>> kroft: betting parlors. >> dinallo: betting parlors, yeah. it was a... it was a felony.ell, it was a felony when a law came into effect, because it had brought down the market in 1907. and they said, "we're not going to let this happen again." and then 100 years later, in 2000, we rolled them all back. >> kroft: the vehicle for doing this was an obscure but critical piece of federal legislation called the commodity futures modernization act of 2000. and the bill was a big favorite of the financial industry it would eventually help destroy. it not only removed derivatives and credit default swaps from the purview of federal oversight; on page 262 of the legislation, congress preempted the states from enforcing existing gambling and bucket shop laws against wall street. it makes it sound like they knew it was illegal. >> dinallo: i would agree; they did know it was illegal, or at least prosecutable. >> kroft: in retrospect, giving wall street immunity from state gambling laws and legalizing activity that had been banned for most of the 20th century should have given lawmak

she was looking for bargains with her builder john harwood to renovate, betting she would win by betting on the housing market while it was still depressed. you're looking to put money into bricks and mortar as opposed to having it sit around in the bank right now? >> yes. >> it's putting money into like termites and bad stuff. >> her bet paid off. a testimony to the case shiller numbers out today. to date, two of the five properties she bought and rehabbed are already under contract for well over the amount she paid to buy and fix them up. >> do you want to keep doing it? >> absolutely. >> all right. so we're going to keep buying -- buying to rentals? >> the lower priced houses are absolutely on fire. >> in aurora, colorado a suburb of denver, realtor charles robbers knows that bargains are driving the numbers up.

>> well, with walmart, options are a great way to take a directional bet. walmart has not participated in a rally, this rally in an environment where this should have been a home run for them and you have to wonder what happens to walmart when new walmart customers go back to the old upscale stores that they used to frequent, but that they were visiting walmart only because of the current situation. so there's lots of downside here for walmart and there's not much up side. given the situation, if option prices were higher, i would normally want to sell the call spread to take advantage of that, but because options are so cheap, instead, i want to use the other side and i want to bui a put spread. specifically i want to buy the december 47 halves, 42 halves spread. i can pay about $1.40 for the spread, buying that 47 half and selling the 42 half put for 80 cents. that's the trade i want to do. there are a couple of questions that come about because of this. number one, if volatility is so low, that is auction prices are so low, why do you want to sell that d

is sports betting coming to a casino near you? bring it on.ocery store when i had a heart attack. my daughter was with me. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time. shepard: going to sweep the yankees again this weekend, do you? the monitor right there tells me there is a man on first with one out in the bottom of the second and no score. but that means nothing. you can't bet on the thing, not legally anyway, unless you are in one state where sports books are allowed. now some other stays want some action as well. all the tax revenues that come with it. >> right now only in nevada is sports betting legal. faced with a massive budget deficit the state of delaware wants a piece of the action too. delaware, in attention to nevada montana and oregon are really exempt from a 1992 federal law which outlawed state from book making. using that loophole delaware lawmakers passed a bill early year

the irony is, though, you're not really buying insurance at that point; you're just placing the bet. >> kroft: when we spoke to eric dinallo, he was insurance superintendent for the state of new york. he says credit default swaps were totally unregulated, and the big banks and investment houses that sold them didn't have to set aside any money to cover potential losses and pay off their bets. >> dinallo: as the market began to seize up, and as the market for the underlying obligations began to perform poorly, everybody wanted to get paid, had a right to get paid on those credit default swaps. and there was no there. there was no money behind the commitments. and people came up short. and so that's, to a large extent, what happened to bear sterns, lehman brothers, and the

pay less. ( music throughout ) hey bets, can i borrow a quarter? sure, still not dry? i'm trying to shrink them. i lost weight and now some clothes are too big. how did you do it? simple stuff. eating right and i switched to whole grain. whole grain... studies show that people who eat more whole grain tend to have a healthier body weight. multigrain cheerios has five whole grains... and 110 calories per lightly sweetened serving. more grains. less you. multigrain cheerios. ( music throughout ) hey bets, can i borrow a quarter? sure, still not dry? i'm trying to shrink them. i lost weight and now some clothes are too big. how did you do it? simple stuff. eating right and i switched to whole grain. whole grain... studies show that people who eat more whole grain tend to have a healthier body weight. multigrain cheerios has five whole grains... and 110 calories per lightly sweetened serving.

