particularly because of the lack of the quantity of staff at fannie mae and freddie mac in florida. nty of loan modification specialists law firms and other distressed asset managers in my district and throughout florida that are ready to assist fannie with the vastly increased caseload of foreclosures, modification and refinancing yet they are having trouble being approved by freddie and fannie because of redgate. my concern is that foreclosures are a great because there isn't enough staff to do proper loan modifications and we also understand it is unacceptable and we all know it is acceptable for families to lose their homes for foreclosure or i would just like to point out as i said that we've had some conversations and certainly recommend and ask that as we work through this difficult time period that we have the staff and support to get these modifications working through the process. and look forward to hearing the comment and look forward to working with all of our members and representatives to congress this. thank you, mr. chairman. >> thank you very much. and now we'll hea

. >> susie: thregulator in charge of fannie mae and fddie mac consers the future of the mogage giants. we hear from t federal housing finance authority's mes lockrt. >> pau while retailers have been promoting "back to hool" sales for ov a month, the buying bonanzaasn't materializ. the latest retail repos show consumers are still lding tight to their wallets. microsoft ys "windows 7" is ready to go. how does it compare with t competition and is iworth the upgre. our tech gu has a preview. i'm paul kangas. >>usie: and i'm susie gharib. this i"nightly business report" for thursday, august. "nightly business rert" is made ssible by: this program was me possible byontributions to your pbs station from viewe like you. thank u. >> susie: good eveni, everyone more upbeat projection on th jomarket from two wall street powerhouse goldman sachand deutsche bank sharply vised their forecasts on the number of joblost american businesses cut july, a day before the goverent releases its rept. deutsche bk now expects 150,000 jobs were st last month. goman is expecting 250,000. over the past ght months

those people who wanted to take fannie mae and freddie mac down a pair i thought that fannie mae andfreddie mac ever so powerful that they would never have been taken down and, on the other hand, whenever those who thought they were so apparent of then they would be the cash cow for ever more affordable housing and what it's hearing and it is never house of cards. that collapse for the very model that was the directive which was that a growth stock model. we can get this capital for the market place and give them propose what ever it takes. i think everybody was applied to the reality behind that. it was worrying party is over symbols and i think i'm missing that yes and they were not the was to permit the private market securities but they created that market place in many ways by finding the aaa of that early on and made in that market go and then everybody else. so i think that if the debate have been honest and 1995i had a conversation with alan greenspan about huge portfolios and the impact that they have and he was very concerned about the federal home loan banks but not at all

and plus, remember fannie mae and freddie mac? meet their cousin jenny, the latest subprime mortgage lender and possible bailout considered e-candidate. gearing up for the 2010 sen have yo yous-- census. the journal editorial report starts right now. welcome to the journal editorial report, i'm paul gigot. claims fast and furious that the democrat health care reform plan, what critics are calling death panels for seniors and children with birth defects. sarah palin got in on the act recently writing on her facebook page, saying the american i know and love is not one where my parents or my baby with down's syndrome will have to stand in front of a death panel so his bureaucrats can decide based on a subjective judgment of their level of productivity in society whether they are worthy of health care. what they said this week. >> the rumor circulating around lately is this idea that somehow the house of representatives voted for death panels that will basically pull the plug on grandma because we've decided that we don't-- it's too

wall street wrote this stuff and fannie mae guaranteed it.however, again, this couldn't have happened if the federal reserve hadn't done what it did to create that excess liquidity. >> just let you know fannie mae bought 20% of sub-prime mortgages. >> they bought them, however those are mortgages i think that they kept on their books. they kept this stuff-- >> mr. madrick is badger in my witness. [laughter] >> mr. moore, mr. forbes is not even sweating so sit down. [laughter] >> quickly, quickly steve, mr. forbes, the federal reserve has lowered interest rates before. the late 1990's we had a boom, the early 90's. if i could, still had the memory i had ten years ago, i could find a couple of other incidents as. why didn't we have a collapse in the depression them? >> it is all a matter of proportion. the federal reserve lowered interest rates in the 1990's but not in the skeel that they did in 2000. we did not have over a year for example of 1% of federal funds. that was a brand new thing. that was artificial, nothing to do with the market so

