technically, a bad way to go. don't want to end the day on the lows. >> fed coming out tomorrow. >> that will do it today for "power lunch." thanks for being with us today. >> "street signs" begins right now. see you all on closing bell. it is the dog of the dow. hewlett-packard down big this year. lost $90 billion in value in just over two years. is a breakup the only way forward for old hp? we will dig in. scranton, pennsylvania on the brink of bankruptcy, just the latest government in trouble because of an out of control government project. former governor ed rendell to explain. and the tip of the coal collapse iceberg and why pandora is real. you just saw mandy on "power

lunch". here's how we stand. the dow is in danger of losing a tuesday trend. it has listen for the last six tuesdays in a row. it is down today. trying to avoid a fourth consecutive day of loss. the nasdaq has been the best performer of the three in recent weeks. it is down for a third straight day after having rhysen for four consecutive sessions and 6 of 7. let's begin with a look at the biggest technology company in the world by annual sales. no, that is not apple. not yet but probably the end of this year. that title is still held by hewlett-packard. yes, hp. hp has another title the worst performing stock this year and the past 12 months. that is not all in the spectacular slide. take a look at this special hp history. stock all time high, 6809 in

july of 2000. september of 2001, the infamous deal to merge with compaq and carly feorriorinis stepped down 2005. and the high of the past decade at that time, kids, hp had a market cap of $108 billion. ceo mark hurd stepped down in august 2010 and leo apotheker stepped down and meg whitman named ceo. the stock now 19 bucks and change and the market cap $38 billion. let's put this another way n. from its high, hewlett-packard has lost about $90 billion in market cap. more than 90% of the s&p 500 doesn't even have a market cap of $90 billion bucks.

stunning stats. is the time ripe for hp to be broken up? joining us, senior research aren't analyst at baird and our own jon fortt. should hp break up into two or three separate companies? >> it's a fair question. the sum of the parts is greater than the whole. it's not the time to consider as alternative. they created a lot for stakeholders over the past couple of years. partners, shareholders, a lot of confusion around the alternative pc division, the event that was web os. the autonomy acquisition was overprized. meg needs to show stability and direction and consider alternatives in the future. >> let me take it down one more step. what is hp today? a printer company?

services company? >> all of the above. >> what does it do well? >> they have breathdth. what they need to do is integrate all the disparate technologies they have. there is a commodities side that's challenged, pcs and printers, need to merge costs there and trying to cut costs, streamline businesses. the other side of handicap is much more strategic. >> it's all a mess right now, isn't it? the way i see it, tell me what you think of this, this was still the company mark hurd was building however you feel about that. when i was studying the company when he was changing things around, there were three parts to it. one was what he called the single version of the truth, the back end, wanted to tie all the systems together and brought in randy motte he had worked with at dell and other place,

walmart. he was trying to make the compaq thing going and services and sales leverage, once you have this huge portfolio of stuff, go after proctor aer&gamble and no just pcs but not only having an a salesforce but services contract. when that whole thing falls apart, they're not doing anything well, what a lot of people say is happening right now. >> jon jay son, is handicap right now too big to succeed? >> i don't think so. where cloud computing and analytics takes you, it's nice to have server and storage and network and infrastructure software and services all tied up in a nice package to deliver to the enterprise or to a cloud service provider. >> jason, pardon me for

interrupting, what is the market mi missing? 90 billion in market cap lost wiped out in two years. >> the market is not missing anything. hp misexecuted and confused a lot of people including investors and need to show better synergy. >> you said the value may be greater than the sum of its parts. have you done any analysis the fair value of hp should be. >> you take rough matt and look at hp as four or five or six different companies, you see 40% more value there if you valued those independently. again, still, i would rather see meg show stability and direction for the foreseeable future. >> thanks. stick around. let's bring in another company and another voice. mr. herb greenberg is here, magically appearing.