what are they betting in terms of a target? >> well, i don't know if it's a crystal ball, but it's definitely a good place to look if you're interested in seeing where people are trying to make some bets going into a catalyst. target, we saw a lot of near dated put activity buying august at the money and just out of the money puts, but i think before we take that as a bearish bet, we should note there was fairly substantial call buying, as well. the thing i would highlight about target, this is one of the names where implied volatilities have dropped a bit, making it possible for people to make directional bets into a catalyst like this. >> in other words, imply volatility comes down for prices of options go down also, it's cheap to buy the protection. >> that's right. and to give some perspective, you're talking about a stock a little over $40 and, you know, you can make these kinds of directional bets and you could buy, say for example a call that's about 80 cents on the money and the premium about 65 cents. that's basically

i don't worry about tv-1 and what bet is doing and what my blog says.son does his homework first. i choose his friends. i want to know what is our responsibility as a community? what are we doing on the ground zero? >> what's being set up here, it's very well-meaning, but it can be a little abstract. the way you're raising your child and that people are here listening to you gives the example of how you're raising your child. if it gives people ideas and makes them think, you know what, maybe i've been a little bit of a slacker. maybe instead of going out one night with my girlfriends, i need to go to a parent-teacher meeting or maybe it means i have to stay up later if i'm by myself to make sure my kid's homework gets done. maybe it means we as women need to take a look at some of the guys we date and if they're not holding up their end, we've got to get better men and we've got to say, maybe we have to make sure in the world we live in that schools teach kids sex education. >> my question is to chuck dee. this is a privileged group of folks that can s

nick: and i'll bet he drives on bridgestone tires as well. jim: i thought you would tell me he walks on water. here we go for the finish to tie allenby. a round of 72. there again, he said last night, foreshadowing this day, can't shoot somewhere around 70. can't be somewhere around even par because you know tiger is going to shoot something like 65. tiger has this putt for birdie for 65. in this scenario i've never seen him miss one yet. no reason this should be any different. number seven. he's up to 70. it was a riveting match through 15 holes. i've never seen it end so quickly in one shot, but tiger is the champion again. let's go down to you, david. >> tiger, seven wins here -- here at firestone at the bridgestone invitational. 70 overall, but this place is definitely something special. you had a real rough stretch at the start of the second nine but you always seem to find it at the end. >> it was a great battle. we hadlocked horns pretty good and i made a couple of mistakes and paddy was being consistent, grinding it out. unfortunately

. >> and the bet is being placed on the dollar. which doesn't seem to make sense. >> i don't think -- china has a v-shaped recovery, they've had it already, but we're looking at the g-3. look at japan, the u.s., like at what the swis franc today. >> i think the dollar is more a result of a very crowded dollar if you think we're all recovering, but i think the dollar is more a result of a very crowded dollar short and people rushing back to get into this. i would start to get short the dollar around 80 on the dixie. we're over 79 here and would stay long the commodities. the fact the commodities. i think that's the big trade. commodities rallied today. when the dollar was rising, that tells you this trade is not broken. the dollar will come back. >> oil sold off significantly at the end -- sorry. >> oil sold most significantly at the end of the day, it was under pressure, because the dollar was rising. pete, you're up. >> you look at the volatility index. why? when it broke through 24 today, suddenly it looked like all bets were off

the first is seeing bets that volatility will come in. we saw that in the form of somebody who came in and paid for 25 puts and bet volatility will decline. that's a good thing. when volatility comes out of the market, encourages more participation and will encourage a broadening of the rally. home builders, we saw somebody sell 11 puts and and 18/20 call spread, if you're willing to draw a line the sand and say, i'm willing to get long, that's good sign, conoco phillips, we are seeing a number of things, all very encouraging. >> what is optimistic, not only broadening out but, scott, buying in tech land, a good sign the leadership of the market, some is continuing to move higher or at least optimism that is happening. >> that's right. we know tech has to participate if the entire market will turn around. we've been waiting for that to happen. we had good news today and intel led the way, instead of rushing out and buying stock, we saw up side call buyers, sub20 into and october 22 calls, people buying those calls instead of rushing out t