and we've talked about government and fannie mae. fannie mae contributed to this problem, but are they the central issue? not remotely. just look at the numbers, and i know and i bring up numbers people just say, oh, i didn't like knows numbers. let me tell you about a few other numbers. just look at the numbers in purchasers and the community reinvestment numbers i'm surprised that didn't come up had almost nothing to do with this crisis. three republican appointees stated as much after they actually did the research. i would commend the jury, i would commend my opponent, i would commend the gallery and, judge, i don't have to bother to commend you because i know you did this, do some research into these issues. ask yourself why infrastructure in america is rated a d. this is america. rated a d by the civil engineers. ask yourself why it is so darned expensive to go to college in america? does that make sense to you? ask yourself why public education is unequal. you probably have. you may have some answers. we would probably disagre

we will be monitoring fannie mae.y are asking the treasury for $10.4 billion in capital investment. they have lost $100 billion over the past two years. behind the problem is the hot potato bad debts it holds. here is a way to get the harvard look without paying $49,000 a year in tuition. you'll be able to buy a harvard university clothes. they're putting out a line of clothing. it is cheaper than the tuition. the shirts are going for $160. the sports coats will cost you $495. that is your business news. live at bloomberg headquarters in new york, i am linda bell. back over to you. have a great weekend. >> thank you. it sounds like everybody is scrambling to earn a dollar. 6:37. 63 degrees. >> we are hearing new details this morning about the capture of the american journalists who were held in north korea. the family members are speaking out on how they are adjusting back home. >> happy friday. currently 64 degrees. it is refreshing. we will talk about the weekend.d gecko: uh, you wanted to see me sir? boss: come on

it was about fannie mae and freddie mac.he single biggest factor in the increase in the deficit was the war in iraq. much more than the economic recovery bill. what we have is a continued excess military spending. there are other areas that i wanted to cut back. as far as fannie mae and freddie mac, -- these are things that cause the deficit. in 2003, i said i did not think they were in crisis. i didn't think there was a crisis in lehman brothers or others. i invite you to read a book of john mccain adviser. it was in the wall street journal a week ago. the bush administration decided that their way to help low income people was to greatly increase mortgages for lower income people. i saw it -- i thought that was a mistake. we could build rental housing for them. we will give up the paper to show you the quotes. in 2005, i joined an effort by the republican chairman of the financial services committee to pass a bill to regulate fannie mae and freddie mac. the republicans in the house passed the bill. >> [inaudible] >> are yo

ones that need fannie mae and freddie mac guidelines. fannie mae and freddie mac would lose billions of toxic assets. they back 40 percent of all u.s. home loans together. marion barry is under the spotlight again, or questions he outspent his colleagues on contracts. and ex-girlfriend filed and then dropped stalking charges. pete once hired thhe once hired. >> because he hired her, it includes an investigation on council spending on outside contracts. >> [unintelligible] >> he once said donna whites by to --brighthaupt was qualified. there was an email record that said he would try to support her financially if he could not get a contract. there's a report ithat he spent $252,000. he has very few documents to show what the city got for its money. a spokesperson for him since the email between him and donna josie was closely supervising his work. he wrote "i was greatly disturbed by our meeting on tuesday it because your project is behind schedule. oded tells her she should follow instructions without long debates. keeper cell phone on a

. >>> unemployment looms, retail sales slide, and the bailout beat goes on for fannie mae. your early morning business headlines are straight ahead. >>> plus, it may be so bad the studio won't let critics see it. still, those same critics expect it to be the number one film this weekend. >>> lee makes his philly debut. a ball girl takes a pill. and muhammad ali makes an appearance at yankees stadium. you're watching "early today." >>> good morning and welcome back to "early today," everyone. i'm dan kloeffler. and here are some of your top headlines this morning. pakistani intelligence says that country's taliban chief was killed in a cia missile strike in south waziristan, pakistan. he helped plan suicide attacks against pakistani officials and is suspected of involvement in the killing of the country's former prime minister bhutto. >>> in north carolina, ex mistress of john edwards was spotted entering a federal courthouse where a grand jury was meeting to discuss. edwards denies he is the father of hunter's baby. >>> john hughes, writer and director of several teen flick

