look at him running down the street while a man chases him. he is not going to be caught. maybe he's trying to avoid becoming someone's dinner a few weeks. he's been hanging around the same area since september and he's even earned a couple nicknames from the local construction crews. they like to call him tom and kenny. i'll be back in one hour as we focus on politics, election day 2012 exactly one year from today. we'll hear from the president of the united states and from all those republican candidates who want his job. i'm fredricka whitfield. "your money" starts right now. welcome to special edition of "your $$$$$." i'm ali velshi in cannes, france, covering the g-20 turned out to be something other than what i and the entire world thought it would be with the crisis in greece and more pressure on the eurozone. here to discuss this and impact on the world economically, politically and financially our

john king, chief national correspondent and host of "jk usa" and sheila behr, former children of -- chairman of the fdic. before we talk about this i want to bring in christine romans to explain why this has been such an important deal in the united states. while i've been out here in cannes, the u.s. has been watching very closely what's going on here and what's been going on in athens, christine. >> there's a growing understanding that u.s. and europe are in it together. anything that is negative for greece and the eu, is not good for america. europe is america's number one trading partner. there's this feeling that we don't quite understand how the domino effect would be. if greece goes down, the first domino in interconnected trade, banking, financial system. you know, $400 billion of u.s. exports go to europe every year. that makes it a huge destination for our goods. if there were a severe recession in europe because of a financial crisis, it would definitely hurt the u.s.

there's also over a trillion dollars of direct investment in the eu from the u.s. and another $2.7 trillion in loans and other commitments. everything from banks, companies, municipal governments, retirement funds all wrapped up and tied up in business with europe. it's two very close allies, two regions that depend on each other financially. it shows we're in it together. what's good for europe, good for the u.s. not good if this doesn't get solved quickly, ali. >> which is why all eyes have been here all week and in athens. i'll check with you later in the show. john i'll bring you in. you've covered things like this, international summit. typically, when you're here with the president of the united states, most eyes are on the president of the united states. interesting things are happening at this g-20. first of all the president of the united states is here, the treasure secretary. premier of china, hu jintao is how. here. all eyes are not on these people. is this a sign of shifting

global sands that the u.s. is just not the primary player in a week like this? >> i think that is certainly a sense. you see it there when you're in the summit and hear it back in the states when you watch whether it's people in washington. i'm in des moines iowa covering the election. when you talk politically about the future, there is a question, is the united states still the preeminent economic leader in the world. can president obama go there and make a case about european debt when washington is concerned and disfunk functional about u.s. debt. when you travel the country, this is not a business term, but you sense there's constipation in the economy. corporations won't spend the millions they have because they have anxiety, uncertainty about europe and the u.s. tax structure and debt structure. last night i met a woman who got laid off from a job at a hotel because the owner can't get financing to do the big renovation. there is a sense of uncertainty. you see the president on the world stage, feel it on the local level here and it's going to impact the next presidential

election in a big way. sheila, let me ask you, you spent years trying to keep the banking system safe. at the heart of this is the banking system, the risk. explain to us what's going on and what they're doing right or wrong to keep the banking system afloat and why that's so important? >> european banks are thinly capitalized. there's differences among institutions. as a group they are much more thinly capitalized than u.s. banks. one of the reasons is because the rules that european regulators follow are much more permissive in terms of letting bank management decide their minimum capital levels. so i think what we need to do now is have a rigorous stress testing of the european banking authority with realistic loss rates, true distressed economic scenarios and capital level minimum ratios based on hard and fast minimums what we call leverage ratios in

the u.s., other than the much softer risk weighted ratios that the eba has been using in european banking, and other european regulators have used. i think, you know, confidence in the european banking system is important. they need to be building for tress balance sheets right now. this is not the time to be fudging numbers or be less than completely forthright about the levels of capital and what additional capital needs to go in to stabilize that system. >> what's your sense of their understanding of that? we've heard from the french president nicolas sarkozy, from angela merkel. these are countries whose banks are most concerned. they're the stronger countries. is there a sense that all the players at the table understand what you said and are generally prepared to move in the right direction? >> no, i don't think so. there's been a lot of focus on the problems of the sovereigns. ultimately the impact it's going to have, the banking system is

