to try to test support level in the s&p at the 1330 mark and if that doesn't hold could usher in technically-based selling for the afternoon. we'll see. >> got to hold on from here. that's all for "power lunch." >> "street signs" begins right now. welcome to "street signs." live from new jersey where the weather is the only thing that's hot right now. stocks, gold, oil, all down. but could lower gas prices give us the gas to rally through the summer? we'll find out. the best of the best are here. top fund managers with picks and pans for you. plus, how much the facebook ipo did to investor confidence and the feel-good story. one man's company getting back to business. mandy? >> good news. today's slide marks the

biggest one-day average drop since june 1st and seventh triple digit move for the dow this month. nasdaq is still positive for the week at this point, folks. seems likely to see the five-session winning streak end. let's check in with mary thompson at the nyse, rick santelli at the cme. mary, feels like the loss is coming out of nowhere but you have a global slowdown and therefore feels like a globally synchronized selloff. >> felt that way. it was interesting, mandy, at the open. we had a mixed picture. disappointing data of germany on the manufacturing read but then, of course, 10:00 we had very bad data here in the u.s. most notably on the philly fed list and then after that, we had the call from the firm goldman on shorting the s&p 500. all of this combining to

accelerate the selloff we are seeing right now which is certainly driven by commodities and materials today. let's take a look at the leading losers within the dow which right now is sitting call it about 13 points above the session lows. again, that is commodities and tech story. all of these weaker and bank of america, as well. keep in mind a number of people waiting to see whether or not moody's comes through with the debt downgrade that's been talked about since last february on the global investment banks, 15 of them and five of them here in the u.s. on the s&p, of course, the intraday chart tells the story. the weakness and then the further decline once the goldman call came out. looking at the leading losers within the sectors continues to be energy and materials, technology, consumer, discretionary stocks taking a hit and digging deeper, in to the commodities and materials play because, again, you have weaker data out of germany.

china with weaker data and here in the u.s., these are the group that is are under pressure today. there you see them right now. the commodities taking a hit. back to you. >> amazing, isn't it, the way gold is tanking and normally think a global slowdown is good for gold but it is good for bonds. right, rick santelli? >> seems to be the case. i find it particularly interesting when so many things align up. now, take everything mary said because she really laid -- made the table for me. if you think back to the last time we had the type of down day, june 1st. look at some charts, that was a cull mination of big factors, t selloff and then the rates moving back up and so did the stocks. the reason i'm getting this is there's very similar dynamics here. and then add in there is a very nervous feeling on the trading floor today, mandy, due to the notion that moody's is going to

be hitting the tape sooner or rather than later and i think that's not only fueling the weaker euro but fueling with goldman the selling in stocks and absolutely now that we're about ready to slip under 160 you could see a lot more buying moving these yields lower moving toward the end of the day. >> with e know moody's will do something so is the fear that they're going to do more than we think they are? >> well, you know what? sully, traders down here get buffeted from headlines, even headlines they don't believe like out of europe so the tape on now, not a question of what you expect as much as trying to protect yourself from the volatility. >> thank you so much. thanks to mary, as well. >> all right. let's get back to black. gold, that is. oil's trading below 70 bucks a barrel. brent and wholesale gasoline on the slide. aaa reporting that pump prices below $4 a gallon in every state

except for alaska and hawaii. if it keeps falling it be a top-off of confidence america needs right now. let's bring in jeffrey grossman and on the cnbc news line, tom kloza. tom, how low will -- not can -- but will oil go? >> i think oil is pretty close to the low for the summer here. i think it will have a $7 handle. i hate using that term but in the 70s for wti and then in the 80s for brent. you get any lower and losing that great north american success story which is shale oil and coming to market for less than $60 a barrel and still a good story and still indicates much lower gasoline prices and diesel prices for the summer. >> jeff, what about you? i would imagine at 78 and change it's still quite high for what you're obviously seeing right now which is a global economic slowdown. how much lower do you think it can go? >> i have to agree, not much

