his job with the imf was to go to places like indonesia. they end up with a new leader who is a bold, young visionary but they look them squarely in the face, is this guy, is he really willing to stand up to do to break the back of the oligarchy. the united states, that is exactly the situation you are in here. that is exactly the situation we're in, it transcends party politics. they have captured washington, d.c. and they have just prevented, they manufactured this, not deliberately, but they manufactured the loopholes that let this happen and they are doing everything they can do to keep those loopholes from being closed. >> how come i'm not being hearing this? >> the media is largely captured. new york financial press has become very close to the financial community on whom it reports. so they will not report the kind of news and evidence. you only see at the fringes but very respectful people, simon johnson, it's great that the message is breaking through the smoke screen. >> glenn: i wonder if it's good or i'm suddenly on a really dan

his job with the imf was to go to places like indonesia. they end up with a new leader who is a bold, young visionary but they look them squarely in the face, is this guy, is he really willing to stand up to do to break the back of the oligarchy. the united states, that is exactly the situation you are in here. that is exactly the situation we're in, it transcends party politics. they have captured washington, d.c. and they have just prevented, they manufactured this, not deliberately, but they manufactured the loopholes that let this happen and they are doing everything they can do to keep those loopholes from being closed. >> how come i'm not being hearing this? >> the media is largely captured. new york financial press has become very close to the financial community on whom it reports. so they will not report the kind of news and evidence. you only see at the fringes but very respectful people, simon johnson, it's great that the message is breaking through the smoke screen. >> glenn: i wonder if it's good or i'm suddenly on a really dan

in the end, korea's government had to turn to the imf for a bailout. >>je-kyung: our companies have learned a lot of lessons from the imf period. we have sounder financial positions, have lowered the debt ratios, have invested in r and d, and in new technologies like green industries. we have a strong degree of competitiveness which has helped us fight against the current crisis. >>reporter: the authorities have also learned plenty. unlike last time when the central bank jacked up interest rates at the prompting of the imf, the base rate is now at record lows. the government has also intervened in the economy much more forcefully. >>chul: they have been trying to make korean firms more competitive, korean exporters more competitive by cutting wages, cutting waste and improving technology so that they have emphasized more on improving competitiveness of export oriented industries. >>reporter: the decline of the korean currency in recent months has made the country's goods more affordable than its competitors'. >>: that's helped keep south korea out of r

saying it the imf -- usingng t the fcr i limited.d. my understanding, it w wilbebe traded amongst governmenenonly. it won't b bout in the market. ththe r rennbnbi could be i wou' see used as medediufor tradee transactions, bubut tt's a big ststeproro going fromhahat to a serve cururreyy and ionon'tee thth fdfd mining in either ara inajor wway it's jusust -- y know, you need a deep and liquid d maetetn a rrency for itoo be thehe serve currency, rule law, , many things. >>thomas, the ecoconocc maacace is one ining. a a tt of talk ouout climate change hapappengngn the g-8. do you think it's totoo early adaddrs these climatetalks, coconsering that not a lototof people can actctlllly agree on what t thewawa to agree o >> you're askininme from a ratings pepersctctiv we don'n' take thihis io acunun i have my own personalviview but it es s see aitit bibirrrr. ththe lg-g-te problems are mo obscure and harderr reachch than the g glol economic crcri. i would think the global economicic crisis shohoultata iority. >>>> thomas, good have out show, t

by becoming creditors, lenders to the imf because it's easier to lend to the imf than change the shareholder structure of the ifm which is still dominated and will remain dominated for a while by the old g-7 countries. having said that, it's a political issue and the result will be that they will have a greater say because specifically these countries have grown in significance over the past 20 or 30 years. >> so they're exercising their muscle, basically. >> yes. they're flexing their muscle and i couldn't put too much into it in terms of near term or long-term currency trends. >> steven within do you agree with what miko was talking about, that we shouldn't put too much into the reform of the currency system? >> sure. they obviously want to get to the table and have a say in terms of how that's developing. however, at the current time, and there is no shadow currency that has defied the asset market, has the same liquidity that the u.s. dollar brings. so all this talk is very fanciful. it has no asset base of any debt, so i think at the moment we love the dollar and it will stay the princi

