, etcetera. >> sus: i'm sure you heard it sa thate rlly don't need new regulation and structure we need sma regulators to enforce the rules we already have. what are your thouts on that? >> tre are anumber of res and regulations w don't have. a whe derivative ea that has gotten usn trouble and no ersight froms and i think cleawe need affective regulatorsand clearly we need need people w are trained and again this is aroblem and a challenge and oppounity to bring peoplento the regulatory agenes that artrained and know what they'r talking aut and eager to work throug that agency >> susie: what'sour analysis of the oba reform lan? is it the right sotion to reform thesystem? we say that it's very good start. a od start but wre ting things a little further and also counseling that the who systemic partof this and some conflicts of interest that are going require more study and we should not move too swiftly. >> susieso what's the one te ay message you would the oba administration ttake from your report? >> iope they take a goodhard look at me of the areas we've pointed out and take and see i

, etcetera. >> susie: i'm sure you heard it said that we really don't need new regulation and structure we need smart regulators to enforce the rules we already have. what are your thoughts on that? >> there are a number of rules and regulations we don't have. a whole d derivative area that s gotten us in trouble and no oversight from stc and i think clear we need affective regulators and clearly we need we need people who are trained and again this is a problem and a challenge and opportunity to bring people into the regulatory agencies that are trained and know what they're talking about and eager to work through that agency. >> susie: what's your analysis of the obama reform plan? is it the right solution to reform the system? >> we say that it's a very good start. a good start but we're taking things a little further and also counseling that the whole systemic part of this and some conflicts of interest that are going require more study and we should not move too swiftly. >> susie: so what's the one take away message you would the obama administration to take from your report? >> i

, etcetera. he's bn president fo six months. we've been around for 200- we've been around for a coue ceuries and haven't lve the things. i dothink thathey willnter into the agenda and if they aren't, ere's going to be a lot dissoluon people, black and white. >> charlie thank you. >> you're welcome. >> charlie: thank you david >> thanksor hing me. >> charlie: we'll be back. stay with us. armando iannucci here. his television program have anged the fe of british economy. he cated the day today, a terrible newprogram considered to be a precursor to e daily show. he created, wte and directed the thick of it, a sit call in the offe politics of government bureaucrats during the blare administration. now he rected a fm loosely based that show, it is called in the loop. it started peter cali; steven kugen andteven kambeli. ta a look. >> in the fd. e mountain is unforeseeable but then it is suddenlyno vy real and unfeseeable, thank you very much. >> he did not s unforeseeable. you had him say that but hei

s fault because they talk of a strong dollar, etcetera. but there seems to be a lot of conflicting pieces of information on that and it's hard to tell whether it's comments being tape out of context of longer term strategy. i think certainly the yuan is in a situation where the chinese economy is, i don't think, the big driver of the fight from recession. ting chinese economy is really a passenger on that. if demand builds elsewhere, then demand the for chinese goods will build. but i think the consumer demand has to be the starting point for that and i'm not sure that the currency movement has anything more than a -- you know, a follow on factor from the demand drive elsewhere. we're not seeing that pick up why he yet. until we do, then i think there will still be problems with all of the currencies. >> so briefly, currency pairs are in the ranges. >> there seems to be. st sterling/euro is no different to cable and no different to dollar/yen. >> david johnson, thank you for that, dealing director at halo financial. >>> coming up in the ne

consumer being part of usgdp, etcetera, etcetera. and as far as markets go, we are going to keep staemg along here. you mentioned best performance in the dow since 1996. the second quarter was the best quarter for all major markets in the world since 1999, the fourth quarter of '99. of course, we know what happened in 2000. and the u.s. unemployment rate is still rising, and that really contradicts the s&p. they're inversely related, so you can't have this continuing forever unless the u.s. economy gets better. >> what impact is it going to have for investors if rates are lower for longer here, mark? >> well, the markets will keep going up, but i'll tell you, i think china is about to clamp down. there's just a real asset bubble forming in china, as we speak. yesterday, a turn over in a shares was about $50 billion u.s. dollars. despite the fact that a-share market cap is about $3 trillion. shanghai property is the higher end, the same price of property as here in hong kong. that is unprecedented. so i think the chinese realize they

