he'd been boss of goldman when many of the aig deals were struck. >> the ceo of goldman sachs was in the room during these negotiations and i know this from somebody who was also in the room at the time. whereas the primary regulator of aig, no one in the office of supervision in the room at the same time. >> it's the heir principle competitors who fell at the wayside. their guy was in the chair. their guy is going to maintain some influence. you know there's just a point where you sort of -- you have to start shrugging off the notions that this is some kind of conspiracy thinking. and you've got start saying, gee, one plus one equals two there is a problem. >> reporter: goldman was also permitted to convert into a mainstream bank giving access to limitless cheap funding from the u.s. central bank. with its main competitors out of the game, goldman's profited handsomely. the firm recently chose to buy back the u.s. government's share in the company and to the profit to the u.s. taxpayer but freeing it from restrictionses on bonuses and pay. they may have been too clever by half. alre

>> right message for the goldman folks.eople to cancel his $3 million birthday parties and don't be ordering any $35,000 shower curtains. congress is going to be right back to taxes their 90% taxes on their bonuses. >> this the right message for america? >> right message for ten million dollar people, wrong message for america, if you want to spend your money, go out and buy something you need. i have a 15 grrbld cd should i upgrade.... >> wait for cash for klujers for tv. that is surely coming. >> this invite message but he is not sending a message to america, she sending a message to employees. there is a lynch mob out there. don't get hung while you are doing work. goldman sachs is the greatest company in the capital market. if you wanted to share in their success, buy the stock. >> the stock has been on a tear recently but quentin, right or wrong message? >> look, goldman sachs was owed $6.35 billion by aig and they got it because gostz rescued aig. then they did an accounting move and hide all their losses in a previou

with goldman. that's the way they're going to get paid and the way they get paid on the st. the only thing lloyd blankfein is saying there's enough sniping, goldman envy on the street and they make money and smarter than other guys on the street, they will get their compensation and saying, don't buy fer aris or look for ways -- >> don't we want to stimulate the economy? wouldn't it be better if goldman people bought new stuff. >> here's the outrage, not necessarily about gold man. the public feels we took a risk and bailed out these banks and didn't know if it would pan out or not. now, there's all this unease, you see this about the polling about the economy, barack obama's approval ratings are going down. when tai took this heads i win, tails you lose risk and they will make this money and spend it and leif high off the hog again. people don't like it z tasteful. democrats demonized the profit. >> people are worried we gave the banks all this money, how did it turn out. >> here's how it turned o

. >> the next trade, goldman, goldman, goldman. they're in the news every day. the s.e.c. looks into trading tips. meetings with some of the little closed groups. what do you think about all this? are we continuing to see the press pick on goldman? >> yeah, that's exactly what we're seeing. the way baseball fans pick on the yankees. look, leave the guys alone. go after things that make sense. morning mitings, weekly meetings, you know, a lot of this stuff is nonsense. i'm sure a lot of people at goldman wish they never went public because they have to go with the scrutiny of some of these things. there are a lot of people doing wrong things out there, goldman sachs is not one of them. >> talking about goldman and this whole trading tips, the only big disappointment out there is if you're not one of those people that's getting the information, you say i'm not big enough to get it. but what's the performance of goldman in the face of this negativity? what are they doing? it's continuing to exhibit it is the best of breeds and the stock continues to move higher in what was a

goldman sachs got up to $170. it's pulled back. it's the trash financials, citigroup names, that have pulled higher. if you look at the kre, the regional eft, it's up 5%. kce, up 5% on the month. kce capital markets exposure up only 2%. the trade going forward is at what point does that begin to go back to the way it should be, which is buy the best in breed and set trash. >> at the same time just -- >> the huge short interest in lot of these names. >> that's true. >> those are the ones where you saw guys rush in and cover the shorts and get long. it was the trash. >> here's the thing, sorry to jump on you, about the regionals, though, they are the ones that could be taken over. nobody is taking over a jpmorgan, it wouldn't be a shock to see any of the regional taken over and have it be a creative deal to somebody big. so, that would make me afraid to short them even if the valuations are really stretched. >> what kind of time frame are we looking at? how much cash do some of the larger financials have in this environment? >> they

