according to reports, gm stock would have to rise above 53 dollars a share for the u.s. to break even and consider the bailout a success. we'll take a more in-depth look at gm's stock later in chart talk. consumer spending is the core component of our economy. high household debt has been a damper on spending, but things are looking up. usa today reports that consumer debt levels are dropping, housing is improving and the lift in the job market could boost consumer spending by 3.5% by the end of 2013. it was out-of-control debt that brought on the recession, but, apparently chastened, we're managing household cash flow a lot more wisely, and are regularly setting money aside to shrink credit card and other debt. corporations could be bracing for a drop in profit. wall street is expecting a drop in quarterly profits at american corporations. the new york times reports that this will be the first time corporate profits decline since 2009. weakness in economies such as china and europe is said to be contributing to the corporate slump. mcdonald's is hoping the mcrib will brighten the holiday

ford sales more than 12% in august and gm sales up more than 10%, despite gains, clearly problems for the american carmaker, rising inventory and potential loss of market shares. phil is live. >> i think we will see it pick up in market share. the numbers bigger than expected. let's look at august for the big three, all of these coming in slightly ahead of estimates. you see what the numbers were and the estimate, anywhere from 3 to 4% above the estimate. a couple story lines popping out looking at the showrooms last month. jpmorgan is estimating the august sales rate will come in at 14.5 million vehicles. that's above previous estimates closer to $14 million. ford says it will raise its fourth quarter production by 7% or 50,000 vehicles. one other note, volkswagen, august sales up 62.5%, the best august since 1973. let's look at some other automakers, foreign names, toyota, nissan, hyundai. that hyundai number, only up 4%, they're constrained, making as many vehicles as they can with their capacity limited in the united states. and shares of ford and gm, one more thing to keep in min

and and it is contributors come fight for the high-speed rail and the and it to his contributors and gm and chrysler. he would support of the democratic contributors with a stimulus and bankrupt the united states of america and that's exactly what's happened. the prediction was made before he put his hand of the bible. he's done everything i said he would do. it's a purposeful attempt. when we went to columbia there were two professors that left when he got there. the only to the country that talk about this nei and glen bike and i said from the beginning he had a theory to destroy the country and wipe out capitalism and turned into a socialist nation you have to elect somebody willing to cut his afro or play till, put on a gorgeous tie, a kiss babies come have a smile and a beautiful family and tell everybody is not a divider and tell everyone how fear he is and how he wants to help the middle class and then overwhelm the system with a debt. explode the system and get everyone to their knees begin in the government to save them every step of the way watch it that is exactly what he's d

the government should get out but it can't quickly. >> gm could buy out the shares and it owes taxpayers we are proping up gm long enough to reelect the president. it was a bailing out the banks. coming up. new housing numbers and signs >> we are back with the stalks back. and erack? >> it is a company that sells a lot of road products. >> morgan perfectly positioned in case it is coming back. >> i like it is price to earning ratio is high for my test.

the government should get out but it can't quickly. >> gm could buy out the shares and it owes taxpayerswen. we are proping up gm long enough to reelect the president. it was a bailing out the banks. coming up. new housing numbers and signs of life. that will send two stocks through the roof. >> announcer: with nothing but his computer, an identity thief is able to use your information to open a bank account in order to make your money his money. [whoosh, clang] you need lifelock, the only identity theft protection company that now monitors bank accounts for takeover fraud. lifelock: relentlessly protecting your identity. call 1-800-lifelock or go to lifelock.com today. >> we are back with the stalks back. and erack? >> it is a company that sells a lot of road products. >> morgan perfectly positioned in case it is coming back. >> i like it is price to earning ratio is high for my test.

