i think we should be lucky to have people like logan and darren, to engage the community. we could have owners who do not listen and cause trouble. these guys are doing what i think is best for the neighborhood, and i hope you'll approved their applications. >> next speaker please. >> i am from 2827 octavia, and i wish to point out union street is not one long commercial strip mall. we have lived in the location for over 30 years and survived. it is a great thrill to live by union street. there are college football games, and it is a great guy to hang at a bar, but when people get tired of the noise, they get to go home, but where can we go? this hasn' 100 yards of busines, and sherman elementary school is a block away. the crab shack and bricks and are across the street from the shuddered metro theater. good no one lives there. ambient noise issue is not the same. the reason people complain about process and government regulations is the government levels the playing field. neighbors are no match for the developer. we have been opposing this since the front of the buildin

darren gersh has more. >> reporter: google is the place to go to find o about nascar's new winner or zsa zsa gabor's anniversary. but the company that organizes so much of the world's intellectual property has been under pressure from competitors like microsoft for intellectual property violations. which is why analysts say the deal to buy motorola mobility isn't about making handsets; it's about using motorola's 17,000-plus patents to protect the android operating system from legal challenges. >> clearly, they needed a bigger and deeper portfolio of patents and of patent assets to be able to help either defend them and their partners, or aggressively pursue those that are attacking them. >> reporter: google says it will continue to operate it's android mobile phone system as an open- system, meaning any manufacturer can use android for free. but other manufacturers may be less comfortable relying on android if google is also a direct competitor, which may help a long-time google nemesis. >> i think we will see much more momentum around that effort to embrace the new version of windo

washington bureau chief darren gersh joins us from washington with the latest. darren? >> reporter: tom, this is going the senate is expected to follow as soon as tonight or tomorrow. we're going down to the wire. congressional leaders spent most the day selling the debt limit package to the last holdouts. >> my goal is to get this bill passed, signed into law to solve this debt crisis, and help get the american people back to work. >> reporter: many democrats lashed out at the bill for cutting spending without raising revenues. a defensive white house tried to put the best face on an agreement that many democrats felt fell far short of the president's goals. >> in the end, compromise won out and an agreement we believe strongly is in the interest of the american people was achieved. >> reporter: the agreement now sets the stage for nonstop budget battles. in the next few months, lawmakers will begin to wrangle over where to find $756 billion in specific program cuts needed to meet the new budget caps. after that, attention will turn to a bipartisan "super committee" ch

i think this is a good opportunity to sell. >> tom: washington bureau chief darren gersh joins us. kind of a bearish comment there at the end of the is piece there. with the possibility of cuts, certainly not certain cuts as you reported. does it mean that the pent dpawn is going to have to spend -- pentagon is going to have spend smart or cutting deeper in the years ahead. >> they have to do a little bit of boarkts i -- of both, i mean. but this is a huge budget sore they have a lot of room -- so they have a lot of room to spend smarter. an f35 jet costs over $100 million. if instead they bought a few ta teens, those are around $40 million. that's one way you can still buy a lot of jets but spend a lot less. >> tom: one of your sources mentioned the droop draw down still scheduled in afghanistan. where will this play into and we will see a smaller military force ahead because of the debt deal. >> it looks like, that is larry corb who used to be an undersecretary at the pentagon. his belief is that we're going to go back to a pre 9/11 military. we're not going to go about invading

thanks for having me. >> susie: so let's pick up with darren just left off and talk about the fed. i think it's kind of interesting that here we've got this group of policy-makers looking at the same day dark coming up with different on collusions on what it means and not being able to agree on what to do next. what's your take on what came out of the fed today? >> there's clearly a lot of disagreement at the fed, and ben bernanke has probably purred them as far as he can right now. i think he would like to be more proactive. he would like to cut off the risk of a deeper downturn, something worse happening, but those think we can't do that much. interest rates are almost at zero, and quantitative easing didn't seem to do that much, and we're nervous about inflation. there's a lot of disagreement within the board. so i don't think you can see anything quick happening, nothing big out of the fed. also with all the outside anger about the last round of bond buying. >> susie: so you're right about quantitative easing inside and outside the fed. a lot of people are calling for another r

darren governorsh takes a closer look at what's at stake in this court battle. >> a cornerstone of the health >> reporter: a cornerstone of the health care reform law is the requirement that everyone in the country have health insurance. but the 11th circuit court in atlanta ruled forcing some individuals to buy coverage is unconstitutional. in its opinion the court says congress could not force people to buy "an expensive product from the time they are born until the time they die." critics of the law like the heritage foundation's brian walsh say the court was right to reign in the federal government. >> the federal government's been given specific power over interstate commerce. making a decision not to buy health insurance is not interstate commerce. that's stretching the bounds, that's stretching the conceptualization of what interstate commerce is beyond all recognition. >> reporter: but the circuit court left the rest of the health care reform law intact, and that could be a huge problem for health insurance providers. beginning in 2014 they will no longer be allowed to deny cov