yes, hermoses was barney's boyfriend at the time and work for fannie mae and had a job with fannie maetrue. there is no intellectual dishonesty. that is a fact. to say that barney it was supportive of fannie mae or objected to legislation that would impact fannie mae because of that is ludicrous. during that time that bar a was dating hermoses, the republicans controlled congress, not the democrats. barney was not a committee chairman. he was not in the senate and did not have the ability of a filibuster. host: congressman frank is a representative not a senator. caller: i wanted to say that i watch c-span a few days ago when barney frank coast of the town hall meeting in his district. i thought he handled it very well. as far as that lady about her being on another planet, she had a picture of obama with a hitler mustache. i can understand why he would find that reference very offensive because he was trying to help health care reform and for her to link him with hitler is completely bizarre. i don't think he yelled at her. i think that kind of ridiculous position she took with the pr

. >>> and when we come back, overhauling fannie mae and freddie mac. the idea would be to give them a clean slate in the wake of the mortgage meltdown. >>> and the former congressman caught with cash in his freezer. william jefferson pays the price for selling his office. hi, may i help you? lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? are you going to buy online? yes! discount! isn't getting discounts great? yes! yeah, i got carried away. helping you save money -- now, that's progressive. call or click today. was about 30 seconds after i woke up. still not smoking! seven days. nicorette takes just enough of the ege off the need. i still want to light up, bu i don't have to. (announcer) .you can do it. nicorette can help. good. ( laughs ) ( gasps ) do you hear thatsound?, they're popping! - really?! listen. - ( laughs ) ahhhhh... mmm. where'd the sound go? even when they've stoped popping, is it in your tummy? they haven't stopped working. now, every box of kellogg's® rie krispies0 c

they are far lower than freddie mac and fannie mae at 2.8%, 3.7%.those levels are even lower than the prime market at 4.7%, the home market at 7.2%. although fannie mae and freddie mac have a combined 56% share in the mortgages outstanding, they account for 22% of serious delinquency. on the other hand, those private-label securities i mentioned earlier, which are 13% of the total mortgages, account for 42% of serious delinquency. as these high levels of delinquencies trigger downgrades in the aaa private-label securities, presented significant challenge for investors, fannie mae and freddie mac and the federal home loan banks were big investors in these securities. currently, 65% of the value of private-label securities in the federal home list, federal home loan banks system have been downgraded to-watch. this compares to 20% at year end. the combined fannie mae and freddie mac private-label securities portfolio, about $167 billion, are much worse, with 84% currently downgraded. as you can see, 68% are junk below investment grade. unlike the banks

. >>> mortgage finance giant, fannie mae, says it needs billions more in government aid. the company is asking for nearly $11 million, after posting a quarterly loss of nearly $15 billion. the government has spent about $85 billion to keep both fannie mae and sibling, freddie mac, in business. >>> rupert murdoch says it is time to stop giving away the news online. the chairman of newscorp says his company will start charging for access to its newspaper websites, including "the wall street journal," within the next year. experts say the company could end up losing money, by driving readers away. >>> in today's "usa today" tech reportthe first iphone application to make turn-by-turn directions. "usa today's" ed baig took it for a ride. and said there were lots of potholes. >> i had issues with the sound. sometimes the voice didn't kick in at all. sometimes the directions came a little bit too late. overall the routing was inper size. but the biggest problem is that you can't have the ap running when the phone rings. overall, right now, i'm going to take a pass. >> and you c

. >>> and wh we come back, overuling fannie mae and freddie mac. the idea would be to give them a clean slate in the wake of mortgage mtdown. >>> and the former congressman caught with cash in his freezer. william jefferson pays the p >>> stocks are rising overseas this morning after wall street took a breather from its summer rally. tokyo's nikkei average jumped 1.3% today. hong kong's hang seng is higher. in london, the ftse opened higher. wall street starts the day with the dow at 9280, after slipping 39 points yesterday. the nasdaq fell 18 points to close at 1993. >>> the obama administration is considering one of the biggest overhauls to the housing finance system since the great depression. the president's top economic advisers are meeting today to determine the future of fannie mae and freddie mac. one proposal would strip the companies of their bad debts. >>> president obama has announced a major investment in clean energy technology for cars. he unveiled $2.4 billion in grants from the stimulus package to use to create advanced batteries a

the study we are sending to congress today is fannie mae and freddie mac single-family guaranteed fees in 2007 and 2008. internet for congress asked us to do an annual study analysis of the guaranteed fees that fannie and freddie charge to protect buyers of the mortgage securities that are issued with their names on them. and they asked us in particular to look at the revenues and costs associated with the guarantees, factors considered in setting the fees, the level of fees and changes from the previous year, product and risk breakdowns, and differences in fees between the major loan originators and smaller institutions. in a nutshell, what we found is that fannie and freddie charge higher fees in 2008 than in 2007. that they charged more for mortgages that have higher risk characteristics, but that the increase in fees associated with those higher risk mortgages did not fully account for all of the expected costs that they anticipated using their models. and finally, that larger lenders, the major loan originators in the country paid smaller fees than smaller institutions paid. our f

