josh? >> apple. >> brian? >> buy intel, intc. >> guy? >> western digital. >> and the final trade from joe? >> travelers. >> thank you very much. more "fast money" at 5:00. an action-packed power lunch begins right now. that is right, simon, what an hour we have in store for you. we begin this hour at the realtime exchange and the dow heat map, which vividly tells the story of a stock market down more than 200 points on the dow. one of the very few dow stocks that has been positive for much of the morning, intel and microsoft. microsoft, interesting, because right now, in san jose, california, one of microsoft's biggest rivals, apple computer, is set to unveil what many believe will be the new must-have damageet, so the called miniipad. now this is, if you can make it out, a live picture, we haven't

had this before, of the theater where the product is going to be unveiled. our jon fortt is inside the event. brian sullivan is outside. he will give us live updates as the details are unveiled. >> a lot of tension down here, you can't afford to go anywhere this hour, with the dow and s & p at the lowest level necessary seven weeks, statistics for you. the markets dropped, the dow had the biggest point drop in the 1 p.m. hour. fry davis the same story, the dow had its biggest point drop after the open. also in the 1 p.m. hour. falling 36 points. yesterday again, the dow dropping almost 40 points in our 1 p.m. hour. on aggregate, the three-day net change, the dow lost almost 100 points during this 1 p.m. hour

period. all right trend continue today? well, right nows, down 223 points on the dow jones industrial average, 13,122.46. full team coverage of the selloff with bob pisani here at the nyse. seema mody at the nasdaq, sharon epperson following oil gold and rick santelli off camera now, looking at the breaking news any moment from the bond pits. we begin with bob. we have had technical damage to the mark threat morning? >> yeah, still remember, the dow, off the low, sue, but just barely off the lows. still only 4% from our recent highs here. so a long way to go before we get to any kind of correction. a little game of chicken, people buying at the open, get some kind of rally like in the last hour yesterday. a big game of chicken. look at the sectors. the bottom line, the damage is wide spread, not as bad as it was earlier. notice even defensive names like health care and consumer staples down more than 1%, a fairly rare occurrence. s & p materials down, of course,

as we saw concerns about the dollar breaking out the new highs. there is some modest breakouts, tech stocks like microsoft and intel breaking out. some stocks that moved into positive territory, coach good earnings, whirlpool, great numbers from whirlpool, upped the 2012 outlook, ross stores and tjx, very tough months selling off along with the rest of the retailers, also have just gone positive today. little pieces of daylight starting to show. >> we will take that. thank you very much, bob. >> the nasdaq now the loews level in two months, seema mody following the big movers. seema? >> that's right. tech has been a lot of negative sentiment around tech, ever since earnings season kicked off, sue, i was speaking to brian marshall, he says tech investors are currently running for the hills as a fear of a global slowdown intensifies and says that old tech like ibm and hp continue to mature. of course, blue chip stocks traditionally see a lot of money flowing into the sector for that high-dividend yield. old tech traced at eight times

2013 earnings versus new tech with traced 15 to 20 times. bottom line, all about growth and margins. not seeing that this quarter, not seeing them meet expectations this quarter, why we are seeing money flow out of tech with an old and the new tech sector. back over to you. >> thank you very much, seema. matt chess love walked by me and said, i told you, we sell everything today. we will find out whether that follows through to the end. commodities also though, selling off right now across the board today. oil sliding to a three-month low, platinum down better than 30 bucks. sharon epperson at the nymex. >> a shift in the commodity space the last several days and particularly today, sue. we are looking at it starting, of course in europe, concerns about spain but really the focus is here in the u.s. and the earn eggs that we've gotten and what that means for global growth. not so great that's why we have seen oil prices, as you mentioned, hit the three-month level also seen copper at a six-week low. seeing silver prices at a seven-week low. a sharp selloff across many industrial commodities, these

multiindustry, as bob pisani says, industrial companies getting him. the key now you in the next half hour, to see if gold closes above the 1700 level. can it stay above the mark? back to you. >> thank you very much. jeff kill boring is here, founder and ceo of killer capital management, cnbc contributor. you point to what sharon was just talking become the selloff in oil. why? >> absolutely. sharon hit the nail on the head that low print of 8569, think about oil you can the glue that held this market together, a tug-of-war of geopolitical tension as well as global growth forecast reductions. right now the global growth forecast reductions have prevailed and sellers came into equities after the oil dipped down to 88. >> good for companies to pay less for oil, isn't it? but what it says companies are slowing down? >> yes. >> thank you very much. go to kayla tausche for the market update. >> tyler, on the back of oil, we saw that steep drop, take a look at all the big cap oil names.

