we'll talk fannie, freddie and where the economy is headed next. it's not your grandma's truck. from gourmet to high tech and it may be coming to your neighborhood. "the wall street journal report" begins right now. >>> this is america's number one financial news program "the wall street journal report." now maria bartiromo. >>> here's a look at what's making news as we head into a new week on wall street. a massive yore haul othe nation's financial system is now law. president obama signed a sweeping reform act just this past week which was enacted in response to the financial crisis that began in 2008. the law creates a council of federal regulators that oversee the system and defect risk. financial entities whose failures hamper the system and housed within the federal reserve. earnings drove the markets higher most of the week last week. the dow snapping a two-day losing streak on monday and rose again on tuesday and on thursday on strong profit news. the markets continued up on friday. not all of the earnings news was good. some big companies falling short on revenue expect

let me tell you another one, fannie mae and freddie mac. in 2007 which is when the democrats first came to power, we did what the republicans never did and we did put legislation in place to change them and using that authority frank puts them in a conservatorship. if we had done that earlier, there would not have been as much damage. >> charlie: and we continue this evening with a look of creativity. how do you get it and what can you do with it. >> i think the important thing is that creativity is not making up things, at least in science, just in your head. you have to know a fair amount of information about different fields that are related, different ways of thinking about problem solving. and make up your own solution, putting all those pieces together. >> actually define creativity as something that's new and original and useful. and they're actually saying that we can teach that this schools by what we often call the creative problem solving process. learning, to fact find but then still what's important. it's about diverge empt thi

>> we won't preserve fannie and freddie in their current form. we have to bring fundamental change to that market. we'll have a good case for looking at preserving or putting in place a carefully designed guarantee to homeowners have the ability to borrow to finance a home even in a very difficult recession. we're also going to have to look at the broad set of policies we put in place to encourage home ownership and low income americans get access to affordable housing. we'll take a very broad look at how best to do that. we'll begin that process quickly and consult broadly and i think that there's going to be very broad support among republicans and democrats for a sensible reform to fix this system. >> let me go through quickly as i can the big tax issue. the bush tax cuts set to expire. the administration's plan is to let them expire. raise taxes on wealthy americans above $250,000. don't let them expire and keep them going for those $250,000 or less. even democrats, like chairman of the budget committee, says bad idea to raise taxes on wealth

federally regulated mortgage giants freddie mac and fannie mae say that institutions a loan. brown says freddie mac and fannie mae already ignore similar certain assessments. >>> june sales rose by 1.3% in the bay area with almost 8,400 homes closing escrow. the median home price was $170,000 which is unchanged. >>> stocks turned around in the final hours of trading today on word of a possible deal between goldman sachs and the government. the settlement ends a lawsuit against the company. >>> california has the largest number of illegal immigrants who qualify for the dream program. california has 553,000 or 26% of the 2.1 million immigrants who could apply for legal status through the proposed federal program. texas is second with 258,000 illegal young people, followed by florida with 192,000. >>> it is finally happened, bp today plugged its leaking oil well. details ahead. >>> and this is gulf seafood, but is it safe to eat. today scientists are starting to find out. >>> now we're learning who paid a record amount to own the warriors. >>> it was near 100 degrees in some nei

fannie and freddie proved that this definition can be highly destructive. oochecongress could have writte, madam president, legislation to address key issues that played a role in the recent crisis. on government-sponsored enterprises, fannie and fredy, the bill is silent aside from a mere study. on the tri-party repo market, the bill is silent. on runs in money markets, the bill is silent. on the reliance of market participants on short-term commercial paper funding, the bill is silent. madam president, on maturity transformations that allowed the shadow banking system to effectively create money out of aaa-rated securities, thereby make the system much more vulnerable, the bill is silent. on the financial system's overall vulnerability to liquidity crisis -- crises, the bill, again, is silent. madam president, we know with certainty that all of these factors, none of which are addressed in the bill, were integral to the recent financial crisis. and while we do not want to write legislation that only deals with the last crisis, we do want to enact a law th

