>> i'm diana olick in washington. the face of foreclosure is changing from subprime to prime, and still setting records. job losses are getting in the way in a big way. >> and speaking of real estate, we're going to take a look at some of the most expensive cities through certain kinds of questions, like how many minutes do you have to work to afford a big mac in the big apple and what is the price of a three-course meal in tokyo? in the next hour, we look at the most expensive places to live on the planet. first, let's get to the market action, the s&p 500 back above 1,000, as financials lead stocks higher. bob pisani kicks it off at the new york stock exchange. >> it's interesting that a number of big financials are passing important technical signals. let me start with aig. the new ceo said he was going to repayment the government debthe- owes them, $180 billion, folks. good he is reaffirming that, but i think there is more of a technical thing going on this is

a short squeeze, not a lot of shares outstanding, i think 134 million. remember they had that 20 to 1 reverse stocks and we talk more about that in the next hour. financials are all doing well, citi passed its moving average, $4.30 now above that. much other stocks have also been rising in the middle of the day in the financial areas. if you're wondering why stocks are up even though the weekly jobless claims number was weak, we had positive data elsewhere with the philly feds, and normally that's not a big market-mover, but traders were impressed with the first positive reading since september, 2008. most important thing, inventory levels are starting to rise a little bit. of that's a good kay tore overall that the economy is definitely hitting some kind of bottom. tradertalk.cnbc.com. scott, how's the nasdaq? >> the nasdaq is definitely off its best levels of the day as most large cap technology stocks have turned mixed now. here is the nasdaq, the picture here is up a half% or so.

google still a standout story. added to goldman's conviction buy list, they say they expect revenue growth to reaccelerate over the next year. they have also you said the price target to 560. apple still positive, as is r.i.m., but microsoft, dell still in down territory. and app down just about 5% or so, gave no estimate for the current quarter. no forecast there. and look at sears holdings down 11%, they reported a loss. and brian shackman, i send it down to you at the nymex. street was looking for a gain, so shares are crushed. >> the story here is nat gas. listen, we're below $3, huge psychological level, near seven-year lows. of a lot of analysts are commenting. talked to addison armstrong and a lot of people in the marketplace have been expecting this. but surprised there wasn't more selling once we reached out to the down side, more of a psychological than a technical weather. and the hot weather in the

northeast tends to be seen as a baiting in the future and the storms not an issue, and that's why it's very bearish on price. . quick look at crude. of high energy trade, choppy, 52 cents right now. i want to take a quick look at the metals. . up in silver, but down in gold and in copper, pretty muted. we'll keep an eye on the nat gas trade. if anything breaks, we'll bring it to you. >> $109 billion of supply, 2 57s, $39 billion 5s and 28 7s, exactly the same supply we had the last time we saw 2s, 5s and 7s. is it making a difference? arguably not. these markets are still running pretty thin. but you see a ten year is up a couple basis points in yield, maybe more because of the rebound in equities from earlier in the session. two-day dollar index gives us a lot of info, as well. we can't get anywhere near yesterday's levels, and we're

now hovering against unchanged, after spending much of today in lightly positive territory. sue, back to you. >> thank you, very much, rick. investors get three key readings on the economy, kind of mixed news today. jobless claims rise, but the latest read on manufacturing coming better than expected. plus, a forward-looking index, measuring the economy's ross protects, rising for a fourth straight month. so what do policy makers make of this? cnbc's steve liesman joins us from jackson hole, wyoming where policy makers are gthed from around the world. >> yes, about 40 bankers are gathered in jackson hole as they do just about every year, going back about 27 years running now. and the title of this conference is financial stability and macro economic policy. but the key issue is obviously the economic crisis. whether or not what the fed has done has worked and where they go from here, where they make the turn. we sat down yesterday, for an exclusive interview with basically our host here, kansas

city fed president tom honak and asked him about the mood from participants. >> i think people are of the opinion that the worst may be behind us, and that we need to be thinking about how we proceed from here. >> and how we proceed from here is essentially the agenda here, guys, where on the jackson hole agenda, they're going to be talking about whether or not what's worked -- what has worked. and i think they're going to say, you know what, we basically have brought the country or brought the world back from the financial brink. secondly, when do you make this turn? a lot of discussion in the hallways about when the fed needs to turn, does the market have it right, kind of pricing it early next year. some discussion that maybe the market may be ahead of where the fed is going to be when it does -- when it's ready to raise rates. also, a concern -- growing concern over deficits. how the fed conducts policy while the treasury is running those huge deficits. and finally, what we call trail talk here. which is bernanke ii. will he be reappointed, if not,

who it is. a lot of people think he should be reappointed, but whether or not the politics work in his favor is a major question. so that's kind of the trail talk here from jackson hole so far. of. >> all right. stay with us, steve, because all of those topics that you just ticked off we're going to talk about now with the chief economist, and mike england, the chief economist at action economics. of welcome, gentlemen. nice to have you here. steve, i'm going to start with you, if i could, because mr. honik thinks we're on the return to a good recovery. but you think there is a good chance of a double dip and we're not out of woods yet, is that correct? >> that is correct. i think the economy is still suffering from a significant amount of wealth depletion, savings depletion, all of which has to be corrected and put on a firm path in terms of correction before the consumers can really lighten up their purse strings and that's the reason you saw such horrible results out of sears and the general results out of retailers for the back to school season have been horrific, and i think we're looking at a very disappointing

christmas season, as well. i'm also worried that a lot of hoopla over the automobile sales, which kind of fell through in terms of the philadelphia fed numbers and empire state numbers out earlier this week are nothing more than sucking in future sales of automobiles into the present, because you've got an incredible discou on them. >> what do you think of instead of continuing claims numbers, a lot of people are pointing to steady decline as one of the reasons they think the recession is ending or over. does that raise the question when we look at the numbers we got today about whether or not we're going to get a double dip? >> yes, it does. the claims numbers in our view should probably be around the 500 area, if market consensus view that we're growing at about a 1.5% clip in the third quarter, moving toward 2 to 2.5% growth next year is correct. we should get the claims numbers down to the 450 area if you think the payrolls will make their way back to zero. so the fact that we seem to be bouncing around the 550 to 580 claim is problematic, and there is noise, of course, but we are

uncomfortable with that number, but encouraged by the philly fed data, empire state data that showing us in july and august the big bounce is having an effect. >> steve, any double dippers in jackson? >> plenty of double dippers in jackson. but what i have found, bill, all of the people talking about double dip, they tend to be those who are in the market, rather than the economists. we're talking last night about this with a bunch of forecasters, and they point out that very few forecasters actually have the double dip built into their forecast. that in general, there is this idea of slow, steady improvement among the economists, where it tends to be the market guys that are thinking, what do we do for tricks next once the government stimulus runs out? >> steve, you know, the other talk that we're bandying about in the newsroom, and obviously it's a comment from the -- steve gave us earlier, is whether or not mr. bernanke should be reappointed. you don't give him all that high a grade. why? and should he be reappointed in your opinion? >> the answer is, i don't think he should be reappointed.

