famed director roman polanski says he's going to fight extradition to the united states so he doesn't have to go to prison or jail for this old charge from 1977. why do we talk about this on a business network? because in switzerland the swiss government had to come out and say, no, roman polanski was not arrested in switzerland as part of a quid pro quo for the ubs settlement with the united states. it was a question raised over and over again. >> the u.s. government goes a little easier on the ubs forcing them to disclose the names of wealthy americans and in turn get us roman polanski. >> in addition to other stuff. >> 72 years old, you wonder why they didn't bring this guy over a long time ago. >> there's an oliver stone movie in there somewhere. >> we'll see you tomorrow. that does it for us on "power

lunch." thank you for joining us. >> "power lunch" with erin burnett begins in 30 seconds. the bench park s&p 500 stock index is on track for its best day in over two months. shares for the affiliated computer services are up 11%. they will be acquired by xerox. president obama will go to copenhagen to join chicago's pitch for the 2016 olympics. that's cnbc.com news now, first in business worldwide. i'm bertha coombs. it's monday, and stocks are surging on wall street. lots of deals sparking enthusiasm amongst investors today. you can see that enthusiasm on our camera moving quickly across the floor. i'm erin burnett. welcome to monday. is this the celebration before the storm? we talk about why interest rates may reach to the sky and hou you

can protect yourself, and then a fight coming to pay per view. who heavyweights going into the ring and we'll tell what you the fight is all b. and the president going to copenhagen to bid for chicago's olympics. if obama is successful, is he delivering something wonderful to the city? let's get to mary thompson at the big board, rick santelli at the bond pits. mary, you are first. >> we're about 17 points below the best levels of the day for the dow. up 155 points earlier. we are also very close to the best levels of the year. if the dow holds on, it could be the best closing high of the year. that's levels would be 9829. right now the dow at 9802. we're looking for about a gain of 27 points. again, could push the dow to its best close of the year. what we're seeing today is, of course, allger activity. keep in mind it's a very low volume day. 500 million shares have changed hands at the new york stock exchange. in large part because of the

jewish holiday, yom kippur, a number of traders are off. merger monday, let's run through some of the stocks in the news. of course, the big one, xerox is buying affiliated computer systems. we have kraft and cadbury on reports that kra kraft is set t its bid. a abbott is acquiring solvay. we also want to point out that dow chemical is moving higher. it's approved sale of morton salt to a german company. that's expected to be completed in the next three days. its stock is moving higher on that news, up 4%. the dow up 140 points on a very strong day today and as bertha mentioned earlier, the best day for the s&p 500 in two months. let's go to chicago and rick santelli. >> very similar scenario here, mary, in terms of light volume,

end of the quarter, end of the half here in japan. really in many ways they tell me, traders that is, that it's distorting markets a bit. one-week chart of the ten-year note, you can see it's been mostly lower yields. right now as a matter of fact, we are close to the low yields, high price of the day at 330. we haven't had a settlement under 330 since back in may other than intraday tests several times. you look at the dollar index that we mentioned, it's also very interesting that it's really showing up as a pretty good scenario today despite some huge setbacks against the dollar/yen, the lowest level in a decade and a half, and it underscores a lot of variables with the dollar, not the least of which is italy sells 2.5 billion short-term notes denumber nated in dollars. another diversification scenario

in a very perverse way will probably help the reserve status of the greenback at a time where it's low price is talked about around the globe. back to you. >> thank you very much, rick santelli. last week famed investor julian robertson told us if china and japan just stopped buying new american debt, rates could go as high as 20% in this country. now, that sparked a lot of debate. people are very heated on this issue. a lot of people have focused in on china in particular and whether they're buying as much american debt now as they used to, but what about the second biggest holder of american debt? that is japan. it's just barely lagging china if you look at the overall numbers, but japan could be a bigger threat to america than china, and if japan stops buying new american debt, interest rates could truly surge. let's talk about the risks here. joining us from littleton, colorado, to discuss a potentially damaging domino effect is the portfolio manager

with investment management investments. when i saw your note, it sure caught my attention because julian had been talking a bit about china, and you were focusing in on japan. what are the risks that japan stops buying american debt? >> hi, erin. if you look from a supply /demad perspective, on the supply side japan has the second largest debt to gdp ratio only second to zimbabwe. japan has a lot of debt. i think over 170%. on the other side of it, it has the oldest population in the world. in the developed world. if the savings rate has been declining from midteens and 1990s to lower single digits today. so over 90% of the japanese debt historically was consumed

