the critic of goldman sachs's connections with the u.s. government crystallizes around one episode from around last year, the government bailout of insurance giant, aig. that came just days after goldman's -- lehman brothers was allowed to fail. and was decided by treasury secretary that used to be the boss of goldman sachs. when this financial crisis stru goldman had an initially $20 billion exposure to aig, some of which it had offset. had aig gone bust there was a r and paulson recently said that there were significant issues with goldman at the time. >> the biggest beneficiary of the billions of dollars pumped into aig, much of which went straight through aig and onto its counterparty was goldman sachs which got $12 billion of it. >> reporter: meetings over the second weekend of last september here at federal reserve bank of new york had already condemned lehman brothers. just subsequent meeting on aig, goldman's chief executive was the only chief bank present and treasury secretary paulson should have never well about goldman's sensiti

amongst paners here last ausums sharp share price falls treaten thr financial ruin the critic of goldman sachs's connections with the u. government crystalles around onepisode from arou last year, the government bailout of inrance giant, aig. that ce just days after goldman's -- lehman brothers s allowed tofail. d was decided treasury secretary that used to the boss ofoldman sachs. when this finanal crisis stru goldman d an initially $2billion exposureto aig, some of wich itad offset. had aig goneust there was a rea and paulsonecently said that there were signifint issues with goldman at the time. >> the biggest beneficiary of the billions of dollars pumped into aig, much of ich went straight through aig and onto s counterpart was goldman sachs which got $12 billi of it. >> rorter: meetings oer the second weekend of lt september here at federal reserve bank of new york had already condemned lehm brothers. just subsequent meeting on aig, goman's chief executive was the only chie bank present and treasury secretary paulson should have never ll about goldman's sensitivity to aig's te. he'd been bo

goldman sachs is making a lot of money since all of us have been wearing short pants. s a great company. they are not just successful because of the government bailout. >> quentin, is goldman sanctions the company to follow now? >> both things are true. they gained a system and played the system and made money off the system. the fact of the matter is, if it hadn't been for the government they wouldn't have the bonuses. >> they gave them money back and let the good times roll. >> lasts and first word from evelyn, snitching on americans. a new white house tactic that has more americans speaking up. but first, how much do you think your little one, cute and your little one, cute and adorable, uncle sam reveals he ran off with his secretary! she's 23 years old! - 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

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

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

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

look at shares of goldman sachs.t 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. 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 aig

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

charlie gasparino's been writing about a problem at goldman sachs. was too much money, bonus money, and what to do about that. charlie, listen, goldman made a nice pile of change for the u.s. government. their success is the u.s. government and the taxpayer's success. why is goldman's success a problem with anybody? >> i don't know. talk to "rolling stone" magazine. i mean, listen, that is an interesting question, and it's a question, bob, that at goldman they're trying to grapple with. there's envy here. i mean, these guys are kind of like the -- what is it, the 27 yankees? there is some truth to some of the criticism. let's face it. they were bailed out, you know, by the federal government. they have extremely favorable borrowing terms to take risk right now, and that i think is a legitimate problem. the whole concept, though, that goldman sachs is this evil empire, they have all these sort of -- they do have a lot of goldman sachs people in government, secretaries, as you know, throughout government, not just in treasury, chief of staff of presiden

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

goldman sachs made a major change in their forecast for gdp growth in the second half. ey expected only 1% growth in gdp. today, goldman raised that to 3%, triple the original forecast. that would mean an extra $140 billion in business for the u.s. economy in the next six months. the second upbeat sign, weekly jobless claims came out and down almost 40,000 than the week before, a far bigger drop than wall street expected. that should have sent stocks higher, today was profit taking time and also tomorrow morning a separate jobs number comes out and wall street is wary. the labor department releases payroll cuts for the entire month of july tomorrow at 8:30 a.m. and the split between hope and fear on that one is particularly wide. some bears see cuts over 400,000 tomorrow and say the market will take on that. some bulls or even a few bears say the payroll reduction could come in as low as say 150,000 for the entire month and that might make stocks roar up again. would it just be incredible to have say a 300 point day in the dow? 300 points up? i can always hope, right. mi