tonya, why are we so mad at goldman sachs?heir risk is half of what it was a year ago and they paid back all the t.a.r.p. money and the government made a very good return. why don't you let them out of jai jail? >> i hardly think anybody's at risk of having their fry come to and liberty curtailed. the issue is goldman opted to fundamentally change its business model when it became a bank holding company. while it has two years to reorient its risk, people don't see any sign it's changing its fundamental business strategy. it has to and has two years to do that and we need to know it's acting in good faith. >> i asked you why you're still mad at them, you're mad because they changed their business strategy? >> no, that's not what i said. the outrage you're seeing is a function of the fact it changed its organizational model turned itself into a bank holding company and has a much bigger cushion than before and at the same token has to act more conservatively, people want to make sure -- >> that's not why we're mad because they

was making $500,000 at goldman sachs. this person was making 1.5 million at citigroup. so it's really a sort of issue that's going to be coming up -- >> hey, charlie. >> yes, go ahead, i'm sorry. >> why do you think someone at goldman sachs would tell you this? do you think they're trying tospread spread around the bad pr? goldman sort of unfairly has been everyone's whipping boy lately. >> i've written that. i've written both negative stuff, nasty stuff about them, but also that they were i believe in some of the press accounts way over the top. >> insanely vilified. >> insanely vilified. because they are not the cause of the subprime crisis. citigroup, merrill lynch, you name it. lehman brothers, bear stearns. why are they telling me this? why does anybody tell me anything? i mean -- >> they can't help themselves. they hang out with you and people can't help themselves. they come over and talk to you. i've seen it myself. it happens all the time. >> obviously, goldman sachs wants to spread around the nasty stuff. >> i t

and coming up, goldman's bonus dilemma.e firm reward its traders for bringing in record profits without drawing fire from main street? charlie gasparino on the story when we come back. welcome to the now network. population: 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry. and 1300 are secretly checking email... - on a vacation. - hmm? ( groans ) that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. sprint. the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com. >>> market rally under way as that summer rally rolls on. we had better than expected news on the housing front once again today, and we are at the highest levels of the afternoon. financials, technology, retail, all among the big winners today-k and we'

. >> the next trade, goldman, goldman, goldman, guy, goldman is in the news every today. on focus today, the s.e.c. looks into trading tips, meetings, meetings with some of their little closed groups. what do you think about all this? are we continuing to see the press pick on goldman? >> yeah, exactly. the way baseball fans pick on the yankees, leave the guys alone. go after the things that make sense. morning meetings, weekly meetings, a lot of this stuff is nonsense. i'm sure a lot of people think that goldman sachs never went public. i don't buy it. there are a lot of people doing wrong things. i know lloyd personally. he would not allow anything to go on. >> and talking about goldman sachs, the only big disappointment is if you're not one of those people getting the information. it's the best of breed, and the comments continues to move higher. >> and these guys are willing to take risk. whether we like it or not, with our money they took risks, but they gave us a lot of premium, so you have to like the risks they were willing to take and how they have been taking so

people who invest in goldman sachs will allow goldman sachs to take risks precisely because they know the government will be there to bail them out if something happens. >> i disagree. that's not going to happen again. >> how do you know that? >> let me have my 20 seconds. the reality is gold manz sacks w goldman sachs was awarded because of the state help and now the state has the right and responsibility, the government has spinal to regulate goldman sachs, to make sure the companies are not invested in these irresponsible credit derivatives again so it's going to get the taxpayers on the hook again. >> trent, are they too big to fail? aren't we the ultimate backstop if they do feeail because the government said they can't do anything but support goldman sachs? doesn't that mean you and i are the ultimate backstop if they get some of this trading wrong, which is clutly a possibility? >> i think it is a possibility but i think the too big to fail view in 2008 and too big to fail view now are two totally different things. i think any bank, including g d goldman sachs who gets way too