freddie mac was created.deral home loan banks are a nonprofit government corporation and have been this entire time. many analysts believe that by turning fannie mae into a publicly traded corporation -- you have all the incentives of a for-profit company which would help up the stock options. at the same time, you had the implicit government guarantees. this was just asking for trouble. my advice for fannie mae and freddie mac is to merge them. there is no reason to have two. merge them into a single entity and reduce them to the status of non-profit corporations. from the 1930's through the 1960's, fannie mae played a major role in helping ordinary people get mortgages. it was free from the kind of scandals week seek after it became a for-profit organization. host: reseda, calif., a republican line. caller: i read your article on the neo conservatives taking over washington. this all boils down to -- this comes down to where our money is going to appeared we can of the fault -- afford all these services bec

a few of them were approved prior to fannie mae and for -- freddie mac concerns being raised. the program is caused while those concerns are address. but it was about 20 applications. >> the concern was a communications issue? >> with a green finance program what it does is it allows property owners to prepay their loans for property improvements on energy efficiency, removals, and water conservation through a lien on the property. fannie mae and freddie mac have expressed concern that they maintain their priority status. that issue is what has a dialogue under way within the financial community and government as to how to resolve it and make sure that we can move forward with our program effectively. we are not alone in that. many communities have that concern. >> thank you. >> any public comment? seeing no one, onto the next item. >> commissioners, before that, is this a good way to get information for the tangling questions? >> that is not often the case. >> next item? >> in this case, employee recognition. i would like to call attention to a typo that i made. we all believ

fannie mae and freddie mac were put into conservatorship. they were the first major institutions to be reformed. we also in this house passed a bill to control subprime lending. the gentleman from alabama had been the chairman of the subcommittee with jurisdiction over subprime lending in those republican years and never produced a bill. he said it was our fault because he wrote a letter, myself, mr. miller of north carolina and we didn't tell him we'd vote for im. i wish i could have it back. i wish i knew i was secretely in charge of the republican agenda. i wish i knew they wouldn't do anything unless i said they could but nobody told me. where were they when i needed thome to be more powerful. the republicans never checked with me as to what they were supposed to do. it's 2007, we did pass such a bill to restrict subprime lending and the wall street journal attacked us. they said it was a sarbanes-oxley for housing. sarbanes-oxley is about as nasty as you can get for "the wall street journal" and here's what they said about subprime lend

and with financial reform in the rearview mirror, the administration is moving on to fannie mae and freddie mac. the treasury will hold a strategy session august 17 to figure out what to do with the mortgage giants and their bloated balance sheets. so far, taxpayers have spent $145 billion stabilizing fannie and freddie. >> tom: still ahead, will apple's success rub off on its business partners? tonight's "word on the street" has three under-the-radar stocks tied to the iphone maker. >> susie: as we mentioned, b.p.'s new c.e.o. says cleaning up the gulf is at the top of his agenda, and congress wants make sure that happens. today, senate majority leader harry reid rolled out new legislation requiring the oil giant to clean up its mess and pay for damages. it's all part of a much-smaller- than-expected energy bill that leaves producers of clean energy out in the cold. darren gersh has more. >> reporter: the president called the slimmed-down energy bill working its way through the senate "a first step," and he vowed to continue pushing for a broader bill addressing climate change and renewabl

it is guaranteed by fannie and freddie it is not really at risk of loss but fannie and freddie them.> of course, standing behind that is the house which as collateral so that is the protection is doing it there is a default, again there is recourse to collateral summer movie go for the asset-backed security program. >> there are laws that underlie as a but the man he was if you may were secured by the actual houses and generally ginnie mae buys and securitize as though fha loans. >> but still the numbers that indicate greater federal support for the economy but we're not out of the woods? >> absolutely even with double counting each hess belts -- spill to increase their commitment by a staggeng amount of money. >> what is the one thing you want to leave with this commission at this point*? i think you have done a great job. but stay what you want to stayhat what we should know. >> one of thenduring frustrations that we have all the treasury has come a long way from transparent save we still have some ways to go? but looking at the housing program makes the program better and more cre