what's going to cause a severe credit contraction that could cause broader problems for the european and global economies. i don't think enough focus has been put on this. they need to get those levels up with real capital. it may require dilution of shareholders, might require temporary nationalizations. much more aggressive action needs to be taken on this issue. >> that shared pain or aggressive action is exactly what is causing countries like greece to be concerned. it's disallowing people from doing what might be necessary because they are fearful of the impact on this. john, i have to tell you. you're on that campaign trail. this is not the kind of discussion, this fear of contagion of this debt, the idea of what christine described a slowdown in europe affecting the united states, this is not making it into the campaign trail at this point? >> they are not talking as much in the fine detail as you were talking about with sheila.

they are talking about the idea in the view of the republicans campaigning, i sat down with texas governor rick perry, he says president of the united states can't go to the meeting with big leverages because he doesn't have anything positive to say. the united states has not dealt with very similar problems. that's an issue you'll hear, criticism of the president's leadership. more importantly, ali, 9% unemployment still, the u.s. economy creating jobs, 80,000, not near enough to bring the rates down or put confidence into people. are people here discussing the european debt crisis in the fine detail the leaders in europe are, the conversation you just had with sheila? no. are they aware it's a huge drag on the economy and not just the factory up the street? or the factory in the state next door? they are about that. when you travel the country and talk to people about their economic anxiety they talk about global pressures, more about china than europe but they're aware this is a big global problem. >> that's a very good point. china tends to be the focus but europe is, in fact, as a group the largest trading partner.

what the implications may be the realization while everybody is mad at washington for what they did or didn't do right legitimately, the fact is the rest of the world may have a bigger impact on jobs back at home than congress can even. let's continue this conversation in a minute. john king, sheila bear, stay where you are. you're watching a special edition of "your $$$$$" from cannes, france. steak burger soup. [ dad ] i love this new soup. it's his two favorite things in one... burgers and soup. did you hear him honey? burgers and soup. love you. they're cute. [ male announcer ] progresso. you gotta taste this soup. ♪ we're centurylink... a new kind of broadband company committed to improving lives with honest, personal service, 5-year price lock guarantees and consistently fast speeds. ♪

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welcome back to your money. ali velshi in cannes france. covering the g-20. we've got a blue ribbon package to discuss global politics and economics and the affects on you. john king, national correspondent at cnn and host of john king usa and sheila bair, former chair of fdic, a body important to americans arthritis the worst of the financial crisis. john, sheila bair has a broad

role she and the fdic she played during the financial crisis. i want to ask you, sheila, people watching the show, called "your $$$$$." if you're not interested in your money you're probably not watching the show unless the batteries are gone on your remote. we don't all know the details about banking. most people would be surprised banks keep less money in core capital or safe capital than we think they do. when you look at this crisis in europe, with the hindsight of what we went through in the united states, is this problem in europe imminently solvable or should we in the united states or the rest of the world be fearful this is not solvable and could send us into another financial crisis. >> i think it's solvable if people face up to reality. one of the harder pieces of reality is that the low capital levels in european banks. they really need to get the capital levels up. if you get into a period of economic distress and banks have too low capital levels, that

will threaten solvency, threaten whether they remain viable, whether they can keep lending. building what we call fortress balance sheets, getting capital up, it matters. it's a job of regulators, a good example of why regulation matters to our broader economic health. >> christine romans will take it from here, i'll go back to covering g-20. christine? >> thanks. >> i want to bring in ian, president of euro asia group. ian, nice to see you. the focus on the crisis in greece. in time we could face scenarios with other european countries like italy, spain, portugal. when will this constant threat of financial crises recession in europe, and what it could mean for america, when does that subside? >> it can't subside for quite a while, and in part, that's part of the plan. if you're germany, france, core european states or european institutions, you know that the only way you end up fixing european institutions is by continuing to use market

