host of cbs nbc's "strategy session," david faber. host of cbs nbc's "strategy session," david faber. captions paid for by nbc-universal television >>> breaking news this morning. there are reports that former "news of the world "newspaper editor in britain, rebekah brooks, was arrested this morning in connection with the phone hacking and police bribery scandal in great britain. there are some calls for the justice department here in the united states to step up its investigation of parent company news corporation. meanwhile, in washington, the president this weekend tried to keep pressure on congress to reach an agreement on a deficit-cutting deal as the august 2nd deadline to raise the debt ceiling nears. >> i've put things on the table that are important to me and to democrats, and i expect republican leaders to do the same. >> as deliberations continue, there were no face-to-face talks this weekend, and house republicans are expected to vote tuesday on a series of measures to cut spending and balance the budget, although they don

and now david faber who has joined us from cnbc. with the impact of this so far and perhaps to come. give us a damage assessment if it all stopped today. and is there any telling where this goes? >> certainly there's no telling where it goes, as you heard stephanie report, brian. we are, of course, and many investors are focused on what happens now in the united states. when the fbi starts to issue subpoenas, if fact they do, who knows who they will find, if they're looking for hacking, the possibility economists that they'll find that it occurred in the u.s. rupert murdock has really never faced anything like it. for his long career, he was unable to dictate the course of events. and he did an about face this week. he began this week with his arm around rebecca brooks, the woman who ran the news international. and les henton, a man who brought his sandwiches when he was 15 years old, who has been there for 57 years also gone. james murdock, number three at the corporation. from here we simply don't know, but it is far from over, al

david faber, i do want to ask you about this breaking story we're talking about. this is the cover of "the week" magazine, and it has rupert murdoch literally on the hot seat with the question "is murdoch's media empire nearing its end?" the fact that rebekah brooks, editor of "news of the world" has reportedly been arrested for corruption and some other crimes, how serious is this at this point? >> well, it's the most serious crisis that murdoch has ever faced, certainly, in his long career. there's no doubt about that. and i think at the middle of last week, it started to sink in for him. prior to that, people close to murdoch, david, tell me that he perhaps did not appreciate the depth of anger that was taking place in the uk, and perhaps for the first time in his long career, he wasn't out in front of something, wasn't able to dictate the pace of events. that changed the middle of the week. the beginning of last week, he had his arm around rebekah brooks. end of the week, she was gone, along with his longtime lieutenant, les hinton. of course, you asked about

cnbc's david faber joins me now. there is no way to sugar coat the numbers. is the bottom line was the recession deeper than any of us thought? >> the recession was very, very deep. we had a very difficult time climbing out of it, no doubt. in fact, more difficult than many people had even anticipated given the numbers you mentioned, lester. job creation, as people know at home, is very, very slow. and consumer demand continues to be rather slow. in the first half of this year, especially the second quarter, the consumer was dealing with higher oil prices, not willing perhaps to spend as much given how much the price at the pump was going up. we're also in the middle of earnings season on wall street. while names like apple and amazon and google are making lots of money, the industrial economy, companies like illinois tool works, caterpillar, they're not saying particularly good things about the future. that gives us pause in terms of the second half of the year. >> we have been watching the stock market, some reaction, nervousness to the whole debt crisis. i

cnbc's david faber joins us in new york for some insight. david, this has now reached to one of murdoch's top deputies. what does this do to his damage control efforts. >> he's been trying to do damage control since the middle of last week in some ways when he finally started to distance himself from rebekah brooks who resigned, of course, a couple days later. the scandal does not appear to have crested yet. despite giving up the purchase of b sky b for what would have been a $12 billion deal for news corp., a huge important deal they wanted to complete in the uk and, of course, letting go of rebekah brooks and his long time lieutenant les hinton. >> on a personal level for murdoch and especially his son, are they in some sort of legal jeopardy? >> james murdoch has got to be the focus right now. because of course rebecca brooks and les hinton both having been gone, james murder okay runs news international. he has the number three position at the company, essentially, after chase carey, an executive who's not part of the family. that is the

next we have antony favor -- faber. is he here? ok, then we have jesus perez. >> could afternoon, supervisors. -- good afternoon, supervisors. i have been a resident of the area for the past seven years. i have been working with homeless families. i work with 30 or 40 immigrants, mostly chinese. i have been working in these communities for the past 15 years. fowe would like to help shelter the users know about their rights. later, i found a group that works with families to demand the city to get more affordable housing. as a person who has lived and worked in the neighborhood for the past 15 years, i think our to make a good candidate for the seat because i have been there as the neighborhood has changed. i know about what is going on with the residence. i have an important point of view. >> can you talk about some of your hopes with companies moving into mid market in terms of what ideas you have and how they can work with the south of market neighborhood? >> i have been working in south of market for the past 15 years. i have se

audrey jospeeph, anthyony faber, steve ernst, richard margarie, christine shafer, the next ten. thank you. >> good afternoon. audrey joseph, entertainment commission appointee. ia am an advocate to the other nine to five. the court -- importance of the economy of the entertainment industry but i am also here to speak to the seat. not to any candidate. the neighborhood resident of has to represent a neighborhood. i am particular the neighbors, the residence, and businesses. the board of supervisors and public have come down on the entertainment commission really hard for having too many people on at that have industry ties. whether it is our law enforcement representative whose wife has a restaurant or our cuurban planning representative who has a small interest in a nightclub, this commission has come a long way in eight years. we have been able to reform the nightlife community. it is an important industry for the city, for the economy of the city. we all know that the entertainment industry in and of itself employs more people per square foot than any other retail. in order to