he always bet on his team to win. so there was no shift there and if the steroid error greats are in consideration for the hall, who shamed the game more. >> i have to disagree with him, because he bet on his team to win, doesn't necessarily get him out of this. the days he didn't bet on them to win, he probably thought they were going to lose. that's a very unsavory subject. i don't think he'll be reinstated anytime soon. there was no indication, from bud, that he had changed his stance on that. me, on pete rose, i think he should be up for the hall of fame. i think people should vote for him, on the hall of fame. and if he got the option, he would not be voted in. i don't think the veterans committee would do it. if they if they gave the writers a chance, i don't think he would. i don't think he'll be reinstated to the game, to be a coach or manager. i'm not sure that's that's going to happen. with bud selig, i'm not sure, it's in the cards with him coming back. >> hank aaron and mike schmidt and joe morgan. there a

with the down index you can be betting that it's going down. and it's a pure play on prices itself, home prices. it's not buying home builders, right? >> that's right. all we hold is short-term treasuries and cash. and the treasuries and cash are moved between the up and down securities based on changes in the case shiller top ten index. it is a pure play on home prices. >> eric, you published a report a couple months ago at morningstar talking about the case shiller price indexes, noting that you believe we should be seeing sequential improvement in prices later in the year. is that actually happening right now? >> yeah. it actually happened for the first time in almost three years last month, and there's probably some pretty good odds it's going to happen for the next two as well. the thing about predictions, it's easy to predict the past, a little more difficult about the future.. and with case shiller we're already talking about old news. it's got a two-month publishing lag and it's a three-month moving average. the data that's published ev

i bet you will get heavy rain but that is e only thing we are seeing right now. we will talk about the forecast tonight and on the max hd system it looks sweet and comfortable under partly cloudy skies. temperature 70 and up to 87 today but the big difference is lower humidity. the humidity will sneak up a little bit tomorrow. it will get hotter, 92 opposed to 87 today. there could be an isolated shower or storm around and that has a lot to do with the fact the wind direction will change out of the south southwest. that starts to heat us up a bit. so we can solve the max hd future cast we will start it at 9:00 tomorrow morn and one or two showers by 5:00 tomorrow. the vast majority of any activity we see and i think it will be ice it -- isolated will be by the mountains. all bets are off when we get in to wednesday. emstasy acberopphe s.system approaches. increase the moisture a little bit and by thursday we are chasing it out of here. according to max hd future cast but a chance of a thunderstorm in the forecast on thursday. looks like tomorrow will be much ligh

i don't think saying that he made an amazing bet and the bet turned out right this time is a way -- is the way we should be encouraging citigroup to act. >> is that how these businesses are run? at the end of the day, a a bank is all about taking on some risk for some reward. . >> some risk, but you know, bob just said this would be perfectly okay for a hedge fund. i don't have a problem with that. put all of this in a hedge fund. >> back to the -- your money is at stake. >> that's what we are saying. >> of course. >> banks ought to go back to christmas clubs and passing to out toaster it is you put $500 in them. that's not the way banks work in today's world. >> not the way banks work in -- >> the most successful balance sheet bank in terms of what it's been doing in the last six months is whom? it is goldman sachs. they had a tremendous quarter. they didn't make it by underwriting securities and taking in deposits. >> no, well on the market. >> proprietary trading.g. >> bet well on the market. >> guys, remember, go back to '90s with barons, merchant bank in britain, where a trader br