jose, counselor and director of the monetary and capital markets department for the imf.u, jose. the headline here is the policies have reduced systemic risks but there are sill vurn rablts. where are the vulnerable i believes in the system? >> there are a lot of vulnerabilities and concerns that remain. one of these vulnerabilities has to do with the fact that the problems of the banking system had not been fully fixed yet. there's been an important progress that has been made, but remaining concerns continued to be there, concerning, for example, their assets, the need to raise more capital in a number of countries in order to put the banking sector on a very solid footing. and also there is a concern about financial markets because securitization markets remain impaired and they have only started to gain traction in where public intervention has been important. so we should not forget that in general the financial system has improved, but that this has been due to the very significant support that has been provided by policies. so the financial markets still are unable

but the imf, ariel -- the imf, nouriel, rather, pardon me, said the emerging markets have actually beenbetter than expected and that's going to help global growth. do you buy into that? >> i buy the first part of it. the performance has been better than expected because they didn't have the same leverage and excesses of the advanced economies. but many of these emerging market economies depend on net external demand, net exports rather than domestic demand. and unless there's going to be a radical and structural shift in demand from exports, domestic, private demand in china-n brazil and other emerging markets, i don't believe the emerging market can fully decouple from the very weak recovery of the g-3 countries. >> ariel, what were you going to say? >> i was going to say that for example you see the growth in domestic consumption in brazil, china, and india and you see a steep decline in russia. as far as other countries are  concerned, it varies from country to country. it varies on the export structure. there are some commodities that are in relatively high demand. for example, c

really people come imf, economists, mr. krugman himself, were very outspoken and at that time that the japanese disease and a deflationary and no growth, recession, was a real. now, if you say that it is a lot of other things but one of the things that you imply immediately that you need a very expansionary monetary policies to fight deflationary, that's exactly what the fed did it and that is why you didn't get deflationary. so saying now that it didn't need to do that because there was no deflationary and that is putting things upside-down, so i don't agree with that critique of the fed, but what i think mr. greenspan certainly in the last five or six years was a dictatorship and the federal open market came together. mr. greenspan gave his expos i of what he thought was necessary and then he asked whether there any questions. i mean, bernanke, the federal market community, it comes together and it is a sixth point out. bernanke a space as the last person which is very different which gives everybody the opportunity on th

this morning, imf raised the growth outlook for 2010. >> let's move on to the next trade and this is the other thing that could help that consumer out there surging. strong demand for the ten hich year note auction. we saw the ten-year dip down to two-year lows which is a good sign for anybody looking to lock in a mortgage ralt. >> not a good time if you are a short longer term treasury, which i happen to be. for this particular consumer it wasn't delightful. >> but longer term -- >> i still think -- >> ultimately, juxtaposed against the consumer number, falling yields is a big negative for our economy. it means people are not very bullish on the short term prospects and the ten year means the outlook on inflation isn't quite as bad. the bid to cover was the highest they've seen in 15 years of this auction and this is the ten year auction. this is the auction. this was an extraordinary event. and i think it was five bips through where they were expecting it to come and rallied another five after that auction. an exclamation point on economic weakness. >> gold, we talked about at 950,

the imf has announced it is sharply increasing funding to poorer countries to help them deal with the global economic crisis. they plan to increase lending to developing nations by up to $8 billion over the next two years. that is $2 billion more than was called for by the g-20 summit in april. microsoft and yahoo! have announced an internet search partnership in an effort to take on google. under the deal, microsoft's new search engine will be used on yahoo! sites while yahoo! will use microsoft computer technology. the police in spain are blaming the vast separatist organization for a car bomb in a northern city that slightly injured more than 50 people, who were hit by flying glass. from madrid. >> the terrifying aftermath of the early morning attack, filmed by an amateur cameraman. "what brutality," he exclaims. at least 200 kilos of explosives have been packed into a van and detonated without warning. the blast scarred 14 stories of the police barracks, ripping out the lower floors. more than 100 people had been inside. police officers and their families. children were among thos

>>he imf predicting strong global recovery in 2010. what should ben youruying list? joining us with his picks, washington redskins player tu four star mutual fund manager, eugene profit. of the profit fund. a pleare to have you here. >> is it a real me? >> it's for real. >> let's second the record straight. you believin a recovery in 2010. what are the beswa to play it >> i think you heard him a say the secondalf 2010. i say 2010 we'll see the best improvement. we to want look at compaes that executingight now. so one of the names we brings u.p.s. u.p.s. we know, big brown, global transport companyhad delivery than fedex.ackage it's n at a price point that you can buy it because of the ecomic recession. they'rusing this time period to sell off some old dc- s improving their bottom le. wh the company turns around, packages still occur and u.p.s will ba major beneficiary. early cyclical p another na is visa. we actually bought visa toda we hadt up on our list to buy when it t down to about the $59 area. we think it has a $70 valuation price. thnefit of visa is that wit