we want to talk about research in motion you owned me on last year. the stock down again, as you can see. >> a note, probably one of the most five negative notes i have ever seen in a company. any hope for rimm? >> in my position as reporter i never say is there no 0 hope until all the lights are off. what it takes to turn a company around, it's really tough. usually, you see them stop entire things they're doing. laying off massive numbers of people. the fact they're losing shares rapidly and in a spiral to what hewlett-packard is in a number of divisions, it's really tough. >> they have a blackberry platform most people at this point are morphing to something else. i think one of the worst things you can hear if you're rimm, brian, me, you, at cnbc, can use

our iphones, get our nbc mail because it's now part of that enterprise. that is in the end, to me, the death nail. >> it's horrible but worse than that, they're talking so much about blackberry 10, this new platform they're coming out with. not only does it not arrive for another six months, it's not going to be a really significant portion of sales for another year after that n. they shouldn't be talking about it so much. >> can i say one quick thing? one of the things they said at their annual meeting, they will make changes on the board. that's the last thing that even matters. that's way after the fact. >> morgan stanley note, more news on jc penney. headlines it is down 43% this year, they will be laying off 350 workers at their headquarters. ron johnson saying we have simplified processes, removed unnecessary work and reduced lay

others to help us make faster decisions and while difficult, in best interests of jcp and stakeholders, not in the best interests of the 350 people. >> i don't think that's a surprise. we knew he would be doing rationalization. >> and we show from credit suisse. back to rimm. the morgan stanley note, if the new blackberry 10 utilizes services on other platforms, rimm is likely to be paid much if anything for those services and therefore, their primary revenue stream essentially gets whacked or goes away. >> . >> that was part of the problem when they started going after the consumer market where they didn't have an echo system build up. >> the phones have different names. >> they went into the consumer market they didn't really have a protectable position. now, part of what they're

talking about is going back to the server and trying to build. they don't have nearly the revenue. it would be tough. >> their server idea is dead. if it becomes a hardware company, it's just another hardware company. where a's the value? value not to have a black board but patent technology, a lot of people think that may be something. >> we don't want to be all negative the start of the show 10 minutes in. they killed it the last couple of years. listen to what the hedge fund manager david einhorn had to say about apple. >> think the stock is very very substantially undervalued. it's the best big growth company we have. the dominating brand in the area that it is. it trades at a multiple below the average in the s&p 500. i think that's extraordinary. >> i will just lavish the love on apple, i won't just lavish the love. if we're going to be critical,

we will be critical. it hasn't been that great on services in general. siri isn't knock ag lot of people's socks off. have to deliver on the suite of i-products. and wondering if they can do that well. if they can't, other folks will have a chance to do something. >> is rimm's loss apple's gain? >> i do think it's apple's gain, android's game, everybody's game. you can't knock apple off. the products are great. when you boil it down to that -- we talk about early adopters, those beyond adopters are getting involved because it is one of the easiest games around. >> you know why apple is great? because they don't have 72,000 phones with 200 different names. qx 7517. one or two products. i gave one to my mom for christmas, a mack computer a

couple years ago, plugged it in, it worked. >> people underestimate the breadth of what apple built. the retail stores, you can go in, get your stuff taken care of. they have relatively low wage employees but gives them a footprint defenseable. there's only one spot in grand central terminal you have it. am has it. we will have the market flash. watching shares of huron consulting. it expects the latest health care law in the united states to boost demand for hospital consulting. for health and education segments, they brought in two-thirds of its revenue next year. >> coming up on streets signs, maybe this little bear on the

loose has a case of neurosis. revv up the bear case with the euro. sounds like a storyline with the office n. this is no joke. scranton, p.a. scraping by. it had just $5,000 in the town till. former governor ed rendell is here with his plan to ease pennsylvania's pain. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550

we are at session lows, not a huge hit but down across the board. that cummins own gin forecast is making its way across the market. an economic sensitive if not leading stock because they build engines for stuff when you want to move goods around because you expect things to be getting better. cat pkattecaterpillar is droppi sympathy, one of the more important leading economic stocks out there, cmi, don't discount that news. to the trading floors. i hope i didn't steal your thunder on cat and cummins. we probably should hit more, a big story. >> no doubt we're looking for signs of strength and weakness. cummins, it is huge and you saw

caterpillar. jc penney and amd swung to 14% in revenue guidance it's huge. in the wake of that, you see us down to the lows. you see the swings and what's happening in the last hour. talking cummins was a good indicator, the darling in many pockets is housing stocks. look at kb homes intraday, up more than 1% at one point and back down towards the lows. down around 5%. it's not even the weakest of the housing stocks. f look at this one, down 7.5% and a lot of them have done very well in 2012. we talked about corn and the price has skyrocketed. it's down today. i love -- you have a sense of

humor, jpmorgan's note was called children of the corn, scary times in proteinville that downgraded tyson and s&p and estimates on smithville and sand sanderson farms. corn is up 40% in the last month. how can you not be affected by that if you rely on corn to feed your product. >> i'm all ears also and appreciate a corn joke. now, to the radar at the nasdaq. no corn jokes. >> no corn jokes. tech stocks lagging, not so chipper news pun intended from the semi names, advanced microdevices, sluggish in europe and it could knock 15 to 20 cents off its full year eps. and intel trying to beat the slow down by putting its cap to use with a ditch maker to strengthen its foothold in the

smartphone business. edge fund guru telling us he's a bull on the stock but shares of appl apple.3. overall, tech stocks lagging today. thank you. >> thank you. let's talk more about these markets. we hit the cummins news, kat caterpillar news. pretty much everything is down. there was an article about the fiscal cliff. because so many people are talking about it, hearing about it, we may be actually bringing it forward because we're paralyzed from lack of confidence. in other words, the fiscal cliff impact may already be here. let's discuss that, europe and anything else we can in our short time. i thought that article was -- i don't know if you had a chance to look at it. the idea basically is, hey, we're so worried about it, we're climbing up now, the fiscal cliff is already here.

agree or disagree? >> i agree. the market is anticipating the fiscal cliff and saying either cuts in spending will happen in an in ddiscriminate action and won't have much resolution until january. if you know that for sure and markets anticipated, i expect third and fourth quarters will be very difficult for the equities market in anticipation of the fiscal cliff. >> we had some more optimistic in the second half in large part because of patterns, weak summer and in the fall and winter, expect things to be cleared up. you disagree. why? >> there are two big defensives, this year we have a presidential election we did not have the past couple of years and adds to the overall uncertainty and essentially policies not moving forward, one big issue. second, believe the europeans are going to come to the end of

the road regarding kicking the can. once that is finished and take the step -- if spain has to be bailed out, not just the banks, the government has to be bailed out within the next two to three months and if that happens, you're ainu situation and the crisis comes to your shores. >> i will be like from the usual suspects on you. i know you're negative about europe and worried about the u.s. fiscal policy. we have china problems. if you had to be bullish on u.s. equity, somebody said you had to be bullish, how would you do it? >> in what respect? >> make the bullish case for stocks if you can. >> the fed started raising interest rates. actually, the market started setting interest rates. instead of this zombie situation the fed is replicating japan on to u.s. shores. if we saw debt restructuring instead of debt refinancing

particularly in europe, i would get extremely bullish. we need debt extinguishment but not refinancing, debt paydown. that is choking growth. >> what are the odds that happening, the president touting his tax plan a couple percent on our deficit. where's the other 90 coming from. i went after gene sperling a bit on the show. i didn't get very far. i tried. any chance of that happening? >> no, there's not. politically, you don't want to tell your constituents it's time to take tough choices. for some reason policymakers don't want to tell bondholders they have to start taking loss. that's the crux of the problem with the european banking situation. until we see debt restructuring, this debt crisis is only going to continue. >> peter has talked about japan a lot on this show. if the u.s. economy in japan,

dow, are we in for a decade sideway, if not down? >> dow is down or could be down. i don't think it is going to be a nikkei for two important reasons. one, i think the u.s. borders, u.s. government will take much action much faster than the jpds administration. >> what action? >> what needs to be done is structure and changes. i agree you need a debt reduction. that's what i've been saying. in order to do that, you need first a crisis. you need a moment of capitalization on the european side which hasn't happened yet. when that happens, there is a big drop in the european market. on the u.s. side we need changes such as reduced entitlements, longer retirement, longer time before requiremetir various changes difficult to do before elections. if you look what the germans did to achieve it. they started in 2003, got a then chancellor defeated in elections

in 2005, which is why it's very difficult politically to achieve it in an election year. i think it will happen later. >> i will end it with you. both sides of the aisle, republicans and democrats, not all but many of them, i believe, will be stuck in that paradox where you don't get elected telling people what they're not going to get, even if we got a gop senate or gop president, do you honestly believe they will make the kind of cuts we need to get back to real debt paydown? that road we kicked the can down can be awfully long if people keep buying our debt. >> right. the only way that tough choices have to be made is when the bond market starts to revolt. right now, the u.s. government has gotten a free pass with the help of ben bernanke sanctioning it with his policies to continue what they're doing. the u.s. treasury market needs to revolt before any tough

choices in d.c. occur. >> petter and sre. thank you very much. i think i will go play with the cars on the road. this all-star is up but is facebook going to give it a run for its money? and we're close to revealing the top state. not virginia. >> any thoughts now that you've trashed my home state? >> things happen, brian, what can i tell you? all those big topics, every state has a stake in that and why those rankings are very important. it does get interesting. we mixed things up a little bit this year and the runner-up is coming up when "street signs" for top state tuesday comes right back. ♪

♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection.

mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. in here, every powerful collaboration is backed by an equally powerful and secure cloud. that cloud is in the network, so it can deliver all the power of the network itself. bringing people together to develop the best ideas -- and providing the apps and computing power to make new ideas real. it's the cloud from at&t. with new ways to work together, business works better. ♪

and then there were deuce. we're up to runner up. scott cohn is in the top state he will not give away but ready

to reveal the runner up. scot scott. >> all right, brian, we know now some surprises. state number 5, north dakota, number 4, north carolina, number 3, your home state of virginia. let's continue now, state number 2. >> utah, beehive state is buzzing, rising to number two this year from eighth place last year. utah scores 1573 out of 2500 points. utah makes the top 10 in 6 of our 10 categories this year, doing best in cost of living it came in six. but utah suffers from one of the worst education rankings in the country, 45th, class sizes are high, spending low and test scores mediocre. unemployment in utah, just 6%. the individual and corporate tax

rates are 5%. the state sales tax, 4.7%. utah's largest private employer is in ter mountain health care, a nonprofit system of hospitals and clinics, serving utah and idaho. the largest industry is financial services. >> you don't often think about utah as a businesses powerhouse. it's always been a contender in our first study. in 2007, it came in number 3 and the governor back then, jon huntsman. remember him? we will reveal the top choice at the close of business, giving you our diabolical hints and i'll run through them. great expectation, legendary lights. you've got the power, you say pecan, i say pecan. our final hint is what the hay? what the hay? we will reveal america's top state for business coming up in

the closing bell, hashtag on twitter for top states. and topstatestopstates.cnbc.com. >> is it guam? >> not a state. >> i'm out. i had guam in the pool n. thanks very much, scott. see you soon with number one. next up, we are street talking with herb on tap. more pain for jcp. the street showing one stock a lot of love today. the disaster down nearly 42% today. not only does he want to slash soda size, manhattan's mayor wants to downsize already minuscule size apartments, jail chic. and so too is the summer event.

now get an incredible offer on the powerful, efficient c250 sport sedan with an agility control sport-tuned suspension. but hurry before this opportunity...disappears. ♪ the mercedes-benz summer event ends july 31st. ♪ you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. would you mind if to be i go ahead of you?omer. instead we had someone go ahead of him

and win fifty thousand dollars. congratulations you are our one millionth customer. people don't like to miss out on money that should have been theirs. that's why at ally we have the raise your rate 2-year cd. you can get a one-time rate increase if our two-year rate goes up. if your bank makes you miss out, you need an ally. ally bank. no nonsense. just people sense.

st. talk time. mandy is back tomorrow. herb and i today. we will talk about j krrc penne.

their old motto about doing it right. credit suisse whacking them today saying second quarter sales likely to come in worse than first quarter sales. 350 jobs axed at headquarters, stocks down 43% in the last three months. >> you can't cut your way to prosperity. in the case of jcp, you knew if i say it enough, this would be one of the hot stories. it was a hot story, just not the way i expected it to be. i think in the end ron johnson and people around him brought in by the company were so taken by the apple persona, never mind what happened at target, i said this recently on air, it really was steve jobs working with ron johnson on this thing and maybe you almost became a legend in your own mind, maybe this works out n. >> i will doing something to the incredible annoyance to my whole team that does this show. call up an audible. can we bring up navistar? nav? the cummins move has been moving

the market, big engine maker whacked dow component. caterpillar and we we strutted over here, talking about the negative impact. >> it was down 9% earlier. you say if this news on cummins their guiding down is bad for cummins, one of the good guys in this space, what does it mean for navistar already hit? >> and cummins news is driving the market down. the market was down and really started to go down when everybody started to digest about cummins and who cares about cummins? my gosh, it's a leading economic indicator, it's whacking a dow component, katcaterpillar. >> you had a tailwind for a while, they were all in. this is significant. >> this news is odd, go 10 minutes on the radio listening to business news, all you hear is trucking company hiring can't find drivers, obviously hiring or growing.

>> in the middle of the day? odd in itself. >> let's skip pandora. >> you can't skip pandora. you got to do pandora. >> i can do what i want, sir. >> got to do mbia. it's too complicated. let's go to pandora, you're complaining i don't want to do it. the stock is down. here's what's interesting for pandora. listener hours for june came in at slightly over a billion, up 77%. why is the stock down 3 1/2%? >> because the month before it was up 87%. the month before that, it was up 87%. before that 88%, before that, 100%. the growth is starting to slow and gives people a reason to actually, i suspect get kerc concerned -- >> on vacation, i tested out spotty fi's radio. i didn't like it. the music genome didn't work as well. tai were playing some band i didn't like, every brothers, i hit thumbs down.

the same band came back up and i went back to pandora. >> i agree. into the run for -- not a 61-year-old ceo, a guy who was ceo for 61 years. >> he was 97 years old. he died about two weeks ago, one of the oldest ceos of a public company. >> who's older than him? >> today i had a piece in cnbc.com about five potential takeover targets including 10 hackle, very good. it is one of those companies, cubic. he owned 38.7% of the stock. the company told me today they will be making an announcement regarding that stock going forward. foundations, charities, a lot. when you have that much stock overhanging the company, his son, 65, owns 7.1% of the stock, you don't know what will happen, when that's put up, what will happen to this company, very good defense contractor. >> at 97, he led a long solid

good life. at his desk, kudos to him and thoughts to his family. let's go to sharon epperson and talk about oil. how did oil close? >> at the loaves the session. below $84 a barrel. we're looking at brent crude prices below $98 a barrel. it includes prices that got worse as we got towards the close. a lot of traders say it was because of weakening equity market and the negative sentiment that surrounds the woes is impacting some futures market. we're seeing much liquidation in options. some futures may be impacted as well. we'll continue to monitor the situation. snow thank you. linkedin has been on a tear this year, the stock up about 58% so far. facebook, they really want a piece of the jobs networking business. should linkedin and its investors be afraid?

joining us a senior analyst, has a buy on linkedin. michael, should we sell? because facebook wants a piece of this business? >> hi. i don't think so. i thinklinkedin has a very bright future and facebook has a bright future, i think in a different area. most people and employers view facebook as a social network for your personal life and linkedin as a place for your professional life and should stay separate going forward. >> it may make logical sense now. the reality is we don't know about the future. we don't know how this is all going to shake out in this future and we don't know how that social and professional is going to mix in the future. >> you have a point. i do believe for the higher income career minded professionals, they're going to gravitate towards a professional network. one data point you can look at is the existing apps on facebook catering to job listings have

really been on the decline. the biggest one is branch out, got off to a meteoric start and their users are down about 80% the last few months. >> isn't this a case first user advantage, with a brand like this takes you a long way? >> absolutely. linkedindefinitely has an advantage here. when you and i and other professionals think of going to a network noenhance your career. you think of linkedin. when you think of enhancing your personal life, you go to facebook. >> great cover story a couple weeks ago about linkedin. did not know they were so big into the seat licensing business, 8,000 bucks for recruiters. it was more of a sales company than technology company. if that's the case, why do we value them at 50 times earnings, as you do and $135 price target? >> the valuation is definitely stretched on linkedin, but one

of those companies you can afford to pay a premium for. they have several products on the horizon that could add a lot to the size of the company today. they have done a really good job of productizing ideas that leverage the member base. the salesforce navigator just on the horizon but not big in the numbers yet but a way to allow sales people to leverage their linked in network to generate more sales leads and could be a big business for linkedin. >> $135 target at a buy. thanks. now, to jackie deangelis. >> thanks. one you will appreciate, herb, i'm not so sure. looking at shares of hertz today. the company will allow its customers to rent porsches in select california and nevada markets and doesn't even cost that much on a weekend day, you can get to a porsche as low as $250. >> which one, jackie?

if it's this box ter, you, is this -- ee, is that a reel porsche? >> probably not. we are down 2.8% despite that good news. >> when they get the gtrs 3 on the hertz lot, give me a call. coming up, a sunshine stock for all you x-men fans out there and disaster in the making, another pennsylvania town. before we go to break, a quiz, which states s&p 500 head quartered companies had the worst stock performance the last year, the worst state for the stock market in the past year. here are four of the bottom five states. the worst, next. a passionate, and the foundation on which merrill lynch has been built. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before.

a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

in honor of our top states for business coverage on cnbc today, we asked you before the break, which state has had the worst stock performance of the s&p over the last year, based on the companies that are based there? it's kansas. kansas. that is due primarily, herb, to

sprint, down 40% in the past 52 weeks. you can see the other worst stock performing states. it's going to be on closing bell in an hour, 42 minutes, 51 seconds. after cut iting, the stock was fire earlier this year and was an all time high in march. herb, you have time for one line. >> they just didn't sell enough robots mostly for knee surgeries. they expected to sell more. this is so classic. the key is what they said on their earnings call, now that the early adopters, think about that, the early adopters have bought what they're going to buy, we are finding a growing number of potential purchasing

requiring buying from a larger number of surgeons to support the return on investment. that is quite a statement. when these companies have been soaring like this. the reality is you have to find a market once the earlier doctors are there. they're telling you that and a great statement. >> that was quite a one-line. a nice job getting it in there. >> herb-jacked the show. wolverine worldwide, wwww even as earnings came under streetexpectation, sales were encouraging. 40% of its sales come from a magical place called europe. up next, another pennsylvania town running out of money. scranton, home of the fictional fi firm, but unlike "the office" on tv, real jobs on the line. former governor ed rendell is here about how to fix some of these problems. tdd# 1-800-345-2550 the 5-day moving average just crossed above the 20.

tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 the spx is on my radar. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus. tdd# 1-800-345-2550 i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones to help me find tdd# 1-800-345-2550 possible trading opportunities quickly. tdd# 1-800-345-2550 i can also bounce my ideas off their trading specialists - tdd# 1-800-345-2550 on the phone or face-to-face. tdd# 1-800-345-2550 and i can trade wherever i want, whenever i want. tdd# 1-800-345-2550

tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 hey... a breakout on a head and shoulders bottom! tdd# 1-800-345-2550 that's what i'm talking about. tdd# 1-800-345-2550 open an account and trade up tdd# 1-800-345-2550 to 6 months commission-free. tdd# 1-800-345-2550 call 1-800-540-9872 tdd# 1-800-345-2550 and start trading today.

all right, tough times in the keystone state. scranton on the brink of bankruptcy. joining us now is ed rendell,

governor, before we get directly to scranton, patriot coal does not operate there, it is vital to pennsylvania, and how do they get out of this? >> we have to have a comprehensive energy independence act in this country, and every form of energy home grown in america has to be. and clean coal is not a myth. we can't have clean coal. we can capture carbon and sequester it. is there an economically feasible way to do that. the bush administration set aside almost $5 million in the next generation project to see if we can do that. it's not only important to pennsylvania, it's important to america. if we can find a way to use coal

in a clean way and that's by capturing and sequestering, the sky is the limit. >> we thought pennsylvania would benefit in a big way, a lot of people don't like it, but economically it would be very good. does pennsylvania support it? >> absolutely, we did when i was governor and we have under governor corbit. some of the areas that were coal producing areas are areas where there's a lot of sheal. i know the environmentalist don't like to hear this, but you can control the fracting process. it's a huge opportunity for this country and we have to make sure we take advantage of it. >> scranton, the latest

pennsylvania town to be hurt. harrisburg we know about the trash incinerator, and another because of an arena, what's the problem in these towns? it is many things that lead up to the problem. they have to invest and build, sometimes the projects are ambitious, but what we have here, the major filed a budget with the recovery plan that's required by the act that scranton has been under for awhile. the major vetoed it and as a result, the banks who will traditionally step in and give short-term loans, the $16 million they need to operate, the banks opposite of the recovery plan need to lend scranton the money. this is as much a political

problem as an economic problem. it's also the food chain program. the federal government gives less money to the states to do some of the traditional welfare type things and safety net things. the state then gives us money to the cities and the counties to do it and the cities are usually at the bottom of the food chain. so cities are suffering. cities all over are suffering because of that food chain effect as well. >> harrisburg was blocked from filing because of the pennsylvania constitution i guess, but do you think that we'll see as much municipal filings. >> absolutely because of the chain that i've been talking about. local government has to be as cost effective as possible.

we have to realize there is an effect. when they cut spend e.g., the state gets less, counties and cities get less. that's less police, firemen, this, and that. we have to determine what we want for our city. the first -- the ball is in the court of the local government. they have to understand that we're up against it economically. it's nobody's fault. it's not their fault or the workers fault. and changes have to be made. >> thank you for taking some time for us today. >> up next, how new york city has given new meaning to shoe box apartments. if you live in any place but new york, you'll want to see this story.

y. you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem.

you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance. on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? if you made a list of countries from around the world... when you open a new account or roll over an old 401(k). ...with the best math scores. ...the united states would be on that list. in 25th place.

let's raise academic standards across the nation. let's get back to the head of the class. let's solve this. >> we leave you with this. michael bloomberg wants to build an entire building of stoud owe apartments. they would all be under 300 square feet. they're called micro square feet. right now they're required to be at least 400 square feet. it would be the size of a typical jail cell. tokyo chic perhaps. around the office i'm known as mr. nice. i'ea