one bright spot today was fed- ex. it turned in these earnings before the opening bell this morning. it's c.e.o. called the current weak economy temporary. the company was confident enough that its fiscal 2012 outlook came in better than expected. shares of fed-ex battled the weak market all dayending with a 2.6% gain. volume more than doubled. shares fell hard earlier this month, but they continue in this trading range between 85 and 95. they have been in that range since november. transportation analyst at dahlman rose, jason seidl, sees the fed-ex optimism spreading. >> there's a very good possibility that as japan rebuilds, we're going to see a surge in demand, maybe in the back half of this year and the beginning of 2012. >> tom: here's the exchange- traded fund following the dow transportation index. here it is. while down a fraction today, it remains in an up-trend, up 24% over the past year. the technology sector was the biggest drag on the broad market, led by software firm adobe systems, this drop of more tha

then, fed chair ben bernanke holds a news briefing. we'll also see quarterly results from fedex and carmax. also tomorrow, hilary kramer is our "street critique" guest. email your questions to streetcritique@nbr.com. >> tom: the biggest changes to cigarette warning labels in a generation were announced by the government today. they include graphic images of diseased lungs, rotted teeth, and a cadaver. just over 20% of adults are smokers. the director of the center for tobacco products, dr. lawrence deyton, thinks there's an economic savings to scaring smokers to quit. >> almost $200 billion are lost every year in our economy directly related to smoking. >> tom: but morningstar tobacco stock analyst philip gorham says prices drives down smoking rates more than health threats. >> the decline of consumption is less linked to health scares; it's more linked to price. we've found a very clear correlation between pricing increases and consumption declines. >> tom: the new labels will show up on cigarette packs in september 2012. >> susie: to

removal of those restrictions will help improve the fed's visibility and give the fed a greater ability to address threats to consolidated firms' safe and soundness from wherever a firm's threats emerge. dodd-frank specifically directs the fed to examine nonfunctioning regulated nonbank holding companies that engage in banking activities in a manner consistent with the way that we, the occ and the fdic, examine banks. not all elements of the dodd-frank act strengthen the role of the fed. just as the fed has been granted greater back-up supervisory authority over the primary regulators of bank holding company subsidiaries under the act, other agencies have been granted back-up authorities in areas where the fed traditionally stood alone. in the line with its responsibilities under title ii of the dodd-frank act for resolving systemically important financial firms, the fdic has new back-up authority to examine bank holding companies and nonbank financial firms supervised by the fed that are not generally in sound condition in order to protect the deposit insurance fund. the fdic also has

the fact that the fed chairman did not make any reference to the possibility of qe 3 and that the fed cut its growth forecast for u.s. economic growth this year and next triggered a round of selling. now, u.s. stocks were also prone to profit taking, especially after four straight sessions of gains which pushed up the dow by almost 300 points. on thursday, the -- on wednesday the dow finished at 12,109 points, or two-thirds of 1% and nasdaq finishing at 2,669.19. here in tokyo, the overnight losses in new york could put pressure on stock and the nikkei rise of 2% could mean investors could shell shares to take profits. meanwhile, worries over the situation in greece have eased somewhat, especially after the vote of confidence in the greek parliament. that could mean something positive for market sentiment here in tokyo. and on the corporate front, suzuki is announcing the earnings forecast for the current business year that he is something that investors are going to pay close attention to today. >> and finally the currencies, the yen is weaker against the dollar. in new york, dealers

in his post decision press conference, fed chairman ben bernanke elaborated on the fed's new forecast. >> we do believe that growth is going to pick up, going into 2012. but at a somewhat slower pace than we had anticipated in april. we don't have a precise read on why this slower pace of growth is persisting. >> bernanke also said the recent job market data has been weaker than expected. many traders on wall street believe that the fed's acknowledgement of a slowdown in the recovery was long overdue. that belief likely kept the market losses to a minimum. thursday on wall street, investors grabble with a pair of key economic reports, the latest weekly jobless claims are expected to remain at high levels and home sales are expected to show a slight decli decline. >>> quantitative easing is heading for the history books. how much difference did it really make? coming up on "world business today," more on ben bernanke's outlook and plans and what they mean for america's long-erm recovery. >>> and maggie lake talks with two top economic experts about two of the world's most difficult eco

will the fed chief say, and will it soothe the markets? erika miller reports. >> reporter: these are unsettling times for financial markets. but if there's one man who can calm nerves, it is the chairman of the federal reserve, ben bernake. if he shows strong conviction in the economic recovery wednesday, strategist stephen freedman says it could help support stock prices. >> clearly the soft patch and economic data have been one of the market drivers. and here, investors are going to try to figure out whether the fed believes this is indeed a soft patch, and the second half of the year we will see economic data strengthen. >> reporter: many americans fear the opposite as the fed ends its second quantitative easing program, dubbed qe2. but make no mistake, the markets do not want any whiff of a qe3. >> that would probably be seen as a negative signal for the markets, because that would be viewed as indicating that the fed perhaps has insight into weaker data than is commonly assumed as being the baseline for the economic recovery here. >>