the imf came out with the forecast which is 0.8%. >> i haven't looked at the imf forecast. >> economists, i think it would be fair to say, a lot of economists believe it is likely to be more than 3.2% f that happens, my question to you, is the deficit as a percentage of gdp becomes much higher. are you willing to do whatever it takes to keep the deficit as a percentage of gdp within the range that the president suggested? >> it is very important for the sustainability of recovery, for confidence, that this government will do what's necessary to bring these deficits down to a sustainable level as soon as we are confident we have a sustaineded recovery in place. the president is absolutely committed to that. he deeply understands how important that is. his economic team lived through a period where a remarkable period of fiscal disadvantage in the united states helped generate a long period of rising private investment, stronger dollar, lower interest rates, strong productivity growth, broad-based income, so he understands deeply the importance of making sure we put in place a stronger fou

and insisted the imf pay off loans to the bank and pay the interest. it's that kind of mischief that goes on, they can have agreements with other government, central bank, international banking, financial organization, dealing with trillions of dollars and the american people don't know what's going on and the congress until recent really didn't care. during this crisis now fortunately from what i've been trying to, do we're getting more attention because i think people are recognizing how important it is. >> isn't it congress with the old humphrey hawkins act, passed back in 1978, create a dual mandate, said get inflation down, keep prices stable on the one hand, keep the unemployment low on the other hand. are those conflicting? in terms of an audit, don't you need to repeal humphrey hawkins and give the fed a clear mandate to stabilize the currency, value of money and prevent inflation. >> i don't think that would be a bad idea. i think the audit could lead to something like that. first, we want to know what they've been doing. those are impossible

spoke to the imf. john lipsky said engineering markets surprised him on the up side. rich bernstein explains yes doesn't believe that and which markets actually could be the actual stars in a taurn-round. where do you want to be investing in this recovery? americans may be cutting back on their summer travel plans, meanwhile, but there are some parts of the travel and leisure industry that are still doing pretty well holding up well. we'll break down the numbers and the winners and losers when we come right back. not long ago, this man had limited mobility. last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one live with limited mobility call the scooter store! no other company will work harder to make you mobile or do more to guarantee your complete satisfaction. if we pre-qualify you for a new power chair or scooter and your claim isn't approved, the scooter store will give you your power chair or scooter free. that's our guarantee. they were so helpful and nice. they

this is according to the chief of the asian department in the imf. he said eye difficult to determine how unvalued the yen is and that a stronger renminbi should be a part of the package. >>> there are sign that's south korea's economy has finally hit bottom, thanks to the government's $50 billion stimulus package. data showed asia's fourth largest economy expanded by a seasonally adjusted 3.2% in the second quarter. that's the fastest pace of quarterly growth in more than five years. the number is slightly lower unanimous what analyst hesitate expected, but sharply higher than in q1 which gdp rose only 0.1% quarter on quarter. >>> now, the german recession is almost over, according to the ifo. the ifo survey came in at a reading of 87.3, compared to a forecast of 86.5, the fourth consecutive jump. it did see the euro continue to push higher against the dollar. in corporate news, merck shares have plunged in germany on disappointing second quarter figures, and news that the eu regulator have rejected its drug which treats lung cancer. the german grou

i think it's too easy as a critique because in 2000, 2001 there was a huge inflation scare people, imf economists, mr. krugman himself were very outspoken at that time that the japanese disease, deflationary and no growth recession was real. now if you say that you can say a lot of other things but one of the things you imply immediately is you need expansionary monetary policies to fight deflationary. that's exactly what the fed did and that's why you didn't get deflationary. so saying now that they didn't need to do that because there was no deflationary putting things upside down, so i don't agree with that critique of the fed, but what i think mr. greenspan certainly in the last 56 years installed plus a kind of dictatorship. i mean the federal open market came together. mr. greenspan gave his expos say what he thought was necessary and then he asked whether there were any questions. naim bernanke, the federal market committee comes together and it is a fixed point now bernanke speaks as last person which is very different which gives everybody the opportunity on the committee to e