not that i think he has done everything horribly wrong or too dramatically right, but i think we have to get away from this process of too much on individual chairmen and have to start focusing on the committees themselves and the fact that the federal reserve is an institution, not as an individual. and i think ben bernanke would do the fed a favor if he were to step aside at this point in time, let someone else come in to lead the charge to say where we go from here. >> really? why do you give him a c minus -- >> i gave him a c plus, actually. i think what they did in the crisis environment was a little bit too late, and i think they also stayed too much on the tightening side, helped creating the process they got themselves into, because they were really looking for this inflation target which is something that ben bernanke wanted to create when he got into the chairmanship position, and that just was not a good policy target for the federal reserve to take through, and i think that helped create the environment that we brought ourselves into. >> mike, are those enough reasons that we should change the horse in the middle of the race? >> we're happy with bernanke and think he should be reappointed. the way we look at the fed and

grade the chairman is how he works his way through the easing part of the cycle. and i think they have done a very good job of being ahead of other central banks and being creative with quantitative easing. the tough part is the tightening part. if anything, fed hawks, and you may call them the bond vigilantes are a little nervous that bernanke will have a tough time next year tightening the project tree, and i think that's the part we have to grade him on. >> thank you, gentlemen, very much. and steve, looking forward to tonight, very much. all right? because we want to -- >> great show. >> i know it is. it sure is. programming note. don't miss steve's one-hour special. it is live from jackson hole. the fed, crisis recovery. 8:00 p.m. eastern time, only here on cnbc. >> and it will still be light out, right? >> it will be beautiful. >> it really does look amazing. >> especially on the travel channel too from jackson. gorgeous there. we want to hear from you folks, as well on this question that we have been posing, whether or not ben bernanke should be reappointed as the chairman of the federal reserve board.

e-mail us your thoughts, up or down. we have heard from plenty of you. patty says, yes, he has had his trial by fire, once burned, twice careful. she thinks he'll be much stronger and observant in the future. jay, on the other hand, says after the bernanke and paulson conjob, no way can they be trusted anymore. the fed needs a major shake-up now. we would love to hear from you, and we'll be sprinkling some more e-mail throughout the day's program. when we come back, though, more on the markets. and we began with a big selloff. then the bulls did fight back. it's been high drama on low volume this week. what does it mean for your money? we'll ask the task force, coming up. >> also this hour, tough times for eddy lampert. his big bet on sears, not exactly what he had hoped for. much we'll look at what's next for the hedge fund titan. plus, the white house set to trim its deficit forecast. is this a sign that obama-nomics is working? >> and get ready for the "fast money" halftime report in a half hour. "power lunch" is back in two minutes.

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getting word now of a new age discrimination suit against at&t, the equal employment commission citing an at&t policy that prohibited workers over 40 to retire under various retirement and severance plans. the shares of at&t not moving

much now. >> let's get to the markets. again, another day where the bulls have the upper hand, but only by a slight amount, and again on low volume. it is august. let's bring our task force in. j.j. burns with us, as is vice president of mf global in chicago. j.j., i gather you want to take some profits off these tables here, don't you? >> yeah, we have been very careful to retrench a bit, in the stock side, and reallocate away from stocks. we have always had for most of this year, bill, a very low balance of our portfolios in stock so we benefited by gaining exposure to investment grades, and sitting back and collecting high coupons on those high yields. >> missed out on a pretty good rally, though. >> not really, bill. because what's happened is, the spreads that have narrowed on corporates and high yield has benefited. in addition, we're seeing 14, 15% coupon returns. so we have actually been right

along with this rally, and in some cases, neck and neck with our portfolios. >> a lot of people point out all of the drama over the last week has been on low volume. does that make it less valuable when we don't have as many participants? >> i think at some point yes, it does. the fact that volumes are low, and we aren't seeing a lot of the mass buying or hedge fund black box type buying does suggest that maybe the market is moving a little bit because the bigger muscles are flexing and pushing the market higher. i think a more surprisingly that treasury yields, especially in the ten-year are hovering around 3.5%, and while the stock market has traded well off the lows from earlier this week, the ten-year has been resiliently stubbo stubborn, suggesting there is risk still being priced out there and that is one of the reasons the stocks are low. >> the other day, people were pointing to the set backs that the chinese markets have been taking lately and saying that is significant. do you agree with that? because we have seen our market

be able to rally in the face of that kind of turmoil. but you're looking at china with kind of a skeptical eye. >> yeah. i do think that it is significant, and i think that we need to look more outside of the country to see that. there's just very, very anemic growth that's forward-looking. and i think that the head winds on stocks are catching up. to todd's point, i think there is a great point he brought up. actually starting to see now that corporate spreads are widening a little bit. we have seen that narrowing. so we can actually see, as much as we are in favor of owning some corporate bonds and investment grades, i think we could actually see a little pullback here, because the spread is widening a bit. >> yeah, we're looking at the -- mark haines brought up, i think it was the one-month or one-year yield, and it's been steadily declining. doesn't that suggest that people are getting more and more risk averse here? >> well, risk averse is probably -- they have already -- they have been risk-averse since the whole crisis began. and i think we did start to see a little bit of that thaw out. but with a very steep yield

curve, you're going to continue to see the duck and cover mentality, where let's put our money in the short-term instruments. >> i guess i'm getting really narrow here. in the last week, you have definitely seen a decline in the short end, right? what does that tell you that people are thinking? >> like you said, it's a low-volume environment, summer environment. if you're running a trading desk and want to take off a couple weeks, tell these guys to put some money to work in the shorter term so when you come back in the first of september, you can pick up the ball and start running again. >> hey, guys, i.t. bills back in a couple weeks. >> babysitting, basically. >> it is. >> thanks for joining us again. >> the return of your money. coming up next, sears misses by a mile, reporting much bigger than expected loss, and analysts pointing at chairman and former hedge fund hot shot, eddie lampert. has he become not so steady eddy. >> and year-to-date, still, like many retailers, up 70% year-to-date, even though they're getting clocked today, down by 11%, off 8 bucks to

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here's some of the most widely-clicked stocks on cnbc.com. cit group, apple, sirius xm, alcoa and is he rerch research in motion. >> sears surprising investors by posting a big loss. cnbc's mary thompson joins us with some of the details on that. hi, mary. >> hey, sue, continued cost cutting failing to offset weak sales of high-profit items like appliances at its sears outlets. in the means, apparel sales were soft at kmart. excluding charges for store closing and pension costs, sears reports an unexpected loss of 17 cents a share. revenue dropping 8% to a slightly less than expected 10 points, total same store sales falling 8.6%. analyst gary bahlter rates the stock. >> when you look at sears as a company, it's losing with both of its major divisions, market share every quarter just started before the slow down, and it's

hard to see how it's going to change, given they keep on cutting service levels. >> he says, sears, kenmore appliances and craftsman tools are losing to lowe's. meanwhile, kmart is hampered by prices that bahlter says are 20% higher than its rivals, walmart and target. >> for years, eddy lampert was considered one of the best hedge fund managers of all time, and the first to ever earn a billion dolla dollars in a single year. and in 2004, he was hailed the next warren buffett. how times have changed. david faber joins us now. you never want to be on the cover of -- "business week." >> you think about the motivation for buying sears and kmart, around the same time, as well. the belief was, he wasn't buying retail, he was buying real estate. >> that's right. >> right. >> that blew up on him. and retail has blown up on him. you've got to be careful what

