tomorrow. >> thanks. >> sue, that will do it for "power lunch." welcome back. >> thanks. i appreciate it. it's good to be back. "street signs" begins right now. have a great afternoon, everybody. and welcome to "street signs," everybody. it's unlucky seven for stocks, anyway. seven down mondays in a row. can you believe it? what gives from the weekend? americans love of low interest rates is no secret. but 4% mortgages could crush housing five years from now. we'll tell you why. herb with a new name to the worst ceos list. this guy is not doing it right and you can blame martha a bit. and must see tv. shocking video of china steals yet another american record, mandy. >> you have to stick around and watch that. let's look at what's happening in terms of the market today. it's not happened in ten years

but doubtful anyone on wall street bragging about it. if the dow falls today, it's the seventh consecutive monday decline and that's not happened since may of 2002. as for the s&p 500, also suffering a bit of a monday letdown. like the dow, down for a seventh time in eight sessions and the tech heavy nasdaq down for a sixth day in seven. green mountain coffee is the biggest loser. definitely pulling that index in two different directions. brian? we'll get back to stocks in a moment but let us talk housing to start the week. right? who doesn't love low interest ra rates? buyers and sellers love them and the realtors love them. but is there a big downside to all the low rates?

my theory is this. low rates could slam housing in a few rayears because people wot move because they don't want to take on a new higher rate mortgage. look at this chart that our team put up. this is really fascinating, folks. on the younger side an you hear your parents, i walked a mile in the snow and paid 10% interest. they weren't kidding. look at that. 15% on some mortgages back in 1980. and then the 1990s. and the -- notice a trend here, folks. like the bunny slope. just keeps going down, down, down. maybe a grand parson's reference there for you, as well. are low rates a real threat longer term jamming up everybody in low rates or is my theory complete garbage? let's ask melissa comp and susan walker and steve liesman on and, professor, we'll begin with you.

from my notes, you agree with my theory and i like to start off with people that think i'm right. am i right? >> you are right. there is right now dependency on the low rates a when they pick up that's when we will have this stay where you are phenomenon at the same time, of course, to discourage further borrowing. a spike in rates not for a while but it's a future risk. >> is there an upside, though, melissa? i mean, is it all downside? is there a potential upside to this? >> people evolve through life. they get married. they get divorced. they have children and interest rates are not necessarily going to define their purchasing and selling needs in the market. so, you know, we have seen with interest raits even when they were at 15% people were buying and selling real estate and the phenomenon will continue because people live their lives. >> melissa, i agree with you. people buy homes not on the price, they buy homes on the

monthly payment so as payments go up because rates rise, home prices will come down also hurting housing potentially. >> well, but the other issue is that if people don't sell because they have locked themselves in to fixed rates, they're not able to move and then inventory goes down and keep prices higher. >> you know, i want to bring you in here, steve. feels like groundhog day. aren't extremely low rates got us in the trouble in the first place and deleveraging from the excess of the past? >> that's part of deleveraging. it's being what's the total payment on that debt in part and in the total amount of debt. yes. we are reducing the amount of debt and the payment on the debt. brian did not give us a third option. he asked right or total bunk. i would say some right, brian, some bunk and the issue becomes -- >> half bunk. i'll take it. >> half bunk, you know. what is overall housing affordability? there's three sides to the

equation. interest rate, cost of the home and the third is income. so if you have an example of a family making $50,000 or $75,000, over time their salary could be expected to rise and so the percentage of that mortgage interest payment of the total family bill declines over time. >> i 'gree but you have reminded us of salaries for the middle class have not risen. >> they have stagnated. >> incomes with lower mortgage interest costs. >> but we also are to deal -- that's the good news. if that's the case. we could have a rate spike without income going up. that's a negative and i want to take steve on a little bit with the deleveraging. we are not deleveraging enough and interest rates are slowing down the process. >> how so, professor? that seems counter intuitive.