the government should get out but it can't quickly. >> gm could buy out the shares and it owes taxpayersn. we are proping up gm long enough to reelect the president. it was a bailing out the banks. coming up. new housing numbers and signs [ female announcer ] they can be enlightening. hey, bro. or engaging. conversations help us learn and grow. at wells fargo, we believe you can never underestimate the power of a conversation. it's this exchange of ideas that helps you move ahead with confidence. so when the conversation turns to your financial goals... turn to us. if you need anything else, let me know. [ female announcer ] wells fargo. together we'll go far. -oh, that's just my buds. -bacon. -my taste buds. -[ taste buds ] donuts. how about we try this new kind of fiber one cereal? you think you're going to slip some fiber by us? okay. ♪ fiber one is gonna make you smile. ♪ [ male announcer ] introducing new fiber one nutty clusters and almonds. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any

but to get to this point, chrysler and gm had to go through bankruptcy, had to close more than 3,000 dealerships and shed workers. 1.2 million people were in auto manufacturing a decade ago. now, there are just 790,000. while the u.s. market seems to be growing, economic problems in europe are proving to be a huge problem for the big three automakers here. gm alone lost $200 million in europe during the first half of this year. dean reynolds, cbs news, chicago. >>> general motors next earnings report is october 31st, six days before the election. analysts expect gm will show a large enough profit in north america that will more than offset the continued losses in europe. >>> in canada, a gunman opened fire at a political rally killing one person and wounding another. police captured the suspect late last night after he allegedly started shooting during a midnight victory celebration for quebec's new premier. her party believes the french-speaking provinces should separate from canada was immediately whisked off stage. she was not hurt. the gunman set a fire outside the theater before

chrysler has expanded and ford and gm have shrunk their footprint but we stabilizing. auto industry out here. of the 123,000 jobs, most of them, biggest categories are business services and healthcare. we are having specialty manufacturing rebounds but it's hard to argue in fact the bureau of labor statistics we are down net 500 jobs you can attach that to why we are up 123,000 and ohio is actually doing much better. >> one of your colleagues, speaker john boehner had something to say about the race in ohio. i want to get your reaction to it. >> one of the things that probably works against romney in ohio is the fact that governor kasich has done such a good job of fixing businesses in the state and attracting businesses in the state. our unemployment rate in ohio is lower than the national average. i think it's four points lower than the national average. as a result, people are still concerned about the competent and jobs in ohio but certainly isn't like you've seen in other states. >> patti ann: no question, is the paradox here that john kasich the republican governo

new tentative labor contract with chrysler group late yesterday following similar deals with ford and gm. >>> new research from the few center finds a record one in five u.s. households were saddled with student loan debt in 2010. that's more than double the homes with college debt in 1989. the average amount owed $26,682. >>> u.s. bank and pnc have joined the likes of jpmorgan chase, bank of america and wells fargo in reporting their websites have been hacked. a cyber watchdog agency recently increased warnings of such attacks which some are blaming on iran. >>> red lobster and olive garden parent darden restaurants along with sears are changing their approach to employee health care. both companies will soon give employees a fixed sum and allow them to choose their own medical coverage and insurer. >>> finally, one small town has really gone to the dogs. the police chief of vaughn, new mexico, resigned yesterday. the problem with that, vaughn's only certified police force member is now a drug sniffing german shepherd named mika. he's really scary. doesn't get all rowdy. coming up, the

government that rescued it, it has this stigma and the government refuses to let the stigma go and now gmshocked, shocked that white house will not let it g the same fight house that fired company executives still deciding on hiring and firing even mid level executives today, wic -- wake u, you know who you crawled in bed with. a government whose financial prowess is shakier than yours, only you could not write a financial check out of thing air but the government could and did, now it is your sorry ass on the line, and you want the government to cash out. you feel hopeless. well wake up and smell the exhaust fumes could gm, that is the -- that is the flip side of getting bailed out, you are never really free, you are always from bureaucrats bitch, sorry for the wording but that is my warning, did you think once you are getting up and running that washington would pack up and leave? did you think that politicians would not the a piece of you just to showcase you and put you on a pathetic me ped stool? parting is not sweet sorrow, thinking you could ever get out of their thumb is what is s

stocks continued to rise on friday, and gm rose 10%, chrysler, climbing 14%, compared to earthquake related supply disruptions last year. all of those companies came in ahead of expectations and the annual sales rate in the u.s. now stands at 14.5 million cars. it is an extraordinarily busy and important week from the jobs numbers to the ecb plan. but there are plenty of other things to pay attention to, as well. joining me is the chief investment strategist, russ koesterich. thank you for joining us. >>> thank you. >> 96,000 jobs created, fewer than the market expected, but the unemployment rate did fall to 8.1%. what is your take on the numbers and the economy? >> unfortunately, it was a bad report on several fronts, even the drop in the unemployment rate was negative. i'll explain why in a moment. so you're below expectations on job creation, the sharp slowdown from the rate in july. we're seeing the wages slow down. again, this is a challenge for consumer with not much wage growth and debt. and even the drop in the unemployment rate, which you refer to happened because more and more peo

