last night we were talking about it. >> that is it for us. >> you can follow us on twider. fast money starts right now. >> the nation and the markets focused on isaac. >> prove a disaster declaration for the state of louisiana so they can get the help that they need right away. we are dealing with a big storm and there could be significant flooding and other damage across a large area. >> and the political storm brewing down south. >> what do you think the key is? >> jobs, money, gasoline prices. >> but the biggest mover may be bernanke and his pals gathderring this friday. >> this was supposed to be a

secret. he has a dalt with me. >> this is fast money. all right. live from the nasdaq market site. i'm in for melissa. let us start with the story that caught our attention and one that should catch your attention, too. that is a bold call from republican senator bob corker this afternoon. senator corker, thank you for joining us. why do you believe congress should end the fed's dual mandates specifically with regards to maximizing employment? >> i think we get into situations like we are right now where we become very overly dependent on monetary policy. i actually introduced

legislation probably a year and a half or two years ago. a lot of people don't realize that this didn't come into play until 1978 with the humphrey hawkins act. we're one of the few countries of our sophistication that has a fed with a dual mandate. the bank of england does not. the european central bank does not. the germany central bank does not. this is very unusual. i sit in these hearings. what you see is policymakers in washington really leaning on the fed to deal with the economic issues that our country has and what i think it does is take the heat off congress to do the things that congress should be doing. i have been a fan of bernanke during the crisis.

i think i have spoken in moderate ways. at this point, the hearings and testimony, i believe he should show a lot more humility as it relates to what he can do relative to our economy? >> do you believe that congress punts to the unelected fed? puts too much weight on them to create jobs and not congress? >> absolutely. you can see it in every hearing. 5 these types of congressional hearings. congress -- the fed is almost an enabler. is an enabler, i would say. in that everybody continues to focus as you are, as your headlines are today, on what the fed's going to do. i just think that we have become

way too reliant upon that. and i would say that it is becoming a distraction away from the kind of things that as a nation we ought to be addressing. really to solve our short and longer term problems. >> so then to fix it, are you going to put forth a bill? will you put out legislation that perhaps tries to change the dual mandate? >> sure. and i have a bill that has already been entered in. i think paul lyons did so about the time that i did. this is not something that is new. the fact that a bill like this is not going to be passed at this time. and the purpose of my oped was really just to say pubically to the chairman of the fed that i hope he will show more humility as it relates to us relying on monetary policy to solve our economic problems.

yes i have legislation. do i think it's going to pass any time soon? no, i don't. so the oped was really a public message to the chairman of the fed who i have a good relationship with and have respected for what he has done. at this point, i think he is a distraction. >> if you will forgive me, i certainly had not heard about the legislation so it does not appear to have gained a lot of traction. if the republicans win the senate in november, do you believe that legislation actually has a chance of passing? >> well, i think, as you noi, anything big like that it was going to end. i don't expect that republicans are going to have 60 votes in

the senate. there has been some curtailing of the feds' ability to do things. some of that was done during dod frank. there have been other measures to curtail their activity. i don't think that the dual mandate -- no, i don't think it's going to end any time soon. seems like this is a time to change. but i do believe at this moment, when i wake up in the morning and watch your programs on cnbc and read the financial times or the wall street journal and others, investors at this point, in my opinion, are way overreliant on what the fed is going to do and less reliant, if you will, on the structure. at least on a daily basis.

i just thought i would publicize my views as i have done. >> that said, ben bernanke's term up in 2014. should he be reappointed? >> i don't think he wants to be reappointed. my sense is that he wanted to see through this crisis as i have mentioned. 5 i thought he handled himself well. i think at this point, future quantitative easying at this moment is a distraction. it is a little bit of a shot over the bow. i don't think he wants to be reappointed, nor do i think he would be if he was -- if a republican president was elected. this is not a blast chairman bernanke for everything that he has done.