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

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

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 that spending $80,000 on a sgar badge can or buy as new corporate jet. the government is still got all kinds of hooks in to us and other financial institutions. congress is considering regulatory reform that could change our business. now is the time to lay low and to be a little bit more thoughtful about what we're doing. >> but does that say good or pad things about our society and what does it mean if we're not proud about making money, what does that

joe focussed on goldman sachs. you look at goldman sachs, i recommended it on november 21st when it was trading down, four days later it was 80, and it has a look back. 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. 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 skiddish, we'll have a downdraft in a big way, why leave profits on the table? take 30% of that and put a protective spot on it, 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. i recommended buying it at 10.75, i s

goldman sachs of course is back to making a lot of money. perhaps taking on a lot of risk. but wall street has change. whether it has changed for ever of course is a larger question, even change significantly as a question. i find myself with far too many questions these days and not many answers in terms of those larger issues as to whether wall street is truly going to find himself or will be as result of the regulatory actions that are being undertaken by the obama administration, or they hope to undertake. really don't have much more to add. i look forward to your questions. i encourage them. if you have any, please feel free and again, i very much appreciate to you all being your yes, sir. [inaudible] >> we're going to bring over microphone so that everybody can hear. >> assuming that we pull out of this recession without things like the irs disallowing tax deductions for warehouse department were to bring much bigger than real estate isom how long do you think it'll be before the next recession or the final depression? >> final depression? is that what we are all aimi

=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 don't want to sell goldman sachs.i own that is best in breed within that group and best price action. what do i sell against it? i sell today jpmorgan against goldman sachs. the reason being very similar company but very different in this regard, jpmorgan has exposure to the consumers. secondly, mortgages, credit cards, i don't want any of that exposure. 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. you also have to know what he's rooting for. i like what he's saying but i think you will probably be short jpmorgan 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. take my shots at goldman sachs lower f. >> i don't disagree. i will tell you this, if the market starts to go lower, i will start to skew that. right now dollar for dollar, i will get shorter jpmorgan on the way down. >> and pa

>> still, goldman sachs' money machine cranking out profits left and right. just months after a government bailout. on the front page of "the financial times," goldman's $100 million a day bonanza underlines bank's trading strength. one of the many headlines about goldman sachs. should we be outraged or should we applaud? cnbc's "power lunch" con tribltser boykin and you guys now how the rules here. 120ekdz 20 seconds to make your case. trent, let me start with you, do we applaud goldman for making $120 or be outrageed? >> absolutely. six months ago we were talking about credit crunch, wall street bailouts and taxpayer-funded bailouts. what's happened since? goldman's paid their money back and lending and making money. that's a good thing. turns into income not only for goldman but income for the federal government. i'm sure the democrats would like to spend that on other big government programs, so it's a good thing. >> steve boykin, 20 seconds, applaud our outrageed? >> i don't think we should be applauding or outraged. i think they are doing what they are s

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 "the wall street journal", ebay's pay pahl service worldwide was out.t. all customers weren't able to use pay pal for about an hour and some are still off line. now, joining us on the phone to talk about that and of course the big battle brewing in tech land, piper jeffries' analyst. what's the potential

goldman sachs is only levered 14 times that may change for quite a while. we will see. that is what crushed everybody i try to explain that in the book but again for anybody it can sometimes be a complicated concept but they had a $1 trillion balance sheet they were leverage at least 30 times you can be 30 times lovebird to assets of their u.s. treasuries but subprime mortgages or cdo's? that is not so good if you're lovebird 30 times and have a loss of just 3% or 3.5% you have wiped out your equity that is what happened maryland wanted to replace it remember the cap of raises late 2007, the sovereign funds? it is amazing so much money came and yet it was wiped out again. total failure on the part of the sec which we have seen so many other ways, bernie madoff, right? it is just criminal almost in a way. and as far as the way to regulate credit default swaps to allow for the creation of an enormous market place with the collateralized debt obligations to know it gets complicated and even more with the synthetic ceos that made up cdo's on mortgage-backed securities but

