freddie mac and fannie mae had to be bailed out.on the plus side, the budget deficit has fallen steadily during obama's time in office. helped by the economic recovery, expiration of bush era tax cuts and reined in government spending. it's now 2.5% of g.d.p. in real terms, that's a trillion dollars less per year than it was when obama took office. the overall national debt has increased partly due to the stimulus spending. at the beginning of obama's term, u.s. unemployment had shot up to over 10%. now with over 14 million jobs created, the rate is under 5%, a level that economists consider full employment. but the number of americans who have left the labor force is growing and critics say many of the new jobs are low paid and impermanent. although the economy bounced back in 2009, growth since then has been at much lower levels than in previous recoveries. >> back to you. brent: thank you very much. here's a reminder of that top story we're following. the democratic national convention is now in order in philadelphia. you see rig

. >> mortgage rates have fallen to near record lows, according to the latest freddie mac data, the average 30-year fixed rate dropped to 3.41% this week. a shift in interest rate expectations, a vote in the uk to leave the eu and a strengthening dollar have all combined to hold treasury yields low. the yield on the ten-year treasury is an indicator of whether mortgage rates will rise or fall. when yields drop, so do loan home rates. >> it's no secret that we spend a lot of money on our pets, right, miss sue. >> absolutely. >> my $5,000 cat's surgery. all that spending has given rise to a very lucrative industry and has created opportunities for aspiring entrepreneurs. jane wells takes a look at some of the hottest trends for our furry friends. >> let me smell your breath. >> reporter: we treat our pets like they are humans. in fact we think they are humans. >> he's going to be your brother. >> reporter: actually, we love them more than humans. as universal's "the secret life of pets" hits theaters, the $60 billion-plus pet products industry is lapping up profits and spawning a new wave of

. >> a three-year low, freddie mac says the average rate now on a 30-year fixed is, believe it or not, 3.48%. down from the prior week. benchmark treasury yields tumbled in response to britain's vote to leave the european union and mortgage rates followed. >>> what if i told you could get a mortgage or even several mortgages without even having a job? well, if you're an investor, it's now possible. a new loan product from one of the nation's largest private equity firms is betting on the red hot rental market and doling out cash to investors regardless of income. diana olick explains how it works. >> reporter: during the housing crash, this florida home was headed for foreclosure but investor brian russo put down the cash and turned it into a profitable rental. now, it's worth nearly twice its former value, but russo couldn't capitalize on that. >> there weren't a lot of opportunities for us to pull that cash out of these properties and using leverage to get into additional properties. >> reporter: until now. b2r, a plaquestone-owned company, recently launched a new mortgage product f

that was fannie mae and freddie mac.y keep saying we will eventually think about unwinding this, but i am not so sure. that prepayment option is the sort of thing that gave rise to the need for the government's involvement in the first place. more broadly, do we think any of exit fromal banks can these policies until these economies are functioning way better than they have been doing and way better than is reasonable to expect over the next couple of visible horizons anyway. joe: fascinating conversation, thank you very much. >> coming up, we will hear from sheryl sandberg on that company's earnings. this is bloomberg. ♪ scarlet: it is time for the bloomberg business flash. soaring, aroup on second-quarter loss, but boosting outlook. to $3.1 billion estimated. go pro reporting second-quarter earnings that beat estimates. the company got a boost from renewed demand for its small cameras ahead of a new model later this year. adjusted lost 52 since a share, seven cents better than projections. it maintains its full revenue

plans to install suicide nets on the span after hitting another snag and a revised outlet from freddie mac if you are refinancing. all the marine layer is back indicating cooler temperatures this afternoon and a spot that is seeing sunshine a look from correct check, a "spare the air" day is in affect with poor air day is in affect with poor air quality >>> live from the kgo-tv broadcast center this is abc7 news. >>> a texas father and his 11-year-old son are among the 84 victims killed in the attack in nice. french president hollande just finished speaking to the nation he revealed that dozens of injured are still between life-and-death. i am natasha zouves. >> i am reggie aqui. >> we will go back to our coverage of the attack in a m but we will have a quick check of weather and traffic. drew? >> yes, we are waking up to a lot of cloud cover. live doppler hd is showing the marine layer is back, with gray shading the low cloud cover. at mount tam we will snow you a foggy cost, and cooler winds are topping out in the low-to-mid 90s. >> traffic is tale -- a better now compared to 4:00. the b