internally by japanese consumers. so now as the savings rate declines, they have less appetite -- as savings rate declines, the demand for debt is going to fall. therefore, the rates in japan are likely going to rise. it was the -- now it's going to be a more formidable competitor because rates are going to be higher. basically it will attract some investments that were made in the u.s. >> so sort of a double issue. one, people in japan are getting older, so they're going to be starting to sell some of the debt they held which could be japanese or american. that obviously hurts us. two, you're saying as japan is forced to raise its own interest rates to get foreign investment, they then compete with us, so we have to raise ours even more. in all of these scenarios, american interest rates go up. >> that's right. also, if you think japanese

companies that borrowed at 1% of japan and were keeping money in the united states at 2% or 3%, that was beneficial for them to do in the paths. as rates in japan rise, it will not be as beneficial as it was in the past. >> when does this happen? how quickly? and do you have any sense of what just this change in japan, taking off china, focusing on japan, means in terms of where our interest rates go? how high? >> the timing of this is extremely difficult. this is a slow developing process. their savings rate was in decline for the last 18 years, right? so it's been at the low levels for a long time but it hasn't triggered anything yet. however the japanese debt level went up again because they had the stimulus package. now you have more debt coming up. also, a lot of japanese debt is long-term. so that may slow down the process a little bit.

so you don't know when it's going to happen and how high it's going fob, but i think it's going to be significant. japan is the second largest holder of u.s. debt after china. if you look what happened at the debt levels in -- i'm sorry, how much of japanese held debt over last year, it went up. the chinese levels went up a lot faster. japan has already been slowing down. >> well, thank you very much for joining us and for making this case. a very succinct one and frightening one for many. it adds what julian robertson told us. from julian's perspective interest rates could surge from 15% to 20% if china and japan just stops buying our debt. so if rates go higher, how would that impact stocks? and what are the best ways to play these sorts of scenarios

for your portfolio even if you don't think it's going to 20%. maybe you think rates are going to go to 8% or 9% like mark zahn zahndy said. i suppose we should put it on the record that neither one of you are really in the 15% to 20% camp, but tyler, do you think that a case of we might need a little bit of a shock in this country of rates going up much higher than anyone would be comfortable with to perhaps have the lesson be learned that we can't continue to borrow? >> yeah, you know, erin, thanks for having me. mr. robertson likes to also talk about global warming, and i notice he did that in your interview. how high could temperatures rise? well, we don't know that. >> right. >> it's kind of a similar question. directionally it feels like interest rates should be higher. the question is how much. and i think the key thing to remember is that we cannot print

money. we cannot spend stimulus dollarsed dollars ed a ad infinitum without risk. i'm there directionally. order of magnitude, i'm not really sure. >> i want to ask you what you would invest in if you think rates are going higher. jim, let's go to you, though. do you also think that rates are going up? maybe not immediately, but that that's where we're going? >> i think eventually rates have to move up, but what people need to realize is the japanese along with the chinese have built their economy for the last 30 years in sort of a mercantilist orientation. if they stop buying, that would be very bad, but the impact on their country would be far worse. i think it will be a more orderly transition and you will see what you've been seeing on the dollar where it continues to

move down but doesn't crater and rates don't really spike up. that said, if rates do bump up and there's a loss of faith in the american willingness to pay off our debt and get our fiscal house in order, there's a couple stocks i think you can own and still do fairly well. one of them actually is google, whose vision is to become the great television in the sky where you pay them ads, whether it's through youtube or through your cell phone or through ap c. they don't really care where it comes from, and they are the experts in that. and i think they will continue to monetize youtube and people like microsoft i think have their work cut out for them. >> even if rate it's rocket. you mentioned microsoft, and, tyler, i think that's the one you think would do well if rates would go up. >> yeah. to some extent stocks broadly should not do very well in a very high interest-rate environment, so i want to make that clear.