. >>> coming up, james faber back inside those numbers from fannie mae. hey, it was about a year ago that some say the crisis truly began. a lot of people say it was not lehman. it was the way the government dealt with fannie and freddie. undefeated professional boxer floyd "money" mayweather has the fastest hands boxing has ever seen. so i've come to this ring to see who's faster... on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can browse the web faster, email business plans faster. all on the go. i'm bill kurtis and i'm faster than floyd mayweather. (announcer) switch to the nation's fastest 3g network and get the at&t laptopconnect card for free. >>> you're watching cnbc's "squawk on the street." >> welcome back. aig may have found some firl footing, perhaps a stabilization, and perhaps a capital structure that will not require the u.s. government to put any more money into that ailing insurer. not the case, however, for another ward of the state. that being fannie mae which will soon approach its first birthday as a stat

fannie mae, freddie mac and citigroup doing fairly well. a 50% move up and fannie mae you see with the huge volume. 100 million shares on the exchanges. 20% of the volume at the new york stock exchange. regional bank have been real weak here. dick came out with a note saying he likes most of the market in financials except for regional banks. bernstein came out and downgraded saying it's less attractive because they moved to the upside. the big mover on the upside and the financials and the energy stocks and the coal stocks and jpmorgan upgraded. that's doing well up 2, 3, our fore%. the oil near $75 and seen energy stocks basically outperform the sectors with the financials. back to you. straight ahead, the market is hot and we will talk options strategies. what are the best plays in the dog days of summer. tips you need to know about coming up. >> here's what else is on the menu. >> i'm jim goldman in the silicon valley bureau. apple continues to hum along even as the business suffers. this company's flag ship 5th avenue store is doing li

a reorganization of fannie mae and freddie mac. -- the government is weighing a reorganization of fannie mae and freddie mac. no decision has been made to go with the good bank, bad bank issue. that is your business news. live at bloomberg headquarters in new york, i am linda bell. doug and alison, back to you. >> thank you very much for that. 72 degrees. the news continues. >> as the virginia race for governor heats up, one candidate is scheduled to get some presidential support. >> hundreds of documents are released and the show marion barry for outspends his colleagues on the council when it comes to outside contacts. >> live in the weather center, we are watching some showers >> live in the weather center, we are watching some showers pursue the every head. every bite. every gallon. every shoe. every book. every cereal. well, maybe not every cereal. but every stem. every stitch. every tune. every toy. pretty much everything you buy can help your savings account grow because keep the change from bank of america rounds up every d

. >>> the white house is considering splitting up fannie mae and freddie mac. this deal would place the company's billions in so-called toxic assets into a new federal corporation, leaving them with a clean slate. the proposal is said to be in the early stage. >>> brand new developments in the summer long saga of marion barry. >> this time is hundreds of pages of e-mails about the work his former girlfriend was doing for his office. matt brock has more on this. good morning. >> follow me on this. we know marion barry was arrested back on july 4, accused of stalking his ex-girlfriend. those charges have been dropped. he hired his ex-girlfriend to work on a contract. now this morning his office spent $225,000 on outside contracts over two years. that compared to his next competitor on the council, kwame brown, who spent about $45,000 during the same time. he spent more money. that is under a lot of scrutiny, as is this e-mail between him and his girlfriend. marion barry has said his former girlfriend donna watts- brighthaupt was well qualified for the contract hi

