thanks for having me. aagree with that trending, definitely up. this earnings season, 70% of companies beat their earnings

expectations. more important than that, close to 10% of the companies have been raising their guidance going forward.d. that has not happened for quite some time. >> in this market, companies are trying to be anything but optimistic. michael pinto, how can so many investors be so wrong when you feel the economy is in shamables or headed for it. >> i didn't say the academy is in shambles. the federal reserve takes interest rates to zero and loans an unlimited amount of money for free, you can have some earnings. but it's all built on the back of cost cutting, equivalent of burning your furniture to keep your house warm, you can't do that forever, you have to grow revenue.e. sorry, dennis. >> lower costs when your business is selling less stuff. >> don't you have to grow organically? don't you have to increase revenue. >> won't there be a snapback in

demand, anniversary are so low, they can't put it off forever. >> our economy is built on debt and inflation and led to a jobless recovery coming out of the last two recession, you know that. our economy is built upon the construction of asset bubbles.s. that has to stop. it's a very unhealthy type of growth. >> sounds like a sambles to me. shambles to me. >> you will have a positive trend on gdp. it will be a very sloppy and choppy recovery. >> actually, i'm thinking it might be better than we think. john brown get in on this, i know you're a little bearish but i think i might be able to convert you, i'm working my influence on you. >> i love your fax -- pax amer can no. but we have a rally turning into a suckers rally and could go to

10,000. it's based on three things, first, relief the banks seem to temporally been relieved, thirdly a hope for a jobless recovery and oxymoron and third, reality interest rates will rise and taxes will rise and unemployment will rise and that will stop a genuine recovery. >> unless we can find way out of that. which bull have i not called upon? matt shapiro? >> i think we're running the clock out on the recession. i like this talk of s&p 1,000. the big talk on the floor was one money manager buying 20,000 calls on s&p 500. he $2033 million to control $2 billion worth of the future. >> he bought condos in florida in 2006. trading 17 times all 2009 earnings, don't you think that's very rich for an economy so

laden in debt as we are today. >> bob, what do you think? >> what this trader is expecting once we break the 1,000 barrier like the first guest said expectations are we could go rapidly higher and people will be very surprised. >> i would not argue it's not a tra trader's market at this point. go back to some fundamentals. the trends are improving, not just earnings. you look at this quarter's earnings relative to the peak in june 2007. >> down 24%. >> down 34%. >> dennis kneale. >> do you think our future -- do you think america is incapable of working our way out of these problems. >> unless we have fiscal and monetary discipline, we will have another depression. >> do you think we will get that discipline? so we're doomed. john brown, do you think -- >> you said packs romano.

>> -- pax romano. >> do you think america is destined -- >> with good leadership, with ronald reagan and good leadership -- >> that's not where we're going. >> no. we're having more and more  government. >> right. >> the government's crowded out the debt market and world marke and had to go to japan to raise its debt. >> growth has to be economically viable, has to be sustainable by the market. >> i have to shut you both down. we now have two guys bearish on the market and they're arguing with each other. the bears are beginning to panic a little bit. they feel this rally. you guys have a great weekend. we'll be seeing you in a few minutes. stick around. if you offer free money, people will come. that's what the government is facing today. congress had to rush into session to come up with $2 billion to extend its cash for

clunkers program. the program offfers people 4500 bucks to turn in their gas guzzling clunkers for a more fuel efficient car. i want to bring in julie of the real deal squad quickly. julie, bad idea or great idea. >> great idea. you want stimulus, you got it. it will help the auto industry, auto parts dealerships and help the environment i know you care abou about. >> i wish every stimulus program did this. >> you love it, too. >> it's like granting tax breaks, 4500 dollars a car. they should be passing more tax cuts and tax incentives instead of trying to slap taxes everywhere they can from salty snacks and soda all the way up to the rich. thanks, julie. i'm cutting you off. i'm drunk with power. next up, the real dealers, try to say that a lot. they weigh in.

and new york attorney general cuomo on big paychecks. what business is it of his. he did a study to show t.a.r.p. compa companies paid out more than they made in bonuses. this building, 32 stories of it is his. he's the only one that lives there. talking to him tonight, eight minutes from right now. he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half. and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah. his and hers. - ( crowd gasps ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion? - ( chirp ) good to go. ( grunts ) timber!

