so in reading the tea leaves about what the fed could do bloomberg compared july rhetoric from ben bernanke himself to february rhetoric in part to deduce the fed could cut the interest it pays banks for excess reserves take a listen. and a possibility that we have discussed in the past is cutting their interest rate we period it's just reserves there's a range of things that we could do. each one of them has costs and benefits and that's an important part of the calculation. now we don't lot of the money the fed has tried to pump into the economy has wound up right back at the fed so what would getting rid of that interest paid really do here to focus on all of this and what the fed's actions mean for the lives of average people is mike maloney founder of gold silver dot com and author of a guide to investing in gold and silver which is part of the rich dad poor dad series a very popular series there and always a very popular guest on capital account so first of all mike maloney welcome back to the show thank you so much for being on today from what looks like beautiful los angeles thanks

chuck schumer telling ben bernanke to get to work. t know with a chuck schumer is expecting ben bernanke to do? ben bernanke has his pedal to the metal and there's monetary creation and stimulus and i wish chuck schumer would tell the fellow democrats who tell the senate not to let us go off the fiscal cliff. tax-geddon. the ball is in their quart. i don't know there's a lot that bernanke can do. there's a lot that schumer and friends can do. >> congress has 21 days of work before the november election, by the way, give me that gig. 21 days and this guy is looking at bernanke and saying, speed it up. you've got to be kidding me. >> i think, neil, in their little world, as you can see from bernanke's smile, reaction, that was a little pat on the back and saying, i wish we were all doing better here. forget-- >> and come on, adam, i love you dearly. you know the smile on ben bernanke's face, i can't believe what an ass you are. (laughter) >> that's what the smile was. >> exactly right. exactly right. >> you know, it was like, here is the

. >>> "outfront" next, fed chair ben bernanke made two things clear today. e economy is in bad shape, but he is not going to throw more money at the problem. yet. >>> america can america get off its addiction to ben. >>> and mitt romney standing his ground refuse to go release more taxes, calls reach a deafening pitch. today he gave another reason why he shouldn't have to. >>> and an exclusive investigation into the risks of off-shore drilling. we went outfront to the arctic. shell has a plan to prevent the disaster like the one that happened to bp and the deepwater horizon. does it add up? let's go "outfront." ♪ >>> "outfront" tonight, ben bernanke says no to the addicts. addicts that are desperate for another hit of the fed's drugs. today in hearings on capitol hill, america's top banker, the chief of the federal reserve, got more negative on the state of the u.s. economy. >> given that growth is projected to be not much above the rate needed to absorb new entrance into the labor force, the reduction in the unemployment rate seems likely to be frustratingly

federal reserve chairman ben bernanke is worried. and, so too are some economists. >> in my mind, just given the fact that we're more likely that not in a low trend growth rate world and periods of unevenness such as now, the odds of recession at any point in time could be as high 1 in 3. so, i think those are reasonable estimates. >> reporter: but, there are also reasonable positives: little nuggets that support the belief the economy will gain momentum in the second half of this year. those tidbits are pretty large, including a stabilization in housing, and surging car sales. don't forget lower prices at the pump. a gallon of gas is $.47 cheaper today than in april. and, finally there's at least some faith in how much corporate america will earn in the final quarter of this year. >> the quarter that you want to focus on is the fourth quarter, because if you look at expectations for q3, the growth rate, as of today, is only about 1%. so, again, expected to be a weak quarter. if we look ahead to the fourth quarter, analysts are expec

ben bernanke's testimony yesterday failed to send a clear message to markets. bank chief left the door open for more quantitative easing but stopped short of a specific road map. >> one of britain's best known hedge fund managers is taking a long bet on the u.s. economy, warned bad things lie ahead for global markets. hugh hendry told "the financial times" -- nice picture of hugh. >> arms crossed. >> he told them financial markets are single digit years away. that could be anything from one to nine. from a 1930 style crash that will present investors with opportunity of a lifetime. east more worried about u.s. investors. single digit away, but u.s. is a better house. >> and also trying to fight this perception that he's only a c contrarian. >> hugh was a very regular guest with us until his new chairman on board and said, you have to stop doing tv. >> so he piped down a little bit. he just came out with an investment letter and now this interview, so maybe we can get him back. >> he might join us. >> joining us now for more is brian railing, chief income strate