we are talking exxonmobil, chevron, conoco philips, valero and bp. check out valero down 5% on those moves today, definitely a close eye on oil. those names don't look to be hitting the green any time soon. tyler? >> thank you. $35 billion in bond mark nets two-year notes up for auction. rick santelli tracking the action. what's the demand like, rick? >> the demand unbelievable. i feel like cheerleader at this point, but it's an a-plus for the two-year note auction, 35 billion two years. ultimate yield the dutch auction .295. wi traded? well, that was the offer site, .295. the bid site was 30 basis points. we had a 4.02 bid to cover. means over $4.02 chasing every dollar's worth of two years available. i don't have any higher on my 20-year database and 38.2 was the direct. i don't have anything higher on my 20-year database. this baby was really powerful.

dealers took just a wester can above 28%, very little. so the investors have pocketsful of two years. sue, back to you. >> i don't know whether that's really good on a day like today or really bad on day like today. let's ask kenny pull carry of i cap here on the nyse floor. they were seeking safety in the treasury market. who can blame them. pointing out 19400 level on the s & p? >> that is cue. on the future stopped 1405 but flight that range it has to hold there if we break 1400 and break it decisively, you will get momentum guys will jump in you will get the algorithms that will jump in, put more pressure on the market, which is have interesting, because long-term investors waiting for this break should not be -- at that point, they should not-running away, right? they want to save that i hear you, but the opportunity you want if you are a long-term person. >> pointing out amidst pretty decent bounces in the market, you might be able to get it cheaper. sounds like this might be the inflection point you have been looking for perhaps?

>> i would like to see it holds here at 1400. i don't want to actually see break 1400 if it does, you should be prepared. i think actually there is a lot of demand here, a lot of money has to be put to work. i think it will hold 1400. what we have been talking about is something we have been talking about not really new news you can right? we note third quarter earnings will be weak and they are weak, nobody should be surprised. waiting for the price of gas to come down. i'm sometime paying 4.49. >> a lot of people r you have company. >> i don't understand why it's not coming down. >> we will talk about that see you later in the hour. kenny pull carry. today's yahoo! finance poll, we asked market's sliding at the open, what do you do on a day like today, do you buy on the dip, sell, sell, sell, go to finance.yahoo!.com and you can vote. there are a couple of options there four. the results coming up a bit later, ty, on "power lunch." as we mentioned at the top of the hour, breaking news from apple this hour, special product event, now under way, widely expected to be the unveiling of a new miniipad.

here is the chart of am, the stock up more than 200% since the ipad was first announced back in january of 2010. our brian sullivan is live at the big event in san jose, california. good day brian. >> tody, thanks. we are get golden gate to get numbers, product releases from apple the next couple of hours and we will bring them to you. we have apple co tim cook on stage saying the iphone is the fastest selling phone in history. more than 200 million people have already downloaded and installed their new ios 6 operating system. also talked about the ipad, or ipod, long-forgot musical device to some. they say they have sold more than 3 million total units of that and they refreshed that of course, at the last event. iphone 15 a hot seller. the ipod new lineup a hot seller. everybody seems to be downloading ios 6 very quickly. went ipad mini launch comes out,

we will bring it to you. gene munster wants to see it priced under $300, otherwise, may not gain new market share, just steal from the old. i'm here all day for you guys. >> we will be back with you shortly. let's talk about apple's big event. dan ackerman, senior editor at c net. welcome what is the risk that apple cannibalizes itself with a product that it price at 249, 299 that is smaller but does functionally all the things that the bigger product does? >> that is exactly the risk, a lot of people like the idea of the ipad but don't want to spend $100, if it is 100, 150, $200 less, they will get that instead. up until now, other options in that seven-inch, smaller tablet thing, the kindle fire and nexus 7, $200. apple will probably be more expensive than those, a weird price space for them to be n >> i guess if you're am, you

