nine compared with the previously reported four point one percent drop now this is from the commerce department but the most important thing that they say here is that companies fared better and workers' worse over the past three years previously thought before tax corporate profits adjusted for the value of inventories and capital depreciation were revised up by two hundred sixty four point nine billion over the period led by improved earnings at financial institutions not so from two thousand and seven to two thousand and nine the commerce department is saying that the corporate profits at banks actually went up this well corporations rely more and more on their dealings with the last three and their dealings in derivatives which are extraordinarily profitable and when you get the government to give these corporations trillions now we know that they gave away thirteen trillion dollars to american banks and foreign banks it's not hard to make money money even a rhesus monkey can make a billion dollars if you give a billion dollars in free coupons and if they make a mistake you can. the billion

this morning, the commerce department reported spending fell 2/10, the biggest drop in two years. it comes tas consumer prices are slipping -- it comes as consumer prices are slipping. the commerce department says most americans increased the amount they saved during -- during june. >>> starting today, highway patrol cars will be decorated with purple ribbons. it's part of a campaign to remind people of the danger of leaving children unattended in the car. the campaign was started by the national organization for keep our kids' safe. the founder is the mother of a 6-year-old who died in a car after being left there by a baby-sitter for more than two hours. >>> it's back to school for many in the bay area. many need supplies. in san jose, more than 2,000 signed up with a nonprofit group to receive free backpacks. sacred heart community services have only collected half of what they need to donate to the kids. say yet heart ends on friday. if you would like to -- sacred heart ends on friday -- hearts ends on friday. >>> tonight at 5:00, keeping talent in silicon valley. >>> and new

the commerce department, president obama's own commerce department says in the last quarter, austerity measures by state, local and federal governments, spending cuts by government, reduced the gdp by 1.2%. so there's no doubt this is contractioniary and we're doing it when the president needs new jobs, not shaving jobs off of our payrolls. >> but anderson, i think there's a larger issue here. no one really is talking about this. if you go back to 1999 which was the best revenue the federal government has probably ever seen it only went up to 21%. the last time that happened was the end of world war ii in 1945. but the federal government is now spending at 25% of gdp and it seems pretty impossible to close the gap. forget, go back to the '50s and '60s, tax rates in the 70% and now we're down to 30% and tax income has been pretty steady in the federal government with the extent of the recession but even if it goes back up it won't close the gap. so at some point the government has to say, we can't keep running perpetual debt. we're at $14 trillion. if this plan goes through as they plan

the commerce department, president obama's own commerce department says in the last quarter, austerity measures by state, local and federal governments, spending cuts by government, reduced the gdp by 1.2%. so there's no doubt this is contractioniary and we're doing it when the president needs new jobs, not shaving jobs off of our payrolls. >> but anderson, i think there's a larger issue here. no one really is talking about this. if you go back to 1999 which was the best revenue the federal government has probably ever seen it only went up to 21%. the last time that happened was the end of world war ii in 1945. but the federal government is now spending at 25% of gdp and it seems pretty impossible to close the gap. forget, go back to the '50s and '60s, tax rates in the 70% and now we're down to 30% and tax income has been pretty steady in the federal government with the extent of the recession but even if it goes back up it won't close the gap. so at some point the government has to say, we can't keep running perpetual debt. we're at $14 trillion. if this plan goes through as they plan

the commerce department revised second quarter growth downward to just 1%. friday has brought fresh worries that a new bailout for greece could unravel after adams warned that it will not proceed with a voluntary bond swap deal if part is a patient falls short of a minimum 90% participation rate. the leaders agreed to a new $109 billion aid program for greece to cover its financing needs. santa to the greek plan is the bond swap deal whereby it -- central to the greek plan is the bond swap deal. so far, participation rates have been less than hoped for. >>, yields on greek bonds have attracted attention from around the world. most investors are european. many of greece is creditors are known. the biggest holder of greek gods -- greek gods. the european central bank is believed to be holding greek bonds worth 40 to 50 billion euros. the they are followed by a french financial institutions and german banks. the voluntary debt swap agreed to in july was expected to help greece said a 37 billion euros. that will not happen if offense cannot get enough investors