pressure to ensure austerity continues. so you can't write a check. talking to angela merkel last year at davos, she was basically saying the only day she really has leverage is right before she cuts the check. everyone understands that. and so it's not going to be a german marshall plan. this isn't the post-war environment. you have to change european institutions. this is not just a matter of weeks or months. we'll be talking about this european crisis frankly for more than a year. >> john king, what does that mean for the president and re-election. every minute we're talking about greece is a minute we're not talking about the fact that the jobs market in this country is still pretty what. does it have any bearing on a president who is going to be soon, if not already, in campaign mode? >> it has dramatic bearing. he is in campaign mode. he's trying to do two jobs at once, be president and campaign for election. look what happened in recent

days. greece has a plan, markets in the united states rally. the prime minister says wait, i'm going to have a referendum, the market in the united states go down. europe appears to get a deal, up, down. what you went through with ian, italy, spain, portugal, if we're going to have this roller coaster into a presidential election year you'll have volatility in the markets. we know ben bernanke said this week, persistently high unemployment by the time the president seeks re-election. this is the number one issue in the country, it is for him as a leader and voters. the voters after being promised things would get better after promised the stimulus plan would help you can't blame all of it on the president. when you're the president of the united states running for re-election in a tough economy you take a hit. this is a steep hill for him right now. >> are there any steps that administration, the president should be taking to best position our economy for possible fallout from europe? i mean on the one hand the u.s. can't go there and say you should do this because we're still blamed for the financial

crisis in 2008. we don't have the moral authority we once had. >> the u.s. doesn't have a lot of moral authority on social disillusionment. i thought sarkozy's speech talking about tfact that any pln comes from the imf is going to take into the fact that people are hurting on the ground reflects occupy wall street in the united states. there's not much obama can do quite frankly. he's very much frustrated because he lost -- his party lost the midterm elections. he doesn't have the ability to actually get anything through, through 2013. that's romney's best opportunity to beat him. obama can talk about the fact that unemployment numbers are starting to go down very, very slowly, he can talk about the fact american growth looks a lot more resilient than european growth, those are all true facts but this election is going to be about the economy. the economy is going to be fundamentally weak. really, 2012 is about the power of american incumbency, which is very strong, against an economy that looks weaker than at any

point since the great depression. even president obama is going to be very vulnerable in that environment. >> sheila, i want to bring -- you are an expert on banks and banking. the risk for u.s. banks, what is the risk there? it's such a global interconnected financial system. i'm still trying to get my head around, i don't know if any of us will know, what the exposure is for credit did he fault -- default swaps, some of the complicated derivatives that banks and investors put on just in the very case of something happening in some of these countries. what is the risk? >> there is significant risk. a lot of inner relationships. not much direct exposure to the peripheral sovereign debt either through direct ownership or cds coverage. certainly there is a lot of exposure to the european system generally in european banks generally. which is why i hate to sound like a johnny one note but there needs to be a laser like focus on building the balance sheets and resiliencies

of the european banking system to absorb what's going to be a prolonged tumultuous time period as ian indicated. as you indicated earlier, europe is a huge export market, certainly an economic drag if their economy falters and in experts to -- exports to europe reduce. it could have a knock on impact on our banking system which could lead to further credit contractions here, which would not be good. >> it wouldn't be good. the uncertainty is not something that anybody needs right now. >> yes. >> exactly. sheila bare, ian bremer, john king, thanks to all of you for fascinating analysis. does the latest jobs report often evidence that we may have averted a double dip recession? dude, why don't you just use the stuff? [ male announcer ] head & shoulders: seven benefits. every bottle.