so ben bernanke knows the bad side of his drugs. he could have done what everybody wanted today and launched another qe. qe-4. but he had the guts to say, sure, the economy is slowing more than i thought. that does not mean i will go print another hundreds of billions of dollars of money. "outfront" tonight, steven moore from the wall street journal editorial board and christian weller from the center for american progress. what do you think, steven moore? did he do the right thing by holding out and saying, look, i'm just not going to do it yet, even though you have people like chuck schumer, you know, i've got to give him credit, throwing in the towel and saying, look, we're not going to do it, buddy. it's you or nobody. >> you used the right term, gutsy. i thought this was a gutsy speech by the fed chairman, ben bernanke. the members of congress, you were right, they were like crack cocaine addicts, begging ben bernanke for just one more fix. and he said no to that. and i thought that was an important point in that speech. he was

ben bernanke says the economy continues to grow but slowly. he said unemployment likely will remain above 7% for the next 2 years. >> over all level of confidence remains low. >> ben bernanke says officials do not see a double dip recession. >>> defense secretary leon panetta said syria's tug of war is spinning out of control. it comes after a bombing that killed three top officials. the administration slapped sanctions on members of the government and leon panetta called for international pressure for him to step down. >> the international community, working with other countries that have concerns in that area have to bring maximum pressure on him to do what is right to step down and allow for the peaceful tranksition -- transition. >>> we are live in antioch with a war vet receives the keys to his dream house, mortgage free. coming up. >> gray skies around the bay area. steve will tell us if a warm up is on the way and cash is coming to a bay area airport tohelp with -- to help with runway improvements. >>> an injured iraq war veteran is in

the fed and ben bernanke talked twice how lending conditions are so tight. everybody lending conditions are so tight because long term interest rates are so low, it doesn't pay somebody to loan money at these rates n. the problem is the federal reserve is trying to use a medicine that doesn't work. they may get some relief. it wouldn't help. >> david, bunker go. i tweeted out this morning. -- bingo. ben bernanke could have written out anything but it doesn't matter fingerspell the fiscal cliff is not fisk, it would dominate anything the fed could do. congress the fed is powerless if congress doesn't fix this? >> congress will fix this. it's an estimate of braveness. no congress person wants to go back to their district after the first paycheck in january as the paycheck sits in tatters after the tax increases. we will get past the fiscal cliff. this is where i do agree with bernanke. we need a path laid out, what the debt to gdp ratio is in 2014 and 2015. spending cuts, tax increases. if they can agree with a path on the deficit, that would help with the pro

will ben bernanke signal a new round of easing?k, right after this. >>> and later we have some breaking economic news, we'll get to the latest read on inflation with the june consumer price index. "squawk" will be back with reaction to goldman numbers right after this. i'm freaking out man. why? i thought jill was your soul mate. no, no it's her dad. the general's your soul mate? dude what? no, no, no. he's, he's on my back about providing for his little girl. hey don't worry. e-trade's got a killer investing dashboard. everything is on one page, your investments, quotes, research... it's like the buffet last night. whatever helps you understand man. i'm watching you. oh yeah? well i'm watching you, watching him. [ male announcer ] try the e-trade 360 investing dashboard. >>> coke earnings immediately the stock is benefiting, so that as a dow component that would you figure help the dow futures immediately but the company reported $1. 22 nongaap compared to $1.19 estimated. the metrix that people use for coke are volume, case volum

so ben bernanke was back on the hill today in his second day of testimony before members of congress this was technically bernanke he's semi annual report to congress but the chairman's regular appearances before the sputtering organs of democracy have become a bit painful to watch because there have been many and they appear to be rather ceremonial at best the chairman certainly doesn't seem to want to be there and many of the congressmen it seems and women see it as a great way to perhaps get on the evening cable news with some kind of catchy soundbite that appeals to their constituents sense of outrage directed at wall street or at the fed or whatever however he has slowly started to change his tune over the course of recent appearances it seems as if this a man who claimed with incredible hubris i might add that the fed could drop money from helicopters if necessary in order to reliquefy and reignite the economy is now openly stating that there are actually limits to what monetary policy can achieve in fact he actually said that too much q we via treasury and agency security purch