fannie mae and freddie mac did many things but if you read the book i think i tried to explain that there was in fact, the absence from the market bridges that allowed wall street to move and and cause some problems that we're still suffering from rather from their irresponsibility from offering subprime mortgages was tried to gain back the market share that they lost to wall street i do point* the finger squarely at wall street and i do think wall street there are many culprits common many, many culprits but wall street is chief among them and their lack of leadership among so many of the firm's and a lack of understanding of the risk that was being taken on buy so many of the firm's again i focus on maryland very tough but very smart man who ran the firm with an iron fist but ultimately was forced to resign in october 2007. he is an interesting story but it was not even close frankly the risk that was undertaken by the firm that he ran program may have been kept from him in part mortgages, mortgage related products by far became the largest engine of growth it was the largest -- largest

you ask me about fannie mae and freddie mac.verything that is now going on in the united states government that people describe as a bailout, aig, banks, general motors, chrysler, was asked for by the bush administration. [laughter] laughter i guess is the only way to do it. iwith regard to fannie mae and freddie mac, i did support them for affordable rental housing. in the early part of 2000, george bush pushed them into doing more purchase of mortgages for low-income people. in 2003 ihoti did not think thed a problem. and in 2005, -- by the way, during the time for 1995 to 2006 the republicans ran the congress. i was not dictated what happened or did not happen. the republicans did not pass anything until 2005. in 2005 the house republicans passed a bill. george bush did not like the bill the house republicans passed. the senate republicans killed it. nothing happens. i did not have the power to do anything until january 2007. in march of 2007 we passed the bill to regulate fannie mae and freddie mac that the bush administrati

for example, that fannie mae and freddie mac caused the economic crisis or caused the credit crisis. visited something that is been bandied about certainly in political circles. and it is really not a big fannie mae and freddie mac at many wrong things but ultimately, if you read the book, i think i try and explain that it was in fact their absence from the market for mortgages that allow wall street to move in and overlake ao many of the problems that we currently are still suffering from. rather than their irresponsibility in terms of offering subprime mortgages and the like. what fannie and freddie did was try to gain back market share that they ultimately had lost to wall street. as you can judge from the title, of course, i dewpoint the finger squarely at wall street in a lot of ways. i do think wall street, there are many culprits. mini mini culprit, but wall street is i think chief amongst them. a lack of leadship amongst so many of the firms and their leaders. a lack of understanding of the risk that was being taken on by so many of these firms. again, as i said, i focus on m

the government is weighing a reorganization of fannie mae and freddie mac. they may put it in a government supported corporation. no decision has been made yet on whether to go through with the good bank-bad bank option. stock futures are pretty quiet indicating a slightly higher open. the government july jobs report comes out tomorrow. that is business news. reporting for wbal-tv. >> see you back here at 6:15. if you are in the market for new technology, now may be the best time to buy. >> the computer section at best buy was busy this afternoon. people checking at the latest laptops. this year as the budgets are shrinking, so are their computers. >> we have some low-priced laptops. >> computers with a whole new name and price tag call them the netbooks. >> they are an expensive, small and light and can do everything that the notebook computers can do. >> they do not come with eight cd or dvd player. times are tough. the good things about electronics, the longer you wait, the more you get for your money. >> the memory is three times faster than what i have

we start with bad news for fannie mae.gage giant plans to tap $11 billion in new government aid after posting another massive quarterly loss. the mounting price for the rescue of fannie mae and freddie mac is exceeded only by the cost of bailing out aig. >>> jessica returns on monday, but she has even more money- saving tips that she left that we can use in to the weekend. having a car can be a real on the budget. fortunately if you use it for work you may lebeto abtake e soof tothe ofexpenses off your taxes. this can mean a big savings in your bill. in order to qualify for a car e pense deductths ere haduto abeirect and proveable connection between the use of your car aand your . ssne commuting doesn't count. tracking and deducting the miles you drfoive bur ssssnesi can add up to $100sa ne inngs come tax time. for more money-saving tips go to wusa9.com and click on "living $mart." >>> if you like saving with a few thousand of your closest friends. the world's longest yard sale runs from cincinnati, ohio all the way to gad