however, if you're thinking about companies that could be withstanding inflationary pressures, which i think would be concurrent with such a high interest rate environment given a weak dollar scenario, you'd have to think of companies that have strong business models, good pricing power, good balance sheets, and that are essentially self-funding. so the two stocks i would mention would be microsoft which in addition to having a product cycle coming, does have over half -- almost half its sales outside the united states, which should benefit them from a revenue perspective, and they do have pricing power. similarly, symantec, another software company, although in security and storage software, also has actually a majority of its revenues outside the u.s. strong cash flow, strong balance sheet, and both of these companies are actually pretty cheap, too. >> and symantec, do they have cash? one similarity between what you and jim both side is google and

microsoft have to have two of the biggest cash balances in the world? >> symantec has some cash on its books, although they have some debt, mostly in the form of a convertible. >> jim, what about philip morris? your other two are actually interesting. i don't mean to chuckle it's just you're talking about gilead sciences which is based on hiv and philip morris, also a demand which appears to be insatiable. >> philip morris is i guess my counter green play. they grow it, but it's not good for you. and the problem is that their product is addictive, and most of their sales, as you know, are outside the united states, and folks are going to pay whatever they need to pay in order to get cigarettes. the other point is with philip morris is their brands have cachet internationally. i think they will do fairly well. gilead is another good reason i think to own a stock. more than half their sales are

outside the united states. unfortunately, hiv looks like it's still a growth industry. in this country if you go into an emergency room now, they're testing you for hiv unless you object. it used to be you had to give permission. most states are now doing that, and that's increased the number of folks who are being identified. they have not started to treat people earlier. they're still pushing back on that, but i think eventually they will because people do a lot better if you treat them earlier with the medications. >> all right. jim, tyler, thank you very much. we appreciate it. for running some of these scenarios of what a world with high rates would look like. let us know what you think, whether you think rates are going higher, or whether you think they're wrong. streetsigns ath cnbc.com. >> should the president give one of these men more power? their street fight is next. plus, china is celebrating 60 years under communist rule, butthe dragon still going to

give investors any more reason to celebrate? we will unveil the reasons to be bullish on china's 60th. with over 800 million mobile phone users why connected china is a powerful china for your portfol portfolio. we'll be right back. at oppenheimerfunds, our fund managers' perspective on the numbers helps uncover opportunities no matter which way the markets are moving. ask your advisor about oppenheimerfunds. call your advisor for a prospectus with complete fund information. read it carefully and carefully consider fund investment objectives, risks, charges and expenses before investing. mutual funds are subject to market risk and volatility. shares may lose or gain value. oppenheimerfunds. the right way to invest.

bernanke and geithner, two heavyweights, one very heavy job. regulating america's banks.

i wonder if they really look like that when they take their shirts off. which one, ben or tim, should win the power struggle? ben mitchell is a senior fellow at the cato institute. i hope you both got to see our beloved financial leaders with their shirts off. those are real pictures. i'm sure we didn't put heads on different bodies. that wouldn't be right. christian, let's start with you. bob zoellick, world bank president, said in a speech today, and he's going to talk about it with larry kudlow tonight on larry's show, it will be difficult to vest the independent and technocrats at the fet wi-- fed with more powe. >> we need a clear systemic risk regulator. congress needs to define what that role is, but generally the fed is in a better position. it's an independent agency

that's staunchly independent. i think that's exactly what wee need, an institution that's not beholden to political interests. again, it needs to be defined in a way that actually makes sure the fed will act as a regulator. it hasn't acted as a successful regulator in the past. that has to change. that's the responsibility of congress to define that. right now the fed is trying to define its own role. that's unacceptable. congress needs to say how they're going to hold the fed accountable, how they're going to audit them regularly to meet the goals of a systemic risk regulator. >> dan, ben versus tim. there's a question of who would win in such a fight and there's a question of who should. what do you say? >> well, i would like to choose none of the above because i don't think we should be getting more regulatory power to government. let's not forget it was government policy that caused the financial crisis. the fed played a very bad role in terms of the easy money policy creating all thely quid i

had -- liquidity. geithner is a lap dog for all the big bankses. i don't think it would be good to give him more power. but if you held a gun to my head and i had to choose, i would rather keep it in the treasury department because the fed's job should be, not that they're doing a good job, but their job should be to protect the value of the dollar, and i worry if you give them an inconsistent mandate, protect the dollar but then also defend the interest of banks and wall street, that might give them a very, very strange set of incentives to increase the money supply when we actually need a more hard money approach. >> go ahead. >> we already have given the regulatory agency authority to the fed. the fed has had that for years. it is overseeing bank holding companies. i agree with dan, they have done not a particularly good job