your motivations are. >> you do. of the kmart acquisition out of bankruptcy still a good one. even in retrospect now, even with all of the underperformance. but nonetheless, as you say, in those early years after that deal, he was widely held as a -- as -- >> what does he know that we don't, you know? >> cause of the incredible -- it would seem the incredible ability to increase the overall returns as a result of selling all of the real estate associated with sears. the stores they were not using. >> it's going to look like i'm kissing bosses' butt. but you know what we mean. >> easy for you to say. >> remember jeff immelt was on one morning during the equity boom saying this is a great time for financial advisors to get in there. but in the end, can they operate these companies, and isn't eddy lampert a financial engineer? he's not a financial operator. are we going to see this over and over again, these guys stuck with these things that they were

able to dump later on and now they have to run the business. >> many people have questioned his ability to run the retailer. they right now have an interim ceo. and there has been a lot of questions about the strategy. you heard the analyst ma mary used in her piece in terms of a lack of reinvestment, cutting costs. ultimately, he said we're not against shrinking revenue, we want to increase profitability. but when you continue to lose market share -- >> exactly, and it's the breadth of the losses in this latest report, basically every category. >> it's not just sears and kmart has saying that lampert lost its touch. it was citigroup at much higher levels. in fact, i believe as high as $50 a share, investments in the likes of cit holdings and sale may. so many of these have lost value. home depot. he did reduce holdings in home

depot. his 13f was out late last week, and that was the one position that was dropped, fairly significantly. otherwise he is hanging in there. large, huge positions on autonation, auto zone, and, of course, the 65-plus million share positions in sears. >> yikes. >> he doesn't talk. he doesn't share. when i speak -- >> well, he doesn't have to. >> in the hair times i'll occasionally speak with him, he is obviously extraordinarily bright and gifted. >> is he nervous about the whole -- wasn't there an issue with safety at one point? >> yeah. >> kidnapped, right? >> i wouldn't want to talk either. >> he has always been historically very quiet. doesn't share and talk. so he doesn't ask anybody else their opinion. >> all he needs is one home run and he'll be back in the game again, right? that's usually how it works. he'll be back. thanks, david. >> the white house is trimming its forecast for the 2009 federal deficit by over $260 billion. is that a sign that obama-nomics is working? sparks are going to fly in our

"power grid" debate up next. >> they will, as well at 12:45 eastern when we get ready for the "fast money" halftime report, melissa. >> phil, as you know, financials of course leading the chart, aig one of biggest gainers. is there anything behind the move higher today, or is this is a short squeeze? we'll pick apart that trade. and we will head to the charts and see what the technicals say about the next direction for this stock. all that and more on the halftime report. but first, more "power lunch" right after this. of some people buy a car based on the deal they get. others by the car of their dreams. during the lexus golden opportunity sales event, you can do both. special lease offers now available on the 2009 is 250. special lease offers now available this might not be the best time to sell a home. but we just can't wait for the market to heat up. (woman) need to sell? re/max agents have the experience

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welcome back to "power lunch." still the catch-up team managed to beat analysts' estimates and stands by its sales outlook for the rest of the year. earnings at hormel foods surging almost 50% from a year ago, comfortably topping expectations. the maker of spam sticking with its profit outlook. dick's sporting goods reporting a slight profit earnings, but the stock up.

>> the white house is getting ready to announce a slightly better than expected report on the federal deficit. is this a sign that president obama's economic policies are working, or is it just a drop in the bucket? firing off in the "power grid" debate, julian epstein and trent duffy. the reason this is going down is $250 billion set aside for the banks they don't think they have to use. julian, is this a sign that obama-nomics is working? >> i think there is no question about it. i think obama inherited the great recession and negative 6% gdp growth, where now, according to most economists into positive growth. and all economic indicators indicating that the economy is improving, and nearly every economists, the consensus of e theists is the stimulus put program is working. >> trent? he did it in 15 seconds. >> i have a slightly different view. the real picture on the deficit, it will be far wars, and i'll

tell you why. the employment numbers the white house used to generate are well underforecast and they have to revise those to under 10% which will expand the ten-year deficit as julian well nose. the economic stimulus plan hasn't been spent yet, so hasn't worked to any effect so i don't think this is a great sign. i hope it's a sign that things are getting better. looks like it is. but i don't think it's a sign of the economic stimulus plan, but any stretch of the imagination. >> there's a couple problems with that. first of all, the economic stimulus plan is working. the $500 billion in spending, $200 billion has been committed. that's 40% that's been commitsed. $50 billion are in the pockets of people in terms of tax cuts. >> as the white house said -- >> i didn't interrupt you. >> all right. >> nearly every single economist, if you look at all of the wall street analysts, whether it's moody's, whether it is jpmorgan on down the line, every economic analyst is saying that the stimulus is the single factor that has taken us from the great recession into what we now think is the end of the recession. >> not citing monetary policy?

>> yeah, monetary policy, the t.a.r.p., which i credit the obama administration for doing. i don't think you can pin this all on the economic recovery. as you said, a small fraction has even entered the economy and the white house says a large portion will be out next year. we're talking about today -- >> trent, hold on. trent? >> close to 50% of the money. of. >> the fact is, the reason the deficit -- they're able to reduce the estimate is $250 billion they had set aside for the banks. they don't have to give it to the banks. isn't that a good sign, the financial system doesn't need it? >> no, i think it is a good sign. let's remember how washington works. i'm sure they asked for more than they thought they would need and when trying to estimate what you might need in terms of fiscal crisis, you don't know. we were fumbling for the keys in the dark over here. but i think it's good. and another thing, maybe when the banks saw what they had to do to get the funds, they probably thought twice about asking for it. >> i think republicans would do a lot better off if they would give obama some credit. >> i did. >> he inherited the worst

economy that we have had since the great depression. where, as i said, nearly every single economist is saying that we've gone from negative growth, now into probably positive growth. the stock market has rebounded, business investment has started to rebound. everything other than jobs, which is a lagging indicator, is showing the signs are going in the right direction. and yet -- >> all right, guys. >> monetary policy had something to do with it, and the stimulus had a lot to do with it. >> thanks, guys. good discussion. julian, trent, see you later. >> we will take a break, and german officials raiding porsche's headquarters. more on that. >> and where is the most expensive place in the world to live? we'll tell you where it is, and why. of we're back in a flash.  carol, when you replaced casual friday with nordic tuesday, was it really for fun, or to save money on heat? why?