they keep moving. >> you can't forget goldman sachs and the activity in 24 hours. it was touched on today. that report this morning is how they said they have made $100 million at about 80% of their day. that's good for the markets. that's good for goldman sachs that's approaching 170. meredith whitney was spot on. this and i think people looking for and it chasing it higher. >> i want to button this up. you talked about it a lot, they had earning out today. not too bad. and more importantly for that draw bridge fund which had temporarily suspended those redemptions. >> you have to name the draw bridge fund. >> what do you do -- >> those guys stared death in the face a few months ago and they were able to survive. a like blackstone. i think it is a more interesting trade right now. although fortress, at $5, you're not really risking all that much, frankly, i would rather be above $14.5. >> the market loves cash for clunkers. traders have bit up. about 19% in the last five days. the big question i have, are we just selling cars now so we won't sell them later on? >>

if you like goldman sachs buy some protection along the way. it could be a great play, because you better have protection, because goldman sachs looks awfully weak. >> new 2009 high. >> surging sector. the railroads, they have managed the expenses at the nominal, pricing power, but this is a nerve torrie story. we've worked off inventories and now we're going to restock as we move forward in the second half. the rails are definitely in play right here. iyc, the transport etf, take a look at that. >> just better careful. volumes are down still, the transportation. >> what a killjoy tonight. >> the transportation index has had a -- i would be very careful. i agree with you. in that space, i like csx, they're the cheapest of the bunch. >> the northern southern has the highest exposure to the auto industry, but you look across the industry, it makes complete sense wile they're moving and starting to see stabilization. what do they move? chemicals. chemicals have been on fire. coals are back on fire. now you get into the autos. if they start produci

we've talked about a lag in morgan stanley and goldman sachs. look at goldman sachs today. it was in negative territory almost the entire day. be careful. keep an eye on goldman sachs, volatility has dropped the stock down to a 19 versus an 80 just a couple months ago. i'm talking about a stock that's been flatlining. now it looks like it's falling off. if you like goldman sachs buy some protection along the way. it could be a great play, because you better have protection, because goldman sachs looks awfully weak. >> let's move on to another strong sector today, and that was the transforce. you flagged this one. >> surging sector. the railroads, they have managed the expenses at the nominal, pricing power, but this is a nerve torrie story. we've worked off inventories and now we're going to restock as we move forward in the second half. the rails are definitely in play right here. iyc, the transport etf, take a look at that. you also saw participation from the names like fedex, as well and the truckers came to play. >> just better careful. volumes are down still, the trans

look at shares of goldman sachs. it had been the market leader but lately a lagger trailing down 2% as the rest of the market has rallied by about 7%. pete, you flagged this for us. okay, joe. let's talk about the fed meeting. >> i love deutscha bank. >> getting back to goldman sachs? >> it's showing a little weakness recently. a couple days ago it was 170 and now 160 so $10 is a significant pullback but are people just taking a little money off the table and moving it into the cities and bank of americas, maybe a little beta, little bang for their buck looking at those folks as the consumer starts to repair itself and you start to see the economy maybe show some signs of strength who has the most that were in the write-off category, it was definitely those two names and morgan stanley, goldman sachs a lot less. >> we talked about this today.y. no way the market continues to move higher without the participation of a name best in breed like goldman sachs. you can't tell me people moving money from goldman sachs into

joe focused on goldman sachs. 21st when it was trading down, four days later it was 80, and it has a look back. look at the momentum in this stock. you have bank of america going from 4 up to around 18. the amount of profits in the last five months have been absolutely outstanding. what i say about goldman, same type of look in the chart. you've got the positive moving average line. price action looks different. decent. a little bit of a high or topping pattern here. but protect your profits at this point. goldman got above 160, put a stop in at 157, doesn't mean you have to liquidate your whole position, but if the market starts to come off and people start to become skittish, we'll have a pretty good downdraft in a very quick way. why leave profits on the table? take 30% of that and put a protective stop on it. i would put it at 157 close only if it closes below. take some profits off the table, that will never hurt you. we look at another recommendation that i put out on july 8th. and that was general electric.