>> we have to deal with -- >> susan, just -- yeah. go with susan for a moment. >> yeah. we're borrowing. the mortgages, mortgage debt is not decreasing. it's increasing. and you know, necessarily so. we don't want to decrease debt at this moment. but we're building up more leverage going forward. we're postponing that necessary deleverage so -- >> susan, a moment ago of interest rates start to rise, and you just touched on this. what do you think is the main reason for this rise? risk or a stronger economic recovery? >> well, of course, that's the key question and we all have to put our money on the second that it's a stronger recovery and that will take us out of the problem because if it's a rate rise in and of itself then we have real risk. >> can i show you a little bit of good news? the percentage of all mortgages adjustable rate, it's come down and people are refinancing in to fixed rate mortgages. >> why is that good news? that goes to the theory of

people locking in to 30 years of mortgage and then a 6% mortgage of a 4 and maybe at melissa can comment on this, a bigger home, a higher house price and a higher interest rate and look at that gap and go, you know what? let's just maybe refi and put an extra room on the current home an not move? >> that's what will happen. we are in a global market and many of the key trading partners like uk, like canada are subject to that interest rate risk with adjustable rate mortgages. >> melissa? >> the answer is that if interest rates do go up and people need to have a bigger home, you know, taking a mortgage on an adjustable rate is definitely an alternative. looking at the cyclings of the adjustable rate mortgages they have fared very well for people. and that it's probably harder to refinance your mortgage and add a room and construction financing is almost impossible

to get today and buying a new home, considering the adjustable versus the fixed rate, that's definitely an alternative and definitely a risk in five years if someone's taking a five-year adjustable rate today and the rate is significantly higher, they may run the risk to afford the home if the rate does go up on them in five years. >> i think one of the bunkiest parts of brian's theory here is the lack of sensitivity right now. and again, back when mortgage rates 15%, people were still buying homes. >> buying a home -- >> melissa would agree. the sensitivity of home purchases to interest rates is something that's well in question. >> melissa -- >> it's not bunky. the 50% is inflation of 10% and i hope that's not coming back. >> welcome back every day, professor. melissa -- >> i'm not coming back. >> here's where i could be completely wrong. melissa, tell me if this is one possible. i was thinking about the option of a transferable mortgage.

i understand it's very unlikely because you're tied to a property lien, for example. is it possible to get a mortgage, 4%, love the rate and be able to use the same mortgage on a different piece of property, thus blowing the theory completely out of the water? >> banks tried that a number of years ago. a couple of banks tried to do them and, you know what? it failed completely. it takes away profitability from the banks. you have to make sure that you have like on collateral and the transferable mortgages don't exist. we have to remember that we have the spectrum of adjustable rate to fixed rate and that, you know, people will just have to accommodate the type of loan they take based on where rates are and where the housing needs are. >> great debate. i want to bring in a fourth voice here. rick santelli. you are sitting there listening in and i know you have a view on this. what's your takeaway? will low rates come back to bite us? >> the real argument is not to

do with housing but the corner of the culture of america. upward mobility. and if, you know, we are looking at the world from the prism of the old ways, and not the new normal, there was upward mobility. i remember in the early '80s when i bought my first home, 15.35% and people outbidding the asking price and more about rates, it is about the job, the economy, leaders of the country giving you a selection of mortgages, dodd-frank won't let you pick any mortgage once it's written. adjustable rates mortgages might be more prohibitive and all this discussion is a bit futile because it's not the people with houses and getting bigger ones but the upside down nature, the credit nature of the housing market and this is at the epicenter of why the fed's lower interest rates letting a lot of people refi and not helping housing. it isn't the problem. the problem is the house $600,000 and now $300,000.

give them any interest rate you want. >> are you offering a signed photograph to name the grand parson song? >> no. you know it. >> do you want a free signed autograph of him? >> for the viewers out there cool to know the cool reference he made. >> thank you. appreciate it. bunked my bunk. let's get a market flash now. >> hey. thank you very much. dean foods. with the crop report of a week ago we talked about potential pressure and feed costs and the analyst community on board. downgrading it for exactly that reason. the stock at the lows of the day down nearly 7%. brian, back to you. >> all right. thank you. up next -- >> another case of the mondays for stocks. we are now down for the seventh straight monday. where's your money headed? that's coming up next. wealth gone wild. they were a high roller. big spending. billionaire couple building the biggest house in america and