. >> what's the bet? you heard about the "w" call. >> when you were a kid you used to draw those seagulls, kind of sweeping vs. what i think is right now you have the left side of the sweeping v, the bottom, of course, in february, whether it was 676 in the s&ps or 6,500 in the dow. i think connecting these two vs, you know, is the "w" idea but i think there will be a lot of nice in the middle. the momentum in stocks, they continue to trade as though they're on prozac, and that could happen for a couple more months. >> rick, what's taking your seagull, you know, into this elegant flight pattern suddenly? it doesn't seem to me, certainly why is roubini carrying it onboard? are you excited? what changed? >> mr. greenspan was the maestro at one point but looking in the rear view mirror not so much anymore. i think we're in a pure and simple inventory cycle, and different countries are going to have different parts of the cycle. we're building widgets, you know, i think the cash for clunkers is a clunker but

those are very, very good cross rate bets. as far as the dollar, i think you've got to pick your opportunities and wait for levels like 1.45, 1.46 on the euro/dollar and then sell at those kind of levels. i don't see the fundamental arguments to embrace a much weaker dollar from here. >> should i be doing this through etfs? what do you think about that strategy? >> you can but i think really for the average investor, i think you just want to keep to spot-related trades and just focus on individual currencies wherever you can. you know, i think there are a variety of different ways you can express a currency trade. just go to the heart and go to spot i think. >> would you buy the chinese yuan. >> a tough one. that's one for the professional trader. >> you can do that through an etf, as well. >> you can do it where if you actually look at the five-year forward, it's not the most liquid contract but that's only looking for appreciation of about 4%. i could see that appreciating by at least 20%. so that's one really for the profes

you bet it will be a bad travel day and i'll detail that information in about ten minutes from now. >> okay, bob, busy this morning. >> it is. >>> a bizarre incident in atlanta forced students to jump off their moving school bus. surveillance from a gas station shows a 23-year-old man behaving strangely, crouching and fidgeting, then police say he ran out, jumped through a window on the bus and overpowered the driver, but it gets even wilder. how he apparently lost control of the bus and lost his pants. um bill-- why is dick butkus here? i hired him to speak. a lot of fortune 500 companies use him.

. >>> plus after a beautiful saturday, will we stay dry for bet er cocooler.olgh

. >> i have to imagine it was the short squeeze and some people were betting the stock would go down. there seems to be a feel good in the financials and we did get good economic data in the manufacturing numbers and that off seset some negative views o housing and delinquency and everyone focused on the manufacturing data that came in at a good reading. >> thank you very much. >> now to housing where we are still setting records on the foreclosure front. cnbc diana has the report. >> we're still setting record. total loans past due climbed to 30% of all loans out standi ing and the culprits are changing,

>> yeah, you bet. the department of labor sets up local one-stop career centers. and at this offices you can find information about local jobs available, free classes on jab prep, computer training even. there are also a number of specific programs that can help you out. the displaced worker program. this is a program that will help you find work if you are laid off and the industry in that area is in decline. there's also something called the trade adjustment assistance program. you'll be eligible for the job training program if you were laid off because of a shift in

took it to the wall street casino, placed some bets. bets are going their way, lavishing the winnings on themselves with bonuses and raises. there's nothing for the shareholders, as soon as the bets turn sour, they will have new lows and executives be back in washington looking for more bailout money. >> how much was a short squeeze, ceo says something positive and a lot of people thinking like peter and short the stock and suddenly getting creamed. >> exactly. we have seen short classics like vw. peter is right. it is adult swim, get out of the pool. if you have a thousand shares in your safety deposit box, you wonder how that happened. they're putting it out and buying it back and buying it back again. the traders are in charge. not a good place for investors. this is a classic short squeeze. >> i like when you say adult swim, keep your bathing suit on. you want to move to the overall markets. >> the comments about adult swim are appropriate. let's not forget about one additional thing not talked about, change of leadership. we're tal

people are betting on which company they think is going to succeed moving forward.d. but this will take the gloves off of competition, folks, and probably going to see innovation. people excited about this conversation today. i do want to touch on a couple of names, starting with anadarko petroleum.

