the mortgage mess continues...as a record number of homeowners continue to fall behind on their mortgages...and it's less risky loans that are going bad. and we continue our coverage on health care cooperatives... why history shows they may *not be the answer to lower costs.. and...as students head back to college many parents worry how they'll pay for it...from taking out federal loans to borrowing books...tips on how to keep down the cost of college...it's ahead on this edition of first business. ahead of friday's market action look at all it could be a very busy 72 hours at the nation's car dealerships as the cash for clunkers program is running on fumes monday night is the last time cash for clunkers is going to be in operation we get so many stories on this issue and car dealerships across the nation always to get paid hundreds of thousands of dollars we've heard stories that

some dealers are waiting to get paid up to $1 million for making those bills under the program. some will also point to that program as the most successful stem this program by the federal government lost ahead on friday include the existing home sales making a speech. a record number of homeowners are not paying their mortgages on time. almost one in 10 outstanding mortgages are at least one payment late, a new record dating back more than three decades. the mortgage bankers association finds in the second quarter, 9-point-2 percent of all residential loans were delinquent...meaning they were at least one month late. that's a jump of almost three percent in the past year. meantime the foreclosure rate continues to jump as well. in the second quarter, more than four percent of all loans were in foreclosure led by california, florida, arizona and neveda. those four states alone accounted for almost half of all new foreclosures. the

mortgage bankers association thinks the different loan modification programs are helping limit the growth of foreclosures but one challenge is many foreclosures involve vacant homes, fraudlent mortgage loans or unemployed homeowners. as more and more homeowners fall behind on their mortgages, many of those going delinquent were thought to be low risk borrowers. behind the increase in the second quarter were prime borrowers going bad on their loans. in fact, the share of subprime borrowers going bad has actually been dropping since late last year while more prime borrowers are not paying their mortgages on time. in the second quarter, more than half of the loans that were delinquent or in foreclosure were prime loans. the share of subprime loans in the same position has dropped to a third. the rest are federal housing administration and veterans administration loans. in the past year, the share of

prime loans going bad has increased as the share blamed on rising joblessness and the sour new job market. as we continue our coverage on health care cooperatives... today we bring to light the history of that concept.. and it turns out there are more failures of health insurance cooperatives.. than there are success stories. today.. there are two health co-ops that are still going strong... one in washington state.. with close to 600,000 members.. and one in southern wisconsin which has 62,000 members.. but history also points to difficult times for other health coops which have failed: including california's pacific health advantage - the florida community health purchasing alliance and the texas insurance purchasing alliance problem with coops.. some failed.. not able to negotiate with providers to the same degree insurance companies could. "...did not obtain premium reductions..." "insufficient leverage" "could not produce administrative savings" in fact a 2000 goverment report

from the general accounting office found that the cooperatives they reviewed did not result in premium reductions... because they could not get enough leverage.. and they could not produce administrative savings. experts say those health coops failed.. because they paid out more in claims than the premiums they took in. unfortunately what remains in the end.. riskiest patients.. healthiest ones.. go to competition for better price... that's the end of that coop or association mike wojcik.. and expert on the insurance industry says there are a number of actions the government can take today... that will achieve cost savings within the current system we have today. things like tort reform.. malpractice.. every doctor.. that they have to run tests.. to preotect .. waste of money hundreds of millions wasted there medicare fraud prevention.. 60

billion wasted each year on that experts say a health insurance cooperative would need at least a half million members.. to have the muscle to negotiate better prices ... and compete against companies like blue cross... cigna.. and humana which have much bigger market share. and on our website - at firstbusiness x dot com - hear an extended interview with the executive director of a health care cooperative and tomorrow on first business, we will profile a bookstore in president obama's backyard which operates under the co-op structure. online at firstbusiness x dot com hear an extended interview with an expert on and a member of a working health care co-op. and tomorrow on first business, we will profile a bookstore in president obama's backyard which operates under the co-op structure. crew about the selling pressure we saw on monday. three days here we are again the s&p 500 back over at 1000 lincoln ellis of the lynn group would you make of the rally here again in the last three sessions. it's interesting monday was the first time we saw volume picked up and it was really significant value when a relative basis for the month of august. in the