lower. we have reached pretty much the objective that anyone could have foreseen. this is a support level that goes back to about october of last year. and again, we're looking at a market here that if nothing else, when you look where we came from and where we are, we are probably looking at a market that's going to hang out here for a while, has to absorb the numbers for a while. again, we have a few things coming. we have the iranian situation and then the driving season with the july 4th holiday. i think we see a market that will probably work the way back higher. not saying it wasn't good and great that we're in the sevens here but don't think it stays for very long and drifting back here. in fact, up to the mid-80s and in fact, i said it before. that you are going to see probably $90 again before 70. >> okay. so if both of you don't think we go too much lower from here, does that go for gasoline prices, as well?

obviously a lot of people hoping for sub-$3 a gallon gas and certain places like south carolina, they've already got sub-$3 but i think nationwide is what we're looking at here. >> i think we'll see a lot of states with sub-$3 a gallon gasoline in the next few weeks and the second quarter tends to be sort of the heat of the depressive moment in the bipolar oil markets and gasoline will stabilize in the summer. interestingly i think in the fourth quarter and right around election time, gasoline trades for barely anything in excess of crude and i think you will have sub-$3 a gallon gasoline or thanksgiving and people putting together conspiracy theory to do that but it has to do with how much easier to make the fuel out of the summer. >> jeff and tom, thank you very much. >> great. really feels like stocks are just wilting in the summer heat today so what are the best of the best doing with their money?

tyler matheson is at the morningstar conference in chicago. over to you. >> you know, mandy, i want you to say hello to matthew mcclendon. a university of queensland graduate. >> good day, mate. >> good day. >> matthew was born in papua, new guinea. how would you like to have a fund that's in the top 1% over the past decade and the top 10% or so over the past year? you get that kind of performance, you got a winner there. let's talk a little bit about this idea that i think must be on your mind based on what you say of financial repression. the idea that investors can't make real returns in risk-free assets. >> it is a paradox today. there is no risk-free asset that offers a real return largely because in response to the fault lines that exist in the real economy we've resulted to monetary therapy to try to solve our problems but the problem

with that is that for prudent long-term investor today, even out 0 a decade or beyond, you are looki locking in. and if the goal of investing is to grow your wealth in real terms, then it's a pa dox call situation. >> which is one of the reasons why you say money is corrupt, right? >> money has been corrupted and i think in an environment where money is corrupted you have to look for opportunities for real returns outside of the traditional areas you may have been focused on and forces people to look at equities, the debt market. but if you go in the area, you have to go with security. >> for one question from the desk at headquarters? >> i was taking a look at the top five holdings in the funds, matt, and you have gold bouillon 5% and then chris coand seems

like strange bedfellows. >> if you tried to link it altogether, there's two threads of continuity. there's the fact that each of those businesses is an element of scarcity and gold. secondly, there's the fact there's a valuation margin of safety. if you look at the businesses there, seacom in japan or cisco, microsoft, et cetera, these are all dominant businesses that own a small slice of the world economy. that's a real asset just like gold is a real asset and owning it at the right price a way to generate real returns. >> scarcity is central to how you invest. on the one hand, scarce commodities, tokyo land or real estate or gold or energy project. aggregates and so faorth. you say it can be by microsoft

or cisco. who's good in these areas? >> if you're thinking of scarcity in broad terms, distinguish between scarcity and hype assets and intangible assets and that's something that doesn't show up on the balance sheet and dominant market position that's stable over time at best example of that. it enables you to have pricing power through time and if a 10-year tip has a negative real year yield is it not bet tore have a free cash flow over time? >> thank you very much. say good-bye to mandy. >> bye-bye. >> see you. buy. i feel awkward saying good day. guys say that but in the sake of being an australian good day. >> for a blooming onion. chase off a koala. >> ride a few kangaroos.