growth going forth. >> i will take that bet. i will take that bet. >> we will mark that downright here and we will revisit that. we'll have to leave it there, though, you guys have a great weekend. >>> next up, will he stay or will he go? while the fed types wrap up their stay in jacksonhole, economists all over the world are waiting and wondering, we're talking about that and what another four years for ben bernanke will mean for your money. two minutes away. and "options action" 8:30 eastern. we are back in a flash. woohoo! listen, that beret is really not hot. i am all roots and no time. i gotta run. no running! let's touch-up those roots in 10 minutes! root touch-up fixes roots or grays that pop up between regular colorings. i feel so much better. root touch-up by nice 'n easy. your right color. >>> now to the talk of the town from wall street to washington and especially wyoming. will fed chairman ben bernanke be reappointed? david goodfriend worked in the clinton white house, chris wilson is the founder of the wilson resea

>> i think it's more like two decades. >> bet oh! bet i was, it's been around since the early 90s at least. >> the newsroom was abuzz yesterday when they heard you were coming. i actually couldn't believe it. [talking simultaneously] >> we need to hit the road. there may be a couple tickets available. you may want to check it out. we gotta roll. safe travels. >> thanks, man. >>> we're taking a break. we're coming right back. we'll have weather and more after this. >>> let's look at the forecast. it's an easy one. talking about sunshine and a high temperature around 86 degrees. now to sharon. good morning, sharon. >> hi, marty. good morning everyone. pretty good morning on area roadways. we have one accident on the west side. inner loop, partially blocking a ram. if you look at the far right of your screen, that's the flashing light of that ramp partially blocked. there's a look at speed sensors around the ramp. accident still working 795 southbound. east jappa, that one at little wood road. there's a live look at 95. everything runni

. >> i bet they were. none of the men had suffered any serious injuries despite all they had endured. amazing story. >>> now to another amazing story, joe. today, police in california continued searching the home of a man accused of kidnapping a little girl and hiding her i his backyard for 18 years. authorities in the san francisco area were searching for evidence to see whether phillip garrido is linked to any other crimes including murders. he's charged with keeping jaycee lee dugard, now 29 years old, as a sex slave. and fathering two children with her. garrido has pleaded not guilty to abduction, rape, and imprisonment charges. >>> and we're learning now details about the death of a popular deejay. the man known to many as dj am was found dead in his manhattan apartment on friday. according to a report in "people" magazine, police found adam goldstein dead in his bed with a crack pipe, a bag of crack cocaine and prescription pills nearby. dj am had battled drug addiction in the past but claimed he'd b

we never had a moment of boredom. >> i bet a lot of beer drinking.nt to say thanks for legitimizing beer. >> yes, thank you. >> i'm one of those beer drinkers that feels funny in a nice restaurant ordering a beer instead of wine. >> you shouldn't. the same sort of rules apply. >> light beer, light meal. >> very similar. light beer, light food. the same principle you would apply to white and red wine you want to stay the same. i'll give you simple tips. this is a light meal, belgian style, has coriander, citrus and goes well with light citrusy food and light chicken dishes. that's an easy one for any time of d. it's early here and we're already drinking. it's one of my favorites. if you want to do a white wine and you're pairing the same principles, stay with a lager, this is a sam adams, and this lager is going to go just as well with the food you're going to drink with the white wine. >> equivalent to white wine and red wine? >> this is an ale, sam smith, a little richer, you can see the color and it can take the place of a red wine. have a sip. >>

we're betting that the market has no memory from day-to-day. a pretty good bet in this environment. when stocks get hammered indiscriminately, it gives you an opportunity to get the good ones that don't deserve to be taken down. take urban outfitters which reported the best retail numbers of the quarter on thursday. up all the retailers they did the best. it's now selling off with everything else. how does that make any sense? everyone's decided that china's all that matters, but the united states isn't some gigantic version of hong kong, china may control the stocks of the raw materials and equipment companies that i agree with. but what the heck does the price of copper have to do with retail on america? we are not a colony of china, or at least retail isn't. and that makes the weakness in urban outfitters a gift. although, china does make some amazing knockoff coach and kate spade bags, not that i would know firsthand. one of the few successful incubators. it's not all about urban outfitters, it's urban and anthropology and free people, and two concepts leaf daughter and terrain.

