joining me now to talk about it is dr stephen leeb he is chief investment officer at leave capital management. and he is author of this book among others it's red alert how china's growing prosperity the ratan the american way of life he's just the guy to talk about all of this dr lead thank you for being on the show so first because you wrote the book on it it's about america and china your book so is far is resources who's doing a better job acquiring them. well i think that it's just overwhelmingly in favor of china right now and so overwhelmingly i think that even the problems you're seeing in the developed world right now including greece including. the united states including europe you can really trace to the fact that resource prices are extremely high much higher relative to incomes lower in lower income people than they've ever been before and twenty eleven with virtually no growth in the developed world virtually every important commodity you will average higher than they've ever average before average gasoline prices in the u.s. will be the highest ever almost assuredly in twenty

transit or transportation, but with significant and it relevant experience in delivery of capital projects and managing a capital program, and it was a very strong focus of mine to do exactly what commissioner chiu is talking about, which is to bring a culture of accountability to the capital projects, and i had the pleasure of joining many of you at various groundbreakings and ribbon cuttings over the years, and i think we have moved up the ball significantly forward as a city in terms of how we deliver capital projects, and i would argue the success at the ballot a week ago today is to some extent a manifestation of the public's confidence in the ability to deliver what we say we're going to do. it was not that long ago that was not the case, and i think maybe some of what this all that has expose is what was all in the rest of the city not long ago where we would come in with a concept, perhaps not as well defined as it should have been come and put out some numbers in terms of cost, schedule, and we would significantly blow through those. under the leadership of current boards and mayor's we have r

hundred sixty million dollars for handling the bankruptcy of lehman creditors got nothing so this capital management firm says if this bankruptcy is managed the same way as lehman's it will be the end of the united states as a viable jurisdiction for commodity trading congress should use whatever power it has to prevent this from happening so i'm going to cut right now to the next headline because he's pleading with the tongue. to help him out how members of congress get rich through honest graft so apparently insider trading is legal for congress and a new study out shows that how much congress people have benefited including like john boehner reportedly invested in several health care stocks shortly before killing the public option and last year's legislation nancy pelosi has participated in eight i p o's including some involving companies that had business before her house giving a senator or congress person pre i.p.o. shares in a company is allowed under current rules even though giving them an equivalent amount in cash would be considered an illegal bribe. they threaten inside information they'

global casualty yes max has barnhart capital management and they ceased operations and in their letter to clients they say the reason for the decision to pull the plug was excruciating only simple i could no longer tell my clients that their money some positions were safe in the future isn't options markets because they are not the entire system has been utterly destroyed by the m.f. global collapse he goes on to say what was the surprise was the reaction of the exchanges and regulators their reaction has been to take a bad situation and make it orders of magnitude worse specifically they froze customers out of their accounts while the markets continued to trade refusing even allow them to liquidate oh it's not unprecedented on the branch level as i've been explaining the individual branches of brokerages with the compliance officer and the trader and i ball distance of each others a tremendous amount of fraud that goes on this is more of an institutionalized fraud where the regulatory agencies themselves are to see any are acting like a corrupt branch compliance officer for the same r

week: our friday market monitor guest is james paulsen, chief investment strategist at wells capital management. we'll also get an update on the housing market with data for new home sales and home prices. it's been ten years since enron's collapse. on monday, we begin a week-long look at the meteoric rise and dramatic fall of the energy company. there's a new wave of downsizing in the airline industry that will impact smaller airports. planes that connect smaller cities in america are being phased out. it's due to the lack of fuel efficiency and the high cost of fuel. many big airlines are expected to scrap or sell jets with 50 seats or less. propeller planes are also meeting the same fate. the loss of those planes will leave some cities with fewer flights or have service discontinued. give yourself extra travel time >> tom: the stock market has limped into this holiday season, weighed down by europe. but tonight's market monitor says the biggest risk is that despite the worries, there is still too much optimism around the banking sector. bernie schaeffer is chairman of schaeffer's investment

five says that the result was supported by strong sales and improved capital management. well that's all we have time for this hour but i'll be back with more in about fifteen minutes help in trying. to. manage an asset that the phone watches show every single day. and waiting for you to stumble. i saw a man with a video camera so i moved over and he phoned me so most of. you know we realized there were following everyone from early in the morning. the only chance to get rid of him. is to reveal him. me double operation on r g. the world. science technology in a. all the latest developments from around russia we've got the future covered.