an encouraging report from the commerce department showed retail sales rose more than expected, up half a percentage, in july. it was the biggest one-month increase since spring as consumers spent more on gasoline and electronics. but the latest survey on consumer sentiment revealed how pessimistic american consumers are feeling about the future. the university of michigan index showed accept theiment dipped in august to its lowest . in 30 years. now here's how things looked by the closing bell. the dow add 125 points, the nasdaq knand 15, the s & p 500 notched up six. the pace of trading settled to a more normal range with 1 billion shares trading here on the big board, two billion on the nasdaq. the major averages almost finished positive for the week but were down slightly when you add up all the numbers. the dow, for example, down 175 points or 1.5%, the nasdaq off 24 points, or 1%, and the s & p 500 one of the hardest hit off almost 2%. so will this intense volatility return next week? and what's behind the massive swings? erica miller reports. >> weeks like this one are extreme, b

the commerce department reported a half percent increase in sales in july, which is the best showing since march. nine out of 13 categories showed a gain in sales with electronics, furniture, autos and gas at the top. sales for may and june were also revised upward, which could be a sign the economy is not quite as weak as previously believed. >>> a federal appeals court  this morning struck down the provision in president obama's healthcare reform plan that requires most americans to carry health insurance or face penalties. a three judge panel of the 11th circuit court of appeals in atlanta ruled the so-called individual mandate is unconstitutional. the administration is likely to ask for the full court of appeals to hear the case. most observers believe the u.s. supreme court will eventually decide the issue. >>> bart continues to warn commuters to be alert for possible disruptions by protesters in the coming hours or day. we are learning bart is going high tech in efforts to head off more rowdy protests over a recent failed police shooting of a man armed with a knife. late yest

a event when she was shot in the head back in january >> new figures just came out from the commerce department americans cut back on their spending in june the first time in two years and their income increased by a small amount. the spending dropped 1.2% >> new details of the 16 year-old that was kidnapped at robbery at a barbershopper and there was an amber roller issued to find this teenager and now he is back eight hours after he was abducted from the barber shop he is now save and they are still looking for his kidnapper. >> here is the place where he was kidnapped al's barbershopper he i walked in on the robbery he forced the teenager into the vehicle at gunpoint they found the issue it has been processed locally more informations will come out of the any of police department they have good reason that he is safe although the police have not talk to him directly. >> they found a car somewhere in antioch and they are processing the car right now looking for for fingerprints and also the owner of the vehicle to see if he knew who this robber was we will have an update at 7:00 a.m. this mor

. >> susie: here's what we're watching for tomorrow: the commerce department is out with wholesale trade inventories for june. we'll also see quarterly earnings from cisco systems and macy's. and rupert murdoch faces a grilling by analysts and journalists about the recent phone hacking scandal. he'll take questions as news corp reports fourth quarter results. the white house unveiled today the first-ever fuel efficiency standards for big trucks like semis, buses, and other heavy vehicles. the obama administration says the new rules will reduce fuel costs and better protect the environment. it's estimated the new standards will save the trucking industry $50 billion in fuel costs, or half a trillion barrels of oil. but manufacturers will have to shell out billions to build more efficient vehicles. >> tom: with more and more americans accessing the internet from tablet computers, televisions and video game consoles, demand for personal computers is falling. market researcher ihs isuppli predicts more internet-ready devices will be made within the next two years, overtaking personal compute