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aspercreme breaks the grip, with maximum-strength medicine and no embarrassing odor. break the grip of pain with aspercreme. . 80,000 jobs added in october, better than nothing, but it's not enough. you need 150,000 to keep up with population growth. this is what it looks like, over the past year, 80,000 jobs

created in october. the unemployment rate slipped a little bit to 9%. private sector created 104,000 jobs. there were revisions if you look at august and september, you can see those months were better than we thought. there was more job creation end of the summer early fall we had thought. i guess you could take that as good news. you've got a full year of job creation. diane swonk chief economist with mesereau financial, it does not feel like a recovery. is it that so many ceos and companies are just so afraid that things are going to turn south again and don't want to have to fire, you know, they don't want to have to hire people to turn around next year to fire them? >> that's right. >> most people forget they are people, too. they don't like firing people after they hired them up. the issue is uncertainty. look at icebergs we have floating around out there. europe on the front page every day and going to be for some time to come as the earlier segment pointed out. we've got our own impetus in

washington and what's going to happen with the super committee, will they get the $1.2 trillion, deal with our own fiscal situation in the u.s. there's so many uncertainties out there, it really is hard to get vision. we don't have vision without cash on the balance sheet. it's hard to make the commitment to hire because you don't know what the economy is going to look like going forward. looks like they may not extend the payroll tax cut, a de facto tax increase at the start of the year. even if we make it through the fourth quarter you're looking at the beginning of 2012 and not a good environment to be hiring up in. >> peter a professor at the university of maryland, friend to the show like diane is. this is a trend, these people out of work six months or longer, a real problem, a real problem when you start to talk about structural unemployment, is that reversible at this point? can we reverse that? >> not until we get demand growing a lot quicker. with the dead overhang, the

heavy level of imports we have and so forth, demand is growing not adequately. it isn't that people aren't buying, demand for domestic products isn't strong enough. in that environment people that are unemployed more than six months are the last ones to be hired back, or at least further down the ladder. people who have recently worked are more attractive. >> that's why you're seeing the job -- there's a big controversy about job ads, all these job ads that say you must be currently employed to be considered for this job. that just doesn't -- that means it's impossible -- >> that's terrible. >> that adds insult to injury. >> absolutely. >> employers will lose good people, too. because there are some people who are victims of all this, perfectly good employees, this is the whole problem of the labor market. ted is a ceo of a place that places people in jobs throughout the world. he knows firsthand to know what it's like to hire, who is hiring and what it's like to hire now. you point out, ted, temporary workers are not being let go in large numbers right now, a sign corporations are going to the

temporary worker and they need those workers? >> absolutely. where companies absolutely need capacity, they are going first to a flexible solution. that means they are coming to temporary and contract workers as a first step. we saw that in a jobs report with 15,000 temporary jobs. that's more than what we expect with a seasonal increase in the fourth quarter. that's a good sign and more and more people are getting their permanent job opportunities having completed a successful temporary contract assignment with clients. >> that goes to underscore what we've been talking about, how it's companies are just too -- they are too timid right now. they don't have the clarity of next year. too much uncertainty, too many icebergs. >> too much uncertainty. for sure, consumer confidence is at a level you can't look at this and say 70% of economy driven by consumers, it's going to take off here. we're in good shape. they're going to keep being very

cautious as they move forward and look for flexibility in the workforce. >> diane, i want to bring you back and talk about young people. as we look at the unemployment rate, there's a good report about how we have this whole generation that may be unemployable. i mean, all these people that don't have the first foothold in the economy. you have people out of work six months or longer and people who have never even had a chance to work. what kind of a challenge is that for a modern economy? >> it's a huge challenge. they are not learning the simple things of what it's like to go to work every day and be responsible and what it's like to do menial work even. i was a maid at one point in time, i worked at a burger place now defunct. these are things that are important to learn those skills. they teach you you don't want to stay there, believe me, if you have an ability to get out. i think we're losing that. i this summer made my 16-year-old take an unpaid internship, i was afraid if she took a job she would take it from an older worker. i wanted her to get the skills. show up for work every day. she took the unpaid job to get

the experience. i think that's important. without the experience you get the compounding effect of people not having experience and not wanting to hire them either because they don't have experience and practical skills in the workforce. >> peter, you look at some of these big issues in front of the labor market right now, would the president's jobs plan, anything congress can do, are these temporary measures? what can be done, if anything, in the near term about this? >> i think more debt relief for the people with underwater mortgages would help a lot. the infrastructure jobs bank would help a lot. frankly, freeing up more domestic oil and gas production, because a lot of that stuff creates the same kind of jobs as infrastructure construction, roads, dams. when you do oil rigs, things like cement, pipelines, so forth. that would help a lot and wouldn't cost a lot of money. >> diane, you want to jump in there? >> i just don't think they're going to do anything. i'm concerned they won't extend the payroll tax cut, defacto tax hike.