we have an image of europe in the united states, perhaps unfairly, but the imf numbers again tell youwhy, which is that this is a place with a very large state, perhaps as a result of very good life for most people, but very little energy, very little vitality. as one senior official in the bush administration once said to me, he said it's the world's greatest outdoor museum, meaning its glor riz are behind it, it lacks the energy, vigor, to kind of confront the problem, the world of the future. is that changing? is there a sense that that may always have been a caricature but there was some true to it. >> i said to you earlier that there was this straitjacket and that the country was a little bit dozing. that was a bit the case. there was -- we were very proud of our history, our monuments. we should be very proud of that, very proud of our cuisine and we should be proud of it. but i think president sarkozy's talent has also been about stimulating people, about encouraging, about -- for instance, we give a 30% tax discount for anybody who invests in research and development. we creat

the imf plans to increase lending to the developing nations by up to $8 billion over the next two years, $2 billion more than called for by the g-20 summit in april. microsoft and yahoo! have announced a partnership in an attempt to take over market leader google. under the deal, microsoft's new bing search engine will be used on yahoo!'s sites. iraqi police say seven iranians have been killed and about 300 were injured in an operation to take control of a camp housing iranian dissidents north of baghdad. clashes between police and residents are reported to be continuing inside the camp, which is run by an iranian opposition group. our correspondent in baghdad has more. >> the one thing we should say about these very dramatic- looking pictures is they are coming from the iranian opposition inside this camp, so it is difficult to independently verify exactly what we are seeing or exactly when they were taken, but let's start with what both sides agree on. clearly, there were clashes on tuesday, and there have been clashes on wednesday. it is the number of fatalities where people start di

look at all the money we're putting into these global organizations like the imf, the world bank, a huge amount of funding for the united nations, which has always wanted a world governance and the other piece to this puzzle, two pieces to the puzzle, glenn, are the kyoto treaty, what the congress passed just two weeks ago, the cap and trade bill, which basically to make that work requires a kind of world governance of all energy use. glenn: i'm going to come back to the dollar here in a second, but i want to go to where you were talking about and cap and trade. here is what al gore said last week, but we were all fascinated by other things that nobody paid attention to this. this is what he said in london. he said "i bring you good news from america," and listen to what the good news is. >> it is the awareness itself that will drive the change, and one of the ways that will drive the change is through global governance and global agreements. glenn: then we have chirac from 2000 talking about the kyoto protocol. he said "this is the first component of an authentic global governance. we h

on a ceptionally largerogram of financial support t for ememerg and developingng econoes through the imf and the mul later developmenent bank anand together, ththis rresent today most aggreressive t internional responseto c crisis in the l last50 ars, implemenented one prececedented speed and breath. unlike thehe c crisis of the '6 the 70s and the '80s and '90s, is time the world camame toelg gether and the combined d effect of these actctions has subsbstantiall reduced the risk of a m much deep and re prprotractedlobal recsion.. in the uted states, the re of declin of economic activivit has slslowed,usiness and nsumer confidence hass started to improve. e housing markets are showiwing some signsns of stabibility. ththe costf borrorowing, e cost of credit hahas fallen gnificantly. creditarkets are opening up and the improvements hahave bee more s substanti and havave com more quickly than many of us expectcted whethey were designed december and january.y. alalongside ese signs of stabilation in the united states, we're seeing the ininitl signs s of progrs gbally, as we. i arrive here fro

but the most recent headlines of the imf aim toward the ecb are exactly the opposite. they're saying better keep prices low. ceo do not agree. they may have to alter their positions. always about jobs, jobs. the automatic data processing reporting and they had a comment about what they think it will look like at the end of the year. their range, 10.2% to 10.5%. $28 billion seven years, i'm excited about it. 1:00 p.m. eastern. we know what grade it will get today. back to you. >> thank you, rick santelli. >> a busy morning at earnings central. no fewer than 50 companies reporting earnings today. >> wow. >> wow. >> i saw that. >> thank you for nothing. >> now going to wade through 50 stocks. hi, guys. >> hello. good to see you. >> start with the first. you have to do one before you can do 50. dow chemical reported an unexpected profit excluding costs that were the result of that roman purchase. but we were surprised when they first came out, right? we did not think they were going to be this good. five cents a share. analysts looking for eight cents. the outlook for the

the discipline in place, that the financial stability board is capable of setting standards, that the imf can actually, you know, sort of analyze what's going on throughout the world to send the right alarm signal, if there is a need for that. it's very much a work in progress. >> so you really think that the jury is out for all of you whether you guys are doing the right thing? until you see economic growth resume. >> you need to stimulate at the moment, and you need to stimulate on the basis of what i call the triple t. it's got to be temporary, targeted and timely, so we don't really run the risk of having public finances that for the long run will be affected by massive deficit and by huge did he acce-- deceptiveness. we need to stimulate and do enough that it will kick start the economy. it's not enough to be involved in the activity of the functioning of the economy. at the same time, we need to regulate and signal to our constituents that we are not going to tolerate -- we, who are spending taxpayers' money -- we're not going to tolerate the kind of behaviors we've seen in the last