darren gersh takes a look. >> reporter: consumers began this up and down market ride in a very bad mood. in july, the university of michigan's confidence reading showed consumers were expecting a recession. >> so they were pretty downbeat. a key to understanding that is that they had given up hope the government could or would do anything about the future economic situation. >> reporter: researchers say consumers generally view the stock market as an economic indicator, a signal of the outlook for hiring and pay raises. but with stocks whipsawing up and down, consumers might conclude the latest moves are a wall street problem, unconnected with their lives. and if the market decline is just a blip, consumers may shrug it off. >> in which case, consumers could weather this very well and it's not going to have a significant or prolonged impact. >> reporter: but the wild market ride, combined with the political drama over raising the debt ceiling, could have a greater impact abroad. investors around the world have new doubts about u.s. economic and political leadership, says economist fred

darren gersh reports. >> reporter: on average, the u.s. economy spends one year out of every six in recession. so the odds of a recession in a normal year are about one in six. but who thinks this is normal? >> it makes me wonder if we are not at a precipice. >> the government's inability to make decisions has not been good. >> i do think we are in for a very long and slow recovery. >> i don't think we are going to go back into a recession. i think we are going to skim it, but i don't think we are going to go back into it. >> reporter: the usual indicators of economic health-- employment, industrial production and consumer spending-- still point to slow growth. which is why most economists aren't ready to call a recession. >> we are of the view that the economy will grow slowly, but grow certainly over the next six to 12 months. >> reporter: the problem is that a slow-growing economy is more vulnerable and more likely to fall into recession. so most economists are increasing their odds of a recession to somewhere between one in four and on

darren gersh reports. >> reporter: let's start with small business. a poll released today by the new york federal reserve found one in four small businesses would like to have more credit, but they are too discouraged to apply for a new loan. and for good reason-- these businesses reported poor credit scores, no collateral, or falling sales. and that's something low interest rates won't fix, says chad moutray. moutray was director of economic research for the small business administration. >> interest rates are already low. they've been low since october 2008. so, low interest rates by themselves are not going to be enough to help them in this particular situation. >> reporter: moutray is now with the national association of manufacturers, and he says, for businesses that make things, low interest rates are a mixed blessing. lower rates in the u.s. help keep the dollar down, and that has helped exports rise this year, though the last two months have seen exports fall. on the other hand, manufacturers are worried about the rising cost of raw materials.

darren gersh, "nightly business report," washington. >> tom: while the f.a.a. shutdown drags on, the agency is losing almost $29 million a day in airline ticket taxes. and that could make for a big windfall for the nation's largest airlines. united, continental, delta and southwest have all raised ticket prices by 7.5% so that prices appear the same as when the tax was in effect. that means before this whole thing is solved when congress returns in september, the airlines could pocket almost $1 billion in extra revenues. what about the turbulence today in the new york stock exchange, i was a crazy ride. >> tom: it was, but we came in for a smooth landing, clearly smoother than the previous eight sessions, first up day in better than a week. so let's go ahead and roll with tonight's market focus. the major stock indices were able to end in the green for the first time in about a week. the s&p 500 bounced up a fraction after hitting year-to- date lows yesterday, breaking the bottom we saw in june and in april. key numbers to watch still. mastercard shares charged

darren gersh takes a look at what to expect from the fed. >> reporter: does this man look like a hero? oppenheimer funds krishna memani says many market pros believe the mild-mannered federal reserve chairman will once again turn into their economic savior. >> the markets are basically hoping for somebody to rescue them, and clearly the fed is the only entity, so they are hoping for something. whether they have any big options up their sleeve, i just don't see any. >> reporter: economist michele girard says the fed likely does not share the market's new fear of a double dip recession, and a quick change of view now by ben bernanke might be seen as a sign of panic. >> we have evidence that the consumer continued to save in july despite all the bad news. auto sales are up, the chain store sales were up-- so actually, the data themselves thus far has not supported this idea that we are getting dangerously close to a double dip. i think that gives the fed some reason to show some patience in here. certainly, they don't want to fall behind, but again, i don't think they want to be just rea