fannie mae, freddie mac? let us be serious about what we are doing, just not throw stones because we can. thank you. [applause] >> opponent? heather, and i would like to move to call for a second degree amendment on this. what my imminent would say that the policy of the democratic party is to oppose corporate welfare that ship jobs overseas. [applause] >> you have the right. [indiscernible] >> ok. we will accept. >> so, could you read it again, please? >> yes, what the amendment would say that it is the policy of the democratic party -- >> i am sorry. where would you put that, at the end? >> yes. >> so, it would read with the following words, in the new sentence, right? >> yes. i would move to strike the language and insert. [laughter] ok, under a prior agreement reached between the two campaigns, i will recognize this for a short discussion and a quick vote, ok? >> ok. >> go ahead, let us finish. >> the problem with the export-import bank is that it provides corporate welfare to some of the largest outsourc

the 30-year average for a fixed rate mortgage still well below 3.5% according to freddie mac.s is direct response to the brexit trying to keep the housing leon: delta is going to have flights from u.k. to u.s. there are number of flights are going to shift the supply to bring them back where the airlines are not afraid to lose the revenue. michelle: for your daily dose of pokÉmon go, if you are looking to multitask while playing the game. they have the animal shelter that is asking for volunteers to walk adoptable dogs while they play the game. the shelter put the call out tuesday with a facebook post and they got 13,000 shares in 24 hours. >> a healthy dog is an adoptable dog. provides them with socialization with people. fantastic way to combine the game and walk the dogs. michelle: since the announcement went out on facebook shelter workers had keep up with the demand. all right. some young chefs. leon: young chefs we talked about earlier got a taste of the white house this afternoon in part of the kid's state dinner. amy aubert takes us inside the white house for the meals

they take control of fannie mae and freddie mac. lehman brothers collapses without warning. insurance company aig is seized by the fed signaling that the entire u.s. financial system is on the brink of failure. >> the government's response to the crisis was problems rolled in and they dealt with them on a case-by-case basis. they were just trying to stop the economy from going into a depression. >> in an effort to stabilize the economy congress approves a controversial $700 billion bailout. >> this is truly a monumental moment in u.s. history. >> you can't let it all go down. if the banks go down, then the economy is in chaos. >> a lot of people lost their homes and a lot of people lost their jobs and eventually you saw people down size and it shook out to where it ought to have been from the start. >> the bailout under the bush administration is perceived by many conservatives as government over stepping its bounds and they launched a new movement with history. >> we're thinking of having a chicago tea party in july. >> that's where the tea party was born. they saw wall str

the government takes control of the top mortgage giants, fannie mae and freddie mac.ig is seized by the fed. signaling that the entire u.s. financial system is on the brink of failure. >> the government's response, they dealt with them on a case by case basis. they just tried to stop the economy from going into a depression. >> in an effort to stabilize the economy, the congress approved a controversial $700 billion bailout. >> this is truly a monumental moment in american history. >> their view was, you can't let it all go down. because if the banks go down, then the economy is in chaos. >> a lot of people lost their homes, and a lot of people lost their jobs. and eventually you saw people downsize, and it shook out to where it ought to have been from the start. >> the bailout under the bgs is perceived by many conservatives as government overstepping its bounds, and protesters launched a new movement with an old history. >> the chicago tea party in july. >> that's where the tea party movement was really born. they saw wall street getting a bailout, when they weren't

government takes control of the nation's top mortgage giants, fannie mae and freddie mac.ehman brothers collapses without warning and insurance company aig is seized by the fed. signaling that the entire u.s. financial system is on brink of failure. >> the government's response to the crisis was parapa at the time tick. problems rolled in and they dealt with them on a case by case basis. they were just trying to stop the economy from going into a depression. >> in an effort to stabilize the economy, congress approves a controversial $6700 billion bailout. >> this is truly a monumental moment in american history. >> their view was was you can't just let it all go down because if the banks go down, then the economy is in chaos. >> a lot of people lost their homes and a lot of people lost their jobs. and eventually, you saw people downsize and it shook out to where it ought to have been from the start. >> the bailout under the bush administration is perceived by many conservatives as government overstepping its bounds and protests are launched a new movement with an old histo

freddie mac says the average 30- year fixed-rate mortgage fell to 3.48%. >>> workers at atlantic city's casino are on strike this morning about 950 union workers walked out ahead of the busy holiday weekend. they are upset over the cancellation of health and pension benefits and even though it bears donald trump's name, the casino is only by billionaire carl icahn. >>> and apple's in talks to buy rival streaming service title. they are run by jay-z has struggled to get new users. it would let apple boost its own music service by bringing in more music by other artists. >> jill, we hear that a childhood candy is getting an ayou will did makeover and it's turning into a big business -- is getting an adult makeover and it's turning into a big business. >> rosset gummi bears on sale. at a candy store. they were so popular they sold out. they crashed the website. there's a wait list. but i think candy and rosset, i could get behind the idea. >> i have actually tried a lot of candy from sugar phoenix because my wife purchased them. they are pretty good but i wasn't too happy with the bill on