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an interesting development in europe. in the automotive industry, german prosecutors have raided the headquarters of porsche as possible manipulation of volkswagen shares. guy johnson is in london with the latest. guy? >> a bit background. these two companies have effectively merged over the last

week, week and a half, and it's always been an acrimonious process and today it got even more acrimoniouacrimonious. two investigations playing place here, the first one into porsche, and possible leaks of very sensitive information from porsche, as a result of porsche's attempt to take over vw, which ultimately ended up failing. that's why porsche's headquarters were raided in southern germany today. the second investigation relates to, well, you can see it here, this incredible decline we have seen in the value of volkswagen, which is europe's largest car maker over the last few days. the stock up until then recently stable. but it's dropped, and most in the last few days by nearly 40%. now, you remember the history of this, remember, as well, that we saw a massive short squeeze that really floored a whole load of hedge funds a while back. the german regulator is extremely nervous about that happening again. once again, investigating what is happening here.

so two separate investigations for this story, bill. it just continues to throw out surprises. my sense is, we're not done just yet. back over to you. >> all right. >> guy, this is a case that involved one of the major industrialists in europe actually committing suicide, right? was he caught in that short squeeze? do i remember this correctly? >> are that was right. he was ultimately caught up in the fallout from that story. he was a huge investor, and as -- you are right. it ended up sadly resulting in his death. so, yeah, that was the short squeeze that happened before, and people are extremely nervous that's going to happen again. >> another twist in the story. thanks, guy johnson, very much there in london. to the question of the day, should ben bernanke be reappointed as chairman of the federal reserve board. e-mail us your thoughts yes or no to power lunch at cnbc.com. the dye vergence of opinion is breath taking. frank says bernanke should be reported and hailed as a national hero. the man is brilliant and a great communicator, and works diligently and has the patience of job. and then there is the view from

v. who says bernanke, paulson, geithner and many others should be held accountable for their crimes against all-american taxpayers, put them in jail and get our money back. >> wow! >> we'll show you more of these as we proceed here. >> still ahead, the most powerful call cracking down on fans who post their own game video on websites. the first shot in a war on social media. >> and when we come back, aig stock is soaring. is the move for real, though, or is it just a short squeeze? melissa and the gang with answers on the "fast money" halftime report. we'll see you back at the top of the hour. stay tuned. more and more actis are turning to fidelity for a smarter way to trade online. only fidelity lets you back-test your strategies against an entire portfolio of stocks. plus you'll get advanced, customizable trading platforms. and you get the kind of execution you'd expect from fidelity... ...with a dedicated specialist

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welcome to the "fast money" halftime report, we're getting to the heart of the action as it is happening. the bulls holding the line today, betting on economic recovery. the banks feeling the gains. you will not believe who is leading the pack. we have your trade. but first, to the word on the  street. our "fast money" crew, jon that jar an and jar add levi and patricia edwards of storehouse partners. patty, the filly fed data was positive, great for the markets. and now bank of america and merrill lynch says perhaps an ism reading of more than 50 in september. are you positively bias when it comes to this market? >> i don't want to get in the way of the thing.

we probably have another dip coming but i have to admit i covered my short and am an the sideline. >> we have this debate a lot. you don't want to trade the market you have, but it's hard to get behind this market full force. of. >> well, i tell you what, it's a lot easier to get behind it after a significant 20-plus percent correction in china. because that's what we have had. three of the last eight days china moved to the down side by better than 4%. it recovers by 4.5% today. if the worst is over for china, which i believe it is, i think we could be seeing a pretty significant rally into the fall, and we're already sensing that feeling right now from the way the markets reacting even against the saelloffs, this wee. >> i love the comments about china. china is still there, and that's going to increase. and again what we're seeing a lot is people taking these bets. jon is probably seeing it, too. a lot of lottery tickets being bought. but i think the overall look is

bullish for the long-term. i do believe we retrace a little from here. >> china is obvious a concern for the markets but greg, how would you stack that up? i don't know if you have gotten a chance to take aok at the charts of the shanghai. of i would imagine a 5% move up or down on shanghai in particular is not uncommon. >> it's not uncommon, melissa, but i will tell you, make no mistake about it, the u.s. markets do not lead. when we made a new low last march in the u.s. markets, the international markets did not. so, yeah, that kind of volatility is normal. but just understand, the u.s. is not leading. we will follow. >> all right. let's quickly bring in the ambassador, tim seymour on the fast line right now, everything abroad expert. >> but not a resident in shanghai right now, melissa. >> exactly. tim, you heard the discussion here. we had a very heated one on the desk right now. what's the play, what's the ancillary play? do you think the worst for china when it comes to the pullback is over at this point? >> we should not be letting the

shanghai drive our market here. we should be letting china economic growth be a dictator watch the pmi at the end of the month. merrill lynch and morgan stanley came in and said there will be earnings upgrades. you know, the ipo of the china construction, which was a $7.3 billion ipo earlier, last week, sucked a lot of liquidity out of the market. so technical factors had a lot to do with some of this move down. and that earnings will be good. i think china has got fallen apart. i can this market was overheighted, i don't think it's cheap, and i don't think we should be driving a lot of our commentary off of it, quite honestly. >> what's the best play off china? you were got exposed to the china market, really whatsoever at this point in terms of pure china companies, where would you go? >> well, i think the insurance companies are actually still doing quite well. i think china life is growing, not only their revenue base, but growing their customer base. i do think china mobile is a great place to continue to see growth in 3g rollout, and all of that is related to the consumer.

>> got it. tim, see you tonight on the desk. tim seymour, the ambassador on the best china play. speaking of insurers, aig up more than 20% today. the firm's new ceo saying he will not sell any of the company's units, unless it gets fair value for them. he will not be rushed, in other words, into dumping assets. this is according to the transcript scripts of a town hall style meeting today. jerad levy, you see this move in aig and you think short squeeze. >> well, yeah. first of all, sherlock homes couldn't find shares of aig right now. you can't short the stock. this is interesting data. back on the tent, the stock hit its most recent high before today of 29.98. six days later, which is the new rule for market makers to cover, stock starts to bid up. in fact, it is up over 35 or 45% in the past two or three days. i believe it's a short squeeze, and don't forget, the ceo of bear stearns came out before the drop and said everything is

okay. i think you've got to be careful if your retail investors -- we have seen the options markets, that most retail investors don't see. it's a very dangerous stock to play, if you don't understand. >> in terms of the options doctor, j., if you can't find o can't find the short to borrow, if you are so inclined to play aig. >> if you are seeing that, people buy put options and the puts are bid up extraordinarily so as far as volatility and the skew between the call. there is a direct relationship when you can't borrow the stock, the put goes up higher than does the call that. being out of line means people are continuing to be squeezed until it comes back in line. the stock trades higher. >> we are seeing the whole financial sector going gangbusters. the big names are moving also. jpmorgan and goldman sachs. what do you see in terms of financials? >> the financials will follow

the broad market. we have resistance from two weeks ago and i'm not willing to buy in at this level unless i see a break out above the resistance we had. i'm happy and don't normally do this. i'm happy to chase. i want confirmation. >> let's move on. the mixed bag and more than 1111% after missing earnings. dick's sporting goods soaring and raising the full year outlook. based on the smathering of retail news, can we draw conclusions as to what might make good plays going forward? >> we have to look for the best operators out there. not in that camp. what we are seeing is the hard line portion is joining the softer side. they have not been the best operators out there. beyond that, you look at dick's and we have seen fabulous sales on things like fleece. people are unemployed and still

doing sports. it's a way to bring yourself back to your roots. believe it or not, i believe dick's and things like that are expanding. sears i would stay away from. what i want to focus on is things like buckle. i love the revenue and the earnings and they are right not sweet spot and running about 70%. the research is name brand and they are supplementing the private label and that's the type you want on here. >> we're have a quick programming note. time for the fast and furious. let's go around the horn. home builders are higher. >> on the home builder space, you lay back and let them come back. the stocks have been outperforming for about the last month and a half. >> the day after the five-listing anniversary. google with goldman sachs.