to the world bank from the imf and the g8 and the g20 from the oas and the summit and all of these and other institutions have a role to play but their continued vitality and relevance depend on their legitimacy and representativeness. and the ability of their members to act swiftly and responsibly when problems arise. we also will reach out beyond governments because we believe partnerships with people play a critical role in our 21st century statecraft. president obama's cairo speech is a powerful example of communicating directly with people from the bottom-up and we are following up with a comprehensive agenda of educational exchanges, outreach and entrepreneurial ventures. in every country i visit i look for opportunities to bolster civil society and engage with citizens, whether at a town hall in baghdad, a first in that country, or appearing on local popular television shows that reach a wide and young audience or meeting with democracy activists, war widows or students. .. our partnerships with their governments stronger and more durable. we have also begun to adopt a more flex

thoughts about the gif 20 meeting and discussions around development aid and discussions are bound imf and world bank or lack thereof and how that is going to impact africa when the rest of the world is experiencing also a financial crisis. >> guest: first many of us are surprised that the system in the developed world was that and regulated so that people could do whatever they wanted to do for so long until they pulled everybody else along with them under the table. and we were surprised because we thought that people in this part of the world know what they are doing. quite obviously those who were in charge were left completely uncontrolled. but that point in itself says a lot about how the same people do business in africa. they also don't want to be regulated their. and to a very large extent they do a lot of exploitive business that doesn't help a lot of people in africa. banking and apricot is for a very small minority who have collateral and when you have people leaving more than 60% of people living under the dollar and when many of them are women you know you don't have coll

your thoughts about the g20 meetings and discussions about development aid and discussions about the imf and world bank or lack thereof and how that is going to impact africa when the rest of the world is experiencing also a financial crisis. >> guest: first of all, many of us are very surprised that the system and in the developed world was that unregulated so that people could do whatever they wanted to do for so long a story. when we say things like if he hadn't been gotten into that car after drinking all night, he wouldn't -- would be alive. the truth is if he hadn't gotten involved with the dave and buster's waitress, he would be alive. if you give people something to cheer about, they'll cheer you. there is a culture in sports with women where it's supposedly almost accepted. the fact that his wife, and god bless her, i feel sorry for her, but the story is she had no idea any of this is going on. this guy is on vacation in a tropical island having pictures of him taken parasailing with this girl. he's got an apartment in town. why does someone keep a second condo if he has a home

e imf just yesterday c cam out an said the glololl e enomy w e emerging f fm m ression faster th e eected but only becausese governments keep s svivingoney at thehese b f fancial ststitions. >> o o m mon, by the wawa that's tataxper dollars. it's not justt hpening in thehe united statetes, iss hapappengn around theworld. that sususinable, jim? >> no, it'sotot sustatainab.. en you look at the global economy, reallyy it a aale of ececonieies. we have the e erergi markets dodoing gngnicantly better and don'tneneed the goovernntntelp and d th we have the developope marketets keke japan and britai angege areny and u uniteststes ththatre really stilil hurting. and problems t tatat they havet nking secretary, the housing sector and consumer seseoror a all still l veryroroematic in the e deloped markets. m mbe we're getngng little bibit tttterut it's kind of like getting out of quicksasand i really d deemud. maybe y your piupup tck would help,, contessa. ey're really having trtrblblin ahead here. . >> it's trueue. but if you look at the datata todaday,jim. we saw rtail sale s w ws re dow for r al

the imf now is issuing bonds. >> i think they're going to be continuing to buy u.s. debt for some time. but you see a lot of diversification. like any investor, right? they're investing in africa. they're investing in south america. i mean, they're locking up a lot of natural resources around the world that nobody seems to be talking about. >> the u.s. is not the only game in town. >> that's right. >> so don, as far as an investment standpoint here, because of what is going on in china right now, that the economy joss it's humming, he just got back. do you think investors should be looking at investment opportunities in china? >> i think they absolutely should be, maria. i would rather own, for example, china national offshore oil corp. and petro china the big three state-owned oil companies rather than say exxon mobil, conocophillips and chevron because the chinese oil companies are working in the fastest-growing economy in the world. and china treats capital better than americans treats capital. pains me to say that. >> the risk threshold is just comfortable enough