we are making a bet on batteries. are we swapping reliance on middle eastern oil for reliance on another source not made in the usa. the obesity wars continue. did you know a one-send tax on soda would triple research funding? why a bigger tax might be the best way to fight the fat. we have all that and even if you didn't put money to work, you have been making a lot of money on wall street. we will explain in a couple of moments. let's give you the details on this tug of war for the market. we are down a half of one point. here at the open, stocks headed lower and they saved a turn around. mark and were following every bit of the yo-yo and now barely back in the red. is it a good or bad thing that we can't get higher. here at the new york stock exchange and scott wapner at the nasdaq. >> good reason to be cautious. the bottom line was good, but not a lot in the way of sales. we'll get abercrombie and fitch and after the close, we will have nordstrom. take a look at nordstrom str. there was not a surprise. it was a pl

i bet he will be doing some work there.o golfing, i bet he might be on the phone, making some calls to the hill. >> that's right. in fact, the president was on his way out right before this rain started, jeff, and he was asked as he was boarding marine one if he was going to play golf with tiger woods and the president said, i'm going to play some golf. i can't imagine why anyone would want to play next to tiger woods. any way. jeff, go get inside. i'm sorry to make you stand outside. and mia, great stuff as always. >>> another big political story just in, more heat today for mark sanford. they've got a new investigation just out that reveals he took dozens of flights on private planes and did not report them. why is this a big deal? because you're supposed to report them. staffers say that's because friends paid for the flights x however, a state law requires reports showing how this travel is financed. >>> martha's vineyard is preparing for this visit by the first family. the president and his family are off on sunday for

i bet you they borrowed sales. i'll take any sales. that's what people saw with toll brothers yesterday. that stock went so much higher on so-so sales. down huge year over year. didn't matter. didn't matter. this is a gigantically profitable company when the cycle turns. how can it not turn next year? housing stabilized. next comes house price appreciation after stabilization. you have to look at the areas that have been hardest hit to see the stabilization. other areas -- i've been negative about new york, but the media would have none of it. not when it can talk about foreclosures and underwater mortgages. i'm reading tell brothers and thinking -- >> house of pleasures. >> and they're thinking -- >> house of pain. >> the media has the pulse. bob toll is only the ceo of the largest home builder. what does he know? the media says that the numbers are all bad. the market says we don't care how you get there because we are blown away, blown away that you weren't in trouble after the worst economic contraction since the great depression.

bank of america is a big bet on the consumer. i would put them in the city category as far as comparables. i like what's happening there. they average $1.3 billion a day for the month of august. that's 20% of the nyse follow um is in citi as the stock has gone from 3 to 4. small pull-back yesterday, i think that name can perform just as well, if not outperform bank of america. >> you said "if" commercial isn't that bad. that's a big "if." the different could be that they're writing it down up front right now, putting aside enough reserves to offset those losses and maybe we aren't seeing that at same degree -- >> federal realty yesterday put out 1.7 million shares out to the public at $57.50. the stock's $60 today. there is a risk tolerance at least coming into the commercial area right now. i like what this is showing us right now. at least the risk is there. doesn't mean it is oemp but risk is coming back into that sector. >> brookfield properties today, a very big new york office space exposure, they did an enormous offering,

since then, the bsa has been working to maintain fire hydrants bets -- wasa has been working to maintain fire hydrants but still has a long way to go. >> we were at ground zero in 2007, the work had just begun. >> water supply engines will be brought in in low-flow neighborhoods in the short term. in the long term, all the city's high regions will be worked on to hopefully prevent a fire hydrant will be worked on to hopefully prevent a repeat of this. >> repair work means major delays on the matter this weekend. add 30 minutes your trip on the red line because trains will be sharing a track between 10:00 tonight til close on sunday. there will also be a a 30 minute delay on orange line between the vienna from west falls church from o'clock to midnight on sunday. and on the yellow and blue line, 45 minute delays for a major switch replacement that should wrap up after labor day. >>> is on your side help you save money for back-to-school. as for today, you can shot tax- free for. -- shop tax-free. >> this friday and saturdaynd sunday are tax holidays. major retailers are likely to celebrat