come see what the beginning looks like at openforum.com >>> the top spot is goldman sachs traders. according to a new report, they had a record 46 100 million trading days in the second quarter break record, a high of 34 days. goldman made at least $50 million. 89% of the trading days. >> like groundhog day. >> a quick programming note. do not miss ken, larry's guest at 7:00 p.m. tonight. final trade? >> we talked a lot about the short squeeze. look at when it is over and play from the short side. >> do you like the cell phone world? >> thanks for watching. tomorrow back here 5:00 p.m. eastern for more "fast money." ] introducing a revolution in stain removal. new tide stain release. it's an advanced in-wash booster that works with your detergent to help remove the toughest stains the first time. new tide stain release. available in duo pack, liquid or powder. - oh, come on. - enough! you get half. and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah. his and hers. - ( crowd gasps ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion? - ( chirp ) good to

let's bring in the negotiator, a former goldman sachs employee. what do you make of these simply staggering results here? >> how are you doing? >> how are you doing? >> 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 fou

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

early on this morning was alcoa, the aluminum giant getting downgraded from neutral to buy at goldman sachs. it is a valuation call based on a $13 price target. 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.

who was the first to do it goldman sachs, they should be applauded. they if exactly what everyone else was unwilling to do, take risk in such a fearful environment. >> and the idea you shouldn't give your best customers your best treatment is silly. there's not a restaurant in new york city that wouldn't give -- >> that's a hard one to swallow. >> is goldman gives its best treatment to its best customers? of course. >> you know, now it's not such a surprise it's in the papers every day. let's go outside stocks, let's go to the bond market. two-year auction today, now i have a new home. i remember in 2005, 2006, looking at risk, a lot of people knew there could be a dark day coming, this is the time i want to be on record, and if anything doesn't go right with this over the next few years, we're throwing out warnings, we need our fiscal house in order. traders, what do you think? >> i think you hit the one problem on the head. every day at 1:00, i like to tune into cnbc, but you have to watch it every time. sooner or later you could be a pilot and cont

as everyone is yelling and vilifying andrew hall, who made 100 million bucks trading energy and goldman sachs, which is making money hand over first and announced today in one of their filings, 46 million separate days they made $100 million in revenues. why is goldman bad? why is andrew hall bad and why is eli manning good? i don't understand that. can you help me? >> i can't believe you don't understand it. this gainesvilles services company, this is a guy in the financial services industry. >> right. >> these are the guys in the industries that made the mess and created the crisis in this country. >> i thought we wanted to get out of this. . >> stop. stop. you're asking me about why there's traction here and this guy gets a pass. >> this guy made a mess of the playoffs. >> doesn't matter. we don't own him. the fact is the financial services industry are the bad guys and they're going to be the bad guys for some time. >> neil hennessey, do we have to keep vilifying these financial services, i thought we wanted financial services, neil, to recover. i thought if you get paid on a performance

that's why goldman sachs even exists today. goldman sachs has done a brilliant p.r. convincing the world they have nothing to do with this downturn. it's nothing but the financial system which we had to save. these guys have lost perspective, giving themselves these monster pay packages. >> the pay czar says and i am quoting him, i have the discretion. david: does that mean if a s&p got a tax break, feinberg can adjust their pay? >> i think we're all at risk here. now that quentin's pop last friends are running the country, i hi we have to focus where the pay czar is to pay attention to be on the monopoly. the pay czar goes after the people who founded google. that's kind of a monopoly. i think they get paid $1 a year. they thud get 50 cents. a bigger monopoly is the government. let's have a pay czar limit the discounted present value of government pensions to $2 million. that would be devastating. david: pensions and benefits for government workers. should we be afraid? >> i'm not afraid of the pay czar. the pay czar will have limited impact on most people. most peo