would say we would rather cannibalize ourselves and let somebody else eat our lunch. what is this new product likely to have in it? what the selling points be, apart from the size? >> everyone thought steve jobs said he didn't like the idea of a smaller mini tablet. since then, some people done well it, amazon, barnes & noble and google. apple feels like they have to get in here and you can hold it with one hand. it will be less expensive. probably the same storage options, probably connect to wifi networks, maybe 4 g networks, have to see about that. >> dan ackerman, thanks very much. see you a little while later. sue? the dow jones industrial average off about 216 points, coming off our worst levels of the day, keeping a very close eye on this selloff. the dow on track for the first october loss since 2008. that was not a good year, as you might recall. sea of red today, almost nowhere

to hide. facebook shares run today ahead of earnings. julia boorstin will get you ahead of the numbers. >> pressure on for mark zuckerberg to attack the mobile problem. tell you what to look for in today's earnings after the break.

welcome back to "power lunch," i'm kayla tausche with a

market flash. watching shares of u pfrmt s. profit femme for the last quarter but slightly raised guidance for the rest of the year, meaning that that all-important holiday shipping season that comes in q 4 should be a good one for ups. wall street see it is as a sign that it could beat q 4, possibly by ten cents. you can see that stock is getting a lift by 3% today. tyler? investors getting ready for another earnings report from facebook, comes after the vthe two issues in focus for the company. jul jul jul julia boorstin with more. >> with a shift to mobile hit in google's results, the issue is

how zuckerberg is tacking mobile use. investors are looking for an update to that half-million daily run rate for mobile, sponsored stories that zuckerberg announced last quarter. another key metric to watch is new users. facebook announced money-making initiatives, including selling gifts and apps and in the ad space, introduced facebook exchange to target users based on online activity. these new businesses may be too new to boost the bottom line so we will be looking for any comer on the new business's potential. analysts are mixed on the stock. jpmorgan releasing another upbeat report yesterday saying they are confident facebook can reaccelerate advertising revenue but citi is concerned about continuing desell rating growth.

today's results are particularly important as we head into another series of lockup. monster lost 20%s of the value in the last couple of days on news that the fda is investigating five reported deaths perhaps linked to the company's energy drink. as mentioned, the stock is trading at $40.74 down 11%. jane wells in los angeles with the latest. jane? >> hi, sue, yeah. almost four times normal trading today. volume, energy drinks are the fastest growing beverage category, topped 10 billion this year. up 12%. monster investigated by the state of new york, even before the news from the fda. so could sales lose their buzz?

analysts say maybe not, monster targets young males with red bull. same audience. red bull number one by dollars. monster number one by volume. coke and pepsi don't have a major energy drink label are step neg and moving the category. pepsico making starbucks raeshs juice-based energy line and coke working on a hybrid sports and energy drink. >> the con very eggsal energy drinks are going to slow over time.ventional energy drinks are going to slow over time. functionality will be popular with consumers. >> goldman sachs removed monster from conviction buy list, shares are down anyhow. we don't believe the headlines will impact monster sales growth in the u.s., however, citi says sales are falling, quote exmonster isn't cheap. we think the fundamental case of strong and profitable growth has weakened considerably.

marketing for these drinks continues on the same date monster news breaks. frs energy drink launches a sweepstakes involving pitchman tim tebow. guys, potentially awkward tebow time timing. sue? >> i think an understatement, ms. jane. thank you very much. the dow is down more than 200 points on the trading session, right now down 216, but it was worse. you can blame the latest round of earnings. they are beating on the top line but missing on the revenue side. are investors being too sensitive about earnings? in the next half hour, steve liesman sits down live with former fed chiefable greenspan what is he saying about these market, and this economy? apple ceo tim cook made startling comments about pc sales that should have dell, hp and microsoft shaking in their reboots.