of goldman also says inventory is at historically high levels right now. and profit at b.j.'s wholesale club slipped in the second quarter because of weak sales and lower gasoline prices. but managed to top wall street estimates. the retailer also raised its outlook for the rest of the year, but did trim its sales forecasts. so sales are coming down, but profits are going up. so they're cutting costs. >> so we're getting a lot of responses to our lehman inquiry. of. >> so if you've just join's us, bbc is working on a tv movie about the demise of lehman brothers last year, and we were asking who you would cast in the lead role of dick fuld, former ceo of the company, tim geithner who at the time was the new york fed president. now, of course, treasury secretary. and ben bernanke, the fed chairman. and we've gotten some inspired e-mail.

silence is goldman. talking about a story where the ceo left a voice mail for everyone saying don't show off, keep it on the down low. really what it says to us is it seems like being rich, making money, out of favor right now. is that the case? let's bring in jonathan capel, yale associate professor of politics and management, joe wisen thal. let me start with you. if you look at all of the negative press that goldman sachs has been getting lately, making record profits, also a lot of the press is good b. money being funneled to goldman through aig, government money, that's the reason they're making record profits, forget the fact they already paid back the money. is it out of style to have money right now? >> no, i don't think so. and i think the idea that the message here is don't be rich and that people at goldman sachs shouldn't make money, that's a little bit silly. in my view, what this is good risk management. as the leader of goldman sachs, he says, look, this is not the time to be the dufus tha

j jimmy goldman, thank you very much f. you hear anything new, just yell, get you back in. >>> to my speed trade segment. brian institustutland and scott nations, station thats shares chief investment office and options actions trade investor also. options actions, this is good stuff. i want to talk bank, zero interest rate, steep upward curve, even a banker can make money and lots of money after that and can even grow out of their toxic assets, what do you think of that. >> i think you're absolutely right. don't find a bank you kcan buy, buy a bank you love. >> buy any bank. it's gone public, that has the point i'm making, it doesn't matter, this is an economic led driven recovery. >> the banks you mentioned are bottom of the barrel, city bank, bank of america and aig. the reason they're getting a pop is because people put so much money in the good ones they have to cast their net. i couldn't don't want to buy those on the shelves while people pass all the good banks. >> what's your favorite bank. >> jpmorgan chase, best c

goldman does not. jpmorgan -- goldman is almost jpmorgan stripped of that element. >> goldman sachs is gloria, jpmorgan blanche for all of you odd couple fans. i like what he's saying but i think you will probably be short jn morgan here with a tight stop. goldman sachs, i think got too frothy, this 165 give or take level. we sort of moved around here for a while. i would rather be short jpm outright. >> i don't disagree. i will tell you this, if the market starts to go lower, i will start to xwu that. right now dollar for dollar, i will get shorter jpmorgan on the way down. >> and past trades, you can do sectors as well, rick. take a look at resources, commodities, which are obviously getting beaten up lately. and what do you want to do? discretionary, take a look at the travel and leisure names. those are the names you want to short against what we believe will be the beneficiary at the end of the year, commodity resources. >> that's a great point you brought up that we missed out on the first part i

>> goldman is really interesting a fight to do another documentary i may want to choose goldman sachs of they will let me get in there i doubt and of course, there be no pictures like quarter you going to show people? people at desks all day long? not very exciting. [laughter] is a fascinating firm. i know many people from there i have followed it closely it is a strong culture it went public 1998 and many competitors said that will be the end wants the partner's cash out and they take their money the culture will cc and they have been dead wrong. they have this team belief that i have not seen in other firms they always go out with each other constantly bear altogether altogether but it does allow them to communicate and they have been many ways they give more power to their risk controllers and other firms. goldman did not screw up in terms of making bad decisions and taking on risks. they were on the brink do not get me wrong they needed the u.s. taxpayer money at as much as anybody's september 18 goldman sachs was going to go out of business as was morgan stanley and everybody it

don't get me wrong, there are plenty of reasons to be outraged at goldman sachs. start with the ten billion they got from the government right before reporting their richest quarterly profit in history. just don't blame them for doing what all businesses do, providing extra services to their best clients. >> the blue chip index rose 37 points while the nasdaq added three points. to learn to learn more about the stories in tonight's broadcast, to watch our streaming video and to take part in our daily blog, go to "nightly business report" on pbs.org. you can also email us at nbr@pbs.org. >> susie: and finally there were 10 million victims of identity theft last year. the nation's chief banker was one of them. ben bernanke and his wife were victims of an elaborate identity-fraud ring that stole more than $2 million from people around the country. the crime ring was made up of pickpockets, mail thieves and purse snatchers. one of them, allegedly stole mrs. bernanke's purse. a few days later, someone cashed checks on the bernanke family bank account. because the bank