actually exercising that. that's ultimately the challenge for congress to step in and say, okay, what is the role and how would you make sure from a political perspective, from a legislative perspective. how will you make sure that ben bernanke or whoever is going to run the fed in the future will exercise that role? i think the fed has the wherewithal to actually do this and do this right, but, again, it needs to be defined and then congress needs to also lay out how it's going to hold the fed accountain the future through regular hearings, through you a didinauditing and so forth. congress is not really willing to set out how that role will be. that leaves a vacuum for the fed to define its own role. that i think is unacceptable. >> let me throw it question at each of you. we had this picture from a speech or a panel that jamie dimon was on. he's sitting next to sheila bair saying too big to fail is a horrible thing. it almost was hilg laarious to h

him say that and watch her reaction considering he is almost the definition of too big for fail. is there any institution in any of these structures that has the power or authority to tell jamie dimon, you're going to have to raise your capital requirements or jpmorgan chase is now too big? >> well, see, you put your finger on the key issue here which is whenever you give government regulatory power, what happens? the powerful interest groups, whether it be jpmorgan chase or some other institution, the powerful interest groups get the lobbyists, the insider access, and they begin to work the system in their favor. that's why regulation is very bad for the smaller banks and for our dynamic economy. we wind up creating it cartel of the big firms that are protected by the government regulation and so, in other words, i have zero faith that the regulators would do the right job and so the idea of giving them more power is like giving alcoholics the keys to a liquor cabinet and assuming

it's going to be good for their health. >> it's hard to argue that the fed is influenced by lobbyists. that speaks against giving the power to -- >> but isn't jamie dimon individually because he run a good bank, he has sort of been imbued with this he is do no wrong in the eyes of regulators and he's doing his own lobbying sitting on a panel. >> that's the same problem. there's an issue of how do you get the regulators to do their job? i think generally you can do that more easily with the fed that has shown a certain knack for independence. on the administrative side the regulatory's agency, especially in the last eight years, were defunded, a lot of functions were laid to rest. clearly the politics mingled very closely when it is within the treasury, within thed ol dd

other agencies. clearly, you do need to define what will the systemic risk regulator do and how will you hold the regulator accountable? that's a political challenge, especially for congress at this point. >> okay. thank you very much. dan, christian, the beginning of -- well, go ahead and help out hbo, but in the meantime, you can get the side of the argument that says the treasury should have the power. let us know what you think, whether ben bernanke or timothy geithner should have more power, and also whether you think jamie dimon of jpmorgan chase is too powerful. e m-mail us. next ahead on the show, iran pushing the patience of the world yet again. what ahmadinejad latest move may mean for investors who trade oil or use oil and why this smoggy but booming skyline could hold the key to the next 60 years of

growth in china. we bet it is likely you have never heard of the city in that picture. and then obama going for the gold. he's about to do something no president has ever done to try to bring the olympics to chicago, but is it really the best money move for his hometown? we'll follow that money story. that's the president fencing. we'll be back.

the market is higher today, sharply so, especially in the face of some rather disturbing international headlines which could matter a lot for stocks. one of them about iran. the country not standing down in the face of international pressure. test firing three medium-range missiles overnight. now, iran's nuclear negotiator will meet with u.s. and european diplomats in geneva on thursday. the united states likely to demand rapid u.n. inspections to begin within weeks. if tehran does not comply, it's expected sanctions will be imposed. of course, the crucial thing about sanctions is will russia and china go along? otherwise, they really don't carry any teeth. so far oil is shrugging off the headlines extending last week's

8% drop. it's up a little bit. about 84 cents. so is oil missing something or is iran moving dramatically in the direction of a nuclear power, just not a market-moving event? john is a senior vp. john, is the market in a sense just accepted this, that all the negotiators and inspectors can come in as you will but the truth is iran is going to be nuclear? >> i think there's iran fatigue going on, however last week was a very powerful week for the bears in oil in terms of the fed announcement, the weekly inventory report, and the durable goods orders really combined to put a lot of downward pressure, as you said 8% down. i'm not sure this isn't a significant reversal on this news as we move forward because the developments here will be very very troubling, and it will be brinksmanship of the first

order. >> i think you raise a key point. once the market sees it that way, you would expect to see a dramatic move, wouldn't you? >> i truly do. i think right now it's a bit of the same old game. i'm not sure there's a realization out there fully yet what this newly announced qom facility represents and it is to bring the enriched uranium they have now to the next and ultimate level of nuclear weaponization. this is not a facility for electrical generation purposes at all, and that's why there was such a flurry of activity about this on friday at the g-20 meeting. >> and so where do oil prices go if things are not resolved? i guess let's run a couple scenarios. let's just say the united states goes in and the u.n. goes in and says you're not giving us the access we want or whatever you might expect would happen, a lot of foot dragging and sanctions are imposed and not everybody goes along and it drags out. what happens to prices then?