i think tomorrow. 90 is a pretty sure bet outside. all right. check it out. on your city-cam, a bright blue sky overhead. and a wonderful day to be outside. pick your favorite sidewalk cafe. plan to be, eat your favorite meal. good weather for it ouide today. temperatures in the mid to upper 80s. high today. 89 degrees. 72-degree start this morning. august rainfall. .8 inch of rain all most in auk. less than half of our average rainfall. this follows of course the fifth driest july on record. we really could use the rain around here. it's not coming tomorrow. it's not coming monday either. so, couple more dry ds on the way. 86 in town. 83, annapolis. saint mary's county. little bit cooling off. locations right along the water. get away from the water though. temperatures uniformly in the mid to upper 80s across the area. wonderful weather cupping oomin way. high pressure in charge. one or two lonely showers popped up, west of the blue ridge. those will be fading very quickly. high pressure in charge of our weather. lonely showers will be gone by 7:00, 8:00 th

inflation-protected securities are an interesting one known as tiffs, a best bet for protection. investors fearing our monetary policies are going to lead to inflation eventually. the analysts say if you believe that, then you got to park a part of the portfolio here in this place. what's interesting to note is as crude oil has gone up and it's hard to see really on the screen from you know, the increase in the tiffsetf. as crude oil goes up, he's etfs usually going g up along with them because what happens is that michelle, behind the protection, against inflation, you see them trying to protect against higher oil prices. as oil goes up, people are more interested in own them. >> you were talking about inflation protected securities. we had the auction today of relgs treasuries, the three-year. the government is trying to borrow a pile of money to fund these deficits we're taking on to fight the recession. the three-year went very well today. the question is the ten-year tomorrow and the 30-year the next day. >> right, the longer you get out on the yield curve, the more advanced

people are betting for the same thing in jci, johnson controls. i'm long that. and i'm just following along with the smart money there, buying aggressively out of the money calls and when they're buying those out of the money calls they're not just saying they think the stock's going to move a little. they think it's going to move a lot because they've only got two more weeks to be right because these august options that's how much longer they have to live. >> how about the tourist business? carnival cruise has been moving up along with the rest of the market and yet there was a story yesterday, i forget whether reuters ran it, about how tour operators are cutting cruises in alaska because they can't fill the berths, they're cutting the prices because they can't fill the berths. >> exactly. and this thing peaked out at about 30 in may, bob. and now it's made a run back up towards 30 now. and i think a lot of folks are looking and saying that top and those october levels are why we're buying puts aggressively, it looks like to hedge themselves more than it looks

i'd be betting against one stock and in favor of another.ommend shorting stocks on this show. it's too dangerous for most non-professional investors. that said, i do want to go through this educational exercise because with these two stocks, netflix and coinstar, this is a great way to get rid of the risk. by betting against another company in the industry, what you're doing is hedging out the risk that home entertainment will turn out to bow a flop. because you're buying the best company in the industry, the two trades shouldn't cancel each other out. you may not make as mump as you would like if they both go up, but i believe, here it is, coinstar, that's red box, should go up more than netflix. i think it's the better story. and netflix, i believe, will go down more than coinstar if the whole dvd rental industry goes south. that's how hedges work. hedge fund, they hedge. that's a hedge. so why do i think that netflix isn't as good as coinstar? first of all, you can like both. i know i do. but in a paired trade, you only buy the best and s

he's made his bet on newspapers almost nobody else in the entire world would be willing to bet on ats point. and he's a man grasping at straws. how does he stay in the news business? how does he remain the man who owns the news, which i think is probably not possible at this point. >> chris andersen, i understand the urge to charge for your content, it just seems like i don't think anyone wants to read ever anyway. if you start trying to charge and another rival site isn't charging, you're dead. >> this is completely misunderstood. people think it's 100% free versus 100% paid. the "wall street journal" is an example. think of the "wall street journal" 90% of the traffic is free and 10% of the traffic is paid. >> that's not true at all. >> that's not the way it works at this point. it's very important to look at this in terms of what it has produced, compare the "new york times" free site, "wall street journal" a paid site. the "new york times" makes a much more money than the "wall street journal" makes. but also very important to look at both sites. neither makes enough money to sup