the dem object administration freddie mac hoe . ly on livestock wolf t is vital we kvent do demon protect s program to t only the livestock and i lestemb. the chair: any member. opposition. e in harmingse people who hiven livestock. i want to be very, very clear ain spot ever sobbed that ment op in 01 ks this pralt to be recouping farmers and rarpers is in the ag bill it has president come to the floor yet. nf.he we aren't doing so we e seep the cut and funded this fish and wildlife and now you are taking the fish fish andife out of the wild lir agency. are doing rgs ou cotcht canning to fund it out of the interior bill. the e.p.a. was already retuesdayed $1 bill more than. proper tects the tell of our environment amming clean air apcompleen water and i cannot support. i will join you to yoip you where this be lock the 201. it. cannot spot it it be longs and i urge my colleagues to reyeg amendment. and i yield back. harlte . the gentlelady yields back. > the original program demonstration program was thrsed in trine and it waste pr

and the financial dysfunction that led to '07 and '08 began, not only with the fannie mae and freddie mac policies of the clinton administration, but with the financial deregulation policies of its last two years. then in its final year, 2000, his assistants, treasury secretary, proposed regulation derivatives. he killed it. and he then passed a bill and signed it in the waning weeks of his presidency banning regulation of derivatives. so that the banks would really be beholden to him and his first speeches on the door of the white house came from those banks. donald trump needs to talk about that. we need to throw that left hook. we need to echo his rhetoric on that stuff. what about free college? okay. you don't have to dip into the treasury for free college. just make college contain its costs. trump should say that no college is going to get a dime in pell grants or student loans for its students unless it meets three criteria. one, its faculty works a minimum of 12 contact hours a week with students. no more six hours a week for professors. number two, they spend 10% or less on their

but if you look at the standards for instance over on the loan sales that fannie mae and freddie macave, much higher standards. the fha kind of brings up that floor of standards. and many investors are already doing good work. some are probably not. and so this basically just helps cover the bases so there aren't problems. >> all right. thank you very much, sarah, we appreciate you're being with us. diana, always good to see you. michelle. >> thanks. >> now to wilfred frost in london with a news alert. wilfred. >> michelle, thanks very much. yes, george osborne has resigned as his role, no longer the finance minister in the uk, and philip hammond has replaced him. philip hammond was the foreign secretary, he's now the chancellor. and he was the first to arrive here at 10 downing street after theresa may became prime minister. he like theresa may seen as a safe pair of hands taking over. the other big, big surprise is the second person to arrive after mr. hammond was boris johnson. of course many people thought his career was in tatters after he led the leave campaign and then couldn'

obviously, the reform of fannie mae and freddie mac are a huge issue and people pushing for them to be fully privatized and others saying that's not really feasible at this point s. that a key part of these discussions or now? >> access to credit is critical and gse reform needs to take place and been in conservatorship for seven years and part of the discussion is to how to reform it to make sure that the -- there's a consistent housing finance system that our buyers can use. >> what are you guys for coming to them? >> we believe that gses, there has to be some form of government guarantee to bring the private sector in, keep interest rates low so, you know, it's not going to be the same model but there has been legislation out there on a bipartisan way, johnson crappo in the senate, corker, warner, we want to work with those. >> you brought up the issue of general credit affordability to get a mortgage and buy a house and it's become a theme and the oversupply might say was the problem the last time around. how do we strike that balance, especially when it seems there's, you know, si

still low and here's the thing fannie mae and freddie mac saying finance activity up 20%.in to grab low rates. >> i i said on this program i mortgage rates get down to 30% eerch on 30-year fix i was wrong. i was thinking that decline in the tenure yield now up -- >> 3.45. we've seen banks offering near 3%. interesting for that. regional. stuart: depends how many points you pay. now look at the big board no fact on the news we brought to you about existing home sales. 5.5 million per year. but we have another new high or for the nasdaq composite that's a 2016 high but high nonetheless. two moments ago above 5,100. take a look at facebook it's still very close to all time high it was at 122 earlier. now it's backed off just a little. but look at general motors we say that is one of the big stocks of the day it is up 3%. good profit last quarter. raised its forecast for the year. investors love it. how about the price of oil. not doing that much this morning. 45 dollars a barrel. now we're in the thick of the summer driving season. and look at this. the average price of gasol