goldman sachs lowered alcoa on valuation. they are concerned that a run-up in a movement of prices may have been too fast too far. how are we looking at the nasdaq, rebecca? >> bob, we are looking lower, like the rest of the overall markets. premarket, the nasdaq 100, premarket is down about half a percent, a little more than that right now. we've got a lot of client metrics out of the brokerages for the month of july. look at the fact that e-trade financial down 3.6% in the premarket reported a record july in terms of its account. 2.7 million accounts for the month of july. meantime, ameritrade said that without anything outside of organic growth as in higher interest rates, game changing acquisition, they don't see a lot of upside at ameritrade. they said interesting things about technology. they said they see a stabilized market and tech spending has hit

communicate in less deaf, hard, hearing and peopith speech disabilitiesit . >>> the top spot is goldman sachstraders. according to a new report, they had a record friction $100 million trading days in the second quarter break record, a high of 34 days. goldman made at least $50 million. 89% of the trading days. >> like groundhog day. >> a quick programming note. do not miss ken, larry's guest at 7:00 p.m. tonight. final trade? >> we talk a lot about the short squeeze. look at when it is over and play from the short side. >> do you like the cell phone world? you have to like since aptic. >> thanks for watching. tomorrow back here 5:00 p.m. eastern for more "fast money." 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 l

i slightly disagree on goldman sachs. it's hanging in there well. >> oh, yeah. >> right now, when the capital markets look like they're healing, that benefits names like morgan stanley, goldman sachs, because they are the winners in the consolidation space in terms of trading revenue. the entire financial space right now is on fire. jpmorgan above 40, morgan stanley above 30. and look at pending home sales, which we'll get into today. that basically tells you that residential housing has found a bottom, and who holds those loans? the names like bank of america, the names like jpmorgan. that's why -- >> you pointed that out on the halftime report, regional banks have great exposure in their portfolios to these types of loans. but karen, if the financials are able to move higher on the belief that perhaps the commercial real estate isn't as bad as it had been expected, you were one short iyr, which is the etf that tracks the reits. what's your position now? >> well, way less bearish. we talked about how a lot of the reits w

. >>> and does negative media surrounding goldman sachs smell of anti-semitism? our own charlie gasparino have sources inside the firm that think that's a real possibility. i like to call him the great gaspy. >>> as we go to break, we'll leave you with pictures that tell today's bullish story.  $# i'm racing cross country in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t. people think that honda is always the most fuel efficient choice. well, this chevy cobalt xfe has better highway mileage than a comparable honda civic. this chevy traverse has better mileage than honda pilot. the all-new chevy equinox has better mileage than honda cr-v. and chevy malibu

goldman sachs came out with 250,000 job loss estimate, way below. let me go -- no, i'm asking mark, how are you going to play this? how would you play this if you get a low end jobs loss number tomorrow, mark? >> the first thing i would say, when that number comes out, the options market aren't going to be open yet so i won't get an opportunity to play there. we will see something pretty profound, volatility coming out, the level of complacency or concern about the market is coming in. this is a big number coming out tomorrow and i would expect a number like that to see the market take off and expect down-side options to buy upside. >> would you buy them where in commodity stocks? where? >> i like energy and think the demand will rise there and demand will rise in favor and think we will see commodity prices rise. >> jeff, let me come back fo, you if the number is closer to rick santelli, i guess we lost rick on the hook-up, if it's not as good, 350 or 450,000, jack, how would you play. >> it i think it's a sell sell scenario. if it's a good number,

everyone wanted to be like goldman sachs. diamond actually said no, we are not going to go down that route and chase after the quick and easy answer. doesn't mean they didn't make mistakes. i don't want to say these guys are perfect angels because they made mistakes, but there bridge decisions taken which were instructive. in terms of what was going wrong -- when the bank started going hell for leather, taking chunks of mortgage debt and slicing it down, i lived through the angelo -- tangible loans, tour the derivatives of those loans, there were a number of occasions where internally the j. p. morgan investment bank tried to work out why the other banks were making more money than them and there is a debate over whether they should do the same. they kept running numbers and could not work out how to make it pay unless you to crazy risks, so they said no. to say no was quite a decision at the time because everyone else was going down that grew very fast. other people were even in late 2006 when there was already evidence that