the fed understands the banks. retailers don't work with the feds. the feds don't check on the retailers. so, how do you think the rule that the fed will write will come out if we kick the can down the road another year? i think the banks will have a big advantage. and what we need is for the banks to listen to their customers, the retailers, to listen and come up with a workable solution. the fed isn't the right place for that decision. the fed just made a decision and the banks decide they didn't like that decision. and, quite frankly, for some of the small banks, there is a problem because what was allowed for small banks to give them an edge isn't ever going to happen because people will shop where it's cheapest which will be with the big banks. so, i think that the feds did get it wrong, and i don't think that the banks will get it right unless there is something that is real to them. july 21, the current rule will go into effect. july 21, they will finally feel that it's real and that they ought to sit down with their customers, the retailers,

if the the fed wants to buy our debt by bonds they have to do it on the open market they've got to buy them goldman sachs and goldman sachs takes their part of flesh out of this so q.e. two actually made a lot of money for the banks because they got to sell the fed bonds and i just thought. it's a good idea i mean i would place it is a much less important concern because i'm more concerned for example if the fed were to continue to hold federally funded eighty billion in interest of the treasury last year if the fed were to continue that rather than someone back to the public which is what it plans to do they can save us over a trillion dollars in interest payments over the next decade my point i mean if we blew up the law so that you didn't have it in there that's not what you don't have to change a lot on still with q e two with this is a question where you buy and this is a question of whole budget but didn't didn't a couple hundred billion dollars of the eight hundred billion from q e two end up in the hands of the banks wanted a couple hundred billion spread on it might have been

were continuing to hold you know refunded a billion in interest of the treasury last year if the fedwere to continue all debt rather than selling them back to the public which is what it plans to do they can save us over a trillion dollars in interest payments over the next decade. i mean if we blow up the law so that you didn't have it in then but that's not what they do you don't have to change the world are they still with. this is a question where you buy this is a question of whole budget in a couple hundred billion dollars of the eight hundred billion for q.e. two and up in the hands of the banks two hundred a couple hundred billion spread on a family to be the one percent here it would be so if they're so what's the most important thing for this well for this great jobs i mean that's what we should be talking about that's the real tragedy here is you have this whole charade of these people running around the world's going to and you know what are we going to do to raise the debt ceiling are we going to raise taxes how much are we going to cut spending are we going to cut medic

as the feds day, the case continues. but the element of doria being brought in, that's a good point that you raise, that adds to the democrats' pro-corzine spin that this was all done to damage corzine because -- >> the media was very present at doria's home and at the department of community affairs in trenton when they were being searched. >> right. so the corzine people say that it must be that the feds and the christie people tipped off the reporters because they're all there. now, that is a fallacy. let me tell you this: every newsroom worth its salt anywhere in the country has either scanners or pager services to find out what's going on with the police. joe doria's house was a circus that morning. cops protecting the scene as teams of fbi agents swarmed the house. even if reporters had not been tipped -- and i know that i personally wasn't -- >> if you weren't, maybe nobody was. >> it would have taken five minutes for the new york star ledger only five minutes away to watch the search, and the search went on all d

the fed will decide what is fed reasonable and proportionate.he fed will decide that they cos will use all of the cost that it takes to actually take to dohe those operations on the cost which the durbin amendment but not too. amen so,, i think that this amendment meets the test. i know there are numbers of people that voted for the durbin amendment in the past that have co-authored this. aco offered this because they realized the durbin amendment didn't was too narrow, suburban amendment didn't take into account anything but again the transa cost of adding one transaction on top of an infrastructure that built you had already built.op there is no business that can operate that way. the presiding officer used to be part of a weekly broadcast, andcrementa if all you charges the broadca incremental cost of that going out and being broadcasters to other television stations aroundld the country and that is the only cost you could get there is no way that our presiding officer that would have been known to americaucceed because this the way the opera

and the new york fed and e.c.b. and bank of japan and bank of england are regional mafia captains and their techniques are the same they lend money you can't possibly pay back and then we don't pay back they steal everything you've got and then they crush you with rampant inflation and food and energy well he blames financialization for bringing the world to the edge of a precipice and it is true i mean that's part and parcel of the u.s. federal reserve system it's the private bankers it's jamie dimon a white blankfein who are the fed and they've created this financialization as a way to occupy our economies and the people in our revolving it's a global insurrection against ben bernanke you articulation all right since you were thank so much for being on the cause report thank you max thank you i was more coming why stay right there. twenty years ago largest country. this. began a journey. where you take. well you. really believe just signed stems. from. the future and. welcome back to the kaiser report on max keise

had rolls in the fed recently. so bernanke is in a trick e potion. if he wants to remain a moderate kind of in the middle of the fed and keep the confidence of his colleagues he has to dress fairly far to oneide and sometime away from the dot. i think the fed is part of it and you can sign a federa pay cut which has more bang for the bucks than the broad scale stuff. that's short term. i agree absolutely with what david and tom said abt the long term stuff. >> charlie: is the president right to extend the bush tax cuts. >> i don't think he had a choice politically in the end. i think the president and democrats made a bad mistake in not taking care of it when they had control of congress. but once they didn'tet it done before the electio they really had no choice once you got to december 2010. >> charlie: you are now living abroad in london, is it different there, trying to deal with austerity. >> charlie it's dealing with it in a much more direct and aggressive way. and cuts are coming through now which are beginn

taxpayer who is backing the fed ultimately destroy the money comes from u.s. taxpayer yeah that's right so the u.s. taxpayer by the way fifteen million unemployed they can't i see that in america and go to hospitals they don't but the price of medicines are so high they're substituting like penicillin or substituting with cheddar cheese you go for blood transfusion and they stick marshmallow fluff they don't have enough money to give you i don't medicines to support this global scale that's why people around the world are rising rising oh but the other point here is that ok we're being told that the whole financial system is going to collapse if we don't bail out the way to the bank forcing the greeks to hand over the rest of their children's and their futures and all of this stuff but why does the fed just open up this s. t. almost a saint omo window at point zero one percent loan to greece said that great white why just for deutsche bank and credit suisse and soc gen and b m p perry about why only those banks because as we've explained it these are the new j

and the new york fed an e.c. b. bank of japan the bank of england or regional mafia captains and the techniques are the same they lend money you can't possibly pay back and then we don't pay it back they steal everything you've got and then they crush you with rampant inflation and food and energy well he blames financialization for bringing the world to the edge of a precipice and it is true i mean that's part and parcel of the u.s. federal reserve system it's the private bankers it's jamie dimon a white blankfein who are the fed and they've created this financialization as a way to occupy our economies and the people in our revolving it's a global insurrection against ben bernanke yaka creation all right since you were thank so much for being all because a record thank you might think away much more coming why stay right there. in the. world. really believe that science and technology from. the future are covered. that's. welcome back to the guy's report on max keiser time now to go to new york and talk with li

are just evaluating a target as a potential informant and apparently the feds don't have to as to be able to search through a person's trash so they can use whatever dirt they find on that person to get them to help an investigation of someone or an organization now these are a few key points that really stick out i have to ask here because they would also out there find these revisions to be a little disturbing as the feds go already have enough power to enter into your private life often without warrants the g.p.s. tracking now you want to give them more abilities to do it without consent or supervision from their higher ups and i bring you specific instances almost on a weekly basis organizations and activists are being targeted by the government and now the updated manual seems to only give the feds more leeway to conduct those pro active investigations however they see fit and in fact when asked about all of these changes that be eyes general counsel of valerie he says that it's too cumbersome to require agents to. informal inquiries before running checks oh really is it too cum

money markets so the fed has pushed interest rates to zero it has flooded the system with dollar bills pity the poor saver who wants to get something some little taste of interest income on his or her balance so that they invest in money market mutual funds the money market mutual funds having nothing to do in this country has richard zero go to europe so many more usual fund investors are taking. ponderable risks for about zero percent returns or you'll be. dealing a few basis points only to get those few basis points these funds are crossing the atlantic right smack dab in the middle of the european banking crisis to try to take a. measure of yield this is a prime example of the unintended consequences of this massive intervention by our central bank that's right and let's not forget that in two thousand and eight there was a five trillion dollar oran on the money markets because they're totally exposed to this crisis and as jim grant points out the returns people are getting on the money markets are less than one tenth of one percent it's like trying to pick up nickels in front of a

and a whole lot of folks have got to get fed. but seven seats were made in under seven days, the first man was forgiven when he missed the hague, the branch was taken by a dove to a book that was built before a flood, if a rainbow sent out a sign, if someone was told to sacrifice his own son and told to hold up before he was done, then the fish and bread that i just said is all that i've got, is all that i need for me to get fed and for me to feed a whole lot of folks in need because they set me on fire. when they look back, i was chilling. i had to fight like 10 older brothers, and because i had this dream, so they sold me out to a band of bandits and one day was commanded to stop, drop, when i got this fish that i found while fishing around, under water with the daughter of the pharaoh, the child was chosen to force the pharaoh to free his folks from a foreign land, repair everywoman, prepare every man, prepare every child, all you've got is that right in your hand. all i've got is some fish and a few loaves of bread, and a who

about president obama's speech tonight on withdrawing troops from afghanistan also take a look at what fed chairman ben bernanke he had to say in his second press conference and let's just say that it wasn't good news and then we'll look into an f.b.i. raid that took place last night some reports are saying that it might have to do with an attempt to crack down a little security or to have all the more free tonight but first let's take a quick look out what you're mainstream media is missing. so tonight at eight pm president obama will be giving a speech to the nation announcing his plan his timetable for withdrawing troops from afghanistan and the mainstream media actually noticed this time. tonight tonight president obama outlines the beginning of the end of u.s. military involvement in afghanistan now sources tell c.n.n. that the president will announce ten thousand american troops will be coming home by the end of this year three months our troops will begin to come home tonight president obama's planning to make good on the promise he made in december two thousand and nine years of de

and the new york fed and the e.c.b. and bank of japan and bank of england are regional mafia captains and the techniques are the same they lend money you can't possibly pay back and then we don't pay back they steal everything you've got and then they crush you with rampant inflation and food and energy well he blames financialization for bringing the world to the edge of a precipice and it is true i mean that's part and parcel of the u.s. federal reserve system it's the private bankers it's jamie dimon the white blankfein who are the fed and they've created this financialization as a way to occupy our economies and the people not revolting it's a global insurrection against ben bernanke the occupation all right stacy we're thank so much for being on the cause report thank you max don't go away much more coming away so stay right there. to you for. your own food one pulled from the. video. and omission st now with the palm of your. question. welcome back to the kaiser report i'm max kaiser time now to go to new york and

which seems likely that the fed will say oh things are starting to go off the rails again we have to do something. at this point and i think bernanke is probably taking the right approach if you would to really didn't do that much good the economy is not growing faster than it was last summer he says the jobs picture is a little brighter than it was i think that's debatable but you know it's hard to see what the positive effects of q.e. two were so there's doesn't seem to be any good reason to double down at this point but what would you call his approach because i don't really see you know i think congress doing very much right now that we don't see the fed doing anything it's kind of this hoping way to cross our fingers and maybe it'll get better one day. that's actually probably exactly as approach or maybe his approach could just be get back to me in a few months and i'll tell you what right now i just wait and see there's just no it doesn't feel compelled to go one way or the other inflation isn't that bad it's starting to cool off a little bit from what we saw commodity prices

printing money out of the feds. they become qe-1, 2 or 3. i expect qe-3.hree years of depression better than perhaps ten to fif teen years of muddleing along in stagnation with the feds funding the whole thing? >> diane, will has drawn a distinction between fiscal stimulus and monetary stimulus. a lot of americans don't know as we focus on that stimulus bill that we had a few years ago, the model that the federal reserve injected in the economy is many, many times higher than the fiscal stimulus. are we going to need more money from the fed? is that what's going to have to happen? >> i think the feds act is much higher than most give them credit for right now. the further stimulus for the u.s. economy is greater than the marginal benefits at this stage of the game. we really need to see a fairly sharp krakz in the economy. there is a lot of debate about the efficacy of it, and i don't think they're ready to jump back in. we're clearly not going to see fiscal stimulus because we're talking about moving the other direction. >> in other words, we're talking a

from michael bloomberg who is there the mayor of new york who is of course overseeing the new york fed who of course is involved goldman j.p. morgan and the federal reserve bank in washington dispensing inside information the legally bloomberg is involved in legal conspiracy that's not conspiracy theory that's conspiracy fact it's all tied in to bloomberg bloomberg being of course now running for president supposedly lining things up where is he getting that money oh i get it it's inside information which he will of course try to legalize to cover his butt at the end of the article there's a quote it's going to be awfully tough to identify the source of the leak in this case because of course it's always awfully difficult to prove insider trading twenty eight nations were involved so a whole lot of people knew this ahead of time well the see if you see another regulator's they don't have the money to pay for. the subscription on bloomberg to show you who's trading on inside information they're bankrupt purposefully on purpose so that they can't possibly prosecute the insider traders bu

are we going to need more money from the fed? you mentioned ben bernanke s. that what's going goff to happen? >> i think the threshold for the fed to act is much higher than people give them credit for right now. the risk of acting further on q.e. 3, further stimulus for the u.s. economy, is greater than the marginal benefits at this stage of the game. we really need to see a fairically sharp contraction in the economy for the fed to get involved again. they feel that q.e. 2 in their own view was a success. i don't think they're ready to jump back in. he we're not going to see fiscal stimulus -- >> we're talking about tightening our belts, not having more stimulus. >> exactly. >> ali, diane made an excellent point earlier when she talked about the balance sheets of corporate america. we're also living through the reality that our political leaders and the officials in the treasury department and the federal reserve did not put any stipulations on these banks when it came to lending them the billions of dollars to say, you need to begin to extend credit. let's