>> they will stay relatively stable but i think there's a higher floor under them now. it's going to be this $60 level, if anything else, erin, because what we know is that israel is on the clock i think at this point in terms of not allowing this to play out any longer. what the market also has to balance is that there's always been the feeling that iran is using the nuclear issue to get the best, grandest bargain they can. that's still not an option completely off the table yet. they're not necessarily in a lock for going nuclear. they could still pull a libya move out of their hat. we have to be mindful of that. but at this point it's looking worse and worse for that scenario and better and better for an ultimate military strike by either israel, ourselves, or even a more coordinated one because the french have awakened to the danger this represents. >> we have just had headlines coming out of russia. the foreign minister saying he is concerned over the iranian missile test. now, obviously that can just be a whole lot of hot air, but

let's just run that scenario. china and russia say we've had enough with your shenanigans, iran, and we are going to go ahead with sanks. is that likely, and if so, what does that do? >> i think they do because the missiles that were tested aren't the ones that would explode. these are really meant for a nuclear delivery device. that's what's scaring everyone out there. if they do though, here are the scenarios, if the sanctions are put in place and they do you include gasoline imports in iran, they import 40% of their gasoline needs, you have to question whether that evokes a response from them. do they shut down the strait of hormuz? >> john, thank you very much. iran has been pushing heavy into natural gas, but is nowhere near close and they do import all their gasolines. they don't have refineries.

which is one of those shocking things about one of those countries in the world that has so much oil. up next, 60 reasons to celebrate communism. plus, obama's olympic mission. it will cost his hometown, and nearly half of chicagoans don't want the games. should the president back down from something unprecedented e he's about to do? ññññññññ

welcome back to "street signs." i'm brian shactman at the nasdaq. the tech-heavy rally continues although we are slightly off the highs of the session. up 1.9%. advances to decline better than 3 to 1 right now. restaurants, retail, region banks all part of this rally. let's talk about the two biggest top stories. apple up 2%. there are going to be iphones in the uk and china and there are 2 billion app downloads in the app store. cisco got an upgrade to everyweight at barkley's. it's been up 4% to 5% the entire

day. really lifting the entire sectors. chips very strong as well. intel, applied materials, sandisk is strong. amat gets an upgrade to buy at citi. big names out there that aren't necessarily performing beyond the market index averages, yahoo!, 1.7%, google up 1.3%, microsoft up 1.7%. the one laggard, research in motion. they can't get off the proverbial mat. down 2.8% after the huge sell-off last week. >> thanks very much. we want to talk about tech stocks because a lot of chinese companies trade on the nasdaq here. we were thinking about china and how nice it would be to take a whole week off for your birthday. that's what china is about to do. taking a full week off to celebrate 60 years of communism. china's communism is really, well, it's really the most capital communism around, but whatever you call it in honor of this birthday, we have 60

reasons to be bullish on china. the entire list is on cnbc.com. even if we do an incredible job here, we're not going to get through them all, matt. let's give it a stab. i wanted to start with this one. we were looking up some of the populations of cities in china. i remember visiting one and going to the tallest tower in the city and looging around and being told this city doesn't exist 30 years ago and now it has 20-odd million people. most americans haven't heard of a lot of these cities. that's one of the reasons your so optimistic. >> that's right. china has more than 100 cities with more than 1 million people in it. and everybody is pretty family with beijing and shanghai, but the story of the recovery has really been the second and third tier cities. we started picking up data in february actually that made us very encouraged china would