each of us can disagree with people that we respect. at this point, i believe that the fed has become a distraction and i believe that we have a nation have a big issue. the republican ticket will do that if elected and that's what our nation needs. not more pumping money out in the system to create wealth in order to get the economy rolling. >> senator bob corker, some would agree that the creature has indeed gotten too large. >> you can argue with all due respect what do you make? >> you have to agree with what he said. we didn't have this false

liquidity that congress should be forced to do their job. we would probably have negative gdp by 3% and nothing would have gotten done. >> we could never prove it. >> never prove the counter factual. that's what makes it so perplexing. the problem is it has always been about the dual mandate. >> do you think they just lowered rates. he just ref sensed the ecb. i got to tell you, i like america. we're leaders. we're not followers. if every other country just bss

about why they are doing it. >> it's too much of a problem. got to be as responsible. congress can drag ben bernanke in front of it a couple times a year. >> stimulus. >> bernanke could should hold a hearing for congress. >> it's 8.2%. >> sure. a trillion. >> it's going to help. exactly. whether you got it here or there. >> we can all agree it's the law of diminishing returns. >> and there is the debate. the debate is happening at

households all along the area. >> investors await bernanke and jackson hole. let's go around the horn. how should viewers be setting up for september with people coming back. >> i did that. 5 amazon was the one thing that stuck out. over the last ten years, september for amazon has been very kind. it's been up around 7%. that's probably the play. it is a little loftier price. i buy upside calls to protect yourself.

>> we have mentioned this both times. but the 14.25 level is critical. we did hold a lower band wchl the vix where it is, you have enjoyed quite a run for quite some time there is absolutely no reason not to go out and buy yourself some put protection for the positions that you have. if you are looking for outright stocks. i think some of these pharmaceutical names we have mentioned have done extraordinarily well. put some hedges on it, folks. >> at the risk of infusing culture into this desk, just to quote george, those who don't know history are doomed to

repeat it. it has hit the market by about a half a%. however, it's totally different this time. i'm not looking at what i think will be a devastation. 5 i want to be long. i don't want to be long. i like macies, jwm, in order strom. that's how i am playing. >> calvin klein and tommy. >> you would want to be long. but at the same time be careful

where you are. i think what we're doing is faking some profits. a good example today. get ready to go in there and buy stock. foster wheel ser a name we like. his corically the orders have started to come in. it's cheap. there has not be a lot of participation. >> boneless chicken breast prices for spiking. >> brian is joining us. what on the options side.

>> about buying protection right now. just the next three weeks. people adding protection. doing very well. xlp. the consumer staples. only 1% off the all time high. you got wonder why things are so good. >> fantastic. catsup to dip your boneless chicken breast in. we will bring you all the latest details on that. hurricane isaac. sit a big storm. we will talk about what to bake off the action in the names moving in the storm's stream. plus we just heard from senator bob corker about his thoughts on the fed. a former insider weighs in. does he think we will get more

qe? one of the questions we will ask neil coming up. you are watching fast money. stick around. [ male announcer ] trading's like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account.

there's natural gas under my town. it's a game changer. ♪ it means cleaner, cheaper american-made energy. but we've got to be careful how we get it. design the wells to be safe. thousands of jobs. use the most advanced technology to protect our water. billions in the economy. at chevron, if we can't do it right, we won't do it at all. we've got to think long term. we've got to think long term. ♪

>> welcome back to fast money. we want to alert you to some problems with united airlines. the company's computer systems have been down for much of the afternoon and it is affecting travel. inbound flights have ground stops if for many areas. i saw a report that one is boarding a flight at newark but that a flight attendant had to hand-write a boarding pass. the company has only tweeted out that the system is down. we have a call into united.

at this point we have not received an answer as to when it will be back up. clearly these computer glitches don't just affect trading systems. >> thank you very much. appreciate that. just another log in the diary of frequent traveler's held that air travel has become. nobody wants to mess with it. >> they have major issues in terms of the system. >> nobody has stopped it. >> that call is still underway. there were 200 plus people on the call. remained a steadfast supporter despite hard times. the returns have been

disappointing. he talked about the disappointment of losing citigroup. redeeming $410 mm in investments. the focus of the call was very much on gold. the leaders who initiated the call started faulking about this being an excellent way to play the gold miner thesis. the spiders which is how he employs his gold share class strategy. that's a very good way to look at pahlsson right now. if you don't like the gold, you should rethink that strategy. talked a little bit about his outlook. gold is down from its all time highs.

>> i agree. i'm in his camp. i'm very much in his camp. every currency has ended up in disaster. gold wins to this. it's painful being in the trade. i understand that. there are days you wish you never heard the word gold. i firmly believe that it will go significantly higher. you can get in. it's difficult to get out. >> it is a way to play. >> if it's a gold trade, everyone has been talking about the minors liking the coal.