>> i loved it yesterday, but today i would be selling the 460 calls to protect my long stock position. i like google long-term. >> i think you are staying away from now? >> i'm flood right now. we will chase it if we breakthrough the highs of two weeks ago. >> after the bell today, do you buy ahead of the earnings? >> love the operations and love what they are doing in the stores and love the turn around and the stock, but i would wait and see how they report. >> do not miss a special fast money sports edition. we have an interview with the interview of dick's sporting goods and legendary nfl great taking to us about vick's video games. the college football begins tracking down on fan who is post footage of games on line. is this the first shot on the war on social media. we continue after this break. >> are you ready for fast money? we have your touchdown trades

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we have breaking news. welcome back. bricking news that is moving the financials the bkx, the "wall street journal" is reporting that the fda will be voting on the private equity proposal next week. the private equity proposal looking to soften the rule that would curb from investing in banks. the flip side is that it will require a higher tier one capital which is three times what other banks have and

prevent them from selling the banks. there restriction that is the goal is to get the capital that exists into where the capital is needed into some of these smaller banks. what impact do you think this is? i see a positive reaction in the banking sector. >> you could continue to see that and just look at bb and t did when they stole colony because colony was in trouble. i'm not saying this would have saved colony. >> colonial. >> colonial. i'm sorry. the banks would love to pick up the smaller guys for pennies on the dollar. this means they might not be able to if they wait. you might see quick deals done before this vote even. once the vote happens, private equity will be moving quickly. >> the "power lunch" will keep you updated on any developments, but it is time to call the close. do you buy or sell?

kick it off. >> about 1,000 and they do not close and look like they are moving lower. >> greg? >> seller. >> patty. >> off to the side. >> aggressive buyer into the bell. >> that are does it for us on a special fast money tonight, don't miss dick's sporting goods and john madden. dick's, video games and all other things that do not start with a v. how many hours must you work to afford a studio in hong kong. "power lunch." >> thank you, melissa. social media companies under attack and who is viewing them as a major threat and why. more of your e-mail answers to our questions should ben bernanke return as fed chief. back in a moment.

>> at&t is being sued to not rehire, workers who retire from the company. recalling 13,500 vehicles with the so-called dsg transmission. vw said some may have a faulty temperature sensor. they will follow the debt next week, about the same amount as two year, five year and 10-year notes. i'm courtney reagan. >> steady as she goes. both the stock market and "power lunch." we will come back to the second hour. stocks have been aiming for a third straight up day. the dow, nasdaq and the s&p move up for the month of august. general electric and bank of america and disney all helping to lead the dow higher.

>> google is also one of today's gainers thanks to news of an upgrade from goldman sachs. why are they making such a call when the stock is up about 50% this year. >> i'm michelle caruso cabrera. what are the most expensive places to live in the world? it's all part of a new study. we will break out the list. let's get to mary thompson for breaking news at this hour. >> that's right, michelle. we have the "wall street journal" reporting that the fdic is expected to soften the stance investing in failed banks. you may recall that the fdic proposed that if an equity firm goes in a failed bank, they maintain their investment for years and in addition being a source of funds for the bank in the event they need additional capital down the road. again the "wall street journal" is saying when the fdic votes on the proposals, they will be somewhat softer in large part because so many people complained that these would

restrict private equity firms from coming in and providing money that is much-needed in the banking sector that remains troubled at this time. this come for example the "wall street journal" today. back to you. >> the fdic was in a pickle. the major banks were maxed out at 10% of deposits and the financial sector needs more investments. >> private equity was looking for that. >> for had been demonized because of the leverage that existed out there at that point. they feel like conditions have come back enough that they can allow them back in the water. fewer restrictions. more detail when is we get more details. mary thompson, the southeastern conference is launching an attack on fan coverage of games raising a slew of questions about the future of media coverage at a time when anyone with an i phone can be a citizen journalist. julia?x >> reporter: the southeastern x conference is trying to protect the deals with media companies

and sees it as a major rule. any time of realtime event coverage including blogs, photos or video. targeting newspapers and supported a subscription as fan blogs and it is all about the money. the southeastern conference has 15-year broadcasts dealing with espn worth more than $3 billion. he is looking to market the online video archive this fall. >> there serious legal issues raised when leagues and particularly leagues that involve publicly-funded teams like public high schools and thx like that put severe limits on news gatherings on which are otherwise public events.x >> every year they rule journalists. a few years ago, major league

baseball wants to restrict the number of games that can be used on other sites.x they go far beyond that and thex restrictions are impossible to pollute and be there to push x back from skpoeshl traditional media as well as bloggers and fans. this is going to be an ongoing issue and i would be surprised if we didn't do the litigation. >> thank you, julia. stay there. let's bring in darren who has an opinion on this. john is the bureau chief at wire.com and is a regular. this is another case of technology leading the way. they got ahead of rules and society. more like organizers are behind technology. the older definitions don't work anymore. it doesn't make sense. i agree that they have relented

with personal use, this is not the end at all. >> how would you enforce it? >> from my standpoint here, this is a nonissue to most bloggers. why? if you are one of the best bloggers and you generate revenue, do you think you are pulling out your flip cam on the most important play and post together to the site? no. if you happen to be in the stands and you are a blogger and you get a lot of hits, you are watching that so you can give great post-game analysis. most bloggers who are generating revenue with the big fans, do you know where they are? on the couch at home. maybe next year the other sec will go after what you can do on your couch. this is not that relevant to the people that are really in the stands of fans, but are really business men. it could be a moot point. >> there going to be events that will prohibit the use for

whatever reason. i was telling the gang, we went to the "american idol" live concert a few weeks ago and i was astounded at the number of young people bringing out digital cameras who were videotaping the event as it's happen and send together to friends. technology ats it best, but does it take away from profitability? >> there is a line here. most enlightened owners of concerts and sporting events realize that there is a viral marketing nature to your fans sharing with their fans. their friends and family and things that happen. in my opinion, it only tends to enhance the value of the so-called mainstream coverage. >> what we see as stealing, some others may feel is good marketing. >> it could be a great x promotion. maybe they are videotaping at x the "american idol" concert may

get other people to tune in to x watch next time.x there is a slippery slope. maybe with twitter, from a football game, whether people can put ads on their tweets and build up an ad base and get paid if enough people follow tweets. we have this every decade. bruce springsteen didn't like people recording his stuff. it never ends. it's ridiculous. >> here's an example. we remember susan boyle on britain's most talented show. do you think simon cowell recented the fact that that video got 100 million views. even though they didn't monitize it, it was tremendous publicity. you tube is a pioneer in the space where you can upload copyrighted material and the owner gets money for it. again, the technology is way ahead or owners of content are