now, freddie and fannie are not government organizations.they're qusi government -- quasi-government. and when they started doing thing, the assumption was the federal government would come and bail them out. so freddie and fannie are getting -- this is 2003. real estate market's booming. president bush says, watch out, freddie and fannie are getting in trouble. i need more authority as president to control fannie and freddie. paying many lobbyists up here on the hill dishing out hundreds and hundreds of bills. this is freddie and fannie, they're starting to get in trouble. president bush says we got to regulate them. now, the democrats, on the other hand, the guy who is now in charge of taking care of regulating freddie and fannie because he's in the majority now. this is congressman frank, the democrat. he says these two entities, freddie and fannie, are not facing any kind of financial crisis. 20/20 hindsight we say obviously you are wrong. i'm sure he'd admit he's wrong. they were facing fanl crisis. and as they start to crash and collap

host: shares of freddie mae and freddie mac will begin trading over-the-counter thursday nearly a monthhe editorial opposing the dodd-frank proposal. we have someone on the republican line. caller: i am 72 years old. not one thing have they done for the working man. they have done medicare. they can say they have done a lot, but they have not. they have tried to destroy this president. if we say no to everything, we can destroy you as president. that is what they have done. come on, a young boy. you are smart enough and educated enough to know that the republicans are for the rich. that is why you don't want regulation on banks or businesses. you don't want to take any tax breaks from the businesses. you want to take the money from the working man and they don't have it. host: thank you, paul. guest: i think what paul is voicing is a common frustration among democrats. i find it interesting that, you know, a lot of these calls have not had much to do with financial regulation. i just -- the only reason i say that is because i feel like this bill is very misunderstood. paul said that rep

but fannie and freddie have their own regulator. it is so complicated. the administration says they will propose a new government role in the mortgage financial system. that fannie and freddie could be a thing of the past. it will be a huge fight on capitol hill. host: when did the white house say they might weigh in with some proposal on have to do with fannie and freddie? guest: they have been hinting at it for months. it is likely to be a debate that comes up next year. host: on the democratic line, from houston, texas. caller: good morning. do they realize that a lot of these banks own these payday loan companies? it is a back door way. i feel the biggest problem is the credit bureau which is so corrupt. it is the one that needs to be totally regulated. secondly, the republicans are so mean-spirited that they never, ever want anything that will help the smaller, lower class people. they only want to help big business. every time it comes up for minimum wage to be raised, they vote against it. anytime there is an ounce of money that will go out the do

fannie mae and freddie mac were put into conservatorship. they were the first major institutions to be reformed. we also in this house passed a bill to control subprime lending. the gentleman from alabama had been the chairman of the subcommittee with jurisdiction over subprime lending in those republican years and never produced a bill. he said it was our fault because he wrote a letter, myself, mr. miller of north carolina and we didn't tell him we'd vote for im. i wish i could have it back. i wish i knew i was secretely in charge of the republican agenda. i wish i knew they wouldn't do anything unless i said they could but nobody told me. where were they when i needed thome to be more powerful. the republicans never checked with me as to what they were supposed to do. it's 2007, we did pass such a bill to restrict subprime lending and the wall street journal attacked us. they said it was a sarbanes-oxley for housing. sarbanes-oxley is about as nasty as you can get for "the wall street journal" and here's what they said about subprime lend

fannie and freddie proved that this definition can be highly destructive. oochecongress could have writte, madam president, legislation to address key issues that played a role in the recent crisis. on government-sponsored enterprises, fannie and fredy, the bill is silent aside from a mere study. on the tri-party repo market, the bill is silent. on runs in money markets, the bill is silent. on the reliance of market participants on short-term commercial paper funding, the bill is silent. madam president, on maturity transformations that allowed the shadow banking system to effectively create money out of aaa-rated securities, thereby make the system much more vulnerable, the bill is silent. on the financial system's overall vulnerability to liquidity crisis -- crises, the bill, again, is silent. madam president, we know with certainty that all of these factors, none of which are addressed in the bill, were integral to the recent financial crisis. and while we do not want to write legislation that only deals with the last crisis, we do want to enact a law th