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a a quick of the dow. just a moment ago, cracked the 200 mark to the downside. sitting at 199 prepondera.99. >> that's a bargain. discounted. >> selling fast. check out bed, bath & beyond down about 17%. ow! but the stock has been trading at all-time highs and a lot built in as you can imagine and disappointment today and still up about 7% year to date. that news one bad data point in a day filled with many. right? philly fed is weak. jobless claims on the rise again. but why are we so darn driven by daily data? are traders scared? an author says maybe so. john coates, research fellow and

neuro scientist. john, i'm excited about this interview all day getting the heart of the market and maybe the heart of the market problem. how have we e solved or deinvolved over the last couple of years? >> well, you know, we have been studies the effect of the body on risk taking and ignored in finance and anyone on wall street knows taking financial risk, making and lose ing a lotf money, their bodies are affected. part of the book focuses on the credit crisis and what was happening biologically to the traders losing so much money. >> yeah. obviously, taking a some real-life examples, feelings of missing out. making people get in at the top and panicking getting out at the bottom. what would be some of the good outcomes of being a slave to your feelings? >> well, i mean, our bodies beautifully crafted over the years of evolution to sustain us

in effective risk taking and usually attributes to good risk taking and sometimes overreact. during winning streaks, for example, you are irrationally sbub rant or risk averse. >> you talk about that feedback loop basically where you if you win you think you're a genius and lose you cower in the corner and do nothing. how do we break that? >> well, i think, you know, risk management has to take some responsibility in breaking it. i think they can learn a lot from sports scientists. they have to stop seeing the traders as computers and using statistical tools that take a snapshot of the firm and realize below the surface of behavior their traders' risk appetites are shifting. >> how do they do that, right? sitting looking at a printout in the office going the value at risk is whatever and looking at the numbers, so how do they get

away from that to what you're talking about? >> it's what we used to do. before the tools came in involving the trading manager next to you and recognizing the signs. we lost that to a certain extent and we have to get it back and understanding the biology involved will allow them to realize it's winners, people on a winning streak most prone to losing large amounts of money. maybe they should start pulling them off the field for a while. >> the tab group says facebook's ipo had about as great impact on confidence as the may 2010 flash crash. what do you make of that? one single event or one single ipo has that much of an impact on investors? >> i wasn't aware of that. that's an amazing fact. i don't know about that. >> yeah. it's amazing. isn't it? thank you for that, john. okay. and while wall street is getting knocked around these days, it's actually still doing pretty well in a lot of places.

case in point, wall street's continued mission to hire veterans. the biggest banks are meeting with veterans out there and they're looking for work. kayla? >> reporter: mandy, pretty much a who's who of investment banks from "a" to "z." joining roughly 100 corporations here on wall street to cater to roughly 1,000 veterans at this year's event that last year ended up producing roughly 400 job offers. the issue is a really pressing one. with veteran unemployment roughly 50% higher than that of the average civilian unemployment number, veterans we spoke to here today say all they want is an opportunity. take a listen to what they told cnbc. >> so many great different banks and organizations and companies here that, you know, if you're not looking at all of them, you are not doing your due diligence. >> wall street is where -- i don't want to be blunt but where the money is. >> my g.i. bill is about to run

out and surviving for three years and kept a roof over my head. desperately seeking a job but a sustainable job. >> reporter: now, wall street thinks that the skill set a great match for what they do, problem solving, risk taking. as you were mentioning. it's really whether, you know, the macro headwinds let them keep the hiring targets in place and whether they can meet the targets for how many veterans to hire. back to you. >> kayla, thank you so much for that. let's get out to the market flash. >> the price of gold falling 2.5%. a stronger dollar. further concerns of a weakening economy. and to top it off, a global slowdown. gold krobs creamed today and what we are seeing and of course direct correlation with the price of gold falling. >> thank you for that. a quick market check. the dow down 211. nasdaq and s&p down.

gold is getting walloped. >> really strong dollar out. >> off the low and still bad. by the way, just a note, s&p 500 still up about 6% year to date. >> yeah. out of the developed markets, we are doing pretty damn well. there's bad news out there but -- >> we have some good news for one small business owner. it is a feel-good follow-up story from last night. >> how can you be there and here at the same time? a rare interview with one of america's fastest growing fast food chains. red robin ceo talks about the stock's boon. ♪ [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out.