behind. >> no one will say this, but it am cans down to quality. if it's your cell phone and you put it on the web and it's not the greatest quality, it doesn't give you an extra camera angle that you happen to not see who paid $2 billion. it comes down to quality. if you are reading and you can't take photographs of the game that you can sell. you are not going to sell a grainy photograph. at the end of the day, it comes down to quality, though they don't say that. >> last friend to julia.x >> the technology is there and people are use together and you won't be able to stop people from sharing their experiences of the games whether videos or x photos.x it's a question of how they decide to deal with that. the technology has been adopted and it's hard to go backwards. >> see you later. john, as always, see you soon. >> see you later. >> thank you for the warning. >> the question we have been

asking you folks, should ben bernanke be reappointed from the board and meeting in jackson hole, wi ohm to discuss things economic. we are asking the wrong question. the real question is whom do you replace him with? it looks like larry summers. i say rea point bernanke and then joe who said you should be asking if ben will allow obama to remain as president. >> i don't get it. >> his monetary policy makes the economy look better. that would be the other way around. >> that leads to plitization of the fed. >> we will taung more about the markets and round up the all-stars and take the pulse of the market. >> what are the world's most expensive cities to live?

n? why goldman sacks is updating google after a big move already. >> a big question for the into mercial industry following billy mays' death. how do you keep a brand strong?

one out of every $15 the state spends is on -- the state

can't afford it. that is a great idea. we will talk to the incoming ceo of america. in this environment the white house wants to control every aspect of the economy. >> look at that stock. >> 45% year to date. >> let's get to the market reporters. >> down at the new york stock exchange. we will see if the markets can hold on to the gain today. >> days in a row and a lot of them are up. we started down. all three days and the markets moved up in the middle of the day. take a look at aig and most traders think this is largely unanalyzable. it's the second we have seen in a short period. they were going to repay the money they oh, the government. never mind most people are not aware of where they will get the money from.

they will sell them, but only 134 million shares out standing and the reverse stock split. it will trade the entire float in a single day. this is a pesry for disaster if you are short in the market. >> that's all you need to know right now. trader talk at cnbc.com. how is the nasdaq? >> holding on to the gain. doing fairly well and it's a google story. added to the conviction, the price target moved up to 560 on improving revenue growth prospec prospects. 3.5% and apple is up and research in motion, 2.5% as well. look at net ap. they no forecast and the stock is just getting hammered, down 4.5%. they announced a new coo who gets a promotion.

sears holdings down and they reported a loss. as you know, that's not a good combination for a stock. if the street is looking for a gain and you report a loss. >> it's about as logical as r whattee see on the fixed next markets. if you look at the futures, you can see they have a 10-point range and pretty much trading at 1003. they are in the top part of that range. but take a look at the yields on the 30-year bonds. they are virtually at the lows of the day, meaning the high r price. this is not the relationship we have been looking at for the slow days in the summer.r usually when stocks get r traction, yields go up and r considering we have supply.r 109 billion none the less and goes to show for the moment there is just an upside somewhat prevalent in the fixed income markets and may persist through the end of the month. >> thank you very much.

rick santelli back to roberto with this week's cnbc 101. >> thank you, michelle. look at the et f101. remember the cftc is looking to adopt certain positions for the futures market. look what happened with the natural gas fund. a lot of talk about the etf community. this is the natural gas fund. they go out and buy futures here. they are designed to track natural gas prices. the problem is there is a large tracking error development. look at the last two weeks. the bottom line is the unc. the cause of this is that the underlying fund is not issuing new shares even though there is a great demand for it. they are worried about the cftc and posing the limit. that's a big issue right now. these investigations are starting to affect the world of

etf and exchange trade. deutsch bank halted issuance of the double long crude oil and exchange traded notes. not clear why, but the suspicion is the similar concerns over regulatory issues. i will let you know when we get more information. >> look guard to that. hurricane bill weakened to a category three storm, but the watch is on to see if it regains power and which path it will take. nick walker joins us with the latest. i had again, nick. >> you are right. it is weaker than yesterday, but very powerful. a category three hurricane, a major hurricane, 120 miles an hour winds in the center. as it continues to move away from puerto rico and the leeward islands, they should subside a bit, but taking a turn towards the north and making the closest pass to the united states just off of cape cod. we will find hurricane-force

winds from a weakened bill in the maritimes and bermuda is under a hurricane watch for hurricane force winds within the next 36 hours. what we are going have on the coast are increasing waves. to eight-foot waves by friday evening. 15 to 20-foot waves in bermuda and increasing big time into saturday. 30 to 40-foot waves and the waves increase into sunday along the new england coast. definitely not going to be a weekend you want to get near the water. fishermen need to stay away and swimmers stay onshore. official? >> thanks for the warning. up next, a slight dip in foreclosures. what is behind the move? the market is finally stabilizing. >> we will tell you why housing makes one city the most expensive place in the world to live. while we are talking foreclosures, here's how the shares of the home builders are

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when you open an account. for 30 days plus get $100 cash ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions... we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. why is dick butkus here? i hired him to speak. a lot of fortune 500 companies use him. but-- i'm your only employee. we're gonna start using fedex to ship globally-- that means billions of potential customers. we're gonna be huge. good morning! you know business is a lot like football... i just don't understand... i'm sorry dick butkus.

(announcer) we understand. you want to grow internationally. fedex express again, a pretty good game here. patterson companies, virgin media and google which goadman sacks said it loves still. a housing report has a slight dip in foreclosures. from washington to make sense of it all. hi, diana. >> that dip starts in new foreclosures that were flat, down .01 percentage points due

to a big foreclosure in illinois and the government modification program kicking into gear and slowing down the process. that said, there was a big change in q2 in the types of troubled loans going from subprimes to prime. >> i think foreclosures will continue to increase for the prime side and we may see continuing flattening and further moderation on the subprime and they may continue to offset, but overall an ongoing increase in the foreclosure starts number. probably through next year. >> the total loan delink wens to over 13%, but look at prime. the percentage of prime fixed rate loans rode to 5.23%. really spiking just in the past quarter. that as opposed to subprime. they showed the most dramatic crash, but levelled off in the past quarter.

even that improvement may not help the overall recovery. >> i don't see recoverings until we see unemployment drop. that's a year away and we have a continuing supply of housing coming into to the market because we have elevated other sources. the option arms and et cetera, it is a problem that will be with us. >> important aas to note that the usual suspect states are still the ones dominating the foreclosure numbers. california, florida, arizona, and nevada accounting for 44% of all foreclosures. >> diana, stay there and add another voice to the discussion. >> it's far from being over and this report confirms that. there is a lot of mortgages that are first turning delinquent and

with an end to the foreclosure process and entered the market and will add to the oversupply of homes for sale. i think this is a concern and an hour, it is reason we don't think we have seen a bottom yet until foreclosures peak. that is likely going to happen in the second half of next year. >> what does that mean to the overall economy? does that not get better until housing does or can that move independently and we see a rebound in gdp snrks. >> you can even if you have a decline in home prices. we think that home construction is. the bottom will depress some of the upside for potential construction. we still think we will get see it turn from a big decline and a negative contribution to growth to a positive. that will help support growth.