in some degree getting it out of the has of people, thunruly public with its passions a ignorance etcetera. in my ways, it was created to make ts volatile subject a secret and it succeeded.÷p >> sman: it succeeded and continued to for nearly a century. fmer fed vice-chairman alan blindr. >my first advice when i went there in '94m the feds press officer was, "i want to te you wdon't talk about the economy." i look at him and said, "what would you like mto talk abo?" >> solma but then again, says alice rivlin, who succeede blinder as vicchair, there's ways a risk of saying too much. >> i made speech in nebraska which w interpreted as talking dn the dollar. i certainly dn't think i had but somebody did and e dollar actually fell. t that was the exception. most of theime, i was really caref. >> solman: but e person's cauti can be another's shroud of secrecy. thus the debate overhe fed, its transparey, its accountability, debate on full display in coness at the ment. >> i just don'tee why there shouldn't be 100% rystal-clear transparency of eversingle function of the fed after t fact. >> becaus

but i don't buy that the emerging markets, etcetera, are going to be great. they lagged in this cycle. the u.s. lagged. world gdp, world trade down 20%. >> these are v-shaped recoveries for a very real reason. >> i'm going to step in and play referee. we have to go. danielle always a pleasure to talk to you. hope you'll come back very soon. >> a drop and then a pop? >> basically. a rough patch, fully invested by october. >> she makes a very good point. japan and europe are dead. that's not a reason to believe the world cannot continue to rally out of this thing and that's my point. >> great debate. time to see what's going on around the trading floor. we have an early pop on today's "fast money" for the taxpayer. goldman settles its t.a.r.p. warrants with the treasury for $1.1 billion. the dividends along with the redemption of the warrants gives the taxpayer an annualized return of 23% on its goldman investment. not bad, taxpayer. that was the word on the street. >>> it finally has some buzz but will the heat hit microsoft where it counts or is it a bust? a

we've heard about the head & shoulders pattern, etcetera, etcetera. we'll slowly wither away and it will be a slow, arduous climb higher. >> mark, if earnings have been better than expectations, but a lot of cautious guidance from companies because i think they are having a hard time seeing what's coming in the next few quarters. how are you taking what we've been hearing from these big companies and fitting that into your economic models? >> well, it looks like we've gone through a cycle where companies have overdone it in the way on the cost cutting and slashing inventories. and i think the best food is behind a lot of profits. nominal gdp probably declined in the second quarter as well as real gdp, of course. but normal gdp was likely to climb, which meant that revenues were continuing to fall. we're not seeing the economy deteriorate near the rate it did before. in the third quarter, we're looking for it to turn around. if companies are looking to get a better idea where the revenues are going, i don't think there's a lot of information out there

we've had a lot of the forward-looking indicators improve, the pmi, confidence indicators, etcetera, but what you need to see is final demand coming through. confidence is up a bit higher and that needs to translate into spending. when does that happen? i suspect the end of the first quarter. we've been in this environment before where everybody is promising everything happening three months from now. we have to be patient, i think. >> if we do get a good earnings season, though, daragh, and the stock market, if they can callie on the back of that, how much self-beating confidence might that sort of sent back into consumption and, you know, sort of wider investment spending? >> i think it's an absolutely critical component, if you look. it's a vicious cycle that we had on a down swing can equally play in a positive way. central banks are aware of that. one of the things they've been been trying to do is pin it down in the markets. they hope there is a positive feedback. it seems probable. but at the moment, as you can see, two weeks ago, we've seen equity markets decline. people are

rexam, maker of drink, etcetera, are saying that they are going to raise 334 million pounds after expenses in a rights issue. it's been speculated for quite some time. the impact on the business from the downturn has been worse than expected. bg group reporting second profit down. we are seeing the stock trading lower. overall, though, managing to get a bit of positive sentiment from elsewhere. higher overall. patricia, how about in germany? >> the volumes are keeping up, as well, at the moment, trading up 1.46%. and it is bayer outperforming. 4.3%, up a great set of numbers, a good outlook and a broker upgrade which is at the moment being celebrated by the market. deutsche is trying to recover from losses from yesterday. bmw and daimler, up about 2.5%. we expect revenues to have dropped by about 20%. kns and s.a.p. up about 1.7%. s.a.p. coming through with their own set of figures. the market is taking it positively that they raised their margin guidance. deutsche bores borse, down about 1.5%. there's a lot of momentum there, as well. over to warsaw now. >> thanks, patricia. here in warsa