>> you can address it. i know you talked to so many different hedge fund mankers. maybe buying a small amount of gold. there is sort of a guy's point. you can't just sell gold for what you can buy it for. if you need to sell you will sell it for a lot less than you bought it for. not just because of transportation costs and security but the fact that people might know you're desperate. gold is not that easy of a trade to get out of. >> gold is a difficult trade. when you feel like we're done for a recession. you may want to get out of it. he did talk a little about the difficulty of predicting gold. he talked about all the different factors that go into gold's prices.

whether it easterly kidty and currencies. it's a tough one to navigate but that's why he thinks of it in terms of multiyear strategies. markets remain flat in jackson hole, yi yi. but would more qe help or hurt equities and inflation? first off, do you expect ben bernanke to more strongly signal quantitative easing tree? >> we do expect more strong signals. last week's fed minutes were very powerful. it's unclear if he will lean further forward right now. whether or not he exceeds market expectations, we will have to wait and see. if there is no qe 3 coming you

will see equity markets and risk markets pull back. >> what would be key? obviously now we have the lean indicator. what kind of language might he change that would pick up your chougts? >> i think if he comes forward with more specificity. he talked about the possibility of an open commitment rather than saying here is 500 billion or here is a trillion dollar balance sheet expansion. continue to expand our balance sheet until we achieve some economic outcome meaning nominal gdp, unemployment coming down that would be very, very popular. i would expect to see him give more details on what such a program could look like. i doubt he would actually come out with specifics this friday. >> what if he signals less chance for qe, would you expect equities to tumble? >> i would.

the vix just came back down. the s&p at 1400. the afternoon markets have priced in assuming there will be some form of qe 3. >> neil, quick question. to what degree do you think the global central banks are coordinated? showing up this friday to give bernanke a bit more of a center stage. what's your thoughts on that? >> we have taken face value. he absolutely has his hands full they are a long way away from assaulting the crisis. they do coordinate and try to avoid tripping over one another. i wouldn't believe anything more into it than that. >> i am curious as to why you think there is something in the market for qe 3 or stonger

language? i don't think anybody thinks there is going to be a qe 3 now because bernanke does not want to make it that event and the markets freeze for a few months before each kansas city fed conference. but the markets really traded off. it's been flopping around. every kpen ta tore does not expect anything. so why do you think there is something in the market? >> if you look at what the volatility has come down in the equity marks. the s&p 500 has rallied. it's up 12%. if you look at the underlying economies, risk markets have really rallied. whether it comes in the next two weeks or the next month or so i think is a little bit unclear. >> quickly nooe, we have got to let you go.

senator bob corker suggested that the stock market is being held hostage by the fed. do you agree? >> look, i think we agree that the fed's monetary policy cannot engineer real sustainable economic growth. we need the fiscal authorities to act. >> a pleasure. >> thanks for having me. >> be sure to tune in. friday, our very own steve lieberman will be there. he will be speaking with all the key players. what bernanke says matters a lot. we should note that tonight we will have a special report with in-depth analysis of both the republican national convention and hurricane isaac. that begins at 10:00 p.m. eastern time tonight. >> an airline stock hitting

turbulence today and one apparel name on firm footing. we are telling you how to trade all the big movers and we will fill it with puns coming up after the break. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade.

to dabble with the idea of hybrid technology, it's already engrained in our dna. during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or, signs in a woman which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer

or who have or might have prostate cancer, and women who are, or may become pregnant or are breast feeding should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. talk to your doctor today about androgel 1.62% so you can use less gel. log on now to androgeloffer.com and you could pay as little as ten dollars a month for androgel 1.62%. what are you waiting for? this is big news.

>> we also continue to monitor hurricane isaac. the storm beginning to intensify. that is a live look at new orleans, louisiana. let esthrow it over to our meteorologist. >> it's only 20 miles off shore right now. it's moving fairly briskly. it's kind of like a soap opera. it is strengthening, i wouldn't say rapidly but also running out of time. you can see how well organized the radar is at the current time. now the most concern, though, isn't from that. it's not from the rain right now. later on down the road it is, but it's from the storm surge. many areas do have a high tide that coincides with that.