>>craig: fill rate schlossberg from wealth capital management tells us why our area has weathered the recession better than other parts of the country. >> if you look at san francisco, and to limit growth has been running ahead of the national average. a lot of that was centered initially on teflon. and limit is up from a year ago in the silicon valley area. >> steel industries tend to pay more because the things they sell, the services and goods tend to have a higher price than more sophisticated--there are more sophisticated and debris in higher revenues. that allows businesses to hire more skilled workers. >>reporter: as the bay area economy continues to grow ahead of the national average, some retailers are still not expecting a record-breaking sales of if fan of the al believes very cautious. the international council of shopping centers in federation of retailers for not looking for a fantastic christmas season by any they are looking for sales to grow less rapidly. >>justine: here is a look at stores that are opening at midnight for earlier 50 e.f. >>mark: off at the shopping b

and currency fluctuations says the result was supported by strong sales and through capital management. russia is currently experiencing a liquidity crunch the central bank has kept interest rates unchanged citing inflationary risks but. capital says there are other tools to resist a big squeeze. in the reason. the budget who. want more budget expenditures should come into this system and provide some relief but the global conditions we deteriorated in. the fourth quarter investments. and. these central banks which from our currency buying more. current saving more and these all factors brought. in a little bit more but still the central. able to fully control the situation in the domestic money market while business r.t. will be back in fifty five minutes time with now it's time for a short break and then headlines. world should science technology innovation all the moves developments from around russia we've got the future covered. magine assets that the devil watches show every single morning. and waiting for you to stumble. i saw a man with a video camera so i moved over and he fol

had fun long term capital management see this is a problem that a bank that unforeseeable event like that was out here and had such a low probability that they weren't planning on it and weren't planning for this so this is where you see over here financial market panics and it can wipe out ten straight years of gains in a matter of hours because you think your breasts are hedged but they're not because you're not planning on this dramatic event so now that you know what a turkey is now you know why this thanksgiving you really do not want to be one. and don't go away still ahead on the capital account sticking to turkey's how to avoid becoming one when it comes to the euro zone debt crisis and first your closing stock numbers. into it only which we make it seems do not work to bring justice for a time. i have every right to know what my government would want to know why i think taxes. well i would characterize obama as a charismatic sort. of american exceptionalism. thank . you. welcome back all right let's switch gears and talk about europe because in greece we see striking power w

paper and currency fluctuations five says the result was supported by strong sales and improved capital management. right that's formed from me for today you can join my colleague will be here next with an update for you. well for science technology innovation all the moves developments around russia we've got the future covered. whether it's life in the fastlane or most slow but today anyway. they shouldn't alongside them not. natural science and technology updated. the diversity of this land on the limited. come and gone takes a ati.

i think of it that focuses on how the mta is managing capital projects provide the timely footprint for mr. reiskin on how to improve this agency. i also want to thank the leadership of the transportation authority, the chair for creamii and the members. i think it is important that we work together to improve the way we do things i look forward to a similar performance of it being conducted of the county transportation authority so that we can also learn how we can improve and that area. the last thing that i would say before i turn it over to cgr management consultants for their presentation, is i do think there are many lessons to be learned in the 19 recommendations that are made by this autumn are recommendations that need to be taken seriously. we have heard repeatedly how there are limited resources that the mta has available. this audit point out that as important -- as important as it is to get additional resources, the big problem is we're not doing enough with the resources we have a. we have findings that are sobering and point to significant need for improvement. there are