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macbook 13-inch macbook, thinner, lighter, a better display. get this, more pixels in its screen, twice as many, in fact, as an hd television. here is what should make hp, dell, microsoft and others very nervous. apple ceo tim cook saying that for six straight years, growth in sales in the mac outpaced the pc laptop market. a big win, think about ipads, think about iphones, think bit. pods but the ceo and also the head of the macbook division at am making a very clear point, guys, which is do not count apple out of the computer business. they want to get people in that hay low. you buy a phone, then you buy a pad, then you buy a macbook, stuff on i tubes, the new ibook store they launched today. pretty soon, you are in that apple halo and may be in that apple halo for life. apple stock 629.30 when the day

began p i will bring you the headlines as they certainly happen, guys, a fun day to be out in san jose. 20% of the nasdaq 100. so do not underestimate apple's importance to the overall stock market as well. >> get back us to when you count all those pixels, brian. just keep working on it. >> go to a kayla for a market flash. >> thanks, tyler. >> watching shares of arm holdings, uk-based chipmaker pretty stellar earnings today, pretax profit rose 22%. see shares were up 11.5%, not only on the back of smartphone royal test but apple a big client of arm's, could see bigger gains if they are included, chips are in that ipad mini expecting later today. >> thanks very much. single biggest week for earnings season is this week and the earnings are really hitting hard today. jeff killburg here a moment ago talking about oil and its effect. no doubt that earnings are a big part of t let's start with one of those companies, which is du

pont hitting the market very hard, missing on the top line, missing on the bottom line as well? >> just getting taken out to the woodshed, ty, almost down 10% today, see them cut 1500 jobs this is the global forecast we are talking b obviously, a lackluster earnings season, really showing economic slow down globally, they are the biggest chemicalmaker here in the u.s. but also their footprint over in europe. >> what point do you tiptoe back in if you don't own it? what point do you sell it if you do? >> a little bit more room to run here as we get certainty in europe. not yet. but i think close this fall. >> move on to united technologies, profit's down -- up there by 7% in the third quarter because of the good rich acquisition. but the company narrowing its full-year guidance. what gives here? >> folks that make the elevators, otis, refrigeration through the carrier products, hopping on the bandwagon, economic, exact quote, economic environment they are concerned b once again, not a bad earning

season but that forecast they are really concerned about. >> move on to 3 m, rise in third quarter profits, 6.7%. but again, cutting its forecast for the full year and it missed on top line on revenue. >> they did. 3 m really talking about this infrastructure. you have concerns over in europe and not building projects, not in the 3 m products, see them down 3, 4% today. all in the same boat with the economic uncertainty. >> a lot of u.s. infrastructure held together with scotch tape though, right? jeff killburg, thank you very much. correction protection, how do you trade a big down day like this? don't make a move until we show you how. and fears about corporate profits sinking the markets. there you see t ben bernanke has been meeting with policymakers to talk about the state of the economy. and we will talk with the former fed chief alan greenspan in just a couple of moments about what he would see on the economy, housing, jobs and more. we will be right back.

welcome back to "power lunch," i'm brian sullivan. apple stock continuing to tick higher throughout the day. at 629.30 when this convenient behind me began it is nearly two bucks up. in fact it is about two bucks

higher than it was. we do have the announcement of a new mini. as of yet, it is the not the new ipad mini. tim cook, the ceo announcing a new version of the mack mini, a computer but you got to bring your own keyboard and monitor for. we have not got a new macminiso far, a new 13-inch imac, a retina display and pixels, tyler, i'm not smart enough to understand. like carl sagan-type stuff in my head. what we are waiting for is the new ipad mini. perhaps there will be a mini. most events in america are about getting bigger. you know we are going to roll out the new ten-gallon tub of mayonnai mayonnaise. this convenient is about getting smaller and see if the ipad miniis released. cue the bus. just drove by again p. >> thanks a lot, brian. be back with you in a little bit. dan ackerman with c net is with us now. seems they are giving us a bunch of a ta -- appetizers.

but the main course is delayedsome this a teadelayed. is this a tease? >> they are talking about the imac, the desktop. the mini has a cult following. a small, tiny little desktop computer, people plug into their tvs and turn into multimedia hubs. it is important for people cable cutters. >> down to you, sue. >> we are going to focus on the gold market. prices are close. sharon epperson is track the action for us at the nymex. how are we doing? >> gold prices down 17 bucks, around 1710 an own. the good news is gold did not break belowz $1700 mark in this session. traders still watching what's going to happen throughout this fed meeting. also keeping a close eye on that flash pmi data coming out of china's overnight session. that will be key. metals weaker across the board

and palladium driving the market to the lows. >> to the trading action here, the dow jones industrial average down 217 points. bob pisani here on the floor of the new york stock exchange. we knew that earnings were not going to be great. we have heard about that for a long time. >> yes, but this is a little qualitatively different. the banks have problems with net interest margins, some slowing in sales of tech. but the comments on industrials and materials are a little bit different, particularly the revenue missing consistently. that's little bit additional information that we didn't v i think the market is repricing now. we are seeing that. but still pull backs are shall level 260 in the dow a while ago. see a narrow trading range. sue's right, more information on industrials and materials. price in a lot of things here, only 4% from the recent highs, materials, energy and financials. you can see health care and consumer staples also notably

down here. there's good reason to think that this maybe just a shallow pull back. i know i'm arguing the bullish position but going through a lot of restructuring, cost saving, help them out. slow growth going to continue likely in china. the united states, i don't see a recession happening, i haven't heard anybody yelling recession yes. i think all that and of course, what is the most successful trading strategy of the year? don't fight the fed. stay along the market. >> kenny pull carry, joins us with the conversation, make the argument that stocks haven't net net gone too much further. closing 1460 and the we have been stuck in that range, now coming back to test it as we moved through earnings' san and see the weaker earnings and the revenues. these companies, too, are

shedding jobs. keep hearing job layoffs, also not good for the economy. certainly someone who is going to be out of a job pretty soon, right? so it's frustrating to a lot of people. >> fourth quarter i know i'm arguing a bullish position, i don't normally do that. they did this with the third quarter, took it down and they are beating it again here, even if the revenues are on the weak side. i certainly agree with that. doing it with the fourth quarter, likely to beat on the fourth quarter as well. some kind of trough and likely that we are. >> right. that's the frustration. bringing it down, bringing it down. they beat, tried to sell the story, as if they beat. >> lower guidance. >> people note name that they are playing. obviously, they have to manage their earnings to a certain extent. thanks, guys, see you again later. to the nasdaq now, seema mody following the big movers there >> break down where we are actually seeing the weakness in tech. apple, of course, trading lower, but off of its lows as it makes the product announcements.

guy adami, 610 the pivot point. western digital, earnings beat expectations but it was the statements that made about slowing pc growth, lower spending that got investors worried. main comp pet tore falling in sympathy. texas ininstrument, the main culprit you quarterly revenue fell as a chipmaker has seen a decline in demand and also more weakness going forward. that is weighing on the broader chip index, see other semiconductor players moving lower. sue? >> i will take t thanks very much. bring in jeff killburg, cnbc contributor. you follow stocks, treasuries th this is a kind of a vortex of a day. >> i cut my teeth in the 30-year bond pits in chicago. look at the yields, three horrific equity sessions, consecutive sessions. the bond market hasn't really moved, you are not seeing the fear and right now, seeing everyone sell.

so, what's going on here? all waiting for big ben tomorrow, clearly november 6th. i think right now, if you do have a shop willing list of specific stockness you want, feather in here, now is the time, more fed intervention, no doubt about it, we don't expect the fed to say or do anything tomorrow particularly. they may say something but won't do something. >> may specifically reiterate something. short-term memory a month ago, unlimited pledge, ecb, mario draghi saying whatever it takes. we have forgotten that. >> you think there is an updraft that can help you here if you feather in the stocks that you've got? >> i do. >> thanks very much. check back in a bit. go to kayla for a market flash. >> watching shares of microstrategy, ticker nstr, it is micro -- rather, enterprise software company with about $1 billion in market cap. you can see sliding steeply, just about 7% on the day. the company's coo is departing and led bmo capital to downgrade the stock and slash the price target to 130 bucks from 150,

trading well below that now at just about $112. guys, back to you. >> thank you. the dow jones industrial averages off $215 points on the trading session. as the market selloff continues, weaker earnings renew results over the global economy, we will continue to follow it for you. day one, as you mentioned, ty, the two-day fed meet that ben bernanke likely might not stand for a third term. who better to talk about this than alan greenspan, former fed chair? he will join us live on "power lunch" when we come back. [ male announcer ] do you have the legal protection you need? at legalzoom, we've created a better place to turn for your legal matters. maybe you want to incorporate a business you'd like to start. or protect your family with a will or living trust. legalzoom makes it easy with step-by-step help

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look at it on the screen, we could get the big unveil in moments, the ipad mini. it's why we're here. all about computers so far. going to continue to bring you headlines when we get an ipad mini. let's see, 'cause i'm watching but what guys are watching, folks, which is tim cook on stage, right behind us. that's big number. 100 million so far sold. you heard him earlier say that the iphone has been the fastest selling phone in history and that more people have upgraded to the new operating system faster than at any time in history as well. so, apple so far has been rolling out all kinds of soup p -- superlatives, numbers to make your mind explode. what we are waiting for is the ipad mini. i ran into gene munster of piper jaffray on his way in. i said what do you expect? he said i expect we will get an ipad mini. i said what do you want to see

from this? he said he wanted to see the price point for the ipad minibe under $300. now, a couple of the blogs that follow a really reporting $329, 349. gene said under 3 might provide that critical price point where you won't cannibalize the normal ipad. because if you've got an ipad mini, call it 350 with tax, which is smaller and looking at the lowest end of the bigger, normal ipads, as a consumer might say, you know what i will go for the bigger one, only slightly more expensive what gene also did add was he expects there to be about a one in five can balan can balancization rate from the old to the new. for every five ipads sold, the mini might take away one of those.

their challenge is to find the sweet spot in price and availability and desire that doesn't cannibalize their other products. as soon as we get more on the ipad mini, we will have more. >> bring in dan ackerman to talk about some of the points you just made. as we begin our segment, the first question i had for you is what is the risk to apple that this new smaller, cheaper product cannibalizes the existing one? brian made the interesting point there that threading the needle prize-wise so that it's low enough to lure you to sell but not so low that it lures too many people away from the higher-priced item is really the trick here. what are you hearing, dan, on price and what do you think the sweet spot is? >> tell exactly what the perfect sweet spot is, i have heard 250 to 299, certainly makes sense, the reason why the original ipad knocked off all the other competitors the same size, samsung and other companies, they cost the same as that ipad.

in the smaller area, you have got tablets pretty darn good for 199 and google probably going to drop the price of their nexus 7 to 99 for the holiday. face underneath price pressure they hadn't had in the bigger space. >> what has apple done today as we wait for this new product announcement? what have they done today to refresh their ecosystem, ibook, itunes and other products that they have announced today, because that's something we will probably overlook in the headlines tomorrow, nevertheless, very important. >> like to talk about ipads a lot, $500, maybe the new one less, the imac, mack minis, mack books, 1500, $2,000 machines. a lot more of. new designs going into the holiday season, something desirable, high end, a reach product. >> i would like to quickly jump in with a comment and a question, guys, sorry interrupt

if i can. dan, we showed the banner at the bottom of the screen, apple's ipad is selling, a, more than any pc and b, consuming 91% of all web traffic. i mean this sincerely. is there actual competition in the tablet market? >> not in the tablet market, the 91% is for tablets and smaller, amazon one, the barnes & noble one, nexus 7, reading books, watching movies, it is not near the ipad yet, ipad can't afford $500 for the ipad. >> what point does a tablet become too small to use? >> that's what we're doing, subdividing this, nine-inch things and three and four-inch phones, somebody came out with a five-inch phone kind of like a tablet, now a seven-inch thing, we will find somebody with an 8 1/2-inch thing or 4 1/2-inch thing within the next six months probably. >> be back with you in a bit.

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the market selloff has the dow down 229 points, you might easily forget that the fed is kicking off a two-day meeting today to discuss the health of the u.s. economy and its impact of qe 3. this comes as "the new york times" reports that fed chief ben bernanke is unlikely to stand for a third term, no matter who wins the election this year. well, the perfect day to have on this particular guest. he is with our steve liesman first on cnbc, former fed chairman alan greenspan. steve? >> sue, thanks very much. i'm here at the conference where i just did a one-hour discussion with the fed chairman, the former fed chairman, alan greenspan. thanks for joining us. >> my pleasure, steve. >> the market is down over 200

points right now. are we learning anything about the economy from the concern about corporate earnings out there? what's your view of whether or not we may be headed for a renewed slow down and corporate earnings telling us there is reason for concern? >> first examine what the data showed it is fairly obvious that with productivity gaining modestly a little over 1% at an annual rate, but more importantly, the general corporate price level had flattened out, that there has been a significant squeeze on profitability on domestic earnings. and then when you throw in the weakness in europe and elsewhere on foreign affiliate earnings, you get a turn on the outlook for earnings, of course, very strong for a while. what is catching up with is equity premium also very high.

one would have thought that would have given us downside protection. earnings now are turning and historically that has always had a big impact on prices. >> there reason for renewed concern? did you fete from how the markets reacting and earnings that maybe the growth level is lower than that? >> you mean, whether the -- i'm sorry the -- >> the gdp growth level is lower? >> no, no, no i think the actual measurement of the gd st. fairly accurate, considering that it is not all that accurate, a very rough calculation. no reason to believe that there is a bias significantly lower number t may turn out to be that way because capital investment is clearly weakening.

there have been some semblances, sense of stabilization. but because i have always said in the past that stock prices are not merely a leading indicator but far more importantly, they are a cause of events. you look at the equations which work best, the value of stock prices relative to the cost of producing capital assets new, is a very critical determinant of what the -- of what basically get in profits. the result is this -- these profit figures and the significant weakening that's occurring in capital investment this particular stage may start to stabilize. often going down and then stabilize. we don't know. >> do you feel there is worse news out of europe in terms of

over there and impact on the u.s. economy? >> i don't see any closure th e there. >> i have been saying the only solution to the your very political consolidation of the euro area because i don't believe that you can have essentially 17 welfare states where some central authority is controlling the fiscal affairs. the welfare state is, by definition, one that employs the budget in a certain american. and therefore, it is only if you consolidate the whole system that the system will work. and i think what we are doing now is we are substituting central bank credit forth fiscal deficits of the individual countries. that could work if it weren't

the fact that what you are dealing with is people on the streets of athens and madrid is there a level of tolerance. >> same thing applies to the united states coming to the fiscal cliff. how much concern do you have over the fiscal cliff and potential impact on the u.s. economy? >> i'm quite concerned. i'm quite concerned because the amount of friction within our political system is not new. if you look at the caucuses, the democrats and the republicans going back, they look very much the way they look today. in other words, the democrats are caucusing, the liberal areas, the republicans are -- essentially conservative area. must say the population, more in

the middle. that hasn't changed for generations, differently, they don't talk to each other. and unless you can talk to each other around reach compromises, which are necessary in a democratic society, the democratic society is one in which one would assume that there are individuals with individual rights and which everyone has decided to live together in comedy because they have certain things in common. it implies you have to compromise, not your principles, but the way you implement them. >> we are going to run out of time and i'm going to be remiss if i don't ask you at least one federal question which is do you have concern this will lead to inflation? we don't have a lot of time for this answer? >> tell you specific statistic. i worked with he at the fed and before and since. the ratio of money supply

divided by the capacity of the economy to produce goods and services. that ratio when you match it up against the general price level doesn't move very closely over three, four, five-year periods. the data i'm working with now, shows the ratio between those two relationships, the price level and unit money supply is very close to what it was in 1925. which means that whichever's cause and whichever is effect, that associated with inflation has basically been unit money supply. over the long run. and am i concerned about what is building up? i think the fed has the capacity to bring it in when necessary. so, i'm not worried about that. but if it is not brought in, i am worried. >> okay. former fed chairman alan greenspan, thanks for joining

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the i mad minut pad minute d minihas been revealed. we don't know the price. they revealed a fourth generation faster ipad with a new chip. the price is the same of the old. we don't know the price the ipad mini. apple surprised. fourth jen ipad, ipad mini. computer stuff. much more on a very fine program in "street signs" coming up in a few seconds. >> be there in a few seconds. put up a stock chart of apple, that stock, as brian has been pointing out, has been down on the day. it was up from the beginning of this announceme