and gm says cables can break off and it makes it appear the car is in park. gm says it knows of four crashes but no injury autos a former athlete has a plan to pay a hospital bill. and there is now a check on the forecast. >> this is a great day and sunny skies around. here is a view from our camera. there is beautiful blue sky was whispy clouds panning just out over the bay there is just stunning. and fall begins tomorrow, here is a look at our live dopplerler 7 hd. there are no low clouds and fog at the coast. forecast preview, clear tonight, fog late, fall arriving at 7:49 in the morning and there are warm days this weekend so will feel more summer like. there is mild and clear, low to mid 50s and cooler into north bay valleys there are lows into mid up toer 40s, there is a stream of high clouds throughout the bay area there is some counterclockwise flow to our north and that is bringing more high clouds over the area and we're going to have sunny skies and mild to warm conditions throughout the weekend. cooler sunday but still, a lovely, mild day. there ar

following similar deals with ford and gm. >>> new research from the pugh center finds a record one inive households in the u.s. were saddled with student loan debt in 010. that's more than double the number of homes with college debt in 1989. >>> the average amount owed, $26,682. >>> u.s. bank and pnc have joined the likes of j.p. morgan chase, bank of america and wells fargo in reporting the web sites have been hacked. a cyber watchdog agency increased warnings such attacks which some are blaming on eye ron. >>> red lobster and olive garden restaurants and sears are changing their approach to employee health care. both the companies will soon give employees a fixed sum and allow them to choose their own medical coverage and insurer. >>> and finally, this may make you a little nervous. this small town has gone to the dogs, literally. the police chief of vaughn, new mexico, resigned yesterday. the problem with that? vaughn's only certified police force member is a drug sniffing german shepard named nika. >>> the a's ace dominates, and the tigers play top cat. plus, how to really use yo

some are reinstated or the suspensions are overturned meaning the players why wouldn't the coaches and the gmlowed to continue on with the game or be involved? >> right. it's a different -- with the players it's a collective bargaining agreement and it was pretty obvious that commissioner goodell is not the king. he's merely the commissioner. and the three-person panel, two retired federal judges and a georgetown professor said, you know what? you can make a recommendation. that's about it. i got to tell you, fredricka. this case isn't over. because if the special master recommends to the commissioner that there is to be punishment, we don't know what's going to happen here. yeah, they're reinstated but we don't know what's going to happen ultimately. it's going to go back to the commissioner. so this case is really far from over. it's great for sunday. you got some of those players back on the field. but this case has got a long way to go before we're done with it. >> all right. not long after this decision you know player john that villma did express his emotion on twitter saying victory is

we believed in two different administrations believed also that if gm and chrysler would have gone into free fall, could have taken the industry into bankruptcy but the u.s. from a recession into a depression. so i would do it again, testify on behalf of my competitors, also very, very pleased that ford had a plan ahead of that we were support by the banks, investing during the toughest time of the great vehicles and the response we have gotten for ford not using precious taxpayer money has been phenomenal. so in hindsight, i would do it again for the good of the country. >> i know tyler has a question back there. >> yes, tyler? >> mr. mulally you welcome t is good to see u in light of what you have just been talking about, without get nothing too much politics here, we are going to hear from a "wall street journal"/nbc news poll in just a moment about the state of the country, i wonder how you compare the state of america today with the way it was four years ago, as you just were talking. are we better off economically than we were four years ago? is your business better off today than

the administration lied because they didn't follow the narrative that bin laden's dead and gm is alive. bin laden is dead, great thing, but al-qaeda is alive and well and its affiliates killing u.s. ambassador and the three americans. where is the outrage, the legitimate outrage on the part of the republicans to come out to get to the baht dome of this? i think the story is going to have legs because it gets worse every day, and we should be dodging kerry now at every move saying what are you doing as a member of the senate in order to get to the bottom of this? you signed a letter. now, mr. kerry, what are you doing about itings and the president has to be held to account at the debates. even though this is a domestic debate wednesday, romney should question him on it. lou: your thoughts? you get the last word. >> i've been in des moines, iowa there, and people there are frustrated about what's going on in washington. they believe the administration's covering this up. they don't want white wash, but want answers. president's phenomenontures could tumble if they are not forthcoming an

