hi, everybody. welcome to the wall street journal report. i'm marie bartiromo reporting from washington, d.c. what do people say about the economy gridlock in washington? what steve thinks about detroit these days, what europe is going through and what it all means to the market. capitalism and do corporations have a conscience and why it matters. the "wall street journal report" begins now. now, maria bartiromo. here's what's making news as

we head into a new week on wall street. europe's financial crisis may not be over, but it appears leaders there have taken a significant step to help resolve it. after a late-night meeting, eu leaders announced the debt deal late in the week which could force european banks holding greek debt to take a 50% loss. that in turn would lower greece's debt to gdp ratio. the bank would also be forced to raise more capital to protect themselves against any further losses. the economic union will double the size of its emergency fund to $1.4 trillion. the news sparked a monster rally on thursday this week. the dow rose about 330 points, the fifth triple-digit move in five days and past the 12,000 mark on the dow once again. america's economic report card is in. the gross domestic product that brought us the measure of the strength of the economy showed an annualized growth rate of 2.5% in the third quarter. it lessens the possibility of a double dip recession.

they are beating analyst expectations. exxonmobil and dupont all missed expectations. netflix beat expectations, but it is losing subscribers. amazon fell sort but it is investing capital in long-term projects. ibm has a new woman in charge. virginia rometti named ceo and president this week. there are now 16 women ceos of fortune 500 companies, the most ever. it has been an incredibly event ful week to europe's bailout plan to the gdp. where it might head next, author of the book "overhaul." steve, good to have you on the program. thanks for joining us. >> nice to be here, maria. >> so it seems europe will help bail out banks, holding out for

that greek debt. do you think this is a fix here, or are there more bumps in the road? how do you see this? >> i think the best way to describe this is the end of the beginning. the beginning was to solve this immediate liquidity problem, the fear, panic and so forth. and while there is a lot to be worked out, it looks like they made good progress on that. what they haven't addressed are the functional economic problems within urt othe eurozone that c these difficulties. for instance, italy still has a 400 debt to growth gdp. they are not growing, while other european countries continue to plow ahead. europe still has a lot of work to become a truly integrated economic entity, so there will be more bumps in the road. >> the gdp showed 3% annual growth. what do you think that shows

about here? >> i think a number of us would have put the odds at 30 to 50% a couple months ago. now i think the odds are down to 10% or thereabouts. the world market, we're all focused, of course, on unemployment, so the next jobs report coming in in about a week will be very, very important for all to see. we still don't have growth and personal income. there is still a lot of wood to chop, but certainly this is a good number and one that gives us some reason to believe the economy will continue to grow at this very, very modest pace. >> so here we are in sort of a slow slog in the u.s., waiting to see some real substantial job creation. what's your take? how do we create jobs? there is lots of gridlock in washington, president obama trying to work around that, introducing measures and student loans this week, but really just nibbling around the edges, if you will. can that have a real impact? how do you have a substantial real impact on jobs?

>> the president is doing the best he can with the cards he has to play. the fact is the gridlock in washington is worse than it has been any time during the 40 years or so that i have been around washington or in washington. it's really quite extraordinary, actually, to see how little is going on in congress at a time when there is so much at stake. so the president is doing the best he can. these are small war measures, they're not going to have a huge impact on joblessness. so given the fact there is a presidential election coming in just almost exactly a year, i think the best we can hope for is maybe a slow decline in the unemployment rate, maybe a percentage point or so, over the next year. i don't see anything better than that in the cards for the moment, unfortunately. >> and, of course, that is agenda 1 of occupy wall street. what are your thoughts on the movement? >> i think there are two important points about occupy wall street to keep in mind. the first is that our financial

system and our financial institutions are of critical importance not only to america but to the world. they are a huge source of good, high-paying jobs. they've been one of our great growth industries. it's an industry that we dominate the world in, and none of us should want to see that diminished or destroyed. having said all that, the people in the top 1% who are -- many of them are on wall street have to understand that the grievances of the people in the bottom 99% are very real. these people have seen their incomes decline steadily for ten years or more. they've seen their jobs being lost. they've seen their lifestyles threatened. if we as a society don't get together and find a way to help address these very real problems, then this is all going to become very large, very ugly and potentially have some very unfortunate consequences for all of us. so i tell my friends on wall street, you may not like the rhetoric, you may not like the idea of being singled out, but you have a responsibility to help try to solve this problem at the bottom 99%.