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victor bought a building in fort myers. they're the only family in the entire building there. are a lot of things nice about that but there are some things not so nice. we'll talk to him in five minutes. cash for clunkers is back on track. the house approved a bill to extend the popular program with

another $2 billion after it ran out of money last night. the real dealers are back, julie ro ginsky and former press secretary to president bush. let me find out whether the republican side has a problem with this. what do you say, tony? do you like the program or a horrible intervention by government. >> a horrible intervention by government. if this is such a great idea, this town is so starved for a policy that works they're jumping up and down and banging guns today. if it's such a good policy, what about the refrigerator guys? trade in your old refrigerator, tv guys, let's take care of them, too, you know. when you pick sectors and industries and try to favor them, you zet distortions. by the way, who are buying cars?

this is exceptionally regressive. i have yet to find anyone who makes less money than me that has taken advantage of this program. >> go ahead, kelley ann. >> it's the same government dennis telling us to walk to work or ride our bike, cut our emissions but now run out and buy a car, under their own regulation, it only needs to have 22 miles per gallon, only four miles per gallon what they call the gas guzzling suvs. i think congress was desperate to go home for august recess and tell our constituents what i did this summer, can't say they passed health care reform or held the line on taxes, or cap and trade. >> i think overall as green measure, this is kind of dumb but i will take as many car sales as we can get. >> you and i actually agree on something. you wanted a stimulus faltering, by all accounts, it's incredibly popular and unwise for anyone to

vote against it. the money has been appropriated already. the reality is obviously they need more because people spent this money in a week. >> it's a lot better to spend this billion on something like this than pig farm research. next topic, mere mention of bank bonuses threw many into a heated lather. andrew cuomo, new york attorney general i'm running for governor released a report that banks that were paid bonuses of nearly $33 billion. this is not andrew cuomo's business. he's not in charge of t.a.r.p. the feds ought to worry about this, not the state attorney general of new york. >> are you talking about the substance of what he's snag he's absolutely right. your money, my money, taxpayers spending on bonuses.s. they're taking our money and spending anything.

they're not producing anything. >> they're paying their people. >> they're not paying their people. they are paying people for work that was not done. if you didn't show up to work everyday, you wouldn't get a bonus. they're screwing up the economy. >> hold on. they're screwing up the economy? there are five job seekers for every job available in the obama-biden economy. hold on. you're telling me the banking industry doesn't work?? don't show up to sfwhork does anybody not have a bank account or mortgage? >> they're not the ones who messed this up. a company has a right to pay its employees. >> not with my money, they don't. they don't deserve bonuses in this economy. >> what is wrong with knew spitzer wasted more money on a hooker than they're wasting on bonuses. >> i give people bonuses for a job well done. they did not do a job well done, they wanted me to bail them out. >> money is managing risk. that doesn't mean you want to

rip off the rank and file. when these banks were paid $3 billion. let me remind you the federal government gets $11 billion state and cities get millions in taxes. >> a bonus should be for job well done. >> these workers have a right to a contract. unless we want to turn into a nation that abrogates contracts. the banks are paying this money back with interest. if you want to make these workers, talent we have on wall street, if you want to find a place for them in foreign banks, this is what you want to do. barkleys and other foreign banks are out there today taking -- >> julian, the thing most people don't understand when you're a million employee at a big bank, your bonus is 90% of your annual compensation, it's not this extra thing in addition to 100%. julian. >> i think we're making too big a deal out of bonuses. >> good for you.