i'm just concerned that we have a real impe tense in doing anything right now. the fed certainly is trying to do everything they can, but it's a big burden for them to carry on their shoulders. i think that's unfortunately central banks of the world are the ones carrying the burden of growth globally. as we've seen in europe that's a precarious situation. there's just a lot out there that's very difficult still. the only piece of good news i will put in here, small businesses do look like they're being created again. we did see small business pick up. in the adp report. other small businesses are a little more optimistic. that means new business births look like they're picking up. the household survey better than the unemployment report that came out today. that's one piece of hope. >> a year of sideways jobs growth, another year of sideways jobs growth or does it pick up? >> it's likely we could see this sort of pace of job growth for the next 12 months, in the 100 to 150,000 a month. as you point out earlier that's not going to have a significant impact on the overall unemployment rate.

we need to get in the 2 to 300,000 a month range to move in that direction. i agree with diane. we need to see something from washington, that payroll tax put back in place for 2012. remember, health care costs rise every year, for employees they have less take-home pay because of the rising cost of health care. >> that hits the economy because that's money that's not going to something else. ted, thanks so much. nice to see you. the rest of you stick around. another thing to talk about here. another jobs report that leaves us with more questions than answers. forget the temporary solutions. we'll ask our economists for permanent fixes to this unemployment crisis next on "your money." we need a portable x-ray, please! [ nurse ] i'm a nurse. i believe in the power of science and medicine. but i'm also human. and i believe in stacking the deck.

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now you can save big on senokot-s® tablets! go to senokot-s.com. the jobless rate stands at 9%. that number nearly doubled when you look at the underemployment, including those that want to work full time but can only find part time. that's 16.2%. each month brings slight progress at best. what are the real long-term

solutions? i want to turn back to diane swonk. and peter. diane, let's start with you. we've gone over the problems. what needs to happen of the days of 200,000 jobs added each month and 5% unemployment. >> it's going to be difficult. there is no easy bullet. we've talked about if there's a silver bullet to be shot it would have been shot. there are things that could change the market. changing in regulations, easing up on regulation and if we did have more stimulus, i think that would help. we're not going to get it, unfortunately to go on with the ongoing monetary stimulus in the u.s. economy. i think it's important the issue we talked about discrimination against long-term unemployed. we have to eliminate that. that can't happen. then you close those workers out for good out of the labor force. we're seeing many states now pass anti-discrimination laws where you can't say i'm not going to look at you unless you're employed already or unemployed more than six months or more.

you have to do things like unpaid internships, keep the young engaged at some level. even if they are not getting money they are getting skills important going forward. there are things on the margin to keep them employable. the key issue is to not have a whole lost generation at both the older and younger end of the spec strum. >> that long-term unemployment issue, it was part of the president's jobs bill that be made illegal on a federal level to discriminate against somebody because they've been out of work. you can see recruiters do it, see it on job posting boards a bipartisan group of senators saying, please stop doing this, you're leaving people out. it's not fair. peter, my advice is fill your gap on your resume and if it says the jobless need not apply, apply anyway. >> you better be careful with that. >> you think so? >> absolutely. lying on your reese sue may could be a serious issue. >> i don't mean lying. i mean filling it with volunteer work, unpaid internship, offering your

services, fill that so there isn't a big one-year gap since your last job, make sure you've done something. >> absolutely. >> one of the things older workers can do laid off, do that volunteer work. after about the first two or three months of looking for a job, your day isn't filled up by it because you can only send out so many resumes. do something every day. if you budget your time properly, you can then do some of the things young people do and that can lead to other work. i don't mean internships but volunteer works where you continue your skill and keep your cutting edge. working at a nonprofit even on a volunteer basis if you're a financial person can help you get another job. >> and it's a date and a place and a reference and a boss on the resume and that fills that gap. we're talking about we micro can do about something that is a macroproblem. for many people they feel they do everything we tell them and still completely out of their control. peter, at the end of the day america has to increase demands

for its goods. >> absolutely. several things we can do. one deal with a huge trade deficit, half of which is oil. certainly electric cars are helpful but they are a decade away having a meaningful effect. what oil we need, we could start producing here again. we're not doing anything from the environment like shifting production to nigeria, just putting the problem some place else it's less manageable. that does put to work a lot of people unemployed by this recession. namely construction workers. also there are real things we can do with regard to underwater mortgages far beyond what the president has suggested in terms of restructuring that debt. for example, having the banks and creditors accept a carry interest in these mortgages. they're going to lose the money or the fannie mae and freddie mac will lose when houses are sold. get the balances down and not just refinance at lower rates. that would help a lot. >> it would help to clear the market as well and i think that's very important. >> exactly. >> peter and diane, have a great weekend, as always, thank you. >> take care.

>> next, the blame game on the economy. the president blames the congress, congress blames the president. shouldn't both sides be focused on who can fix the economy and how or at least not doing things to make it worse? pete and will are here to duke it out next on "your money." almost tastes like one of jack's cereals. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um...

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welcome back to "your money, will cane and piece dominic, first up, president obama saying he can't save the economy all by himself. listen. >> the truth is, the only way we can attack our economic challenges on the scale that's needed is with bold action by congress. they hold the purse strings. it's the only way we're going to put hundreds of thousands back to work right now, not five years from now, not ten years from now, but right now. >> he's blaming congress for failure to jump start this economy. is it going to buy him four more years. the other side they blame him for the policies he's had. >> no. you can look at it many different ways.

politics is perception. most people don't pay attention to day to stay politics but what's happening in their house. he's the president at the time and will take the blame for it. the truth is it's becoming more of a provocative question but people are saying it out loud, david axelrod saying that republicans may be trying to hurt the economy for political purposes so they can get re-elected. it's hard to disagree with that in certain examples. >> really hard. >> >> hard to disagree with the steam. >> absurdity. the president's statement right there encapsulates all the problems with his jobs bill, fiscal stimulus, keynesian economics. all the assumptions built into it is wrong. that's like asking pete to be seven feet tall. he's not built that way. it's not going to happen. congress cannot -- you assume efficient, but congress isn't built that way. what more, going to make jobs right now, one thing about infrastructure, might be stimulative but doesn't do it now. president obama admitted we learned what shovel ready was. >> will, look, more than just a

jobs bill. frankly there's the super committee, like really big structural things that congress is going to have to agree on. >> congress is built that way, you could spend money on infrastructure. jobs won't be created right away. you agree they will be created. there's a lot you can do and has done in the past to get together. >> let's advance here. i want to talk about newt gingrich. he wants to attach a mandatory training requirement to all unemployment compensation. >> you say if you need unemployment compensation, fine, but you have to sign up for a business offered job training program. if you have 99 weeks of unemployment, that's an associate degree. in 99 weeks you can train anybody. you establish the principle we do not give people money for doing nothing. >> will, does newt gingrich have it right? i point out the president's own jobs bill pitch included -- it showed the georgia works program. they said we'd like to do reforms to unemployment insurance. >> i think the president and newt gingrich have an interesting idea here. at the point you have unemployment lasting 99 weeks,

you have a question about incentive, are they holding out for jobs they want versus what is available. germany and georgia -- >> will there aren't any jobs. >> that's right. >> there's three people for every one job or five. >> we're not disagreeing. are people holding out for jobs that might not exist. in georgia and germany they have done jobs training programs, they help in a lot of ways, help psychology, make people happier, more productive but doesn't fix the economy. only true fix for unemployment is a growing economy. >> i'm not really impressed wit. to be honest, i'm not impressed with training programs we have. you have to start from scratch, find the ones that work in this country and do it. there are people from all political stripes say 99 weeks of unemployment is a very long time. at what point do we say that's enough. >> you mentioned germany and they do work sharing which is for another segment, another show, i'd love to talk about. listen, there's this idea that people are sitting around and not wanting to work. that idea is pervasive because