>> yeah. we talk about this 1% like it's just the bankers. you're part of the 1%, right? >> 1% is $300,000 income and above. so yes, other doctors and lawyers and other professionals certainly make that much money and more. >> you built the blueprint that helped save the auto industry during the financial crisis. how would characterize detroit today? how do you see its future? >> detroit is in incredibly good shape. we had earnings this past week from ford and from chrysler that were -- certainly in the case of chrysler, which was one of our patients, if you will, were well above anything we ever imagined in our wildest dreams during the restructuring. so the auto companies are doing exceptionally well, even at a period of continuing modest rate of car sales growth, the so-called sar of about 13 million a year. as that sar goes up, these companies will do even better.

but you have to separate the companies from the jobs in the sense that we save these companies, they are very profitable, they're selling a lot of cars, they are increasing the number of employees very slowly, but remember that a lot of these new workers are coming on board at $14 an hour, which is $30,000 a year, which is half of what an o-line detroit worker makes. we only solved the problem for people, which is part of this national challenge you and i have been talking about. >> absolutely. steve, thanks for being on the program. thank you very much. steven rat ner joining us in new york. house minority leader nancy pelosi. i'll get her thoughts on the economy and congress's relationship with the president. later, can controversy and laws co exist? we'll take a break and have the stock market i understaend of w.

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well, the deadline is on. by november 23, the so-called supercommittee in congress is tasked with cutting $1.5 trillion from the country's budget. will the parties come together? earlier i spoke to minority house leader and house speaker nancy pelosi about that relationship and the supercommittee. >> the super committee, maria, has a super opportunity to do something great for our country. something big, something bold and something balanced. the $1.2 trillion that is called for is in deficit reduction. some of that will be in savings, some of that needs to be in revenue. it's not just about cuts. we did just cut $1.2 trillion. but we had sent out people to the table with their values, their knowledge, their

experience to get an agreement with no sacred cows, no lines in the sand, no anything. just get an agreement. >> i saw an ad of yours recently. your campaign is out there campaigning, promising no cuts in entitlement, no cuts in medicare, medicaid, social security. if that's the case, can we ever have a budget balance again? >> you don't have to have cuts in those initiatives in order to reduce cost there. and we have proven that we're willing to make cuts in the cost to initiatives wech. we took half a trillion dollars out of medicare and the affordable health care act, the health care bill, already. >> health care is certainly something i want to bring up here. there have been 1800 waivers, granted, 1800 companies that do not have to be following the laws of this health care legislation. the government said scrap the long-term care provision, scrap the hearing provisions.

30% of all plan providers will dump their employees onto the public system. what are you going to do about this? >> i think that you're seeing one side of the picture. on the other side, the way we see it, is an innovative pr veni -- prevention-oriented way for businesses to be emancipated from health care costs because they have a way out or whatever worked for them. >> if 1800 companies got a waiver, that would tell you -- it's too expensive if you allowed 1800 companies to opt out of this plan. >> i couldn't speak to all 1800 of them, but some of the list that i have seen have been very, very small companies. they will not have a big impact on the economy of our country. but what is important to note is that we will have lower cost of health care, improved quality, expanded access, and in a way that enables people to change jobs, start a business, be self-employed, to reach their

fulfillment and the dynamism that that brings to our economy to have this. >> but they're not all small companies. mcdonald's has been given a waiver. these are not all small companies. do you regret pushing health care as aggressively as you did instead of pushing a jobs package when you had the chance? maybe we wouldn't be in this position right now if you had all the guns behind this jobs packages as opposed to what you had with health care. >> that really isn't the point. the point is when president obama became president, he put forth a budget that was about job creation, about deficit reduction, about lowering taxes for the middle class and about stabilizing our economy. and the job creation was centered on three pillars: health care, energy and education and innovation that goes with that. the health care bill was part of a jobs bill. >> recent opinion polls tell the story. and the public approval of congress is as low as 9%. does this concern you? what are you going to do about it, and what kind of personal

accountability do you take for that? >> i myself would include those among who are dissatisfied about the conduct of congress. i don't know who is in favor of that how things have gone forth, because you have seen a polarization. but that doesn't mean we pull our punches to what we believe in, and it doesn't mean we don't honor our responsibility to try to find common ground. but when we don't find it, to stand our ground. we come back to the table of the package that -- you know, the supercommittee will put forth. i hope that we can reach $4 trillion. we're willing to make concessions to do that. i hope the republicans are willing to as well. >> how important are concessions about the regulatory environment? this is the final question here on this murky environment that we're seeing. ceos are telling me all the time they don't know the details of dodd frank. it's the law of the land and we're still writing the rules. it seems like we're going around