sometimes the faber does not win. we will find out -- sometimes the favorite does not win. we will find out. i like primaries. that is where you find out who is ready for the finals and was ready for the big show and i think it will be a good process for our party to go through. >> michelle bachmann has not signed your plan yet? >> she well. >> is that a problem? >> i think she likes everything in the plan but to wants to include the obama care issue. i need to talk to her and see it we can get her on board. >> is there a difference between an incredible conservative and a strong conservative? >> i think they are the same thing. we need a candidate who can articulate the conservative values of ronald reagan. lower taxes, less spending, traditional values, and a candidate who could take those fundamental principles of the modern republican party and communicate them inarticulate way, that is the one i think wins. i think they will win the general election as well. >> who is best articulating those principles? >> we have eight candidates. they're doing a nice job. >> is it mi

been refusing to extradite a dutch war criminal sentenced in holland to life imprisonment class carl faber convicted of mass murder of concentration camp prisoners escaped prison in the one nine hundred fifty s. and fled to germany where he have tamed citizenship despite being a wartime not a collaborator his daniel bushell went in search of the man who is a living reminder all the fascist past those from the close carol for volunteered for the nazis in world war two he tortured victims before killing them a concentration camp in the villains with frank was held to have been systematically beefed up people in the night they have to dig their own graves and she was part of the firing squad which of them. a dutch court jailed for off to the war for twenty two murders he's suspected of many more but in one nine hundred fifty two he escaped to germany which let him go and gave him full german citizenship he was basically sure did are protected from extradition in the netherlands has applied time of the time to have returned to serve his sentence but germany doesn't extradite its citizens no ma

been refusing to extradite a dutch war criminal sentenced in holland to life imprisonment class kyle faber convicted of mass murder concentration camp prisoners escaped prison in the nineteen fifties and fled to germany where had trained citizenship despite being a wartime not a collaborator daniel bush all went in search of the man has a living remind all their freshest past does from the cloth carol for volunteered for the nazis in world war two he should victims before killing them a concentration camp in the novel and with frank was held to have been systematically beefed up people in the night they have to dig their own graves and she was part of the firing squad which charged them. jailed for the war for twenty two murders he suspected of me. anymore but in ninety fifty two he escaped to germany which lets him go and gave full german citizenship he was basically sure did are protected from extradition in the netherlands has applied time of the time to have returned to serve his sentence but germany doesn't extradite its citizens no matter how horrific the crime this is the man who ru

look at the alternatives of budget cuts versus taking care of home health, there's not much of the faber ability to that. guest: i am not as familiar with that service. that is generally what happens. when you get into details, everybody wants to cut spending but they don't want to cut anything that has to be caught. voters really believe that there is $4 trillion worth of waste out there. they think if we cut that we will be fine. will be fine. to get real spending cuts, you will have to cut real government programs and most of them are ones that voters don't want to see go. host: let me read this release -- host: a comment from twitter. guest: that is true. the bigger issue is those democrats sitting on their hands and not turning out. host: donald, a democratic collar. caller: [unintelligible] they talk about do not do anything. are you hearing me? think thedon't stimulus money has done anything. caller: the stimulus money that the president gave did not work. hear what i'm saying right now. hear what i'm saying right now. this could produce the projects that those monies went into. i

look at the alternatives of budget cuts versus taking care of home health, there's not much of the faberbility to that. guest: i am not as familiar with that service. that is generally what happens. when you get into details, everybody wants to cut spending but they don't want to cut anything that has to be caught. voters really believe that there is $4 trillion worth of waste out there. they think if we cut that we will be fine. will be fine. to get real spending cuts, you will have to cut real government programs and most of them are ones that voters don't want to see go. host: let me read this release -- host: a comment from twitter. guest: that is true. the bigger issue is those democrats sitting on their hands and not turning out. host: donald, a democratic collar. caller: [unintelligible] they talk about do not do anything. are you hearing me? think thedon't stimulus money has done anything. caller: the stimulus money that the president gave did not work. hear what i'm saying right now. hear what i'm saying right now. this could produce the projects that those monies went into. it

. >> all right -- >> david faber, unimpressed. welcome back to "morning joe."hn kasich talking about a crisis of leadership on "meet the press" yesterday. there may be new doubts about the current crop of potential white house leaders. so making front page news in "usa today," the top gop fund-raisers who funded john mccain's presidential run are reluctant to write checks for the current field of presidential candidates. joe, mika and willie all back tomorrow. joe and mika, at least. they sat down with pat buchanan and "the huffington post's" alex wagner to dissect the 2012 republican field. here's that conversation. >> chris christie, you know kris christie better than anybody else. you've hugged him longer than anybody on the set. >> very huggable. >> mika, knowing chris krchrist the way you do, do you think there's any way he gets dragged into this republican race? >> yes, i do, and i hope it doesn't happen. >> you think it does, you think it doesn't happen? when he's hugging you, is he whispering in your ear saying, if they just ask me nice? >> no, they're