, citigroup, but now fannie mae and freddie mac, i've been negative, but now i worry about it a whole lot less than i used to. i'm not so sure that any of this is really uninformed speculation. first, it's not like the sec is saying we have to halt trading these stocks. it's not like that. it's not like anyone from the company is saying, look, our business is worthless. we should be delisted. what those caveats, i don't think we can say that buying in these stocks is uninformed speculation. i don't think we can do that, although i hear it all day. in fact, there was a fabulous piece by a guy named john hempten. he is the chief investment officer of bronty capital. it's all about how fannie and freddy, two stocks that i have said may be worthless, or at least fannie and freddie preferred could be worth a lot. the arguments were well-reasoned. housing bottoming, the portfolios aren't nearly in as much trouble as people think. they might be able to pay the money back to the government and then have something left for the preferred, maybe even the common. to me, it seemed like informed sp

fannie mae and freddie mac, f fannie shot up more than 40%. speculators are betting the government won't close or dismantle them. >>> we'll see how today's troubles in china affect wall street. their markets plummeted as much as 5.5% on fears the chinese economy is recovering too slowly. >>> an updated report on consumer confidence will be sure to be out as well as new homes sold. >>> president obama expected to announce he's nominating ben bernanke to a second term as federal reserve chairman. bernanke is expected to be with the president when that announcement is made. >>> auto dealers have stacks of paperwork for the cash for clunkers program. the department's website crashed. the government extended the deadline for paperwork today but warned it could be extended furthe because its website still was having some problems. >>> finally, factory workers in france are stripping down to save their jobs. at least that's their hope anyway. more than 200 will bare it all in hopes of selling enough of these calendars to send the whole crew to their

. >> susie: james lockha, the former heaof the agency that supervised fannie mae and freddie mac, is now turnaround speciast. he is joining ross and compan the new york firm known for restructuringsnd buyouts. untitwo weeks ago, lockhart oversaw fannie and freie as they emerged from counting scandals and guided them as ey becameovernment-chartered companies. >> paul: the food and drug administration is laching its centeror tobacco products. toda the agency announced that doctor lawrence deyt will head that n division. he was t chief public health officer for veterans affai, deyton's deparent will monitor tobacco advertisg and promotions andocus on stopping the illegalales of cigarett and other tobacco products to kids. euu >> susie: in the money fil tonight so thoughts on boosng the nation's savings rate. here jason zweig, personal finance columnist at thewall street journ." >> ithe economy is to recover, saving will have to come easier. the personal savinrate has official risen to around 5% after hovering close to ze for years. but, accordi to the federal serve, only 57% of american

. >>> good news for struggling local mortgage giant fannie mae and freddie mac. they aren't penny stocks anymore. freddie mac hit 25 cents in september. now it is 1.69 after reporting the first profitable quarter in two years. fannie mae also rose as much as 50% to a dollar a share. >>> big banks are making money hand over fist on fees. when you bounce a check the industry will collect $38.5 billion in overdraft fees this year. the average fee is up to $26 this year and larger banks are 5. ehe $3 r chnkking r account to id yeci an overline line of credit and you will draw on those funds if your checking goes to zero and you won't bounce a check. remember to repay from your new deposits in to your checking account. no more bounced check fees. >> please, they are high, aren't they? >> yes. >>> time to check on maryland's weather. we go to kim martucci. >> good morning. every morning at this time at 6:08 we focus on maryland's weather. virginia you are coming up in the next 20 minutes. so let's get started. the satellite-radar loop. thunderstorms are held at bay but

lockhart has been on the job for three years and has pressed for stricter oversight of fannie mae and freddie mac, which is the fha regulates. >> thanks, melissa. and the important thing here is the market rally's srt of on hold as we can weigh weak data putting a little bit of a damper on recovery talk. let's talk about it with two experts. david pearl, co-chief investment officer at epoch. clark winter at sk capital partners. 50% increase from the s&p 500 from the march bottom. we are discounting a rather robust recovery here. the argument of the bears is demand is not going to be there for that robust recovery. where do you stand on that? >> that's what we would say-s you've seen the market discounting a robust recovery. when you have a 50% rally in a short period of time, it's really a valuation increase. when you have a high valuation, you have high expectations of future earnings growth. there's a lot of room for disappointment from here. and the big problem is we've seen inventory restocking, easy compares. so good numbers but not demand. demand in the u.s., consumer, consumer'

everyone else had to do it as well what you were freddie mac, fannie mae or the lender on the corner. >> it is a slippery slope, isn't it? >> i think we are starting to see, as eric brought up the point, the government is getting involved in a lot of things. healthcare, pay. where does it end? as soon as this monday or tuesday when it comes out the pay czar is gone? no, they will find something else for him to do and tobaccoy's point, toby talked about it is not a janitor. but the highend people are making is who generates the economy so they deserve every dollar they get. >> if there was a suit czar i think you would be doing well because you are looking stylish. brenda: i was going to let pat talk but toby took his time. you will get more time next segment. >> that never happens. brenda: all right, guys. he is back but someone here says if you bet on michael vick's comeback you will be a loser. the real comeback ready to the real comeback ready to return big to help raise awareness for the men and women who have suffered traumatic injuries in the war on terror. they need our help. t

it buying almost a the debt issued byhe government- controlled mortgag giants fannie mae and freddie mac. congress is good to overhaul the government-sponsod enterprises or g.e.s for short. at's a fact that is not lost onhe markets. >>t's going to be difficult for the fed to stop proding that liquidity f housing finance unl we and uil private investors understa thfuture of the g.s.e.s. >> reporter: the fed hasold some o its mortgage deb to invests but still carri half arillion dollars on i books. which prests a political problem. doug elliott studies the financial crisis forhe brkings institution. he expes anyone makingis orer living from housing will not be happy to see the fed leave the maet. and will make that clear to membs of congress. >> if sebody stops by and leaves you $100 on your doorstep eve week, you may not needhe money but you want theto keep doing it. reporter: one thing is certain. th federal resve won't be able to leave the housing market until investorsregain their faith in mortgagdebt. and that y still appears a long way away. darren gersh,ight lee business report,

. >> paul: what about these huge percentage gains in some of the fpblz, like citigroup, fannie mae, a.i.g, freddie mac? is this speculation at its peak or what? >> the so-called headless horse man. those i do believe are overvalued, considering the delusion that has already considered and will consider with those stocks. if i'm going to be in financials i'd much rather be in the smaller ones. >> paul: so you'd stay clear of these? >> i really would. >> paul: now if the economy is recovering, will interest rates sooning heading higher? >> soon, i don't think so, but in a year or so, i think they probably will. the voracious demand that the government's gog have for raising money to finance these deficits may tend to push the interest rates higher. >> paul: back in march, you said the obama economic stimulus seemed to be working. how about now? >> i think it is helping. i think it's helping in two ways. it's helping financially to a degree, and i think it's helped psychologically. there's much less panic among the investing public. >> paul: you recommend four stocks to buy and one to sell s

i owned fannie mae for actionsorders.com my cherry trabl trust and the thesis started falling apart. didn't come up with a new reason to own it. i told it in the 60s. i didn't care that it had lost me money. it would have destroyed me. i just didn't want to buy and hold. and i was right. i mean, that stock made its way down. i mean, single digits. fannie mae was way too painful to own given my fed rant heard around the world when it was clear that foreclosures were mounting. >> buy, buy, buy! >> when it was clear that people thought the stocks -- thought that housing this stabilized. >> buy, buy, buy! >> but then my thesis changed, because housing isn't stabilized. >> sell, sell, sell! >> the thesis changes you go. i never feel bad taking losses when the story changed. cramer's defensive game plan number four, dividends. ♪ hallelujah limit losses. as long as they are relatively safe. this is something i talk about in "stay mad for life." that's my personal finance book for those who say, jim, why don't you ever write about a 401(k), why don't you write about i.r.a.? that's what "stay

aig, fannie mae, freddie mac also on the rise. we'll discuss whether there is still an appetite for these risky stocks. this is "the call." we are cnbc. >> stocks trading negative to find better than expected results on both gdp and jobless claims. and the fdic reporting the number of problem banks rose sharply in the second quarter. home builders also lower, after toll brothers reported a widening second quarter loss. right now, the s&p is also to the down side. and the nasdaq is not doing too much better, an over 1% drop for the s&p 500. and the nasdaq is only getting 1995, below 2000, a drop of 1.5%. we have hampton pearson in washtd, bob pisani with the market reaction. but hampton, let's begin with you. >> well, first, here at the fdic, its second quarter banking profile tells us that by the end of june, its list of so-called problem banks was at a 15-year high, some 416 institutions with combined assets of just under $300 billion. fdi-insured banks had a $3.7 billion aggregate net loss in the second quarter, two out of three