he was looking for a way to get out from under his thumb and gm became the vehicle for expressing his liberal vision for what a journalistic enterprise should look like. and antiracism was at the core of the position. so they hired roi ottley is one of their war correspondents and sent him off to europe. this was really kind of a singular position. there were very few publications that hired black writers, even in the copy editing departments, let alone sending them off to europe, which was considered a plus position at that time. because ottley was writing for a predominantly white newspaper, it gave him entry into certain halls of power in europe that the black press did not have. and frankly weren't really interested in. black writers covered the jim crow military. they wanted to provide their leaders with what readers wanted, which was tories about black soldiers and about what was happening in europe. it is a little bit dicey to say that there was an audience, at least in the black community, for ottley's phrase into colonial politics and the like. but this is a man who was deter

>> remember we actually testified on behalf of temporary help for gm and chrysler, we concluded, that if gm and chrysler, went into freefall, they could have taken down the industry and u.s. economy. neil: you don't think you would have survived that or toyota with plants here. >> we all would have been in real trouble. we did it, -- we could have really contributed to u.s. going from a recession. neil: that rescue of a good thing? >> it was the right thing to did at the time, but to your point, i am just so pleased that we did not access one dollar of taxpayer money, we were on a plan to create a viable ford way before that recession hit. neil: there seems to be a bigger macro picture to, that you know that is big government, about well not big government. many saying it has gone too far since, and we built a slippery slope. what do you think that that the government is too unwieldy, rescuing everyone. >> i come out of it a different way, you are referring to, i think, that business, and economic development is absolutely the foundation of this country, and in our case, and in manufa

government motors reputation wanting the government to sell off its remaining 26 and a half% stake at a loss to taxpayers. gmit is hurting the business and the ability to recruit top talent. is it time to the finely cut losses and other separate ways? should the government make sure is getting better every single penny from gm? with me now, step burgess, a senior editor at aol auto. thank you for joining us. as the star was making the rounds today, all i could think to myself, and gm ceo is doing a good job. all i could think, when you needed them, but now you want to get rid of the government image, so you what the taxpayer to test it out for a loss. too bad. >> i think they do need to get out. at think that it really hurts gm to continue to have this label and stigma of government motors. and nobody wants one quarter of their business run by the government his or own but the government. >> no, i agree with you. a think it would be better. to bad. they took the government in the first place when they needed the help. now when it's out working for them they want to say get lost at a loss, and that's your and

and man do you text. what do you think of gm wants out. ve lately. t because of business people like you, things are beginning to get rolling. and regions is here to help. making it easier with the expertise and service to keep those wheels turning. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together. neil: halftime, you are fully throttled because i was fully throttled by gm which no longer wants to be coddled. wake up, smell the exhaust fumes, you never are really free, that is flip side of bailout, you are never free, you are always some bureaucrat's bitch, you are government motors, fort eternity. >> okay it might have been extreme. the react coming in fast and futious. the text-messages came in fast. they made their bed and dealt with the devil, now they will experience truex economy hell. and because of what you said about gm, i will watch fox news again, you told the bold truth. you told th the country what wod happen, if you expect the government to always come

[video clip] >> with respect to the auto -- gm and chrysler, my recollection is that gm made some repayments, of what to say 6 million or $7 billion -- like taking money out of one pocket and paying peter with's money. could you refresh my memory? >> all to live -- part of the $49.5 billion we received equity in return. part of it was preferred shares and approximately $7 billion loan. that loan was repaid the money that came out of that park escrow account. so, the money had gone over to gm, so it goes in the possession as part of the bailout, but a segregated account of tarp funds. >> taking a deep breath as a layman, how are we supposed to understand this. in the and, what is the bill on gm? was the bailout the right thing to do? did they pay their loans? >> this is sort of an example, i think, of the government and the charge of a department taking a perfectly good story and then trying to make it look a lot better than it was for pr purposes, for political purposes. and as a result, you end up with is confused mess that ultimately seems a little misleading. what happens here is that gm