there so many other factors that fuel momentum and help us grow. what's the mind set as we see the foreclosures continue to keep pace here. do you sense that they are willing to take the risk and start building more again or are they going to take a wait and see attitude? >> we have seen that with the bet he is taking and we talked to them and they don't see themselves competing. a lot of new home constructions were built and never did get sold. home builders have to think about the future and what happens and it does recover. there is pent up supply and demand out there. will they have the supply to meet it.

we have to come down in areas and there is floated supply and they need to build more homes that may be coming a year from now. >> thank you very much. >> we appreciate it. according it a new study by ubs, the big apple is the most expensive place in the world to live. rent is a big part of that. if you take out rental costs, it falls to 6th on the list. >> if you live in a box? >> you live in a box. >> the most expensive public transport is in stockholm. they measured this, this is interesting. how many hours do you need to work to buy a big mac based on the cost of living. the least work for a big mac is in chicago and tokyo and in toronto. the most work is in nairobi,

kenya. i wonder how many big macs they have. it all comes down to real estate, doesn't it? >> it always does. you look at rental rates? new york and they are always high. my first apartment was out of control. rentals are coming down a little bit thanks to the housing. we see so many more properties on the market. condos and condo conversions that were overbuilt in the housing boom. you are beginning to see more competition and we saw a story about what the rental agents are willing to give now. willing to lower prices without asking. i'm not saying they are coming down to normal, but there is good news in the manhattan market on rentals. >> we should point out that $3,100 a month is average for one bedroom. that's 650 square feet. >> you open the door and you think it's a closet, but it's the kitchen. >> or the bedroom.

>> second most expensive is dubai. 2160 a month. when you take out rent, it's oz low. when you factor out rents. oz low is the most expensive. >> or electricity, who knows. steve willy wae in not only on the market, but i'm interested to get this on bernanke. >> i think i know the answer. we will ask him anyway. shares are trading higher after a big upgrade by goldman sachs. why now? it's years on the market and had a spectacular rise. what's going on and whether you tube is finally making a difference there as well. >> what are is a conviction buy? tdd#: 1-800-345-2550 if i'm breathing, i'm thinking about trading. tdd#: 1-800-345-2550 i always have my eye out for a stock on the move. tdd#: 1-800-345-2550 doesn't matter if a company sells computer chips

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welcome back to "power lunch." here are the stories we are following. a mixed bag of economic data. the leading indicators are showing improvement, but jobless claims are still rising. shares of sears are getting hammered after the retailer swung to a big loss.

rio pinno posting a big drop and said there signs the worst may be over. let's go to hampton. >> hi, michelle. we are awaiting the appearance this hour of treasury secretary tim geithner from the greater cleveland area. touting the benefits of the recovery act and has been hard hit. geithner in prepared remarks will tell an audience that the recovery act aid that has gone to the buckeye state is helping them rebound. touting how ohio is using qualified construction bonds to build new schools and 224 million already at work in ohio and part of a $22 billion program. no mention in his remarks about the $250 billion downward revision to the deficit. we expect the treasury secretary to take questions and we will of course keep an eye on what he has to say and update ow anything he said that will impact markets.

bill? >> that are could be interesting. we will keep an eye on that. as we mentioned, google getting an upgrade with shares up about 50% just this year. why now? our bureau chief is here. it's a real reach. >> yeah. you know when you look at the numbers, not such a big reach. is google becoming as two-trick pony? goldman sachs seems to think so. google dei rifs better than 95% of revenue from online advertising, but another horse is coming down the stretch in the form of you tube. the download service should generate 300 million this year in revenue and grow 40% or better next year. just yesterday google signed a deal to host content from movies and tv shows. that is from the likes of sony pictures and lesser programming from disney. the deal comes as other

providers remain leery. there is that contentious relationship between viacom and you tube and disney and the deal with hulu. they take the target to 560 a share in the next months and is bigger than you tube. success in europe and display growth expected up 40% next year and a recovery in revenue are all reasons to be bullish. it is a bold call and google up about 50%. gold min clearly thinks with the rally, google has lots of room to run. >> thank you very much. jim goldman. let's talk about the market and head down to the floor of the stock exchange. before we ask to you buy in on the bernanke question, the market is moving resilient even though we had moves in the marks. china is a distant memory with the sell off. i assume you are encouraged?

>> the market shows the discount and the jobs number and chose to focus on the manufacturing that is 12% of our economy. i think we are still in that looking forward. we are getting out of this and closer to the end in the beginning. still short-term bullish. >> the s&p at 1005. where would you wellic to see it close? >> above 1005 would keep the upside intact, but i will take above 1,000. i don't want to be greedy. >> what about the lack of volume? does it make it all suspect? >> definitely. the market is going to go where they are going go despite the fact that the trader is not on the desk. it's august. it's a regular august and people are sitting on the sidelines. quite frankly they need the vacation. >> i'm sure they have. weigh in on the question to the viewers and why you feel the way

you do. >> what do you think i was going to say? i like to be a contrarian. >> you would say a resounding yes. >> it should be replaced? >> you think he should be reappointed like everyone else. >> i think he should be reappointed. i would be fearful of replacements that would be put into his spot at this point. >> here's what the viewers think. it came down to a matter of confidence for our viewers, interestingly, but they had differing opinions on that. bob said no, he shouldn't be reappointed. bernanke said a change is needed to instill more confidence. sally said yes. he is the only reason i am still invested. finally leo who said it makes no difference who the fed chairman is until they are oughtit and regulated. we are choosing a different fox to watch the hen house.

he did what he thought and i would keep him in position. see you later, steve. >> over to you. time now for a lock at the most widely followed stories. what's click something. >> you know what's clicking? you are one of mine today. you wrote up a column saying secret becomes and tax havens are a good thing. >> people are piling in and a few have stern comments for you. check it out. we have done a slide show of muscle cars. these are on the market and likely to become the items after the green revolution happens.

things like the shelby gto or camaro. go check that out. finally the hottest thing right now, colleges where the graduates get the highest average paycheck. >> i bet a lot of folks are interested in that. >> looking at their alma mater saying please let it be me. >> the surprising one i wasn't familiar with, harvey mud college. a high tech college. >> where i went? doesn't make the list? >> sorry. >> check it out. >> that's in claremont, california, east of los angeles. a very, very fine institution, i happen to know. there you are. thanks, guys. "street signs" is coming up and highlighting companies. 1,000% since the march bottom. boise incorporated and part of that is a live interview at 2:00 eastern time.

phil? >> how do you keep a brand alive after the face of that brand is gone. that's the issue facing the huge into mercial industry after the death of pitch man, billy mays. how they are handling that issue. >> we will tell you about an incredible advertising from a major player and in a challenged industry. we are back in two minutes. some people buy a car based on the deal they get.

others by the car of their dreams. during the lexus golden opportunity sales event, you can do both. special lease offers now available on the 2009 es 350.