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ever since mandy got off facebook, it's not the same for the company. back below 30 bucks if a share since mid-june. evercore thinks that weakness may be also spreading to facebook. keep in mind, though.

this company's still trading at about 57 times forward earnings expectations. okay. let's check in with bob pisani and courtney reagan. bob, i'm going to start with you today, bob. do you think that ben bernanke the fed is our friend this week for better or worse? >> what worries me today, i'm continuing to see people pour money in to bond funds and the other half of the world trying to figure out how to get in to anything else but the bond fund. tft is hitting new highs. we are getting the tlt hitting new highs today. that's zlous in my opinion and why the other half of the world saying and going in to anything with a yield. so today, look what's happening. real estate investment trust, the main index for the reit funds hitting a four-year high today. most of the apartment reits doing well. 4% or 5%. another one, utilities on friday

hit a four-year high. again, same situation. there's the four-year chart. people are being forced in to higher yields investments. half of them want to go in and the other half in bond funds. really tough to describe the mentality right now. >> extremely tough to describe. i want to get to the nasdaq. what's happening there, courtney? >> nasdaq is tech heavy and pharma names and trading to the upside. start with human gnome sciences. glaxosmithkline is going to acquire the company. just a share under at 14.19 and still shares bid up. amgen shares up .6% and not seen since february of 2006 and moving on to vivus. they have a weight loss drug waiting for approval from the

fda. finding out tomorrow if it gets approv approval. the drug get approval and saw a stock shoot up higher. the market is optimistic. look at gilead. mandy and brian, back to you. >> thank you so much for that. we were talking about the hunt for yield at any cost and then bob was saying a lot of people who instant safety at any cost and in other words going in to bonds and you were pointing out here, property group. >> 2.5%. also one place is reits to put the money. >> okay. we have lots of economic indicators this week including a read on housing and jobs so what should we be looking for in the markets ahead of the numbers? joining us is jim godfrey and

david fleischer. gema, leets get to you. i think 20% of the s&p coming out with the numbers. i was reading your notes though saying that market elation at the moment has been misguided and i was like, market elation. where's the elation? we are down for the seventh straight monday and feels like the market doesn't have any mojo at all. >> that's a reaction to the rallies we have seen in between the pullbacks. again, against a backdrop of disappointing data and what's happening is the markets are rallying and used as a profit taking opportunity and crucially central bank action is cosmetic and not medicinal. within europe, the ecb actually for the first time ever cut rates below the 1% level. however, that was more of a reassurance to the market rather than actually any change structurally and likewise, all the indicators of operation

twist continuing in america is beco being appreciated and the markets looking for straight asset purchases. >> very good way of putting it. central bank action is cosmetic. nonetheless we all want our medicine. the stock market as i said for better or worse is wanting a medicine, david. as bernanke speaks this week, at what point does he have a weakening domestic economy and a rising dollar? will we get an indication? >> it is a double-edged sword. right? for those looking forward to more action, you have the dplfl side and maybe things are as bad as some people say. you know, in the end, you know, i listen to the earlier segment about when's going to drive housing prices and is it really mortgage rates? we really need to focus in on employment. and everything else becomes secondary unless we get employment numbers heading in the right direction and consumer

spending. both of which are main drivers and engines to the recovery. >> two years ago almost to the day we were just above 10,000 on the dow. we have ganled 2,700 points if 2 years with the overhangs, europe, whatever, still happening. so is the rally of two years entirely driven by cheap money of the fed? >> no. absolutely not. i think it's a combination of things being oversold, i think it's also a combination of still being so much money that's there on the sidelines. so when we take a look at earnings, the big question mark that still remains for many of the firms amongst many industries is, when and in what ways will the extra cash on balance sheets be deployed? gives investors hope that when the flood gates open better things will happen. for the time being, you know, earnings somewhat exceeding expectations. so far early in the quarter. but that's also based on expectations which are extremely

low. >> thank you very much for your thoughts on the market. big market week, of course. we saw there a moment ago, all-time high for the group we mentioned a moment ago. on deck, mark zuckerburg, he likes low rates. who doesn't? if you thought you were getting a bottom rate on the refi. wait until you see what this facebook guru is getting. herb set to reveal the newest inductee in to that. his worst ceo's list. this one is a shocker. if you've never watched this show before or even heard of herb. otherwise you know who it is. 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.