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let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. april we in april we received a letter from our bank telling us that our line of credit had been called. and -- >> wait a minute. you're growing? >> we are growing 60% and been profitable, every single year. paid our taxes on the profits. >> paid your taxes, made money, been growing and the bank took away the credit. administrators mills -- i'm sorry to interrupt. this is the story that so many people are hearing. >> fired up a bit. that was the clip of the getting back to business town hall that aired last night and that

business owner joining us from atlanta with good news shortly after the event. david is vice president. great to chat with you again and really glad one or two banks came through. tell us what happened shortly after the town hall. >> hello, brian. thanks for having me on. wednesday evening after the show around 4:30, i received an e-mail of wells fargo bank and the line of credit which they canceled in april they made an offer to turn it in to a fixed loan over three years at 5.5%. so, that was great news. gives us some stability. we still have the second mortgage on our home and that will remain in place for ten years as a revolving equity line. we really haven't tapped that. we have it there. >> david -- >> for emergency needs. >> i understand you got a second

offer of suntrust bank. listen. i'm glad wells fargo came back but they canceled the credit line anyway. >> yes, they did. >> which are you more likely -- you can't help but feel it's a reactionary thing of wells. are you going with the first one because it canceled originally. >> that's my inclination to go with the second bank with the $650,000. banking is just so important from a stability standpoint. not only for a small business, but for any business. you know? we have to operate every day really without thinking about our banking relationship. we should concentrate on hitting our numbers, growing our company, taking care of our customers, taking care of employees and there are certain things that we should feel that we shouldn't have to worry about. banking being one of them. >> right. >> it's high lly unstable. >> what alternatives are there out there for small businesses like yours? >> i would have taken karen

mills' advice and pursued a small business loan, an sba loan. but, you know, that's a sad commentary, too, because when we first made our approach to one of the banks, after hearing the news from wells fargo, we were basically told by the bank, you know, the only loans we're writing really are small business loans where the government's going to guarantee 75% of the losses. >> right. >> while i'm glad that the federal government is stepping in, it's a real sad commentary that -- >> yeah, it is, david. >> the banks have to be reinsured for the losses. my business not. the panelists you had are. are the banks too big to loan? that's my concern. >> we have to leave it there. thanks for coming on. you're right, right? privatize losses, right? publicize -- it's ridiculous. i completely agree with you.

thank you. check in with us again. >> thank you for your help. >> all right. let's get a hit on the markets now if we can, please. the dow continues to sink. we are down 218 right now on the dow jones industrial average. i'm going to do a live check on the indexes to see where we are. one dow stock higher, folks. it is merck. generally walmart on days like this. today, merck. the only dow stock that's higher. >> okay. coming up next, we're going to head back to the morningstar conference. we ask a four-star fund manager how he's navigating the down day. under armour under pressure. i guess the new sneaker venture not exactly a shoe-in. >> shoe-in. >> for investors. [ male announcer ] trophies and awards lift you up.

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global global data, disappointing data at home and a fed that did what we expected equals the worst day for stocks in three weeks, brian. >> you know that moody's likely to downgrade banks. we could get it at any moment. we think we know what we'll get. you never know. markets little jittery. if it happens we'll bring it to you soon. >> happening as we expected, maybe possibly not much reaction in the markets. anywhere off that course, watching closely. let's quick off the street talk time with the pharmaceutical space. i want to start with this one. it's soaring, onyx. >> let's talk about this stock. that's about as far from a downgrade to get. fda advisory, a recommendation. not a ruling. big difference. a positive one on onyx's blood cancer drug. for bone cancerment blood cancer. also look at celgene as a number one maker in this space.