with figures and we're going to head into the next week when we get the likes of deutsche bank, etcetera. but at the moment, the market is driven by technical sectors more than anything else. stephane, what is up in paris? >> the cac 40 is higher today. renault is going to step up its plan to produce electric motor vehicles in europe. a new factory will be dedicated to the production of batteries. renault has been confirmed the information, but they believe the french state would give financial support to the carmaker. peugeot, despite a report from its unit, froisha, is lower for the first time this year on the 33% of its decline for the revenues of prices. the company has decided to raise its cost savings target from 600 to 700 million euros. smi is trading higher on the back of texas instruments in the united states and still in the tech sector we've got soy tech, themaker for the semi conductor in this industry announced a 27% decline in sales for the second quarter and the stock is down more than 3% right now. now over to the asian market. let's cross to singapore with christine tan

it depends on the develop he, the location, the property, etcetera. as far as jpmorgan, they say our exposure to commercial real estate has been conservative all along. it's not a big problem for us, but it will be a big deal for the regional banks. that's some of what we got from jamie dimon. kind of what they did about goldman, a little worried about how far we've go the come so  fast. but i didn't detect any signs of real fear or concern or the ability to call the bottom in the economy from jpmorgan today. >> thank you very much, el nesto grande! >> the market kind of tiptoeing around. how should you proceed? joining us for the cnbc edge in stanford, connecticut, my colleague, chairman of holland and company, owner of the tunnel and in philly, if you're lucky, he gives himself the 6:00 to 8:00 a.m. shift. so if you're lucky. go through the tunnel at that hour, he might take your money. in philly, shawn clark at clark capital management. start with shawn. where are we headed here? head & shoulders was a bust? now we're going back up, or this is a h

what do you think about corporations now having their own army, navy, etcetera?est: the law has been written about this. there are several books about this -- a lot has been written about this. we have enlarged from a huge contractor presence in iraq and afghanistan, both for logistic'' and security. it is the new way that our executive brands -- branch and congress decided to conduct military operations abroad. if you are concerned about it, that is just the kind of thing that people should be doing oversight on at capitol hill, but not much of going on. host: mark the joins us from richmond, texas. caller: mr. r wheeler, thank you so much. good morning. host: good morning, martha. sorry. audit, i am very concerned that there is no deliberation in the process -- caller: i am very concerned that there is no deliberation in the process. when you see them spend close to $1 trillion and a deliberate for less than eight hours on it, it is just scary. and the things you are saying i believe and i applaud you for coming forward and talking about this and, the dead sea.

and that will provide them with an incentive to achieve those goals and continue to lower-cost, etcetera. to your point, you know, those interests, if they choose to come in and -- to fight this proposal, they can do so at their own peril. this is not anything new. certainly health care has been fought before by special interest. but nothing as big as this is more worth fighting for. we accept this challenge and this fight and we are going to be engaged to what august along with our president to make sure that on behalf of the american people we provide them with the kind of coverage and the kind of cost savings that they need. host: well, congressman, involved with the president of the spirit of the headline says nancy pelosi one might give up yet. the health care votes are still possible -- the headline. and in -- a story from the politico come house leadership issued an e-mail, health care events for august district work period, to help you, meaning members, host a successful health-care reform of then. providing you with easy to use materials to explain and sell the legislation. plan

what do you think about corporations now having their own army, navy, etcetera? guest: the law has been written about this. there are several books about this -- a lot has been written about this. we have enlarged from a huge contractor presence in iraq and afghanistan, both for logistic'' and security. it is the new way that our executive brands -- branch and congress decided to conduct military operations abroad. if you are concerned about it, that is just the kind of thing that people should be doing oversight on at capitol hill, but not much of going on. host: mark the joins us from richmond, texas. caller: mr. r wheeler, thank you so much. good morning. host: good morning, martha. sorry. audit, i am very concerned that there is no deliberation in the process -- caller: i am very concerned that there is no deliberation in the process. when you see them spend close to $1 trillion and a deliberate for less than eight hours on it, it is just scary. and the things you are saying i believe and i applaud you for coming forward and talking about this and, the dead s