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tdd# 1-800-345-2550 call 1-800-540-9872 tdd# 1-800-345-2550 and start trading today. a beautiful and hot day out there in times square. as for hot, here's a little taste of sunshine for you today. let's look at brinker international. the ticker symbol is eat. yes, eat. it's up more than 23% this year. brink is brands of macaroni

grill and chili's and as we can see the stock up by 2% and generally soggy market today, brian. a tech wreck for today's disaster du jour. actually, two of them. rim, research in motion which is effectively my jcpenney and hewlett-packard and if you're on vacation and upstate new york or some place like that, you might have missed it. hewlett-packard lost, what? 50% of the value in the last year. >> uh-huh. >> it's the biggest technology company in the world by sales. unbelievable. anyway, rim c eo just one of the names on herb's growing list of potential worst ceos of 2012. herb, going goodfellows today and turning your back on a name you once loved. >> sometimes you have to. may be too early to call ron johnson as a failure but adding him to my list as a candidate

for worst ceo of 2012. i was an early supporter of the concept of recreating retail and thought he made sense to turn it around. he had been a hero at apple and target and best part ron johnson is a merchant but at jcp he has flubbed famously and fabulously on multil fronts. went to a form of every day low pricing. everybody will tell you outside of warehouse clubs and dollar stores, it doesn't work. consumers want to think they're getting a deal at department stores and like it or not, jcp is a department store. second, johnson is rolling out a concept of store within a store concept. anchored with town square. sorry. town square just does not cut it for me. third, and this is what really got me going. right out of the gate, johnson offered earnings guidance. this is a company he says will take three years to turn around but by offering guidance, he's

setting himself up for egg on his face and johnson fired the guy as president less than a year ago. this is not apple. this is not target. this is jcpenney. this is not looking good. >> we thinks the bromance is over. everyone said if anyone could do it, he could. >> what i have here is until the end of 2012. some people think he'll be out of a job. >> no way. >> i have seen so many things happen here. >> i'll tell you why he won't be out of a job. severance package. if the guy in manufacturing got the money he did allegedly after nine months you can imagine the golden parachutes. give him a break. i can't believe i'm defending him but he's not there that long. if jan rogers listening in he'll know what i'm talking about. who else will they bring in? that's the point. if the model is broken,

customers confused, how now do you bring in someone else? one name to possibly be a good fit. >> who? >> md. >> mickey drexler? >> why not? >> i can tell you. >> just saying. >> this is another bet to make you. mickey drexler will not be going to jcpenney. >> one name to think of to take that problem. >> this is tough. this is department stores. are department stores going the way of food stores, supermarkets? >> every ten years people call for the death of department stores. >> cramer said many, many times on this show, retail turnaround are difficult. >> i have learned my lesson on this one. still to come -- >> outrage of the day. that wasn't it, believe it or not. we'll debate a "the new york times" article that claims the obama and romney camps are strongarming journalists. broke down billion dlars and never before seen look at the couple behind the biggest home

in america. i watched the incredible movie over the weekend. we'll have the producer and director on our show in a few minute's time. don't go away.

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it is street talk time.

walking you through the stock stories. perhaps they should reach the headlines. first up on this monday talk about big industrial name with a downgrade and it is ge. >> yes. minority owner still of 49% of nbc universal. morgan stanley downgrading and asked the question whether ge is, quote, an expensive industrial company or a bank. a lot of people have asked that question. the analyst notes that downgrade not reflections of the coming quarters but rather the risk/reward is more balanced. and less favorable noting that ge trading at a premium slightly to the peer group there. shares up about 9% over the past yore. >> the downgrade like a valuation call. i noticed that ms also upgraded another industrial. downgrade for ge. upgrade for --