the final fda decision expected by not on but by july 27th. >> what does nat gas and ercana in common? >> they're both found in canada. >> and moose. >> that's -- >> they move about sharely. shares down 8%. good news/bad news. people concerned about profit because they plan to invest another $600 million to drill. they'll have about 350 oil and gas wells next year. production up 11% and spending more to drill more. going to impact near-term product. >> spend money to make money. under armour with a downgrade of ubs. i guess not happy with the new sneaker, huh? >> down 5.8%, right? ubs concerned that this warm weather not just today but from may and april is pulling sales forward. i don't need a t-shirt last week. i bought it in march. keep in mind this stock is still

up about 40% year to date. merrill lynch with a positive note on the stock. one of the major recommendation lists. a firm knocking it. a good year for under armour. >> not a good q-3 for micron tech. >> pricing is the subject. too much flash memory. micron technology posting a larger than expected loss. a $12 target thinking that pricing will recover and pulling down production to try to put supply demand back in order. >> this stock pulling down other memory makers. last but not least is federal signal. >> the smaller cap name. not a name we talk about a lot. they make highway, transportation, rail, lights, signals. they sold a division to 3m and part of the highway technology group. $110 million deal and paying down debt. you know? it's about 13% of the revenue. they're getting rid of it.

the stock getting favorably responded to on that deal. if you get a red light on the train -- >> uh-huh. >> -- thank federal signal for your safety. >> thank you. >> we heard from one of the best of the best and now back to tyler matheson in chicago. ty? >> you know, mandy, on this day when the dow is down 209 points and nasdaq off about 2%, how about a good bond fund and one of the best managers in the business, steve walsh. about 10 billion in assets under management and 4 morningstar stars. do you think that your little niche of the market, high yield, basically, that's an area you concentrate on, can outperform equities next three to five years? >> i do. i think it's a great investment for people to take a look at today. fortress-like balance sheets with corporations with

managingful deal leveraging over four years. positive credit fundamentals and spreads. spreads off treasuries of 675 basis points. it's 8% today and for us longer term that's really good value in the fixed income. >> managements with fortress on the balance sheet and i asked earlier, sometimes those managements can mess it up. they can do bad things with that cash. >> they can have anti-bond behavior. stock repurchases. need to pay attention to that. but at the end of the day, you still get a basket of 8% high yield bonds. >> where are you in the treasury market right now? you said earlier offline to me that this in your view is not the time to take on a lot of interest rate risk and that would certainly seem to be the case. >> treasuries represent an insurance policy of investors. people concerned about europe and maybe a hard landing in china or even a reemergence of slower growth in the u.s. and hold on to treasuries. our viewpoint is that's an

expensive insurance policy. a 10-year treasury at 160. negative reyields in the u.s. to 20 years and the protected security for 10-year maturity is negative -- >> back to high yield, where are you finding the best values right now? in what industrial areas or what parts of the world? >> we like energy. one particular area we like in the marketplace and also kind of a higher risk play would be the home building sector. and not a lot of people are convinced that housing industry turned around but we do find good value in the home building sector. taylor morrison is a company we like. the second thing is down the credit spectrum. the average high yield bond yields about 8%. triple cs is 11.5. that's a pretty attractive yield we think in the marketplace today. yes, taking more risk but the assessment -- >> put on the under armour for that. >> you're paid to take the risk. >> thank you very much. continued good luck to you.

>> thank you, ty. folks, back to you. >> all right. tyler, thank you very much, sir. next, the business of burgers with the ceo of red robin. >> what do they think of the government imposed portion control? those questions and many, many more coming up in a second. ncer ]e a what if you had thermal night-vision goggles,

