i do think president obama is on the defensive.

the insurance plan is dead in the water. i think the new bull market, however, is alive and well. and as far as beastly affairs with bernie madoff are concerned, that is so yesterday's story. maybe we'll learn some good gossip about his operations. hello, dennis neal, what do you have cooked up? >> we have a great show. wait until you see it. stick around. "cnbc reports" we're starting right now. tonight on "cnbc reports" the markets finished down but staged a late day comeback that could set us up for a monday bull run. tonight we're focusing on the unfocused. we're trying to shed some certainty on the uncertain. we're asking this question -- what's the holdup with reappointing the fed chief? and is that what's holding us back from dow 10,000? >> we're seeing growth second half of the year. >> is he the man who can help us get over the hump? also tonight, one government controlled bank sees signs in another government controlled bank.

what's it mean for your money? a lot. and the president takes the show on the road. an unfiltered audience on the new american civil war, health care. a major question, how will we pay for it. >> you are absolutely right that i can't cover another 46 million people for free. you're right. i can't do that. >> then, what can you do and what will you do? we're starting to get some more answers tonight. want the real deal with dennis neal? no problem. "cnbc reports" starts right now. good evening. i'm dennis neal. that was a smack in the face on a friday, wasn't it? stocks give up their gains for the week and end up down half a percentage point for the first down week in over a month. an unexpected drop in consumer sentiment drove that little binge of profit taking but i'm not worried. this run ain't done. first of all stocks in the last hour shot up, eliminated half

their losses on the day and, second, consumer sentiment surveys backward looking, guys. frankly, it doesn't matter all that much how we felt in july because we're feeling a whole lot better in august and an even better september looms. i have something else i want to tell you about tonight, though. let's get to it in the real deal. when i was managing editor of "forbes" magazine i coined a favorite phrase of mine, heroes of capitalism and the triumphs and travails. i'm trying out a new segment, the people who push to create new wealth by offering new products and services. they are true american heroes. tonight i want to praise an unlikely candidate. he doesn't really create wealth for investors although he does hold the power it to create wealth or destroy it for the entire economy. this bearded, balding professor came to the rescue of our

country even though that thrust him into a firefight of criticism and second-guessing in congress, on wall street, on main street. you know my hero. fed chairman ben bernanke. this fed head will go down in history, guys, as the savior of our 21st century economy as the person who magically empowered us to avoid a relapse into the great depression. but bernanke's tenure expires at year end and president obama has been assiduously circumspect on whether he wins reappointment. tonight i call on president obama to end the uncertainty, sir, and reappoint ben bernanke immediately. bernanke has earned it. his fearless and unflappable tenure by having to navigate the worst economic crisis in modern history. a "wall street journal" survey of economists finds broad support for letting bernanke keep his job.

wall street hates uncertainty and wall street backs bernanke. so what's the problem? the problem is bernanke was appointed by president george w. bush and president obama might instead appoint a political pal to replace bernanke as chairman of the federal reserve. that pal is lawrence summers, a key white house adviser and the abrasive and high-handed former president of harvard university. now reports are that summers has sparked the ire of white house colleagues for grandstanding in self-interests. i heard summers speak at an economic conference in washington some months ago and this gentleman sounds more like an enemy of capitalism. not a hero of it. message to president obama. spark a fall rally in the stock market by declaring it now. ben is in. bernanke gets a second term as fed chairman. so how would wall street react

it if obama reappointed bernanke now? let's ask our real deal bulls and bears. our bulls, joe miller, chief strategist at wall street capital, bill smeade, ceo, and jay of alcott capital, and our lone bear, al, assistant labor secretary under president reagan. al, let's start with you because you were a white house aide. you kind of know that type of stuff. what do you think the story is on bernanke and will summers get the bid instead just because he's more friendly with the president? >> it will be a great mistake if he did, i'll tell you that right now. i'm a turnaround executive and the golden rule of turnarounds is don't replace a proven producer with an unknown because it usually turns out bad. i'm afraid politics will win out here, dennis. >> politics is going to win out and he'll go with one of his own instead of reappointing a bush guy. miller, what do you say? >> i disagree.