you can't say you bin laden is dead and gm is alive. people are angry at us over there. he was chairman of the house intelligence committee during the time in the senate. christian white ten was the senior state department aid during the bush administration george dew is the former navy seal and cia secret warrior. george you first. the two fellas who died at least seems like they put up a hell of a fight. how many navy seals go into a business like working with the security department. is that a common thing for this uncommon valor? >> that is pretty common. when you have that sort of specialized training and that specialized credentials behind you you are kind of sought after. the pay is very good. people go into a post navy career. that does happen frequently. but that's post navy. academic seals will be involved in offensive operations. >> congressman hoekstra you want to weigh in on why they weren't at the consulate in benghazi? this were some in the main embassy. they figured no one knew that stevens was going to be in benghazi or no one on the outside presumably k

but they will try to sell it more successful and one of the lines that bin laden is alive and gm is alive. high points that they saw . i think they will go after romney and try to counter the arguments that were made in the convention and i don't think they see romney as a personally popular person. they will be sharper in their criticism of romney than the republicans were of obama >> a quote that president obama is giving to time magazine. i want a reaction it is an interesting point of rhetoric and a point that republicans hit him on. >> so my expectation is there will be popping of the blister after the election because it would be a stark choice. where republicans refuse to cooperate on things that i know are good for the american people i will continue to look for ways to do it administratively and work around congress. it appears that the president has an attitude if i can't work with congress, i will ignore them and the constitutional balance of three equal branches was government and do it anyway. iment you to respond to that tactic of saying it is their fault and how does he mak

. >> 1914 henry ford doubled wages and to compete gm and chrysler followed suit. 30 years before theaw insisted. >> because they wanted to compete. >> we would still have the t's 30. >> she is wrong. workers' lives have them plantation proved because of free enterprise contracts helped but then they hurt even the union workers because the rules slow-growth and that is what is best for workers. henry ford doubled wages then hired more. years later they get benefits for awhile but growth slowed then stopped. compared gm with toyota it created 15,000 jobs in america. over the same period gm lost 400,000. how was that good for workers? >> union members should have a right to unionize. but the downside is the opportunities lost because union rules limit the of entrepreneurs ability to

. >> 1914 henry ford doubled wages and to compete gm and chrysler followed suit. 30 years before the uaw insisted. >> because they wanted to compete. >> we would still have the t's 30. >> she is wrong. workers' lives have them plantation proved because of free enterprise contracts helped but then they hurt even the union workers because the rules slow-growth and that is what is best for workers. henry ford doubled wages then hired more. years later they get benefits for awhile but growth slowed then stopped. compared gm with toyota it created 15,000 jobs in america. over the same period gm lost 400,000. how was that good for workers? >> union members should have a right to unionize. but the downside is the opportunities lost because union rules limit the of re

gm and chrysler did go into bankruptcy. romney said let detroit go bankrupt is false. that was a headline in the "new york times." under the headline said gm ought to be ushered through a managed bankruptcy. it is exactly what happened. >> with the government by your side. >> the difference is who drove the bankruptcy. mitt romney made the argument that he thought the private sector should drive it. he was most likely wrong. we don't know what would have happened when mitt romney failed at his attempt at private driven bankruptcy. he might have fallen back on federal guarantees. he said in that editorial and just in case you think it was misinterpreted he wrote another books another one during the michigan primary in which he more strongly said president obama should have stayed out of the automobile situation and let the companies go through the situation on their own. without the government there they would have run out of money. >> romney always suggests the federal government should be part of the bankruptcy. >> he said

and gm is reportedly saying it wants to buy shares from the u.s. government of the company. sandra: but the u.s. government doesn't want to just yet. fox business's liz macdonald has details. >> that's right, sandra. if they did it down and the president would have to say look, we're posting a loss on gm shares because taxpayers still own half a billion shares in gm they're trading now at 24 bucks. you have to be at 53 to break even. so they have been underwater. $27 billion, if they sold now we would be hit with a loss. taxpayers would be hit with a loss depending on dollar amount and size of the shares. shrug of shares anywhere from 15 stal billion in losses to $7 billion depending how much was sold. we talked with general motors. they confirm they are in talks with general motors selling at a loss. here is what general motors are saying to fox business. tarp rules hurt in attracting talent. we're capped at pay we can offer executives. that's why we want out. hard to for someone to show up to work for the good of the country. we want to get out from under it. here is what