selling pressure. the moment we saw this 990 level on tuesday it was as if there was a jack and a box let out the we drifted higher ever since one lower volume. lower volume may be the case but for those who were still making money the dollar is a dollar at this point and it is the holidays after all. it is the holidays and i think a lot of people went home at the end of july in one home short and the day traders who have met and initialed by yes toward combining our play the market and has a tendency to push these numbers higher. your outlook hasn't changed at all with this market activity we know you had you on the with the beginning of the money you're still looking for the malibu, top? it is very toppy from a technical basis on a daily torque and on a weekly charts beings are starting to begin to look as though they're rolling

over in the fundamentals are really starting to call into question whether or not this is sustainable well with end of your earnings trading around 19 to 2010 forecast well above $20 that's a very robust the recovery in of the state in the case and i think i don't see it. not to many people are calling for that instead of looking for stabilization at best we have lincoln ellis he's with us over at the cme group. still to come big bucks, big risks...and the big screen. an independent movie distributor looks to stay afloat with a big release this weekend. but first....paying for college...tips for struggling parents and kids hit by the recession..what they can do to help ease the burden of tuition.

as a new school year is about to begin, how about this math lesson: for every $100 you borrow from uncle sam to pay for college, it will cost you about $6 bucks. with college tuition continuing to rise, odds are better than half of new college graduates next spring will leave school owing money. farnoosh torabi wrote "you're so money" and hosts "bank of mom and dad" on soapnet this fall.

as the new school year is about to begin how about this math lesson for everyone hundred dollars he borrowed to pay for college it will cost you about six bucks for college school tuition rising. new college graduates will leave school calling money thousands of dollars and i'll use she wrote you're so money and the upcoming host of bank of mom and dad you see it this fall on soap and it is nice to speak with you let's talk about pain for many years are relatively low how about the climate for student loans? student loans are definitely still in the picture but i think that what it buys parents and students to cast a wide net when finding financial aid. they go to find the student loans from the banks also they look for the federal loans and look for scholarships bread still look for part-time jobs because what i'm finding right now is that is not just finding the actual money to go to college making sure that whatever your spending is adhering to your budget so if your dream school is in within your means some students are going to a community college first and transferring those credits to a more desire to school the following year or they're working part time and they're

going to school part-time they're finding a balance to may take longer to welterweight but again this is a hearing better to their budget. finding the money is one challenge spinning inappropriately is the next tower to a list of these college money data that we dug up federal government loan activity is up 6 percent private loans have fallen an activity in addition to that the assets of 529 plans those college savings plan is also dropping so it appears more and more people have to go to local sent to get this money. i think it does with the obama administration is trying hard to operate provide better aid to students and home owners they're trying to please everybody right now and it's a slow process i think it's not going to be immediate place on the minds of legislators and the is on the minds of parents and students i'll tell you what this summer i went to a lot of college campuses bank of america and i

have partnered up and were talking to kids about how their of fordham college and we talked a lot here about finding a loan find a way but the common denominator among students that i interviewed who seem to really get it are necessarily students who are getting full scholarships but they're finding it way to circumvent the debt trap because they're talking to mom and dad about money. mom and dad make money does on ago went to college and you can actually find the video clips that bankamerica o t r you see firsthand how students are actually saving and the kinds of conversations they're having with moms and dads. year to date is done about $11 billion in consumer loans part of that is money that is directed toward students in college loans for the market was bankamerica activity the talk about spending the money once we get the money from banks and public lenders and private lenders the fact of the matter raised you

have to stretch those dollars so and college. one of the biggest missed is that he can save a college frankly yes you cannot negotiate tuition and room and board and but there's a lot of room to save in this to your benefit to know about these tips and tools i have a time because there are a lot of them for example to save on books which can add to the thousands if you're not careful every semester students are reading books as opposed to buying books there's a web site called which is highly popular with renting bulls were they here say you can save up to 40% on textbooks do is tell me they are photocopying the pages out of a textbook and just using that as opposed to buy the books for they're going give it as a broker and buy one textbooks what about the photocopy and upholstery want to hear that along with copyright infringement if they will lower prices maybe that wouldn't

happen. that's just the reality right now. she holds bank of mom and dad. online items car dealerships across the country are still waiting for hundreds of thousands of dollars from the government's cash for clunkers program. ....on our website a look at how some businesses are dealing with the hold up. plus...is the hefty price tag of some big name colleges really worth it... when you're trying to get a job in this market. and...our coverage on healthcare co-ops continues online find out more about what they are and whether they could help change america's healthcare system for the better....you can catch these stories and more on our website at firstbusinessx.com. and straight ahead on the show.... a struggling independent film company hopes to deliver this weekend at the box office...but is the movie really worth all the hype....we'll find out after the break.