bounce back quickly because we were picking up data in the second and third tier cities that was surprising to the upside. >> there's other areas -- a lot of people focus in on this even if you -- just look at how much chinese people earn. granted things cost less there, but they have a long way to go, right? they have this huge migration from rural centers to urban centers. you're saying, fine, maybe there is a big transition to be made, but even with the penetration they have so far, they're already number one in cell phones, number one in internet. >> that's right. you know, their internet, as you pointed out earlier, their cell phone subscribers are now approximately 800 million. they're close to crossing 400 million on the internet in terms of usage, and it's just incredible. >> now, taxes, this is an interesting one. high official rates is what you're noting. first, i'm curious how high, but then you're saying they don't enforce it and there's no capital gains tax. >> that's right. the taxes can run as high as 40%

or more, and we see this in just our own employees. chinese nationals that we employ. and a lot is taken out for benefits. but as you pointed out, the government still has a long way to go. right now they don't charge capital gains tax, and there's no annual real estate tax. there's tax if you sell real estate properties, but no annual real estate tax. >> go to our website because there are 60 reasons that matt has to be bullish. but now, matt, let's just say someone buying these reasons, they want to invest, what are your best ideas right now in a market which most people see as terrifying because it is so volatile. it's in a bear market one day and a bull the next really. >> yes. and to point that out, we laughed, some of the leagues at our company, we said we could equally or just as easily come up with 60 reasons to be bearish on china. but, you know, we really believe

that this -- there's a lot of momentum on the market. one of the ways to -- easy ways to think about it is they had 30 awful years where they were suppressed and there was just pent up de3457mand building and pretty incredible years, in particular the last ten when they entered the wto, but the stocks that i'll recommend today or point out in green tech, there's a company, a solar company, ying li, green energy, and that's one of the leading solar companies in china, and when it comes to alternative energy, support from the government matters a lot because some of the startups, it's uneconomical to jump into the market, so you rely on government support and subsidies. they have a great position, the best margins in the business out there and good government support. >> matt, thank you very much. by the way, you can get all 60 of his reasons on cnbc.com and also his other trades.

china resources land and bideu. we had to share this story with you. the granddaughter of the founder of communist china, that's right, the granddaughter of the founder, is commemorating the 60th anniversary in an interesting way. she, of course, is the granddaughter of chairman mao and he's opening a store in beijing which sells everything from t-shirts to coffee mugs to books all featuring her grandfather's image. critics are expressing concerns the leader might have resented being used to sell souvenirs. there is perhaps nothing more capitalist than selling mugs with a dead person's face on them. so what do you do after you oust a president and take over the government? you hire a pr firm, of course. the government that ousted manuel zelaya has hired a well-known d.c. public relations

firm to boost its image. it was signed to a four-month contract. it's worth $290,000. the interim government overthrough del -- overthrew ze in june. many governments believe he should be returned to power. just an interesting story and one that reminded us of those pirates off the coast of somalia. they had a public relations firm, and we could never figure out who it was amongst the pirates who was so organized to pay the pr firm? anyway, obama has visions of gold for his hometown but will it live the budget of chicago in the red? this is my small-business specialist, tara. i know landscaping, but i didn't know how wireless could help my business. i just don't know how wireless can help my business. tara showed me how i could keep track of my employees

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after saying he would not go lobby for the chicago olympics d chicago to get the olympics,

president obama is now headed to copenhagen this friday to make the case that chicago should get the 2016 summer games. is it worth the cost? joining us now from chicago because we do need to disclose where people come from in instances like this one, mark stannis. we looked at some of the surveys out there and half of chicagoans don't want the games, half do. do you need to disclose anything about some rabid desire you have or don't have for the games? >> i think they'd be good for chicago. i'm not a part of chicago 2016, but i think they'd actually be good for chicago and the polls to a large degree are dissatisfaction with other aspects of mayor daly's administration. a couple big ones that have happened recently that he's really taking it on the chin and i think they're reflected on the polls. >> how much would the olympics cost chicago? let's just do it really basic. this video we're showing of the president with the fencing is somewhat confusing. i mean, but -- i didn't realize

he was into it. how much would it cost chicago first? >> they're saying it's about a $4.5 billion cost, but by the time you get done with everything you need to look at a number around the $10 billion number. people just have to be realistic about the costs. the benefits are going to be really significant. unless this thing gets woefully out of control in terms of the costs, ultimately it will turn out to be an excellent proposition for chicago. >> okay. >> but they've got to keep the costs down, if they can. >> we'll hold this up here. vic mathieson from holy cross, a professor there, had done the study of the most expensive summer games. i believe and i will be told if i am wrong, these numbers are inflation adjusted. actually, you know what? yes, they are. these are inflation adjusted. if you're giving me a number of $10 billion for chicago, it would make it easily the third most expensive summer games in history. >> and the reality is you're going to have to build a lot of