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coming up, oil prices going lower with stocks. oil below $80 a barrel for the first time since last october. is there an opportunity or will prices keep going? what do facebook and two years ago's flash crash have in common? they both have severely affected investor confidence. we'll look at what if anything can reverse the crisis of confidence? talking with vanguard founder and banks hot this month and a laggard today. time to bail out of the hot group? we'll see you at the top of the hour for the always predictable last hour of trading today. >> we sure will. thank you so much for that, bill. back to the new york stock exchange to see director of

floor operations. ben, what do you think is the main reason for selloff today and do you think it's justifiej? >> they call me big ben because i'm right like a broken clock, twice a day. today the pmi numbers major motivation to take us to the lows we are. you just got piled on, from one country after another and then the philly fed number didn't help. goldman sachs lowering expectations for the market. we broke through the support levels and now here we are near the lows of the day. >> is there protection? >> pardon me? >> is there correction protection at the moment? do you make money still? >> i think that most professional traders i talked to for the last two weeks believe that the idea was to short any rally but that was a very painful trade to live through and back to where we were at the beginning of the month. so that -- with that being said, i was -- i believe that the s&p was headed towards about the

1275 level before it was a safe opportunity to buy. but if you're trying to trade around a long position, shorting them, you're giving your stocks away a little bit early. on the downside, if you're an investor, not a trader, we're traders. if you're an investor, this market you should in my opinion be adding to the portfolio. not when they're rising the way they have been. >> absolutely. panic is not an investment strategy and the vix up 13%. thank you so much, ben. >> pleasure. right now let's welcome a new face to the program, steven carlie, ceo of red robin. they have been growing like wildfire. welcome back. thank you very much for coming. we appreciate it. >> thanks, brian. >> listen. you guys have been growing like i said except for the last couple of months been a little tough. industry traffic data suggest same store sales are down not just with you guys but with the industry. does that tell you bad things about the consumer? >> you know, brian, the consumer is in a tough spot. they're a little bit skittish

and volatile and we have been able to stitch together six straight quarters of earnings growth. we did it allowing guests to add on appetizers and desserts and a beer and taking a quloes look at the efficiency and effectiveness. >> a report said the guest count is negative for four straight quarters. that said, you have the loyalty program and ramping up. is it working to get more guests through the doors? >> sure is. we're up to 1.7 million users and allows us to market directly to them in a way that's much more cost efficient and we can offer them a sneak preview on a new product or a red robin surprise and delight, a free shake coming in. that helps us with traffic, the. >> when the consumer is strapped, they get choosy and picky. they want the value and the most for the buck. there's data suggesting it's hard to differentiate a tgi friday's or chi chis or red robin. >> we spent more money on

consumer insight and research than life to date and -- >> why? why so much now? >> we wanted to understand the answer to that exact question and we found autothat we clearly are different yated with the nature of the family offering. wear welcoming and wonderful place for families. kids feel welcome and plus of all those folks we have the most approachable check average. >> trying to offer quantity at a quality price and also feeding in to the obesity of america? there's one big advertisement on the website, $6.99, a burger, bottomless fries, great in the difficult times but also, not so great for the waistline. >> well, we found the bottomless fries is a contribute or the to the value equation. but also, remember, you can get bottomless broccoli or apple slices. >> how many people do that? over bottomless fries? >> the key is we believe in

consumer choice at red robin. >> okay. >> we want to give healthy and indulgent things to choose from. >> you look around and see people eating -- here's the bottom line. if you know this, you have to offer it. you have to offer it these days. if you don't, the competitor there. you look at new york and i just had actually, you know, drinks in atlanta with a friend of mine as an executive of coca-cola and talked about this fight against sugary drinks. it seems clear, only a matter of time before congress comes after the restaurant industry. >> you know, brian, we have been offering and believe that red robin in nutritional information and have for years. >> but doesn't matter. people don't self police, do they? >> many, many consumers do. >> does the calorie counts on menus change behavior? we said it doesn't. >> we believe that consumer cans make the choice and much better from a personal accountability standpoint than they are getting legislated and we want to make sure they have the right choices. >> i'm not being tough. i would ask it of any ceo in the

restaurant strain saying we think it will come at some point and you will have to have the response. right? >> yeah. >> soda industry is under the gun. >> we'll comply with any legislation that comes out. but as we have seen and labeling is placed on menu boards, consumer haves the capability of making that choice. that won't change. >> hopefully the right choice. >> will you get a manhattan store? 'we are looking at manhattan right now. we are surrounding manhattan. we are in long island, new jersey and we are looking at the but rows. >> she doesn't have a car. you don't walk more than three blocks from the penthouse mansion. >> i don't walk. i scoot. >> i live in new jersey. thank you. >> terrific. >> thank you so much for joining us today. day two of the heat wave. plus, we'll head out to the fields. our investigations team looks at the fraud on the farm. in here, every powerful collaboration