big moviemaking takes big moneyand big risks. in this era of risk reduction for investors, one movie this weekend highlights the just what's at risk for moviegoers and investors. david sikich is back with us. reports watching the movies and more important than the movie industry nice to see you. gloria's bastard from quentin tarantino will talk about that in a moment is the company behind a movie just a few years ago the company was launched with big bucks behind it. from all indications they're in trouble because they hired a consultant to have mounting debt to restructure and was only four years ago when goldman sacks came and arrange

this equity and financing up to $1 billion for the white scenes this was when hitch for months were into the movie business in 2005 money on wall street and they have a track worker for investors to come and and learned but it's been downhill every sense because for a number of reasons some self-imposed and other because of the recession and the fact that the independent film business has gone down but they went and tried to spend a lot of money on non film assets like social network insights and cable company and find a fashion company took his eye off the ball and the core movie business and marketing and distribution and there has been a lot more bombs than success and looking at their movies is not too impressive. this took a look there are just three of them right there not even one of these topping $100 million

burning to a lot of cash and just peace for years been a lot of money marketing and glorious bastard a lot riding on it. they have really been burning through a lot of money and the fact is they have had very few that have very few releases this year only for a have all been a limited releases they're sitting on a lot of movies of those movies for what they are worth the marketing dollars. that's the problem they haven't they've had less than half of a market share this year and investors just can't be too happy about the performance. talking about change with to write releases in the last couple of years this week with bend quarries pastors and halloween. does it make or break time for them but they actually had time to sell off half the $7 million in korea's best to raise the $30 million marketing for that. trying to bet big to win big in my riding the next two weeks

quentin tarantino heating up in glorious backers brad pitt starring in what the title? i can see it every since the misspelling it's based on 1978 an italian war film that no one ever saw the accent of pets and the whole policy of being nazi scalps and all that i can see this as a game changer for tarantino or a sustained success here in the theme guess and the following week would have another wide release halloween and they're big on these two movies that's 100% owned but they're also going up against another horrible the final destination which is in breach the it doesn't make any sense that's bad distribution strategy he used to be a great marketer but i think he has lost his touch fair to. meantime talk about marketing last week it was proved that the marketing spend wisely can bring in the

books district 9 get wisely and dance cameron in a christmas movie it was done with this part nine #one lou talk about a marketing last with $37 million in this week there's a very unusual to sneak preview combination of 20 century fox in imax screens taking this to within a $40 million christmas movie james cameron movie and showing it on 100 imax screens this week and 60 minutes of footage the tickets were free and it went on the web site and craft a website and sold out they have to be certain that this 16 minutes is going to while audiences because it can start a bad word of mouth and greg foster the president of imax said interested in the one knows the true meaning of what show business remains too can have a business without showmanship and this is showmanship and will be when it comes down to is hey if you have the goods if you know you have the good to go out and shot it to the world. especially if

you have a quarter of a billion dollars riding on which is with this new avatar film lot coming up of course in the weeks ahead david sikich a back with us. coming up in chart talk the stock markets are closed to the yearly highs will take a look at the spiders coming up.

it seems like the bulls just refuse to die they don't want to back down and we have the s&p 500 above the 1000 mark barely and that means the spiders are from $100,000 a share and

lincoln ellis put it right when he said he thought this rally was rolling over on this so we put on the tour with the spiders it looks like it. topping out just $100 a share i don't think you're in big trouble obtaining the trend of to get below 95 or so. take a look at this maybe six months chart for the spiders and you can see this tremendous rally since march and it's really hard to say where the support line is because every time the market make one hi it went back and made another high a couple of weeks later in his heart to see where those solid support resistance its lines are. similar to the situation we were and back in early june when we saw the market selling off off the most recent top and finally found buyers and was off to races again in july. again the volume were talking about is very low compared to several months ago and the bulls keep hanging on. the lesson which the of the market ahead of labor

day at first business x. c o m we'll see you next time everybody. perhaps

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