infrastructure, some roads. it's going to cost that. they're saying it's about $4.5 billion. but by the time you get done, it will get close to $10 billion when you add everything in. >> we know it's not just chicago. they all hope and dream on the numbers. >> right. >> you just double it. here is the point. does anyone -- what are the examples and how many examples are there of cities that have really been able to turn that huge investment into something with a longer term return because i can think of so many examples where you get this huge pop and then you've got all this debt and these empty structures and it doesn't pay off. >> well, you have to have an infrastructure already in place where the world exposure can pay off. chicago has that. barcelona on its own certainly is considered a success, financially as well. athens is not. beijing and you've been there, i have an office in beijing, i have got to tell you, beijing is a different place now because of the olympics and a more positive place because of the olympics. so how can you actually quantify

what an olympics does for a community over generations? it's very hard to do, but you've got to have the platform. you've got to have the hotels and you've got to have the convention facilities so that people want to then come and the tourists locations, and chicago has that. it's ready for it now. wouldn't have been ready for it ten years ago, but it's ready for it now. >> mark, thank you very much, and viewers, please let us know whether you think it's a good use of the president's tame to go to copenhagen and lobby for chicago to get the olympics or whether get the olympics or you think there should be something else he should be doing. chrysler, will it mean new models in america. that's next.

what does the future hold for chrysler? the ceo will soon detail the turn-around plan to the auto task force. phil has a closer look at what might be in it. hi, phil. >> hi, erin. it's not what might be in it, but it will be in it. essentially this is all about putting together a game plan, and that is one he outlined first for the chrysler board on

friday. he's going to be meeting with the auto task force this week. briefing them about what the plan is over the next five years, for turning around chrysler. by the way, this is sergio at the frankfurt auto show a couple of weeks ago. the strategy is all about cranking out the fuel-efficient vehicles as quickly as possible. chrysler has always skewed for its trucks and suvs. that's what killed it when the gas prices soared last time around. so this time the turn-around plan is going to be focusing on the fuel-efficient models, the "a" and "b" segment, "a" like a mini cooper would be an "a" model. they'll bring over the fiat. redesigned models. they're not getting rid of all the chrysler models. he also wants to further differential yat chrysler, dodge and jeep. they have a lot of models that cross over. it's very unclear to the buyer out there what the difference between a chrysler and a dodge. for more on the turn-around plan, check out

behindthewheel.cnshs.com. what's happening with auto production around the world. the fourth quarter this year will top production for the industry compared to the fourth quarter of last year. that's the first time we've been able to say that in about six quarters. there's a also a report out that japan will raise toyota's shares by 3%. a lot of the auto stocks had a decent runup back in july. it's fallen off a bit. expect this to sort of increase from here for a couple every reasons. one, revenue trends production, as production increases, you'll see greater revenue for the automakers. the bottom for this industry, we've already seen it. we're going to expect them to cut their losses eventually work back towards profitability. >> thank you very much, fell fill. if toyota and chrysler get it together, should you be buying into the auto industry? let's get a quick check with our word and buzz, our traders. don, what are you saying?

here's toyota increasing production. chrysler trying to make a case for existing. what do you think? >> i think you said it yourself, trying to make a case for existing. and unfortunately that's what it's come to. the fact that we've seen a resumption of auto production, i think phil said, the first quarter year-over-year increase in 1 months. that's a wonderful development. but i think it's still short in term in nature. what we're seeing driving economic growth is simply a resumption of auto production, inventory rebuild. as you and i discussed this morning, we still don't see it yet from the consumer. >> that's right. what john actually said this morning was, correct me if i kont get the exact words right, but the technicals are exponentially better than the market. do you think he's right, art? >> i think he's spot on. we've had some movement. inventories got depleted with the cash for clunkers. now they're rebuilding inventories. we've got to wait to see, will that come with sales and tax.

and we're not entirely sure of that. and i think bringing out high mileage cars is laudable. but i'm not really sure if the market's going to be there with oil prices now being tempered. >> thanks very much. john, art. next, chicago, tim, ben and jamie. your e-mails.