however, once we get through that, then we have to worry about flooding sfr from all the rain so we do have a multifaceted. >> todd gross, thank you very much. >> commodities or grains or whatever else is on the minds of our traders in and around hurricane isaac, especially as it picks up steam. >> i have been long. i have been in and out of vallero. >> that is a common name. >> the problem is i just got an upgrade the other day. the other issue is it's such light liquidity that people can't get done what they need to get done so they wind up ramping the names higher and higher. that doesn't mean they can't go a little higher but i would still be a seller. >> let's go to brian. what's your take on the storm. >> yeah, you bring up vallero. we see a steady diet.

other energy. they can pop a little bit. >> thank you very much. more from our traders. she has got more now. >> it looks like that computers are coming back up. the faa has lifted the ground stops. certainly if you're flying you nighted, at houston, newark and san francisco. there is likely to be delays but it looks like things are starting to start back up. >> thank you very much. certainly maybe some good news for already beleaguered travelers. let's continue our run around.

steven? >> i just don't think you trade based upon waeather. those trades never last long. >> i was long here and short again. >> farms again? >> if it's a trade, some would call it chicken. >> ha ha. >> are there homes and story? and we mean it this time. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason

serious investors are choosing fidelity. now get 200 free trades when you open an account.

>> what's going to happen is eventually liquidity will come into the market and we will probably end up in the same place five years from now. it's a regional story. >> that was billy from funding and advisors giving his take on the housing recovery. today the home price index showed the first 12 month gain since 2010. does this signal a housing bottom? back with us with his take on

the numbers. not often you get to see yourself on television. fantastic. i don't know how many times i have said it's a housing bottom. it's a housing bottom. every time, very reluctantly. is it really here? >> i think it bottomed a year ago. it's a seller by seller story. in other words if you have got a private seller who is really staging their house right and next door is a bank selling a foreclosure. you're going to get two very different numbers.

>> today you have three types of homes on the same block. you have the bank who let it go completely. you have the homeowner who is underwater who has lived there and has done nothing to upkeep it. and then you have the ren va tors who are selling it perfectly staged. >> so let's make it gran wall. >> the yard is two feet high, the windows are broken and nobody cares. you have the $3050,000 home. >> it doesn't look good. and then a $400,000 home. that screws the $400,000 homeowner or does it? >> they're all coming back. there is a giant industry right now of small ren va tors coming out, buying the short sale which requires a modest upgrade and the bank rel which includes a bigger upgrade including

kitchens and baths. the local banks. that's what we really need. >> here is the problem with the stock market is the best leading indicator of them all. if the housing market bottomed a year ago. >> you sound like a trader. >> 3 approximate you have to look at this this way, what do i do with the stocks that i own right now.

>> jeff, coming up next with what he sees in tech. tdd#: 1-800-345-2550 you should've seen me today. tdd#: 1-800-345-2550 when the spx crossed above its 50 day moving average, tdd#: 1-800-345-2550 i saw the trend. tdd#: 1-800-345-2550 it looked really strong. tdd#: 1-800-345-2550 and i jumped right on it. tdd#: 1-800-345-2550 since i've switched to charles schwab... tdd#: 1-800-345-2550 ...i've been finding opportunities like this tdd#: 1-800-345-2550 a lot more easily. tdd#: 1-800-345-2550 like today, tdd#: 1-800-345-2550 i was using their streetsmart edge trading platform tdd#: 1-800-345-2550 and i saw a double bottom form. tdd#: 1-800-345-2550 so i called one of their trading specialists tdd#: 1-800-345-2550 and i bounced a few ideas off of him.

tdd#: 1-800-345-2550 they're always there for me. tdd#: 1-800-345-2550 and i've got tools that let me customize my charts tdd#: 1-800-345-2550 and search for patterns as they happen. tdd#: 1-800-345-2550 plus webinars, live workshops, research. tdd#: 1-800-345-2550 whatever i need. tdd#: 1-800-345-2550 so when that double bottom showed up, tdd#: 1-800-345-2550 i was ready to make my move. tdd#: 1-800-345-2550 all for $8.95 a trade. tdd#: 1-800-345-2550 can you believe it? tdd#: 1-800-345-2550 i love it when you talk chart patterns. tdd#: 1-800-345-2550 open an account and trade up to 6 months commission free tdd#: 1-800-345-2550 online equity trading with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-800-790-3803 tdd#: 1-800-345-2550 and a trading specialist will tdd#: 1-800-345-2550 help you get started today. i bought the car because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up. it's always a gratifying experience. it makes me feel good about my car.

i absolutely love my chevy volt. ♪ i absolutely love my chevy volt. one is for a clean, wedomestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now.