stocks strug tolling find direction after a mixed economic report by the imf. concerns about earnings season and weakness in the energy sector. that is because oil prices just keep collapsing. crude falling $2.79, or 4.4% today, wow, to close at $60.14 a barrel. oil is now down 15% over the past six trading sessions. and earnings season is about to kick off. alcoa just moments away from reporting its second quarter results and we'll bring you instant analysis as soon as the numbers are released. here's a look at how we finished the day on wall street. the dow climbing into positive territory. look at that, up 15 points. about .2%. remember, we had been negative for most of the day. the s&p closing in negative territory. although just barely so. and the nasdaq closing up just 1 point. let's get more on today's action. bertha coombs is our eye on the floor of the new york stock exchange. bertha. >> a wild ride, melissa. we saw all of the indexes here below some key support levels. they crashed through with that commodity meltdown that we saw this morning. the dol

and he's also been an advisor to the central banks of iraq as well as imf consultant to the central banks of afghanistan, kenya, and zimbabwe. oh, zimbabwe, obviously, they weren't listening to you, warren. [laughter] >> they are now. [laughter] >> and then for abolishing the fed, our next panelist, gene epstein is baron's economic advisor and former chief economist for the new york stock change. he writes a regular column in barrons and he write it from the philosophical view of austrian economics, the school of ludwig von nesis. [applause] >> and finally, we have tom woods. tom woods is senior fellow at the ludwig institute. he holds a bachelor degree in history from harvard as well as a ph.d. degree from columbia university. and he's author of nine different books. the primary book that is very appropriate to this discussion is meltdown, a free market look at why the stock market collapsed, the economy tanked and the government bailouts will make things worse. so i'll have each of our panelists start out with a 2 to 5-minute opening statement and then we'll let the fireworks begin and

the imf made some negative comments here recently about it. you saw as the dollar started moving down about 11:00, a very familiar thing happened and that is commodities and commodity stocks start moving up. in fact, the overall market tends to strengthen regardless of whether you think about a strong dollar policy being the best thing. it's definitely helping certain stocks at certain times. it's pretty simple. you can look at any stock that's a big commodity not just a gold stock. freeport-mcmoran. these are intraday charts i'm showing you. all of a sudden you get the middle of the day about 11:00 boom, they start moving to the up side. you get this lift in all these major commodity stocks. there are the dollars. and the dollar strength or weakness will be a major theme here for the month.h. as for citigroup just want to note today that remember, there is a rebalancing going on. a short while ago citi completed a big exchange of its preferred stock for common stock. today the russell indexes are rebalancing to reflect the increased weighting

that's certainly what the imf used as part of the reason to increase its gdp expectation for next year. michael, real quick here, do you think that the market is going to be higher or lower than it is right now at year end? >> i think it will be higher at year end. i think we'll have a little bit of a hiccup in between now and year end. but i definitely think it's going to be higher. because even if the market's anticipating q3, q4 returns to normalcy we won't get it there will be a rally at the end anticipating q1, q2 returns. so we're close enough to the turn where you should use any weakness to position the stocks you think can make it. >> we'll leave it there. gentlemen, great conversation. we so appreciate it. thank you. ron insana, michael crofton, we will see you soon. and we have this market at the highs of the day with a 100-point rally in the dow industrials. citigroup, jpmorgan, two dow components not participating, both in the red. >> but some of the other regional banks like m & t which had earnings they're doing fine. >> wells fargo reports this week. it's also higher. >>

but the imf still has a negative outlook for this year, expecting global growth to shrink 1.4%, .1% worse than its prior outlook. matt. >> all right, melissa, thanks so much. i'm looking at the scoreboard. the dow's only down 15 points. so let's talk about this market day here. i opened up, gentlemen, by saying -- and i should introduce my guests here. i have scott jacobson of capstone sales advisor chief investment strategist there. and also jordan kimmel, national securities. he is their market strategist. so jordan, we're down 15 points on the dow. how can you be bullish on this market, and how can you favor something like small caps? and it seems like we're hitting lower lows every day, we're now down to levels that we haven't seen since the beginning of may. >> lower lows for a couple weeks. you're right. remember, we had a historic bounce already off a generational bear market. that's the second generational bear market of this decade. so you have to remember, this is an auction market. when fey is this hi when fear is this hard, when people are afraid to own stocks you can go in an