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

as that'sed back, you look over at goldman sachs, wasn't positive territory, then started to give up the ghost toward the latter part of the day. you would like to see goldman find its footing. >> 75%, 80% of companies beat earnings this quarter, only about 25% of them beat topline revenue numbers. so they're getting at it the wrong way. can't last. >> the bar was so low because of how many analysts slashed the forecast. the expectations weren't there anyhow. you expect another pullback. when do you think the markets get attractive? >> we need more positive data. the market has priced in this positive data that we've had, home building news that was good, home price sales, economic data on the unemployment front. it's priced that in more than once, i think. the same news again and again. we have to see some new positive news. i also think that congress being out of session is a positive thing. i really do. >> let's move on to the next trade here, a group that led us lower, financials getting slammed today. the worst sector of the day. wells fargo, citi, losing ground today. across the

suddenly you look over at goldman sachs, was in positive territory, started to give up towards the latter part of the day. that's a bit concerning too because you'd like to see goldman start to find its footing. >> although 75% of companies beat earnings this quarter, only about 25% of them beat top line revenue numbers. they're getting an eps beat but getting at it the wrong way. >> the borrowing was subterranean because of how many analysts flashed the forecasts. the expectations weren't there anyway. karen, at what point would you say the markets start getting attractive? >> we need more positive data. the market has priced in this positive data we've had, some home building news that was good, home price sales, economic data on the unemployment front. it's priced that in more than once i think. the same news again and again. we have to see new positive news. i think that congress being out of session is a positive thing. i really do. >> yeah. let's move onto the next trade here. this is a group that certainly led us lower. financials getting slammed. the worst sector of the day. wells

throughout the government rue been, john poor's nine, john thain, paul send, all goldman sachs and work your way down the list and they said they are starting to look like the consultants so i am not a big fan of then being nearly as influential on the policy side is out of control two weeks ago or last week they t.a.r.p to write even in the midst of a crisis and people wanting to kill bankers and all of these guys are making their phone numbers on listed from google worth there still lobbying spending millions of dollars so it is unconscionable. >> there is a lot of discussion about a government getting involved with c8 -- ceo pay that have received government money what is your feeling about the government putting limits on the ceo pay and related to that, goldman sachs also in my opinion, they had the counterparty risk they were implicitly bailed out. >> 27 billion worth of goldman and 70 billion went to overseas banks. if you go to las vegas and you are in the casino and hit the jackpot the loss vegas casino board well make sure that that casino will pay the a gambling boar

there's a very big commitment right now. >> and it also helped goldman sachs yesterday. talking highly about the entire servicing sector based on a valuation pullback. >> time now for "analyze this." if the consumer is driving the economy and the stocks in your portfolio -- could the numbers on retail spending and disappointing jobless claims mean that we're in for a rough fall? michelle meyer has her finger on the pulse of all things economic. michelle, great to have you with us. >> nice to be here. >> double dip has come into the conversation of late. is that your belief? >> it's not our belief. we think we're going to see a cyclical bounce in the second half of this year driven by the deep inventory cycle that should create momentum in the economy, that should start to help the labor market. we think that we will see a recovery. not a healthy recovery, but still a pretty modest recovery. >> so, michelle, does that mean that timmy is going to be right and the dollar will continue to weaken? or if we have growth and it is seen as u.s. is the first out of this thing, wil

>> so what's good for goldman sachs is good for the western world? 3 '83-'87, i am part of the vast conspiracy. >> this is all about conflict of interest, the perception. >> because the treasury secretary used to run goldman everybody -- and because bob rubin worked there before worksing on the mexican bailout, everyone is looking at those situations and saying is there a conflict of interest there? what do you see when you look for conflict of interest in these stories? >> i would have liked to have seen he got ticked off about certain things he could do, position himself in the bond market, position himself on the short side of the stock, position himself to have no inventory and, you know, he had no inventory. we're a dry cleaner. we're not a retailer. from day one you're told you're a dry cleaner. goldman in the end -- >> does anybody else know what that means? i like it, though. >> don't take merchandise, unlike merrill lynch which had about $100 billion worth of exposure. in and out. in and out. >> we just launder money. very good. >> this is w