i think he'll keep bernanke. think of all the difficulties that they're dealing with, health care reform right now. if he upsets the cart by putting somebody else in there, no matter what happens, they're going to fill with obama, i think it will be a disaster and he doesn't want that to happen. he'll do the right thing. >> i agree with that, dan. think of the respect paul volcker and warren buffett get from president obama. i really think when he goes to them, the two people that do not have a conflict of interest, when he goes to them be a talks to them about this, he'll get the right advice. >> that would be interesting, wouldn't it? what about you, mark? where do you fall on the bernanke thing? what would wall street do if he does get reappointed? >> the odds are 78%, down from a low of 50%. this is the biggest balloon ever floated. i think it's floated more for the self-satisfaction of larry summers. bernanke should be giving a ticker tape parade at this point. nobody was laughing when the s&p

was at 666 and the dow was at 6,500. now everybody -- let's laugh now that we're at 9,400. this is a trial balloon. he's going to get reappointed. the market will go higher and this is a lot about nothing. >> stop talking when i start talking. al, j.m. here made the point, he thinks that the speculation rising about summers may just be a political stop to summers be a we make him feel good but reappoint bernanke. what do you say? >> i'm sure larry summers' feelings are going to be hurt if he doesn't get the job. he's a very sensitive guy. i'll tell you what i'm worried about and i want to see ben bernanke reappointed, but this is a very political administration. we're putting a health care bill out there in the middle of an economic crisis and basically the thing to drive this administration is politics and the real question that i have is ben bernanke going to play along with the president and the congress' need to not tighten up the money supply as we approach election day?

>> why would you take the greatest student of the great depression off the job right in the middle of the solution? >> a good question there, al. >> and, dennis, we're -- >> makes no sense. >> we're bullish long term but some of the things you mentioned today, you know, the consumer stock sold off a witt. they had been just screaming. it wouldn't be a surprise to us to see in the absence of a firming up of bernanke and also in the fact that we're not quite yet done with the 12-month reset on consumer spending that we could have some trouble if here. there's too many oil bulls and they got hurt today. a lot of people made money on retail stocks in the last six months and they're correcting today. so we could be in for a little bit of corrective action. >> okay. >> that would not -- >> one thought, guys. first of all, i am so tired of hearing that the consumer 70% of the economy, we aren't going to

grow because consumers are going to spend. michael looked at the years in which consumers saved far more than the recent decade in which they did and saved far less and in the years consumers saved far more higher rate of savings, the economy grew faster. gdp grew faster. now to another -- today i believe he had bank of america up in the price target on citigroup. you have one government kind of owned bank up on the price target and another government bank. what do you think, is it all real at all? >> yeah, i think it's real. the thing about it is the banks are actually going to start seeing a comeback, but they have to do their part, get that money into the economy and start lending again. there's still a lot of consumers complaining about that. we'll be fine. >> we don't think -- if you go back and look at the 1989, 1990, 1991, 1992 scenario, after the crisis was over banks finally got back to lending in a more

traditional way. i think the people -- the people that are waiting for banks to lend have miss this had rally since march and they'll probably miss the first two years of the bull market. >> j.m., one thing that occurred to me, if bank of america was willing to recommend citi, maybe the guys are saying it ain't all that bad to have government sitting on our front door. >> today we still have colonial shares go out. bbt took them over. normally on something like that it might be down two, three, 5%. it was one of the better performers. it hung in all day. came back still holding that 14 level. we're watching two things, the financials and we're looking at the furniture index. >> we've got to wrap, guys. it's a friday. go out, toast some martinis. have a great weekend. thank you very much for being with us. >> thank you, thank you. >> okay, guys. now last night for the first time i asked to you e-mail your thoughts to us at

cnbcreports@cnbc.com and i've got to tell you, i am thrilled and humbled by the volume and generosity of your responses. i wish i could answer every last one of you but i don't have a staff so here's a few now. a viewer called himself clayton wrote, i like your show. it is refreshingly different and i think you are doing a great job. just wanted to let you know that you have a fan in the beautiful boondocks of alabama. well, thank you, sir. and this from donna. i just love you and your show. i never miss it. enjoy yourself and keep thinking those good thoughts. very nice, donna. and this one, a key complaint we heard a lot. i love your show, john says, but your real deal panel is nauseating. i just can't stand all those people yelling at the same time. you know what, neither can i, guys. and i promise you, we're going to do something about it. and also tonight at 8:30, do not miss our hot new show options/action. it is the cnbc action.

still more ahead on "cnbc reports." it is the debate that has americans talking like never before, health care. today president obama put himself in the middle of the fight. an unscreened audience had their chance. >> money doesn't grow on trees. >> i think this is a good point and i appreciate the question. a lot of seniors are concerned. >> president obama starting to shed some light on how he plans to pay for health care.