things and the epa is coming out with its own rules. you've got the labor relations board, the situation with boeing. do you think it's right that boeing has to close down that plant in south carolina because it's non-union? >> yes. i don't know that they would close it down, i would hope they would make it used. >> why? this is a corporate decision. should the government get involved in corporate decisions like that? >> you told me what i thought, and i told you what i thought. apart from that, the u.s. has a bigger question. the evoka rule has to be spelled out more clearly. the uncertainty is not a positive thing, but it happens when you make change, and it takes time to listen to what people are saying in order to go forth. but -- i think we subject everything we do to scrutiny. is it in furtherance of what we intended to do? is it in furtherance of growing our economy, keeping us number one, creating jobs? as i said, i sent out people to the table, practically, as

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says we should be searching for the next big way, behavior and rethinking how we do things will spur innovations of the 21st century. dove sideman is the author of "the how." >> we live in a world where we have shifted from the how to the what of what we do. we are now rising and falling together. one banker at his computer can cost his bank $2 billion and all his colleagues their bonuses. one vegetable vendor in the middle east armed with a cell phone camera can ferment a resolution to freedom like that. so in a world where our behavior can affect people like nothing before, we have to innovate. but the behaviors are not crisis to crisis, they're the behaviors

that gain advantage for us. those who can innovate, collect and collaborate and the leaders where all that takes place, they will thrive eagerly in the 20th century. >> so ylet's talk behavior. how have americans been behaving as employees, as employers? how do you think that needs to change? >> i think that's the fundamental question. all behavior comes from values, and there are two types of values. there are situational values where you do whatever the situational louz. if you think in terms of what you can and can't do, i'll send a package halfway around the world, so be it. those values make us think about the here and now in the short term. sustainable values make us think of what we should and should not do, and they inspire us to be long term. these are the values that literally sustain human relationshipses, truth, honesty,

trust. we need to reattach to those, especially in this ethically and morally unsteady world. >> can you talk about that value system you talk about as you get bigger and bigger and bigger. there are huge properties in the united states, exxonmobil, microsoft, j.p. morgan. these are companies in the business of making money. how do profits and principles, the principles you're talking about, coexist? >> they're not going to keep making money if they don't focus on how they make money. if a friend came to you and said, i need $20,000. you would say, how are you living? how do i help you get back on track? whenever we scale at a national level, it's stimulus. on a corporate level, it's how much market share do we take? when we scale, we go from how, which is what life is about, to

how much. until we figure out a way to measure the how, we won't be able to do the how. >> let's talk about trust. that's a major thing in this conversation and, of course, the occupy wall street movement going on right now. what values do you think employees today want to see from their companies? i mean, certainly they want trust, they want to trust, but what do you think the values are of employees today? >> i think what occupy wall street is about, which is what employees are clamoring for, people want meaning. this is a world we're trying to make sense of. they don't want just a job, they want a career. i think we have a careers crisis. it's not just about justice and fairness, it's about this idea, whether it's a dictatorship in the northeast or a commanding boss, people are trying to tear down the system that is standing in their way of controlling their own destiny. people are searching for life and meaning in their lives and their work. they want a meaning that's not

just about their work, it's about collaboration and cooperation. people who foster that will win. >> doug sideman, thank you very much. looking at the news that will have an impact on your money. who are the people in our global neighborho the birth of a milestone that will be hitting this halloween. stay with us. in america, we believe in a future that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams.

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for more on our show, check out our web site. i hope you'll follow me on our twitter handle at maria bartiromo. we'll get earnings news from i unilever, starbuck's, kraft and other companies. total sales are out on tuesday. chairman ben bernanke also holding a press conference. on thursday the leaders of the world's largest economies will meet once again at the g-20 annual gathering, this year happening in cannes, france. friday the release of the monthly report. we'll find out how many jobs were created or lost in the month of october. finally today, is it getting crowded in here or is it just me? on monday, october 31st, somewhere in one of 200 countries, total world population is expected to reach 7 billion people, according to

data information. it took 123 years to 1927 for that number to reach 2 billion before expanding rapidly in the last century. the largest age group are those 20 to 39 years old who make up more than 30% of all people in the world today. amazing. that's the show for today. thanks so much for joining us. next week i'll talk to chuck, my new guest, in investing legends. i'll also talk to charles schwab. have a great weekend. i'