>> i own goldman. i'm everything goldman. most of the guys that run goldman i used to work for. you go back to what meredith whitcy said, $186 price target, they crush. it is a trader's market. these are the best markets we've had in a lifetime, probably will have in another lifetime. you wonder how long it can last. they will make 16.5, $17 last year and slap a ten multiple and we're right at 165, $170. if you buy goldman you'll believe the tape will go higher. >> leave it there. on tonight's "fast money" we have the headlines from the cisco conference call. "power lunch" breaks down the ways to guard your portfolio against inplags. >>> the last market moving after hours report, cisco lays out with tech spend sg headed and the fast money guys give you the real time trade. and rick santelli. he is as mad as hell and not going to trade it any more. >>> get your portfolio in order, a four star general is leading the chart for the future of defense. we give you stocks to salute on america's post market show tonight. well if you're hurt and can't work it pays you cash... yeah to hel

goldman sachs and morgan, they surged, pulled back. look at citi. in five days, citi has gone from $3 to nearly $4. incredible volume out there. today in the options world, 15 million contracts again. unbelievable activity. look at wells fargo, though. this is one of the banks that has not paid back the t.a.r.p. there is nine who have. they're not one of them. goldman sachs and morgan stanley, by the way -- >> the problem with the financials in terms of a leadership group, great data, but also we need new leadership grouped. we need groups other than the financials, other than technology and materials to lead us higher. >> but wait a second. >> i'm not sure. >> we have been sharing leadership along the way. back in may after the stress test, it was the financials. at one point it was energy. then it was all about technology. so we're sharing leadership as we march higher. right now i don't know necessarily if you need one individual sector. you just always need someone to carry the baton.n. >> two weeks ago it was technology. then the financials. th

famous 13.5 billion. >> of which 5.6 billion was directed to pay goldman on. government could have stiffed goldman and chose not to -- >> very important. >> another pile of worms. the bottom line is, should the banks get the fees, we'll talk about that [ engine revving ] [ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz, so you're not getting a check. well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance, where if another orbitz customer books the same hotel for less, we send you a check for the difference, automatically. - oh, come on. - enough! you get half and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah-- his and hers. - ( crowd gasping ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion. - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( crowd gasps

is so connected with goldman sachs. out smelling like a rose. >> goldman was at $48 and about to collapse. everybody who was pulling their money out, short the stock, knew that. there was a tremendous raid on goldman, a five-day raid. it was this close -- >> okay, great. so hank paulson makes some policy moves. the government moves and listening to goldman sachs, now they're doing great, soaring when everybody else is collapsing. >> gretchen would have been thrilled if goldman had been under. i, myself, like my atm machine to work. >> you're avoiding the bigger question, though, jim, doesn't goldman always get the good deal from the federal government? we can go back to the mexican bailout crisis 1995. we were talking about mexico and the peso for years before figuring out it wasn't a mexican bailout. it was a goldman sachs bailout. >> that's not true. >> bob reuben and the same thing with aig. that was about helping goldman -- >> $5.6 billion that it was on the hook with aig. if you go to the bailout, you will find mul