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i predicted friday night some cynical, mean-spirited blogger would trash me. >> hey, all you bloggers in your mom's apartment, dennis is on the warpath. taking on the world's bloggers. whose side are you on? it's the real deal with dennis

kneale. cnbc reports at 8:00 eastern. i just love that promo. so obama in montana, the president taking his rescue plea for his ailing health care plan on the campaign trail today. the questioning was polite but pointed. but this is the obama bite that really stuck in my craw. >> the truth of the matter is we have to get over this notion that somehow we could have something for nothing because that's part of how we got into the deficits and the debt that we're in in the first place. >> okay. so the president says we've got to get over this idea of something for nothing. and it drew applause. then why is it the democrats want to put the cost of overhauling coverage for 300 million americans on the shoulders of just 2 million people in that higher tax

bracket? why is it that 93% of americans won't have to pay any extra taxes at all? aren't they getting something for nothing? come to think of it, why is the boug bottom 40% of americans pay no income taxes at all? shouldn't everyone except the truly poor have to pay at least some federal income tax? i thought we were all in this together. let's get to the real deal squad. an l.a. lawyer and a blogger for the huffington post, michael wolf, founder, noelle and jack berkman are republican strategists out to demonize health care reform and impose euthanasia. let's start with noelle because you're laughing most and you're the brightly colored guest tonight. >> thank you very much. well, you know, look, 47% is the number you need to remember because that's obama's approval rating. and it's dwindling fast, as fast as his health care reform bill.

he's not going to be able to do this. the american people are not fools. we know if this thing passes the way it is, that taxes are going to go through the roof. the deficit is going to go through the roof and the market is going to tumble down. we aren't idiots. we're not falling for it like we did the $787 billion stimulus. >> the good news is you can always count on the democrats tf self-destruct and that's exactly what they're doing. i think obama's fallen faster than any president since richard nixon. i would like to see the numbers from the early '70s. one man in american politics who has no right to talk about personal responsibility to anyone it's barack obama. >> why? >> this from the man who has like thrown $2 trillion down the sewer with things like the auto industry. the one thing he will never, ever have the right to do is talk about personal responsibility for the rest of his life. >> tonya, take it. >> very quickly the notion that the president has had a personal

responsibility is absurd especially vis-a-vis the auto industry. in 2011 gm will come out with an electric car and thank god for that and the interventions that he made. and speaking of taxes, if you're a couple making $400,000, you will pay $500 a year for this health care reform. i'm not saying it's not real money. >> guys, hang on. let's take another moment. i want to show you another spot that struck me where bam was caught in a little bout of double talk. >> we are held hostage at any given moment by health insurance companies. >> why is it you've changed your strategy from talking about health care reform to health insurance reform and decided to vilify the insurance companies? >> my intent is not to vilify insurance companies. if i was vilifying them, what we would be doing would be to say private insurance has no place in the health care market. >> right. i just want to point out the man who asked that question actually

sells health insurance. on the one hand he said they're holding us hostage and then said he's not vilifying insurers. is he or is he is not. >> this is the situation here and the situation with your guests tonight there is only one thing, one area you can touch this guy on and it's his health plan. if he loses the health plan, he's in trouble. but if he doesn't lose the health plan, he goes to the moon. ez the president for life. listen to me. this is not about health care. this is purely about politics. purely about dealing with one of the most popular political figures of our era. nobody cares. listen to me. listen to me, nobody cares about health care. even obama's cool factor ain't going to get him out of this one. >> 50 bucks.

>> one at a time, please. >> a little money on this. a little money on this. let's go. can we make a little side bet? >> bring it on. >> this is not just an attempt by conservatives to discredit obama. many americans, i saw them who care very much about this that are worried about it. >> absolutely. >> but it is true -- >> wait a second. >> i'm sorry, but i have to impose a penalty. you're all talking at the same time. we have to wrap. thanks very much. and, hey, all you dennis bashing bloggers out there, i may have some good news for you coming up tonight. you don't want to miss it even if you're not a blogger, you should stay tuned and e-mail me at cnbcreports@cnbc.com. [ female announcer ] new swiffer wet mopping cloths clean so deep...

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anchor "cnbc reports" for just five nights. i made it four months in a row. now i'm going on vacation for two weeks and they're putting my show on hiatus. so far they promise i'll be back. i sure hope so because as one pal noted i've never seen anyone so happy to be on television. that just drives them crazy, the bitterest realm on earth, i'm a happy and hopeful guy. not the bloggers. here is one post. anyone with any sense at cnbc should get this moron off the air. he says buying stocks because the economy is proving and because you expect a greater moron to buy it from you are two completely different animals. you're missing the point you crazy lab coats. the economy is improving and that's why stocks are headed up. we forget how the things we fret over the most often turn out to be less severe than we had feared. remember y2k? christmas sales were going to

drop huge? remember inflation fears? nothing. not to worry. plenty of boogie men are headed our way. the credit crunch, jobless, the oil prices up, they're going to crimp the economy. i've got time to debunk only one of these in the past 25 years, guys, higher oil prices have never led to a spike in inflation. not once. see? it doesn't have to be all that bad. and it could turn out to be a whole lot better than everyone thinks. i'm back in two minutes with a special message. ñ

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