we all know that person. it's anecdotal but not true. as we just mentioned, people are looking for jobs. there aren't any. the fact is how are we going to find money to pay for retraining. last thing i would say, unemployment, it's insurance. it's not a benefit. you pay into it, you get it back. it's one of the most stimulative things you can do, unemployment, food stamps, it goes back into the economy. they are spending that money. >> true. the last chunk of that, federal emergency benefits, they are paid for by the federal government. the first part, the state stuff runs out. then somebody has to -- >> money goes right back to the economy. food stamps are stimulative. 100 members of the house, republicans and democrats, signing a letter urging super committee to consider all options to trim the national debt. nearly $15 trillion national debt. one organizer said he will make the ultimate political sacrifice if that's what it takes. >> i'm willing to give up

anything, including my next election, if what we are doing today gives us that opportunity for success for tomorrow for the next generation. >> if a democrat is going to sign off on serious cuts or a republican endorsing tax hikes, do they need to be prepared to give up their job? >> heath schuler is a democrat and also a former quarterback, a successful businessman. i looked up his net worth, worth $33 million or much more. i'll give up my job here as a legislator and go back -- it's like when president obama said i'd rather be a good one-term president than a poor -- this is just politics. >> no, no, no. >> it is good they want to get together and that 100 house members said we're up for spending cuts and tax increases. that's good. i applaud that. >> that cynicism is out of place. look, we all know, any rationale person knows in order to get the debt under control you have to have new tax

revenues and entitlements. republicans give up their jobs by addressing taxes and democrats giving up jobs talking about entitlement cuts. good for heath schuler. >> him saying i'm willing to give up my job, who cares. that's not a big deal. not some brave thing to do. >> makes him one of 300. >> the democrats -- >> i'm saying that looking at the polls, the public wants them all to lose their jobs quite frankly not just whoever is losing something. will and pete stick with us. i need you two to help answer the following questions, why are more and more americans like pete dominick living at home with their parents. we'll get into that next on "your money." its suspension system? or what if we told you that ferrari borrowed technology from cadillac to develop its suspension system? magnetic ride control -- pioneered by cadillac, perfected in the 556-horsepower cts-v. we don't just make luxury cars. we make cadillacs.

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welcome back to "your $$$$$." still with us will cain and pete dominick. all right. occupy wall street heading into week number six. it shouldn't be a surprise that young americans are leading the charge. here might be some statistics that show you why. look someone aged 25 to 34, 90% -- 19% of men still living with their parents today. that's a 5% increase from 2005.

10% of women in that same age group living at home, up 2% from six years ago. you've got the lowest number of people in a generation who are employed in the 18 to 34 age range. all these people are living at home. pete, can we call this a generation officially occupy your parents house? >> maybe. we call this generation officially occupy your parents' house. >> maybe. there say lot of things to look at here, taking -- i would like to see the freakomics guys look at this, because it is much harder to bring a lady back or a man back, have a relationship, start a family. there is probably a lot of positive things too. these young people are saving money. not having to pay your biggest expense, rent, and then health care reform allows a lot of them up until age 26 to be under their parents' health insurance policy, so there is a lot of good and a lot of bad there is a lot of freakomics in here. my parents come down for four days, there is always problems between -- >> i love the very first economic impact he points out is the impact on your love life. >> i know.

i noticed that as well. i'll take it back to politics. look, there is no doubt the young people entered a workforce where it is difficult to find a job. on top of that, i offer they have historical record levels of college debt on top of that. >> oh, yeah. >> and i would have to say, do you notice we don't have mass inflationary prurz essures on computers. we have massive inflationary pressures on health care and education. the two industries where the government is most involved and subsidizing. we have to learn, you subsidize something, prices go up. >> those are two industries that are in great demand. there is huge demand for both of those things. that's another reason why prices go up when demand goes up. so much for that bank of america $5 debit card fee. they released a statement this week, we have listened to our customers closely over the last few weeks and recognize their concern with our proposed debit usage w that, the fee went away. is this an example that the customer wins, a company, a