>> goldman is really interesting.you know, if i could do a documentary, another documentary i might want to choose goldman sachs, if they would let me actually get into. i doubt it. millicom of course that would mean any pictures. you have to think about those things. what he going to show people desk at all but one. not very exciting to goldman is a fascinating for. i know many people from the. i followed it closely throughout the district it is strong culture golden went public and i think 1998 and many of its competitors at the obedient. oncell the partners cash out anybody takes their money, the culture will seize. and they have been dead wrong. they really inculcate this key believe there that i haven't seen it other perfect they are always gng out with each other constantly. they're all golden people. they are altogether it really do allow them to indicate and they do have i think in many ways they give more power to the risc controllers than do other firms. golden did not screw up your in terms of making bad de

jim goldman-u get ready for that call. porter bibb, we're going to get back to you in just a second. but we're going to take a closer look at cisco's earnings with eric stuperger, senior research analyst at morgan hill. what do you think of those comments jim just read to us? >> i was encouraged. i think cisco's doing a very good job on the expense management side. the revenues probably were in line, maybe even a little less than what people had been hoping for in light of some rising expectations. but clearly the company's executing on the expenses. >> and what about that quote where he said if they continued to see the positive order trends they think they may have seen a bottom in q4 or at least will look back and say that was the bottom. was that new information to you? >> so last quarter they had suggested that they were seeing some degree of stabilization, i would say incrementally this is somewhat more optimistic. so yeah, i would say that's a step in the right direction. >> you think their growth, though, is going

beaten up on goldman in the past.it is so over the top, i don't think they are the cause. i don't think they are the main culprit. here's the point thaw are making. this is in my book. the sell outs. i believe in early 2006, maybe late 2005, he lost a lot of money. i talk about this in the book. he lost a lot of money in the two years where the market was going down and he made a lot of money. i asked him, how did you know to short the subprime market? it was a weird thing where two analysts came into the office from bear sterns and lehman brothers and laid out the charts and graphs and said here's how it's going to happen. it will unwind in 2006 and will be a big explosion. think about it. this is two firms that were so heavily tied to subprime and real estate where you have an analyst telling brokerage. what does that mean? does that mean they are selling cdos and stuff and they are telling people to short? sometimes there is a conspiracy. >> lots of confusion as well. >> you know where i'm going with this. >> from

let me point this out, i have been beating up on goldman for years. but even i, it does raise my eyebrows as to some of the stuff coming out now. now, you know, we may find out in a week from now that goldman sachs is really the evil empire that everybody says it is. you keep reading about lately, but barring that type of evidence which we don't have right now, i don't have, maybe it's there, but i don't have it. to basically conclude that this is this sort of modelific bad firm is insane. does that equate to anti-semitism, people, there are people who feel strongly about that. a degree of it is naivety. some of this stuff gets written and gets blogged about and commented about. i read some stuff coming out of cjr, which was just asinine. and i have to tell you -- >> they don't understand the business world, you know. >> people that wrote this used to work with me at the "wall street journal." that shows you -- >> dick bove, what do you think about this? are they pulling the j-card here or is this legitimate, you think? >> no, i think it's furious. i

is goldman sachs giving big tips to clients and rushing the rest? we will go inside what is called the trading huddle. here is what else is on the menu. >>> i'm phil lebeau are you clunked out? if you are are you are not alone a lot of dealerships around the country are clunkered out, they are stopping clunker sales well before the 8:00 deadline tonight. what are the implication for dealer stocks? talking about that in a little bit. >>> i'm hampton pearson in washington. 81 bank failures and counting, fdic strategy for stemming that tide be a greater role for private equity firms in details coming up. >>> i'm darren rovell, peyton manning's brother eli makes more in salary but peyton pulls in more in endorsements. next hour, we will ask the colts quarterback what that means? >> football, right? >> i love peyton manning. >> you were out of your seat. >> could you tell? was i blushing? >> a little bit. >> other kind of action, market action, stocks going for five in a row, s & p 500, 2003, bob pisani kick it is off at the new york stock exchange. bob?

so start taking profits in big caps, jp gormans or goldman sachses. are there buying opportunities here. >> i think this entire sector was tired. there was concern they were going to be changing mark-to-market and changing it back to what it was. there was talk that there's a lot of news about the financials when we don't know that earnings are normalized. we've had a very big run. a couple names still look interesting, jpmorgan seems to be getting turning the corner on some of that consumer market portfolio. >> wells fargo has been a fascinating stock. rallied all the way back to the 29 level. on the premise they're going to pay their t.a.r.p. back by earning their way out of it. now i'm hearing from a couple people that maybe there's another secondary coming from wells fargo. that would be very interesting. what would be more interesting to see how it trades after the fact. i happen to think it's a short here. i think the financials are short here. i know that's a dangerous trade but that one would really get you going. >> how would you do that? >>

they were trying to chase goldman sachs, blackstone.ally wanted to role the dicd and get to be -- we were right in the middle of the back. lehman brothers was the fourth largest investment bank. we h smaller investment banks lower and bigger investment banks above us, and after the glass stiegel actas taken apart in 2000, and patrickid a wonderful job explain what happed. that alead -- the graham lease act allowed the big commercial banks to complete against lehman so put lehman brothers in a very, very dangerous position, because now lehman brothers is small to mid-size investment bank, and now weave citigro, bank america, these large, massive commercial banks with massive deposits -- you have to remember, an investment bank like lehman brothers doesn't take in deposits. it invests money around the world and sells stocks and bonds, about it doesn't have people'soney in the bank the way bank of america and citigroup do. they have over a trillion dollars of real money in those banks and those are savings accounts and checking accounts, p

=lvn >> we keep beating up goldman sachs. we need goldman sachs to do well. leave them alone. stop beating them up. they're good for the market and the economy. enough. >> i think they're playing off the "rolling stone" thing. >> thank you. >>> up next, microsoft versus yahoo and a new rivalry is tearing apart a silicon valley alliance between apple and google. we'll tell you who's down for the count and who's up. we'll be back. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? yes. discount! are you going to buy o

i'd own alcoa here and i do. >> goldman sachs is a drop. this is pretty amazing in terms of the story. we all heard about the firm's record trading profits, $11 billion compensation fund or what might be they don't know until the end of the year. in the wake of the government bailout that reignited a wave of populist anger and caused damage to goldman sachs' reputation. as goldman struggles to defend its image, well, you guys have an idea? turn lemons into lemonade by having a new mascot? >> that's not a mascot i would go with. >> vampire squid who sucks from the face of humanity? >> i'm confused. >> keep -- we need goldman sachs to do well. leave them alone. stop beating them up. they're good for the market and the economy. enough. >> i think they're playing off the "rolling stone" thing. >> thank you. >>> up next, microsoft versus yahoo and a new rivalry is tearing apart a silicon valley alliance between apple and google.. we'll tell you who's down for the count and who's up. >>> let's get these breaking headlines to you. according to "th

goldman sachs is still strong. you would think that this would negatively impact goldman sachs or morgan stanley and it is the financials today that are actually leading the market higher. look at jp who are began, above 40 bucks since god only knows how long. morgan stanley pressing 30. 3-4% and wells fargo and u.s. bank corp. the financials are strong and you would think it would be the market names that would be weak in the face of the news. >> that are goes to the strength of the market. the market would have been down 300 points on this. >> let's move on. shares of caterpillar and rallying more than 4% after reiterating the outlook under various scenarios. it's not willing to time out the economic recovery saying the timing is a little bit uncertain here. it seems like very, very good news. >> it is good news. you have to remember they will be selling into the areas that are getting the stimulus money too. they have come way down from where they were at the highs. they have gone in and made cost cuts. they pro

jim goldman has the latest. >> that conference call still is going on right now. very good news now and a very optimistic tone from the company, strong surging revenue in orders during the second half of the quarter. but let's get to the guidance for the fourth quarter. as soon as these numbers came across and they before being discussed on the call, we saw that stock move up. the company now anticipating revenue up 10% to 20% offering now a range of basically 1.24 billion to 1.35 billion. the street consensus was just over a billion dollars. so a sizable increase in sales there. and also on earnings, the company now expects to rush to profitability in its fourth quarter with a break-even to four cent a share gain. that compares to a four-cent a share loss as far as consensus is concerned. so clearly, applied materials is seeing a nice increase in orders. the solar business also to borrow a pun, a bright spot for this company when a lot of folks thought there was a glut of solar panels on the market. but applied materials sees nice growth. china expected to grow a