but government financiers fannie mae and freddie mac say they will not longer accept liens because they have risk of default. >>> developers are worried new air quality guidelines can delay or stop affordable housing projects. developers are concerned about new requirements to conduct produce control studies for projects near freeways or refineries and other high pollution sources. that new rule would apply to most transit oriented development in the interbay area. >>> the young museum is opening their doors and inviting the public in. the d young is one of six museums offering free admission for part of the weekend. it's part of the free family event. >>> coming up on ktvu channel 2 news at 5:00, while many bay area cities are seeing more empty store fronts, san jose is welcoming a new ross store. >>> and that is our report, i'm john sasaki for tory campbell and everybody here at ktvu thank you for joining us. our next report is at 5:00. have yourselves a great day.

a in agency would be created in the treasury department to assume supervision of freddie mac and freddie mac going on. this is 2003. they saw it coming. this then resulted in republicans in the house passing a bill. what goes then? we sent it to the senate. what happened in the senate? you needed 60 votes to pass it? and what happened? the democrats killed this in the senate, just like they killed the energy bill in the senate that was designed to help us with gas prices. justs as you know, gentlemen, to reduce health care costs. they killed the society the health plans time after time here on the floor to allow small businesses to pool their employees to get a better price. we were accused of doing nothing. we didn't do nothing. we sent a lot of legislation to the senate where they didn't have 60 republican votes. have we done anything about freddie and fannie? no. it's still hugely in debt and we are bailing it out all the time. what's the result? we will be in a lot of trouble. this is what hurts. unemployment. look at the private sector unemployment numbers. look at the red line. tha

getting nice defense from freddy sanchez to put down. taking the giants to the win. we have the game here tomorrow nig night. >> it is good for the team and myself. confidence booster. obviously, coming out of that first half, ending it the way i did, wanted to keep it going. yes, good to get the win. >> the giants won 8 of the last 10. the warrior sale, he is not going inside, adding to the intrigue, larry elson released a statement that he was the highest bidder. coordinating toing the firm, the paperwork was not filed in time. the shot clock expired. leaving elson, cohan decided to sell to someone else. it is a bit nushlg, i wish the warriors and their fans success. $450 million, a record. >> and the british open, the first round of the british open, terrible weather. expected to be just as bad. tiger woods on his favorite course. he is four off the lead. john daley, rocking the loud mouth. birdie the hole, finished the day. and the round belong to mcelroy. he finished the day 9 under 63. a stand alone first round british open record. >> what a story john daley wo

government backed freddie mac cede today the rate on a 30 year fixed mortgage fell to 4.5% this week. that's down from 4.6 a week ago. this is the sixth straight week the late has broke a record. >>> google has hired 1,970 full time employees this year. that's about a 20% increase in their work force. google says it might have to hire more people to accommodate the growth of the business. >>> it was a wobbly day on wall street. >>> for a change, it's starting to once again feel a little bit like summer out there. let's check in with chief meteorologist bill martin. >> it does feel a bit like summer than it usually does. temperatures have warmed up a couple of degrees. i'll show you the temperature footprint right now. using colors, you can see the 90s out where you expect the 90s. around the bay, oranges showing up. you have 81 right now in livermore. that's up where it was. highs tomorrow will be a degree or two warmer. these are the official highs from today. 88 in antioch. that's a warm spot. 88 in fairfield. we might see a couple of 90s pop up. still not as hot as you would expect