>> i think it is a fair for the government if they want to put limits an conditions or banks that take t.a.r.p. funds i don't think it's fair to say what bonuses they can give and i do think it is fair trading is honest and investments honest, we'll get rid of conflicts of interest from rating agencies and make sure capital requirements, those are the issues to make sure banking systems have integrity. beyond conditions of the t.a.r.p. funds conditions it's not their business. >> you're talking about going to foreign banks these are the guys that slice and dice mortgages, what do they deserve bonuses for. >> it benefits the u.s. economy. >> we are wrapping. thanks very much. what is to be done about knit it's the error of pax am americ.

see that guy on the balcony? he's victor from germany. saving and saving, just bought a beautiful apartment in fort myers, florida, just one problem, he's the only one in the entire building. we're talking to victor when we come back. and as a progressive customer, you get to use any of our concierge claim centers. so i can just drop off my car and you'll take care of everything? yep, even the rental. what if i'm stuck at the office? if you can't come to us, we'll come to you in one of our immediate response vehicles!

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anybody home? this story simplifies the condos that left one family as the only occupants of a 32 story condo in fort myers, florida. now, the odd man out. victor and his wife, kathy. victor, how long you been there? when did you move in? it been like? >> we bought it in november '08 and come down for vacations. it's been an adventure. >> you moved in, in november? when did move in full time. >> we're not here full time yet. this is a future home we purchased early back in '05 and wasn't completed until 2008 of november just now. >> did you get really easy money to buy this thing? what was your down payment? >> easy money?

down payment was around $84,000, 20% of the purchase price. >> that sounds like a solid loan houchlt did you manage to have this problem? when did you realize, my gosh, there's no one else here? >> from coming down here, when we were here, nobody by the pool. we got front spots in the parking garage and we only met one other person that was living in the building that transferred to the other tower, now, i'm realizing we're the only ones here. >> do you ever get chills down the back of your spine, you come home and put the key in the front door and coming in there? a little creepy. >> yeah. if you come oo into the parking garage, it's like a shiny movie, the movie of "the shining." you run to the door, you get in, and then you take the elevator up. once you get across the elevator to the door, you're home. >> what happened there, are twin

towers with this con coe ddo pr. the developer wanted to move everybody into the first tower but your lender wouldn't let that happen? that's how you ended up not being able to switch buildings, how you became last man out? >> that's correct.t. our lender said if we left, we'd be in abandonment of our unit. we have to stay, stuck here in the middle. >> on the other hand, must be full-services staff, are they staffing the whole condo at all? >> no. we don't have a concierge, don't have a security person. sometimes i go down and make sure the doors are locked. for the entire building here. >> oh, man, that's pretty rough. >> yes. >> i'd like to bring back in our real deal squad. we have a couple of people that want to ask you a couple questions. tony fratto, kind of

conservative republican guy. do you see how this exemplifies some problems of the housing bubble and too easy money? >> yeah. this really is the problem. if this was the only situation, it would be pretty unique.. the truth, you go through south florida, parts of arizona and los angeles, you see this repeated, repeated, condos with 700 units with 20, 30, 40 tenants.s. the problem is we set up these government programs and government programs are never set up to deal with this kind of problem, never with vacation homes, these kinds of condo units. >> julian a question for him? >> yeah. one of the first things you learn in law school, when it comes to property there, is something known as specific performance. when you contracted and you bought this place, you were also promised you would have all the amenity, swimming pool and all the other facilities inside the unit. my understanding none of those are operational because nobody

else is inhabiting this structure other than you.u. you actually have a legal case arguably against the developer. >> construction abandonment or something, right? yeah. victor, have you fought back with this?s? hire yourself a lawyer, start rattling the sabers, specific performance. >> not if the condo guy says you have to have a certain percentage of occupancy. >> do i have a lawyer. >> right. >> you can hold a great party. no neighbors to bother you. >> yeah. >> victor -- two things, victor, i want to say you're a very lucky firefighter, sounds like you've been very frugal and good with your investments in that you never met summing sonia sotomayor who denied you your promotions. i wonder, does dominos deliver there? how's the takeout situation. >> they have a delivery service but i have to go down and get it. >> kind of defeats the purpose. >> i might as well pick it up. yeah. >> victor, when you bought, did

you feel like i am buying at the peek of the housing bubble, i could get burned here? i did that occur to you at all? >> no. i just just buying because i wanted to move to the southwest florida area, very interest in the design of the building. i was inspired by the george perez, what he built in miami.i. i thought this would be a great resort area for us. >> all right. anybody got anything else for victor? any other advice? i like julian's advice. >> victor, i have to jump in whampt does your lawyer tell knew it's very on strauss me based on what julian said, you do have an excellent case these people have not lived up to their responsibilities. why are they not doing senate has your lawyer said anything about that? >> i don't understand it. the group is a large developm t development. they can take care of us by moving us to the other unit or buy out our lease. they have never completed all the amenities. we don't have a restaurant.. we don't have the clubhouse.

>> you're doing the right thing here by bringing attention to it. hopefully they'll pay attention now that you're on tv talking about it. >> are people jumping into the pool, you have marauders in the middle of the night. you were promised when you bought the place you wouldn't have any of that stuff and you can insist on that as a matter of law. >> get yourself a hand-held video camera and start recording everything and doing daily dispatches on youtube, you might get a following there and "the shining" aftermath. >> sounds like you would make great neighbors and good if the housing market is rebounding. >> thank you very much. >> thank you. >> there's stale lot more ahead tonight on "cnbc reports." health care under attack. ceos from almost 200 companies send a letter to the white house arguing it's a huge mistake. their side of the story straight ahead. another sign there's no free lunch for corporate america in

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welcome back to "cnbc reports," here again, it's dennis kneale. >> you knew we'd be playing that song, rights? what a week it was. look at this one monther for the dow, the best july since 1989 and any kind since 2002. um more than 8% for july. s&p also scoring big gains, up more than 7% in july. the nasdaq not missing out on the action, check out this run-up, nasdaq up almost 7 1/2% in july. now, for a look at what to watch for next week. here's bob at the new york stock exchange. >> dow up up for the best month in julie. lots to talk about for the month of august. the jobs report will be out next week. the big issue, can the rate of

job losses continue to slow down and auto sales and should improveme improve with the cash for clunkers program. how low can the dollar go, lowes index since 2008. helps commodities but hurts foreign relations. >> thanks for that. carl up next. writes the influential market ticker blog and his basic investing outlook is we're all going to die. america is toast. carl the blogger is quickly becoming a fan at "cnbc reports" and he's live on the news line for us tonight. hello, carl. you keep saying the mainstream media is a bunch of idiots, cnbc is telling a bunch of lies when ever i hold out hope and optimism. yet you can't stay away, keep coming on, this is your third time on cnbc within the last month or so. let's talk gdp. the big market, they all expect down 1.5%, number comes in down

1.0% hallelujah, good times coming here. tell us why you don't like it. >> it was not down 1%. 1.9% with the revisions and you take them back out. you make a change and push a revision and push it back, you take from there, you distorted the numbers. second, we did baseline revisions this month, which means everything got changed 6, 7, 8, 9, 10 years. >> you can go back ten years, karl. >> hold on. >> the head line came out, people feeling better, the market did not falloff. all those footnotes you're looking at, do they really count at all. >> yes, they, do here's why. let's go down the list really quickly. real non-residential fixed investment, non-residential structures, equipment and software, residential fixed investment, imports and exports, all those categories the primary coeings in the economy are down anywhere from 40 to 60% in the last two quarters.s.

we're in a recession.n. business spending down 39%. >> hold on a minute. >> is down only 9% in the second quarter. that shows a comeback. >> no, it doesn't, dennis. the only thing up and the only reason we didn't print a number worse than last quarter is because real federal government consumption and expenditures went up 10.9%. last quarter they were down 3.4%. >> i have a problem with the government component there. >> that's 30% of gdp. you add a little over 1% to gdp on the negative side, in other words, that 6.4% down would actually be about 5.3. now -- >> you know, karl, you have all these numbers. there's one number you can't explain the s&p 500 is up more than 40% since march 9th, despite all your numbers, my friend, how do you explain that, karl, everyone else is wrong and you're the only one who is right? >> i explained it the same in 2001.

in 2001 we heard the same story, inventories were going to be built in the next quarter, they were not just as they weren't this time. the market skyrocketed. everybody piled back in because you and -- >> everybody is making money right now. >> you and everybody else, cnbc, the "wall street journal," everybody said the recession was over at the end of 2001. you know what, technically -- >> how are they making money, karl? do you get paid for all those blog post deucs you do? how you do make money, karl. >> i make money by trading. you can trade this market on the long side or short side. the fact of the matter is, the economy has not turned. >> did you say you were trading money by taking long bets by betting on stuff going up or are you making money by shorting everything because the world's going to hell. >> dennis, wise wrong from 10 handles off the bottom up to the upper 800s. >> from 600 to 800.

>> upper 800s. i bailed off most of them at 875 because the markets overextended. we're seeing the same thing we saw in 2001. everybody is piling back in. it's wrong. >> the same thing we saw in 2001. i could swear from 2002 to 2007 stocks rose something like 65%. that's a lot of a run-up to miss out on because you're so smart at all these good numbers and you are incredibly smart, i read your stuff, appreciate it. got wrap you now. go to bulls and bears. let's see what john, matt, michael and bob think about what they just heard from carl. bo bob. >> you have to look at bottom line. a trend is a trend. earnings are improving a awful lot of cash on the sideline. 36% of market value in money market accounts. i think as thingston improve and finally, the stimulus might start being spent this next two or three or four quarters.

earnings are falling. >> earnings are falling. >> earnings are improving from where they were. >> only above estimates. >> they're going below estima mates, john brown? come on. >> what i love, dennis, was your pax americana because that promises peace and prosperity for years to come. to achieve it, we have to restore freedom enterprise and minimal government. >> i think we will. >> we have to roll back -- >> during that time, the economy keeps growing and people can make money in the economy. >> it's on a roll. i think socialism is on a roll, which it is. >> only pax americana would it be a great idea to borrow billion s billions of dollars from the chinese to build japanese automobiles. >> you guys always make this translation. i don't understand how the government selling treasury bonds to the chinese has anything to do with buying a

nissan. that's a maid-up connection, michael. >> you have to borrow all that money on the short end of the curb. we have created the largest adjustable rate mortgage subprime america's debt -- >> the largest -- >> aren't the interest rates at all time lows? >> dennis, dennis -- >> the largest ponzi scheme. the reason that the chinese -- the reason the chinese didn't translate -- buy treasury bills because they wanted to hold dollars rather than convert them into one and drive their currency up and hur their exports. >> they rolled their debt over to the curb. >> right. >> when america issues its treasury bonds in un wait until they start issuing yuan treasury bills. >> go, max, go.

>> ed a the thoerchd day you have to manage money i'll take blue chip stocks better than treasury at 3.5%. >> we will wrap it there. >> especially investment in treasury when all you guys think interest rates will soar and you're stuck in low treasury rates. >> thanks. next up, guys, lunch. if the white house invites you, you would think maybe you're going to have your meal picked up by the taxpayers. not in the case of the great american corporate executive. if this isn't a hostile policy, i'm not sure what is. i'll tell you a little bit more. and later, blog you! no need to say more than that. announcer: what are you waiting for?

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as the house democrats left for vacation, they were taking credit for the economic comeback. i say not so fast. here is tonight's sound check. >> since president obama took office, the dow is up 15%. the s&p is up 23% and the nasdaq is up 38%. all of those three indexes under the bush administration over eight years were down. >> i'm not sure i ever heard a government official before say we should judge government's performance by the progress in the dow. let's get back to the real deal squad, julie, kelley ann, tony, julian, tony fratto, former bushy. i have to tell you i do worry about how much government spending is up. worry about government deficit even in the reagan era was 5% gdp and now 13%. government shouldn't be patting itself on the back, right, tony.

>> absolutely not. certainly shouldn't be patting itself on the back for the gdp numbers of the previous quarter there.e. was hardly any stimulus spend ing in that quarter especially with the size of the economy. they should be careful looking at a six month period of the market. >> they will regret it. next topic, real quick. imagine this, you're invited to lunch at the white house with president obama. when lunch is over, you're told to pony up and pay your tab. that's what's happening. let's ask you guys about that. tony, you worked in the white house, apparently some banking executives went there and were asked to whip out their credit card. what are they thinking? and wonderful example how far ant anti-business and sanctity moneyious obama people are. what do you say? >> i'm not crazy about it. the larger point was to make a message about the recipients of

the bailout won't get a free lunch. a little bit like the lamp better than nixon. nixon kept the best wine for himself and gave the bad wine to his guests. >> i'm so sure when the union leaders go in there they're asked to pony up a nickel.. come on. this is a double standard. i think there's absolutely no class in the white house to invite someone into their home as anyone on the panel would and pass the basket to pay for your sloppy joe. very bad precedent. i'm not surprised. this is like when the president gave the queen of england sort of the kmart blue light special package of the 25 greatest american movies, just completely thoughtless, and very classless. >> a rookie? >> rookie, he is.. >> julie, when union guys go to the white house, they're going be given doggy bags. >> did you get a doggy bag? come on, you'll be shocked to here i agree. if i invite somebody over to my house i usually pick up the tab. >> they were all coming so come

on over.. >> tony was wrong in your previous question. 40% of the stimulus money, an important point from the trivial. 40% of the recovery funds have been spent. all of the analysts from moody's to goldman sachs are saying the recovery plan, obama's recovery plan has had a dramatic effect. >> wait, wait, wait. >> and also -- >> let him finish the point. >> taking us from a 6% negative growth to positive growth. >> and how many -- >> the bush administration milked every single victory we this ad infinitum. the democrats are in charge of the economy, we're tanking. you guys -- >> steny hoyer didn't say the deficit is down. it's way up. when you guys came into the white house you did not have a deficit on the way out the door

you left obama with a huge deficit. >> you got to let people finish before you step in. go ahead tony. >> julie, we also had a recession when we came in. we still do not have positive growth, we have neglect stiff growth. the gdp they revised it down by almost a full percentage point. i'd be very careful again about looking at the gdp. >> when obama came in, we may be at negative one, as dennis said we may be in positive growth.. >> we may be further negative. >> all of the indicators from the dow, every other indicator, business investment is showing signs going up. you guys can't admit it when obama's plans are working. >> when the economy doesn't grow? >> guys, be quiet. be quiet and go have a great weekend.d. thanks for being with us. next up, blog you and you know who i'm talking to. it's my turn to hit back against all those nameless, faceless dot-com cowards, i am behind pax

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believe it or not i'm walking on air ♪ ♪ i never thought i could feel so free ♪ ♪ flying away on a wing and prayer ♪ ♪ who could it be ♪ believe it or not it's just

me ♪ >> what a sweet song. my many bashers on the blogs say i resemble beaker, the lab-coated muppet. my friend sherry decided i should celebrate this rather than let it hurt my feelings. take a look, can you see that? blog you. meep, meep. thanks, sherry. where do you stand on the future of your country? do you like the denizens of the blogosphere believe america sucks, we're doomed to runaway inflation, i don't. i think our greatest times lie ahead. our problems can be conquered. . we will heed the world in enterprise and business and wealth creation. let's not forget we still invent the greatest, new tech products on earth. google was not invented anywhere else. it was invented here, not shanghai. we still invent over half the new prescription drugs introduced every year. we still spawn the culture and media and entertainment that

shaped the world, we have the fiercest, fiercest profit-driven economy we've seen.. i know the problems we face in the next year or two are daunting. i believe we can overcome them and you should believe it, too. thanks for being with us. i'm dennis kneale. have a great weekend. we're back on monday. ♪ living in america