the races and the financial dysfunction that led to 07-08 began, not only with the fannie mae and freddie macicies of the clinton administration but the financial deregulation policies of its last two years. then in the final years, 2000, his assistants, treasury secretary, proposed regulation of derivatives. he killed it and he then passed a bill and signed it in the waning weeks of his presidency banning regulation of derivatives. so that the banks would really be beholden to him and his first speeches on the door out of the white house came from those banks. donald trump needs to talk about that. we need to throw that left hook. we need to echo his rhetoric on that stuff. what about free college? okay? you don't have to dip into the treasury for free college. just make college contain its costs. [applause] trump should say, that no college is going to get a dime in pell grants or student loans for its students unless it meets three criteria. one, its faculty work as minimum of 12 contact hours a week with students. no more six hours a week for professors. number two, they spend 10% or less

if you look at his record, he was against tarp and is in favor of privatizing fannie mae and freddie mac trump also has been open about repealing dodd frank and he would be against future bailouts. that is akin to what we saw out of the crisis. picking mike pants -- this is a guy who has been act of about being against tarp and for central policies that are anathema to many in the banking industry. it's a wing of the party that people worry about in terms of what a would do going forward. aether or not we would seat donald trump administration strip back. frank when you talk about the specifics, it's different. people in the financial industry want to roll back some of the to go onn, it's hard when you have no details to go on. it is like shooting into the ee there for many people. financial industry is watching closely in terms of specifics. david: one of the reports from the weekend talked about contributions to the campaign and the nomination of mike pence might complicate things because a number of egg potential money donors to the trump campaign are doing business with indiana. will

>> 30 years freddie mac 3.84% that's up a tick from 3.4. 5% the week before.plications to buy and refinance a fallen 11% in the last week. >> did you notice that? going to refinance have done it and sometimes done it twice. you can't go much lower on these rates. there's a lack of homes for sale right now and prices have been is rising so combination of that has lagged the market. >> i have this dead wrong couple of weeks ago when the yield on tenure treasury dropped 132 i thought 30 fix rate mortgages here we come. well three and a halfs percent i've got it right. very, very sorry. [laughter] >> any response on home builder stocks we have 348 of the 30 year fix rate loan. no, i don't expect any reaction, there you go. big names we're watching them lower profit in the outlook from ford it's down, groupon outlook with down four 8%. grow on now turned up, 27%. [laughter] that's a big turnaround. [laughter] >> how about whole foods lower sales feeding competition down it goes. big movers with big names here. grub hub you know you order food online you have it del

and, in fact, freddie mac is saying these low rates could hold through the rest of the summer. .ld ol' 30-year fixed rain loan which we used to love. liz: that's right. stuart: the republican convention begins monday in cleveland. many are concerned about the safety of the event. brian casey is with us. cleveland city councilmember and member of the state of the committee. brian, welcome to the show. as you obviously know by now, the new black panther party says it's going to attend outside the convention and they're going to be carrying guns. how do you feel about that? >> well, first, stuart, thanks for having me. it's concerning. it's concerning not only for radical groups like the black panthers but for any radical group that would be coming in as well as any rogue individual. iowa is an open carry state and there's the second amendment to the constitution that allows individuals to have the right to bear arms. however, in this case what we need are calmer heads and individuals who will not go rogue on us here in the city. stuart: now, as i understand it, nobody within shouti

and the financial dysfunction that led to 2007 and 2008 began, not only with the fannie mae and freddie macinistration, but with the financial deregulation policies of its last two years. then in its final year, 2000, his assistants, treasury secretary, proposed regulation derivatives. he killed it. and he then passed a bill and signed it in the waning weeks of his presidency banning regulation of derivatives. so that the banks would really be beholden to him and his first speeches on the door of the white house came from those banks. donald trump needs to talk about that. we need to throw that left hook. we need to echo his rhetoric on that stuff. what about free college? ok. you don't have to dip into the treasury for free college. just make college contain its costs. [applause] mr. morris: trump should say that no college is going to get a dime in pell grants or student loans for its students unless it meets three criteria. one, its faculty works a minimum of 12 contact hours a week with students. no more six hours a week for professors. number two, they spend 10% or less on their admini

freddie gray case. the state attorney should be charged. his reason after this. see mac to the people of baltimore.rd your call for no justice no peace your piece is needed as i work to deliver justice on behalf of this young man. if you're taking multiple medications, does your mouth often feel dry? a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from a dry mouth. (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. >> for the youth of the city i will suggest on your behalf this is a moment this is your moment let's ensure that we have peaceful and productive ra