i don't think he even talks to freddie. he admitted under oath that he built without a permit. he turns to you folks and says, -- [chime] this is why we are angry. we don't want the city to look like it did in 1906. please uphold what the last body demanded to have happened. >> my name is norman kinney, and i have been in the neighborhood for about 35 years. i just want to read this letter to you. they have our full support, there are plenty of homes on university, and there is one of the nicest. their home has added value to all of our homes. as neighbors, we see them from our backyard. tearing it down would leave the roof equipment exposed. i would rather see it. they're trying to comply with the ruling there received. the neighbors seem to be continuously asking for more than what is actually necessary. there was a letter recently passed through our neighborhood. as a property owner, we appreciate positive changes and upgrades making it a nicer place to live for everyone. we just want it to be worked out on both sides. president peterson: is there any other public comment? i

freddie mac says the average 30 year fixed is at 4.5 of 4%.ar it was 4.56%, and also 15-year is at 4%. bernie mac is contracting rates since 1971. in other toyota recall, this time, 12,000 cars. the avalon, from 2000-2004 and these cracks could lead to a locking up of the steering column. also, it is recalling 39,000 of the lexus. 470 2003- 2007 >> and the oakland coliseum, and people are lining up to be actress. we caught up with some eight-extras. >> and i love the oakland a's, and i think it would be so much fun and i want to relive it. >> i love brad pitt >> and i think that he is just the greatest and he is also an up-and-coming star. with robin wright, and i just think it is great and i'm a big fan of all of the stars. >> we've not done this before we are a huge a spaa's van >> i will throw the first pitch! >> we are making a sign, who used to play for the a's. >> and i heard that this movie was being filmed out here. and i said i want to try to get into it. >> and i came in last night, and it is very interesting to see how this movie is

bottom two, a's wasting no time against freddy garcia. the single to center. 3-2 a's on top. garcia can't make it out of the second inning. the power back on. suzuki playing long ball to left. only question, did that ball go out? the umps discussed, they determined yes, it is a home run. very next batter jack cusp, no doubt about this one. solo home run. a's back-to-back. another homer in the eighth. the a's rule 10-2. the rubber game is tomorrow. >>> it looks like the a's will not be dealing ben sheets after all. they put the starter on the disabled list with right elbow inflammation. the outlook might not be so good. he may be out the 15 days or for the rest of the season and could be leaning towards the latter. the elbow has been swollen, now he needs to get checked out by his own doctor. >>> they have work to do to catch up to the padres. if the regular season would end the giant would be in the playoffs. with last night's win in arizona san francisco took the outright lead. jonathan sanchez, allowing one run in five innings. he struck out ten. top six, aubrie huff. one s

freddy sanchez chopping one to 3rd. play at the plate. travis ishikawa. he beat the tag.he umpire ruled otherwise. that is just a lousy call. the game consequently goes to extra innings. ike davis has feasted on giants pitching this season hitting .429 and bangs one off the bricks against brian wilson to drive in the go ahead run. giants get one last chance. curveball. mets escape with a 4-3 win. >> i was so sure the game was over. it was a satisfying feeling. you saw me celebrating early because i thought i beat it. but it was just almost heart sinking to him raise his hand for the out. >> we all screw up out there and i don't care if they call it good or bad, they have got a job to do. make mistakes. not to say that was a mistake today but it is just the way baseball is. >>> kansas city where the kid was doing his best kobeyashi impression. sprinting around the bases. jack cust the bigger guy. kevin kouzmanoff knocking in seven runs in the series. two more today. it would have been more if not for this great spare. 5-1 as. another look at the form. turning in another st

they say it will slow economic growth and kill jobs and they are angry the bill doesn't take aim at freddie and fannie mae which had to be bailed out by the government. >> the bill addresses most of the problems and makes a good start. it's not perfection but in the real world, we don't get perfection. >> reporter: for the banks, the new rules go into effect as they continue their come back from the recession. wells fargo and morgan stanley beat wall street expectations announcing billions in profits the last three months. alexis christoforous, cbs news, wall street. >>> in the gulf of mexico, bad weather is threatening to delay bp's efforts to permanently plug the damaged oil well. a storm in the caribbean has a 60% chance of becoming a tropical storm by friday as it moves into the gulf. if that happens, ships would have to leave the spill zone. bp couldn't keep an eye on the capped well. this is a live look at what is happening under water. without the ability to observe the cap, bp says it may have to open it up for nearly a week and let the oil flow until the weather clears. >> we said