valuation of the warrant is not a straightforward thing and you have to go through a bunch of models, etceteraand their different ways to value it. that is kind of the controversy that is going on right now, is how this treasury and these banks come up with the prices so that the tax. can get the maximum return possible and the cop put out a report last week concerning that process. host: we hope many of you watched the hearings that were on yesterday and the day before that look at the report on the status of the tarp program and out of that have questions. we'll go to phone lines in a few minutes. do remember, you consent and e- mail at journal@c-span.org or twitter @ c-spanwj. during that testimony of your book boss, reprinted the total -- during the testimony of your boss, he regularly talked about the total. a lot more than the sum of the parts that we often hear. can you talk about what is in that number? guest: let me start with tarp itself, but initially enacted as a $700 billion program through the use of other government funds and private funds over the 12 tarp programs. it now figur

and that will provide them with an incentive to achieve those goals and continue to lower-cost, etcetera. to your point, you know, those interests, if they choose to come in and -- to fight this proposal, they can do so at their own peril. this is not anything new. certainly health care has been fought before by special interest. but nothing as big as this is more worth fighting for. we accept this challenge and this fight and we are going to be engaged to what august along with our president to make sure that on behalf of the american people we provide them with the kind of coverage and the kind of cost savings that they need. host: well, congressman, involved with the president of the spirit of the headline says nancy pelosi one might give up yet. the health care votes are still possible -- the headline. and in -- a story from the politico come house leadership issued an e-mail, health care events for august district work period, to help you, meaning members, host a successful health-care reform of then. providing you with easy to use materials to explain and sell the legislation. plan

. >> does that mean you're looking at phone records, etcetera, and trying to find out who accessed thatstem? >> yes. >> it's now being reported on another network, so if you don't mind i'll ask again but could you confirm the dea is involved in this investigation? >> i cannot. i will not speak for another federal agency. if i knew i most assuredly would not talk about a case they're running. >> sheriff, do we know what marina -- >> let me be specific. i was asked not to release any of that information. >> the alert, when you came out earlier, you said we're looking for this woman, would that have gone out to local authorities in an area several hours -- >> it goes out over the police net, if you will. all right? and we're interconnected, internetted, so that bulletin was basically everywhere. >> would that have gone out at the same time you were making the announcement? >> yes, it was released at the same time. >> who was she with? >> i'm not at liberty to address that issue. >> did the police have some reason to believe she was a victim? >> again, sir, i was not there. i have not spoke

the was the champion of yosemite etcetera.then i tried to bring them into the story. >> where you put it? >> the notebooks, yellow legal pads, etc.. i had a devil's tower by its. i would arrange it in different ways. i am terribly influenced by my environment, where i am at. the places i went to is where i oncwanted to write about. everything i could get, i tried to include it. >> you are finished with your manuscript. how do you ensure that it is accurate? >> it is hard. someone emails you are ready letter and it asks you to include something in the next edition. i sit chapters to all of the people. i sent one person the entire manuscript. i sent my florida chapters to one man in the panel region. he had some guys look into it to make sure it was accurate. one person is an ox -- expert in the building dams. one person is an expert on the west. i would ask them for feedback. everybody i sent a chapter to found something wrong. sometimes they found five of them. sometimes it was a word change.

most of the data that we've looked at is based on domestic economic trends in housing, employment, etcetera but we've also seen that our economy has become increasingly dependant on a broader, global economy. and in particular, developing countries have become responsible for 75% of growth this decade and over 60% of growth in u.s. ex ports. so my question is, how do you see trends and risks in the recovery and developing countries impacting our own recovery here at home going back and forth? >> well, emerging market economies took a very big hit because they -- there was a lot of capital flowing out of those countries and many of them are very dependent on exports and trade sell a lot. so those economies did have very serious declines late last year and early this year. but the news is generally good. most emerging market economies in asia, latin america and other parts of the world have bounced back to some extent and i think that's very positive. it won't have a major impact in the u.s. because we don't export a great deal to those countries. but it will contribute to a broader, more sta