and the commerce department says that personal spending slipped in june for the first time in 20 monthsa good indicator. we will be watching the markets throughout the day, but right now the dow is down as we take a look there about 86 points. meanwhile the country needed a moment of unity. and we got it yesterday in the return of gabrielle giffordss to congress. the arizona representative cast her vote to help end that debt ceiling battle. it was her first time back in the house since being shot in the head in an assassination attempt back in january. dr. sanjay gupta noticed she wasn't moving her right arm much. >> this is what's sort of expected if you survive a head injury like this, a left sided brain injury controls the right side of the body. that's why the right arm is weak, the right leg likely weak. it also in part is responsible for speech. speech more specifically the ability to express yourself, to say words, to write words, to make gestures that are meaningful. so that is still part of her rehab process. >> meanwhile tropical storm emily expected to reach haiti by tonight

. >> did we have problem with the commerce department. >> they try to make the job numbers look as good as possible when they come out. when they -- >> you mean when they're bad, they try to make them look good? >> as good as possible. when they do revisions they find out the assumptions they made were inaccurate. they estimate how many jobs are created by companies that started. they estimate a certain number of startups, then they find out, guess what, they didn't have that number of startups. it's a statistical effort to make this, and they have overstated -- >> who is controlling their efforts to do that? is that just the instincts of federal workers? [everyone talking at once] >> they're bureaucrats, they're professionals and they are doing the best they can. this is no more a conspiracy than the media extra that you seem to think -- >>> know, this is politics! and it's not heal fum for his re-election. so a call comes from the white house. you can use a little different language to describe this? can you modify your terms? can you touch it up? what do you think? >> or bestselling

the commerce department will release trade inventories and the labor department will have the latest on the job market a little later on this morning. randall? >> ashley morrison here in new york, thank you very much. >>> the first three members of the debt reduction super committee have been selected, all democrats. senate majority leader harry reid named senators patty murray, max baucus and john kerry. nine more members are expected to be announced next week, their job is to find $1.5 trillion in spending cuts to reduce the deficits. >>> the results of the wisconsin election are announced. republicans managed to hold on in four of six races. that leaves them in control of the senate. democrats forced the special election after governor scott walker pushed through a disputed labor law earlier this year. >>> just ahead on "the morning news" another american disappears on aruba. >>> plus on the run, the dougherty gang, three fugitive siblings may have been spotted in colorado. fugitive siblings may have been spottpot in colorado. [ female announcer ] we all want cleaner laundry. we a

states and our interest against that whereas you look at other parts of the government, the commerce department and the department of energy and treasury who all have different responsibilities and you're absolutely correct when the president created this office, the idea was to coordinate these and develop good policy the president put forth on behalf of the u.s. government. >> what do we make of the pentagon's much stronger statements about the cyber threat? if you like and to concerns about a cyber pearl harbor or just when the talk about the defense systems every day. >> i would say that it's not necessarily only on the defense systems, the private-sector, we have other parts of the government and putting other governments, and what it is when we hear what they say we have to take that as a part of the overall picture that we look at, take into account and figure out what they can do to help and how much is it really did to the defense activities, how much of it goes to the fbi department of justice secret service and homeland security. but this is part of an overall picture but not the who

the commerce department said new home sales fell 1% in july. that's the fourth monthly decline in a row. the mammoth number of foreclosures is a big reason the housing market is still struggling. as we continue our series "how to fix the economy," diane eastabrook tells us how chicago is trying to fix its foreclosure problem neighborhood by neighborhood. >> reporter: in chicago, there are thousands of boarded up homes in distressed neighborhoods like this. last year alone they cost the city close to $30 million to maintain. chicago is trying to get a foothold on foreclosures with nearly $200 million in public and private grants. in the past year, the city has acquired more than 600 abandoned properties, rehabbed close to 250 and sold 20 of them. katie ludwig is the assistant commissioner of housing and economic development. she admits the process has been slow, but she thinks it will be effective. >> it is time-consuming to acquire properties, to get them into rehab, and once they're done with the rehab depending on the type of building you're

. >> susie: here's what we're watching for tomorrow: the commerce department reports on how many new homes were sold last month. we'll also see quarterly results from medtronic, trina solar and williams-sonoma. and, our "word on the street" is "tech." we'll look at three top tech stocks poised to benefit from back-to-school shopping. ford and toyota are teaming up to build a new gas-electric hybrid engine to power pickup trucks and s.u.v.s. that's right. the rival automakers say this is the first time they've worked together on product development. they say doing so will allow them to bring the new technologies to customers sooner and more affordably than going it alone. but you probably won't see those engines in showrooms until the end of the decade. >> tom: wild swings in the stock market aren't just scaring investors, they're scaring many companies hoping to go public. since august began, 17 companies have pulled or postponed their planned initial public offerings. just four companies have taken the plunge and sold shares to the public for the first time. a firm that tracks this

in other parts of the government, commerce, department of energy and treasury, all have different responsibilities, and you are correct. when the present treated this office, the idea was to coordinate these and develop good policy on behalf of the u.s. government. guest: what we make of the pentagon's statement about the cyber threat? if you like it to concerned about a cyber pearl harbor. when you talk about the millions of scans done and defense systems every day. guest: it is not necessarily only defense systems that are scant. we have private sector and other parts of the government, including other governments. we have to take that as part as the overall picture will look at. taken into account, figure out what they can do to help, how much is it directly related to defense activities? how much of it goes to the fbi, a department of justice, secret service, common security? this is part of the overall picture, but not the whole picture. guest: we alluded to the white house's cybersecurity proposal. we are over the debt crisis. in speaking with people on capitol hill i've heard a lot of fears

according to a report released today by the commerce department permits for future home construction and housing starts were down for july but as so many pro-government propagandists are quick to point out they were down less than expected a you know expected by all those reliable economists that are quoted in the media all the time the wall street journal is now describing the housing market as battered and struggling and the data makes it clear that the so-called. recovery is about as real as obama's efforts to actually deserve a nobel peace prize so the government manipulated the housing market in a way that was intended to increase homeownership under bush and you see the increase on this chart starting here back in two thousand and two and for a while it worked this chart shows new home sales all the way back from one thousand nine hundred sixty three to now and here's that specific uptick in two thousand and two which lasted until mid two thousand and five when the bubble started collapsing so what happens next the bubble turned into this great housing myth that home prices can

uncertainty and extremely slow growth that's according to some new numbers released by the commerce department that during the second quarter the economy grew by just one point three percent making just eight tenths of a percent annual growth rate far less than the two point five percent pace that is needed to keep unemployment from rising but i guess it's no wonder that even president obama's own former director of national economic council larry summers says the u.s. appears extremely vulnerable to another recession a one in three chance in fact he says so what should we make of all of this well earlier i spoke to dean baker co-director of the center for economic policy research here is his take on the debt ceiling circus. it's absurd it ever escalated to the extent it did because this is always been routine passage congress we've raised the debt ceiling i think was ten times in the last decade i forget the exact number i mean this is we're arguing over sending in the check you know if you want to argue over whether you should buy the car you know you know buy a house that's fine but we alre

other parts of the government; commerce, department of treasury who all have different respondents and see it through their lens. you're correct. when the president created this office, the idea was to coordinate these and develop good policy that the president could put forth on behalf of the u.s. government. >> host: what do we make of the pentagon's much stronger statements? if you liken it to a cyber pearl harbor or, you know, when they talk about the millions of scans that are done of defense systems every day? >> guest: yeah. and i would say it's not necessarily only the defense systems that are scanned. we have private sector, other parts of the government including other governments. and what it is, we hear what they say, we take that into account, figure out what they can do to help, how much is it directly related to defense activities, how much of it goes to the fbi, department of justice, secret service, how much of it goes to homeland security. but this is part of an overall picture but not the whole picture. >> host: we alluded to the white house's legislative cybersecuri

the dow getting a boost from a new commerce department report on spending, members spent more on cars, furniture and gasoline an this june. sales rose half a percent last month the biggest increase in four months. analysts call it proof the economy was not as weak as some feared. investors reacting favorably to new measures to control the growing debt crisis in europe. more on that ahead in "studio b" and of course this is after a wild week at wall and broad. the dow fell like a brick on monday, bounced back on tuesday, sank on wednesday, and soared yesterday and the first time it has swung more than 400 points in either direction for four straight sessions. that is causing havoc on 401(k)'s. the market has exchanged $3 trillion since july 2nd. and more gerri with fox top story. with all the havoc going on, what are people doing with their money? >> yanking it out of stock funds, $14.4 billion the fourth rate in a row, and i have to tell you, it is only balanced by the amount of money going into money markets, mutual funds, those are safe funds considered very safe funds $47.5 billion

and the commerce department says the economy expand bid just .7%. and nine of the last 11 recessions have been policedded by growth of less than 1%. and today is women's equality day. the 91 anniversary of womens' right to vote. some working women marked this ocean by pushing for a new law to guarantee paid sick days and gathered signatures today to be delivered to senators boxer, feinstein, and bay area representatives. they say it will help all workers taking care of their health needs and those of the families. >> those people don't have health care. if they don't call in and come in to work, they could lose their job. just because they're home, sick or their kid is home, sick or come in sick and get you sick because they're serving your food this, is important for everyone. >> and women in 11 other cities joined in today's efforts. >> and coming up here today, the influence of the latino culture on modern american music. >>> a teenager whose backpack x/uéutlslsatlxlxlxlxlxlxlxlxlxlx >>> for three years a local teenager has been committed to help

the commerce department saying they broke down on fewer homes in july. new data coming in. for the latest on early trading in 15 minutes. >>> ups and downs there, but it's been stable for the past hour or so with traffic problem. sig-alert on peninsula that could mean big problems for drivers coming off the san mateo bridge to get to silicon valley. >> we'll check in with sue hall for the latest. >> good morning. the hot spot is san mateo. that sig-alert in effect. a live shot westbound. warning drivers that there is a problem. 92 westbound. ramp to southbound remains closed. debris spilled to 101. two right lanes, southbound 101. sig-alert in effect. two more hours. get you around this. we'll take a look at the map for alternate route. you can loop to freeway. or the dumbarton bridge. if you haven't gotten to the san mateo bridge that's the best route. sig-alert in effect, ramp from 101 to westbound 92 is shut down in san mateo. eric? >> all right, sue. thank you. >> less than two hours, second suspect will be in court who is accused of being involved in shooting of a 3-ye

cloud of uncertainty and extremely slow growth according to some new numbers released by the commerce department during the second quarter of the economy grew by just one point three percent making for eight tenths of a percent annual growth rate far less than the two point five percent pace that is needed to keep unemployment from rising. well i guess it's no wonder that even president obama's own former director of the national economic council says the u.s. appears extremely vulnerable to another recession i wanted three chance in fact so what do we make of all of us well dean baker is the co-director for the center for economic policy research and is here to serve some light on what all these factors means that the president celebrates another year hopefully maybe another year means a little wiser for the president in terms of how to better one for the economy absolutely absolutely let's talk about several things today or today two days after the president signs the debt ceiling raising the debt ceiling into law where do we stand i mean considering how this debate played out i feel like we s

the obama administration has a nooyi missions 0 policy that the commerce department reportedly says will cost 60,000 jobs. the administration says it will cost jobs. we'll investigate. a dangerous situation unfolding in california, this rail car burning and a propane tank at the risk of exploding. the latest on firefighters efforts to control the flames. plus the white house rushing to clarify comments by vice president joe biden in china about that country's one child policy. the fallout and the response ahead. >> your policy has been one which i fully understand, i'm not second-guessing, one child per family, the result being that you're in a position where one wage earner will be taking care of four retired people, not sustainable. [ male announcer ] this is coach parker... whose non-stop day starts with back pain... and a choice. take advil no and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪ hut! go! here it comes! right on the numbers! boom! get it! spin! oh, nice hands! chest bump. ugh! od job, man. nice! oky, halftime. now, t