darren gersh reminds us of what we went through this week and takes a peek forward. >> reporter: if you like your market metaphors grim, this was your kind of week. >> this was definitely a week where you had a tremendous amount of fear and loathing in the trenches. >> reporter: the end of the washington melodrama did not help. instead, the last-minute deal to avert a debt default leaves some with a nagging suspicion lawmakers are not up to managing the nation's challenges. >> congress has now approved a compromise to reduce the deficit and avert a default that would have devastated our economy. >> reporter: monday's debt limit deal merely removed the threat of disaster, freeing investors to focus on the possibility of catastrophe. >> i don't think there is any good news. you got to give me a reason to buy stocks. >> reporter: reaons not to buy? italy and spain come to mind. what would be a dream summer vacation has turned into an investor's nightmare. the rescue package put together by european leaders in july is now viewed as inadequate. yesterday, the head of the european central ban

darren gersh explains the issues. >> reporter: there's no place like home to jump start the economy. usually housing leads the way out of recession, creating construction jobs and every other job tied to a home, from furniture making to finance. but housing is a long way from a leadership role now. >> we would normally expect to see sales maybe 400,000, 500,000 higher. we'd expect to see prices higher. what we are doing is, we are pulling out of a rather significant slump very slowly, much more slowly than would normally be the case. >> reporter: the key stats tell the rest of the story. home prices are down 32% from their peak in 2006. the total inventory of homes for sale, including the shadow inventory of homes in or near foreclosure, is 5.7 million-- down from the peak, but that will still take years to clear. >> when foreclosures start to ramp down to where they should be, which is well under 5%, i think you'll see prices start to really stabilize and start to recover. >> reporter: so far, efforts to modify mortgages and help clear the backlog have done little to help. the obama

darren gersh, "nightly business report," washington. >> tom: from big ideas to small business. small companies are the engine of u.s. economic growth responsible for as much as 75% of all new jobs. as we look at ways to fix the economy, we found one small business owner who has overcome challenges while benefiting from good timing. >> my dream has always been to own a dance studio. i decided to open this studio, the first of its kind in the country, to combine three different divisions in the entertainment industry-- dance, photography and a p.r. agency all in one. >> reporter: kristin weissman's studio-k offers a variety of dance classes to adults. these days, classes are packed. membership has grown from 20 people to more than a thousand in less than a year. that growth has sparked hiring. the studio started with a staff of 13, it now employs 32 people. but opening the studio was not an overnight success. >> it was really hard to get a bank to believe in my vision and what i wanted to do, especially because it was a first of its kind concept. it took two solid years of consis

darren gersh on what that might mean. >> reporter: with alan krueger by his side, the president laid out some of the agenda items he wants his new chief economist to work on, ideas the president says that are bipartisan. >> next week, i will be laying out a series of steps that congress can take immediately to put more money in the pockets of working families, middle class families, to make it easier for small businesses to hire people, to put construction crews to work rebuilding our nation's roads and railways and ports and all the other measures that can help to grow this economy. >> reporter: if he is confirmed by the senate, krueger's job will be developing policies that can get the entire economy moving again. but krueger is also one the nation's leading labor economists, and the center for american progress' heather boushey is counting on krueger to address some pressing needs. >> thinking about what we need to be doing for the unemployment insurance system and focusing on those long-term unemployed, probably thinking about what we need to do for younger workers or other worke

darren, how much does tiger earn these days?he course, veronica, he's at $656,000 this year, having played, now he's playing his 26th round of the year. when you compare that to 1996, that was the only other year that he made less than $1 million. you know, on a per round basis, he's making about $25,000 per round. i know, poor him. but you compare that to '96, it's about $24,000. right now at the pga championship he's 4 over par after 11 holes and if things don't turn around, and they can, he might not make the cut which means that he's not going to play in the fed ex championship, and it means -- i don't think -- he won't have any more rounds at least in this country this year. >> put this in perspective. how does he compare to others in the golf world? >> well, the leader right now on the pga tour at least is the number one golfer in the world, who has made more than $5 million. tiger does have endorsements. his endorsements are worth about $65 million a year but he recently lost tag heuer, the watch brand. he's lost at & t,

. >> reporter: darren gates of antioch. >> what's your favorite puzzle? >> two years ago unable to make his $3,000 monthly mortgage payment lost his phone to foreclosure. the company purchased it at auction and leased it back to him for $1,900 a month. now gates a contractor who also works for way point is about to buy his home for a second time. >> we are renting a home that we used to own and we're going to buy it back again. >> reporter: the price? less than half of what he paid for it the first time. >> we bought the house for 455 first time. i guess 6 years ago. now we are going to buy it, it for 198. >> reporter: there are a number of private companies that are doing this throughout the country and some financial experts see it as a solution to the glut of foreclosed homes, a glut that's only expected to get worse in the years to come, allen. >> you know, julie, i was thinking that lease-to-own, that whole market dried up when mortgages got so easy and cheap to come by. the lease-to-own disappeared. it's interesting to see it come back. >> reporter: