dollar assets, probably fannie mae and freddie mac securities u.s. treasuries and buying the chinese juan to buy the currency, they are consuming their financial reserves doing that. >> rose: i get the impression that you are here because of your strong feelings about fannie mae and freddie mac and not to talk about pershing square. >> i'm happy to talk about pershing square. >> rose: we wanted to focus on this. where is the herbalife deal. >> so since i was on your show which was quite awhile while ago when the topic came up. >> rose: explain to them what the deal is. >> the short story here is, we have a -- >> no pun intended. >> bethany is a well-known among other things to are poxing the enron fraud. >> rose: an amazing book. >> and we have a short position in herbalife, a new york stock exchange company that we believe is operating a pyramid scheme now for 35 years which is kind of an incredible fact. a company that as a result of our publicity around the company, shining a spotlight on the business, numerous public presentations we've made, the

by the way, elizabeth warren now changing her mind and her sign for fannie mae, freddie mac.h sides of the aisle. this is serious story that impacts everything and why some say we had the massive housing crash that led to the great recession. we'll be right back [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ our passion to make it real. you can't breathed. through your nose. suddenly, you're a mouthbreather. a mouthbreather! how can anyone sleep like that? well, just put on a breathe right strip and pow! it instantly opens your nose up to 38% more than cold medicine alone. so you can breathe and sleep. shut your mouth and say goodnight mouthbreathers. breathe right charles: fannie mae and freddie mac getting support from a very unlikely person, senator elizabeth warren, the dem

said the most important thing you can do is fix fannie mae freddie mac.reany: these companies widely perceived as democratic companies. but it was actually under the clinton administration larry summers first of them on an official way. meaning you begin a criticize him publicly in question the u.s. government's ties. it became a huge political brouhaha. i think it is fascinating that it was a democratic treasury secretary. charlie: what you going to do? bill: solution is to restore fannie and freddie do what they were 30 years ago, very safe businesses. why is that important? the u.s. economy is the only finance market the world where you can borrow money at a 30 year fixed rate. to borrow 80% of the night of a home. you can borrow money at something less than 4% on a first mortgage on a $250,000 home, it really enables the dream of owning a home. it is a very good way to save for retirement. that is what we need to go back to. when we get back there, was happened, they took risks they should not have been taking. the management teams in the past the ver

douglas duncan, fannie mae chief economist, joining us in studio.oomberg market day," we are watching the markets move higher. we will tell you about the top members of the day when "bloomberg market day," continues. ♪ matt: welcome back to the "bloomberg market day." i'm matt miller with mark crumpton. mark: julie hyman is a look at the markets. the cyclical it's going on with the major averages with a rally that's been underway since the start of trading. we were off yesterday, but china's rally overnight seems to have spurred a rally in the u.s.. not regrouping last weeks losses, but still making up for much of friday's loss on the major averages. one of the groups i wanted to focus on that's doing well today is the biotech group. if you look at the biotech index, we are seeing a rally there of about 2.3%. just for context, take a look at my terminal. we sought nearly enter a bear market from highs to lows of the year. the pullback here is almost 19%. much deeper than what we saw in the major averages. now the decline from peak to trough or peak

lauren: massachusetts senator elizabeth warren changing her mind on fannie mae and freddie mac. senator warren will not support a bill that would shut down the two agencies and replace them with the system. her decision comes from the realization the legislation would hurt low-income borrowers by stacking them with higher fees. civil rights groups including the naacp has cited the shareholders trying to keep them alive. drink till i was watching the chrysler stock yesterday. they sense the autoworkers may be making progress on a four-year contract with via chrysler. ua debbie is extending that the automaker in an hour by hour basis. the old contract expired yesterday at noon. the agreement would be used as a template for talks at the rival's general voters and supposedly they go to the strongest of the three to make the deal. separately, ford has reached a new supply deal with alcoa to the top-selling f. 150 and the auto industry's first vehicle all aluminum body. also a big boost for following aluminum prices in china. a big buyer. lauren: ford has a management constant competi

charlie: fannie mae and freddie mac were formed by congress to support the american dream of owning a decades, their influence made for wall street greed. they were at the center of the wall street crisis. seven years, they remain in limbo. book, the rise and fall of what might happen next, it is ground."haky

how we should structure it is a difficult subject. >> i think it was 2003, franklin rains, ceo of fannie mae hauled before congress, sort of berated, everyone in congress standing up, we need to make fannie and freddie smaller, they're too powerful. all they did was grow and we know what happened, then they collapsed. they're growing again -- >> they have grown since the financial crisis. the idea was reduce the presence of the government in the housing market. instead, it's bigger than it's ever been. >> i will try to defend them a little bit, or at least congress. are they smarter? >> to allow these two companies to operate with no capital? i don't think it's a smart decision. >> you mentioned it in the answer to the first question. the treasury lifeline. does that protect taxpayers? because third quarter of 2008 i think the loss was about $20 billion for one quarter of just fannie mae, not even freddie mac. >> that's a great question, does it protect taxpayers. here is the issue, they have paid back much more than they took from taxpayers. they have paid about $240 billion but they haven'

we haven't reformed fannie mae and freddie mac.e haven't reformed a single one of those 25 agencies. we created dodd frank and a vast new government bureaucracy called the consumer financial protection bureau. by statute, congress has no oversight. think about that. so they are out there, this vast bureaucracy, going through credit reports, looking for fraud. they checked over 700 million credit reports. of all of us. what's the consequence of it? it's of vital importance to small business. 10 wall street banks have become five. even bigger, even more powerful. helped writehey the bill. and hundreds if not thousands of community banks have gone out of business because they can't handle the weight of government. and community banks are where small businesses go to get their loans. and community banks are where a family goes to get it started. and community banks are folding. , is ityou ask anybody easier or harder to get a small business loan today, much harder. is it easier or harder for a credit worthy person to get a mortgage tod

we haven't reformed fannie mae and freddie mac.ven't reformed a single one of those 25 agencies. we created dodd frank and a vast new government bureaucracy called the consumer financial protection bureau. by statute, congress has no oversight. think about that. so they are out there, this vast bureaucracy, going through credit reports, looking for fraud. they checked over 700 million credit reports. of all of us. what's the consequence of it? it's of vital importance to small business. 10 wall street banks have become five. even bigger, even more powerful. by the way, they helped write the bill. and hundreds if not thousands of community banks have gone out of business because they can't handle the weight of government. and community banks are where small businesses go to get their loans. and community banks are where a family goes to get it started. and community banks are folding. and if you ask anybody, is it easier or harder to get a small business loan today, much harder. is it easier or harder for a credit worthy person to g

fannie mae and freddie mac have programs where you can put down less than 4%. >> but less than 4% down, you're more a renter than an owner and you don't mind walking away. >> i think where we got trouble last time is we didn't document their income and we qualified people for too much house. it wasn't necessarily how much down payment they had, it was the ability to pay and make those mortgage payments and we did the stated income loans. those aren't in the marketplace today. you have to document all your income and all your assets. today if we get qualified up front you know how much home you can afford before you go shopping. >> casey, thank you so much. it's a pleasure having you in here and i look forward to seeing what you built. >> absolutely. i look forward to serving the american public this way. >>> it's the one number you need to know and we are not talking about thumbs. how to find it and what it can do for you. >>> it's a hot business. >>> take a look at how the stock market ended the week. >>> here's a look at what's making news as we head into a new week "on the money." i

buyers is access to credit, which is easing slightly according to a new lender sentiment report from fannie mae. but make no mistake, credit is still tight. and even a small rate hike could knock an estimated 7% of mortgage applicants out of the running. not because they wouldn't be able to afford the monthly payments, but because they wouldn't meet the required debt to income ratio. >> it doesn't matter how low the interest rate, if you can't get a mortgage, you can't get a mortgage. >> reporter: what matters most is a strong economy. and rising rates would be a sign of that. >>> today we learned that builders broke ground on fewer homes last month. the commerce department reports that housing starts fell 3% in august and construction activity slowed sharply in the northeast and the midwest. the decline, according to some, could be a sign that the housing recovery will continue but it will be bumpy. >>> positive news on the labor market. the number of americans filing new applications for unemployment benefits fell last week. lowest level in eight weeks. initial claims for jobless benefits dro

related to all of the bailouts of fanny and freddie and all of the guarantees they have behind fannie maea it is not counted among the national debt. it is a government sponsored enterprise or government sponsored entity. >>t- thank yousp anthony from reason. next will alexis finally break up with gov? will you? the cold truth is, (coughing) you can't work from home when you're sick. you need real relief. alka-seltzer plus day cold & flu has three cold symptom fighters to relieve your tough symptoms. stay unstoppable. (truck horn) alka-seltzer plus. suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid. ♪ ♪ the beautiful sound of customers making the most of th power, wi-fi, and streaming entertainment. that's... seize the journey friendly. ♪ so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my dr

the chinese also holds significant interest in freddie may desk fannie mae and freddie mac. -- fannie mae and freddie mac. ofy hold significant amounts municipal bonds and corporate debt. a total amount of money that the u.s. owes to china is larger than the $1.3 trillion. --t: mark from washington dc from washington, d.c. caller: i want to know how much of the financial free market embraced?s china has that contributed to the easy credit environment china had in the last few years leading up to this crisis? i wanted to make a quick comment . i remember hearing the strength of the american economy was that we had different regions doing different things. that was the strength of the american economy when one part was working, the other was being laid off. there was a diversity. , there isr or see now not that kind of diverse economic mechanism. we have a lot of the financial -- as you just said, a large financial pot in one country and one type of operation. i think going forward that is a bit scary. i will take your answer off the line. guest: with regard to your question about the f

matter are a bunch of crooks, frauds, and now banks especially those who got burned say the old fannie mae or lehman brothers. healthy skepticism is one thing. a total unwillingness to believe in anything positive is something else entirely. if you're going to own stocks, you need to be willing to extend some measure of the trust. we've had a massive amount of consolidation in host industries. airlines, rental cars, foods, telecommunications, entertainment, perhaps these executives are buying stock because they hear the footsteps. maybe they've been contacted by some other company and turned that company down. spurt overtures happen all the time. if executives expect they may be next, could be a healthy and honest reason to buy. of course they have to disclose anything that's a serious bid, but a lot of times just get a phone call and say, no, bye. well, they do that because the company's worth more than they thought. maybe they think the company can be broken up like the old tyco or fortune brands gannett. maybe the stock's run just a bit but they don't think the run is over because they

he's the chief economist at fannie mae. >> good morning. glad to be here.have been doing a survey of a thousand households a month for 4.5 years so we were trying to boil all of that sentiment about housing down into one indicator to give people a collective view looking forward about how people are feeling about the housing market so as you have watched over the last four years the gradual improvement in housing, this index prefigured that. one of the questions we ask is is it a good time to sell a house. we saw that portion which is one of the key questions in this jump about 20 points. so we put our release out saying housing is now on a firm track. so it's that kind of thinking forward. >> a lot of times consumer sentiment is a lagging indicator. what do you think this is? >> we asked them what do you expect your mechanic to be 12 months out? what do you expect interest rates to do 12 months out. what do you expect house prices to do 12 months out and also what has happened in your income in the last 12 months so get a measure of the base from which the

. >> fannie mae says, 30 year fixed mortgage rates should be 4.3% at the end of 2016.6 months out a made changing one-quarter of% that it was today. welcome to subway, what can i make for you? how about our new flavor-packed italian hero? with three authentic italian deli meats; spiced capicola, a cracked- pepper-seasoned mortadella and spicy genoa salami. enjoy it while it's here! subway. eat fresh. ♪ ♪ it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. >> this just in to the kron 4 newsroom. >> pam:breaking news. >> pam:cal fire battling yet homes tonight. and the sweltering conditions are not helping. >> pam:grant lodes is here now with new information on the wildfire that is raging near the town of jackson.grant? >> pam:another spare the air alert combined with car exhaust. will mean unhealthy ozone levels, >> grant: homes are threatened and you can see why. right now, d.c.--police of were reached after it starting over an hour ago

we haven't reformed fannie mae and freddie mac.we haven't reformed a single one of those 25 agencies. we've created dodd frank, new set of rules and regs and the consumer financial production bureau. by statute, congress has no oversight. think about that. so, they are out there, this vast bureaucracy, going through credit reports, looking for fraud. they check over 700 million credit reports. of all of us. what's the consequence of us that's of vital importance to small business? ten wall street banks have become five. even bigger. even more powerful, wall street banks and by the way, they helped write the bill. and hundreds, if not thoughs of community banks have gone out of business because they can't handle the weight of government and community banks are where small businesses go to get their loans and community banks are where a family goes to get its start. and community banks are folding. and if you ask anybody and i bet i could ask you, is it easier or harder to get a small business loan today, much harder. is it easier or

at one point we had lehman brothers, aig, fannie mae. this is a little more isolated, but long-term capital was a little more isolated. >> today, by the way, the seventh anniversary of the house voting down tarp. >> that's a bad day. >> the worst decline in history up to that point. here is you, jim, cited this morning in "usa today" -- jim cramer of cnbc's "mad money" has been calling the point negative. the wife said with twitter, you put the pictures to rest, and the dogs will put hand hand kerr chiefs -- >> what i'm saying is i want everyone to buy everything including magnum hunter. >> make sure they understand sarcasm. >> it's sarcasm. let me give you some facts. now everything is getting bearish. 600 of the s&p 1500 are now down -- 117 are now down 15%. i've been saying it's getting bearish out there. the problem is when you see those numbers, it's not getting bearish. people are starting to talk about, is it a bear market? these are the stats, it's been a bear market for a long time. >> all i know is when i start talking about fi

fannie mae and freddie mac are still going strong.all street banks have become even bigger wall street banks, better connected. thousands of community banks are going out of business. to get the economy going again, we have to recognize where economic growth and job creation come from. it is a nine-personal real estate firm, the family-old auto body shop that my husband started. it is the small business, the ew business. those businesses create two thirds of the new jobs. they employ half the people and we are crushing them. that is not hyperbole. for the first time in u.s. history, we are destroying new usinesses. than we are creating. we are tangling people's lives up in webs of dependence. we don't ask them to move forward with their lives. we encourage people to settle in. we ignore their god-given gifts. we have to cut this government down to size and hold it accountable. [applause] that means we have got to know where our money is being spent. we have go to zero-based budgeting so we know where your money is being spent. there h

federal government participation in the economy, we often forget that we still have fannie mae and freddie mac, and that's after 2008, the 3 out of 4 houses in the united states are indirectly or owned or guaranteed by the u.s. government. the u.s. economy is in some way more socialists than we realized and whether we should go further in that direction or retract and have a more capitalists model is way beyond my brief at this point. >> from arizona, here is -- i think it's race from arizona. >> caller: yes, that's correct. good morning, buddy. my question is, i believe -- you can probably clear it up for me -- is that roths are controlling -- i am talking about roth child and build aburger. a lot of the representatives are on the payroll, so to speak, and i can't think of a better word, and they are not representing the american people. thank you. >> i am not sure, sir, i understand the implication of your question. are you suggesting the roth which i wills -- could you sharpen your question? >> he is no longer with us. >> oh. >> let's go to ivan from new jersey, the democrat's line. goo

takes all the uncertainty out and get rid of the savings & loan bubble, the derivitive bubble, the fannie maeubble, grow the rate of supply at gdp, you will take all the uncertainty out and see ceo's go crazy investing and implementing and growing the business. and i'm not running for office. there's not enough kevlar to keep me there. neil: there are a lot of good ideas. >> follow me on twitter and i'll give you more ideas. >> i want the research on my name and see what people are saying. >>> you heard about the syrian refugee crisis, a lot goes back to russia. we're going to explain and more to the point, we're going to explain why we're not doing anything in response. there's a reason for that, too. after this. . neil: i want to show you what's going on in miami beach. border patrol is responding to a maritime smuggling event, responding to information about 12 undocumented aliens who apparently came over in that boat. we don't know their nationalities, but all of this comes at a time illegal immigration is a worldwide event, particularly out of syria, where millions are trying go anywhere

i think, though, that there would be two fannie mae seize in the bottom side briefs 0, at least one and one that i want to suggest might be possible for peeling off a fifth vote going the other way and the first and obvious one and i think this appears prominently in justice kagan's dissent in the previous case is to try to appeal to justice scalia in particular that these are public employees after all and he has long felt that first amendment rights of public employees are diminished in particular when the state has an interest in efficiency in the workplace. you should be able to control the first amendment activities of one's employees. i think the prospect of getting his vote on that theory depends, however, on convincing him or making a plausible case -- i think there is one to be made -- that these sorts of agency arrangements are intensed to make the workplace more efficient. they're used in certain labor contexts for many years, the big three in building trades and the like and employers tend to think this is good for business and i think that is probably the -- the somewhat lo

account, through square cash, another pop lift making headlines senator warren changinging tune on fannie maereddie mac will no longer support legislation that shuts down this giant, on to markets futures are mixed this morning we were excepting a lower opening an hour ago look how things changed if last hour a couple catalysts from markets, investors to digital react to 8:30 a.m. eastern we've got retail sales number coming out 3/106 a percent gain the expectation at 9:15 a.m. eastern an industrial production report, we know that the industrial side of the economy has been weakening, a watch on journal morning is worse time to facestocks highlighting the market volatility is more costly for strael investors who often tried after the market eepz, ninthier in a row cowboys to be heard forbes list was nfl most valuable enfranchises worth apparently estimated 4 billion dollars, followed by new england patriots you washington redskins new york giants 49ers. >> crude oil futures, below 45 dollars a barrel, still phil flynn in chicago with the latest. >> coming back a moment after sell-off we are f

the clerk: a bill to suspend the compensation on the executive officers of freddie mac and fannie mae and for other purposes. the presiding officer: is there objection to proceeding to the measure? without objection. mr. mcconnell: i ask unanimous consent the bill be read a third time and passed and the motion to reconsider be laid upon the table. the presiding officer: without objection. mr. mcconnell: i ask unanimous consent the judiciary committee be discharged from further consideration of s. res. 245 and the senate proceed to its immediate consideration. the presiding officer: the clerk will report. the clerk: the senate resolution 245 designating the week for professional legals work week. the presiding officer: is there objection? the senate will proceed to the measure. mr. mcconnell: i ask unanimous consent the resolution be grat, the preamble be agreed to and the motions to reconsider be made on the table with no intervening action or debate. the presiding officer: without objection. mr. mcconnell: i ask unanimous consent the senate proceed to en bloc consideration of the fol