gingrich was consulted about freddie mac's efforts to become more transparent about risk and capital management efforts would be received by republicans in congress. this person said gingrich was also consulted at one point about the company's efforts to bond with the bush administration, bringing more minorities into homeownership, this at a time when republicans overall were really against the whole idea of having a fannie and freddie there. again, important work and important work as far as the political implications with republicans. technically, not physically lobbying for them. >> who els was freddie mac paying? fannie mae paying for that matter even as both of those operations are in serious financial trouble? lisa sylvester is here with that part of the story giving us a little bit more perspective. >> that's right, wolf. newt gingrich has spoken out blaming fannie mae and freddie mac for contributing to the housing crisis. he has received more than $1.5 million from freddie mac. it turns out he was not the only congressional lawmaker who went through the revolving door and ended up wit

capital processes. the study cited ripe for abuse exciting projects. we think that asset management team will provide closer control on who charges those. at other clients we have seen thus contribute significantly to overruns. i>> the fifth area of major concern is the one we complemented before, which is the cps projects, the capital control projects. this is a difficult project in that it interfaces with numerous other systems, and needs to be very well managed. we believe the initial estimates provided by the vendor were overly aggressive and would not be met, and we have subsequently had discussions with the staff, and we still believe that. we are concerned that that system, which is important for the future control of projects, is going to run behind time and cost more than it originally was expected. >> ok we're shifting now from our concerns and to recommendations. we have already talked about the asset management teams.

think about long-term capital management a decade ago. so, yes, i mean, the whole point of the exercise is the more risk you take, the more reward you can gain. but by the opposite is if the risk turns out to be wrong, you can lose everything. that appears to be what happened in this case. >> suarez: joe notice suero of the "new york times," thanks for joining us, joe. >> thanks for having me, ray. >> woodruff: now, two takes on the struggle to find common ground on tough budget issues. we begin in washington where, on capitol hill today, the joint select committee on deficit reduction held its fourth public hearing. newshour congressional correspondent kwame holman has our update. >> holman: with just more than three weeks to go, the deficit super-committee is hearing rising calls to "go big" on rolling back the red ink. that message was reinforced today by the co-chairs of president obama's deficit reduction commission, erskine bowles and alan simpson, and the co-leaders of a separate task force, alice rivlin and pete domenici. bowles w

>>reggie: a senior economist at wells capital management says the economic downturn was wedded to the bay area better than other parts of the country. >> if you look at san francisco, employment has been running ahead. many of that has centered initially on technology but now we're getting a ripple effect. even construction activity is up from a year ago. >>reggie: see full may shell out more cash for high- priced gift because they have more money to spend. >> skilled industries tend to favor or because the services is did they sell tents to have a higher price attached to that the if the more sophisticated technologically and the higher revenue allows businesses to hire more skilled workers. >>reggie: as the bay area economy continues to grow ahead of the national average, some retailers are still not expecting record- breaking sales. >> the outlook remains very calm--cautious. retailers are not looking for a spectacular christmas selling season by any means. some of the more recent estimates or for sales to grow less rapidly than they did last year. >>justine: as of october the unem

there was a terrible meltdown all over the world and that's when the long term capital management hedge fund went bust and all hell was breaking loose. the i.m.f. and sort of the committee to save the world, you know, i mean, they were running around thinking my god, what do we do now? one of the things they did, they said we need to -- we need to run is one country that we're going to pick as our model for everyone to follow because evyo

and the managing partner of capital investments management joins us today.s good to see you. this is, wow, a very important topic that could affect the united states economy and even the global economy and what has to take place with italy, in terms of the moving forward financially? >> well, i tell you, kelly, it's an important discussion, people have to understand in this country what goes on in europe and around the world does impact us. it's important to state up-to-date on what's taking place. because in europe right now, you're start to go see, almost like a grass fire you put out on one place and it comes up in another place and we have a systemic world, and what it means is when one thing occurs in europe or in asia, it does impact, every market around the world and in europe right now, this is not going to be put out anytime soon and you need to be very aware of what's happening and how to handle your portfolio accordingly. i'm happy he's stepping down and it needs to happen, but the problem is a long time away from literally going away. >> you're r