>> this is a good thing. >> that's the wrong stock. bring up mastercard or visa if we can, guys. the settlement was for $7.25 billion with a "b" dollars. it's a long-standing lawsuit. a bunch of them over credit card processing fees brought on by retailers. investors hopeful it ends a long overhang on the name. mastercard's up almost 2%. still not a bad day. >> not great for the consumers, though. stores can also have as part of the settlement to charge for using the credit cards and that's bad for us. >> or pay cash or steal. >> steal? steal is always the best way. >> kidding. kidding, america. >> were you? more companies are in trouble in the coal space. this time, alpha natural and arch coal. >> your boy herb will probably want to comment on this because in the analyst calls bmo cutting

the recommendations on the names citing weak margins and further expected mine closures. alpha natural down 84% already over the last year. arch down 80% of the past year and downgrade today? >> it really feels like -- >> remember, kids, don't steal. >> late to the game. goldman liking the supervalue of this stock and saw a moment ago. >> we blew it. stocks rare up day. goldman upgrading to a neutral from a sell. hardly a huge endorsement and supervalu taking anything it gets, basically. >> yeah. absolutely. moving along, finally sown looking for some love. but this one there's -- i feel sorry for them, right? projection and it's sad. >> i tell you, i didn't know this. did you know that sony launched a big line of smartphones in the united states? >> i didn't know. >> i didn't either. came across it.

it's exsperia and launched it with at&t as the provider. come on, sony. usually launching a big deal smartphone, you know about it. >> lots of hoopla. >> pc world saying it's already outdated. >> "l.a. times" saying a year ago it might have been a good phone. now just outdated. >> anyway, that's tough. from "street talk" to political talk and this is not a good story for the journalism world on the campaign trail or anywhere for that matter. both the obama and romney camps allegedly strongarming journalists on quotes. it is a big story for "the new york times." let's break it down. john harwood joining us from washington. what are they doing, john? >> reporter: well, first of all, brian, it is not alleged but happening. but i have to say, it's a new twist on an old story. that is, the old story is that government officials and campaign officials have been

strongarming journalists in this same way as long as i'm covering politics and when my dad was covering politics for "the washington post" they complained about who was identified and said and quoted and what's happening now with the romney and obama campaigns and many government agencies in washington and i suspect in state capitals, as well, interviews are conducted that's conducted on background and then meaning you can't quote the individual you're talking to and then go back and submit quotes and ask them to put things on the record. it is the thing to make journalists cringe but the alternative is not getting information at all and why the push and pull of the attempts by journalists to press government officials for more openness and more transparency is always countered by the journalist's desire to get the information that they won't otherwise get if the government officials or

politicians won't play ball. >> john, stick with us. let's bring in major garret for "the national journal" covering the bush white house for for example news and cnn. major, you know, reading this, i was thinking so much for the free press. it really is borderline censorship. >> the new twist an i agree with what john said. i'm the only reporter on record to go through the process and felt it was necessary for me to be on the record of people not going on the record or not going on the record and what john said is true. there's always the tension and i think there's a new, harder ratcheting down of pressure on reporters of campaigns, by official government entities to not only give you some access but trade very aggressively for that access. and it's not just quotes have to be approved but sometimes edited in that approval process. i want to point out i don't do this with the romney campaign

and only with the obama campaign and white house. i don't cover the romney campaign. but you will see edits and don't materially change the meaning of the quotation. i would never accept that under any circumstances. they make them more comfortable, sometimes streamline what was said in a more let us say voluntarilible way or wordy way and something i said in "the new york times" and i do cringe and it is an ethical thing for me but i work it out as best i can and i wish it didn't exist but i want the access. i have a story in the magazine this week when david plouffe things about the media strategy he said before. it's a tradeoff. >> major, good to see you, man. thanks for coming on the show. do you feel that social media made things worse because, you know, if somebody says something small and it's out of context,

it goes viral, it goes everywhere and people put back on the defensive. do you think the social media hurt the way that you and john and others do their reporting? >> social media has made things better and worse. it is certainly intensified the fear factor that those in power, those who are trying to protect a political image or message of dealing with reporters and a loose verb and out there at all. so the default position is to be careful and constrained. careful and constrained. and that's what brings more pressure on people like john, myself and others. but social media also allows information to flow very rapidly and can become almost a portable wire service and social media is important and i point out this week that there are times when the obama campaign uses the controversy spread by social media and rides that wave to elevate the president's sen tranty on an issue or an issue of gay marriage or the contraception controversy.