they got a downgrade from goldman sachs. today the stock was moving lower, yet they were buying the up side. after the august call, at least worth a look. when you see these things trading at 30 cents, 35 cents, cheap shot. only a week for them to perform. but look at what also goldman added, they raised the price target from 41 to 43. >>> the fed left interest rates near zero today. will we see higher rates in the future or extraordinarily low rates about to become just ordinary? joining us today, greg fisher from fisher and associates with more how to trade alongside the fed. great to have you. what's your best case scenario for the fed and how do you trade along with the fed? >> what's important is for investors to remember the linkage between monetary policy and their investments. when we look back over time we've seen plenty of history, '40s, '70s, with recession, inflation. when interest rates are low, make sure you have exposure to small company stocks in your portfolio. this is kousht in counterintuit. everybody thin

we saw that with goldman today, goldman getting beat up from regular critics because they went out andade money. and you know, we want these banks to be strong and healthy. they're still the best in the world at taking capital and delivering it in the most efficient way to its best uses and that returns value for our economy. we need to back away from that vengeance that we had a few months ago and keep us focused on building a strong financial system. >> but paul, we often see from this white house vengeance, speculators. even the most recent speech it seems constantly president obama likes to decry, deride, be derisive about wall street. >> i have to part company with you there, michelle. i think the president's rhetoric and actions and his entire economic team have been extraordinarily responsible throughout this process since january 20th. in fact, when the president got a bit out front early on, when some of the bonuses were discussed a few months ago, i believe it was a wednesday of that week, it was by thursday the next day he walked back from these comments and didn't allow the

don't get me wrong, there ar plenty of reass to be outraged goldman sachs. art with the ten billion the got from the government rit before reporting tir richest quartey profit in history. just don'tlame them for doing what all binesses do, providinextra services to their best clients. c theluchip ind rose t 37 points while the ndaq added ree points. to lea to learn more about the ories in tonight broadcast, to watch our streaming video and toake part in our ily blog, go to ightly business report" on pbs.org. u can also email us at nbr@pbs.org. >>usie: and finally there were 10 million victi of identity theflast year. the naon's chief banker was one of them. ben bernanke andis wife were victs of an elaborate identity-fud ring that stole more than million from people around the country. the crime ring was madup of pickpocket mail thieves and purse snatchers. one ofhem, allegedly stole mrs. bernanke's purse. a few days later, someone caed checks on thbernanke family nk account. because the nk had been alerted out the theft, no money was withdrawn. so paul, if t

now regulators want to know more about bonuses paid to goldman sachs' employees. in a filing with the securities and exchange commission today, the firm says it's cooperating. goldman also said its board has gotten letters from shareholders, demanding it investigate compensation and consider reforming how employees are paid. the government also wants information about goldman's use of credit derivatives. those risky derivative contracts caused lehman brothers to collapse and almost took down a.i.g. >> paul: tonight's "street critique" guest says the tech market's at a critical point. he's todd harrison, founder and ceo of minyanville.com. todd welcome back to nbr. >> it's great to be here, paul, thank you. >> paul: you're a veteran trader. what are you seeing that has you so kerned about the tech. stock? >> well, as a trader i'm more concerned, i'm less concerned with the destination we arrive at, versus the path we take to get there. so i'm looking for risk reward constantly in the marketplace. and i think that we're at a juncture right now for the technology sec

through goldman sachs, see how it trades.le down 4%. >> even teenagers are scaling back. not buying all those hooded sweatshirts and t-shirts. they're clearly losing business to aeropostale. >> a pop for edwin drake. he drilled the first oil well in pennsylvania. hey, joe, this is a pretty need one. hey, by the way, have we drilled any wells since then? >> let's talk about this one second. he didn't patent the process of oil drilling. think about that. so in 1859, he drilled the first well. 1863, he loses all his money. 1880, he's dead. >> wow. what a thing to have on -- i'm sure there's royalties going to one of those relatives somewhere. back to the stocks. oshkosh corp only up 24%. >> huge move, rick. they won a huge military contract. new 52-week high. i'm a buyer. >> tivo is down 3%. pete? >> disappointing quarter maybe, but you look at the stock. it already made a huge pop on the news a couple of months ago. all of the different lawsuits they're battling right now, that continues to hang over it as well. >> retailer gue