>> tech start ups and ipos have been a big theme for both good and bad reasons. new.com platforms and products. he is one of the busiest seated vet tors.

>> i don't think social is losing its luster at all. 5. >> you can talk about your own companies. you will not put money into things you do not see opportunity in. where are the best places to invest in tech right now, jeff? >> we have been very busy investing in next generation commerce, which some people call social commerce.

we invested about a year and a half ago. pretty hefty valuation with a traction that we have rarely seen. taking a slant on design. what they are offer something pretty unique items. they use other social platforms. items which they have kwhoezen. that is quite unique today. they have already had over 40% of the activity. if you look at the power of the new flat forms.

allowing you to build a user base. >> are you from queens? >> the whole facebook financing, isn't that put a big dammer? what's your comments on that? clearly the people that thought that by investing or buying facebook shares at 44, they were making a wise move, they clearly didn't. we're going to see a right sizing of the valuations starting for the late stage.

just because everyone wants to invest in what could seemingly be, you know, the next phase. the problem is that it's not the case. it still requires and only .1% will get there. >> thank you very much for joining us. >> very cool. very cool product. >> it talks about how many calories you burn. so you know your benchmark of how many calories. >> an iron man? he is burning calories. >> he knows this stuff. he could outrun us all. a little company by the name of facebook down nearly 50% since its ipo.

what names should you be watching? it's time to separate the contenders from the pretenders. some pressure on the stock given. pandora is a real business. the pretenders. zynga? that's a pretender. groupon? that's a pretender. >> guys sit tight. yelp heating up twitter today. tracking the trend. what are you seeing? >> that's right. yelp is a hot topic on twitter. it's facing a lock up expiration tomorrow. traders saying watch out. also lost about 4%.

will it go to single digits? that's the question for all you traders. just think about it. if you're a trader that has a long position in yelp, you can't help but think back to face book. will that be the same case tomorrow? >> i was yelping bars around the nasdaq. >> i think it's a real business. it's call eed further inlt grag. yelp is here to stay. >> steven? >> it's a lock up trade. it's a lock up trade. you have to decide. >> coming up, one of our trader

s on the big name tech company. opening windows. we're going to lift the windows. trade the day for a secret.

at merrill lynch, we understand the importance of your goals. 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.

>> sit the moment you have all been waiting for. our trade of the day. we have no idea what's behind that curtain. >> it's microsoft and here is why i like it. i mentioned that i wanted to get long in the market and i want it to be safe. i think it will do well. further more, there is nothing in it for windows eight. mobile phone marjt with windows operating system because other venn tors may be afraid manufacturers to design in the an droid system. >> why would they go to iphone? why not the microsoft nokia partnership. >> they are a premium priced product. not everybody can afford it.

for teleco, iphone is very, very expensive. >> what about you? >> windows 8 is going to be a success for them. >> windows eight? >> i think what you announced the other day. >> your move tomorrow will be returned. more fast money coming up. [ male announcer ] while many automakers are just beginning to dabble with the idea of hybrid technology, it's already engrained in our dna. during the golden opportunity sales event, get great values on some of our newest models.

this is the pursuit perfection. what makes a sleep number store different? you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those." we provide the exact individualization that your body needs. welcome to the sleep number store's biggest sale of the year. not just ordinary beds on sale, but the bed that can change your life on sale. the sleep number bed. never tried this before. this is your body there. you can see a little more pressure in the hips. take it up one notch. oh gosh, yes. when you're playing around with that remote, you get that moment where you go, "oh yeah" oh, yeah! ... and it's perfect. right now, every sleep number bed is on sale. queen mattresses now start at just $599. and for one week only, save an incredible 50%

on our silver limited edition bed-but only through labor day and only while supplies last. once you experience it, there's no going back. wow. don't miss the biggest sale of the year on the bed that can change your life. the sleep number bed. special offer ends labor day. only at one place: one of our 400 sleep number stores. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪

>> time for the final trade. let's go around the horn. >> i'm staying conservative coming into september. catsup's the answer here. >> enter oil. ioc. this is a volatile name. >> all right. >> phillips 66. psx has performed very well. >> i'm safe with microsoft. we have got the