reserve chief ben bernanke speaking about the economy on capitol hill.f wall street's top strategists will join me telling us how their view. ll beyond investment advice and research analysis. it includes proprietary offerings like our eldercare program, which helps provide for those who came before you. and our financial empowerment program, which helps prepare those who come next. resources like these have made us the number-one trust company. that's why generations of families have come to us to help build their own legacies. >>> welcome back. breaking news during the show tonight. google executive marissa meyer has been named the new ceo of yahoo. starts tomorrow. >> she's just tweeted out i'm incredibly excited to start my new role at yahoo tomorrow. i have to tell you, i don't know what the yahoo board was thinking. you know, as i tweeted out myself, i said, this is a wonderful opportunity for her but this is also a remarkable challenge for someone that has no real leadership experience. and this is something kind of interesting because yahoo tried

ben bernanke told congress today the u.s. economy is weak and the federal reserve is ready to take action to change that. but speaking to the senate banking committee, the fed chairman didn't give any clues on when policymakers would do something. darren gersh reports. >> reporter: here's ben bernanke's take on the economy: progress on unemployment-- frustratingly slow. consumer spending, business investment and manufacturing-- all slowing. but the slowdown isn't deep enough yet to convince the fed to apply more monetary medicine. >> we haven't really come to a specific choice at this int, but we are looking for ways to address the weakness in the economy should more action be needed to promote a sustained recovery in the labor market. >> reporter: but the fed is clearly ready to do more. inflation is low, up just 1.7% over the last 12 months. that's drifting to the bottom of the fed's comfort zone. >> there is a modest risk, not a large risk, but a modest risk of going in the other direction which is towards deflationary sid

ben bernanke's blues, earnings clues and the market. where should you put your money now. >>> yahoo! ends a search for a ceo again. and how the search could impact women in the work place. >>> and centr park, the economic impact and why it is important toto her cities. "the wall street journal report" begins right now. >>> is iss america's number one financial news program, "the wall street journal report." now, maria bartiromo. >>> here is a lookt what is making news as we head into a new week on wall street, federal reserve chairman ben bernanke was anything but jolly when he testified before congress, offering a down beat view of the economy. he says it was time for congress to enact fiscal policy. he didn't rule out anymore moves by the fed, but didn't promise any either. the fed's earnings in general, better than expected. by thuday, stocks had a three-day winning streak, but then fell by friday. >>> and ge,he world's largest company, beating expectations by some 3.1 million in the quarter. it passed analyst's predictions as bank o

let's go straight to ben bernanke. >> in 2006. ernanke was chairman of the counsel of economic advisers and served as a member of the board of governors of the federal reserve system. chairman bernanke, please begin your testimony. >> thank you. chairman johnson, senator crea pau and other members of the committee, i'm pleased to present the federal reserve's semiannual monetary policy report to the congress. i'll begin with the discussion of current economic conditions and the outlook before turning to monetary policy. the u.s. economy has continued to recover, but economic activity appears to have decelerated during the first half of this year. after rising at an annual rate of 2.5% in the second half of 2011, real gdp increased at a 2% rate in the first quarter of 2012 and available indicators point to a still smaller gain in the second quarter. conditions in the labor market improved during the latter part of 2011 and early this year. with the unemployment rate falling about a percentage point over this period. however, after r

. >>> ben bernanke told congress the fed is not going to single out the fiscal cliff. the fed head gave no clear hint of more stimulus. investors continue to hope that the fed will add more stimulus later this month. that drove up shares. the dow closed up 78 points. my feds easing indicator, you ever ho, which is gold. it dropped 10 pucks. it tells me, boys and girls, don't get so excited about stimulus. obama and mitt romney campaigning in battle ground states. tons of money being spent on tv campaign ads flooding the market. president obama insulting business. mitt romney fires back. >> i'm convinced he wants americans to be ashamed of success. >> this comes as john sinunu makes headlines for this call, quote, i wish this president would learn how to be an american. my special guest this evening to expand on his remarks. but first up, let's turn to bernanke's testimony on capitol hill. take a listen to this. >> we've got what i call in spite of recovery. this is a recovery in spite of what obama has done. >> but only a part of this loss of momentum in job creation.