from the un to the world bank, from the imf to the g8 and the g-20, from the oas and the summit of the americas to aipac, all of these and other institutions have a role to play, but their continued vitality and relevance depends on their legitimacy and representativeness. and the ability of their members to act swiftly and responsibly when problems arise. we also will reach out beyond government because we believe partnership with people played a critical role in our 21st century statecraft. president obama's cairo speech is a powerful example of communicating directly with people from the bottom-up. and we are following up with a comprehensive agenda of educational exchanges, outreach, and entrepreneurial adventures. in every country i visit i look for opportunities to bolster civil society and engage with citizens. whether at a town hall in baghdad, a first in that country, or appearing on the local popular television shows that reach a wide and young audience, or meeting with democracy activist, war widows or students. i have appointed special envoys to focus on a number of specifi

in terms of firepower of the international bodies, dominick straus, the boss of the imf, says to me that they've been given enough firepower. >> the decision made at the g-21, it's under way. still, which has been decided, i'm lamenting. >> a lot of things have been decided. the problem is in delivery. delivery on aid, delivery on climate change, delivery on the topic that's on the table today with development and money for africa. a lot of that 2005, glenn eagle's g-8 money hasn't turned up. it's all very well to get people to degree, but once they've agreed, then they have to delivery. we've mentioned pittsburgh. we've mentioned copenhagen. you can add dohar to that, as well. >> thank you for that, steve. in the meantime, joseph, some markets oa iday, welcome back. it's nice to have you at the desk again. >> yeah. friday, but it feels like a monday, which is -- >> for you. >> yeah, it does. for you, it feels like the end of the week. >> it is a friday. why does it not feel like that for you? >> because i was off yesterday. >>> don't worry, two more days you get another monday. >> yeah.

what about japan, for instance, the imf today expects the japanese economy to contract by 6% this year. do you see the slump deepening in japan? how bearish are you on japan? >> look, i -- i can the worst of the downturn is behind us in japan, but you know, that's sort of a no-brainer. this is an economy that contracted at a 12% to 13% annual rate in the fourth quarter of last year and the first quarter of this year. so you know, we, like everybody else, think that the rate of decline is moderating. but you know, keep in mind that as of may, ex ports going out of japan were still contracting 40%. that's 4-0 percent year on year. this is an economy that doesn't have much going for it from the standpoint of internal private consumption. so when you have export drops of that magnitude, it's a real problem. but sequentially going forward, the second half will be better than the first half. but again, that's a no braener given the severity of decline that we saw late last year and early this year. this is an economy, obviously, that is suffering just a very acute downturn this year. >> stev

but 65% of the world's foreign exchange, according to the imf, is made up of the u.s. dollar.believe that over time, there will be a tripartide global currency that will consistent of the u.s. dollar, the chinese yuan, which of course the chinese are making movements to have that happen over the next decade and the euro or some form of, you know, european currency. >> okay. emily, you're going to stick around with us for the next 45 minutes or so. emily sanders, sanders financial management. >>> also, cap gemini cut its targets this year. after the break, we'll be joined by the cfo. >>> the shares of capgemini today are a little firmer, your biggest computer consultancy said that its longer term outlook isn't so bad. that calmed investor's nerves. the company did cut its 2009 sales outlook because it sees the beginning signs of stabilization in some regions. joining us for moor more is the cfo of capgemini, nicolas du fourcq. thank you for joining us. >> thank you. >> it seemed to be that you were fairly pessimistic compared to the likes of s.a.p. but are you less pessimistic

imf at c-span for letting these people back on -- i am mad at c- span for letting these people back on. host: can you explain what the heritage foundation is to our viewers? guest: absolutely. we are an independent research institution. we cover politics with a conservative point of view resting on three part market principles, limited government, strong family values, strong defense. those are the things that lay the foundation for the work that we do. but we are a research institution in public policy issues and advocate solutions that we think our creative. we cannot accept government money. we are funded exclusively by private donors. so there are a lot of people who seem to appreciate what we do and like to be engaged by donating to the foundation. we do not force solutions on anyone. we present research that politicians, or anyone else who is interested, can take a look at. host: we should also said just -- say that we are going to have a representative from a liberal think tank later on today. next phone call. caller: good morning. as far as the cold war is concerned, in a wa

the imf, for example, is now issue ago whole range of special bonds which does open the prospect for like china and india and others in a way to diversify. these bonds will be issued to central banks and governments around the world and will provide funds for emerging markets to help out in crisis. but those bonds have a basis with the u.s. dollar not being 100%. so in a way, a gradual diversification now opens up countries like china, russia, india. they can get some of the diversification they want without having to ditch all their dollar reserves. >> hey, bob, it's scott wapner here in the u.s. you know, with all talk here about this possible second stimulus man, the obvious risk of that is inflating the deficit even further. and i noticed from your notes here that, you know, even before the talk of the second stimulus, you're down on the u.s. can you tell us why? >> well, i think first of all, the size of the debt and length of the recession and the inability to adjust to that requires so much deleveraging on the part of the households that they're going to have to cut back and p

imf was briefing us on some of those currency details. very significant for a global recovery here. the problem is the president was forced today to forced to say they did not get to where they wanted to be on climate change, and that's been a very, very big problem here during this entire meeting. i mean, it's really a battle now between the developed countries and the developing countries. the developing countries saying, look, unless you guys agree to cut a lot more than you're going to cut, we're just not going to sign on to this, not just let. now, take a listen to president obama just a few minutes ago. >> each of our nations come to the table with different needs, different priorities and different developments. and the united states is clear about the role they will play in this effort. the developing nations want to make sure they do not have to sacrifice for development and higher living standards. yet most of the growth in projected emissions coming from these countries, their active participation is a prerequisite. >> reporter: you know, again, president obama acknowledg

we do have more upbeat news from the imf.ook for next year saying gradual recovery in the u.s. is on track but that recovery will be weak. "weak" is the word for stocks right now. we're seeing a little bit of a selloff after we started higher. family dollar shares, tony, up 10%. recording its best quarterly profits ever. more than 35% higher. most of its products sell for less than ten bucks. >> yeah. >> it's a different lifestyle for a lot of us whether we're working or not, tony. >> yeah. but you know what, it seems to me that unhappy workers are less productive workers. we've got to find a way not only to hang on the job but to find some -- >> to make it work for you. >> thank you. susan, see you next hour. >>> next hour, we will look closer at the obama's administration's efforts to overhaul the system and the senate fight over footing the bill. a live discussion with our money and health experts, coming your way. >>> plus, walmart moves into india. the u.s. retail giant hoping to cash in on new territory. >>> and deadly

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the imf just came out with its forecast which is 0.8%. if -- >> i haven't looked that forecast, but economists, i think fair to say that economists think it's likely to be lower than 3.2%. if that happens, my question to you is the deficit as a percentage of gdp becomes much higher. are you willing to do whatever it takes to keep the deficit as a percentage within the range that the president has suggested? >> he understands deeply the importance of making sure that we put in place a stronger foundation for a recovery as a whole and part of that will be a return to living within our means as a country. >> that may mean higher taxes. only two ways to close it. >> as a country, and there's no mystery in this, we'll bring our resources and our commitments closer into balance. that is a necessary thing for us to do. >> you can hear the rest of fareed's interview with the treasury secretary sunday afternoon at 1:00 p.m. eastern time. >>> president obama is heading to africa after just wrapping up a visit with pope benedict at the vatican. let'

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has essentially rested the agenda away from the u.s., which had been up until april almost at every imf every g-7 meeting. the u.s. is saying china, make the currency less flexible, let it appreciate. and china has learned that the best defense is going on offense. they've changed the agenda, but the facts haven't changed. chinese currency is not convertible, won't replace the dollar any time soon. >> boris, though, when you think about it, the seeds are being sewn for a lower dollar anyway with our borrowing going up exponentially and the economy as weak as it is right now. >> yes. that's the big bear argument. i actually couldn't agree with marc more on all of this. i don't think the dollar is in any immediate danger, and i think the chinese comments are really structured to contain fiscal discipline in the u.s. they have a tremendous amount of exposure with $2 trillion in reserves to u.s. financial instruments, and they just want to make sure our fiscal deficits don't get out of hand. all this talk about diversification is much less about the actual move away from the dollar and much

know when we are talking to foreign governments and banks what kind of agreements we have with the imf? we have a moral obligation so that congress should know exactly what the agreement are. this is the reason wind support for this bill is across the board, liberals, conservatives, progressives -- they are supporting this because -- and there is no agreement among these groups of what monetary policy ought to be. they do not want to make a political football. they are not asking for congress to a participate in these meetings. to know what the strategy is and what the plans are, that is legitimate information. we should not be afraid of it. we should not be afraid of the truth. there have been arguments over the years made about transparency. i can get quotes and later get quotes from alan greenspan about how important they are. when looked at those " generically, the a very good. but the bottom line is, we want you to know what is going on on the an important things. on the important things, we want secrecy. they keep. >> i thank the gentleman for making a statement. the gentleman fr