corporation is caving to public pressure? it wasn't good business to make everybody so mad? >> is this an example of the free market at work? >> yes, yes, both. both. yes. the people were screaming, protesting. they -- >> they were walking. the people were walking. >> they were walking. >> hundreds of thousands of people went and joined credit unions. >> this is the move the money weekend. >> you're tweeting about it. >> i love it, the whole campaign. bank of america, this is one of their problems, the $5 fee. they foreclosed on military families. they paid huge fines. they have done lots of illegal things. there is tons of reasons not to be a bank of america customer. >> the theme was, we got to do something about this. can you believe they're putting fees on to these consumers? well, you know what, the free market just solved it. don't lament and need the need for government intervention. the free market solved your problem. >> you agree that it is a good thing that bank of america dropped its fee. i don't know anybody that was saying it wasn't. people were outraged and were going to lose customers no question. >> we talked about this last

week there is more to this and will made the point last week about dick durbin and dodd/frank and why they had to do this. i said last week and i stand by this, do you side with retailers or with banks? i side with mike's hardware over bank of america. i want the retailer to get more money in a transaction than a bank. >> i put myself on the side of the involuntary interaction. if retailers and banks can't come to a mutual compromise, that's the way it works. >> both stay and we'll see because there are more fees that were popping up and i have no doubt, no doubt that there -- if you're going to -- >> they'll find a way to raise the money. they'll find a way to make up for their losses. >> we'll talk about that soon. up next, how to speak money around the world when "your money" comes right back. luck? i don't trade on luck. i trade on fundamentals. analysis. information. i trade on tradearchitect. this is web-based trading, re-visualized. streaming, real-time quotes.

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welcome back to "your money." i'm christine romans. ali velshi is in cannes, france, at the g-20. i'm taking over the show. we have will and pete for your viewing pleasure. >> we want to take over the show from you taking over the show from ali and will and i were

forced to read and buy this book, which is by you and your work husband, it's called "the bald and the beautiful." >> it's called "how to speak money." we have a couple of questions for you. i throw it to my co-host. >> thank you, sweetheart. christine you write in here everybody speaks money differently, they have different dialects and accents. your sub title is the language and knowledge you need to know. here is my question, how illiterate are we? >> my worry is since the crash in 2008 we're as financially literate as we were before. we run up credit card as soon as we get a chance to do it again. even though we're trying to make mortgages simpler and student loan debt easy to understand, i worry about the kids coming out of college who still don't quite -- i'll tell you something interesting. i'm profiling a university that's giving college credit for kids with financial literacy. because they know they'll graduate with $25,000 in debt. they'll never be able to grow up

and be good contributors back to the college if they don't know how to manage their money. >> how much of it is financial literacy or individual responsibility? people using their credit cards, how much is it responsibility versus understanding what's going to happen if they run up these? >> also for so long the whole game was rigged towards borrow more money. it was beaten into us. >> you can't do that any more. >> old habits die hard. they diehard. >> is this more of a personality finance book or a macro finance book? >> both. the point was ali and i are very different. we speak and understand money. velshi can negotiate for things i didn't know you could negotiate for. that's typical a lot of women negotiate differently or don't know how to be bolder about it. you have to negotiate a different way. women and men negotiate in different i was for different things. i learned so much about that. i wish i had known it when i was 20 because i would have negotiated a long time ago. who knows?

>> women are catching up in terms of equality in terms of wages and salary, slowly but surely, but not in terms of the tricks of the trade, in terms of negotiations for more. just certain politics at work. is that what you mean that they just haven't been in certain industries or jobs as long? >> you know -- >> are we men keeping these secrets from you women? >> women are motivated by different things. >> such as? >> no. women are motivated by different things. women hit their peak in their career at the same time they are hitting their peak in their family. their ability to have family. that's a whole different dynamic. the cool thing is men are too, though. you guys are working dads. it's cool how the generations are different about it too. the workplace is changing and some of the old rules are, i don't know, i think they are going out the window. >> we have to wrap up. i'm sorry. the book is "how to speak money" and there is a lot of great