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it it is only the second day of summer, but do we know it already. the heat is on and much of the country is dealing with record temperatures. the east coast is hot but nothing compared to out west,

triple digits there. mike seidel is in new york's central mark, in relief in sight? >> late tomorrow. it will be much better by saturday, and next week is lo looking chilly. kennedy airport here in new york has broken a record at 96. so far we're up to 92. that is really not that bad. the record today is 97, we'll see if we can make it. it's a hot sunny day, the humidity could be worse, the heat index is only a degree or two above the actual temperature. tomorrow we're still cracking 90 and then temperatures heading down and really comfy weather next week.

>> the fed is using some of the technology that tracks this heat to fight fraud on the farm. fraud on the farm? >> it happens everywhere, and if it happens we will find it. it's a big deal. just actually in the last hour, the senate has passed a new five-year farm bill that will expand the federal crop insurance program. if the house goes along, that program will jump to more than $10 billion a year. before the expansion, crop insurance fraud is the hundreds and millions of dollars a year. we found from the guy that cracked that case that finding those kinds of frauds is not easy. >> farms are located in rural areas, there's nobody walking up and down monitoring or a policeman on the corner. >> but there is dr. john braun.

he helped crack the case of robert warren. >> you've seen the movie "dumb and dumber." they spread ice cubed and claimed it was a hailstorm. >> i saw a sliver of red on the field, and it was clear evidence that it was a scam. >> he uses satellite imagery and a gps to help prosecute. >> just nothing but weeds up there. in california, kyle needed satellite images to prove a farmer guilty on 16 counts. some of the properties like this alleged wheat field for that remote. >> it was pretty obvious, and the pictures that we introduced in trial, i think the jury was able to see right away as well.

>> as effective as these tools can be, the usda is not using them enough. >> they have the tools, they're not maximizing what they could be doing. >> dr. browne worries about what can happen when the insurance program is expanded. >> if there's more money available, there's going to be more people out there. they're going to be out there and looking for loopholes and schemes to take advantage of that money. >> crop insurance is also unpopular with environmentalist that say it will cause overplanning and is a give away. the industry trade group says crop insurance is the crop management tool of choice because it works. we have more about this on cnbc.com. >> thank you for that, scott. coming up, living the high life with no strings attached. we'll talk sky high rents of the

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[ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. see your lexus dealer. sign a sign of the times, we're reaching all the way to the penthouse. robert frank is here to talk really rich rooms. >> yeah, if you think rents are high in your neighborhood, look at rents for the super rip. there is a new wave of properties around the country that rent for $100,000 a month. that's right.

these six figure rentals are townhouses in manhattan, and beach front mansions in miami. the numbers are growing and there are dozens of these big mansions and demand from the rich is growing. this property in palm island, yam, rents for $150,000 a month. it's currently occupied by a saudi family and their entourage. in soho, there is a 13,000 square foot apartment rents for $14,000 a month, and beyonce used it to film a video in the indoor pool. it's everyday rich people that just want a short stay in a huge home. they want to entertain, want big parties, but they like the

privacy and security offered by their own house. in miami, the saudi family said they would have to rent 159 h rs for their staff, so it's a deal. >> if you have that much staff, what else will you do, it's completely understandable now. i didn't understand their hardship. >> is there anything telling about the economy here, are they so far up in the stratosphere that they're discontinued? >> housing inventory at the top is getting tight. if you're looking for a short stay, there's a short supply of houses to purchase, and for a lot of these people, say they there's nothing i want to buy right now. so demand at that