ben bernanke said in two day on capitol hill with regards to the unemployment situation, unemployment is largely cyclical but a risk the problem could be structural, as well. >> there's fear of retail sales lately. i was going through the summary of the beige book. retail sales increased slightly in all districts except boston and cleveland and new york and sales softened but car sales which we have talked about a lot, car sales higher in almost all the 12 fed districts. not a negative. maybe slightly positive beige book. >> auto sales is a bright spot and housing increasingly, as well. having a look at the data of today. meantime, what's happening with the markets. heerl's something that you haven't seen too often lately. a two-day winning streak for the dow f. the gains hold up, it's the dow's first two-day streak of july where the dow and s&p positive for july. despite having more down days than up days this month and the s&p could be on track for its highest close since early may. as for the nasdaq, gone positive for the month of july with today's rally. let's hope it all holds. l

ben bernanke answers some tough questions to congress today. we have more in the bloomberg business report. >> good morning. job growth is one item that ben bernanke will most likely be asked about today. he will deliver his semi-annual report on the economy. a program designed to lower borrowing costs to boost the economy. he speaks before the house financial services committee tomorrow. gap is looking to compete with lululemon. gap opens their own store in nearby when lululemon opens a store. lululemon it generated $1 billion in sales last year. it was a down day for the markets yesterday. we had a disappointing report on june retail sales. the bloomberg maryland index falling on losses for jos. a. bank that we saw yesterday. hyatt hotels has a menu for kids by kids. it will soon offer a healthy three-course meal for children. the dinner includes natural grilled beef served with potatoes and vegetables. it served 3 million kids annually at its hotels and resorts. that is business news. reporting for wbal-tv 11 news. back to. you. >> 6:21. the

ben bernanke is back on capitol hill this morning. ut the ongoing weakness in the u.s. economy in his senate appearance yesterday. steve leisman we'll have more in a moment. also, we get fresh numbers from the u.s. housing market later this morning. economists think that june housing starts register an increase. there's a decline in may, and that number is ut 8:30 eastern time. >> as becky said, fed chairman ben bernankac interview, steve. walk us through mr. bernanke's thoughts. >> there was a lot of mixed reaction to the chairman's comments. he's more downbeat on the economy and his failure to specify when the fed would act. the chairman sees q2 below 2% and projected growth that won't put people back to work. i thought it was significant he didn't say outright he believes the economy will continue on a moderate pace of growth. he quoted the question as saying it back in june. >> we are looking very carefully at the economy trying to judge whether or not the loss of momentum we've seen recently is enduring and whether or not the econ

the s&p is up 9. >>> investors had an initially negative reaction from from testimony ben bernanke. he delivered his semi-annual report before the san mateo banking committee. he said the country's economic recovery is being held back by anxiety over the european debt crisis as well as the path of u.s. fiscal policy. >> the physical dal cliff, a shallowy session would occur, and 1.4 million fewer jobs would be created -- he -- the fiscal difficult, a shallowy session would occur, and 1.4 million fewers job would be created -- >>> the fbi has owned a criminal attack on an investigation where sewing needles were found on board sandwiches on several flights from amsterdam to the u.s. one passenger was hurt. the airline says flight attendants stop serving the sandwiches after the needles were discovered. no other airlines have reported similar problems. >>> martian lynch is in trouble with the law. he -- marshawn lynch is in trouble with the law again. he was arrested for a dui. he was in oakland last week to award a color -- scholarship. he's coming off the best year of his career. he'

. >> the key event is ben bernanke delivering central bank semi annual report to congress. he can expect the grilling of a prospect of quantitative easing. and how well the u.s. is coping or not with the slow down in europe. tim, we just saw this sense going into this again, dollar is a little bit weaker, risk asset a bit firmer. any chance he may react to the weaker data with a hint of doing something? what's your own view? >> his job is to try and give a sense of sentiment improvement and confidence to the markets. and my interpretation would be that he's going to reiterate what the fed said in minutes. he's going to outline what the fed could do if conditions deteriorate but hold off saying they are anywhere close to that. they just extended operation twist. granted data has been weak. but there's no reason to take the next leap to further quantitative easing at the moment. tell us about what they might do, give us some clarity on what they are looking for, great, but i don't really see that this is an opportunity for them to say we're on the verge of throwing more liqui

let's run the clip of ben bernanke. >> the information the fed received was about the banks possibly submitting low rates in order to avoid appearing weak during the period of the crisis. the transcripts of the phone calls that were released have no reference to the manipulation of rates for profits by derivative traders, as alleged by the recent decision. >> well, now, consider. he used the word "possible." let's look at e-mails released friday and in the journal today and let's talk to the exact quote we're referencing in mr. bernanke's talk. i will read this. barclay's unnamed official. so we are not posting an honest libor. the fed official here, okay, bark lis, and yet -- and yet we are doing it, because if we don't do it, it drawings in, um, unwarranted attention on ourselves. rosolo. okay. i got you then. the fed officials doesn't possibly understand it's being manipulated. it's being manipulated lower. there is knowledge there. if it's manipulated low, the fed's program to manipulate rates low, we go along with it. if i remember, the last time i was speeding to visit a relati