. >>> mortgage giant freddie mac says interest rates have hit a record low for the sixth week.he average rate on a 30-year fixed mortgage is 4.5%. the last time rates were this low was during the 1950s when most mortgage were for 20 or 25 years. >>> state law makers returning from vacation on monday will face a stark reality. there's no budge and it no deal to resolve california's $19 billion budget short fall. but at least one proposal is now on the table. >> reporter: the hum over overheadlight, the chatter of tourists, they were essentially the only sounds heard today many the assembly chamber, the members are on holiday. >> we are seven weeks past deadline and they have no bill, they have no plan. >> reporter: he says a budget deal is at least several weeks away. the only budget movement, the ticking of the so-called budget clock outside the governor's office. but talks are going on behind closed doors. >> we are talking about a tax cut for people across the income range. >> reporter: he says he has a plan to solve the $19 billion budget deficit without slashing education.

freddie's traffic this the san jose highway won a one so the north bound moving perfectly wonderfullyuadalupe over pass highway 87 a little bit sluggish but not too bad for friday trade will be right back. rescuers returned to person who's trapped in a car after parking grosz collapse purifier official says chris can see the victim but the can get to the person because of the concerns the parking structure is still unstable. the grosz collapsed after a glass can be from a high rise can and the condominium fell. return figure out if there are additional people trapped. the teenager known as the barefoot band is headed back to washington state to see. 19 year-old colt and here's more land in miami he is suspected of committing about 70 crimes in nine states and british columbia. he received his nickname after allegedly committing some of the crimes without wearing shoes prepared pleas of the looking from since he escaped a halfway house back in 2008. he was arrested on sunday in the bahamas. at 3.6 earthquake shook the washington d.c. area this morning. it was centered in german town ne

freddy garcia hadn't lost since may 23rd and during that stretch won six in a row.lasted just 1 for 3/4 inning today. tony pain gnaw relieving. oakland leading. hits it deep to left and that ends up left on the field. he's not sure. the umpires talk about it and rule he got his 11th of the year. jack cust up next. there was no doubt about this one. it was stir up excitement among the seats as they clam up. he got number 8 in the 8th. he gives it up to almost the exact same part of the ball, a. cust was perfect on the day. two homers, three walks. the as win 3-2. >>> in l.a., mets and dodgers went 13 innings. loney lose z one off reliever oliver peres who is working as relief. >>> with just tomorrow's ceremonial stage to one, alberto contador is set to wrap up his third tour de france style in four years. today's stable was a 32-mile individual timed trial the. armstrong was 67th today. he's 23rd overall. almost 40 minutes behind the leader. the stage winner, fabian. he it came down to two guys. andy schleck started eight behide con that door. that lek had a slip and

we recommended making the costs of fannie and freddie bailouts transparent to the public, that is to the taxpayer. we offered initial steps toward the never -- inevitable unwinding of these institutions. yet, madam president, at every turn the democratic majority blocked efforts for at least establishing reform here. the democrats prefer approaching this bill in reforming the mortgage giants is a stay. let me repeat that notion. in order to address a bailout that has already cost american taxpayers roughly $150 million to date with unlimited future taxpayer exposure, the democrats proposed a study. it does not take a study to determine, madam president, th that $150 billion in unlimited loss exposure needs to be addressed immediately, now. congress could have focused, madam president, on securities market practices that were known to have contributed to systemic risk in our financial system. again, democrats overreached, i believe, once again. for example, the bill gives the securities and exchange commission, which has failed to carry out its existing mandates, a new systemic risk m

fannie mae and freddie mac are the problem. we have to stop bailing out financial institutions and get rid of fannie mae and freddie mac. when people are willing to invest their own capital, then we have a solid economy. you cannot rely on taxpayers to bail out corporations. >> thank you very much. next question is for senator mccain. foreign affairs. general casey says the american forces could be fighting in afghanistan for another decade. you have said we need to stay in afghanistan and won. we have-- until we have won. are you willing to stay there for another 10 years, even as members of your party began to call this a losing war? cal will we know if we have 1? -- how will we know if we have won? >> the same way we know in iraq. there is a functioning government. they have a government that is functional. i would remind you that, when everybody else said that john mccain's candidacy was doomed, because of my support forsurge this -- for this surge -- i said i would rather lose a campaign than one lose a war. afghanistan is

. >>> they're down to penny stocks but fannie mae and freddie mac jumped after the administration said it's organizing a conference on housing finance in august. >>> elsewhere general electric, the current owner of this network, will pay $23.4 million to settle federal charges some subsidiaries paid illegal kickbacks to the iraqi government to win contracts under a u.n. program. >>> and, finally, at australia's jenolan caves, once the site of an out-of-this-world location shoot for "star trek," staffers have added an eighth language for conducting tours. the "star trek" language of klingon. how about that? >>> well, the rangers walk off happy, a-rod comes up empty on his birthday, and t.o. has a new home. >>> plus, a little circus action helps the blue jays put away the o's. your early morning sports headlines are straight ahead. >>> a strong cold front's going to bring relief to the heat for some. your regional forecast is coming up. you're watching "early today." if you're just waking up, this is "early today." and in sports, the cincinnati bengals already feature one brash superstar

host: shares of freddie mae and freddie mac will begin trading over-the-counter thursday nearly a month thing have they done for the working man. they have done medicare. they can say they have done a lot, but they have not. they have tried to destroy this president. if we say no to everything, we can destroy you as president. that is what they have done. come on, a young boy. you are smart enough and educated enough to know that the republicans are for the rich. that is why you don't want regulation on banks or businesses. you don't want to take any tax breaks from the businesses. you want to take the money from the working man and they don't have it. host: thank you, paul. guest: i think what paul is voicing is a common frustration among democrats. i find it interesting that, you know, a lot of these calls have not had much to do with financial regulation. i just -- the only reason i say that is because i feel like this bill is very misunderstood. paul said that republicans don't want regulations on banks because the party -- we are the party of the rich. a lot of the problems i have

freddie mac says the average for 30-year fixed loans slid this week to 4.54%. and late today, the justice department sued oracle, charging it defrauded the federal government on a software contract worth millions of dollars. the contract ran from 1998 to 2006. during that time, justice says oracle's commercial clients got better deals than uncle sam. >> tom: still ahead, land owners and investors see money to be made from under these peaceful rolling hills. we look at the rush to cash in on natural gas mineral rights in michigan. >> susie: toyota has announced another big recall. this time for a steering problem on its avalon sedans. 373,000 vehicles are being recalled, from model year 2000 through 2004. toyota says there's a potential problem with the steering system that could increase the risk of a crash. the auto maker will notify car owners next month. this brings to niee million the total number of vehicles toyota has recalled worldwide in the last year, that's almost as many vehicles sold by all manufacturers in the u.s. last year. let's take a look at t

we reet now have $13 trelion of debt, five trelion of fannie mae and freddie mac. we can't grow at 4% to sex%'s year until we address that issue i believe. >> rose: "teem" magazine and daefd rubenstein next. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: "time" magazine has a powerful photograph of a young afghan woman aged 18 who had her nose and ears cut off on orders from the taliban because she fled her abusive in-laws. the story in "time" is not only about this young woman but women in afghanistan and what has happened to them in afghanistan. joining me is richard stengel, managing editor for "time", and joe klein writes about pakistan this week. begin with the cover. tell me about how it came into being. what were the powerful forces in your own head that said we have to do this, and what were the restraining forces that said maybe not? >> yes. well, charlie, we had aaron baker, our afghanistan bureau chief there, who had written a very powerful and emotional story about how afghan women were blos

white house will hold a conference next month to discuss the future of mortgage giants fannie mae and freddie mac. together they own or guarantee about half of all u.s. mortgages. the two companies had to be bailed out during the financial meltdown and it cost taxpayers $145 billion so far. >>> general motors has put a price tag on its new electric car. the volt will cost $41,000. but a federal tax credit will shave about $7,000 off that price. chevrolet is already taking orders for the volt, which runs on battery power with a small gas engine for backup. the official launch date is in november. >>> and you may want to take your mother's advice and remember to sit up straight, especially during a job interview. a careerbuilder survey finds bad posture could sink your chances of landing a new job. the survey of 2500 hiring managers finds body language mistakes like bad posture and a weak handshake could hurt you in a job interview. betty, remember, eye contact at all times. >> that's right. that's right. and sitting up straight. okay, i have to remember that. my mom always gets on me about tha

check out freddy sanchez. diving play. lincecum picking up his tenth win of the year.ants get the shutout, 2-0. >>> summer league hoopage. john wall and the wiz, playing the mavericks. second quarter, mavericks up five. wall misses the runner. he would have seven rebounds. wall would have ten assists, hooking up jevail mcgee. how about some points? wall, on the drive. he had 21 of those. see it again just because it was nice. wizards win it 88-82, the final. >>> that's your look at sports. for espn news, i'm steve weissman. back to you in new york. >>> coming up next, the stories we'll be following today, >>> now, a look ahead to the stories we'll be watching this friday. the new cap on bp's oil well is holding steady. but no one says the oil crisis is over. engineers will be monitoring the well all day. the hope is that its pressure remains high, which would indicate that the well is leak-free. >>> plus, apple makes a big announcement about its troubled iphone 4. the company has been dealing with criticism about the device's reception problems since its release last m

. >> freddie macly, there should have been a burst of outrage. when president obama and others in the white house were talking at the beginning of the week, it's what you said. no one had really reed it. they were surprised when the documents came out. some read it and said that's not a big deal. but when you started reading that they had actually named afghan informants and those names were on the website, then you really are talking about life and death. and if you think about it even beyond that, if you think about the fact that a lot of those afghan informations, who, by the way, a taliban person said today they would go looking for them. i've been in touch with some commanders over there who said they're trying to find them to help them. but those people, number one, won't come forward anymore. people will be scared to come forward. and what that does is put u.s. forces more at risk. so that's why there was that incredible change of tone. gwen: especially in a week where we had new record casualty numbers that were set. >> july is the deadli

treasury bonds but also the housing bonds fannie and freddie bonds so china should cut u.s. treasury holdings economist says so this is two economists in the state media. former academic advisor to the central bank wrote that although assets and other currencies and forms are not ideal replacement for u.s. treasury bonds diversification should be a basic principle when demand for u.s. treasury securities a strong it's a rare opportunity for us to gradually pull back so these are the same sort of you know speaking of alan greenspan he's to send subtle signals to the market insiders about what his next move was of course nobody in the population knew how to read alan greenspan but he was sending them signals of what to do to protect themselves these are the same sort of equivalent in china these economists are telling people what the program will be very soon now shang money and another economist who works with the state told the paper also that china should invest more of its two point five trillion of foreign exchange reserves and hard assets such as gold well they're buying

the first complete game shutout of the season, he wins his 10th game of the season, freddy sanchez endsin style with a diving stop. the giants start the 2nd half with a 2-0 win. >>> tiger woods was one of 59 players under par shooting a 67 and is four shots back. john daly reminded everyone that he, too, has had success at the old course. the 1995 open winner did tiger one better, a 6-under 66, but everyone is chasing rory mcilroy after 18 holes. 21-year-old matches the course record with a 9-under 63. >> it's just a golf course that i just love it. i don't know why. it just suits my game. it's to me my favorite course all over the world that i've ever played and when you got that going for you, you don't feel disappointed when you don't play so well, but you feel even better when you do play well. >> they're back on the course right now and we'll be right back. ,,,,,,,,,,,,,,,, [ man ] my perfect summer is grilling up a masterpiece. daily. [ woman ] my perfect summer is having everyone over. and having money leftover. [ female announcer ] safeway lets you have it all. with thousands of