. >> on a national level, the commerce department says that helping stocks dropped in july there downout 604,000 annually across the nation. that is about half the number that economists say are needed to keep a healthy market going. team coverage continues now and we go on a tour of a local home for sale to find out what you can get for your money. >> take a look at this house, the broker says that this three-bedroom to bathhouse is listed for $599,000 that is just about the medium price range for homes in the area. here is what you can get more money, this was built in 1948 with hardwood floors and a fireplace. a broker says that the kitchen that you can see your has new appliances but it is a little outdated and so is the bathroom. just a short drive away is this home in the richmond rain area, the two-story houses inside the gated community 1774 square feet this is the fireplace, and there is a walking closet and one of the three bedrooms. this is a little above the median price range listed at 369 $900. the broker for these home says that there are less in this price rate because

and the med of industry and security at the commerce department.oth of those posts were finally filled through recess appointments last year, but it's only gotten worse. this week white house officials said they need tim geithner to extend his term, in part because republicans would filibuster a vote on his replacement. you don't try to shut down one of the most important jobs on the president's economic 25e78. the solution is pretty simple -- senator reid and president obama should call the senate back in session now in this hot august summer. they should refuse to adjourn until there are votes on all these gnomes. they can use quorum calls, break the silent filibuster, and they can keep every member working seven days a week and refuse to adjourn unless it's for a real old-school recess, when recess appointments are on the table. just imagine the president speaking to the nation about making government work again instead of pleading for compromise with his tormenters, imagine him seizing the initiative, and imagine making a case for an american g

it's very concerned about the report that came out last week from the commerce department that there was no second quarter growth to speak of, almost no first quarter growth, the economy is dead in the water. and now with this new agreement over the debt limit, the government's hands are basically tied with regard to any additional jobs programs, any additional jobs stimulus. i think the market is saying -- and ideology aside, the market is speaking right now and saying, look, the problem -- the central problem of this economy is not the debt. the central problem with the economy is joblessness and low wages and lack of growth. >> howard, let's listen to what mitch mcconnell said on fox business. he was saying what he thought wall street wanted to hear. >> it's the template for the future. and the future, no president in the near future, maybe in the distant future, is going to be able to get the debt ceiling increase without a reigniting of the same discussion of how do we cut spending and get america headed in the right direction. i expect the next president will be asking us to ra

>>> also coming up, the commerce department will release its second estimate of second quarter gdp.look closely for any change in the pace of u.s. growth. we'll follow it all week on c money. back to you. >>> and a quick look at the top stories. moammar gadhafi is vowing to hold on to libya, even if it takes, quote, the last blood drops from man and woman. gunfire and explosions rocked in a fierce gun battle broke

. >>> this morning a commerce department reports consumers are feeling comfortable reaching for theirallets last month. consumer spending rebounded in july for the biggest increase in two years. it's likely to ease some worries the u.s. could fall back in a recession. personal income up slightly three tenths of a percent. >>> let's check in on wall street live look at the big board. very nice gains. even more than expected earlier this morning. dow jones up 179 points right now to 11,464. as you can see it's a little more than 1.5%. right now the nasdaq up 2%. the s & p up nearly 2%. the maker of hug guys disposable diapers is rolling out a new design at walmart. it's a camouflage look that will sell for 20% more than plain diapers. parents have proved they like diaper fashions. floral prints, ruffles, also popular. they usually don't show though. >> i know. >>> time now 6:52. very seriously how a attribute is about to begin in the bay area is focused on honoring 9/11 victims and this is just not any attribute. this one will travel cross country. >>> the man accused in january shootin