by the large disparity between -- >> q and a between the house financial services committee and ben bernanken what will be ron paul's last chance to cross the chairman as he is retiring. bernanke warning, of course, against auditing the fed further than what the gao already does. he says he has a collection of op eds from 2008-2009 warning about hyperinflation and the dollar collapse. took some joy in mentioning that as well. want to send it back other to cnbc. institutional investors delivering alpha conference where david faber is standing by. >> we are, in fact, back here on what's called the floor. our own floor here. having a litle break behind us. hence, it is quite loud. our own kate kelly has been running around, tracking down panelists. sometimes hallway chatter at these events can be quite informative, kate. i know you were listening closely to a number of the panelists on becky's panel and caught up with a number of of them afterwards. >> i agree. hallway stuff can be the very best stuff. ripping off of the best ideas panel, a couple of fascinating things came up. i was able to ge

hallie jackson has the report. >> ben bernanke predicts the recovery will be slow going.e speaks with members of the house today. wall street ended the day on a good note after a dip when ben bernanke testified in front of the senate banking committee. he painted a fairly grim picture of the economy which is growing but slowly. people are not spending as much. inflation is not bad but food costs are spiking. >> the fiscal cliff is allowed to happen, it will have major negative effects on the recovery. >> we could see higher taxes and if congress does not find common ground on a budget. that could trigger a recession. burnett said it is their job to prevent that the >> congress is in charge, not the federal reserve. >> is senator charles schumer pushing to do something soon. >> i am afraid the fed is the only game in town. i would urge you to take whatever actions you think would be most effective in promoting a stronger economic recovery. so get to work, mr. chairman. >> the next meeting begins on july 31. hallie jackson, wbal-tv 11 news. >> 79 degrees on tv hill. most de

ben bernanke pretty much saying to congress, it is your responsibility. >> yes. a lot of people are asking why the fed is not doing more to help the economy and their response is that our tools are already stretched. there is a combination of tax increases and spending cuts that will kick in automatically at the end of the year. >> a lot of people are talking about the fiscal cliff. what impact will this have on the u.s. economy? spending cuts kick in automatically. >> if you add up all of the dollar amounts, it comes to roughly 5% of gdp. that would result in a recession. >> growth is so slow at the moment. we have some decent news, new housing starts were up and there was some growth in may and june. is it as gloomy as we thought? >> unfortunately, it is as gloomy as we thought. housing is growing but even growth of there is not make a difference to the broader economy. . it is growing at half the rate that you would expect. the problems with the fiscal cliff is that as businesses anticipate the possibility that that recession will happen, they're cutting back

the markets again paying very close athengs to ben bernanke and different narrative today in the golded mostly unchanged. bernanke did not give anymore clues as to possible monetary easing. gold selling off. no need for gold as an inflation either. if you look at gold over three months, we traded in about $150 range waiting for more direction on u.s. fiscal policy and something bernanke would like to see. silver selling off. one differencemaker today, copper. a bit heer after the u.s. housing data this morning and still things did tend to end up a little bit. copper up about a percent. back to you. >> thank you very much for that. let's check in with rick in chicago. and see what's catching his eye with now 2 1/2 hours to trade. rick? >> well, you know, i guess a two-day chart of the benchmark ten-year paints the picture. you know, yesterday yields crept up with the stock market after ben bernanke's initial shock with both markets going the other way and today stocks continue up as evident by the second chart and fixed income markets firm in terms of price hovering well below 150 in t

were very much looking forward to ben bernanke was a statement in washington in front of u.s. senators. they were hoping for some sign that the fed would become active sometime soon in order to provide stimulus for the ailing u.s. economy and also eight other economies to good, but bernanke disappointed. he remained quite bay, said the fed was ready to act if necessary but offered no time frame for that and no precise conditions for when the fed might act. so the share prices in the aftermath -- quite hectic, but there was a positive sign from spain. the troubled country was able to get financing here in the capital markets at better interest rates than the last time, so people saw that as a sign that things were a little bit more relaxed. >> let's take a closer look at some of the latest market numbers. the dax closed just a bit up. euro sto 50xx -- stoxx 50 just a bit down. the euro is trading at $1.2279. general motors' troubled european unit opel has a temporary new boss, the third change at the top in three years at opel, which continues to lose money. >> gm is looking fo