they like that social media churning and the politics and those in power i believe have a sense of how to use social media maybe reporters haven't quite caught up to. >> do you think it gets worse rather than better? >> yes. i think it will get worse in the sense that all interactions between newsmakers, candidates and journalists have gotten constra constrained. we have much less access to candidates than was the case a generation ago with the counterparts then and they're constricting access concerned about getting off message and saying things off the cuff and same reason why they don't give press conferences often and television interviews often and you can't edit. >> major and john, thank you very much. herb, i know you're a long-standing journalists. >> it all feels manipulated and business journalism, financial journalism, there's backgrounders. i hate going off the record. i hate when somebody says, hey, can we do background for a second?

i'll say, no. i'm a reporter. tell me what you would tell me publicly because you end up with a situation where you don't want to be in a position of having good information -- >> to major's point and john's point, you need the trade to build the trust and then once the trust is built, then you might have the access. that's happened to me many times and i'm sure to mandy. you have to do it. >> there are times you -- >> never tastes good. >> there's times to do certain things but that puts it at a level what they were talking about, quite frankly, i've never seen in financial journalism. i would hate to see where a company edits. edits the quotes. >> feels wrong. you are like. it's like a contract with the devil. you have to make the trade-off sometimes. great story. thank you. >> not all contracts with the devil is bad. can you return my soul? >> i have front row seats down there in hell. >> mark zuckerburg -- >> with popcorn.

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my name is david see gal. >> my name is jacklyn see gal. >> i'm the founder and ceo of the largest timeshare company in the world. >> i'm a 43-year-old mother of 8. >> i thought she was the most beautiful girl in the world. >> it took me a while to fall in love with him. >> we have a great relationship. >> there's 30 years between us. we never sought out to build the biggest house in america. it just kind of happened. >> tennis court. >> 30 bathrooms. 90,000 square feet. >> oh my god!

>> no. this is not my room. that's any closet. >> no way. >> we are in line to do a billion dollars in sales for the year. we're on top of the world. and then it came to a screeching halt. >> the market fell over 700 points. >> i would say it's touch and go right now. >> we don't talk about financial problems. i guess i'll have to watch the movie to find out what's going on in my life. >> well, that was a clip of the queen of versailles, one of the biggest hits of this year of the sundance film festival. the director won top honors and joins us now with the very own robert frank and i know that both of you spent time with david and jackie segal. our producer spoke to david before the show today and he said that the film is artistic and not accurate. and it is not a true reflection of him, his wife or the company. and he also went on to say that his company is the most profitable it has ever been. so it's greet have you on the

show, lauren. straight to you, how much is fiction, how much is real? >> there's nothing in the film that's fiction. i spent -- i filmed them for almost three years. and with david and jackie's full cooperation and it's all -- the film is told in the character's own words and in cinema. >> it wasn't scripted. david said before the show it was scripted. >> not one word in the film that's scripted and i think that's obvious to anybody who sees it. >> would you an i gree? you know this couple, as well. from seeing the movie an knowing the couple in real life, would you say this is as real as it gets? >> yeah. i think so. but the broad story is broadly accurate. lauren, where are we now with the segals? when we were with them a year ago, things were touch and go. as he just said. where are they now that he sold the big property in vegas? will he be a billionaire again?