in the 150 billion dollar industry, there is no one more recognizable than the late billy mays whose legendary pitch sold everything from oxy clean to mighty putty. we have a big special tonight. >> amazing story on billy mays. he was the pitch man to the world and the two people he was also a dad. part of my documentary, i smoke with billy iii. >> the stain specialist. >> how hard would you say he worked? >> how hard? he was really never not working. it was what he loved to do. it was his joy. >> me about the decision to go forward. >> i look at it as this is his

life's work. there companies relying on his image to sell the product and the last thing he would want is for them to be out of luck. >> when you watch the commercials now or hear his voice in the background, how does it make you feel? >> kind of comforting. i miss my dad. he was like my best friend. >> to catch as seen on tv and billy mays iii and anthony sullivan and the man behind mighty putty as seen on tonight. >> does he have aspirations? >> he said maybe, but it wasn't a definite. that was not the reaction i thought he would say where it's his work and he wants to stay on forever. >> isn't that amazing. >> how do you keep a brand name alive in the public eye after he passes on. a branding expert and author of

the book, but wait, there is more. a look at the $100 billion infomercial industry. when he died, we have somebody on who ensured everybody would pull the ads because they didn't want a deceased individual pushing their productions. he was still on and doing very well when it came to sales. how does that work? >> they are not like other marketers. >> easy now. gently. >> to a certain extent any press is good press and other cases where they used that to their advantage to drive attention and drive sales. i wasn't surprised necessarily that they decided to continue. some thought it was in poor taste. they will not last long. the shelf is not that long.

they are enduring brands. for the most part they come and go and they are on the air for several months and they're gone. >> story possible he is the michael jo? i have talked to a ton of people and said is there someone else who can do the volume of ads? he was doing 70% of the ads in the infomercial area. is he a michael jordan where there is probably not a replacement ever or could someone come out of the you tube world or from another place and be really the next bilgy mays? >> i think someone can come along. he was the michael jordan of the decade. he was everywhere. i think he could pitch anything whether it was garden products

or medical insurance. you can put anything in his hands and he could sell it. there great sales men in every generation who can come forward and sell us lots of stuff we don't need. >> what about in the broader corporate america? many people think they are their company. >>s are there is a huge scope of difference between the brands that look to and had that long-term relationship with the consumer and look to protect their brand for a lifetime. versus these products that come and go. in those cases it's a very different story. obviously for billy's own

production company, this is a devastating blow to his family of course. for other producers, they will move on and have another product in the pipeline a month from now and find somebody else. he had a deal and rumors using pepsi. >> cross over star. >> soon by his own choice. >> catch the cnbc special with darren as seen on tv premiers at 10:00 eastern time. it's picture taking time. what if you want to take peculiars in low life. which cameras do the best job? >> check out the action of the financials with the mark in the upside. here are the contributes. citigroup, b of a, jpmorgan and american express. 

>> per "wall street journal" just put out one headline related to starbucks. they will charge up to 25 cents more for some drinks. one line from the journal, no explanation as to why. shares of starbucks not moving

all that much. the journal said they will add 25 cents to the price of some drinks. trading right now at $19.21 a share. >> the "wall street journal" said a bankruptcy filing by reader's digest could come next week to turn the company over to lenders. reader's digest was founded in 1922 and having trouble with the debt stem for example a 2007 leveraged buy out. >> a short document as i understand it. >> another private equity firm trying to run a business. >> cnbc contributor david poe gazes into the future of digital photography. >> thank you for coming to see me. are you prepared for your super natural?

>> who do we want to contact? >> i want to know if they great grandmother is at peace. >> i'm looking for my car keys. >> we begin. >> what is that little boy thing? >> i have to get a shot of that. >> that are is not going to work in here. it's way too dark. it will be a flur or grainy mess. what if i use the flash? >> no flash photography. >> they can take decent shots without a flash.

is really works. check it out. here's from a regular camera and from the sewn e. here's a shot and same thing on the wx 1. they pulled it off. $350. that's kind of steep, but it does other cool things too. it has the panorama mode and you swing your arm like this. it takes a bunch of pictures and stitches them together in the camera automatically. >> no way. >> way! it will take 10 shots in one second. for analyzing your golf swing or stopping a speeding motion. >> what's not to like? >> it has glitches like the panorama shots. it has a smile detection that you wait to take the shot until the subject smiles. doesn't work. the thing that bugs me, it uses sony's non-standard memory card format. >> let me see that.

>> what about seeing into the future? >> cameras will get better at taking pictures in low light. >> what about channelling the after life? >> it happens. >> he could be the next billy mays. he is so funny. up next, a clever advertising stunt by cbs. >> sheryl crow selling out. >> at a really good price. we are not skimpying on the empty calories. we are back in a flash with both stories and much more. ♪ yes, you're lovely... ♪ what do you think? hey, why don't we use our points from chase sapphire and take a break? we can't. sure, we can. the points don't expire... ♪ there is nothing for me... ♪ there's no travel restrictions...

we could leave tomorrow. we can't use them for a vacation. you can use the points for just about anything. i know... ♪ the way you look tonight ♪ chase what matters. get your new chase sapphire card at chase.com/sapphire. was it really for fun, or to save money on heat? why? don't you think nordic tuesday is fun? oh no, it's fun... you know, if you are trying to cut costs, fedex can help. we've got express options, fast ground and freight service-- you can save money and keep the heat on. great idea. that is a great idea. well, if nordic tuesday wasn't so much fun. (announcer) we understand. you need to save money. fedex introducing the all new chevy equinox. with an epa estimated 32 miles per gallon. and up to 600 miles between fill ups. it's the most fuel efficient crossover on the highway.

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and for me, well, it wouldn't be so bad if this breadwinner brought home a little more bread. repower america. i hope our senators are listening. can cbs and pepsi teaming up in an upcoming 0 of entertainment weekly. they contain a thin interactive video player. that's what it looks like.

>> in the upper right hand corner in the middle. >> for had will play clips from cbs monday night as part of the monday to the max campaign. more empty calories. cheryl crow. >> she is willing her business to an australian bank. a fund that is dedicate ed d to royalties. she'll receive less for every dollar and gains access in l.a., new york, and elsewhere to help promote her music. >> she gets a guaranteed number instead of the uncertainty. tar are taking the risk out of it. >> see you tomorrow. >> a swiss banking executive has

been indicted accused to cancel assets. a news corp proxy statement said the ceo rupert burr dock was paid down 40% from the year before and president obama said he is standing by his view that a public option should be part of health care reform. that's the news now. >> this is street signs and we're live on the floor of the stock exchange. two of the games leading the dow higher. one of the best in tech and city near the top of the s&p. cash for clunkers is so popular that they are copying cash for dishwashers and washing machines. is this the second stimulus america needs and the live trip where the nation's top decision

makers are and then america's prison crisis. only medicaid costs are rising faster. california prepares to free 30,000 inmates. can we slash them and fix the budget crisis and stock is up 1,000% from the market bottom. you are curious so we bring them to you. up in idaho and we will have the ceo with us here exclusively. shares up 22%. shares have doubled. we come into this end of the trading day. we have scott wapner this would be a great opportunity b you it hasn't happened. 2-1 advancing the declining stock. days in a row. it's looking promising. you want to see what technicals mean in a market