reserve chairman ben bernanke was anything but jolly when he testified before congress, offering a down beat view of the economy. he says it was time for congress to enact fiscal policy. he didn't rule out anymore moves by the fed, but didn't promise any either. the fed's earnings in general, better thanexpected. by thursday, stocks had a three-day winning streak, but then fell by friday. >>> and ge, the world's largest company, beating expectations by some 3.1 million in the quarter. it passed analyst's predictions as bank of america and morgan stanley fell short. >>> and raising expectations, ebay, google, microsoft beat expectations, although microsoft did post its first ever loss. revenue a bit light as well. >>> and mixed housing results, driven by a jump in single family homes, rising by nearly 7%, existing homes falling more than 5%, although prices were higher. analysts say that prices rose because there were fewer disstressed sales. >>> and looking past europe and the fiscal cliff to earning season, in full gear right now. which is more important? and how do you invest in this

congress will hear from fed chairman ben bernanke on the nation's bottom line. the numbers show retail sales down for the third straight month and hiring is sluggish. democrats and republicans accuse each other for slowing the recovery. >> mitt romney supporters blame the president and the president is blaming congress. >> the problem is we've got a stalemate in washington. >> terrible jobs report. we've had continued bad news, on manufacturing, we're looking at the weakest economic recovery since the great depression. >> a million dollar fund-raiser romney blasted the president for helping big money donors while ignoring the middle class. >> testimony from the fed chairman could set the tone for wall street. >> a lot of eyes watching that. for a check of the markets we turn it over to bertha coombs live at cnbc world headquarters. good morning. >> good morning guys. we've got the futures pointing towards a bounce back this morning, after setting a bit of a record, the dow is now ended in the red for the past seven mondays. the monday slump this summer. markets

but fed chairman ben bernanke seems unsure which way to bet on the economy right now. bernanke told congress today the financial crisis in europe is slowing the economy here. >> moreover, the possibility that the situation in europe will worsen further remains a significant risk to the outlook. >> reporter: repeatedly, bernanke has appealed to capitol hill for help in giving the economy a shot in the arm, but new york senator chuck schumer told him point blank today to forget it. >> given the political realities mr. chairman, particularly in this election year, i'm afraid the fed is the only game in town. and i would urge you to take whatever actions you think would be most helpful in supporting a stronger economic recovery. >> reporter: doubts about the economy's direction are holding employers back says scott schermerhorn of granite investment advisors. >> there's still uncertainty. whether it's political uncertainty, whether it's regulatory uncertainty, there's a lot of uncertainty out there and i would argue business c.e.o.s are very reluctant to start hiring in a b

ben bernanke made the bor system is structurally reforms to the ls discovered the rate rigging schemected ways to libor. out that the fed is ready to take further act and over in the u.s. leading u.s.hole business yearintel net profit was down 4.3% to about and that ue largelychw, looking ahead, intel says sales growth for the entire year will likely be limited to 3% to 5% and that is changing demand among end users, intel has built a new plant to make thin a check on the on tuesday. are reacting. we're going to go toramin mellegard for that at the tokyo before seeing over there this bernanke's comment annoearnings. had earnings frdata industrialexpecting. also a house ent, so helped translating into the topi levs are pretty percentikkei ended just a touch higher yesterday but rea exporters weighing on lit lg above market expect brokerages here. however, on. profits for stocks as well. the dollar again, testimony to 79.02-03. it was trading around 78 yesterday. the upper 96 yen levels yesterday. just a touch weaker against the dollar and the ngs and economicght? >> yes definitely. as far

economy are expected as ben bernanke returns to capitol this morning. alison burns is in our washington, d.c. newsroom with why bernanke says the u.s. could enter another recession next year. alison. >> reporter: ben bernanke begins his second round of testimony in a little less than an hour. he's warning congress must act to deal with those tax increases and steep automatic budget cuts that kick in in january or he says the u.s. will face another recession. >> congress is in charge here not the federal reserve. >> how many jobs he says will be lost next year if congress doesn't act. during my next update in about an hour. reporting live from washington, d.c. alison burns ktvu channel 2 news. >>> time now 6:15. a small plane was carrying a very bold message about penn state university. it flew over the campus yesterday. there it is. the banner that read take the statue down or we will. it's a reference to that statue there opinion the statue of former head football coach joe paterno. a report released showed that joe paterno helped to cover up child sex