>> i can say that i filmed until the very end of november, the film ends on november 21st, 2011, when he sells las vegas. so, i can tell you what they predicted would happen which is that richard at the end of the film says, if he's willing to give up the keys to vegas, the lenders will continue to lend. in fact, he says david will start making money again and more money than he knows what to do with and my understanding is once he gave up vegas, which was so important to him, it was going to make him $2 billion and so emotionally important to him, then the lenders continued to lend and the other resorts continued to operate. with versailles, when the film ends, the building was in default with the banlg. they were about to put it up for auction. he borrowed money and was able to forestall the auction. >> lauren, when i watched the movie, i felt myself being very

sympathetic with jackie. you know, she seemed to be down to earth and looks like she was facing losing a lot of her lifestyle, she was fairly, you know, just very pragmatic about it. i've gone from rags to riches. i can do rags again basically. is she as sympathetic as that in real life? >> yes. she is coming in to new york today for the premier tomorrow night at the museum of modern art. and been with me at several festivals. one of the things that drew me to the story is the characters of jackie and david. they're both incredible people and i think the thing of jackie is even though she lived this outsized fantasy life, there's something about her down to earth and relatible and that's why it's an interesting story. i mean, the film really starts as a look at the 1%, at the american dream in the most extreme manifestation and by the end it's really a story about all of us and what we went through in the financial crisis because when their dream is a

nightmare as a result of the financial crisis, they have to go through the stress and the strain on the family, the possibility of losing their dream home. and then david has to go through losing the las vegas building which was his legacy, the most important his career. >> i look forward to seeing it. lauren, thank you very much for joining us thank you for having me. >> before we go, don't go anywhere. mark zuckerberg, two questions. 1% mortgage. okay. first question -- why the heck does had have a mortgage m how did he get such great rate? >> we confirmed mark zuckerberg did refinance his house at 1.05 prz. what he's probably going do, this is free money. 1%. you can go out and invest that even a fairly conservative investment and still get a return on that investment. so, you know, maybe he doesn't need the cash. again, you know, it makes financial sense to do that. >> we are going to leave it there. great to vow the show. >> up next, apple's ceo tim cook getting paid. we are going to break down his

eye-popping compensation package. >> totally getting paid.

a passionate belief, 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.

rnchlgts the movie we are talking about, "the queen of versailles" will be aired on cnbc sometime next year. >> check out shares of apple. up 50% year to date. >> okay. is apple's ceo tim cook worth the king's ransom he took home in total compensation last year? talking of check, john subpoena standing by. pretty damned big check tim cook got for last year. right? >> reporter: yeah. i mean, it is nearly $400 million when you count it a certain way. here is the afterate. this is restricted stock units. half of them don't vest for another five years. the other half don't vest for ten years. he doesn't really is that money now. here is the thing. he got 1 million stock units. under $400 million price is based on the stock price last august. today those are worth more than $600 million. >> you know, i believe the article -- $77.5 million.

you got a first on cnbc development on microsoft as well. tell us what it is. >> that's right. microsoft is just now about to unveil a preview of office 2013. microsoft office, of course, one of microsoft's most important products, if not the most important, windows, gets a lot of the attention. but office actually made more money last quarter, very profitable for microsoft. unveiling a new version. not saying exactly when it will launch. this has a lot of cloud goodness baked into it. that's a direction microsoft has been going to lately. i talked with office division president a few minutes ago about what's new in the version and here is what he had to say. >> if you look at the new version of office and you look eight compared to 2010, you say wow, i have to have that. i think you also see a driving new kinds of devices that are out there, particularly windows 8 and the combination of those new form factors coupled with the new office to go with them. i think it will drive really

strong adoption. >> reporter: part of what they are doing with this version is allowing to you sink your data and your settings across multiple devices. had is setting the type of table for you to use your pc and sink that work over to surface or your phone or other devices like that. that's where they are hoping people will buy. >> thanks very much. first on cnbc announcement. america trumped by china once again. this has to be seen to be believed. ♪ ♪ ♪

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the whacky moment brought to you by china. setting a new guinness world book record for the largest human mattress domino's. 1,001 mattress setup was in shank high and took ten minutes. previous record was set here in the united states. new orleans. trumped again by china. >> quick update on green mounta mountain roasters. >> stock down. traders talking about mp d-day that out. it would show growth is continuing to slow. we will keep an eye on it. if i get anything more we will have it later in the day. >> you didn't have to be that quick. >> you said quick. i was looking at the clock. >> usually three minutes. i was like -- trying to get the frame of reference good okay. anyway, we are heading towards the closing bell. dow still looking very soggy. down for seven straight mondays. >> who can explain it? are we up for seven straight