a home affordable, a program for fannie mae and freddie mac clients. an fha or va loan you can do the streamline. they look at credit scores but go a little lower than most fannie mae products and allow you to lower your interest rate. the program is there but think a lot of people that are paying the bills are hearing about the people getting the benefits. it's a little true but if you have good credit you can still benefit today. >> carl delmont is here every monday. if you have a question for us, e-mail carl at morningshow@wmar.com. he'll answer it on monday. thank you for coming in. welcome back from vacation. >> thank you. >>> also welcome back, justin berk. >> thank you very much. 9:47. isn't that nice? she had the wedding and she's welcoming us back. >> sweet. >> aw. >> happy to be together again. happy to be away from the beach? rough currents, few people out there perhaps trying to check out the high surf. still dealing with cloudy skies, a big storm rolled through. dale said earlier there were 10-foot seas over the weekend. still strong rip c

and so they could become fannie mae's and freddie mac's of the future. >> yes. dr. meltzer. >> i like your emphasis on realism. >> i'm new here so i'm sure i'll get over it. >> try hard not to. the realism to me says what would the systemic risk regulator do with a tier 1 holding companies? in my opinion it would be fannie mae and freddie mac ripped large. >> that would be my concern. >> these are going to be banks or institutions that are going to have branches all over the country. every member will feel an obligation to say, we can't let that hapn in our district and in our districts. and so too big to fail will really become an even greater problem now. how can you limit the risks that bankers, some bankers are going to take? make them bear the risk. >> thank you very much, i yield back the balance of my time. >> the gentleman from alabama mr. bachus, is up for five minute >> thank you, mr. chairman. mr. meyer, you described the proposed changes as incremental to the federal reserve. >> right. >> reading the treasury proposal on what they say about it -- they sa

or it could be government sponsored enterprise like fannie mae and freddie mac where it has a lifelineto taxpayers. gets into all sort of trouble, bailed out and drags out the private sector competition because of government advantages. >> we seem to be coming to a little bit more clear cut debate. between do we get a continuation of private medical care in the united states or do we go the socialized medical system? do we spend $1 trillion or don't we spend $1 trillion? it seems to come down a funnel like that. it comes back to arriving like that due to forces in play. the so-called progressives want a public option. the strongest constituencies are the union and the head of the public employee union said two things democrats will be out of office in november if they don't enact the public option. i took it as implication that the unions might pull back some of the support if the democrats don't push it through. next september when they come back they'll be at the same watering hole arguing if there will be a federal insurance program that takes over insurance people have now. >> stil

the governor already spent about $85 million to keep fannie mae and freddie mac going openp >>> rupert murdoch wants to start charging for online newspapers. it could be a risky bet that drives away readers. >>> coming up for "good morning america," is it take fof your friends to get multiple flu shots? stay tuned. i'm jeremy hubbard. >>> all right. 6:23 money we're still waiting for images on the big water main break in manhattan. >> down in lower manhattan, evacuated because of the flooding. we're looking at conditions that might make you think about the pool. as we head into this weekend, check it out. 85, a gorgeous day. we may have clouds for a couple of hours midday. otherwise, two degree guarantee, still 60s. the chance of an evening or overnight thunder shower. that is the leading edge of the real hot edge. high temperatures should generally be in the middle 90s. this will be pushing that air conditioning unit. overnight lows staying in the lower 70s. we'll try to break that heat wave in the latter part of the week. >>> justin, as we look at the outer loop of liberty road, traf

its index shows pricesn homes with mortgages guanteed by fannie mae and freddie m rose one half a pcentage point from may to june. bothroups say price gains are being driven by first-ti buyersnd bargain hunters snapping up foreosures. >> susie: as paul mentned, a new reportrom the conference board today shows that consurs looking ead six months are much more confidenabout their own nancial fortunes. that should be good newsor retailers, because peopl concerned about their financ tend not spend. scott gurvey explas.an >> reporter: whethe economy hit the ids the retail sector fell o a cliff from which it has yet to recover. pele without a job or afraid of losing one just d't spend. maridriscoll of standard and or's says retailers have scrambled to adjust. >>n the last year we've watched retailerslow down their ste expansion, reduce eir inventory investment, sk theimerchandise assortment. whe they still have higher priced items available forheir shoppers, they've ewed their assortment to wer price points. >> rorter: wall street anticipating lower earnings r some and actualosses for otherspuni